N-CSRS 1 main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Variable Insurance Products Fund V

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-2737

Fidelity Summer Street Trust
 (Exact name of registrant as specified in charter)

245 Summer St., Boston, Massachusetts 02210
 (Address of principal executive offices)       (Zip code)

Scott C. Goebel, 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:

December 31

 

 

Date of reporting period:

June 30, 2013

Item 1. Reports to Stockholders

Fidelity®

New Markets Income

Fund

Semiannual Report

June 30, 2013

(Fidelity Cover Art)

Contents

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2013 FMR LLC. All rights reserved.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees 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 (January 1, 2013 to June 30, 2013).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

 

Annualized
Expense Ratio B

Beginning
Account Value
January 1, 2013

Ending
Account Value
June 30, 2013

Expenses Paid
During Period*
January 1, 2013
to June 30, 2013

Actual

.85%

$ 1,000.00

$ 921.30

$ 4.05

Hypothetical A

 

$ 1,000.00

$ 1,020.58

$ 4.26

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Semiannual Report

Investment Changes (Unaudited)

Top Five Countries as of June 30, 2013

(excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Venezuela

11.0

13.2

Mexico

7.4

6.5

Russia

5.8

4.7

Netherlands

5.2

3.4

United States of America

4.7

4.4

Percentages are adjusted for the effect of open futures contracts, if applicable.

Top Five Holdings as of June 30, 2013

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Petroleos de Venezuela SA

6.3

6.0

Russian Federation

5.5

4.5

Venezuelan Republic

4.7

7.2

Petroleos Mexicanos

4.2

2.3

Turkish Republic

3.4

7.6

 

24.1

Asset Allocation (% of fund's net assets)

As of June 30, 2013

As of December 31, 2012

ang138033

Corporate Bonds 37.0%

 

ang138033

Corporate Bonds 28.7%

 

ang138036

Government
Obligations 54.0%

 

ang138036

Government
Obligations 57.7%

 

ang138039

Stocks 0.1%

 

ang138039

Stocks 0.5%

 

ang138042

Preferred Securities 0.2%

 

ang138042

Preferred Securities 0.2%

 

ang138045

Investment
Companies 1.8%

 

ang138045

Investment
Companies 3.0%

 

ang138048

Short-Term
Investments and
Net Other Assets
(Liabilities) 6.9%

 

ang138048

Short-Term
Investments and
Net Other Assets
(Liabilities) 9.9%

 

ang138051

Semiannual Report

Investments June 30, 2013 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 37.0%

 

Principal Amount (d)

Value

Bahamas (Nassau) - 0.1%

Ultrapetrol (Bahamas) Ltd. 8.875% 6/15/21 (g)

$ 4,360,000

$ 4,360,000

Bailiwick of Jersey - 0.2%

Polyus Gold International Ltd. 5.625% 4/29/20 (g)

14,270,000

13,556,500

Brazil - 0.8%

Banco Nacional de Desenvolvimento Economico e Social 6.5% 6/10/19 (g)

20,705,000

22,568,450

Brasil Foods SA 7.75% 5/22/18 (g)

BRL

14,965,000

5,801,297

Centrais Eletricas Brasileiras SA (Electrobras) 6.875% 7/30/19 (g)

18,830,000

19,677,350

TOTAL BRAZIL

48,047,097

British Virgin Islands - 0.3%

Arcos Dorados Holdings, Inc. 10.25% 7/13/16 (g)

BRL

13,395,000

6,018,100

Magnesita Finance Ltd. 8.625% (g)(h)

13,115,000

12,983,850

TOTAL BRITISH VIRGIN ISLANDS

19,001,950

Canada - 0.3%

Pacific Rubiales Energy Corp. 7.25% 12/12/21 (g)

17,534,000

18,586,040

Cayman Islands - 3.4%

AES Andres Dominicana Ltd./Itabo Dominicana Ltd. 9.5% 11/12/20 (g)

7,600,000

8,018,000

Hutchison Whampoa International 10 Ltd. 6% (g)(h)(i)

53,550,000

55,692,000

Odebrecht Finance Ltd. 7.5% (g)(h)

34,921,000

34,571,790

Petrobras International Finance Co. Ltd.:

5.375% 1/27/21

17,920,000

18,004,116

5.75% 1/20/20

11,655,000

12,125,606

6.75% 1/27/41

27,310,000

27,187,105

8.375% 12/10/18

30,785,000

36,426,351

TOTAL CAYMAN ISLANDS

192,024,968

Chile - 0.3%

Empresa Nacional de Petroleo 5.25% 8/10/20 (Reg. S)

16,860,000

17,100,238

Costa Rica - 0.1%

Instituto Costarricense de Electricidad 6.95% 11/10/21 (g)

7,001,000

7,351,050

Georgia - 1.0%

Georgia Bank Joint Stock Co. 7.75% 7/5/17 (g)

30,035,000

31,236,400

Georgian Oil & Gas Corp. 6.875% 5/16/17 (g)

15,382,000

15,305,090

JSC Georgian Railway 7.75% 7/11/22 (g)

8,025,000

8,667,000

TOTAL GEORGIA

55,208,490

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Hungary - 0.1%

Magyar Export-Import Bank 5.5% 2/12/18 (g)

