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 811-03583
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)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | November 30 |
Date of reporting period: | May 31, 2020 |
Item 1.
Reports to Stockholders
Fidelity® Growth Company Fund
Semi-Annual Report
May 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
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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 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2020
| % of fund's net assets | |
| NVIDIA Corp. | 7.9 |
| Amazon.com, Inc. | 6.7 |
| Apple, Inc. | 6.1 |
| Microsoft Corp. | 4.8 |
| Shopify, Inc. Class A | 4.5 |
| lululemon athletica, Inc. | 4.1 |
| Alphabet, Inc. Class A | 3.7 |
| Salesforce.com, Inc. | 3.0 |
| Alphabet, Inc. Class C | 2.1 |
| Moderna, Inc. | 2.0 |
| 44.9 |
Top Five Market Sectors as of May 31, 2020
| % of fund's net assets | |
| Information Technology | 40.0 |
| Consumer Discretionary | 21.3 |
| Health Care | 19.2 |
| Communication Services | 11.1 |
| Industrials | 3.4 |
Asset Allocation (% of fund's net assets)
| As of May 31, 2020* | ||
| Stocks | 98.6% | |
| Convertible Securities | 1.1% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.3% | |
* Foreign investments - 11.3%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.5% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 11.1% | |||
| Diversified Telecommunication Services - 0.0% | |||
| Verizon Communications, Inc. | 211,868 | $12,157 | |
| Entertainment - 2.5% | |||
| Activision Blizzard, Inc. | 2,324,728 | 167,334 | |
| Electronic Arts, Inc. (a) | 420,588 | 51,682 | |
| Lions Gate Entertainment Corp. Class A (a)(b) | 83,808 | 668 | |
| NetEase, Inc. ADR | 149,148 | 57,109 | |
| Netflix, Inc. (a) | 840,916 | 352,958 | |
| Nintendo Co. Ltd. | 40,420 | 16,434 | |
| Roku, Inc. Class A (a) | 3,285,889 | 359,838 | |
| Sea Ltd. ADR (a) | 1,759,225 | 140,386 | |
| The Walt Disney Co. | 149,685 | 17,558 | |
| 1,163,967 | |||
| Interactive Media & Services - 7.9% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 1,197,178 | 1,716,179 | |
| Class C (a) | 697,812 | 997,118 | |
| Facebook, Inc. Class A (a) | 4,053,744 | 912,457 | |
| Match Group, Inc. (a)(b) | 181,417 | 16,153 | |
| Snap, Inc. Class A (a) | 995,250 | 18,850 | |
| Tencent Holdings Ltd. | 649,200 | 35,158 | |
| Twitter, Inc. (a) | 463,972 | 14,369 | |
| 3,710,284 | |||
| Media - 0.1% | |||
| Comcast Corp. Class A | 1,496,535 | 59,263 | |
| Turn, Inc. (Escrow) (a)(c)(d) | 984,774 | 14 | |
| 59,277 | |||
| Wireless Telecommunication Services - 0.6% | |||
| T-Mobile U.S., Inc. (a) | 2,979,196 | 298,039 | |
| TOTAL COMMUNICATION SERVICES | 5,243,724 | ||
| CONSUMER DISCRETIONARY - 21.2% | |||
| Automobiles - 1.4% | |||
| Neutron Holdings, Inc. (d) | 11,929,152 | 2,863 | |
| Tesla, Inc. (a)(b) | 783,089 | 653,879 | |
| 656,742 | |||
| Hotels, Restaurants & Leisure - 0.9% | |||
| Chipotle Mexican Grill, Inc. (a) | 44,959 | 45,135 | |
| Hyatt Hotels Corp. Class A (b) | 166,512 | 9,173 | |
| Marriott International, Inc. Class A | 793,660 | 70,239 | |
| McDonald's Corp. | 3,579 | 667 | |
| Papa John's International, Inc. | 93,918 | 7,315 | |
| Penn National Gaming, Inc. (a) | 1,994,183 | 65,429 | |
| Planet Fitness, Inc. (a) | 190,475 | 12,310 | |
| Shake Shack, Inc. Class A (a)(b) | 86,784 | 4,821 | |
| Starbucks Corp. | 1,599,366 | 124,735 | |
| Yum China Holdings, Inc. | 929,987 | 43,096 | |
| Yum! Brands, Inc. | 431,220 | 38,693 | |
| 421,613 | |||
| Household Durables - 0.7% | |||
| D.R. Horton, Inc. | 922,224 | 50,999 | |
| KB Home | 1,065,084 | 35,233 | |
| Lennar Corp. Class A | 3,260,374 | 197,122 | |
| NVR, Inc. (a) | 7,995 | 25,757 | |
| Toll Brothers, Inc. | 987,029 | 31,891 | |
| 341,002 | |||
| Internet & Direct Marketing Retail - 9.5% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 920,992 | 191,005 | |
| Amazon.com, Inc. (a) | 1,296,205 | 3,165,812 | |
| Etsy, Inc. (a) | 160,683 | 13,012 | |
| Farfetch Ltd. Class A (a) | 1,577,303 | 21,861 | |
| JD.com, Inc. sponsored ADR (a) | 2,198,830 | 119,462 | |
| Ocado Group PLC (a) | 4,605,900 | 124,630 | |
| The Booking Holdings, Inc. (a) | 59,213 | 97,075 | |
| The Honest Co., Inc. (a)(c)(d) | 39,835 | 573 | |
| The RealReal, Inc. | 1,302,049 | 17,460 | |
| Wayfair LLC Class A (a)(b) | 4,041,424 | 693,306 | |
| 4,444,196 | |||
| Leisure Products - 0.2% | |||
| Callaway Golf Co. (b) | 344,375 | 5,276 | |
| Peloton Interactive, Inc. Class A (a) | 1,577,356 | 66,549 | |
| 71,825 | |||
| Multiline Retail - 0.3% | |||
| Dollar General Corp. | 220,126 | 42,156 | |
| Dollar Tree, Inc. (a) | 359,805 | 35,214 | |
| Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 421,385 | 38,536 | |
| Target Corp. | 285,343 | 34,906 | |
| 150,812 | |||
| Specialty Retail - 1.9% | |||
| Carvana Co. Class A (a)(b) | 1,251,068 | 116,324 | |
| Lowe's Companies, Inc. | 1,559,242 | 203,247 | |
| RH (a) | 787,255 | 170,748 | |
| The Home Depot, Inc. | 1,355,087 | 336,712 | |
| TJX Companies, Inc. | 1,611,208 | 85,007 | |
| 912,038 | |||
| Textiles, Apparel & Luxury Goods - 6.3% | |||
| adidas AG | 1,456,239 | 386,205 | |
| Allbirds, Inc. (a)(c)(d) | 307,430 | 2,718 | |
| Canada Goose Holdings, Inc. (a)(b) | 1,367,187 | 26,671 | |
| Deckers Outdoor Corp. (a) | 136,892 | 24,987 | |
| lululemon athletica, Inc. (a) | 6,474,788 | 1,943,052 | |
| NIKE, Inc. Class B | 1,879,883 | 185,319 | |
| On Holding AG (c)(d) | 900 | 8,374 | |
| Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 9,039,199 | 283,108 | |
| Tory Burch LLC: | |||
| Class A (c)(d)(e) | 950,844 | 50,870 | |
| Class B (c)(d)(e) | 324,840 | 18,655 | |
| Under Armour, Inc. Class C (non-vtg.) (a) | 392,067 | 3,082 | |
| VF Corp. | 304,707 | 17,094 | |
| 2,950,135 | |||
| TOTAL CONSUMER DISCRETIONARY | 9,948,363 | ||
| CONSUMER STAPLES - 2.4% | |||
| Beverages - 1.2% | |||
| Boston Beer Co., Inc. Class A (a) | 96,922 | 54,735 | |
| Keurig Dr. Pepper, Inc. (b) | 3,454,087 | 96,438 | |
| Monster Beverage Corp. (a) | 2,994,815 | 215,357 | |
| PepsiCo, Inc. | 340,474 | 44,789 | |
| The Coca-Cola Co. | 2,812,818 | 131,302 | |
| 542,621 | |||
| Food & Staples Retailing - 0.9% | |||
| Costco Wholesale Corp. | 633,006 | 195,263 | |
| Kroger Co. | 4,289,435 | 139,921 | |
| Performance Food Group Co. (a) | 1,356,622 | 36,154 | |
| Sysco Corp. | 457,379 | 25,229 | |
| 396,567 | |||
| Food Products - 0.1% | |||
| Bunge Ltd. | 444,874 | 17,359 | |
| Darling Ingredients, Inc.(a) | 1,142,322 | 26,628 | |
| Freshpet, Inc. (a) | 113,413 | 8,753 | |
| Mondelez International, Inc. | 218,410 | 11,384 | |
| 64,124 | |||
| Household Products - 0.1% | |||
| Church & Dwight Co., Inc. | 291,597 | 21,890 | |
| Colgate-Palmolive Co. | 201,292 | 14,559 | |
| Kimberly-Clark Corp. | 78,257 | 11,069 | |
| Procter & Gamble Co. | 10,384 | 1,204 | |
| 48,722 | |||
| Personal Products - 0.0% | |||
| Unilever NV | 44,780 | 2,314 | |
| Tobacco - 0.1% | |||
| Altria Group, Inc. | 1,404,083 | 54,829 | |
| JUUL Labs, Inc. Class A (a)(c)(d) | 44,067 | 4,884 | |
| 59,713 | |||
| TOTAL CONSUMER STAPLES | 1,114,061 | ||
| ENERGY - 0.5% | |||
| Oil, Gas & Consumable Fuels - 0.5% | |||
| EOG Resources, Inc. | 365,268 | 18,618 | |
| Hess Corp. | 2,506,621 | 118,989 | |
| Noble Energy, Inc. | 1,969,826 | 17,197 | |
| Reliance Industries Ltd. | 4,034,380 | 78,142 | |
| Reliance Industries Ltd. rights (a) | 268,958 | 790 | |
| Valero Energy Corp. | 206,158 | 13,738 | |
| 247,474 | |||
| FINANCIALS - 1.1% | |||
| Banks - 0.5% | |||
| Bank of America Corp. | 1,662,424 | 40,098 | |
| HDFC Bank Ltd. sponsored ADR | 1,567,922 | 65,586 | |
| JPMorgan Chase & Co. | 1,321,253 | 128,571 | |
| 234,255 | |||
| Capital Markets - 0.5% | |||
| BlackRock, Inc. Class A | 189,733 | 100,300 | |
| BM&F BOVESPA SA | 2,028,900 | 17,318 | |
| Charles Schwab Corp. | 3,483,659 | 125,098 | |
| Edelweiss Financial Services Ltd. | 3,527,164 | 2,148 | |
| T. Rowe Price Group, Inc. | 42,651 | 5,157 | |
| The Blackstone Group LP | 92,006 | 5,226 | |
| 255,247 | |||
| Consumer Finance - 0.1% | |||
| American Express Co. | 464,323 | 44,143 | |
| Discover Financial Services | 97,986 | 4,655 | |
| 48,798 | |||
| TOTAL FINANCIALS | 538,300 | ||
| HEALTH CARE - 18.7% | |||
| Biotechnology - 11.5% | |||
| AbbVie, Inc. | 429,405 | 39,793 | |
| ACADIA Pharmaceuticals, Inc. (a) | 7,421,464 | 368,698 | |
| ADC Therapeutics SA (a) | 585,672 | 21,641 | |
| Agios Pharmaceuticals, Inc. (a) | 1,070,113 | 55,368 | |
| Alector, Inc. (a)(b) | 993,587 | 32,490 | |
| Alexion Pharmaceuticals, Inc. (a) | 61,817 | 7,412 | |
| Allogene Therapeutics, Inc. (a)(b) | 1,055,626 | 50,839 | |
| Alnylam Pharmaceuticals, Inc. (a) | 4,903,370 | 663,279 | |
| Amgen, Inc. | 787,084 | 180,793 | |
| AnaptysBio, Inc. (a)(b) | 33,865 | 646 | |
| Arcutis Biotherapeutics, Inc. (a) | 569,148 | 19,095 | |
| Argenx SE ADR (a) | 420,873 | 92,297 | |
| Arrowhead Pharmaceuticals, Inc. (a) | 157,695 | 5,084 | |
| Ascendis Pharma A/S sponsored ADR (a) | 37,577 | 5,467 | |
| aTyr Pharma, Inc. | 387,915 | 1,451 | |
| Axcella Health, Inc. (f) | 2,014,145 | 12,085 | |
| BeiGene Ltd. ADR (a) | 1,804,867 | 298,778 | |
| Biogen, Inc. (a) | 14,064 | 4,319 | |
| BioNTech SE ADR (a) | 2,925,023 | 144,876 | |
| Blueprint Medicines Corp. (a) | 18,088 | 1,178 | |
| Bridgebio Pharma, Inc. (b) | 279,695 | 8,203 | |
| Calyxt, Inc. (a) | 1,394,860 | 6,054 | |
| Cellectis SA sponsored ADR (a) | 414,375 | 7,654 | |
| ChemoCentryx, Inc. (a) | 2,834,293 | 176,832 | |
| Cibus Corp.: | |||
| Series C (a)(c)(d)(e) | 4,523,810 | 7,616 | |
| Series D (a)(c)(d)(e) | 2,741,040 | 3,426 | |
| Constellation Pharmaceuticals, Inc. (a) | 329,526 | 11,708 | |
| Crinetics Pharmaceuticals, Inc. (a) | 300,281 | 4,907 | |
| CRISPR Therapeutics AG (a)(b) | 66,820 | 4,315 | |
| Cyclerion Therapeutics, Inc. (a) | 322,837 | 1,285 | |
| Cyclerion Therapeutics, Inc. (a)(c) | 543,695 | 2,164 | |
| Denali Therapeutics, Inc. (a)(b) | 493,662 | 13,739 | |
| Eidos Therapeutics, Inc. (a)(b) | 58,629 | 2,868 | |
| Evelo Biosciences, Inc. (a)(b) | 1,389,558 | 6,072 | |
| Exact Sciences Corp. (a)(b) | 199,617 | 17,143 | |
| Exelixis, Inc. (a) | 1,158,347 | 28,623 | |
| Fate Therapeutics, Inc. (a) | 2,675,334 | 86,761 | |
| G1 Therapeutics, Inc. (a) | 300,882 | 5,106 | |
| Homology Medicines, Inc. (a) | 869,321 | 12,379 | |
| Immunomedics, Inc. (a) | 733,955 | 24,654 | |
| Intarcia Therapeutics, Inc. warrants 12/6/24 (a)(d) | 156,370 | 0 | |
| Intercept Pharmaceuticals, Inc. (a) | 170,704 | 12,335 | |
| Ionis Pharmaceuticals, Inc. (a)(f) | 8,243,721 | 463,380 | |
| Iovance Biotherapeutics, Inc. (a) | 391,933 | 12,577 | |
| Ironwood Pharmaceuticals, Inc. Class A (a) | 2,639,445 | 25,682 | |
| Karuna Therapeutics, Inc. (a)(f) | 1,545,398 | 145,051 | |
| Keros Therapeutics, Inc. | 268,738 | 7,724 | |
| Lexicon Pharmaceuticals, Inc. (a)(b) | 5,003,757 | 9,557 | |
| Macrogenics, Inc. (a) | 107,366 | 2,066 | |
| Mirati Therapeutics, Inc. (a) | 115,642 | 11,471 | |
| Moderna, Inc. (a)(b) | 14,848,758 | 913,199 | |
| Momenta Pharmaceuticals, Inc. (a)(f) | 7,156,484 | 225,286 | |
| Morphic Holding, Inc. | 745,608 | 15,494 | |
| ORIC Pharmaceuticals, Inc. (a) | 514,116 | 14,920 | |
| ORIC Pharmaceuticals, Inc. | 397,995 | 10,395 | |
| Passage Bio, Inc. | 267,459 | 5,892 | |
| Principia Biopharma, Inc. (a) | 291,637 | 18,633 | |
| Protagonist Therapeutics, Inc. (a) | 961,463 | 15,893 | |
| Prothena Corp. PLC (a) | 881,726 | 9,399 | |
| PTC Therapeutics, Inc. (a) | 523,084 | 26,526 | |
| Regeneron Pharmaceuticals, Inc. (a) | 427,776 | 262,145 | |
| Repligen Corp. (a)(b) | 36,185 | 4,739 | |
| Revolution Medicines, Inc. | 689,294 | 21,175 | |
| Rigel Pharmaceuticals, Inc. (a)(f) | 9,773,543 | 19,107 | |
| Rubius Therapeutics, Inc. (a)(b)(f) | 4,593,095 | 29,625 | |
| Sage Therapeutics, Inc. (a) | 2,492,330 | 89,026 | |
| Sarepta Therapeutics, Inc. (a) | 313,025 | 47,664 | |
| Scholar Rock Holding Corp. (a) | 986,329 | 18,148 | |
| Seres Therapeutics, Inc. (a) | 2,629,148 | 14,434 | |
| Syros Pharmaceuticals, Inc. (a)(g) | 938,007 | 9,183 | |
| Syros Pharmaceuticals, Inc. (a) | 1,177,174 | 11,525 | |
| Syros Pharmaceuticals, Inc. warrants 10/10/22 (a) | 119,778 | 407 | |
| TG Therapeutics, Inc. (a) | 315,110 | 5,877 | |
| Translate Bio, Inc. (a) | 2,948,959 | 61,102 | |
| Turning Point Therapeutics, Inc. (a) | 203,354 | 14,082 | |
| Ultragenyx Pharmaceutical, Inc. (a) | 77,237 | 5,288 | |
| uniQure B.V. (a) | 800,170 | 53,739 | |
| UNITY Biotechnology, Inc. (a)(f) | 2,689,698 | 22,002 | |
| Vertex Pharmaceuticals, Inc. (a) | 525,670 | 151,372 | |
| Xencor, Inc. (a) | 1,312,941 | 39,716 | |
| Zai Lab Ltd. ADR (a) | 1,775,788 | 132,119 | |
| Zentalis Pharmaceuticals, Inc. | 383,498 | 20,026 | |
| 5,415,079 | |||
| Health Care Equipment & Supplies - 3.5% | |||
| Abbott Laboratories | 629,929 | 59,793 | |
| Boston Scientific Corp. (a) | 1,660,766 | 63,093 | |
| Danaher Corp. | 1,193,863 | 198,910 | |
| DexCom, Inc. (a) | 790,889 | 299,201 | |
| Genmark Diagnostics, Inc. (a) | 1,346,210 | 12,776 | |
| Inari Medical, Inc. | 69,400 | 3,054 | |
| Insulet Corp. (a) | 1,878,499 | 354,229 | |
| Intuitive Surgical, Inc. (a) | 379,590 | 220,174 | |
| Novocure Ltd. (a) | 3,771,333 | 254,301 | |
| Penumbra, Inc. (a) | 544,740 | 93,924 | |
| Presbia PLC (a)(f) | 1,113,213 | 22 | |
| Shockwave Medical, Inc.(a) | 911,517 | 40,116 | |
| Stryker Corp. | 141,184 | 27,634 | |
| 1,627,227 | |||
| Health Care Providers & Services - 1.0% | |||
| 1Life Healthcare, Inc. (a) | 351,138 | 11,342 | |
| Alignment Healthcare Partners unit (c)(d) | 870,575 | 15,495 | |
| Centene Corp. (a) | 535,263 | 35,461 | |
| Humana, Inc. | 58,338 | 23,956 | |
| Laboratory Corp. of America Holdings (a) | 51,663 | 9,058 | |
| UnitedHealth Group, Inc. | 1,235,687 | 376,699 | |
| 472,011 | |||
| Health Care Technology - 0.0% | |||
| Castlight Health, Inc. Class B (a) | 1,413,418 | 1,113 | |
| Teladoc Health, Inc. (a) | 147,942 | 25,751 | |
| 26,864 | |||
| Life Sciences Tools & Services - 1.1% | |||
| 10X Genomics, Inc. (a)(b) | 1,198,563 | 93,452 | |
| 10X Genomics, Inc. Class B (g) | 2,870,040 | 223,777 | |
| Adaptive Biotechnologies Corp. | 134,117 | 5,190 | |
| Bruker Corp. | 285,044 | 12,337 | |
| Nanostring Technologies, Inc. (a) | 145,889 | 4,454 | |
| Thermo Fisher Scientific, Inc. | 296,951 | 103,692 | |
| Wuxi Biologics (Cayman), Inc. (a)(g) | 3,615,000 | 57,087 | |
| 499,989 | |||
| Pharmaceuticals - 1.6% | |||
| Adimab LLC (c)(d)(e) | 3,162,765 | 126,953 | |
| Akcea Therapeutics, Inc. (a)(b) | 4,937,725 | 73,572 | |
| Bristol-Myers Squibb Co. | 1,097,296 | 65,531 | |
| Dragonfly Therapeutics, Inc. (c)(d) | 481,725 | 12,101 | |
| Fulcrum Therapeutics, Inc. | 766,199 | 15,255 | |
| Hansoh Pharmaceutical Group Co. Ltd. (g) | 2,880,000 | 12,585 | |