$ 6,205,000

$ 6,127,438

Indonesia - 1.6%

Indonesia Eximbank 3.75% 4/26/17 (Reg. S)

11,490,000

11,317,650

PT Adaro Indonesia 7.625% 10/22/19 (g)

9,615,000

10,095,750

PT Pertamina Persero:

4.3% 5/20/23 (g)

18,725,000

17,227,000

4.875% 5/3/22 (g)

16,610,000

15,904,075

5.25% 5/23/21 (g)

12,470,000

12,345,300

6% 5/3/42 (g)

10,885,000

10,177,475

6.5% 5/27/41 (g)

6,035,000

5,823,775

PT Perusahaan Listrik Negara 5.5% 11/22/21 (Reg. S)

7,880,000

7,722,400

TOTAL INDONESIA

90,613,425

Ireland - 1.8%

CBOM Finance PLC 8.25% 8/5/14

7,540,000

7,796,360

MTS International Funding Ltd. 5% 5/30/23 (g)

8,305,000

7,952,038

RZD Capital Ltd. 5.7% 4/5/22 (Reg. S)

18,890,000

19,551,150

SCF Capital Ltd. 5.375% 10/27/17 (g)

20,070,000

19,467,900

Vnesheconombank Via VEB Finance PLC:

5.45% 11/22/17 (g)

6,735,000

7,012,482

6.025% 7/5/22 (g)

13,340,000

13,722,858

6.8% 11/22/25 (g)

9,760,000

10,430,512

6.902% 7/9/20 (g)

14,540,000

15,957,650

TOTAL IRELAND

101,890,950

Israel - 0.7%

Israel Electric Corp. Ltd.:

5.625% 6/21/18 (g)

11,040,000

11,343,600

6.7% 2/10/17 (g)

27,470,000

28,843,500

TOTAL ISRAEL

40,187,100

Kazakhstan - 1.8%

Development Bank of Kazakhstan JSC 4.125% 12/10/22 (g)

13,010,000

11,448,800

Kazagro National Management Holding JSC 4.625% 5/24/23 (g)

6,250,000

5,718,750

KazMunaiGaz National Co.:

4.4% 4/30/23 (g)

10,530,000

9,678,123

5.75% 4/30/43 (g)

22,060,000

19,478,980

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Kazakhstan - continued

KazMunaiGaz Finance Sub BV 7% 5/5/20 (g)

$ 18,545,000

$ 20,955,850

Zhaikmunai International BV 7.125% 11/13/19 (g)

35,145,000

35,145,000

TOTAL KAZAKHSTAN

102,425,503

Luxembourg - 2.0%

Aquarius Investments Luxemburg 8.25% 2/18/16

8,805,000

9,157,200

Cosan Luxembourg SA 9.5% 3/14/18 (g)

BRL

39,710,000

16,928,827

EVRAZ Group SA 6.5% 4/22/20 (g)

11,295,000

10,193,738

Gaz Capital SA (Luxembourg):

6.212% 11/22/16 (Issued by Gazprom OAO for Gaz Capital SA) (g)

5,780,000

6,253,960

9.25% 4/23/19 (g)

7,360,000

8,905,600

OJSC Russian Agricultural Bank 6.299% 5/15/17 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (g)

10,915,000

11,542,613

RSHB Capital SA:

5.298% 12/27/17 (g)

39,165,000

39,897,386

6% 6/3/21 (g)(i)

8,635,000

8,559,012

TOTAL LUXEMBOURG

111,438,336

Mexico - 5.4%

America Movil S.A.B. de CV 6.45% 12/5/22

MXN

778,400,000

57,382,254

Comision Federal de Electricid 4.875% 5/26/21 (g)

5,855,000

5,972,100

Petroleos Mexicanos:

3.5% 1/30/23 (g)

6,500,000

5,996,250

4.875% 1/24/22

49,025,000

49,760,375

5.5% 1/21/21

21,920,000

23,487,280

5.5% 6/27/44

30,305,000

27,350,263

5.5% 6/27/44 (g)

15,450,000

13,928,175

6% 3/5/20

16,120,000

17,812,600

6.5% 6/2/41

26,820,000

27,691,650

6.625% (g)(h)

29,620,000

30,138,350

8% 5/3/19

33,270,000

40,589,400

TV Azteca SA de CV 7.5% 5/25/18 (Reg. S)

7,523,000

7,917,958

TOTAL MEXICO

308,026,655

Netherlands - 5.0%

Access Finance BV 7.25% 7/25/17 (g)

11,745,000

11,568,825

Bulgaria Steel Finance BV 12% 5/4/49 unit (c)

EUR

5,100,000

66,384

Indosat Palapa Co. BV 7.375% 7/29/20 (g)

10,570,000

11,151,350

Intergas Finance BV 6.375% 5/14/17 (Reg. S)

13,339,000

14,339,425

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Netherlands - continued

Kazakhstan Temir Zholy Finance BV:

6.375% 10/6/20 (g)

$ 8,975,000

$ 9,760,313

6.95% 7/10/42 (g)

7,560,000

7,683,228

KazMunaiGaz Finance Sub BV:

6.375% 4/9/21 (g)

16,245,000

17,544,600

9.125% 7/2/18 (g)

16,710,000

19,968,450

11.75% 1/23/15 (g)

28,260,000

32,004,450

Majapahit Holding BV:

7.75% 1/20/20 (g)

14,750,000

16,372,500

7.875% 6/29/37 (Reg. S)

6,935,000

8,044,600

8% 8/7/19 (g)

11,230,000

12,633,750

Petrobras Global Finance BV:

2.4141% 1/15/19 (i)

89,880,000

87,543,120

4.375% 5/20/23

11,385,000

10,378,566

VimpelCom Holdings BV:

5.2% 2/13/19 (g)

13,990,000

13,570,300

9% 2/13/18 (g)

RUB

343,900,000

10,388,305

TOTAL NETHERLANDS

283,018,166

Paraguay - 0.2%

Telefonica Celular del Paraguay SA 6.75% 12/13/22 (g)

10,305,000

10,614,150

Peru - 0.6%

Alicorp SA 3.875% 3/20/23 (g)

7,565,000

6,997,625

Corporacion Azucarera del Peru SA 6.375% 8/2/22 (g)

7,470,000

7,283,250

Corporacion Lindley SA 4.625% 4/12/23 (g)

6,015,000

5,624,025

Gas Nat de Lima Y Callao SA 4.375% 4/1/23 (g)

7,555,000

6,837,275

Transportadora de Gas Del Peru 4.25% 4/30/28 (g)

7,520,000

6,730,400

TOTAL PERU

33,472,575

Philippines - 0.6%

Power Sector Assets and Liabilities Management Corp.:

7.25% 5/27/19 (g)

12,385,000

14,676,225

7.39% 12/2/24 (g)

14,395,000

17,417,950

TOTAL PHILIPPINES

32,094,175

Russia - 0.3%

Far Eastern Shipping Co. 8% 5/2/18 (g)

11,255,000

10,213,913

MTS International Funding Ltd. 8.625% 6/22/20 (g)

7,380,000

8,671,500

TOTAL RUSSIA

18,885,413

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

South Africa - 0.3%

Eskom Holdings Ltd. 5.75% 1/26/21 (Reg. S)

$ 19,520,000

$ 19,324,800

Sri Lanka - 0.3%

Bank of Ceylon 6.875% 5/3/17 (g)

16,416,000

16,867,440

Trinidad & Tobago - 0.4%

Petroleum Co. of Trinidad & Tobago Ltd. 9.75% 8/14/19 (g)

16,868,000

21,000,660

Turkey - 0.5%

Anadolu Efes Biracilik Ve Malt Sanayii A/S 3.375% 11/1/22 (g)

3,690,000

3,265,650

Arcelik A/S 5% 4/3/23 (g)

26,415,000

23,773,500

TOTAL TURKEY

27,039,150

Ukraine - 0.2%

Ukraine Financing of Infrastructure Projects State Enterprise 9% 12/7/17 (g)

11,390,000

10,592,700

United Kingdom - 0.7%

Afren PLC 11.5% 2/1/16 (g)

4,216,000

4,637,600

Biz Finance PLC:

8.375% 4/27/15 (Reg. S)

9,160,000

8,862,300

8.75% 1/22/18 (State Export-Import Bank of Ukraine JSC for Biz Finance PLC)(Reg. S)

7,570,000

6,737,300

JSC Oschadbank 8.25% 3/10/16 (Issued by SSB #1 PLC for JSC Oschadbank)

10,740,000

10,041,900

Shortline PLC 9.5% 5/21/18 (g)

7,490,000

6,834,625

TOTAL UNITED KINGDOM

37,113,725

United States of America - 1.7%

Pemex Project Funding Master Trust:

5.75% 3/1/18

3,690,000

4,068,225

6.625% 6/15/35

38,825,000

41,154,500

6.625% 6/15/38

7,095,000

7,432,013

8.625% 2/1/22

28,592,000

33,953,000

Severstal Columbus LLC 10.25% 2/15/18

11,275,000

11,923,313

TOTAL UNITED STATES OF AMERICA

98,531,051

Venezuela - 6.3%

Petroleos de Venezuela SA:

4.9% 10/28/14

99,820,000

93,331,700

5.25% 4/12/17

19,100,000

15,346,850

5.375% 4/12/27

36,225,000

21,735,000

5.5% 4/12/37

14,785,000

8,538,338

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Venezuela - continued

Petroleos de Venezuela SA: - continued

8.5% 11/2/17 (g)

$ 172,960,000

$ 157,393,600

9% 11/17/21 (Reg. S)

40,950,000

34,398,000

9.75% 5/17/35 (g)

19,995,000

15,796,050

12.75% 2/17/22 (g)

8,680,000

8,745,100

TOTAL VENEZUELA

355,284,638

TOTAL NONCONVERTIBLE BONDS

(Cost $2,141,507,940)


2,099,784,383

Government Obligations - 55.3%

 

Argentina - 0.3%

Argentine Republic:

discount (with partial capitalization through 12/31/13) 8.28% 12/31/33

10,177,255

5,699,263

2.5% 12/31/38 (e)

11,035,000

3,558,788

7% 10/3/15

7,355,000

6,233,363

8.75% 6/2/17

4,405,000

3,336,788

TOTAL ARGENTINA

18,828,202

Aruba - 0.3%

Aruba Government 4.625% 9/14/23 (g)