| Intra-Cellular Therapies, Inc. (a) | 2,775,695 | 57,957 | |
| Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 257,184 | 2,836 | |
| Kaleido Biosciences, Inc. (a)(b) | 1,021,756 | 7,377 | |
| MyoKardia, Inc. (a) | 1,849,053 | 189,140 | |
| Nektar Therapeutics (a)(b) | 3,930,092 | 85,283 | |
| OptiNose, Inc. (a)(b)(f) | 2,624,992 | 11,340 | |
| RPI International Holdings LP (c)(d) | 130,847 | 30,775 | |
| Sienna Biopharmaceuticals, Inc. (a)(f) | 1,919,143 | 29 | |
| Stemcentrx, Inc. rights 12/31/21 (a)(d) | 2,065,715 | 0 | |
| Theravance Biopharma, Inc. (a) | 1,859,112 | 46,943 | |
| 737,677 | |||
| TOTAL HEALTH CARE | 8,778,847 | ||
| INDUSTRIALS - 3.3% | |||
| Aerospace & Defense - 0.4% | |||
| Lockheed Martin Corp. | 86,586 | 33,633 | |
| Space Exploration Technologies Corp. Class A (a)(c)(d) | 418,210 | 92,006 | |
| The Boeing Co. | 297,612 | 43,407 | |
| 169,046 | |||
| Air Freight & Logistics - 0.2% | |||
| United Parcel Service, Inc. Class B | 726,648 | 72,454 | |
| Airlines - 0.7% | |||
| Delta Air Lines, Inc. | 332,388 | 8,380 | |
| JetBlue Airways Corp. (a) | 4,185,358 | 42,147 | |
| Ryanair Holdings PLC sponsored ADR (a) | 362,530 | 26,019 | |
| Southwest Airlines Co. | 3,158,865 | 101,400 | |
| Spirit Airlines, Inc. (a) | 1,198,554 | 15,521 | |
| United Airlines Holdings, Inc. (a) | 768,002 | 21,535 | |
| Wheels Up Partners Holdings LLC: | |||
| Series B (a)(c)(d)(e) | 6,703,518 | 19,061 | |
| Series C (a)(c)(d)(e) | 3,466,281 | 10,815 | |
| Series D (a)(c)(d)(e) | 2,655,848 | 9,242 | |
| Wizz Air Holdings PLC (a)(g) | 2,383,684 | 96,558 | |
| 350,678 | |||
| Building Products - 0.1% | |||
| Trane Technologies PLC | 401,908 | 36,256 | |
| Commercial Services & Supplies - 0.0% | |||
| HomeServe PLC | 343,500 | 5,502 | |
| Electrical Equipment - 0.1% | |||
| AMETEK, Inc. | 20,503 | 1,880 | |
| Eaton Corp. PLC | 239,248 | 20,312 | |
| Emerson Electric Co. | 335,948 | 20,500 | |
| Generac Holdings, Inc. (a) | 157,524 | 17,528 | |
| 60,220 | |||
| Industrial Conglomerates - 0.4% | |||
| 3M Co. | 298,514 | 46,700 | |
| General Electric Co. | 650,319 | 4,273 | |
| Honeywell International, Inc. | 957,440 | 139,643 | |
| 190,616 | |||
| Machinery - 0.5% | |||
| Caterpillar, Inc. | 266,714 | 32,040 | |
| Deere & Co. | 469,372 | 71,401 | |
| Fortive Corp. | 246,376 | 15,024 | |
| Gardner Denver Holdings, Inc. (a) | 98,109 | 2,767 | |
| Illinois Tool Works, Inc. | 445,573 | 76,844 | |
| Xylem, Inc. | 822,776 | 54,583 | |
| 252,659 | |||
| Professional Services - 0.0% | |||
| CoStar Group, Inc. (a) | 9,914 | 6,512 | |
| Verisk Analytics, Inc. | 26,852 | 4,637 | |
| 11,149 | |||
| Road & Rail - 0.9% | |||
| Kansas City Southern | 153,329 | 23,079 | |
| Lyft, Inc. (a) | 1,034,164 | 32,328 | |
| Uber Technologies, Inc. | 5,322,536 | 193,315 | |
| Union Pacific Corp. | 880,301 | 149,528 | |
| 398,250 | |||
| TOTAL INDUSTRIALS | 1,546,830 | ||
| INFORMATION TECHNOLOGY - 39.7% | |||
| Communications Equipment - 0.5% | |||
| Arista Networks, Inc. (a) | 28,860 | 6,738 | |
| Ciena Corp. (a) | 1,915,000 | 105,823 | |
| Cisco Systems, Inc. | 392,881 | 18,788 | |
| Infinera Corp. (a)(f) | 12,467,762 | 62,089 | |
| Lumentum Holdings, Inc. (a) | 419,218 | 30,737 | |
| 224,175 | |||
| Electronic Equipment & Components - 0.2% | |||
| Arlo Technologies, Inc. (a) | 1,978,249 | 4,372 | |
| II-VI, Inc. (a) | 895,393 | 42,558 | |
| TE Connectivity Ltd. | 16,914 | 1,374 | |
| Trimble, Inc. (a) | 335,373 | 13,120 | |
| 61,424 | |||
| IT Services - 9.0% | |||
| Actua Corp. (a)(d) | 1,555,638 | 78 | |
| Black Knight, Inc. (a) | 432,054 | 33,260 | |
| IBM Corp. | 33,806 | 4,222 | |
| MasterCard, Inc. Class A | 1,655,439 | 498,105 | |
| MongoDB, Inc. Class A (a) | 183,651 | 42,627 | |
| Okta, Inc. (a) | 268,380 | 52,490 | |
| PayPal Holdings, Inc. (a) | 4,270,493 | 661,969 | |
| Riskified Ltd. (c)(d) | 28,776 | 7,804 | |
| Riskified Ltd. warrants (a)(c)(d) | 4,733 | 0 | |
| Shopify, Inc. Class A (a) | 2,792,296 | 2,119,233 | |
| Square, Inc. (a) | 1,708,006 | 138,485 | |
| Twilio, Inc. Class A (a) | 59,179 | 11,694 | |
| Visa, Inc. Class A | 2,939,132 | 573,836 | |
| Wix.com Ltd. (a) | 430,318 | 95,673 | |
| 4,239,476 | |||
| Semiconductors & Semiconductor Equipment - 11.5% | |||
| Advanced Micro Devices, Inc. (a) | 9,765,963 | 525,409 | |
| Applied Materials, Inc. | 1,155,069 | 64,892 | |
| ASML Holding NV | 335,912 | 110,686 | |
| Broadcom, Inc. | 131,446 | 38,286 | |
| Cirrus Logic, Inc. (a) | 1,442,719 | 104,568 | |
| Cree, Inc. (a)(b) | 398,354 | 20,989 | |
| Inphi Corp. (a) | 415,696 | 52,241 | |
| Intel Corp. | 64,407 | 4,053 | |
| KLA-Tencor Corp. | 201,885 | 35,524 | |
| Marvell Technology Group Ltd. | 2,786,247 | 90,887 | |
| Micron Technology, Inc. (a) | 2,654,452 | 127,175 | |
| NVIDIA Corp. | 10,390,364 | 3,688,776 | |
| Qualcomm, Inc. | 522,248 | 42,239 | |
| Silicon Laboratories, Inc. (a)(f) | 3,002,379 | 281,203 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,378,530 | 69,381 | |
| Teradyne, Inc. | 128,169 | 8,590 | |
| Texas Instruments, Inc. | 1,131,531 | 134,358 | |
| Universal Display Corp. | 30,183 | 4,425 | |
| 5,403,682 | |||
| Software - 12.1% | |||
| 2U, Inc. (a)(b) | 340,881 | 12,432 | |
| Adobe, Inc. (a) | 1,141,810 | 441,424 | |
| Atlassian Corp. PLC (a) | 244,726 | 45,348 | |
| Autodesk, Inc. (a) | 697,184 | 146,674 | |
| Avalara, Inc. (a) | 134,289 | 14,377 | |
| Bill.Com Holdings, Inc. (a) | 15,217 | 1,060 | |
| Cadence Design Systems, Inc. (a) | 67,943 | 6,203 | |
| Cloudflare, Inc. (a) | 5,571,038 | 161,950 | |
| Coupa Software, Inc. (a) | 349,790 | 79,581 | |
| Crowdstrike Holdings, Inc. (b) | 153,592 | 13,487 | |
| CyberArk Software Ltd. (a) | 33,906 | 3,519 | |
| Datadog, Inc. Class A (a) | 52,572 | 3,747 | |
| DocuSign, Inc. (a) | 41,426 | 5,789 | |
| Elastic NV (a) | 173,937 | 14,945 | |
| HubSpot, Inc. (a) | 1,148,192 | 229,570 | |
| Intuit, Inc. | 378,456 | 109,873 | |
| LivePerson, Inc. (a) | 811,409 | 30,387 | |
| Medallia, Inc. (b) | 433,165 | 12,250 | |
| Microsoft Corp. | 12,315,471 | 2,256,810 | |
| Nutanix, Inc. Class A (a) | 11,850,745 | 285,129 | |
| Oracle Corp. | 1,880,934 | 101,138 | |
| Outset Medical, Inc. (a)(c)(d) | 432,182 | 1,093 | |
| Paylocity Holding Corp. (a) | 104,770 | 13,621 | |
| Ping Identity Holding Corp. (a)(b) | 133,137 | 3,769 | |
| Pluralsight, Inc. (a) | 1,004,284 | 20,919 | |
| RingCentral, Inc. (a) | 38,911 | 10,671 | |
| Salesforce.com, Inc. (a) | 7,938,197 | 1,387,517 | |
| Snowflake Computing, Inc. Class B (c)(d) | 32,508 | 1,260 | |
| The Trade Desk, Inc. (a)(b) | 157,490 | 49,068 | |
| Workday, Inc. Class A (a) | 18,780 | 3,445 | |
| Zendesk, Inc. (a) | 1,602,167 | 137,386 | |
| Zoom Video Communications, Inc. Class A (a) | 104,126 | 18,689 | |
| Zscaler, Inc. (a)(b) | 759,663 | 74,515 | |
| 5,697,646 | |||
| Technology Hardware, Storage & Peripherals - 6.4% | |||
| Apple, Inc. | 9,006,578 | 2,863,551 | |
| Pure Storage, Inc. Class A (a) | 6,889,801 | 121,329 | |
| Samsung Electronics Co. Ltd. | 608,235 | 25,027 | |
| 3,009,907 | |||
| TOTAL INFORMATION TECHNOLOGY | 18,636,310 | ||
| MATERIALS - 0.3% | |||
| Chemicals - 0.1% | |||
| Albemarle Corp. U.S. (b) | 75,772 | 5,798 | |
| Dow, Inc. | 274,921 | 10,612 | |
| DuPont de Nemours, Inc. | 128,382 | 6,513 | |
| 22,923 | |||
| Metals & Mining - 0.2% | |||
| Barrick Gold Corp. (Canada) | 4,699,400 | 113,010 | |
| TOTAL MATERIALS | 135,933 | ||
| REAL ESTATE - 0.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
| American Tower Corp. | 304,004 | 78,485 | |
| Ant International Co. Ltd. Class C (a)(c)(d) | 1,658,265 | 14,162 | |
| 92,647 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $15,995,461) | 46,282,489 | ||
| Preferred Stocks - 1.2% | |||
| Convertible Preferred Stocks - 1.1% | |||
| COMMUNICATION SERVICES - 0.0% | |||
| Wireless Telecommunication Services - 0.0% | |||
| Altiostar Networks, Inc. Series A1 (a)(c)(d) | 699,106 | 2,692 | |
| CONSUMER DISCRETIONARY - 0.1% | |||
| Hotels, Restaurants & Leisure - 0.1% | |||
| MOD Super Fast Pizza Holdings LLC: | |||
| Series 3 (a)(c)(d)(e) | 56,343 | 7,807 | |
| Series 4 (a)(c)(d)(e) | 5,142 | 713 | |
| Series 5 (a)(c)(d)(e) | 20,652 | 2,862 | |
| Topgolf International, Inc. Series F (a)(c)(d) | 819,532 | 9,974 | |
| 21,356 | |||
| Internet & Direct Marketing Retail - 0.0% | |||
| Reddit, Inc. Series B (a)(c)(d) | 384,303 | 12,947 | |
| The Honest Co., Inc.: | |||
| Series C (a)(c)(d) | 92,950 | 3,593 | |
| Series D (a)(c)(d) | 69,363 | 3,174 | |
| 19,714 | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc.: | |||
| Series A (a)(c)(d) | 121,335 | 1,073 | |
| Series B (a)(c)(d) | 21,315 | 188 | |
| Series C (a)(c)(d) | 203,730 | 1,801 | |
| Series D (c)(d) | 260,897 | 2,306 | |
| Series Seed (a)(c)(d) | 406,151 | 3,590 | |
| 8,958 | |||
| TOTAL CONSUMER DISCRETIONARY | 50,028 | ||
| CONSUMER STAPLES - 0.1% | |||
| Food & Staples Retailing - 0.1% | |||
| Blink Health LLC Series C (c)(d) | 643,820 | 27,562 | |
| Sweetgreen, Inc.: | |||
| Series C (c)(d) | 5,291 | 79 | |
| Series D (c)(d) | 85,105 | 1,271 | |
| Series H (a)(c)(d) | 705,259 | 10,537 | |
| Series I (c)(d) | 200,582 | 2,997 | |
| 42,446 | |||
| Food Products - 0.0% | |||
| Agbiome LLC Series C (a)(c)(d) | 1,060,308 | 6,716 | |
| Tobacco - 0.0% | |||
| JUUL Labs, Inc. Series E (a)(c)(d) | 22,033 | 2,442 | |
| TOTAL CONSUMER STAPLES | 51,604 | ||
| FINANCIALS - 0.1% | |||
| Diversified Financial Services - 0.1% | |||
| Paragon Biosciences Emalex Capital, Inc. Series B (c)(d) | 416,094 | 5,309 | |
| Sonder Holdings, Inc.: | |||
| Series D (c)(d) | 965,896 | 10,400 | |
| Series E (c)(d) | 1,478,345 | 15,917 | |
| 31,626 | |||
| Insurance - 0.0% | |||
| Clover Health Series D (a)(c)(d) | 863,631 | 3,722 | |
| TOTAL FINANCIALS | 35,348 | ||
| HEALTH CARE - 0.4% | |||
| Biotechnology - 0.2% | |||
| 23andMe, Inc. Series F (a)(c)(d) | 590,383 | 9,015 | |
| Akouos, Inc. Series B (c)(d) | 7,629,245 | 3,620 | |
| Element Biosciences, Inc. Series B (c)(d) | 1,096,312 | 5,624 | |
| Generation Bio: | |||
| Series B (a)(c) | 831,800 | 8,052 | |
| Series C (c) | 705,100 | 6,825 | |
| Immunocore Ltd. Series A (a)(c)(d) | 67,323 | 9,904 | |
| Intarcia Therapeutics, Inc.: | |||
| Series CC (a)(c)(d) | 1,051,411 | 5,141 | |
| Series DD (a)(c)(d) | 1,543,687 | 7,549 | |
| Nuvation Bio, Inc. Series A (c)(d)(h) | 13,044,100 | 12,261 | |
| Seer, Inc. Series D1 (c)(d) | 1,490,748 | 5,590 | |
| 73,581 | |||
| Health Care Providers & Services - 0.0% | |||
| Mulberry Health, Inc. Series A-8 (a)(c)(d) | 2,790,742 | 16,800 | |
| Health Care Technology - 0.1% | |||
| Codiak Biosciences, Inc.: | |||
| Series A 8.00% (a)(c)(d) | 589,863 | 2,519 | |
| Series B 8.00%(a)(c)(d) | 1,917,058 | 8,186 | |
| Series C, 8.00% (a)(c)(d) | 2,688,186 | 11,479 | |
| 22,184 | |||
| Pharmaceuticals - 0.1% | |||
| Allovir, Inc. Series B (c)(d) | 1,225,771 | 12,258 | |
| Castle Creek Pharmaceutical Holdings, Inc.: | |||
| Series B (a)(c)(d) | 16,803 | 6,705 | |
| Series C (c)(d) | 13,100 | 5,228 | |
| Harmony Biosciences II, Inc.: | |||
| Series A (a)(c)(d) | 10,934,380 | 26,461 | |
| Series C (c)(d) | 2,033,272 | 4,921 | |
| Nohla Therapeutics, Inc. Series B (a)(c)(d) | 9,124,200 | 0 | |
| 55,573 | |||
| TOTAL HEALTH CARE | 168,138 | ||
| INDUSTRIALS - 0.1% | |||
| Aerospace & Defense - 0.1% | |||
| Space Exploration Technologies Corp. Series G (a)(c)(d) | 216,276 | 47,581 | |
| Professional Services - 0.0% | |||
| YourPeople, Inc. Series C (a)(c)(d) | 5,833,137 | 17,499 | |
| TOTAL INDUSTRIALS | 65,080 | ||
| INFORMATION TECHNOLOGY - 0.3% | |||
| Internet Software & Services - 0.1% | |||
| Starry, Inc.: | |||
| Series B (a)(c)(d) | 9,869,159 | 12,040 | |
| Series C (a)(c)(d) | 5,234,614 | 6,386 | |
| Series D (a)(c)(d) | 5,078,764 | 6,196 | |
| 24,622 | |||
| IT Services - 0.0% | |||
| AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 923,523 | 29 | |
| Riskified Ltd. Series E (c)(d) | 22,562 | 6,119 | |
| 6,148 | |||
| Software - 0.2% | |||
| Bird Rides, Inc.: | |||
| Series C (a)(c)(d) | 348,328 | 3,957 | |
| Series D (c)(d) | 415,100 | 4,716 | |
| Dataminr, Inc. Series D (a)(c)(d) | 1,773,901 | 19,513 | |
| Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 7,578,338 | 0 | |
| Outset Medical, Inc.: | |||
| Series C(a)(c)(d) | 1,244,716 | 3,149 | |
| Series D (a)(c)(d) | 1,525,901 | 5,097 | |
| Series E (c)(d) | 1,652,363 | 4,180 | |
| Taboola.Com Ltd. Series E (a)(c)(d) | 1,337,420 | 39,922 | |
| UiPath, Inc.: | |||
| Series A1 (c)(d) | 195,690 | 7,139 | |
| Series B1 (c)(d) | 9,749 | 356 | |
| Series B2 (c)(d) | 48,550 | 1,771 | |
| 89,800 | |||
| TOTAL INFORMATION TECHNOLOGY | 120,570 | ||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 493,460 | ||
| Nonconvertible Preferred Stocks - 0.1% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Automobiles - 0.0% | |||
| Waymo LLC Series A2 (c)(d) | 44,767 | 3,844 | |
| ENERGY - 0.0% | |||
| Oil, Gas & Consumable Fuels - 0.0% | |||
| Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 1,120,169 | 8,446 | |
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.0% | |||
| Yumanity Holdings LLC: | |||
| Class A (a)(c)(d) | 464,607 | 3,601 | |
| Class B (a)(c)(d) | 336,308 | 2,606 | |
| 6,207 | |||
| Health Care Providers & Services - 0.0% | |||
| Oak Street Health LLC Series III-E (c)(d)(e) | 51,733 | 10,383 | |
| Pharmaceuticals - 0.1% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 (a)(c)(d) | 46,864 | 18,702 | |
| Faraday Pharmaceuticals, Inc. Series B (d) | 641,437 | 808 | |
| 19,510 | |||
| TOTAL HEALTH CARE | 36,100 | ||
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 48,390 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $573,479) | 541,850 | ||
| Principal Amount (000s) | Value (000s) | ||
| Preferred Securities - 0.0% | |||
| HEALTH CARE - 0.0% | |||
| Biotechnology - 0.0% | |||
| Intarcia Therapeutics, Inc. 6% 7/18/21 (Cost $13,682)(c)(d) | 13,682 | 17,716 | |
| Shares | Value (000s) | ||
| Money Market Funds - 1.6% | |||
| Fidelity Cash Central Fund 0.11% (i) | 149,195,270 | 149,225 | |
| Fidelity Securities Lending Cash Central Fund 0.10% (i)(j) | 609,401,215 | 609,462 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $758,683) | 758,687 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
| (Cost $17,341,305) | 47,600,742 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.3)% | (623,917) | ||
| NET ASSETS - 100% | $46,976,825 |
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 (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $990,373,000 or 2.1% of net assets.
(d) Level 3 security
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Affiliated company
(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 $399,190,000 or 0.8% of net assets.
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(i) 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.
(j) 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) |
| 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 |
| Akouos, Inc. Series B | 2/27/20 | $3,620 |
| Alignment Healthcare Partners unit | 2/28/20 | $10,550 |
| Allbirds, Inc. | 10/9/18 | $3,372 |
| 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 |
| Allbirds, Inc. Series D | 12/23/19 | $3,362 |
| Allbirds, Inc. Series Seed | 10/9/18 - 1/23/20 | $4,077 |
| 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 | $0 |
| Bird Rides, Inc. Series C | 12/21/18 | $4,091 |
| Bird Rides, Inc. Series D | 9/30/19 | $5,362 |
| Blink Health LLC Series C | 11/7/19 | $24,578 |
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $15,506 |
| Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $6,920 |
| Castle Creek Pharmaceutical Holdings, Inc. Series C | 12/9/19 | $5,395 |
| Cibus Corp. Series C | 2/16/18 | $9,500 |
| Cibus Corp. Series D | 5/10/19 | $3,426 |
| 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 |
| Dragonfly Therapeutics, Inc. | 12/19/19 | $12,746 |
| Element Biosciences, Inc. Series B | 12/13/19 | $5,745 |
| Generation Bio Series B | 2/21/18 | $7,607 |
| Generation Bio Series C | 1/9/20 | $3,942 |
| Harmony Biosciences II, Inc. Series A | 9/22/17 | $10,934 |
| Harmony Biosciences II, Inc. Series C | 8/9/19 | $3,985 |
| 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 |
| 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 A-8 | 1/20/16 | $18,851 |
| Nohla Therapeutics, Inc. Series B | 5/1/18 | $4,161 |
| Nuvation Bio, Inc. Series A | 6/17/19 | $10,062 |
| Oak Street Health LLC Series III-E | 2/21/20 | $8,085 |
| On Holding AG | 2/6/20 | $8,202 |
| Outset Medical, Inc. | 4/19/17 - 8/20/18 | $946 |
| Outset Medical, Inc. Series C | 4/19/17 | $2,216 |
| Outset Medical, Inc. Series D | 8/20/18 | $4,410 |
| Outset Medical, Inc. Series E | 1/27/20 | $3,635 |
| Paragon Biosciences Emalex Capital, Inc. Series B | 9/18/19 | $4,240 |
| Reddit, Inc. Series B | 7/26/17 | $5,456 |
| Riskified Ltd. | 12/20/19 - 4/15/20 | $6,506 |
| Riskified Ltd. Series E | 10/28/19 | $5,367 |
| Riskified Ltd. warrants | 10/28/19 | $0 |
| RPI International Holdings LP | 5/21/15 - 3/23/16 | $16,269 |
| Seer, Inc. Series D1 | 5/12/20 | $5,590 |
| Snowflake Computing, Inc. Class B | 3/19/20 | $1,261 |
| Sonder Holdings, Inc. Series D | 12/20/19 | $10,138 |
| Sonder Holdings, Inc. Series E | 4/3/20 - 5/6/20 | $15,917 |
| 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 C | 9/13/19 | $90 |
| Sweetgreen, Inc. Series D | 9/13/19 | $1,455 |
| Sweetgreen, Inc. Series H | 11/9/18 | $9,197 |
| Sweetgreen, Inc. Series I | 9/13/19 | $3,430 |
| 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 | $0 |
| UiPath, Inc. Series A1 | 6/14/19 | $7,701 |
| UiPath, Inc. Series B1 | 6/14/19 | $384 |
| UiPath, Inc. Series B2 | 6/14/19 | $1,911 |
| Waymo LLC Series A2 | 5/8/20 | $3,844 |
| 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 | $251 |
| Fidelity Securities Lending Cash Central Fund | 2,258 |
| Total | $2,509 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| ACADIA Pharmaceuticals, Inc. | $356,627 | $8,095 | $26,769 | $-- | $10,584 | $20,161 | $-- |
| Actua Corp. | 453 | -- | 11 | -- | 11 | (375) | -- |
| Akcea Therapeutics, Inc. | 101,194 | -- | 4,393 | -- | 916 | (24,145) | -- |
| Arlo Technologies, Inc. | 14,633 | -- | 7,904 | -- | (21,013) | 18,656 | -- |
| Axcella Health, Inc. | 3,821 | 5,151 | 173 | -- | 41 | 3,245 | 12,085 |
| Infinera Corp. | 79,794 | 2,426 | 3,231 | -- | 812 | (17,712) | 62,089 |
| Ionis Pharmaceuticals, Inc. | 528,346 | 27,165 | 25,514 | -- | 9,309 | (75,926) | 463,380 |
| Karuna Therapeutics, Inc. | 86,032 | 3,314 | 4,371 | -- | 3,669 | 52,145 | 145,051 |
| Karuna Therapeutics, Inc. | 24,967 | -- | -- | -- | -- | (20,705) | -- |
| Lexicon Pharmaceuticals, Inc. | 20,529 | -- | 2,101 | -- | (9,205) | 334 | -- |
| lululemon athletica, Inc. | 1,492,234 | 27,564 | 56,373 | -- | 52,357 | 427,270 | -- |
| Momenta Pharmaceuticals, Inc. | 100,894 | 27,945 | 6,664 | -- | 3,515 | 99,596 | 225,286 |
| OptiNose, Inc. | 24,547 | 870 | 702 | -- | (71) | (13,304) | 11,340 |
| Presbia PLC | 7 | -- | -- | -- | (140) | 155 | 22 |
| Rigel Pharmaceuticals, Inc. | 23,046 | -- | 1,091 | -- | (1,155) | (1,693) | 19,107 |
| Rubius Therapeutics, Inc. | 30,122 | 6,693 | 1,300 | -- | 210 | (6,100) | 29,625 |
| Sienna Biopharmaceuticals, Inc. | 336 | -- | 2 | -- | (188) | (117) | 29 |
| Silicon Laboratories, Inc. | 318,613 | 12,518 | 13,143 | -- | 6,114 | (42,899) | 281,203 |
| Syros Pharmaceuticals, Inc. | 6,242 | -- | 325 | -- | (25) | 5,633 | -- |
| Syros Pharmaceuticals, Inc. | 4,784 | -- | -- | -- | -- | 4,399 | -- |
| Translate Bio, Inc. | 30,813 | -- | 1,029 | -- | 326 | 30,992 | -- |
| UNITY Biotechnology, Inc. | 17,120 | 3,644 | 612 | -- | 3 | 1,847 | 22,002 |
| 3,265,154 | 125,385 | 155,708 | -- | 56,070 | 461,457 | 1,271,219 |
(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, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $5,246,416 | $5,192,118 | $51,592 | $2,706 |
| Consumer Discretionary | 10,002,235 | 9,478,105 | 386,205 | 137,925 |
| Consumer Staples | 1,165,665 | 1,106,863 | 2,314 | 56,488 |
| Energy | 255,920 | 255,920 | -- | -- |
| Financials | 573,648 | 538,300 | -- | 35,348 |
| Health Care | 8,983,085 | 8,502,007 | 95,351 | 385,727 |
| Industrials | 1,611,910 | 1,415,706 | -- | 196,204 |
| Information Technology | 18,756,880 | 18,626,075 | -- | 130,805 |
| Materials | 135,933 | 135,933 | -- | -- |
| Real Estate | 92,647 | 78,485 | -- | 14,162 |
| Preferred Securities | 17,716 | -- | -- | 17,716 |
| Money Market Funds | 758,687 | 758,687 | -- | -- |
| Total Investments in Securities: | $47,600,742 | $46,088,199 | $535,462 | $977,081 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| (Amounts in thousands) | |
| Investments in Securities: | |
| Beginning Balance | $991,561 |
| Net Realized Gain (Loss) on Investment Securities | 1,951 |
| Net Unrealized Gain (Loss) on Investment Securities | (97,293) |
| Cost of Purchases | 125,855 |
| Proceeds of Sales | (32,178) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | 24,749 |
| Transfers out of Level 3 | (37,564) |
| Ending Balance | $977,081 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $(97,293) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 88.7% |
| Canada | 4.8% |
| Cayman Islands | 2.4% |
| Germany | 1.1% |
| Others (Individually Less Than 1%) | 3.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | May 31, 2020 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $619,346) — See accompanying schedule: Unaffiliated issuers (cost $15,428,398) | $45,570,836 | |
| Fidelity Central Funds (cost $758,683) | 758,687 | |
| Other affiliated issuers (cost $1,154,224) | 1,271,219 | |
| Total Investment in Securities (cost $17,341,305) | $47,600,742 | |
| Cash | 464 | |
| Restricted cash | 1,654 | |
| Foreign currency held at value (cost $101) | 101 | |
| Receivable for investments sold | 76,340 | |
| Receivable for fund shares sold | 26,311 | |
| Dividends receivable | 20,388 | |
| Distributions receivable from Fidelity Central Funds | 338 | |
| Prepaid expenses | 10 | |
| Other receivables | 2,143 | |
| Total assets | 47,728,491 | |
| Liabilities | ||
| Payable for investments purchased | ||
| Regular delivery | $85,504 | |
| Delayed delivery | 5,031 | |
| Payable for fund shares redeemed | 18,698 | |
| Accrued management fee | 26,987 | |
| Other affiliated payables | 3,541 | |
| Other payables and accrued expenses | 2,500 | |
| Collateral on securities loaned | 609,405 | |
| Total liabilities | 751,666 | |
| Net Assets | $46,976,825 | |
| Net Assets consist of: | ||
| Paid in capital | $14,503,743 | |
| Total accumulated earnings (loss) | 32,473,082 | |
| Net Assets | $46,976,825 | |
| Net Asset Value and Maximum Offering Price | ||
| Growth Company: | ||
| Net Asset Value, offering price and redemption price per share ($32,115,569 ÷ 1,307,532 shares) | $24.56 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($14,861,256 ÷ 603,885 shares) | $24.61 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
| Investment Income | ||
| Dividends | $107,674 | |
| Income from Fidelity Central Funds (including $2,258 from security lending) | 2,509 | |
| Total income | 110,183 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $113,807 | |
| Performance adjustment | 39,310 | |
| Transfer agent fees | 20,253 | |
| Accounting fees | 1,119 | |
| Custodian fees and expenses | 281 | |
| Independent trustees' fees and expenses | 122 | |
| Registration fees | 176 | |
| Audit | 78 | |
| Legal | 43 | |
| Interest | 40 | |
| Miscellaneous | 313 | |
| Total expenses before reductions | 175,542 | |
| Expense reductions | (307) | |
| Total expenses after reductions | 175,235 | |
| Net investment income (loss) | (65,052) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 2,492,422 | |
| Fidelity Central Funds | 35 | |
| Other affiliated issuers | 56,070 | |
| Foreign currency transactions | (419) | |
| Total net realized gain (loss) | 2,548,108 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $1,881) | 4,325,451 | |
| Fidelity Central Funds | (5) | |
| Other affiliated issuers | 461,457 | |
| Assets and liabilities in foreign currencies | 44 | |
| Total change in net unrealized appreciation (depreciation) | 4,786,947 | |
| Net gain (loss) | 7,335,055 | |
| Net increase (decrease) in net assets resulting from operations | $7,270,003 |
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, 2020 (Unaudited) | Year ended November 30, 2019 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(65,052) | $(72,013) |
| Net realized gain (loss) | 2,548,108 | 4,402,258 |
| Change in net unrealized appreciation (depreciation) | 4,786,947 | 4,056,258 |
| Net increase (decrease) in net assets resulting from operations | 7,270,003 | 8,386,503 |
| Distributions to shareholders | (1,648,937) | (2,255,301) |
| Share transactions - net increase (decrease) | (2,276,704) | (3,581,880) |
| Total increase (decrease) in net assets | 3,344,362 | 2,549,322 |
| Net Assets | ||
| Beginning of period | 43,632,463 | 41,083,141 |
| End of period | $46,976,825 | $43,632,463 |
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, | |||||
| 2020 | 2019 | 2018 A | 2017 A | 2016 A | 2015 A | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $21.54 | $18.79 | $18.53 | $14.28 | $14.35 | $13.65 |
| Income from Investment Operations | ||||||
| Net investment income (loss)B | (.04) | (.04) | (.01)C | (.01) | .01 | – |
| Net realized and unrealized gain (loss) | 3.88 | 3.81 | 1.12 | 5.08 | .47 | 1.17 |
| Total from investment operations | 3.84 | 3.77 | 1.11 | 5.07 | .48 | 1.17 |
| Distributions from net investment income | – | – | – | (.01) | – | (.01) |
| Distributions from net realized gain | (.82) | (1.02) | (.85) | (.81) | (.55) | (.46) |
| Total distributions | (.82) | (1.02) | (.85) | (.82) | (.55) | (.47) |
| Net asset value, end of period | $24.56 | $21.54 | $18.79 | $18.53 | $14.28 | $14.35 |
| Total ReturnD,E | 18.37% | 22.05% | 6.19% | 37.34% | 3.48% | 8.90% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | .85%H | .83% | .85% | .85% | .77% | .88% |
| Expenses net of fee waivers, if any | .85%H | .83% | .85% | .85% | .77% | .87% |
| Expenses net of all reductions | .85%H | .83% | .85% | .85% | .77% | .87% |
| Net investment income (loss) | (.33)%H | (.20)% | (.07)%C | (.04)% | .07% | (.01)% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $32,116 | $28,861 | $25,615 | $25,256 | $21,114 | $23,513 |
| Portfolio turnover rateI | 14%H,J | 16%J | 18%J | 15%J | 19%J | 18%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, | |||||
| 2020 | 2019 | 2018 A | 2017 A | 2016 A | 2015 A | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $21.57 | $18.80 | $18.52 | $14.27 | $14.34 | $13.64 |
| Income from Investment Operations | ||||||
| Net investment income (loss)B | (.03) | (.02) | –C,D | .01 | .02 | .01 |
| Net realized and unrealized gain (loss) | 3.89 | 3.81 | 1.13 | 5.07 | .47 | 1.17 |
| Total from investment operations | 3.86 | 3.79 | 1.13 | 5.08 | .49 | 1.18 |
| Distributions from net investment income | – | – | –D | (.02) | (.01) | (.03) |
| Distributions from net realized gain | (.82) | (1.02) | (.85) | (.81) | (.55) | (.45) |
| Total distributions | (.82) | (1.02) | (.85) | (.83) | (.56) | (.48) |
| Net asset value, end of period | $24.61 | $21.57 | $18.80 | $18.52 | $14.27 | $14.34 |
| Total ReturnE,F | 18.44% | 22.15% | 6.28% | 37.47% | 3.59% | 9.01% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .77%I | .75% | .76% | .75% | .66% | .77% |
| Expenses net of fee waivers, if any | .77%I | .75% | .76% | .75% | .66% | .77% |
| Expenses net of all reductions | .77%I | .75% | .76% | .75% | .66% | .77% |
| Net investment income (loss) | (.25)%I | (.12)% | .02%C | .06% | .17% | .09% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $14,861 | $14,772 | $15,468 | $16,416 | $14,739 | $17,587 |
| Portfolio turnover rateJ | 14%I,K | 16%K | 18%K | 15%K | 19%K | 18%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, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Company Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth Company and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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 | $959,365 | Market approach | Transaction price | $1.25 - $220.00 / $131.49 | Increase |
| Discount rate | 6.0% | Decrease | |||
| Discount for lack of marketability | 10.0% | Decrease | |||
| Recovery value | Recovery value | 0.0% - 0.1% / 0.0% | Increase | ||
| Market comparable | Transaction price | $0.47 - $411.85 / $95.26 | Increase | ||
| Enterprise value/EBITDA multiple (EV/EBITDA) | 10.8 | Increase | |||
| Discount rate | 2.1% - 75.0% / 34.8% | Decrease | |||
| Enterprise value/Sales multiple (EV/S) | 1.0 - 21.2 / 6.0 | Increase | |||
| Discount for lack of marketability | 10.0% - 15.0% / 14.5% | Decrease | |||
| Premium rate | 2.0% - 233.2% / 84.8% | Increase | |||
| Liquidity preference | $2.84 - $142.52 / $31.46 | Increase | |||
| Conversion ratio | 1.3 - 3.0 / 2.6 | Increase | |||
| Discounted cash flow | Discount rate | 10.0% - 11.0% / 10.5% | Decrease | ||
| Growth rate | 3.5% | Increase | |||
| Probability rate | 6.3% | Increase | |||
| Preferred Securities | $17,716 | Market approach | Transaction price | $100.00 | Increase |
| Conversion ratio | 1.2 | 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, 2020, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. 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 $2,098 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded 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, partnerships, deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
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 | $31,546,944 |
| Gross unrealized depreciation | (1,449,196) |
| Net unrealized appreciation (depreciation) | $30,097,748 |
| Tax cost | $17,502,994 |
The Fund elected to defer to its next fiscal year approximately $61,170 of ordinary losses recognized during the period January 1, 2019 to November 30, 2019.
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 (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
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 $270,057 in these Subsidiaries, representing .57% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Growth Company Fund | 2,979,979 | 5,571,715 |
Unaffiliated Redemptions In-Kind. During the period, 69,722 shares of the Fund were redeemed in-kind for investments and cash with a value of $1,471,860. The net realized gain of $1,054,797 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, 149,484 shares of the Fund were redeemed in-kind for investments and cash with a value of $2,837,703. The Fund had a net realized gain of $2,012,389 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 LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged 23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .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 .72% 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 LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class 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. Effective February 1, 2020, the Board approved to change the fee for Class K from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets(a) | |
| Growth Company | $17,311 | .12 |
| Class K | 2,942 | .04 |
| $20,253 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| % of Average Net Assets | |
| Fidelity Growth Company Fund | .01 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Growth Company Fund | $134 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
| Fidelity Growth Company Fund | Borrower | $39,392 | 1.59% | $40 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 40,528 shares of the Fund were redeemed in-kind for investments and cash with a value of $789,114. The Fund had a net realized gain of $560,520 on investments delivered through the in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $198.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Amount | |
| Fidelity Growth Company Fund | $53 |
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, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower, at period end was $297. Total fees paid by the Fund to NFS, as lending agent, amounted to $218. 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 $47 from securities loaned to NFS, as affiliated borrower.
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 $217 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $3.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $87.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended May 31, 2020 | Year ended November 30, 2019 |
|
| Distributions to shareholders | ||
| Growth Company | $1,096,909 | $1,424,494 |
| Class K | 552,028 | 830,807 |
| Total | $1,648,937 | $2,255,301 |
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, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
| Growth Company | ||||
| Shares sold | 80,393 | 180,739 | $1,704,219 | $3,351,066 |
| Reinvestment of distributions | 46,565 | 83,397 | 1,001,606 | 1,317,674 |
| Shares redeemed | (159,387)(a) | (287,594)(b),(c) | (3,329,965)(a) | (5,449,107)(b),(c) |
| Net increase (decrease) | (32,429) | (23,458) | $(624,140) | $(780,367) |
| Class K | ||||
| Shares sold | 86,872 | 107,306 | $1,850,402 | $2,022,758 |
| Reinvestment of distributions | 25,606 | 52,532 | 551,818 | 830,534 |
| Shares redeemed | (193,403)(a) | (297,834)(b),(c) | (4,054,784)(a) | (5,654,805)(b),(c) |
| Net increase (decrease) | (80,925) | (137,996) | $(1,652,564) | $(2,801,513) |
(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 Affiliated 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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder 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, 2019 to May 31, 2020).
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, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 |
|
| Growth Company | .85% | |||
| Actual | $1,000.00 | $1,183.70 | $4.64 | |
| Hypothetical-C | $1,000.00 | $1,020.75 | $4.29 | |
| Class K | .77% | |||
| Actual | $1,000.00 | $1,184.40 | $4.20 | |
| Hypothetical-C | $1,000.00 | $1,021.15 | $3.89 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 LLC (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 2020 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 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 provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are 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 over the Internet and through telephone representatives, 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 ETFs with innovative structures, strategies and pricing 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 target date 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) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) 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, 2019, 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
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
GCF-SANN-0720
1.704741.122
Fidelity® New Millennium Fund®
Semi-Annual Report
May 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
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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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2020
| % of fund's net assets | |
| General Electric Co. | 3.9 |
| Comcast Corp. Class A | 2.5 |
| Bank of America Corp. | 2.4 |
| Exxon Mobil Corp. | 2.4 |
| Peloton Interactive, Inc. Class B | 2.3 |
| UnitedHealth Group, Inc. | 2.3 |
| Wells Fargo & Co. | 2.1 |
| Cisco Systems, Inc. | 1.9 |
| Visa, Inc. Class A | 1.9 |
| Hess Corp. | 1.7 |
| 23.4 |
Top Five Market Sectors as of May 31, 2020
| % of fund's net assets | |
| Financials | 16.7 |
| Health Care | 16.3 |
| Industrials | 13.4 |
| Consumer Discretionary | 12.1 |
| Information Technology | 11.8 |
Asset Allocation (% of fund's net assets)
| As of May 31, 2020 * | ||
| Stocks | 97.4% | |
| Convertible Securities | 1.0% | |
| Other Investments | 0.4% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.2% | |
* Foreign investments - 16.4%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.3% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 6.1% | |||
| Diversified Telecommunication Services - 2.1% | |||
| Cogent Communications Group, Inc. | 135,900 | $10,399 | |
| Verizon Communications, Inc. | 650,200 | 37,308 | |
| 47,707 | |||
| Entertainment - 0.4% | |||
| WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 3,929,314 | 8,055 | |
| Media - 2.7% | |||
| Comcast Corp. Class A | 1,414,200 | 56,002 | |
| Sinclair Broadcast Group, Inc. Class A (e) | 220,000 | 4,112 | |
| 60,114 | |||
| Wireless Telecommunication Services - 0.9% | |||
| T-Mobile U.S., Inc. (a) | 207,637 | 20,772 | |
| TOTAL COMMUNICATION SERVICES | 136,648 | ||
| CONSUMER DISCRETIONARY - 11.7% | |||
| Automobiles - 1.2% | |||
| Aston Martin Lagonda Global Holdings PLC (a)(e)(f) | 6,167,500 | 4,201 | |
| Fiat Chrysler Automobiles NV | 1,400,500 | 12,380 | |
| General Motors Co. | 421,300 | 10,903 | |
| 27,484 | |||
| Hotels, Restaurants & Leisure - 0.8% | |||
| Churchill Downs, Inc. | 61,100 | 8,106 | |
| Dunkin' Brands Group, Inc. | 143,900 | 9,191 | |
| 17,297 | |||
| Household Durables - 1.8% | |||
| D.R. Horton, Inc. | 328,700 | 18,177 | |
| Mohawk Industries, Inc. (a) | 82,300 | 7,670 | |
| NVR, Inc. (a) | 4,110 | 13,241 | |
| 39,088 | |||
| Internet & Direct Marketing Retail - 1.0% | |||
| GrubHub, Inc. (a)(e) | 137,200 | 7,785 | |
| The Booking Holdings, Inc. (a) | 8,500 | 13,935 | |
| 21,720 | |||
| Leisure Products - 2.8% | |||
| New Academy Holding Co. LLC unit (a)(c)(d)(g) | 66,000 | 2,072 | |
| Peloton Interactive, Inc.: | |||
| Class A (a) | 73,700 | 3,109 | |
| Class B | 1,222,216 | 51,565 | |
| Smith & Wesson Brands, Inc. (a) | 499,000 | 5,898 | |
| 62,644 | |||
| Specialty Retail - 2.3% | |||
| AutoZone, Inc. (a) | 10,700 | 12,282 | |
| Best Buy Co., Inc. | 124,200 | 9,699 | |
| National Vision Holdings, Inc. (a) | 338,700 | 9,070 | |
| TJX Companies, Inc. | 391,800 | 20,671 | |
| 51,722 | |||
| Textiles, Apparel & Luxury Goods - 1.8% | |||
| Allbirds, Inc. (a)(c)(d) | 22,235 | 197 | |
| Brunello Cucinelli SpA | 822,600 | 26,718 | |