16,390,000

15,406,600

Azerbaijan - 0.4%

State Oil Co. of Azerbaijan Republic:

4.75% 3/13/23 (Reg. S)

11,290,000

10,217,450

5.45% 2/9/17 (Reg. S)

10,400,000

10,712,000

TOTAL AZERBAIJAN

20,929,450

Bahamas (Nassau) - 0.2%

Bahamian Republic 6.95% 11/20/29 (g)

11,996,000

13,795,400

Barbados - 0.5%

Barbados Government:

7% 8/4/22 (g)

19,371,000

19,371,000

7.25% 12/15/21 (g)

11,539,000

11,654,390

TOTAL BARBADOS

31,025,390

Government Obligations - continued

 

Principal
Amount (d)

Value

Belarus - 1.3%

Belarus Republic:

8.75% 8/3/15 (Reg. S)

$ 50,620,000

$ 50,366,900

8.95% 1/26/18

23,390,000

23,331,525

TOTAL BELARUS

73,698,425

Belize - 0.1%

Belize Government 5% 2/20/38 (e)(g)

13,773,800

8,264,280

Bermuda - 0.5%

Bermuda Government:

4.138% 1/3/23 (g)

12,560,000

12,151,800

5.603% 7/20/20 (g)

14,790,000

15,862,275

TOTAL BERMUDA

28,014,075

Bolivia - 0.1%

Plurinational State of Bolivia 4.875% 10/29/22 (g)

6,295,000

5,822,875

Brazil - 1.5%

Brazilian Federative Republic:

5.625% 1/7/41

7,550,000

7,493,375

8.25% 1/20/34

9,700,000

12,852,500

10.125% 5/15/27

21,742,000

33,863,165

12.25% 3/6/30

18,865,000

32,306,313

TOTAL BRAZIL

86,515,353

Cayman Islands - 0.3%

Cayman Island Government 5.95% 11/24/19 (g)

15,362,000

16,898,200

Colombia - 1.1%

Colombian Republic:

4.375% 7/12/21

15,780,000

16,371,750

6.125% 1/18/41

4,690,000

5,205,900

7.375% 9/18/37

10,640,000

13,459,600

8.125% 5/21/24

7,850,000

10,205,000

11.75% 2/25/20

12,931,000

19,040,898

TOTAL COLOMBIA

64,283,148

Congo - 0.9%

Congo Republic 3% 6/30/29 (e)

61,273,765

52,082,700

Costa Rica - 0.7%

Costa Rican Republic:

(Reg.S) 8.28% 3/19/14

CRC

5,528,920,000

11,259,752

4.25% 1/26/23 (g)

14,880,000

13,652,400

Government Obligations - continued

 

Principal Amount (d)

Value

Costa Rica - continued

Costa Rican Republic: - continued

4.375% 4/30/25 (g)

$ 8,635,000

$ 7,901,025

5.625% 4/30/43 (g)

7,130,000

6,559,600

TOTAL COSTA RICA

39,372,777

Croatia - 1.4%

Croatia Republic:

5.5% 4/4/23 (g)

18,700,000

18,139,000

6.25% 4/27/17 (g)

37,440,000

39,169,728

6.625% 7/14/20 (g)

22,175,000

23,394,625

TOTAL CROATIA

80,703,353

Dominican Republic - 0.9%

Dominican Republic:

5.875% 4/18/24 (g)

29,290,000

28,264,850

7.5% 5/6/21 (g)

9,565,000

10,282,375

9.04% 1/23/18 (g)

9,553,711

10,365,776

TOTAL DOMINICAN REPUBLIC

48,913,001

Ecuador - 0.1%

Ecuador Republic 9.375% 12/15/15 (g)

8,049,000

8,290,470

Georgia - 0.1%

Georgia Republic 6.875% 4/12/21 (g)

6,060,000

6,484,200

Guatemala - 0.4%

Guatemalan Republic:

4.875% 2/13/28 (g)

9,440,000

8,496,000

5.75% 6/6/22 (g)

11,370,000

11,370,000

TOTAL GUATEMALA

19,866,000

Honduras - 0.1%

Republic of Honduras 7.5% 3/15/24 (g)

7,880,000

6,934,400

Hungary - 1.9%

Hungarian Republic:

4.125% 2/19/18

14,791,000

14,365,759

4.75% 2/3/15

15,520,000

15,752,800

5.375% 2/21/23

18,422,000

17,731,175

6.25% 1/29/20

14,776,000

15,440,920

6.375% 3/29/21

24,013,000

24,973,520

7.625% 3/29/41

16,172,000

16,883,568

TOTAL HUNGARY

105,147,742

Government Obligations - continued

 

Principal Amount (d)

Value

Iceland - 0.8%

Republic of Iceland:

4.875% 6/16/16 (g)

$ 13,227,000

$ 13,723,013

5.875% 5/11/22 (g)

29,240,000

31,140,600

TOTAL ICELAND

44,863,613

Indonesia - 3.0%

Indonesian Republic:

3.375% 4/15/23 (g)

22,555,000

20,130,338

3.75% 4/25/22 (g)

13,450,000

12,474,875

4.875% 5/5/21 (g)

29,990,000

30,739,750

5.875% 3/13/20 (g)

20,510,000

22,099,525

6.875% 1/17/18 (g)

10,870,000

12,201,575

7.75% 1/17/38 (g)