| PVH Corp. | 120,000 | 5,456 | |
| Tapestry, Inc. | 374,300 | 5,090 | |
| Under Armour, Inc. Class A (sub. vtg.) (a) | 408,400 | 3,574 | |
| 41,035 | |||
| TOTAL CONSUMER DISCRETIONARY | 260,990 | ||
| CONSUMER STAPLES - 4.0% | |||
| Beverages - 0.5% | |||
| Diageo PLC sponsored ADR | 76,600 | 10,771 | |
| Food & Staples Retailing - 0.7% | |||
| Kroger Co. | 506,400 | 16,519 | |
| Food Products - 0.9% | |||
| Danone SA | 157,100 | 10,809 | |
| Greencore Group PLC | 5,431,161 | 9,075 | |
| 19,884 | |||
| Household Products - 0.7% | |||
| Reckitt Benckiser Group PLC | 170,400 | 15,262 | |
| Personal Products - 1.2% | |||
| Edgewell Personal Care Co. (a) | 332,300 | 10,109 | |
| Unilever NV | 329,600 | 17,033 | |
| 27,142 | |||
| TOTAL CONSUMER STAPLES | 89,578 | ||
| ENERGY - 9.7% | |||
| Energy Equipment & Services - 0.8% | |||
| Borr Drilling Ltd. (a)(e) | 816,640 | 504 | |
| Oceaneering International, Inc. (a) | 523,752 | 3,362 | |
| Odfjell Drilling Ltd. (a) | 3,992,224 | 4,049 | |
| Pacific Drilling SA (a)(e) | 394,783 | 161 | |
| Schlumberger Ltd. | 460,600 | 8,507 | |
| TechnipFMC PLC | 302,000 | 2,235 | |
| 18,818 | |||
| Oil, Gas & Consumable Fuels - 8.9% | |||
| BP PLC sponsored ADR | 616,573 | 14,267 | |
| Cabot Oil & Gas Corp. | 535,800 | 10,630 | |
| Cenovus Energy, Inc. (Canada) | 2,309,000 | 10,062 | |
| Cheniere Energy, Inc. (a) | 382,700 | 16,973 | |
| Energy Transfer Equity LP | 725,500 | 5,920 | |
| Exxon Mobil Corp. | 1,161,700 | 52,822 | |
| GasLog Ltd. (e) | 438,641 | 1,505 | |
| Golar LNG Ltd. (e) | 791,400 | 6,276 | |
| Hess Corp. | 787,900 | 37,402 | |
| Kosmos Energy Ltd. | 2,698,800 | 4,912 | |
| New Fortress Energy LLC (a) | 495,000 | 6,866 | |
| The Williams Companies, Inc. | 915,397 | 18,702 | |
| Valero Energy Corp. | 177,300 | 11,815 | |
| 198,152 | |||
| TOTAL ENERGY | 216,970 | ||
| FINANCIALS - 16.7% | |||
| Banks - 6.7% | |||
| Bank of America Corp. | 2,192,900 | 52,893 | |
| Comerica, Inc. | 176,400 | 6,412 | |
| HDFC Bank Ltd. sponsored ADR | 246,900 | 10,328 | |
| PNC Financial Services Group, Inc. | 223,200 | 25,454 | |
| Wells Fargo & Co. | 1,745,400 | 46,201 | |
| Wintrust Financial Corp. | 206,800 | 8,760 | |
| 150,048 | |||
| Capital Markets - 3.8% | |||
| Goldman Sachs Group, Inc. | 87,500 | 17,193 | |
| Morgan Stanley | 331,200 | 14,639 | |
| Northern Trust Corp. | 128,900 | 10,184 | |
| The NASDAQ OMX Group, Inc. | 167,100 | 19,795 | |
| TPG Specialty Lending, Inc. | 947,539 | 17,435 | |
| Virtu Financial, Inc. Class A | 243,495 | 5,807 | |
| 85,053 | |||
| Insurance - 4.8% | |||
| American International Group, Inc. | 1,036,100 | 31,145 | |
| Arch Capital Group Ltd. (a) | 642,800 | 18,140 | |
| Chubb Ltd. | 209,509 | 25,548 | |
| First American Financial Corp. | 130,200 | 6,574 | |
| Hiscox Ltd. | 663,207 | 6,064 | |
| MetLife, Inc. | 378,500 | 13,630 | |
| RenaissanceRe Holdings Ltd. | 34,200 | 5,741 | |
| 106,842 | |||
| Thrifts & Mortgage Finance - 1.4% | |||
| Housing Development Finance Corp. Ltd. | 350,368 | 7,688 | |
| Radian Group, Inc. | 1,514,423 | 24,049 | |
| 31,737 | |||
| TOTAL FINANCIALS | 373,680 | ||
| HEALTH CARE - 15.6% | |||
| Biotechnology - 1.8% | |||
| Amgen, Inc. | 99,900 | 22,947 | |
| Regeneron Pharmaceuticals, Inc. (a) | 17,800 | 10,908 | |
| Viela Bio, Inc. | 121,600 | 5,703 | |
| 39,558 | |||
| Health Care Equipment & Supplies - 3.7% | |||
| Becton, Dickinson & Co. | 95,800 | 23,656 | |
| Boston Scientific Corp. (a) | 635,200 | 24,131 | |
| Danaher Corp. | 117,500 | 19,577 | |
| Intuitive Surgical, Inc. (a) | 27,700 | 16,067 | |
| 83,431 | |||
| Health Care Providers & Services - 4.8% | |||
| Centene Corp. (a) | 394,300 | 26,122 | |
| Cigna Corp. | 110,700 | 21,843 | |
| UnitedHealth Group, Inc. | 167,000 | 50,910 | |
| Universal Health Services, Inc. Class B | 71,900 | 7,582 | |
| 106,457 | |||
| Life Sciences Tools & Services - 0.7% | |||
| Bruker Corp. | 359,022 | 15,538 | |
| Pharmaceuticals - 4.6% | |||
| Bristol-Myers Squibb Co. | 416,600 | 24,879 | |
| Eli Lilly & Co. | 185,800 | 28,418 | |
| Kala Pharmaceuticals, Inc. (a) | 353,451 | 4,351 | |
| Prestige Brands Holdings, Inc. (a) | 239,600 | 10,111 | |
| Roche Holding AG (participation certificate) | 61,770 | 21,442 | |
| Sanofi SA | 142,900 | 13,978 | |
| 103,179 | |||
| TOTAL HEALTH CARE | 348,163 | ||
| INDUSTRIALS - 13.3% | |||
| Aerospace & Defense - 4.2% | |||
| General Dynamics Corp. | 135,600 | 19,910 | |
| Huntington Ingalls Industries, Inc. | 126,700 | 25,326 | |
| Kratos Defense & Security Solutions, Inc. (a) | 556,300 | 10,319 | |
| Northrop Grumman Corp. | 75,500 | 25,308 | |
| Space Exploration Technologies Corp.: | |||
| Class A (a)(c)(d) | 58,589 | 12,890 | |
| Class C (a)(c)(d) | 818 | 180 | |
| 93,933 | |||
| Air Freight & Logistics - 0.4% | |||
| XPO Logistics, Inc. (a) | 111,700 | 8,803 | |
| Building Products - 0.4% | |||
| Fortune Brands Home & Security, Inc. | 146,600 | 8,937 | |
| Commercial Services & Supplies - 1.1% | |||
| IAA Spinco, Inc. (a) | 203,900 | 8,360 | |
| KAR Auction Services, Inc. | 225,000 | 3,229 | |
| Stericycle, Inc. (a) | 159,300 | 8,734 | |
| U.S. Ecology, Inc. | 142,656 | 4,803 | |
| 25,126 | |||
| Construction & Engineering - 0.7% | |||
| AECOM (a) | 267,700 | 10,379 | |
| Argan, Inc. | 175,800 | 6,503 | |
| 16,882 | |||
| Electrical Equipment - 0.3% | |||
| Melrose Industries PLC | 4,970,528 | 7,069 | |
| Industrial Conglomerates - 3.9% | |||
| General Electric Co. | 13,268,300 | 87,171 | |
| Machinery - 1.1% | |||
| Donaldson Co., Inc. | 230,100 | 10,918 | |
| Gardner Denver Holdings, Inc. (a) | 244,400 | 6,892 | |
| Pentair PLC | 148,600 | 5,816 | |
| 23,626 | |||
| Marine - 0.5% | |||
| Goodbulk Ltd. (a)(d) | 959,290 | 10,790 | |
| Road & Rail - 0.7% | |||
| Knight-Swift Transportation Holdings, Inc. Class A | 382,686 | 15,924 | |
| TOTAL INDUSTRIALS | 298,261 | ||
| INFORMATION TECHNOLOGY - 11.8% | |||
| Communications Equipment - 2.5% | |||
| Cisco Systems, Inc. | 908,400 | 43,440 | |
| Ericsson (B Shares) | 1,355,300 | 12,411 | |
| 55,851 | |||
| Electronic Equipment & Components - 1.9% | |||
| Amphenol Corp. Class A | 229,382 | 22,149 | |
| FLIR Systems, Inc. | 138,800 | 6,413 | |
| Keysight Technologies, Inc. (a) | 128,300 | 13,873 | |
| 42,435 | |||
| IT Services - 5.0% | |||
| Akamai Technologies, Inc. (a) | 200,700 | 21,234 | |
| Black Knight, Inc. (a) | 124,849 | 9,611 | |
| Euronet Worldwide, Inc. (a) | 61,000 | 5,779 | |
| Fidelity National Information Services, Inc. | 150,300 | 20,866 | |
| Fiserv, Inc. (a) | 1 | 0 | |
| Leidos Holdings, Inc. | 101,900 | 10,729 | |
| Visa, Inc. Class A | 220,800 | 43,109 | |
| 111,328 | |||
| Semiconductors & Semiconductor Equipment - 2.4% | |||
| Analog Devices, Inc. | 99,700 | 11,261 | |
| Lam Research Corp. | 31,900 | 8,730 | |
| NVIDIA Corp. | 98,200 | 34,863 | |
| 54,854 | |||
| TOTAL INFORMATION TECHNOLOGY | 264,468 | ||
| MATERIALS - 4.0% | |||
| Chemicals - 0.9% | |||
| LG Chemical Ltd. | 29,950 | 9,492 | |
| Nutrien Ltd. | 176,520 | 6,026 | |
| Olin Corp. | 328,500 | 3,952 | |
| 19,470 | |||
| Containers & Packaging - 0.8% | |||
| Avery Dennison Corp. | 63,300 | 7,005 | |
| O-I Glass, Inc. | 1,357,700 | 10,400 | |
| 17,405 | |||
| Metals & Mining - 2.3% | |||
| Franco-Nevada Corp. | 133,400 | 18,725 | |
| Newcrest Mining Ltd. | 431,628 | 8,746 | |
| Novagold Resources, Inc. (a) | 2,527,980 | 24,218 | |
| 51,689 | |||
| TOTAL MATERIALS | 88,564 | ||
| REAL ESTATE - 2.6% | |||
| Equity Real Estate Investment Trusts (REITs) - 2.6% | |||
| Cousins Properties, Inc. | 193,288 | 6,015 | |
| Gaming & Leisure Properties | 178,100 | 6,152 | |
| Healthcare Trust of America, Inc. | 244,500 | 6,472 | |
| Simon Property Group, Inc. | 85,200 | 4,916 | |
| Spirit Realty Capital, Inc. | 307,660 | 8,747 | |
| VEREIT, Inc. | 786,500 | 4,310 | |
| VICI Properties, Inc. | 1,100,400 | 21,595 | |
| 58,207 | |||
| UTILITIES - 1.8% | |||
| Electric Utilities - 1.8% | |||
| Duke Energy Corp. | 271,400 | 23,240 | |
| Southern Co. | 305,000 | 17,406 | |
| 40,646 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $2,076,769) | 2,176,175 | ||
| Preferred Stocks - 1.0% | |||
| Convertible Preferred Stocks - 0.9% | |||
| CONSUMER DISCRETIONARY - 0.3% | |||
| Textiles, Apparel & Luxury Goods - 0.3% | |||
| Allbirds, Inc.: | |||
| Series A (a)(c)(d) | 8,775 | 78 | |
| Series B (a)(c)(d) | 1,540 | 14 | |
| Series C (a)(c)(d) | 14,735 | 130 | |
| Series D (c)(d) | 28,273 | 250 | |
| Series Seed (a)(c)(d) | 41,664 | 368 | |
| Bolt Threads, Inc. Series D (a)(c)(d) | 390,327 | 6,183 | |
| 7,023 | |||
| CONSUMER STAPLES - 0.1% | |||
| Food & Staples Retailing - 0.1% | |||
| Sweetgreen, Inc.: | |||
| Series C (c)(d) | 1,587 | 24 | |
| Series D (c)(d) | 25,534 | 381 | |
| Series I (c)(d) | 60,179 | 899 | |
| 1,304 | |||
| HEALTH CARE - 0.4% | |||
| Health Care Equipment & Supplies - 0.4% | |||
| Butterfly Network, Inc. Series D (a)(c)(d) | 658,083 | 9,621 | |
| INDUSTRIALS - 0.1% | |||
| Aerospace & Defense - 0.1% | |||
| Space Exploration Technologies Corp. Series H (a)(c)(d) | 7,570 | 1,665 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | 19,613 | ||
| Nonconvertible Preferred Stocks - 0.1% | |||
| HEALTH CARE - 0.1% | |||
| Health Care Providers & Services - 0.1% | |||
| Oak Street Health LLC Series III-E (b)(c)(d) | 18,409 | 3,695 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $19,467) | 23,308 | ||
| Principal Amount (000s) | Value (000s) | ||
| Corporate Bonds - 0.1% | |||
| Convertible Bonds - 0.1% | |||
| CONSUMER DISCRETIONARY - 0.1% | |||
| Textiles, Apparel & Luxury Goods - 0.1% | |||
| Bolt Threads, Inc. 3% 2/7/23 (c)(d) | 2,915 | 2,915 | |
| Nonconvertible Bonds - 0.0% | |||
| ENERGY - 0.0% | |||
| Energy Equipment & Services - 0.0% | |||
| Pacific Drilling SA 12% 4/1/24 pay-in-kind (f)(h) | 214 | 2 | |
| TOTAL CORPORATE BONDS | |||
| (Cost $3,132) | 2,917 | ||
| Preferred Securities - 0.2% | |||
| HEALTH CARE - 0.2% | |||
| Health Care Equipment & Supplies - 0.2% | |||
| Butterfly Network, Inc. 5% 5/21/22 (Cost $4,032)(c)(d) | 4,032 | 4,032 | |
| 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 | 3,847 | |
| Money Market Funds - 0.9% | |||
| Fidelity Securities Lending Cash Central Fund 0.10% (i)(j) | |||
| (Cost $19,342) | 19,340,060 | 19,342 | |
| TOTAL INVESTMENT IN SECURITIES - 99.7% | |||
| (Cost $2,131,110) | 2,229,621 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.3% | 6,242 | ||
| NET ASSETS - 100% | $2,235,863 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(c) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $57,495,000 or 2.6% of net assets.
(d) Level 3 security
(e) Security or a portion of the security is on loan at period end.
(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 $4,203,000 or 0.2% of net assets.
(g) 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.
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(i) 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.
(j) 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. Series A | 10/9/18 | $96 |
| Allbirds, Inc. Series B | 10/9/18 | $17 |
| Allbirds, Inc. Series C | 10/9/18 | $162 |
| Allbirds, Inc. Series D | 12/23/19 | $364 |
| Allbirds, Inc. Series Seed | 10/9/18 - 1/23/20 | $416 |
| Bolt Threads, Inc. Series D | 12/13/17 | $6,261 |
| Bolt Threads, Inc. 3% 2/7/23 | 2/7/20 | $2,915 |
| Butterfly Network, Inc. Series D | 5/4/18 | $6,759 |
| Butterfly Network, Inc. 5% 5/21/22 | 5/19/20 | $4,032 |
| New Academy Holding Co. LLC unit | 8/1/11 | $6,956 |
| Oak Street Health LLC Series III-E | 2/21/20 | $2,877 |
| 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 |
| Sweetgreen, Inc. Series C | 9/13/19 | $27 |
| Sweetgreen, Inc. Series D | 9/13/19 | $437 |
| Sweetgreen, Inc. Series I | 9/13/19 | $1,029 |
| 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 | $160 |
| Fidelity Securities Lending Cash Central Fund | 340 |
| Total | $500 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $136,648 | $128,593 | $-- | $8,055 |
| Consumer Discretionary | 268,013 | 258,721 | -- | 9,292 |
| Consumer Staples | 90,882 | 46,474 | 43,104 | 1,304 |
| Energy | 216,970 | 216,970 | -- | -- |
| Financials | 373,680 | 373,680 | -- | -- |
| Health Care | 361,479 | 312,743 | 35,420 | 13,316 |
| Industrials | 299,926 | 274,401 | -- | 25,525 |
| Information Technology | 264,468 | 252,057 | 12,411 | -- |
| Materials | 88,564 | 79,818 | 8,746 | -- |
| Real Estate | 58,207 | 58,207 | -- | -- |
| Utilities | 40,646 | 40,646 | -- | -- |
| Corporate Bonds | 2,917 | -- | 2 | 2,915 |
| Preferred Securities | 4,032 | -- | -- | 4,032 |
| Other | 3,847 | -- | -- | 3,847 |
| Money Market Funds | 19,342 | 19,342 | -- | -- |
| Total Investments in Securities: | $2,229,621 | $2,061,652 | $99,683 | $68,286 |
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 - Industrials | |
| Beginning Balance | $28,378 |
| Net Realized Gain (Loss) on Investment Securities | -- |
| Net Unrealized Gain (Loss) on Investment Securities | (2,853) |
| Cost of Purchases | -- |
| Proceeds of Sales | -- |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $25,525 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $(2,853) |
| Other Investments in Securities | |
| Beginning Balance | $33,808 |
| Net Realized Gain (Loss) on Investment Securities | (6,272) |
| Net Unrealized Gain (Loss) on Investment Securities | 4,661 |
| Cost of Purchases | 10,564 |
| Proceeds of Sales | -- |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $42,761 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $(1,611) |
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 | 83.6% |
| Canada | 2.6% |
| Bermuda | 2.5% |
| United Kingdom | 2.4% |
| Switzerland | 2.1% |
| Netherlands | 1.3% |
| Italy | 1.2% |
| France | 1.1% |
| Others (Individually Less Than 1%) | 3.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amount) | May 31, 2020 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $18,710) — See accompanying schedule: Unaffiliated issuers (cost $2,111,768) | $2,210,279 | |
| Fidelity Central Funds (cost $19,342) | 19,342 | |
| Total Investment in Securities (cost $2,131,110) | $2,229,621 | |
| Restricted cash | 338 | |
| Receivable for investments sold | 28,361 | |
| Receivable for fund shares sold | 256 | |
| Dividends receivable | 5,273 | |
| Interest receivable | 36 | |
| Distributions receivable from Fidelity Central Funds | 37 | |
| Prepaid expenses | 1 | |
| Other receivables | 11 | |
| Total assets | 2,263,934 | |
| Liabilities | ||
| Payable to custodian bank | $919 | |
| Payable for investments purchased | 4,814 | |
| Payable for fund shares redeemed | 2,158 | |
| Accrued management fee | 446 | |
| Other affiliated payables | 317 | |
| Other payables and accrued expenses | 85 | |
| Collateral on securities loaned | 19,332 | |
| Total liabilities | 28,071 | |
| Net Assets | $2,235,863 | |
| Net Assets consist of: | ||
| Paid in capital | $2,072,153 | |
| Total accumulated earnings (loss) | 163,710 | |
| Net Assets | $2,235,863 | |
| Net Asset Value, offering price and redemption price per share ($2,235,863 ÷ 70,842 shares) | $31.56 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
| Investment Income | ||
| Dividends | $26,452 | |
| Interest | 40 | |
| Income from Fidelity Central Funds (including $340 from security lending) | 500 | |
| Total income | 26,992 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $6,796 | |
| Performance adjustment | (3,116) | |
| Transfer agent fees | 1,771 | |
| Accounting fees | 379 | |
| Custodian fees and expenses | 29 | |
| Independent trustees' fees and expenses | 8 | |
| Registration fees | 17 | |
| Audit | 40 | |
| Legal | 3 | |
| Interest | 1 | |
| Miscellaneous | 34 | |
| Total expenses before reductions | 5,962 | |
| Expense reductions | (17) | |
| Total expenses after reductions | 5,945 | |
| Net investment income (loss) | 21,047 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 50,581 | |
| Fidelity Central Funds | 6 | |
| Foreign currency transactions | (79) | |
| Total net realized gain (loss) | 50,508 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $71) | (493,398) | |
| Fidelity Central Funds | (1) | |
| Assets and liabilities in foreign currencies | 10 | |
| Total change in net unrealized appreciation (depreciation) | (493,389) | |
| Net gain (loss) | (442,881) | |
| Net increase (decrease) in net assets resulting from operations | $(421,834) |
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, 2020 (Unaudited) | Year ended November 30, 2019 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $21,047 | $51,461 |
| Net realized gain (loss) | 50,508 | 85,099 |
| Change in net unrealized appreciation (depreciation) | (493,389) | 218,863 |
| Net increase (decrease) in net assets resulting from operations | (421,834) | 355,423 |
| Distributions to shareholders | (127,086) | (456,326) |
| Share transactions | ||
| Proceeds from sales of shares | 44,910 | 137,673 |
| Reinvestment of distributions | 120,701 | 434,841 |
| Cost of shares redeemed | (371,787) | (686,694) |
| Net increase (decrease) in net assets resulting from share transactions | (206,176) | (114,180) |
| Total increase (decrease) in net assets | (755,096) | (215,083) |
| Net Assets | ||
| Beginning of period | 2,990,959 | 3,206,042 |
| End of period | $2,235,863 | $2,990,959 |
| Other Information | ||
| Shares | ||
| Sold | 1,390 | 3,922 |
| Issued in reinvestment of distributions | 3,211 | 14,115 |
| Redeemed | (11,590) | (19,320) |
| Net increase (decrease) | (6,989) | (1,283) |
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, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $38.43 | $40.52 | $42.70 | $37.56 | $38.99 | $42.10 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .28 | .62 | .43 | .38 | .43 | .39 |
| Net realized and unrealized gain (loss) | (5.50) | 3.11 | .87 | 7.01 | 2.31 | (.46) |
| Total from investment operations | (5.22) | 3.73 | 1.30 | 7.39 | 2.74 | (.07) |
| Distributions from net investment income | (.36) | (.39) | (.36) | (.43) | (.35) | (.28) |
| Distributions from net realized gain | (1.29) | (5.43) | (3.12) | (1.82) | (3.82) | (2.76) |
| Total distributions | (1.65) | (5.82) | (3.48) | (2.25) | (4.17) | (3.04) |
| Net asset value, end of period | $31.56 | $38.43 | $40.52 | $42.70 | $37.56 | $38.99 |
| Total ReturnB,C | (14.27)% | 12.82% | 3.19% | 20.69% | 8.57% | .08% |
| Ratios to Average Net AssetsD,E | ||||||
| Expenses before reductions | .47%F | .61% | .64% | .54% | .57% | .72% |
| Expenses net of fee waivers, if any | .47%F | .61% | .64% | .54% | .57% | .72% |
| Expenses net of all reductions | .47%F | .61% | .63% | .54% | .57% | .71% |
| Net investment income (loss) | 1.65%F | 1.72% | 1.03% | .98% | 1.25% | 1.00% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $2,236 | $2,991 | $3,206 | $3,288 | $3,045 | $3,313 |
| Portfolio turnover rateG | 33%F | 34% | 37% | 31% | 44% | 57% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
(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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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 | $57,492 | Market approach | Transaction price | $220.00 | Increase |
| Discount rate | 0.1% | Decrease | |||
| Market comparable | Discount rate | 3.7% - 6.4% / 5.7% | Decrease | ||
| Enterprise value/Sales multiple (EV/S) | 2.9 - 16.8 / 11.1 | Increase | |||
| Discount for lack of marketability | 10.0% | Decrease | |||
| Premium rate | 12.3% - 94.7% / 49.8% | Increase | |||
| Discounted cash flow | Weighted average cost of capital (WACC) | 13.0% | Increase | ||
| Growth rate | 1.0% | Increase | |||
| Corporate Bonds | $2,915 | Market approach | Transaction price | $100.00 | Increase |
| Other | $3,847 | Discounted cash flow | Discount rate | 17.2% | Decrease |
| Preferred Securities | $4,032 | 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, 2020, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, market discount 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 | $478,797 |
| Gross unrealized depreciation | (383,853) |
| Net unrealized appreciation (depreciation) | $94,944 |
| Tax cost | $2,135,223 |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $15,935 in these Subsidiaries, representing .71% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity New Millennium Fund | 416,126 | 696,677 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment up to a maximum of +/-.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 .29% 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 LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .14% of average net assets.
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| % of Average Net Assets | |
| Fidelity New Millennium Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity New Millennium Fund | $16 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
| Fidelity New Millennium Fund | Borrower | $9,186 | 1.80% | $1 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Amount | |
| Fidelity New Millennium Fund | $3 |
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, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $15. 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 $4 from securities loaned to NFS, as affiliated borrower.
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 $7 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $4.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $6.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder 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, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 |
|
| Actual | .47% | $1,000.00 | $857.30 | $2.18 |
| Hypothetical-C | $1,000.00 | $1,022.65 | $2.38 |
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 183/366 (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 LLC (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.Approval of Amended and Restated Advisory Contracts. At its November 2019 meeting, the Board unanimously determined to approve an amended and restated management contract and sub-advisory agreements (Amended and Restated Contracts) for a stub period of January 1, 2020 through January 31, 2020 in connection with a consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, FMR Co., Inc. (FMRC) expected to merge with and into FMR and, after the merger, FMR expected to redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile and considered that the definition of "group assets" for purposes of the fund's group fee would be modified to avoid double-counting assets once the reorganization is complete. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees paid by the fund.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 2020 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 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 provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are 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 over the Internet and through telephone representatives, 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 ETFs with innovative structures, strategies and pricing 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 target date 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) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) 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, 2019, 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.
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
NMF-SANN-0720
1.704547.122
Fidelity® Growth Strategies Fund
Semi-Annual Report
May 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
|
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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2020
| % of fund's net assets | |
| Global Payments, Inc. | 4.5 |
| VeriSign, Inc. | 3.1 |
| Dollar General Corp. | 2.7 |
| ResMed, Inc. | 2.7 |
| Fiserv, Inc. | 2.5 |
| DexCom, Inc. | 2.5 |
| Centene Corp. | 2.5 |
| SBA Communications Corp. Class A | 2.3 |
| MSCI, Inc. | 2.3 |
| Lam Research Corp. | 2.1 |
| 27.2 |
Top Five Market Sectors as of May 31, 2020
| % of fund's net assets | |
| Information Technology | 40.4 |
| Health Care | 16.6 |
| Industrials | 13.5 |
| Consumer Discretionary | 10.1 |
| Financials | 7.0 |
Asset Allocation (% of fund's net assets)
| As of May 31, 2020* | ||
| Stocks | 98.4% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.6% | |
* Foreign investments – 2.3%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.4% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 2.6% | |||
| Entertainment - 2.6% | |||
| Electronic Arts, Inc. (a) | 234,283 | $28,789 | |
| Take-Two Interactive Software, Inc. (a) | 384,400 | 52,344 | |
| 81,133 | |||
| CONSUMER DISCRETIONARY - 10.1% | |||
| Distributors - 1.0% | |||
| Pool Corp. | 120,900 | 32,525 | |
| Diversified Consumer Services - 0.8% | |||
| Service Corp. International | 600,000 | 23,658 | |
| Hotels, Restaurants & Leisure - 0.7% | |||
| Domino's Pizza, Inc. | 55,900 | 21,568 | |
| Household Durables - 1.5% | |||
| D.R. Horton, Inc. | 120,000 | 6,636 | |
| Lennar Corp. Class A | 66,100 | 3,996 | |
| NVR, Inc. (a) | 10,647 | 34,300 | |
| 44,932 | |||
| Internet & Direct Marketing Retail - 1.3% | |||
| eBay, Inc. | 565,300 | 25,744 | |
| Expedia, Inc. | 187,200 | 14,879 | |
| 40,623 | |||
| Multiline Retail - 2.7% | |||
| Dollar General Corp. | 441,000 | 84,456 | |
| Specialty Retail - 1.6% | |||
| AutoZone, Inc. (a) | 44,500 | 51,080 | |
| Textiles, Apparel & Luxury Goods - 0.5% | |||
| Carter's, Inc. | 169,000 | 14,519 | |
| TOTAL CONSUMER DISCRETIONARY | 313,361 | ||
| CONSUMER STAPLES - 3.9% | |||
| Beverages - 0.9% | |||
| Brown-Forman Corp. Class B (non-vtg.) | 409,495 | 26,998 | |
| Food & Staples Retailing - 0.0% | |||
| Grocery Outlet Holding Corp. | 20,000 | 736 | |
| Food Products - 0.9% | |||
| The Hershey Co. | 213,000 | 28,900 | |
| Household Products - 1.6% | |||
| Church & Dwight Co., Inc. | 447,000 | 33,556 | |
| Reynolds Consumer Products, Inc. | 460,000 | 15,359 | |
| 48,915 | |||
| Personal Products - 0.5% | |||
| BellRing Brands, Inc. Class A (a) | 370,000 | 7,430 | |
| Estee Lauder Companies, Inc. Class A | 32,728 | 6,463 | |
| 13,893 | |||
| TOTAL CONSUMER STAPLES | 119,442 | ||
| FINANCIALS - 7.0% | |||
| Capital Markets - 5.0% | |||
| MarketAxess Holdings, Inc. | 89,900 | 45,722 | |
| Moody's Corp. | 83,000 | 22,195 | |
| MSCI, Inc. | 210,600 | 69,256 | |
| S&P Global, Inc. | 46,300 | 15,048 | |
| Tradeweb Markets, Inc. Class A | 14,418 | 951 | |
| 153,172 | |||
| Insurance - 2.0% | |||
| Allstate Corp. | 107,600 | 10,524 | |
| Arthur J. Gallagher & Co. | 169,126 | 15,945 | |
| Primerica, Inc. | 153,100 | 17,398 | |
| Progressive Corp. | 132,120 | 10,263 | |
| RenaissanceRe Holdings Ltd. | 54,870 | 9,210 | |
| 63,340 | |||
| TOTAL FINANCIALS | 216,512 | ||
| HEALTH CARE - 16.6% | |||
| Health Care Equipment & Supplies - 9.6% | |||
| DexCom, Inc. (a) | 202,100 | 76,456 | |
| Edwards Lifesciences Corp. (a) | 55,000 | 12,360 | |
| Intuitive Surgical, Inc. (a) | 17,300 | 10,035 | |
| Masimo Corp. (a) | 163,242 | 39,209 | |
| Quidel Corp. (a) | 89,100 | 15,593 | |
| ResMed, Inc. | 520,000 | 83,626 | |
| Teleflex, Inc. | 36,327 | 13,182 | |
| The Cooper Companies, Inc. | 13,300 | 4,216 | |
| West Pharmaceutical Services, Inc. | 187,202 | 40,443 | |
| 295,120 | |||
| Health Care Providers & Services - 2.5% | |||
| Centene Corp. (a) | 1,151,707 | 76,301 | |
| Health Care Technology - 1.6% | |||
| Veeva Systems, Inc. Class A (a) | 223,071 | 48,824 | |
| Life Sciences Tools & Services - 2.9% | |||
| Charles River Laboratories International, Inc. (a) | 232,903 | 41,843 | |
| Mettler-Toledo International, Inc. (a) | 61,500 | 48,893 | |
| 90,736 | |||
| TOTAL HEALTH CARE | 510,981 | ||
| INDUSTRIALS - 13.5% | |||
| Aerospace & Defense - 3.1% | |||
| Harris Corp. | 80,000 | 15,956 | |
| HEICO Corp. Class A | 202,328 | 16,985 | |
| Huntington Ingalls Industries, Inc. | 104,000 | 20,789 | |
| TransDigm Group, Inc. | 96,344 | 40,929 | |
| 94,659 | |||
| Air Freight & Logistics - 0.3% | |||
| C.H. Robinson Worldwide, Inc. | 131,100 | 10,636 | |
| Airlines - 0.6% | |||
| Southwest Airlines Co. | 562,100 | 18,043 | |
| Commercial Services & Supplies - 2.8% | |||
| Cintas Corp. | 194,000 | 48,104 | |
| Copart, Inc. (a) | 420,000 | 37,544 | |
| 85,648 | |||
| Electrical Equipment - 1.9% | |||
| AMETEK, Inc. | 330,479 | 30,308 | |
| Rockwell Automation, Inc. | 138,800 | 30,003 | |
| 60,311 | |||
| Industrial Conglomerates - 0.6% | |||
| Roper Technologies, Inc. | 43,800 | 17,248 | |
| Machinery - 2.3% | |||
| IDEX Corp. | 144,972 | 23,104 | |
| ITT, Inc. | 263,000 | 15,175 | |
| Nordson Corp. | 16,470 | 3,102 | |
| Otis Worldwide Corp. | 138,706 | 7,303 | |
| Toro Co. (b) | 319,292 | 22,692 | |
| 71,376 | |||
| Professional Services - 1.7% | |||
| CoStar Group, Inc. (a) | 30,000 | 19,704 | |
| Verisk Analytics, Inc. | 190,000 | 32,809 | |
| 52,513 | |||
| Road & Rail - 0.2% | |||
| Old Dominion Freight Lines, Inc. | 36,200 | 6,193 | |
| TOTAL INDUSTRIALS | 416,627 | ||
| INFORMATION TECHNOLOGY - 40.4% | |||
| Electronic Equipment & Components - 5.2% | |||
| Amphenol Corp. Class A | 440,000 | 42,486 | |
| CDW Corp. | 300,900 | 33,373 | |
| Keysight Technologies, Inc. (a) | 493,100 | 53,319 | |
| Zebra Technologies Corp. Class A (a) | 123,000 | 32,142 | |
| 161,320 | |||
| IT Services - 14.7% | |||
| Adyen BV (a)(c) | 1,394 | 1,831 | |
| Black Knight, Inc. (a) | 245,000 | 18,860 | |
| Booz Allen Hamilton Holding Corp. Class A | 518,000 | 41,316 | |
| CACI International, Inc. Class A (a) | 112,300 | 28,163 | |
| EPAM Systems, Inc. (a) | 177,200 | 40,869 | |
| Fidelity National Information Services, Inc. | 94,800 | 13,161 | |
| Fiserv, Inc. (a) | 734,700 | 78,444 | |
| Global Payments, Inc. | 766,902 | 137,652 | |
| VeriSign, Inc. (a) | 429,000 | 93,955 | |
| 454,251 | |||
| Semiconductors & Semiconductor Equipment - 7.4% | |||
| Analog Devices, Inc. | 123,159 | 13,911 | |
| Broadcom, Inc. | 26,000 | 7,573 | |
| Cirrus Logic, Inc. (a) | 345,000 | 25,006 | |
| Entegris, Inc. | 501,000 | 30,000 | |
| KLA-Tencor Corp. | 349,100 | 61,428 | |
| Lam Research Corp. | 241,000 | 65,954 | |
| NXP Semiconductors NV | 117,500 | 11,292 | |
| Skyworks Solutions, Inc. | 98,800 | 11,712 | |
| 226,876 | |||
| Software - 13.1% | |||
| Adobe, Inc. (a) | 35,000 | 13,531 | |
| ANSYS, Inc. (a) | 165,600 | 46,865 | |
| Atlassian Corp. PLC (a) | 246,600 | 45,695 | |
| Cadence Design Systems, Inc. (a) | 597,336 | 54,531 | |
| Fortinet, Inc. (a) | 452,300 | 62,960 | |
| Intuit, Inc. | 34,000 | 9,871 | |
| Paycom Software, Inc. (a) | 125,000 | 37,154 | |
| RingCentral, Inc. (a) | 191,600 | 52,546 | |
| Slack Technologies, Inc. Class A (a)(b) | 400,000 | 14,020 | |
| Synopsys, Inc. (a) | 161,061 | 29,138 | |
| The Trade Desk, Inc. (a)(b) | 97,644 | 30,422 | |
| Tyler Technologies, Inc. (a) | 19,600 | 7,356 | |
| 404,089 | |||
| TOTAL INFORMATION TECHNOLOGY | 1,246,536 | ||
| MATERIALS - 0.4% | |||
| Chemicals - 0.4% | |||
| Sherwin-Williams Co. | 19,012 | 11,290 | |
| REAL ESTATE - 3.9% | |||
| Equity Real Estate Investment Trusts (REITs) - 3.9% | |||
| CoreSite Realty Corp. | 117,265 | 14,637 | |
| Equity Lifestyle Properties, Inc. | 540,200 | 33,654 | |
| SBA Communications Corp. Class A | 232,200 | 72,941 | |
| 121,232 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $1,952,376) | 3,037,114 | ||
| Money Market Funds - 2.9% | |||
| Fidelity Cash Central Fund 0.11% (d) | 52,870,467 | 52,881 | |
| Fidelity Securities Lending Cash Central Fund 0.10% (d)(e) | 36,308,624 | 36,312 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $89,191) | 89,193 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
| (Cost $2,041,567) | 3,126,307 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.3)% | (38,825) | ||
| NET ASSETS - 100% | $3,087,482 |
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 $1,831,000 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 |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $289 |
| Fidelity Securities Lending Cash Central Fund | 30 |
| Total | $319 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $81,133 | $81,133 | $-- | $-- |
| Consumer Discretionary | 313,361 | 313,361 | -- | -- |
| Consumer Staples | 119,442 | 119,442 | -- | -- |
| Financials | 216,512 | 216,512 | -- | -- |
| Health Care | 510,981 | 510,981 | -- | -- |
| Industrials | 416,627 | 416,627 | -- | -- |
| Information Technology | 1,246,536 | 1,246,536 | -- | -- |
| Materials | 11,290 | 11,290 | -- | -- |
| Real Estate | 121,232 | 121,232 | -- | -- |
| Money Market Funds | 89,193 | 89,193 | -- | -- |
| Total Investments in Securities: | $3,126,307 | $3,126,307 | $-- | $-- |
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, 2020 (Unaudited) | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $37,281) — See accompanying schedule: Unaffiliated issuers (cost $1,952,376) | $3,037,114 | |
| Fidelity Central Funds (cost $89,191) | 89,193 | |
| Total Investment in Securities (cost $2,041,567) | $3,126,307 | |
| Receivable for investments sold | 44,138 | |
| Receivable for fund shares sold | 1,432 | |
| Dividends receivable | 1,543 | |
| Distributions receivable from Fidelity Central Funds | 10 | |
| Prepaid expenses | 1 | |
| Other receivables | 51 | |
| Total assets | 3,173,482 | |
| Liabilities | ||
| Payable for investments purchased | $46,843 | |
| Payable for fund shares redeemed | 1,222 | |
| Accrued management fee | 1,063 | |
| Other affiliated payables | 439 | |
| Other payables and accrued expenses | 122 | |
| Collateral on securities loaned | 36,311 | |
| Total liabilities | 86,000 | |
| Net Assets | $3,087,482 | |
| Net Assets consist of: | ||
| Paid in capital | $2,072,205 | |
| Total accumulated earnings (loss) | 1,015,277 | |
| Net Assets | $3,087,482 | |
| Net Asset Value and Maximum Offering Price | ||
| Growth Strategies: | ||
| Net Asset Value, offering price and redemption price per share ($2,857,883 ÷ 55,771.3 shares) | $51.24 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($229,599 ÷ 4,446.5 shares) | $51.64 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended May 31, 2020 (Unaudited) | |
| Investment Income | ||
| Dividends | $12,539 | |
| Income from Fidelity Central Funds (including $30 from security lending) | 319 | |
| Total income | 12,858 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $7,917 | |
| Performance adjustment | (1,395) | |
| Transfer agent fees | 2,270 | |
| Accounting fees | 437 | |
| Custodian fees and expenses | 20 | |
| Independent trustees' fees and expenses | 9 | |
| Registration fees | 47 | |
| Audit | 45 | |
| Legal | 5 | |
| Miscellaneous | 45 | |
| Total expenses before reductions | 9,400 | |
| Expense reductions | (37) | |
| Total expenses after reductions | 9,363 | |
| Net investment income (loss) | 3,495 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (68,377) | |
| Fidelity Central Funds | (1) | |
| Total net realized gain (loss) | (68,378) | |
| Change in net unrealized appreciation (depreciation) on investment securities | 173,816 | |
| Net gain (loss) | 105,438 | |
| Net increase (decrease) in net assets resulting from operations | $108,933 |
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, 2020 (Unaudited) | Year ended November 30, 2019 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $3,495 | $18,494 |
| Net realized gain (loss) | (68,378) | 98,489 |
| Change in net unrealized appreciation (depreciation) | 173,816 | 447,605 |
| Net increase (decrease) in net assets resulting from operations | 108,933 | 564,588 |
| Distributions to shareholders | (107,380) | (21,246) |
| Share transactions - net increase (decrease) | (9,960) | (1,626) |
| Total increase (decrease) in net assets | (8,407) | 541,716 |
| Net Assets | ||
| Beginning of period | 3,095,889 | 2,554,173 |
| End of period | $3,087,482 | $3,095,889 |
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, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $50.98 | $41.90 | $40.96 | $33.87 | $33.91 | $32.44 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .05 | .30 | .25B | .16C | .16D | .04 |
| Net realized and unrealized gain (loss) | 1.97 | 9.13 | .87 | 7.13 | (.16) | 1.53 |
| Total from investment operations | 2.02 | 9.43 | 1.12 | 7.29 | – | 1.57 |
| Distributions from net investment income | (.22) | (.28) | (.16) | (.18) | (.04) | (.09) |
| Distributions from net realized gain | (1.55) | (.06) | (.02) | (.02) | – | (.01) |
| Total distributions | (1.76)E | (.35)F | (.18) | (.20) | (.04) | (.10) |
| Redemption fees added to paid in capitalA | – | – | – | –G | –G | –G |
| Net asset value, end of period | $51.24 | $50.98 | $41.90 | $40.96 | $33.87 | $33.91 |
| Total ReturnH,I | 4.04% | 22.76% | 2.74% | 21.63% | .02% | 4.86% |
| Ratios to Average Net AssetsJ,K | ||||||
| Expenses before reductions | .64%L | .56% | .59% | .78% | .94% | .91% |
| Expenses net of fee waivers, if any | .64%L | .56% | .59% | .78% | .94% | .91% |
| Expenses net of all reductions | .64%L | .55% | .59% | .78% | .94% | .91% |
| Net investment income (loss) | .23%L | .67% | .59%B | .43%C | .49%D | .13% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $2,858 | $2,860 | $2,349 | $2,455 | $2,080 | $2,535 |
| Portfolio turnover rateM | 59%L | 66%N | 43%N | 73%N | 63% | 40% |
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 Total distributions of $1.76 per share is comprised of distributions from net investment income of $.219 and distributions from net realized gain of $1.545 per share.
F Total distributions of $.35 per share is comprised of distributions from net investment income of $.284 and distributions from net realized gain of $.063 per share.
G Amount represents less than $.005 per share.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J 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.
K 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
N 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, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $51.38 | $42.23 | $41.29 | $34.14 | $34.17 | $32.70 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .08 | .36 | .31B | .21C | .21D | .10 |
| Net realized and unrealized gain (loss) | 2.00 | 9.20 | .86 | 7.19 | (.14) | 1.52 |
| Total from investment operations | 2.08 | 9.56 | 1.17 | 7.40 | .07 | 1.62 |
| Distributions from net investment income | (.27) | (.34) | (.21) | (.23) | (.10) | (.15) |
| Distributions from net realized gain | (1.55) | (.06) | (.02) | (.02) | – | (.01) |
| Total distributions | (1.82) | (.41)E | (.23) | (.25) | (.10) | (.15)F |
| Redemption fees added to paid in capitalA | – | – | – | –G | –G | –G |
| Net asset value, end of period | $51.64 | $51.38 | $42.23 | $41.29 | $34.14 | $34.17 |
| Total ReturnH,I | 4.12% | 22.94% | 2.84% | 21.81% | .20% | 5.00% |
| Ratios to Average Net AssetsJ,K | ||||||
| Expenses before reductions | .52%L | .43% | .46% | .63% | .78% | .76% |
| Expenses net of fee waivers, if any | .52%L | .43% | .46% | .63% | .78% | .76% |
| Expenses net of all reductions | .52%L | .43% | .46% | .63% | .78% | .76% |
| Net investment income (loss) | .35%L | .79% | .72%B | .57%C | .64%D | .28% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $230 | $236 | $205 | $272 | $475 | $699 |
| Portfolio turnover rateM | 59%L | 66%N | 43%N | 73%N | 63% | 40% |
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 $.41 per share is comprised of distributions from net investment income of $.343 and distributions from net realized gain of $.063 per share.
F 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.
G Amount represents less than $.005 per share.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J 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.
K 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.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
N 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, 2020
(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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
Fidelity Investments Institutional Operations Company, Inc. converted from a Massachusetts corporation to a Massachusetts LLC, and changed its name to "Fidelity Investments Institutional Operations Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. The aggregate value of investments by input level as of May 31, 2020 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain.
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 $52 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 redemptions in kind, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,094,437 |
| Gross unrealized depreciation | (9,759) |
| Net unrealized appreciation (depreciation) | $1,084,678 |
| Tax cost | $2,041,629 |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Growth Strategies Fund | 865,030 | 970,962 |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, 274 shares of the Fund were redeemed in-kind for investments and cash with a value of $13,011. The Fund had a net realized gain of $4,468 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 LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .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 .44% 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 LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of 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. Effective February 1, 2020, the Board approved to change the fee for Class K from .046% to .044%.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets(a) | |
| Growth Strategies | $2,223 | .16 |
| Class K | 47 | .04 |
| $2,270 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| % of Average Net Assets | |
| Fidelity Growth Strategies Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Growth Strategies Fund | $12 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $38.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Amount | |
| Fidelity Growth Strategies Fund | $4 |
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, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. Total fees paid by the Fund to NFS, as lending agent, amounted to $3. 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. During the period, there were no securities loaned to NFS.
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 $31 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by an amount of less than five hundred dollars.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $6.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended May 31, 2020 | Year ended November 30, 2019 |
|
| Distributions to shareholders | ||
| Growth Strategies | $99,083 | $19,312 |
| Class K | 8,297 | 1,934 |
| Total | $107,380 | $21,246 |
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, 2020 | Year ended November 30, 2019 | Six months ended May 31, 2020 | Year ended November 30, 2019 | |
| Growth Strategies | ||||
| Shares sold | 4,511 | 7,491 | $217,389 | $347,940 |
| Reinvestment of distributions | 1,884 | 473 | 94,591 | 18,446 |
| Shares redeemed | (6,721) | (7,938) | (314,254) | (356,462) |
| Net increase (decrease) | (326) | 26 | $(2,274) | $9,924 |
| Class K | ||||
| Shares sold | 878 | 842 | $44,179 | $39,343 |
| Reinvestment of distributions | 164 | 50 | 8,297 | 1,934 |
| Shares redeemed | (1,191) | (1,151)(a) | (60,162) | (52,827)(a) |
| Net increase (decrease) | (149) | (259) | $(7,686) | $(11,550) |
(a) 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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder 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, 2019 to May 31, 2020).
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, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 |
|
| Growth Strategies | .64% | |||
| Actual | $1,000.00 | $1,040.40 | $3.26 | |
| Hypothetical-C | $1,000.00 | $1,021.80 | $3.23 | |
| Class K | .52% | |||
| Actual | $1,000.00 | $1,041.20 | $2.65 | |
| Hypothetical-C | $1,000.00 | $1,022.40 | $2.63 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 LLC (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 2020 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 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 provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are 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 over the Internet and through telephone representatives, 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 ETFs with innovative structures, strategies and pricing 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 target date 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) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) 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, 2019, 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.
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
FEG-SANN-0720
1.704532.122
Fidelity® Series Growth Company Fund
Semi-Annual Report
May 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
|
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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2020
| % of fund's net assets | |
| NVIDIA Corp. | 8.0 |
| Amazon.com, Inc. | 6.8 |
| Apple, Inc. | 6.2 |
| Microsoft Corp. | 4.9 |
| Shopify, Inc. Class A | 4.5 |
| lululemon athletica, Inc. | 4.5 |
| Alphabet, Inc. Class A | 3.7 |
| Salesforce.com, Inc. | 2.9 |
| Alphabet, Inc. Class C | 2.1 |
| Facebook, Inc. Class A | 2.0 |
| 45.6 |