8,435,000

10,417,225

8.5% 10/12/35 (g)

18,200,000

23,842,000

11.625% 3/4/19 (g)

26,395,000

35,897,200

TOTAL INDONESIA

167,802,488

Iraq - 0.7%

Republic of Iraq 5.8% 1/15/28 (Reg. S)

49,495,000

40,585,900

Israel - 0.3%

Israeli State 4.5% 1/30/43

15,810,000

14,031,375

Ivory Coast - 0.7%

Ivory Coast 7.1% 12/31/32 (e)

46,135,000

38,061,375

Jamaica - 0.3%

Jamaican Government:

8% 6/24/19

9,965,000

9,566,400

8% 3/15/39

7,675,000

6,754,000

TOTAL JAMAICA

16,320,400

Jordan - 0.3%

Jordanian Kingdom 3.875% 11/12/15

19,113,000

18,778,523

Latvia - 0.4%

Latvian Republic:

2.75% 1/12/20 (g)

16,685,000

15,455,316

5.25% 6/16/21 (g)

8,800,000

9,350,000

TOTAL LATVIA

24,805,316

Lebanon - 2.7%

Lebanese Republic:

4% 12/31/17

8,176,500

7,931,205

Government Obligations - continued

 

Principal
Amount (d)

Value

Lebanon - continued

Lebanese Republic: - continued

4.9947% to 5.3554% 8/29/13 to 3/20/14

LBP

68,684,095,000

$ 44,024,202

5.15% 11/12/18

6,455,000

6,164,525

5.45% 11/28/19

39,870,000

36,281,700

6.1% 10/4/22

11,490,000

10,944,225

8.25% 4/12/21 (Reg.S)

6,845,000

7,358,375

8.5% 8/6/15

5,835,000

6,199,688

8.5% 1/19/16 (Reg. S)

9,240,000

9,840,600

9% 3/20/17

7,875,000

8,613,675

11.625% 5/11/16 (Reg. S)

11,990,000

14,028,300

TOTAL LEBANON

151,386,495

Lithuania - 1.0%

Lithuanian Republic:

6.125% 3/9/21 (g)

11,910,000

13,274,410

6.625% 2/1/22 (g)

15,990,000

18,348,525

7.375% 2/11/20 (g)

22,115,000

26,261,563

TOTAL LITHUANIA

57,884,498

Mexico - 2.0%

United Mexican States:

4.75% 3/8/44

17,172,000

15,540,660

5.125% 1/15/20

13,072,000

14,411,880

5.95% 3/19/19

13,266,000

15,182,937

6.05% 1/11/40

14,580,000

16,038,000

6.75% 9/27/34

19,540,000

23,154,900

8.3% 8/15/31

4,170,000

5,712,900

11.5% 5/15/26

13,860,000

22,765,050

TOTAL MEXICO

112,806,327

Morocco - 0.2%

Moroccan Kingdom:

4.25% 12/11/22 (g)

8,035,000

7,110,975

5.5% 12/11/42 (g)

8,275,000

6,909,625

TOTAL MOROCCO

14,020,600

Namibia - 0.1%

Republic of Namibia 5.5% 11/3/21 (g)

7,990,000

8,027,313

Netherlands - 0.2%

Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S)

9,785,000

10,054,088

Government Obligations - continued

 

Principal
Amount (d)

Value

Nigeria - 0.7%

Republic of Nigeria:

4% 4/23/15

NGN

767,835,000

$ 3,986,336

6.75% 1/28/21 (g)

4,195,000

4,383,775

10.65% to 12.65% 1/9/14 to 2/6/14

NGN

5,361,055,000

30,543,580

TOTAL NIGERIA

38,913,691

Panama - 0.7%

Panamanian Republic:

4.3% 4/29/53

17,315,000

13,722,138

7.125% 1/29/26

7,725,000

9,443,813

8.875% 9/30/27

9,915,000

13,682,700

TOTAL PANAMA

36,848,651

Peru - 0.9%

Peruvian Republic:

7.35% 7/21/25

20,090,000

25,413,850

8.75% 11/21/33

18,525,000

26,861,250

TOTAL PERU

52,275,100

Philippines - 2.3%

Philippine Republic:

5.5% 3/30/26

10,360,000

11,810,400

7.75% 1/14/31

20,640,000

27,038,400

9.5% 2/2/30

20,120,000

30,079,400

10.625% 3/16/25

39,370,000

62,204,600

TOTAL PHILIPPINES

131,132,800

Poland - 0.8%

Polish Government:

3% 3/17/23

18,890,000

17,095,450

5% 3/23/22

25,075,000

26,955,625

TOTAL POLAND

44,051,075

Romania - 0.8%

Romanian Republic:

4.375% 8/22/23 (g)

15,470,000

14,580,475

6.75% 2/7/22 (g)

27,808,000

31,075,440

TOTAL ROMANIA

45,655,915

Government Obligations - continued

 

Principal Amount (d)

Value

Russia - 5.5%

Russian Federation:

5.625% 4/4/42 (g)

$ 27,735,000

$ 28,775,063

7.5% 3/31/30 (Reg. S)

152,278,000

177,784,547

11% 7/24/18 (Reg. S)

19,028,000

26,068,360

12.75% 6/24/28 (Reg. S)