Top Five Market Sectors as of May 31, 2020
| % of fund's net assets | |
| Information Technology | 39.6 |
| Consumer Discretionary | 21.0 |
| Health Care | 18.9 |
| Communication Services | 11.1 |
| Industrials | 3.3 |
Asset Allocation (% of fund's net assets)
| As of May 31, 2020* | ||
| Stocks and Equity Futures | 98.2% | |
| Convertible Securities | 1.2% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.6% | |
* Foreign investments - 11.2%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.1% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 11.1% | |||
| Diversified Telecommunication Services - 0.0% | |||
| Verizon Communications, Inc. | 65,633 | $3,766,022 | |
| Entertainment - 2.4% | |||
| Activision Blizzard, Inc. | 534,828 | 38,496,919 | |
| Electronic Arts, Inc. (a) | 94,054 | 11,557,356 | |
| Lions Gate Entertainment Corp. Class A (a) | 20,346 | 162,158 | |
| NetEase, Inc. ADR | 32,174 | 12,319,425 | |
| Netflix, Inc. (a) | 195,629 | 82,111,360 | |
| Nintendo Co. Ltd. | 11,300 | 4,594,342 | |
| Roku, Inc. Class A (a) | 779,276 | 85,338,515 | |
| Sea Ltd. ADR (a) | 402,785 | 32,142,243 | |
| The Walt Disney Co. | 35,086 | 4,115,588 | |
| 270,837,906 | |||
| Interactive Media & Services - 8.0% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 287,599 | 412,278,918 | |
| Class C (a) | 163,243 | 233,261,188 | |
| Facebook, Inc. Class A (a) | 977,430 | 220,009,719 | |
| Match Group, Inc. (a)(b) | 36,330 | 3,234,823 | |
| Snap, Inc. Class A (a) | 223,771 | 4,238,223 | |
| Tencent Holdings Ltd. | 156,100 | 8,453,731 | |
| Twitter, Inc. (a) | 93,871 | 2,907,185 | |
| 884,383,787 | |||
| Media - 0.1% | |||
| Comcast Corp. Class A | 336,100 | 13,309,560 | |
| Turn, Inc. (Escrow) (a)(c)(d) | 205,882 | 2,882 | |
| 13,312,442 | |||
| Wireless Telecommunication Services - 0.6% | |||
| T-Mobile U.S., Inc. (a) | 692,432 | 69,270,897 | |
| TOTAL COMMUNICATION SERVICES | 1,241,571,054 | ||
| CONSUMER DISCRETIONARY - 20.9% | |||
| Automobiles - 1.3% | |||
| Neutron Holdings, Inc. (d) | 3,785,817 | 908,596 | |
| Tesla, Inc. (a) | 178,077 | 148,694,295 | |
| 149,602,891 | |||
| Hotels, Restaurants & Leisure - 0.8% | |||
| Chipotle Mexican Grill, Inc. (a) | 10,070 | 10,109,374 | |
| Hyatt Hotels Corp. Class A | 38,083 | 2,097,992 | |
| Marriott International, Inc. Class A | 108,950 | 9,642,075 | |
| McDonald's Corp. | 13,075 | 2,436,134 | |
| Penn National Gaming, Inc. (a) | 442,600 | 14,521,706 | |
| Planet Fitness, Inc. (a) | 60,452 | 3,907,013 | |
| Shake Shack, Inc. Class A (a)(b) | 19,136 | 1,063,005 | |
| Starbucks Corp. | 358,473 | 27,957,309 | |
| Yum China Holdings, Inc. | 218,572 | 10,128,626 | |
| Yum! Brands, Inc. | 86,700 | 7,779,591 | |
| 89,642,825 | |||
| Household Durables - 0.5% | |||
| D.R. Horton, Inc. | 150,100 | 8,300,530 | |
| KB Home | 150,100 | 4,965,308 | |
| Lennar Corp. Class A | 580,569 | 35,101,202 | |
| NVR, Inc. (a) | 490 | 1,578,589 | |
| Toll Brothers, Inc. | 116,300 | 3,757,653 | |
| 53,703,282 | |||
| Internet & Direct Marketing Retail - 9.4% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 212,729 | 44,117,867 | |
| Amazon.com, Inc. (a) | 309,118 | 754,980,531 | |
| Etsy, Inc. (a) | 32,721 | 2,649,747 | |
| JD.com, Inc. sponsored ADR (a) | 482,769 | 26,228,840 | |
| Ocado Group PLC (a) | 1,012,200 | 27,388,968 | |
| The Booking Holdings, Inc. (a) | 12,922 | 21,184,585 | |
| The Honest Co., Inc. (a)(c)(d) | 9,496 | 136,552 | |
| The RealReal, Inc. | 310,758 | 4,167,265 | |
| Wayfair LLC Class A (a)(b) | 963,370 | 165,266,124 | |
| 1,046,120,479 | |||
| Leisure Products - 0.2% | |||
| Callaway Golf Co. | 85,209 | 1,305,402 | |
| Peloton Interactive, Inc. Class A (a) | 404,512 | 17,066,361 | |
| 18,371,763 | |||
| Multiline Retail - 0.3% | |||
| Dollar General Corp. | 46,880 | 8,977,989 | |
| Dollar Tree, Inc. (a) | 77,404 | 7,575,529 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 41,789 | 3,821,604 | |
| Target Corp. | 68,433 | 8,371,409 | |
| 28,746,531 | |||
| Specialty Retail - 1.8% | |||
| Carvana Co. Class A (a)(b) | 298,724 | 27,775,358 | |
| Lowe's Companies, Inc. | 345,623 | 45,051,958 | |
| RH (a)(b) | 181,634 | 39,394,598 | |
| The Home Depot, Inc. | 308,777 | 76,724,909 | |
| TJX Companies, Inc. | 297,672 | 15,705,175 | |
| 204,651,998 | |||
| Textiles, Apparel & Luxury Goods - 6.6% | |||
| adidas AG | 330,398 | 87,624,026 | |
| Allbirds, Inc. (a)(c)(d) | 81,240 | 718,162 | |
| Canada Goose Holdings, Inc. (a)(b) | 358,771 | 6,999,012 | |
| Deckers Outdoor Corp. (a) | 33,600 | 6,133,008 | |
| lululemon athletica, Inc. (a) | 1,684,380 | 505,474,016 | |
| NIKE, Inc. Class B | 403,554 | 39,782,353 | |
| On Holding AG (c)(d) | 288 | 2,679,670 | |
| Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 2,074,879 | 64,985,210 | |
| Tory Burch LLC (c)(d)(e) | 248,840 | 13,312,940 | |
| Under Armour, Inc. Class C (non-vtg.) (a) | 126,772 | 996,428 | |
| VF Corp. | 66,529 | 3,732,277 | |
| 732,437,102 | |||
| TOTAL CONSUMER DISCRETIONARY | 2,323,276,871 | ||
| CONSUMER STAPLES - 2.3% | |||
| Beverages - 1.1% | |||
| Boston Beer Co., Inc. Class A (a) | 21,218 | 11,982,441 | |
| Keurig Dr. Pepper, Inc. (b) | 767,511 | 21,428,907 | |
| Monster Beverage Corp. (a) | 686,935 | 49,397,496 | |
| PepsiCo, Inc. | 88,564 | 11,650,594 | |
| The Coca-Cola Co. | 639,897 | 29,870,392 | |
| 124,329,830 | |||
| Food & Staples Retailing - 0.8% | |||
| Costco Wholesale Corp. | 148,644 | 45,852,215 | |
| Kroger Co. | 1,028,080 | 33,535,970 | |
| Performance Food Group Co. (a) | 250,368 | 6,672,307 | |
| Sysco Corp. | 38,000 | 2,096,080 | |
| 88,156,572 | |||
| Food Products - 0.2% | |||
| Bunge Ltd. | 114,624 | 4,472,628 | |
| Darling Ingredients, Inc. (a) | 317,469 | 7,400,202 | |
| Freshpet, Inc. (a) | 21,000 | 1,620,780 | |
| Mondelez International, Inc. | 46,187 | 2,407,266 | |
| 15,900,876 | |||
| Household Products - 0.1% | |||
| Church & Dwight Co., Inc. | 61,581 | 4,622,886 | |
| Colgate-Palmolive Co. | 40,831 | 2,953,306 | |
| Kimberly-Clark Corp. | 15,690 | 2,219,194 | |
| Procter & Gamble Co. | 2,378 | 275,658 | |
| 10,071,044 | |||
| Personal Products - 0.0% | |||
| Unilever NV | 9,436 | 487,633 | |
| Tobacco - 0.1% | |||
| Altria Group, Inc. | 307,000 | 11,988,350 | |
| JUUL Labs, Inc. Class A (a)(c)(d) | 13,297 | 1,473,707 | |
| 13,462,057 | |||
| TOTAL CONSUMER STAPLES | 252,408,012 | ||
| ENERGY - 0.4% | |||
| Oil, Gas & Consumable Fuels - 0.4% | |||
| EOG Resources, Inc. | 37,900 | 1,931,763 | |
| Hess Corp. | 535,606 | 25,425,217 | |
| Noble Energy, Inc. | 129,949 | 1,134,455 | |
| Reliance Industries Ltd. | 948,431 | 18,370,245 | |
| Reliance Industries Ltd. rights (a) | 63,228 | 185,657 | |
| Valero Energy Corp. | 47,568 | 3,169,932 | |
| 50,217,269 | |||
| FINANCIALS - 1.1% | |||
| Banks - 0.5% | |||
| Bank of America Corp. | 395,747 | 9,545,418 | |
| HDFC Bank Ltd. sponsored ADR | 350,442 | 14,658,989 | |
| JPMorgan Chase & Co. | 310,023 | 30,168,338 | |
| 54,372,745 | |||
| Capital Markets - 0.5% | |||
| BlackRock, Inc. Class A | 41,787 | 22,090,280 | |
| BM&F BOVESPA SA | 152,900 | 1,305,136 | |
| Charles Schwab Corp. | 755,481 | 27,129,323 | |
| Edelweiss Financial Services Ltd. | 1,020,687 | 621,687 | |
| T. Rowe Price Group, Inc. | 35,205 | 4,256,285 | |
| The Blackstone Group LP | 76,500 | 4,345,200 | |
| 59,747,911 | |||
| Consumer Finance - 0.1% | |||
| American Express Co. | 94,984 | 9,030,129 | |
| Discover Financial Services | 19,782 | 939,843 | |
| 9,969,972 | |||
| TOTAL FINANCIALS | 124,090,628 | ||
| HEALTH CARE - 18.4% | |||
| Biotechnology - 11.3% | |||
| AbbVie, Inc. | 92,159 | 8,540,375 | |
| ACADIA Pharmaceuticals, Inc. (a) | 1,767,371 | 87,802,991 | |
| ADC Therapeutics SA (a) | 103,400 | 3,820,630 | |
| Agios Pharmaceuticals, Inc. (a) | 248,193 | 12,841,506 | |
| Alector, Inc. (a)(b) | 239,960 | 7,846,692 | |
| Alexion Pharmaceuticals, Inc. (a) | 13,852 | 1,660,855 | |
| Allogene Therapeutics, Inc. (a)(b) | 221,646 | 10,674,471 | |
| Alnylam Pharmaceuticals, Inc. (a) | 1,145,831 | 154,996,559 | |
| Amgen, Inc. | 180,304 | 41,415,829 | |
| AnaptysBio, Inc. (a) | 9,531 | 181,851 | |
| Arcutis Biotherapeutics, Inc. (a) | 147,200 | 4,938,560 | |
| Argenx SE ADR (a) | 96,060 | 21,065,958 | |
| Arrowhead Pharmaceuticals, Inc. (a) | 39,329 | 1,267,967 | |
| Ascendis Pharma A/S sponsored ADR (a) | 13,889 | 2,020,711 | |
| aTyr Pharma, Inc. | 92,079 | 344,375 | |
| Axcella Health, Inc. | 500,539 | 3,003,234 | |
| BeiGene Ltd. ADR (a) | 421,582 | 69,788,684 | |
| Biogen, Inc. (a) | 3,042 | 934,168 | |
| BioNTech SE ADR (a) | 656,702 | 32,526,450 | |
| Blueprint Medicines Corp. (a) | 4,264 | 277,757 | |
| Bridgebio Pharma, Inc. (b) | 58,422 | 1,713,517 | |
| Calyxt, Inc. (a) | 322,401 | 1,399,220 | |
| Cellectis SA sponsored ADR (a) | 96,098 | 1,774,930 | |
| ChemoCentryx, Inc. (a) | 764,039 | 47,668,393 | |
| Cibus Corp.: | |||
| Series C (a)(c)(d)(e) | 1,142,857 | 1,939,901 | |
| Series D (a)(c)(d)(e) | 750,960 | 938,700 | |
| Constellation Pharmaceuticals, Inc. (a) | 58,388 | 2,074,526 | |
| Crinetics Pharmaceuticals, Inc. (a) | 78,439 | 1,281,693 | |
| CRISPR Therapeutics AG (a) | 13,700 | 884,746 | |
| Cyclerion Therapeutics, Inc. (a) | 94,747 | 377,093 | |
| Cyclerion Therapeutics, Inc. (a)(c) | 150,550 | 599,189 | |
| Denali Therapeutics, Inc. (a) | 123,574 | 3,439,064 | |
| Eidos Therapeutics, Inc. (a)(b) | 14,356 | 702,152 | |
| Evelo Biosciences, Inc. (a)(b) | 275,640 | 1,204,547 | |
| Exact Sciences Corp. (a) | 44,249 | 3,800,104 | |
| Exelixis, Inc. (a) | 281,843 | 6,964,341 | |
| Fate Therapeutics, Inc. (a) | 548,476 | 17,787,077 | |
| G1 Therapeutics, Inc. (a) | 102,936 | 1,746,824 | |
| Homology Medicines, Inc. (a)(b) | 185,529 | 2,641,933 | |
| Immunomedics, Inc. (a) | 112,100 | 3,765,439 | |
| Intarcia Therapeutics, Inc. warrants 12/6/24 (a)(d) | 7,022 | 1 | |
| Intercept Pharmaceuticals, Inc. (a) | 49,022 | 3,542,330 | |
| Ionis Pharmaceuticals, Inc. (a) | 1,924,434 | 108,172,435 | |
| Iovance Biotherapeutics, Inc. (a) | 94,357 | 3,027,916 | |
| Ironwood Pharmaceuticals, Inc. Class A (a) | 539,541 | 5,249,734 | |
| Karuna Therapeutics, Inc. (a)(b) | 385,399 | 36,173,550 | |
| Keros Therapeutics, Inc. | 62,000 | 1,781,880 | |
| Lexicon Pharmaceuticals, Inc. (a)(b) | 1,073,442 | 2,050,274 | |
| Macrogenics, Inc. (a) | 26,438 | 508,667 | |
| Mirati Therapeutics, Inc. (a) | 55,903 | 5,545,019 | |
| Moderna, Inc. (a) | 3,288,441 | 202,239,122 | |
| Momenta Pharmaceuticals, Inc. (a) | 1,639,820 | 51,621,534 | |
| Morphic Holding, Inc. | 196,751 | 4,088,486 | |
| ORIC Pharmaceuticals, Inc. | 90,808 | 2,371,723 | |
| Passage Bio, Inc. | 59,000 | 1,299,770 | |
| Principia Biopharma, Inc. (a) | 66,218 | 4,230,668 | |
| Protagonist Therapeutics, Inc. (a) | 319,095 | 5,274,640 | |
| Prothena Corp. PLC (a) | 181,605 | 1,935,909 | |
| PTC Therapeutics, Inc. (a) | 124,000 | 6,288,040 | |
| Regeneron Pharmaceuticals, Inc. (a) | 95,521 | 58,536,224 | |
| Repligen Corp. (a) | 7,900 | 1,034,663 | |
| Revolution Medicines, Inc. | 164,800 | 5,062,656 | |
| Rigel Pharmaceuticals, Inc. (a) | 2,427,049 | 4,744,881 | |
| Rubius Therapeutics, Inc. (a)(b) | 1,087,807 | 7,016,355 | |
| Sage Therapeutics, Inc. (a) | 578,753 | 20,673,057 | |
| Sarepta Therapeutics, Inc. (a) | 69,727 | 10,617,330 | |
| Scholar Rock Holding Corp. (a) | 272,434 | 5,012,786 | |
| Seres Therapeutics, Inc. (a)(b) | 651,071 | 3,574,380 | |
| Syros Pharmaceuticals, Inc. (a) | 687,738 | 6,732,955 | |
| Syros Pharmaceuticals, Inc. (a)(f) | 301,001 | 2,946,800 | |
| Syros Pharmaceuticals, Inc. warrants 10/10/22 (a) | 35,253 | 119,756 | |
| Translate Bio, Inc. (a) | 698,569 | 14,474,350 | |
| Turning Point Therapeutics, Inc. (a) | 45,880 | 3,177,190 | |
| Ultragenyx Pharmaceutical, Inc. (a) | 17,652 | 1,208,456 | |
| uniQure B.V. (a) | 199,773 | 13,416,755 | |
| UNITY Biotechnology, Inc. (a)(b) | 650,107 | 5,317,875 | |
| Vertex Pharmaceuticals, Inc. (a) | 115,093 | 33,142,180 | |
| Xencor, Inc. (a) | 311,662 | 9,427,776 | |
| Zai Lab Ltd. ADR (a) | 430,786 | 32,050,478 | |
| Zentalis Pharmaceuticals, Inc. | 80,700 | 4,214,154 | |
| 1,256,555,767 | |||
| Health Care Equipment & Supplies - 3.4% | |||
| Abbott Laboratories | 151,061 | 14,338,710 | |
| Boston Scientific Corp. (a) | 400,247 | 15,205,384 | |
| Danaher Corp. | 267,833 | 44,623,656 | |
| DexCom, Inc. (a) | 180,221 | 68,179,407 | |
| Genmark Diagnostics, Inc. (a) | 563,601 | 5,348,573 | |
| Inari Medical, Inc. | 16,600 | 730,400 | |
| Insulet Corp. (a) | 436,183 | 82,251,028 | |
| Intuitive Surgical, Inc. (a) | 84,041 | 48,746,301 | |
| Novocure Ltd. (a) | 929,307 | 62,663,171 | |
| Penumbra, Inc. (a) | 121,352 | 20,923,512 | |
| Presbia PLC (a) | 454,926 | 9,099 | |
| Shockwave Medical, Inc. (a) | 217,667 | 9,579,525 | |
| Stryker Corp. | 35,757 | 6,998,718 | |
| 379,597,484 | |||
| Health Care Providers & Services - 1.0% | |||
| 1Life Healthcare, Inc. (a)(b) | 89,900 | 2,903,770 | |
| Alignment Healthcare Partners unit (c)(d) | 233,968 | 4,164,233 | |
| Centene Corp. (a) | 72,190 | 4,782,588 | |
| Humana, Inc. | 11,943 | 4,904,393 | |
| Laboratory Corp. of America Holdings (a) | 12,025 | 2,108,223 | |
| UnitedHealth Group, Inc. | 290,454 | 88,544,902 | |
| 107,408,109 | |||
| Health Care Technology - 0.0% | |||
| Castlight Health, Inc. Class B (a) | 589,260 | 464,160 | |
| Teladoc Health, Inc. (a)(b) | 31,119 | 5,416,573 | |
| 5,880,733 | |||
| Life Sciences Tools & Services - 1.1% | |||
| 10X Genomics, Inc. (a)(b) | 194,701 | 15,180,837 | |
| 10X Genomics, Inc. Class B (f) | 815,857 | 63,612,370 | |
| Adaptive Biotechnologies Corp. | 29,017 | 1,122,958 | |
| Bruker Corp. | 69,393 | 3,003,329 | |
| Nanostring Technologies, Inc. (a) | 34,900 | 1,065,497 | |
| Thermo Fisher Scientific, Inc. | 67,134 | 23,442,521 | |
| Wuxi Biologics (Cayman), Inc. (a)(f) | 724,500 | 11,441,130 | |
| 118,868,642 | |||
| Pharmaceuticals - 1.6% | |||
| Adimab LLC (c)(d)(e) | 762,787 | 30,618,270 | |
| Akcea Therapeutics, Inc. (a) | 1,018,973 | 15,182,698 | |
| Bristol-Myers Squibb Co. | 243,485 | 14,540,924 | |
| Dragonfly Therapeutics, Inc. (c)(d) | 126,113 | 3,167,959 | |
| Fulcrum Therapeutics, Inc. | 173,325 | 3,450,901 | |
| Hansoh Pharmaceutical Group Co. Ltd. (f) | 672,000 | 2,936,450 | |
| Intra-Cellular Therapies, Inc. (a) | 684,209 | 14,286,284 | |
| Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 46,176 | 509,167 | |
| Kaleido Biosciences, Inc. (a)(b) | 219,954 | 1,588,068 | |
| MyoKardia, Inc. (a) | 438,309 | 44,834,628 | |
| Nektar Therapeutics (a)(b) | 891,372 | 19,342,772 | |
| OptiNose, Inc. (a)(b) | 678,975 | 2,933,172 | |
| RPI International Holdings LP (c)(d) | 35,220 | 8,283,744 | |
| Sienna Biopharmaceuticals, Inc. (a) | 639,918 | 9,535 | |
| Stemcentrx, Inc. rights 12/31/21 (a)(d) | 568,100 | 6 | |
| Theravance Biopharma, Inc. (a) | 501,245 | 12,656,436 | |
| 174,341,014 | |||
| TOTAL HEALTH CARE | 2,042,651,749 | ||
| INDUSTRIALS - 3.1% | |||
| Aerospace & Defense - 0.4% | |||
| Lockheed Martin Corp. | 17,774 | 6,904,133 | |
| Space Exploration Technologies Corp. Class A (a)(c)(d) | 137,569 | 30,265,180 | |
| The Boeing Co. | 69,606 | 10,152,035 | |
| 47,321,348 | |||
| Air Freight & Logistics - 0.1% | |||
| United Parcel Service, Inc. Class B | 118,530 | 11,818,626 | |
| Airlines - 0.7% | |||
| Delta Air Lines, Inc. | 116,410 | 2,934,696 | |
| JetBlue Airways Corp. (a) | 982,514 | 9,893,916 | |
| Ryanair Holdings PLC sponsored ADR (a) | 79,768 | 5,724,949 | |
| Southwest Airlines Co. | 557,627 | 17,899,827 | |
| Spirit Airlines, Inc. (a) | 212,333 | 2,749,712 | |
| United Airlines Holdings, Inc. (a) | 76,025 | 2,131,741 | |
| Wheels Up Partners Holdings LLC: | |||
| Series B (a)(c)(d)(e) | 1,843,115 | 5,232,083 | |
| Series C (a)(c)(d)(e) | 670,590 | 2,092,241 | |
| Series D (a)(c)(d)(e) | 1,135,960 | 3,953,141 | |
| Wizz Air Holdings PLC (a)(f) | 503,773 | 20,406,837 | |
| 73,019,143 | |||
| Building Products - 0.1% | |||
| Trane Technologies PLC | 62,822 | 5,667,173 | |
| Commercial Services & Supplies - 0.0% | |||
| HomeServe PLC | 88,400 | 1,415,987 | |
| Electrical Equipment - 0.1% | |||
| AMETEK, Inc. | 4,307 | 394,995 | |
| Eaton Corp. PLC | 45,714 | 3,881,119 | |
| Emerson Electric Co. | 70,889 | 4,325,647 | |
| Generac Holdings, Inc. (a) | 36,000 | 4,005,720 | |
| 12,607,481 | |||
| Industrial Conglomerates - 0.4% | |||
| 3M Co. | 61,660 | 9,646,090 | |
| General Electric Co. | 153,500 | 1,008,495 | |
| Honeywell International, Inc. | 220,033 | 32,091,813 | |
| 42,746,398 | |||
| Machinery - 0.5% | |||
| Caterpillar, Inc. | 67,600 | 8,120,788 | |
| Deere & Co. | 104,162 | 15,845,123 | |
| Fortive Corp. | 80,708 | 4,921,574 | |
| Gardner Denver Holdings, Inc. (a) | 20,044 | 565,241 | |
| Illinois Tool Works, Inc. | 77,753 | 13,409,282 | |
| Xylem, Inc. | 176,817 | 11,730,040 | |
| 54,592,048 | |||
| Professional Services - 0.0% | |||
| CoStar Group, Inc. (a) | 2,028 | 1,331,990 | |
| Verisk Analytics, Inc. | 5,999 | 1,035,907 | |
| 2,367,897 | |||
| Road & Rail - 0.8% | |||
| Lyft, Inc. (a) | 318,568 | 9,958,436 | |
| Uber Technologies, Inc. | 1,238,004 | 44,964,305 | |
| Union Pacific Corp. | 201,661 | 34,254,137 | |
| 89,176,878 | |||
| TOTAL INDUSTRIALS | 340,732,979 | ||
| INFORMATION TECHNOLOGY - 39.3% | |||
| Communications Equipment - 0.4% | |||
| Arista Networks, Inc. (a) | 9,303 | 2,171,878 | |
| Ciena Corp. (a) | 278,397 | 15,384,218 | |
| Cisco Systems, Inc. | 78,479 | 3,752,866 | |
| Infinera Corp. (a)(b) | 3,037,375 | 15,126,128 | |
| Lumentum Holdings, Inc. (a) | 56,300 | 4,127,916 | |
| 40,563,006 | |||
| Electronic Equipment & Components - 0.1% | |||
| Arlo Technologies, Inc. (a) | 483,211 | 1,067,896 | |
| II-VI, Inc. (a) | 140,200 | 6,663,706 | |
| TE Connectivity Ltd. | 3,641 | 295,831 | |
| Trimble, Inc. (a) | 6,800 | 266,016 | |
| 8,293,449 | |||
| IT Services - 8.8% | |||
| Actua Corp. (a)(d) | 562,258 | 28,113 | |
| Black Knight, Inc. (a) | 89,130 | 6,861,227 | |
| IBM Corp. | 6,995 | 873,676 | |
| MasterCard, Inc. Class A | 376,249 | 113,209,562 | |
| MongoDB, Inc. Class A (a) | 48,901 | 11,350,411 | |
| Okta, Inc. (a) | 66,281 | 12,963,238 | |
| PayPal Holdings, Inc. (a) | 942,527 | 146,101,110 | |
| Riskified Ltd. (c)(d) | 7,846 | 2,127,835 | |
| Riskified Ltd. warrants (a)(c)(d) | 1,301 | 1 | |
| Shopify, Inc. Class A (a) | 667,049 | 506,261,534 | |
| Square, Inc. (a) | 387,685 | 31,433,500 | |
| Twilio, Inc. Class A (a) | 13,000 | 2,568,800 | |
| Visa, Inc. Class A | 664,612 | 129,758,847 | |
| Wix.com Ltd. (a) | 87,548 | 19,464,547 | |
| 983,002,401 | |||
| Semiconductors & Semiconductor Equipment - 11.4% | |||
| Advanced Micro Devices, Inc. (a) | 2,322,093 | 124,928,603 | |
| Applied Materials, Inc. | 251,875 | 14,150,338 | |
| ASML Holding NV | 73,565 | 24,240,403 | |
| Broadcom, Inc. | 29,075 | 8,468,675 | |
| Cirrus Logic, Inc. (a) | 273,366 | 19,813,568 | |
| Cree, Inc. (a) | 91,289 | 4,810,017 | |
| Inphi Corp. (a) | 48,400 | 6,082,428 | |
| Intel Corp. | 13,662 | 859,750 | |
| KLA-Tencor Corp. | 41,146 | 7,240,050 | |
| Marvell Technology Group Ltd. | 688,671 | 22,464,448 | |
| Micron Technology, Inc. (a) | 598,431 | 28,670,829 | |
| NVIDIA Corp. | 2,503,435 | 888,769,487 | |
| Qualcomm, Inc. | 119,269 | 9,646,477 | |
| Silicon Laboratories, Inc. (a) | 693,189 | 64,924,082 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 289,648 | 14,577,984 | |
| Teradyne, Inc. | 25,000 | 1,675,500 | |
| Texas Instruments, Inc. | 256,094 | 30,408,602 | |
| Universal Display Corp. | 9,700 | 1,422,020 | |
| 1,273,153,261 | |||
| Software - 12.1% | |||
| 2U, Inc. (a)(b) | 74,219 | 2,706,767 | |
| Adobe, Inc. (a) | 269,712 | 104,270,659 | |
| Atlassian Corp. PLC (a) | 56,496 | 10,468,709 | |
| Autodesk, Inc. (a) | 161,542 | 33,985,206 | |
| Avalara, Inc. (a) | 27,054 | 2,896,401 | |
| Bill.Com Holdings, Inc. (a) | 6,000 | 417,840 | |
| Cadence Design Systems, Inc. (a) | 22,285 | 2,034,398 | |
| Cloudflare, Inc. (a) | 1,234,381 | 35,883,456 | |
| Coupa Software, Inc. (a)(b) | 75,374 | 17,148,339 | |
| Crowdstrike Holdings, Inc. (b) | 37,403 | 3,284,357 | |
| CyberArk Software Ltd. (a) | 10,402 | 1,079,520 | |
| Datadog, Inc. Class A (a) | 12,530 | 893,013 | |
| DocuSign, Inc. (a) | 8,941 | 1,249,415 | |
| Elastic NV (a) | 41,394 | 3,556,572 | |
| HubSpot, Inc. (a) | 278,417 | 55,666,695 | |
| Intuit, Inc. | 88,414 | 25,668,352 | |
| LivePerson, Inc. (a) | 179,094 | 6,707,070 | |
| Medallia, Inc. (b) | 107,779 | 3,047,990 | |
| Microsoft Corp. | 2,986,536 | 547,282,722 | |
| Nutanix, Inc. Class A (a) | 2,917,616 | 70,197,841 | |
| Oracle Corp. | 430,534 | 23,149,813 | |
| Outset Medical, Inc. (a)(c)(d) | 123,336 | 312,040 | |
| Paylocity Holding Corp. (a) | 21,257 | 2,763,516 | |
| Ping Identity Holding Corp. (a)(b) | 30,035 | 850,291 | |
| Pluralsight, Inc. (a) | 232,000 | 4,832,560 | |
| RingCentral, Inc. (a) | 11,092 | 3,041,981 | |
| Salesforce.com, Inc. (a) | 1,841,484 | 321,872,988 | |
| Snowflake Computing, Inc. Class B (c)(d) | 7,925 | 307,252 | |
| The Trade Desk, Inc. (a)(b) | 36,000 | 11,216,160 | |
| Workday, Inc. Class A (a) | 4,132 | 757,933 | |
| Zendesk, Inc. (a) | 376,995 | 32,327,321 | |
| Zoom Video Communications, Inc. Class A (a) | 23,553 | 4,227,292 | |
| Zscaler, Inc. (a) | 172,435 | 16,914,149 | |
| 1,351,018,618 | |||
| Technology Hardware, Storage & Peripherals - 6.5% | |||
| Apple, Inc. | 2,160,332 | 686,855,956 | |
| Pure Storage, Inc. Class A (a) | 1,548,478 | 27,268,698 | |
| Samsung Electronics Co. Ltd. | 155,213 | 6,386,641 | |
| 720,511,295 | |||
| TOTAL INFORMATION TECHNOLOGY | 4,376,542,030 | ||
| MATERIALS - 0.3% | |||
| Chemicals - 0.1% | |||
| Albemarle Corp. U.S. (b) | 15,900 | 1,216,668 | |
| Dow, Inc. | 61,849 | 2,387,371 | |
| DuPont de Nemours, Inc. | 26,996 | 1,369,507 | |
| 4,973,546 | |||
| Metals & Mining - 0.2% | |||
| Barrick Gold Corp. (Canada) | 1,027,800 | 24,716,170 | |
| TOTAL MATERIALS | 29,689,716 | ||
| REAL ESTATE - 0.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