44,372,000

77,651,000

TOTAL RUSSIA

310,278,970

Senegal - 0.1%

Republic of Senegal 8.75% 5/13/21 (g)

7,885,000

8,200,400

Serbia - 1.5%

Republic of Serbia:

4.875% 2/25/20 (g)

15,155,000

13,942,600

5.25% 11/21/17 (g)

23,610,000

23,019,750

6.75% 11/1/24 (g)

33,623,268

33,287,035

7.25% 9/28/21 (g)

14,505,000

14,903,888

TOTAL SERBIA

85,153,273

Slovakia - 0.3%

Slovakia Republic 4.375% 5/21/22 (g)

17,455,000

17,891,375

Slovenia - 2.4%

Republic of Slovenia:

4.75% 5/10/18 (g)

10,955,000

10,379,863

5.5% 10/26/22 (g)

93,320,000

85,387,800

5.85% 5/10/23 (g)

46,225,000

42,642,563

TOTAL SLOVENIA

138,410,226

Sri Lanka - 0.7%

Democratic Socialist Republic of Sri Lanka:

5.875% 7/25/22 (g)

11,905,000

11,190,700

6.25% 10/4/20 (g)

14,880,000

14,582,400

6.25% 7/27/21 (g)

11,375,000

11,147,500

7.4% 1/22/15 (g)

2,190,000

2,299,500

TOTAL SRI LANKA

39,220,100

Tanzania - 0.2%

Tanzania United Republic of 6.4499% 3/8/20 (i)

12,605,000

12,668,025

Turkey - 3.4%

Turkish Republic:

5.125% 3/25/22

9,395,000

9,653,363

5.625% 3/30/21

21,665,000

23,181,550

6.25% 9/26/22

23,625,000

26,164,688

Government Obligations - continued

 

Principal Amount (d)

Value

Turkey - continued

Turkish Republic: - continued

6.75% 4/3/18

$ 11,070,000

$ 12,453,750

6.75% 5/30/40

9,005,000

10,018,063

6.875% 3/17/36

18,170,000

20,350,400

7% 6/5/20

21,035,000

24,348,013

7.375% 2/5/25

24,905,000

29,761,475

7.5% 11/7/19

14,760,000

17,416,800

8% 2/14/34

6,395,000

8,025,725

11.875% 1/15/30

5,290,000

8,913,650

TOTAL TURKEY

190,287,477

Ukraine - 3.1%

Ukraine Government:

7.5% 4/17/23 (g)

52,075,000

45,826,000

7.75% 9/23/20 (g)

16,985,000

15,456,350

7.8% 11/28/22 (g)

30,185,000

27,015,575

7.95% 6/4/14 (g)

48,740,000

48,374,450

7.95% 2/23/21 (g)

7,595,000

6,949,425

9.25% 7/24/17 (g)

30,730,000

30,616,299

TOTAL UKRAINE

174,238,099

United States of America - 1.2%

U.S. Treasury Bonds 2.875% 5/15/43

73,545,000

65,179,256

Venezuela - 4.7%

Venezuelan Republic:

oil recovery rights 4/15/20 (j)

458,489

11,806,092

5.75% 2/26/16 (Reg S.)

16,925,000

14,894,000

6% 12/9/20

17,730,000

12,854,250

7.65% 4/21/25

18,710,000

13,658,300

7.75% 10/13/19 (Reg. S)

25,915,000

21,315,088

8.25% 10/13/24

27,475,000

20,812,313

8.5% 10/8/14

58,401,000

57,378,983

9% 5/7/23 (Reg. S)

21,915,000

18,079,875

9.25% 5/7/28 (Reg. S)

22,250,000

17,911,250

9.375% 1/13/34

14,465,000

11,716,650

10.75% 9/19/13

28,655,000

28,583,363

11.75% 10/21/26 (Reg. S)

16,725,000

15,721,500

11.95% 8/5/31 (Reg. S)

15,875,000

14,922,500

12.75% 8/23/22

4,490,000

4,568,575

TOTAL VENEZUELA

264,222,739

Government Obligations - continued

 

Principal Amount (d)

Value

Vietnam - 0.1%

Vietnamese Socialist Republic 6.75% 1/29/20 (g)

$ 4,620,000

$ 4,897,200

Zambia - 0.1%

Republic of Zambia 5.375% 9/20/22 (g)

6,465,000

5,721,525

TOTAL GOVERNMENT OBLIGATIONS

(Cost $3,113,450,379)


3,135,950,249

Common Stocks - 0.1%

Shares

 

Colombia - 0.0%

Ecopetrol SA ADR

44,558

1,874,109

United Kingdom - 0.1%

Bank of Georgia Holdings PLC

132,900

3,375,642

TOTAL COMMON STOCKS

(Cost $5,309,898)


5,249,751

Investment Companies - 1.8%

 

 

 

 

United States of America - 1.8%

iShares MSCI Brazil Index ETF

642,100

28,162,506

iShares MSCI Emerging Markets Index ETF (f)

1,877,300

72,407,461

TOTAL INVESTMENT COMPANIES

(Cost $107,033,697)


100,569,967

Preferred Securities - 0.2%

Principal Amount (d)

 

Brazil - 0.2%

Globo Comunicacoes e Participacoes SA 6.25% (e)(g)(h)

$ 11,510,000

12,054,727

China - 0.0%

Sinochem Group 5% (e)(g)(h)

1,690,000

1,526,868

TOTAL PREFERRED SECURITIES

(Cost $13,879,638)


13,581,595

Money Market Funds - 5.6%

Shares

Value

Fidelity Cash Central Fund, 0.13% (a)

282,965,106

$ 282,965,106

Fidelity Securities Lending Cash Central Fund, 0.13% (a)(b)

36,753,700

36,753,700

TOTAL MONEY MARKET FUNDS

(Cost $319,718,806)


319,718,806

TOTAL INVESTMENT PORTFOLIO - 100.0%

(Cost $5,700,900,358)

5,674,854,751

NET OTHER ASSETS (LIABILITIES) - 0.0%

(876,641)

NET ASSETS - 100%

$ 5,673,978,110

Currency Abbreviations

BRL

-

Brazilian real

CRC

-

Costa Rican colon

EUR

-

European Monetary Unit

LBP

-

Lebanese pound

MXN

-

Mexican peso

NGN

-

Nigerian naira

RUB

-

Russian ruble

Security Abbreviations

ETF

-

Exchange-Traded Fund

Legend

(a) 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.

(b) Investment made with cash collateral received from securities on loan.

(c) Non-income producing - Security is in default.

(d) Amount is stated in United States dollars unless otherwise noted.

(e) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(f) Security or a portion of the security is on loan at period end.

(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,446,248,736 or 43.1% of net assets.

(h) Security is perpetual in nature with no stated maturity date.

(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(j) Quantity represents share amount.

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

$ 315,492

Fidelity Securities Lending Cash Central Fund

154,181

Total

$ 469,673

Other Information

Categorizations in the Schedule of Investments are based on country or territory of incorporation.

The following is a summary of the inputs used, as of June 30, 2013, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Energy

$ 1,874,109

$ 1,874,109

$ -

$ -

Financials

3,375,642

3,375,642

-

-

Corporate Bonds

2,099,784,383

-

2,099,717,999

66,384

Government Obligations

3,135,950,249

-

3,135,950,249

-

Investment Companies

100,569,967

100,569,967

-

-

Preferred Securities

13,581,595

-

13,581,595

-

Money Market Funds

319,718,806

319,718,806

-

-

Total Investments in Securities:

$ 5,674,854,751

$ 425,538,524

$ 5,249,249,843

$ 66,384

The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited):

U.S. Government and U.S.
Government Agency Obligations

1.2%

AAA,AA,A

6.6%

BBB

40.6%

BB

16.3%

B

19.9%

CCC,CC,C

0.4%

Not Rated

6.0%

Equities

2.1%

Short-Term Investments and Net
Other Assets

6.9%

 

100.0%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

 

 

Assets

Investment in securities, at value (including securities loaned of $36,051,400) - See accompanying schedule:

Unaffiliated issuers (cost $5,381,181,552)

$ 5,355,135,945

 

Fidelity Central Funds (cost $319,718,806)

319,718,806

 

Total Investments (cost $5,700,900,358)

 

$ 5,674,854,751

Cash

 

84,415,175

Receivable for investments sold

57,969,018

Receivable for fund shares sold

5,737,114

Dividends receivable

1,808,056

Interest receivable

83,974,786

Distributions receivable from Fidelity Central Funds

49,721

Other receivables

48,275

Total assets

5,908,856,896

 

 

 

Liabilities

Payable for investments purchased

$ 161,834,821

Payable for fund shares redeemed

29,062,575

Distributions payable

2,735,986

Accrued management fee

3,365,246

Other affiliated payables

892,514

Other payables and accrued expenses

233,944

Collateral on securities loaned, at value

36,753,700

Total liabilities

234,878,786

 

 

 

Net Assets

$ 5,673,978,110

Net Assets consist of:

 

Paid in capital

$ 5,547,942,286

Undistributed net investment income

62,895,572

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

89,676,145

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

(26,535,893)

Net Assets, for 356,216,324 shares outstanding

$ 5,673,978,110

Net Asset Value, offering price and redemption price per share ($5,673,978,110 ÷ 356,216,324 shares)

$ 15.93

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Operations

Six months ended June 30, 2013 (Unaudited)

 

 

 

Investment Income

 

 

Dividends

 

$ 3,558,327

Interest

 

196,190,261

Income from Fidelity Central Funds

 

469,673

Total income

 

200,218,261

 

 

 

Expenses

Management fee

$ 23,488,296

Transfer agent fees

4,698,327

Accounting and security lending fees

829,847

Custodian fees and expenses

349,192

Independent trustees' compensation

22,097

Registration fees

182,306

Audit

47,428

Legal

7,128

Miscellaneous

38,190

Total expenses before reductions

29,662,811

Expense reductions

(117,963)

29,544,848

Net investment income (loss)

170,673,413

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

95,125,067

Foreign currency transactions

(1,411,373)

Total net realized gain (loss)

 

93,713,694

Change in net unrealized appreciation (depreciation) on:

Investment securities

(802,315,029)

Assets and liabilities in foreign currencies

(491,911)

Total change in net unrealized appreciation (depreciation)

 

(802,806,940)

Net gain (loss)

(709,093,246)

Net increase (decrease) in net assets resulting from operations

$ (538,419,833)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Six months ended
June 30, 2013
(Unaudited)

Year ended
December 31,
2012

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 170,673,413

$ 290,389,219

Net realized gain (loss)

93,713,694

172,372,893

Change in net unrealized appreciation (depreciation)

(802,806,940)

569,721,454

Net increase (decrease) in net assets resulting
from operations

(538,419,833)

1,032,483,566

Distributions to shareholders from net investment income

(154,520,374)

(262,676,356)

Distributions to shareholders from net realized gain

(51,877,299)

(132,578,052)

Total distributions

(206,397,673)

(395,254,408)

Share transactions
Proceeds from sales of shares

1,202,711,788

3,196,064,456

Reinvestment of distributions

181,541,055

349,068,527

Cost of shares redeemed

(2,294,158,867)

(1,124,029,659)

Net increase (decrease) in net assets resulting from share transactions

(909,906,024)

2,421,103,324

Redemption fees

1,118,684

808,734

Total increase (decrease) in net assets

(1,653,604,846)

3,059,141,216

 

 

 

Net Assets

Beginning of period

7,327,582,956

4,268,441,740

End of period (including undistributed net investment income of $62,895,572 and undistributed net investment income of $46,742,533, respectively)

$ 5,673,978,110

$ 7,327,582,956

Other Information

Shares

Sold

68,698,572

187,942,373

Issued in reinvestment of distributions

10,564,977

20,240,980

Redeemed

(134,752,498)

(66,095,197)

Net increase (decrease)

(55,488,949)

142,088,156

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

 

Six months ended
June 30, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 17.80

$ 15.83

$ 15.65

$ 15.03

$ 11.24

$ 14.68

Income from Investment
Operations

 

 

 

 

 

Net investment income (loss) D

  .418

  .857

  .929

  .930

  1.195

  .845

Net realized and unrealized gain (loss)

  (1.791)

  2.235

  .276

  .676

  3.664

  (3.426)

Total from investment operations

  (1.373)

  3.092

  1.205

  1.606

  4.859

  (2.581)

Distributions from net investment income

  (.378)

  (.778)

  (.909)

  (.862)

  (1.053)

  (.826)

Distributions from net realized gain

  (.122)

  (.346)

  (.119)

  (.130)

  (.020)

  (.040)

Total distributions

  (.500)

  (1.124)

  (1.028)

  (.992)

  (1.073)

  (.866)

Redemption fees added to paid in capital D

  .003

  .002

  .003

  .006

  .004

  .007

Net asset value, end of period

$ 15.93

$ 17.80

$ 15.83

$ 15.65

$ 15.03

$ 11.24

Total Return B, C

  (7.87)%

  20.02%

  7.94%

  10.94%

  44.56%

  (18.24)%

Ratios to Average Net Assets E, G

 

 

 

 

 

Expenses before reductions

  .85% A

  .85%

  .86%

  .88%

  .91%

  .90%

Expenses net of fee waivers, if any

  .85% A

  .85%

  .86%

  .88%

  .91%

  .90%

Expenses net of all reductions

  .84% A

  .84%

  .86%

  .88%

  .90%

  .90%

Net investment income (loss)

  4.86% A

  5.03%

  5.89%

  5.94%

  8.73%

  6.22%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 5,673,978

$ 7,327,583

$ 4,268,442

$ 4,256,877

$ 2,963,768

$ 1,446,042

Portfolio turnover rate F

  156% A

  88%

  132%

  98%

  126%

  59%

A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. D Calculated based on average shares outstanding during the period. E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2013 (Unaudited)

1. Organization.

Fidelity® New Markets Income Fund (the Fund) is a non-diversified fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.

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 Fidelity Management & Research Company (FMR) 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 FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Investment Valuation - continued

determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Valuation techniques used to value the Fund's investments by major category are as follows:

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. For corporate bonds, foreign government and government agency obligations, preferred securities and U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs),

Semiannual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2.

ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2013, 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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A 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.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to foreign currency transactions, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 216,645,560

Gross unrealized depreciation

(205,003,707)

Net unrealized appreciation (depreciation) on securities and other investments

$ 11,641,853

 

 

Tax cost

$ 5,663,212,898

Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.

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 U.S. government securities, aggregated $3,884,754,750 and $4,574,446,428, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. FMR 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 .55% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .66% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .13% of average net assets.

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $152 for the period.

6. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9,356 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

7. Security Lending.

The Fund lends portfolio securities 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

Semiannual Report

7. Security Lending - continued

delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $154,181. During the period, there were no securities loaned to FCM.

8. Expense Reductions.

FMR reimbursed a portion of the Fund's operating expenses during the period in the amount of $15,485.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $98,894 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3,584.

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.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Credit Risk.

The Fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income they generate, as well as the Fund's ability to repatriate such amounts.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

FIL Investment Advisors

FIL Investment Advisors (UK) Ltd.

FIL Investments (Japan) Limited

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(U.K.) Inc.

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) ang138053
1-800-544-5555

ang138053
Automated line for quickest service

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com

NMI-USAN-0813
1.787782.110

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Not applicable.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Summer Street Trust's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Summer Street Trust's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of 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. 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 Summer Street Trust

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

August 23, 2013

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/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

August 23, 2013

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

August 23, 2013