| American Tower Corp. | 66,738 | 17,229,749 | |
| Ant International Co. Ltd. Class C (a)(c)(d) | 419,242 | 3,580,327 | |
| 20,810,076 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $3,656,518,098) | 10,801,990,384 | ||
| Preferred Stocks - 1.3% | |||
| Convertible Preferred Stocks - 1.2% | |||
| COMMUNICATION SERVICES - 0.0% | |||
| Wireless Telecommunication Services - 0.0% | |||
| Altiostar Networks, Inc. Series A1 (a)(c)(d) | 202,849 | 780,969 | |
| CONSUMER DISCRETIONARY - 0.1% | |||
| Hotels, Restaurants & Leisure - 0.1% | |||
| MOD Super Fast Pizza Holdings LLC: | |||
| Series 3 (a)(c)(d)(e) | 16,248 | 2,251,485 | |
| Series 4 (a)(c)(d)(e) | 1,483 | 205,499 | |
| Series 5 (a)(c)(d)(e) | 5,955 | 825,184 | |
| Topgolf International, Inc. Series F (a)(c)(d) | 234,069 | 2,848,620 | |
| 6,130,788 | |||
| Internet & Direct Marketing Retail - 0.0% | |||
| Reddit, Inc. Series B (a)(c)(d) | 37,935 | 1,278,030 | |
| The Honest Co., Inc.: | |||
| Series C (a)(c)(d) | 22,157 | 856,368 | |
| Series D (a)(c)(d) | 19,064 | 872,369 | |
| 3,006,767 | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc.: | |||
| Series A (a)(c)(d) | 32,065 | 283,455 | |
| Series B (a)(c)(d) | 5,635 | 49,813 | |
| Series C (a)(c)(d) | 53,835 | 475,901 | |
| Series D (c)(d) | 62,760 | 554,798 | |
| Series Seed (a)(c)(d) | 99,244 | 877,317 | |
| 2,241,284 | |||
| TOTAL CONSUMER DISCRETIONARY | 11,378,839 | ||
| CONSUMER STAPLES - 0.1% | |||
| Food & Staples Retailing - 0.1% | |||
| Blink Health LLC Series C (c)(d) | 172,284 | 7,375,478 | |
| Sweetgreen, Inc.: | |||
| Series C (c)(d) | 1,331 | 19,885 | |
| Series D (c)(d) | 21,414 | 319,925 | |
| Series H (a)(c)(d) | 168,337 | 2,514,955 | |
| Series I (c)(d) | 50,469 | 754,007 | |
| 10,984,250 | |||
| Food Products - 0.0% | |||
| Agbiome LLC Series C (a)(c)(d) | 338,565 | 2,144,369 | |
| Tobacco - 0.0% | |||
| JUUL Labs, Inc. Series E (a)(c)(d) | 6,648 | 736,798 | |
| TOTAL CONSUMER STAPLES | 13,865,417 | ||
| FINANCIALS - 0.1% | |||
| Diversified Financial Services - 0.1% | |||
| Paragon Biosciences Emalex Capital, Inc. Series B (c)(d) | 198,234 | 2,529,466 | |
| Sonder Holdings, Inc.: | |||
| Series D (c)(d) | 265,415 | 2,857,697 | |
| Series E (c)(d) | 420,126 | 4,523,455 | |
| 9,910,618 | |||
| Insurance - 0.0% | |||
| Clover Health Series D (a)(c)(d) | 264,037 | 1,137,999 | |
| TOTAL FINANCIALS | 11,048,617 | ||
| HEALTH CARE - 0.4% | |||
| Biotechnology - 0.2% | |||
| 23andMe, Inc. Series F (a)(c)(d) | 164,720 | 2,515,274 | |
| Akouos, Inc. Series B (c)(d) | 2,386,804 | 1,132,658 | |
| Element Biosciences, Inc. Series B (c)(d) | 250,956 | 1,287,404 | |
| Generation Bio: | |||
| Series B (a)(c) | 224,243 | 2,170,672 | |
| Series C (c) | 175,600 | 1,699,808 | |
| Immunocore Ltd. Series A (a)(c)(d) | 18,504 | 2,722,183 | |
| Intarcia Therapeutics, Inc. Series EE (a)(c)(d) | 116,544 | 2,158,395 | |
| Nuvation Bio, Inc. Series A(c)(d)(g) | 3,463,900 | 3,256,066 | |
| Seer, Inc. Series D1 (c)(d) | 334,177 | 1,253,164 | |
| 18,195,624 | |||
| Health Care Providers & Services - 0.0% | |||
| Mulberry Health, Inc. Series A-8 (a)(c)(d) | 783,663 | 4,717,651 | |
| Health Care Technology - 0.1% | |||
| Codiak Biosciences, Inc.: | |||
| Series A 8.00% (a)(c)(d) | 163,914 | 699,913 | |
| Series B 8.00% (a)(c)(d) | 532,720 | 2,274,714 | |
| Series C, 8.00% (a)(c)(d) | 648,255 | 2,768,049 | |
| 5,742,676 | |||
| Pharmaceuticals - 0.1% | |||
| Allovir, Inc. Series B (c)(d) | 340,345 | 3,403,450 | |
| Castle Creek Pharmaceutical Holdings, Inc.: | |||
| Series B (a)(c)(d) | 4,910 | 1,959,385 | |
| Series C (c)(d) | 2,570 | 1,025,584 | |
| Harmony Biosciences II, Inc.: | |||
| Series A (a)(c)(d) | 2,550,636 | 6,172,539 | |
| Series C (c)(d) | 664,710 | 1,608,598 | |
| Nohla Therapeutics, Inc. Series B (a)(c)(d) | 3,126,919 | 31 | |
| 14,169,587 | |||
| TOTAL HEALTH CARE | 42,825,538 | ||
| INDUSTRIALS - 0.2% | |||
| Aerospace & Defense - 0.1% | |||
| Space Exploration Technologies Corp. Series G (a)(c)(d) | 53,937 | 11,866,140 | |
| Professional Services - 0.1% | |||
| YourPeople, Inc. Series C (a)(c)(d) | 1,527,000 | 4,581,000 | |
| TOTAL INDUSTRIALS | 16,447,140 | ||
| INFORMATION TECHNOLOGY - 0.3% | |||
| Internet Software & Services - 0.1% | |||
| Starry, Inc.: | |||
| Series B (a)(c)(d) | 2,961,147 | 3,612,599 | |
| Series C (a)(c)(d) | 1,339,018 | 1,633,602 | |
| Series D (a)(c)(d) | 1,344,355 | 1,640,113 | |
| 6,886,314 | |||
| IT Services - 0.0% | |||
| AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 209,665 | 6,567 | |
| Riskified Ltd. Series E (c)(d) | 6,200 | 1,681,440 | |
| 1,688,007 | |||
| Software - 0.2% | |||
| Bird Rides, Inc.: | |||
| Series C (a)(c)(d) | 117,022 | 1,329,370 | |
| Series D (c)(d) | 104,900 | 1,191,664 | |
| Dataminr, Inc. Series D (a)(c)(d) | 442,241 | 4,864,651 | |
| Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 2,105,094 | 21 | |
| Outset Medical, Inc.: | |||
| Series C(a)(c)(d) | 382,862 | 968,641 | |
| Series D (a)(c)(d) | 373,580 | 1,247,757 | |
| Series E (c)(d) | 332,237 | 840,560 | |
| Taboola.Com Ltd. Series E (a)(c)(d) | 331,426 | 9,893,066 | |
| UiPath, Inc.: | |||
| Series A1 (c)(d) | 52,327 | 1,908,889 | |
| Series B1 (c)(d) | 2,607 | 95,103 | |
| Series B2 (c)(d) | 12,982 | 473,583 | |
| 22,813,305 | |||
| TOTAL INFORMATION TECHNOLOGY | 31,387,626 | ||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 127,734,146 | ||
| Nonconvertible Preferred Stocks - 0.1% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Automobiles - 0.0% | |||
| Waymo LLC Series A2 (c)(d) | 10,731 | 921,441 | |
| ENERGY - 0.0% | |||
| Oil, Gas & Consumable Fuels - 0.0% | |||
| Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 256,170 | 1,931,522 | |
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.0% | |||
| Yumanity Holdings LLC: | |||
| Class A (a)(c)(d) | 130,754 | 1,013,344 | |
| Class B (a)(c)(d) | 85,345 | 661,424 | |
| 1,674,768 | |||
| Health Care Providers & Services - 0.0% | |||
| Oak Street Health LLC Series III-E (c)(d)(e) | 14,892 | 2,988,824 | |
| Pharmaceuticals - 0.1% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 (a)(c)(d) | 13,511 | 5,391,700 | |
| Faraday Pharmaceuticals, Inc. Series B (d) | 219,824 | 276,978 | |
| 5,668,678 | |||
| TOTAL HEALTH CARE | 10,332,270 | ||
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 13,185,233 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $142,450,720) | 140,919,379 | ||
| Principal Amount | Value | ||
| Preferred Securities - 0.0% | |||
| HEALTH CARE - 0.0% | |||
| Biotechnology - 0.0% | |||
| Intarcia Therapeutics, Inc. 6% 7/18/21 (Cost $614,446)(c)(d) | 614,446 | 795,684 | |
| Shares | Value | ||
| Money Market Funds - 3.4% | |||
| Fidelity Cash Central Fund 0.11% (h) | 202,157,445 | 202,197,877 | |
| Fidelity Securities Lending Cash Central Fund 0.10% (h)(i) | 174,917,662 | 174,935,154 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $377,133,031) | 377,133,031 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.8% | |||
| (Cost $4,176,716,295) | 11,320,838,478 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.8)% | (198,311,771) | ||
| NET ASSETS - 100% | $11,122,526,707 |
| Futures Contracts | |||||
| Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||||
| Equity Index Contracts | |||||
| CME E-mini S&P 500 Index Contracts (United States) | 728 | June 2020 | $110,728,800 | $4,615,499 | $4,615,499 |
The notional amount of futures purchased as a percentage of Net Assets is 1%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $255,412,572 or 2.3% of net assets.
(d) Level 3 security
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $101,343,587 or 0.9% of net assets.
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(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 |
| 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 |
| Akouos, Inc. Series B | 2/27/20 | $1,132,658 |
| Alignment Healthcare Partners unit | 2/28/20 | $2,835,368 |
| Allbirds, Inc. | 10/9/18 | $890,972 |
| 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 |
| Allbirds, Inc. Series D | 12/23/19 | $808,713 |
| Allbirds, Inc. Series Seed | 10/9/18 - 1/23/20 | $997,616 |
| 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 | $0 |
| Bird Rides, Inc. Series C | 12/21/18 | $1,374,482 |
| Bird Rides, Inc. Series D | 9/30/19 | $1,355,067 |
| Blink Health LLC Series C | 11/7/19 | $6,577,114 |
| 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 |
| Castle Creek Pharmaceutical Holdings, Inc. Series C | 12/9/19 | $1,058,455 |
| Cibus Corp. Series C | 2/16/18 | $2,400,000 |
| Cibus Corp. Series D | 5/10/19 | $938,700 |
| 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 |
| Dragonfly Therapeutics, Inc. | 12/19/19 | $3,336,950 |
| Element Biosciences, Inc. Series B | 12/13/19 | $1,315,160 |
| Generation Bio Series B | 2/21/18 | $2,050,859 |
| Generation Bio Series C | 1/9/20 | $981,850 |
| Harmony Biosciences II, Inc. Series A | 9/22/17 | $2,550,636 |
| Harmony Biosciences II, Inc. Series C | 8/9/19 | $1,302,832 |
| 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 |
| 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 A-8 | 1/20/16 | $5,293,448 |
| Nohla Therapeutics, Inc. Series B | 5/1/18 | $1,426,000 |
| Nuvation Bio, Inc. Series A | 6/17/19 | $2,671,984 |
| Oak Street Health LLC Series III-E | 2/21/20 | $2,327,471 |
| On Holding AG | 2/6/20 | $2,624,466 |
| Outset Medical, Inc. | 4/19/17 - 8/20/18 | $269,790 |
| Outset Medical, Inc. Series C | 4/19/17 | $804,584 |
| Outset Medical, Inc. Series D | 8/20/18 | $1,079,646 |
| Outset Medical, Inc. Series E | 1/27/20 | $730,921 |
| Paragon Biosciences Emalex Capital, Inc. Series B | 9/18/19 | $2,020,004 |
| Reddit, Inc. Series B | 7/26/17 | $538,544 |
| Riskified Ltd. | 12/20/19 - 4/15/20 | $1,773,844 |
| Riskified Ltd. Series E | 10/28/19 | $1,474,732 |
| Riskified Ltd. warrants | 10/28/19 | $1 |
| RPI International Holdings LP | 5/21/15 - 3/23/16 | $4,390,645 |
| Seer, Inc. Series D1 | 5/12/20 | $1,253,164 |
| Snowflake Computing, Inc. Class B | 3/19/20 | $307,384 |
| Sonder Holdings, Inc. Series D | 12/20/19 | $2,785,793 |
| Sonder Holdings, Inc. Series E | 4/3/20 - 5/6/20 | $4,523,454 |
| 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 C | 9/13/19 | $22,760 |
| Sweetgreen, Inc. Series D | 9/13/19 | $366,179 |
| Sweetgreen, Inc. Series H | 11/9/18 | $2,195,114 |
| Sweetgreen, Inc. Series I | 9/13/19 | $863,020 |
| 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 | $0 |
| UiPath, Inc. Series A1 | 6/14/19 | $2,059,156 |
| UiPath, Inc. Series B1 | 6/14/19 | $102,590 |
| UiPath, Inc. Series B2 | 6/14/19 | $510,864 |
| Waymo LLC Series A2 | 5/8/20 | $921,441 |
| 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 | 5/15/19 - 8/2/19 | $3,953,141 |
| 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 | $174,203 |
| Fidelity Securities Lending Cash Central Fund | 864,254 |
| Total | $1,038,457 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $1,242,352,023 | $1,228,520,099 | $13,048,073 | $783,851 |
| Consumer Discretionary | 2,335,577,151 | 2,217,896,925 | 87,624,026 | 30,056,200 |
| Consumer Staples | 266,273,429 | 250,446,672 | 487,633 | 15,339,124 |
| Energy | 52,148,791 | 52,148,791 | -- | -- |
| Financials | 135,139,245 | 124,090,628 | -- | 11,048,617 |
| Health Care | 2,095,809,557 | 1,976,669,876 | 20,739,539 | 98,400,142 |
| Industrials | 357,180,119 | 299,190,334 | -- | 57,989,785 |
| Information Technology | 4,407,929,656 | 4,373,766,789 | -- | 34,162,867 |
| Materials | 29,689,716 | 29,689,716 | -- | -- |
| Real Estate | 20,810,076 | 17,229,749 | -- | 3,580,327 |
| Preferred Securities | 795,684 | -- | -- | 795,684 |
| Money Market Funds | 377,133,031 | 377,133,031 | -- | -- |
| Total Investments in Securities: | $11,320,838,478 | $10,946,782,610 | $121,899,271 | $252,156,597 |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $4,615,499 | $4,615,499 | $-- | $-- |
| Total Assets | $4,615,499 | $4,615,499 | $-- | $-- |
| Total Derivative Instruments: | $4,615,499 | $4,615,499 | $-- | $-- |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Beginning Balance | $233,196,744 |
| Net Realized Gain (Loss) on Investment Securities | 144,266 |
| Net Unrealized Gain (Loss) on Investment Securities | (3,121,021) |
| Cost of Purchases | 33,757,630 |
| Proceeds of Sales | (8,583,971) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | 6,870,883 |
| Transfers out of Level 3 | (10,107,934) |
| Ending Balance | $252,156,597 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2020 | $5,164,540 |
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.
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2020. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $4,615,499 | $0 |
| Total Equity Risk | 4,615,499 | 0 |
| Total Value of Derivatives | $4,615,499 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
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 | 88.8% |
| Canada | 4.8% |
| Cayman Islands | 2.3% |
| Germany | 1.1% |
| Others (Individually Less Than 1%) | 3.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| May 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $174,296,275) — See accompanying schedule: Unaffiliated issuers (cost $3,799,583,264) | $10,943,705,447 | |
| Fidelity Central Funds (cost $377,133,031) | 377,133,031 | |
| Total Investment in Securities (cost $4,176,716,295) | $11,320,838,478 | |
| Segregated cash with brokers for derivative instruments | 8,736,000 | |
| Restricted cash | 650,457 | |
| Foreign currency held at value (cost $24,223) | 24,223 | |
| Receivable for investments sold | 23,878,899 | |
| Receivable for fund shares sold | 625,712 | |
| Dividends receivable | 4,795,057 | |
| Distributions receivable from Fidelity Central Funds | 103,700 | |
| Receivable for daily variation margin on futures contracts | 141,960 | |
| Other receivables | 13,340 | |
| Total assets | 11,359,807,826 | |
| Liabilities | ||
| Payable to custodian bank | $75 | |
| Payable for investments purchased | ||
| Regular delivery | 7,114,497 | |
| Delayed delivery | 1,335,992 | |
| Payable for fund shares redeemed | 53,751,427 | |
| Other payables and accrued expenses | 154,360 | |
| Collateral on securities loaned | 174,924,768 | |
| Total liabilities | 237,281,119 | |
| Net Assets | $11,122,526,707 | |
| Net Assets consist of: | ||
| Paid in capital | $3,016,306,163 | |
| Total accumulated earnings (loss) | 8,106,220,544 | |
| Net Assets | $11,122,526,707 | |
| Net Asset Value, offering price and redemption price per share ($11,122,526,707 ÷ 539,566,144 shares) | $20.61 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended May 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends | $25,686,679 | |
| Income from Fidelity Central Funds (including $864,254 from security lending) | 1,038,457 | |
| Total income | 26,725,136 | |
| Expenses | ||
| Custodian fees and expenses | $102,851 | |
| Independent trustees' fees and expenses | 30,780 | |
| Interest | 48,108 | |
| Miscellaneous | 14,152 | |
| Total expenses before reductions | 195,891 | |
| Expense reductions | (1,238) | |
| Total expenses after reductions | 194,653 | |
| Net investment income (loss) | 26,530,483 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 984,254,569 | |
| Fidelity Central Funds | (33,323) | |
| Foreign currency transactions | (238,250) | |
| Futures contracts | 3,947,014 | |
| Total net realized gain (loss) | 987,930,010 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $433,485) | 892,168,190 | |
| Assets and liabilities in foreign currencies | 7,883 | |
| Futures contracts | 4,615,499 | |
| Total change in net unrealized appreciation (depreciation) | 896,791,572 | |
| Net gain (loss) | 1,884,721,582 | |
| Net increase (decrease) in net assets resulting from operations | $1,911,252,065 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $26,530,483 | $72,348,706 |
| Net realized gain (loss) | 987,930,010 | 1,080,093,352 |
| Change in net unrealized appreciation (depreciation) | 896,791,572 | 1,260,958,253 |
| Net increase (decrease) in net assets resulting from operations | 1,911,252,065 | 2,413,400,311 |
| Distributions to shareholders | (1,132,911,379) | (1,195,147,338) |
| Share transactions | ||
| Proceeds from sales of shares | 293,615,859 | 1,110,762,773 |
| Reinvestment of distributions | 1,132,911,380 | 1,195,147,338 |
| Cost of shares redeemed | (2,256,000,700) | (3,626,973,368) |
| Net increase (decrease) in net assets resulting from share transactions | (829,473,461) | (1,321,063,257) |
| Total increase (decrease) in net assets | (51,132,775) | (102,810,284) |
| Net Assets | ||
| Beginning of period | 11,173,659,482 | 11,276,469,766 |
| End of period | $11,122,526,707 | $11,173,659,482 |
| Other Information | ||
| Shares | ||
| Sold | 16,330,896 | 65,505,668 |
| Issued in reinvestment of distributions | 64,811,864 | 85,003,367 |
| Redeemed | (124,840,275) | (207,445,393) |
| Net increase (decrease) | (43,697,515) | (56,936,358) |
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, | |||||
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Selected Per–Share Data | ||||||
| Net asset value, beginning of period | $19.16 | $17.61 | $18.19 | $13.49 | $13.08 | $12.10 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .05 | .11 | .15B | .07 | .01 | .03 |
| Net realized and unrealized gain (loss) | 3.36 | 3.31 | 1.02 | 4.96 | .43 | 1.04 |
| Total from investment operations | 3.41 | 3.42 | 1.17 | 5.03 | .44 | 1.07 |
| Distributions from net investment income | (.13) | (.15) | (.09) | (.02) | (.03) | (.02) |
| Distributions from net realized gain | (1.84) | (1.72) | (1.66) | (.31) | – | (.07) |
| Total distributions | (1.96)C | (1.87) | (1.75) | (.33) | (.03) | (.09) |
| Net asset value, end of period | $20.61 | $19.16 | $17.61 | $18.19 | $13.49 | $13.08 |
| Total ReturnD,E | 19.65% | 23.24% | 6.96% | 38.10% | 3.38% | 8.94% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | - %H,I | - %I | - %I | .38% | .74% | .79% |
| Expenses net of fee waivers, if any | - %H,I | - %I | - %I | .38% | .74% | .79% |
| Expenses net of all reductions | - %H,I | - %I | - %I | .37% | .74% | .79% |
| Net investment income (loss) | .50%H | .64% | .79%B | .43% | .11% | .24% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $11,122,527 | $11,173,659 | $11,276,470 | $11,622,162 | $4,032,151 | $4,602,479 |
| Portfolio turnover rateJ | 16%H | 19%K | 23% | 15% | 20% | 18% |
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. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .65%.
C Total distributions of $1.96 per share is comprised of distributions from net investment income of $.128 and distributions from net realized gain of $1.835 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying 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. 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 represents less than .005%.
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, 2020
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 are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 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.
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 | $ 251,360,913 | Market approach | Transaction price | $1.25 - $220.00 / $137.42 | Increase |
| Discount rate | 6.0% | Decrease | |||
| Discount for lack of marketability | 10.0% | Decrease | |||
| Recovery value | Recovery value | 0.0% - 0.1% / 0.0% | Increase | ||
| Market comparable | Transaction price | $0.47 - $411.85 / $96.05 | Increase | ||
| Enterprise value/EBITDA multiple (EV/EBITDA) | 10.8 | Increase | |||
| Discount rate | 2.1% - 75.0% / 34.7% | Decrease | |||
| Enterprise value/Sales multiple (EV/S) | 1.0 - 21.2 / 5.6 | Increase | |||
| Discount for lack of marketability | 10.0% - 15.0% /14.3% | Decrease | |||
| Premium rate | 2.0% - 233.2% / 81.5% | Increase | |||
| Liquidity preference | $2.84 - $142.52 / $33.20 | Increase | |||
| Conversion ratio | 1.3 - 3.0 / 2.6 | Increase | |||
| Discounted cash flow | Discount rate | 10.0% - 11.0% / 10.5% | Decrease | ||
| Growth rate | 3.5% | Increase | |||
| Probability rate | 6.3% | Increase | |||
| Preferred Securities | $ 795,684 | Market approach | Transaction price | $100.00 | Increase |
| Conversion ratio | 1.2 | 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, 2020, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. 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 futures contracts, foreign currency transactions, partnerships, passive foreign investment companies (PFIC) 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 | $7,329,678,681 |
| Gross unrealized depreciation | (227,230,743) |
| Net unrealized appreciation (depreciation) | $7,102,447,938 |
| Tax cost | $4,223,006,039 |
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 (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
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 $65,008,725 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. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Series Growth Company Fund | 822,744,254 | 2,876,045,580 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Series Growth Company Fund | $42,126 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
| Fidelity Series Growth Company Fund | Borrower | $84,151,692 | 1.58% | $48,108 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $370,096,110 in exchange for 21,282,122 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Other. During the prior period, the investment adviser reimbursed the Fund for certain losses in the amount of $52,624.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Amount | |
| Fidelity Series Growth Company Fund | $13,391 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower, at period end was $6,568,149. Total fees paid by the Fund to NFS, as lending agent, amounted to $82,846. 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 $107,107 from securities loaned to NFS, as affiliated borrower.
9. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $1,238.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder 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, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 |
|
| Actual | - %-C | $1,000.00 | $1,196.50 | $--D |
| Hypothetical-E | $1,000.00 | $1,025.00 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 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 LLC (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.Approval of Amended and Restated Advisory Contracts. At its November 2019 meeting, the Board unanimously determined to approve an amended and restated management contract and sub-advisory agreements (Amended and Restated Contracts) for a stub period of January 1, 2020 through January 31, 2020 in connection with a consolidation of certain of Fidelity's advisory businesses. The Board considered that, on or about January 1, 2020, FMR Co., Inc. (FMRC) expected to merge with and into FMR and, after the merger, FMR expected to redomicile as a Delaware limited liability company. The Board also approved the termination of the sub-advisory agreement with FMRC upon the completion of the merger. The Board noted that references to FMR in the Amended and Restated Contracts would be updated to reflect FMR's new form of organization and domicile. The Board also noted Fidelity's assurance that neither the planned consolidation nor the Amended and Restated Contracts will change the investment processes, the level or nature of services provided, the resources and personnel allocated, trading and compliance operations, or any fees paid by the fund.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 2020 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 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 March 31, 2023.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 funds' business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses. The Board considered that a joint ad hoc committee created by it and the boards of other Fidelity funds had recently been established, and met periodically, to evaluate potential fall-out benefits (PFOB Committee). The Board noted that the PFOB Committee, among other things: (i) discussed the legal framework surrounding potential fall-out benefits; (ii) reviewed the Board's responsibilities and approach to potential fall-out benefits; and (iii) reviewed practices employed by competitor funds regarding the review of potential fall-out benefits.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 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 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 flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) consideration of performance fees for additional funds; (iii) changes in Fidelity's non-fund businesses and the impact of such changes on the funds; (iv) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (v) the methodology with respect to evaluating competitive fund data and peer group classifications and fee comparisons; (vi) the expense structures for different funds and classes; (vii) information regarding other accounts managed by Fidelity, including collective investment trusts and separately managed accounts; and (viii) 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 Amended and Restated Contracts should be approved and the fund's Advisory Contracts should be renewed.Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
XS7-SANN-0720
1.968010.106
Fidelity Flex® Funds
Fidelity Flex® Mid Cap Growth Fund
Semi-Annual Report
May 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
|
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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2020
| % of fund's net assets | |
| Global Payments, Inc. | 4.5 |
| VeriSign, Inc. | 2.9 |
| Dollar General Corp. | 2.7 |
| ResMed, Inc. | 2.7 |
| Fiserv, Inc. | 2.5 |
| DexCom, Inc. | 2.5 |
| Centene Corp. | 2.4 |
| SBA Communications Corp. Class A | 2.3 |
| MSCI, Inc. | 2.2 |
| Lam Research Corp. | 2.1 |
| 26.8 |
Top Five Market Sectors as of May 31, 2020
| % of fund's net assets | |
| Information Technology | 40.2 |
| Health Care | 16.6 |
| Industrials | 13.4 |
| Consumer Discretionary | 9.7 |
| Financials | 6.9 |
Asset Allocation (% of fund's net assets)
| As of May 31, 2020* | ||
| Stocks | 97.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.1% | |
* Foreign investments - 2.4%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 97.9% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 2.6% | |||
| Entertainment - 2.6% | |||
| Electronic Arts, Inc. (a) | 60 | $7,373 | |
| Take-Two Interactive Software, Inc. (a) | 94 | 12,800 | |
| 20,173 | |||
| CONSUMER DISCRETIONARY - 9.7% | |||
| Distributors - 1.0% | |||
| Pool Corp. | 29 | 7,802 | |
| Diversified Consumer Services - 0.8% | |||
| Service Corp. International | 149 | 5,875 | |
| Hotels, Restaurants & Leisure - 0.7% | |||
| Domino's Pizza, Inc. | 13 | 5,016 | |
| Household Durables - 1.2% | |||
| D.R. Horton, Inc. | 29 | 1,604 | |
| Lennar Corp. Class A | 16 | 967 | |
| NVR, Inc. (a) | 2 | 6,443 | |
| 9,014 | |||
| Internet & Direct Marketing Retail - 1.3% | |||
| eBay, Inc. | 136 | 6,193 | |
| Expedia, Inc. | 47 | 3,736 | |
| 9,929 | |||
| Multiline Retail - 2.7% | |||
| Dollar General Corp. | 109 | 20,875 | |
| Specialty Retail - 1.6% | |||
| AutoZone, Inc. (a) | 11 | 12,626 | |
| Textiles, Apparel & Luxury Goods - 0.4% | |||
| Carter's, Inc. | 40 | 3,436 | |
| TOTAL CONSUMER DISCRETIONARY | 74,573 | ||
| CONSUMER STAPLES - 4.3% | |||
| Beverages - 0.7% | |||
| Brown-Forman Corp. Class B (non-vtg.) | 88 | 5,802 | |
| Food & Staples Retailing - 0.1% | |||
| Grocery Outlet Holding Corp. | 16 | 589 | |
| Food Products - 0.9% | |||
| The Hershey Co. | 52 | 7,055 | |
| Household Products - 1.6% | |||
| Church & Dwight Co., Inc. | 110 | 8,258 | |
| Reynolds Consumer Products, Inc. | 110 | 3,673 | |
| 11,931 | |||
| Personal Products - 1.0% | |||
| BellRing Brands, Inc. Class A (a) | 300 | 6,024 | |
| Estee Lauder Companies, Inc. Class A | 7 | 1,382 | |
| 7,406 | |||
| TOTAL CONSUMER STAPLES | 32,783 | ||
| FINANCIALS - 6.9% | |||
| Capital Markets - 4.8% | |||
| MarketAxess Holdings, Inc. | 21 | 10,680 | |
| Moody's Corp. | 20 | 5,348 | |
| MSCI, Inc. | 52 | 17,100 | |
| S&P Global, Inc. | 11 | 3,575 | |
| Tradeweb Markets, Inc. Class A | 3 | 198 | |
| 36,901 | |||
| Insurance - 2.1% | |||
| Allstate Corp. | 27 | 2,641 | |
| Arthur J. Gallagher & Co. | 42 | 3,960 | |
| Primerica, Inc. | 38 | 4,318 | |
| Progressive Corp. | 31 | 2,408 | |
| RenaissanceRe Holdings Ltd. | 14 | 2,350 | |
| 15,677 | |||
| TOTAL FINANCIALS | 52,578 | ||
| HEALTH CARE - 16.6% | |||
| Health Care Equipment & Supplies - 9.7% | |||
| DexCom, Inc. (a) | 50 | 18,916 | |
| Edwards Lifesciences Corp. (a) | 14 | 3,146 | |
| Intuitive Surgical, Inc. (a) | 4 | 2,320 | |
| Masimo Corp. (a) | 40 | 9,608 | |
| Quidel Corp. (a) | 23 | 4,025 | |
| ResMed, Inc. | 127 | 20,424 | |
| Teleflex, Inc. | 10 | 3,629 | |
| The Cooper Companies, Inc. | 4 | 1,268 | |
| West Pharmaceutical Services, Inc. | 49 | 10,586 | |
| 73,922 | |||
| Health Care Providers & Services - 2.4% | |||
| Centene Corp. (a) | 282 | 18,683 | |
| Health Care Technology - 1.6% | |||
| Veeva Systems, Inc. Class A (a) | 56 | 12,257 | |
| Life Sciences Tools & Services - 2.9% | |||
| Charles River Laboratories International, Inc. (a) | 56 | 10,061 | |
| Mettler-Toledo International, Inc. (a) | 15 | 11,925 | |
| 21,986 | |||
| TOTAL HEALTH CARE | 126,848 | ||
| INDUSTRIALS - 13.4% | |||
| Aerospace & Defense - 3.1% | |||
| Harris Corp. | 20 | 3,989 | |
| HEICO Corp. Class A | 52 | 4,365 | |
| Huntington Ingalls Industries, Inc. | 25 | 4,997 | |
| TransDigm Group, Inc. | 24 | 10,196 | |
| 23,547 | |||
| Air Freight & Logistics - 0.3% | |||
| C.H. Robinson Worldwide, Inc. | 32 | 2,596 | |
| Airlines - 0.6% | |||
| Southwest Airlines Co. | 138 | 4,430 | |
| Commercial Services & Supplies - 2.7% | |||
| Cintas Corp. | 47 | 11,654 | |
| Copart, Inc. (a) | 103 | 9,207 | |
| 20,861 | |||
| Electrical Equipment - 1.9% | |||
| AMETEK, Inc. | 81 | 7,429 | |
| Rockwell Automation, Inc. | 35 | 7,566 | |
| 14,995 | |||
| Industrial Conglomerates - 0.5% | |||
| Roper Technologies, Inc. | 10 | 3,938 | |
| Machinery - 2.4% | |||
| IDEX Corp. | 35 | 5,578 | |
| ITT, Inc. | 62 | 3,577 | |
| Otis Worldwide Corp. | 73 | 3,843 | |
| Toro Co. | 75 | 5,330 | |
| 18,328 | |||
| Professional Services - 1.7% | |||
| CoStar Group, Inc. (a) | 8 | 5,254 | |
| Verisk Analytics, Inc. | 44 | 7,598 | |
| 12,852 | |||
| Road & Rail - 0.2% | |||
| Old Dominion Freight Lines, Inc. | 8 | 1,369 | |
| TOTAL INDUSTRIALS | 102,916 | ||
| INFORMATION TECHNOLOGY - 40.2% | |||
| Electronic Equipment & Components - 5.1% | |||
| Amphenol Corp. Class A | 105 | 10,139 | |
| CDW Corp. | 67 | 7,431 | |
| Keysight Technologies, Inc. (a) | 123 | 13,300 | |
| Zebra Technologies Corp. Class A (a) | 30 | 7,840 | |
| 38,710 | |||
| IT Services - 14.7% | |||
| Adyen BV (a)(b) | 1 | 1,313 | |
| Black Knight, Inc. (a) | 58 | 4,465 | |
| Booz Allen Hamilton Holding Corp. Class A | 127 | 10,130 | |
| CACI International, Inc. Class A (a) | 28 | 7,022 | |
| EPAM Systems, Inc. (a) | 45 | 10,379 | |
| Fidelity National Information Services, Inc. | 23 | 3,193 | |
| Fiserv, Inc. (a) | 181 | 19,325 | |
| Global Payments, Inc. | 190 | 34,100 | |
| VeriSign, Inc. (a) | 103 | 22,558 | |
| 112,485 | |||
| Semiconductors & Semiconductor Equipment - 7.3% | |||
| Analog Devices, Inc. | 29 | 3,276 | |
| Broadcom, Inc. | 6 | 1,748 | |
| Cirrus Logic, Inc. (a) | 89 | 6,451 | |
| Entegris, Inc. | 124 | 7,425 | |
| KLA-Tencor Corp. | 84 | 14,781 | |
| Lam Research Corp. | 59 | 16,147 | |
| NXP Semiconductors NV | 34 | 3,267 | |
| Skyworks Solutions, Inc. | 24 | 2,845 | |
| 55,940 | |||
| Software - 13.1% | |||
| Adobe, Inc. (a) | 8 | 3,093 | |
| ANSYS, Inc. (a) | 41 | 11,603 | |
| Atlassian Corp. PLC (a) | 61 | 11,303 | |
| Cadence Design Systems, Inc. (a) | 151 | 13,785 | |
| Fortinet, Inc. (a) | 112 | 15,590 | |
| Intuit, Inc. | 8 | 2,323 | |
| Paycom Software, Inc. (a) | 31 | 9,214 | |
| RingCentral, Inc. (a) | 47 | 12,890 | |
| Slack Technologies, Inc. Class A (a) | 121 | 4,241 | |
| Synopsys, Inc. (a) | 38 | 6,875 | |
| The Trade Desk, Inc. (a) | 25 | 7,789 | |
| Tyler Technologies, Inc. (a) | 5 | 1,877 | |
| 100,583 | |||
| TOTAL INFORMATION TECHNOLOGY | 307,718 | ||
| MATERIALS - 0.3% | |||
| Chemicals - 0.3% | |||
| Sherwin-Williams Co. | 4 | 2,375 | |
| REAL ESTATE - 3.9% | |||
| Equity Real Estate Investment Trusts (REITs) - 3.9% | |||
| CoreSite Realty Corp. | 29 | 3,620 | |
| Equity Lifestyle Properties, Inc. | 133 | 8,286 | |
| SBA Communications Corp. Class A | 57 | 17,905 | |
| 29,811 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $493,010) | 749,775 | ||
| Money Market Funds - 0.6% | |||
| Fidelity Cash Central Fund 0.11% (c) | |||
| (Cost $4,234) | 4,233 | 4,234 | |
| TOTAL INVESTMENT IN SECURITIES - 98.5% | |||
| (Cost $497,244) | 754,009 | ||
| NET OTHER ASSETS (LIABILITIES) - 1.5% | 11,818 | ||
| NET ASSETS - 100% | $765,827 |
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 $1,313 or 0.2% 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 | $28 |
| Total | $28 |
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, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $20,173 | $20,173 | $-- | $-- |
| Consumer Discretionary | 74,573 | 74,573 | -- | -- |
| Consumer Staples | 32,783 | 32,783 | -- | -- |
| Financials | 52,578 | 52,578 | -- | -- |
| Health Care | 126,848 | 126,848 | -- | -- |
| Industrials | 102,916 | 102,916 | -- | -- |
| Information Technology | 307,718 | 307,718 | -- | -- |
| Materials | 2,375 | 2,375 | -- | -- |
| Real Estate | 29,811 | 29,811 | -- | -- |
| Money Market Funds | 4,234 | 4,234 | -- | -- |
| Total Investments in Securities: | $754,009 | $754,009 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| May 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $493,010) | $749,775 | |
| Fidelity Central Funds (cost $4,234) | 4,234 | |
| Total Investment in Securities (cost $497,244) | $754,009 | |
| Cash | 13,261 | |
| Receivable for investments sold | 10,917 | |
| Dividends receivable | 375 | |
| Receivable from investment adviser for expense reductions | 750 | |
| Total assets | 779,312 | |
| Liabilities | ||
| Payable for investments purchased | $12,736 | |
| Other payables and accrued expenses | 749 | |
| Total liabilities | 13,485 | |
| Net Assets | $765,827 | |
| Net Assets consist of: | ||
| Paid in capital | $523,978 | |
| Total accumulated earnings (loss) | 241,849 | |
| Net Assets | $765,827 | |
| Net Asset Value, offering price and redemption price per share ($765,827 ÷ 138,150 shares) | $5.54 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended May 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends | $2,981 | |
| Income from Fidelity Central Funds | 28 | |
| Total income | 3,009 | |
| Expenses | ||
| Independent trustees' fees and expenses | $3 | |
| Proxy | 750 | |
| Miscellaneous | 1 | |
| Total expenses before reductions | 754 | |
| Expense reductions | (750) | |
| Total expenses after reductions | 4 | |
| Net investment income (loss) | 3,005 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (9,858) | |
| Total net realized gain (loss) | (9,858) | |
| Change in net unrealized appreciation (depreciation) on investment securities | 47,024 | |
| Net gain (loss) | 37,166 | |
| Net increase (decrease) in net assets resulting from operations | $40,171 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $3,005 | $92,841 |
| Net realized gain (loss) | (9,858) | 1,182,995 |
| Change in net unrealized appreciation (depreciation) | 47,024 | 240,567 |
| Net increase (decrease) in net assets resulting from operations | 40,171 | 1,516,403 |
| Distributions to shareholders | (469,928) | (104,869) |
| Share transactions | ||
| Proceeds from sales of shares | – | 4,770,143 |
| Reinvestment of distributions | 469,928 | 104,869 |
| Cost of shares redeemed | – | (21,007,544) |
| Net increase (decrease) in net assets resulting from share transactions | 469,928 | (16,132,532) |
| Total increase (decrease) in net assets | 40,171 | (14,720,998) |
| Net Assets | ||
| Beginning of period | 725,656 | 15,446,654 |
| End of period | $765,827 | $725,656 |
| Other Information | ||
| Shares | ||
| Sold | – | 370,270 |
| Issued in reinvestment of distributions | 87,347 | 10,113 |
| Redeemed | – | (1,656,739) |
| Net increase (decrease) | 87,347 | (1,276,356) |
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, | |||
| 2020 | 2019 | 2018 | 2017 A | |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $14.28 | $11.64 | $11.25 | $10.00 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .02 | .12 | .13C | .10D |
| Net realized and unrealized gain (loss) | .49 | 2.60 | .35 | 1.15 |
| Total from investment operations | .51 | 2.72 | .48 | 1.25 |
| Distributions from net investment income | (1.53) | (.08) | (.09) | – |
| Distributions from net realized gain | (7.72) | – | – | – |
| Total distributions | (9.25) | (.08) | (.09) | – |
| Net asset value, end of period | $5.54 | $14.28 | $11.64 | $11.25 |
| Total ReturnE,F | 5.50% | 23.66% | 4.29% | 12.50% |
| Ratios to Average Net AssetsG,H | ||||
| Expenses before reductions | .11%I | - %J | - %J | - %J,K |
| Expenses net of fee waivers, if anyJ | - %I | -% | -% | - %K |
| Expenses net of all reductionsJ | - %I | -% | -% | - %K |
| Net investment income (loss) | .85%I | .98% | 1.11%C | 1.29%D,K |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $766 | $726 | $15,447 | $711 |
| Portfolio turnover rateL | 69%K | 83% | 88% | 38%K |
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 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 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 Proxy expenses are not annualized.
J Amount represents less than .005%.
K Annualized
L 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, 2020
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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. The aggregate value of investments by input level as of May 31, 2020 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, 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 futures 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 | $256,384 |
| Gross unrealized depreciation | (2,628) |
| Net unrealized appreciation (depreciation) | $253,756 |
| Tax cost | $500,253 |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Flex Mid Cap Growth Fund | 243,899 | 243,439 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services 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. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Flex Mid Cap Growth Fund | $5 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Amount | |
| Fidelity Flex Mid Cap Growth Fund | $1 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $750.
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, the investment adviser or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.
9. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder 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, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 |
|
| Actual | - %-C | $1,000.00 | $1,055.00 | $--D |
| Hypothetical-E | $1,000.00 | $1,025.00 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 LLC (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 2020 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 over the Internet and through telephone representatives, 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 ETFs with innovative structures, strategies and pricing 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 target date 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) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) 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. The Board reviewed the fund's absolute investment performance, as well as the fund's relative 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.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 funds' business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses. The Board considered that a joint ad hoc committee created by it and the boards of other Fidelity funds had recently been established, and met periodically, to evaluate potential fall-out benefits (PFOB Committee). The Board noted that the PFOB Committee, among other things: (i) discussed the legal framework surrounding potential fall-out benefits; (ii) reviewed the Board's responsibilities and approach to potential fall-out benefits; and (iii) reviewed practices employed by competitor funds regarding the review of potential fall-out benefits.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 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 flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) consideration of performance fees for additional funds; (iii) changes in Fidelity's non-fund businesses and the impact of such changes on the funds; (iv) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (v) the methodology with respect to evaluating competitive fund data and peer group classifications and fee comparisons; (vi) the expense structures for different funds and classes; (vii) information regarding other accounts managed by Fidelity, including collective investment trusts and separately managed accounts; and (viii) 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.Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
ZDG-SANN-0720
1.9881578.103
Fidelity® Growth Strategies K6 Fund
Semi-Annual Report
May 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
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You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
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Contents
|
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.
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2020
| % of fund's net assets | |
| Global Payments, Inc. | 4.5 |
| VeriSign, Inc. | 3.0 |
| Dollar General Corp. | 2.7 |
| ResMed, Inc. | 2.7 |
| Fiserv, Inc. | 2.5 |
| DexCom, Inc. | 2.5 |
| Centene Corp. | 2.4 |
| SBA Communications Corp. Class A | 2.4 |
| MSCI, Inc. | 2.2 |
| Lam Research Corp. | 2.1 |
| 27.0 |
Top Five Market Sectors as of May 31, 2020
| % of fund's net assets | |
| Information Technology | 40.4 |
| Health Care | 16.5 |
| Industrials | 13.6 |
| Consumer Discretionary | 10.1 |
| Financials | 7.0 |
Asset Allocation (% of fund's net assets)
| As of May 31, 2020* | ||
| Stocks | 98.1% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.9% | |
* Foreign investments – 2.3%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.1% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 2.6% | |||
| Entertainment - 2.6% | |||
| Electronic Arts, Inc. (a) | 13,600 | $1,671,168 | |
| Take-Two Interactive Software, Inc. (a) | 22,400 | 3,050,208 | |
| 4,721,376 | |||
| CONSUMER DISCRETIONARY - 10.1% | |||
| Distributors - 1.0% | |||
| Pool Corp. | 6,925 | 1,862,964 | |
| Diversified Consumer Services - 0.8% | |||
| Service Corp. International | 34,600 | 1,364,278 | |
| Hotels, Restaurants & Leisure - 0.6% | |||
| Domino's Pizza, Inc. | 2,900 | 1,118,936 | |
| Household Durables - 1.5% | |||
| D.R. Horton, Inc. | 6,800 | 376,040 | |
| Lennar Corp. Class A | 3,695 | 223,400 | |
| NVR, Inc. (a) | 620 | 1,997,398 | |
| 2,596,838 | |||
| Internet & Direct Marketing Retail - 1.3% | |||
| eBay, Inc. | 33,000 | 1,502,820 | |
| Expedia, Inc. | 10,900 | 866,332 | |
| 2,369,152 | |||
| Multiline Retail - 2.7% | |||
| Dollar General Corp. | 25,700 | 4,921,807 | |
| Specialty Retail - 1.7% | |||
| AutoZone, Inc. (a) | 2,700 | 3,099,222 | |
| Textiles, Apparel & Luxury Goods - 0.5% | |||
| Carter's, Inc. | 9,600 | 824,736 | |
| TOTAL CONSUMER DISCRETIONARY | 18,157,933 | ||
| CONSUMER STAPLES - 3.7% | |||
| Beverages - 0.8% | |||
| Brown-Forman Corp. Class B (non-vtg.) | 21,500 | 1,417,495 | |
| Food & Staples Retailing - 0.0% | |||
| Grocery Outlet Holding Corp. | 1,300 | 47,853 | |
| Food Products - 0.9% | |||
| The Hershey Co. | 12,200 | 1,655,296 | |
| Household Products - 1.6% | |||
| Church & Dwight Co., Inc. | 26,100 | 1,959,327 | |
| Reynolds Consumer Products, Inc. | 27,600 | 921,564 | |
| 2,880,891 | |||
| Personal Products - 0.4% | |||
| BellRing Brands, Inc. Class A (a) | 20,000 | 401,600 | |
| Estee Lauder Companies, Inc. Class A | 1,772 | 349,917 | |
| 751,517 | |||
| TOTAL CONSUMER STAPLES | 6,753,052 | ||
| FINANCIALS - 7.0% | |||
| Capital Markets - 5.0% | |||
| MarketAxess Holdings, Inc. | 5,300 | 2,695,527 | |
| Moody's Corp. | 4,900 | 1,310,309 | |
| MSCI, Inc. | 12,200 | 4,011,970 | |
| S&P Global, Inc. | 2,700 | 877,554 | |
| Tradeweb Markets, Inc. Class A | 1,218 | 80,339 | |
| 8,975,699 | |||
| Insurance - 2.0% | |||
| Allstate Corp. | 6,200 | 606,422 | |
| Arthur J. Gallagher & Co. | 9,800 | 923,944 | |
| Primerica, Inc. | 9,000 | 1,022,760 | |
| Progressive Corp. | 7,413 | 575,842 | |
| RenaissanceRe Holdings Ltd. | 3,200 | 537,152 | |
| 3,666,120 | |||
| TOTAL FINANCIALS | 12,641,819 | ||
| HEALTH CARE - 16.5% | |||
| Health Care Equipment & Supplies - 9.6% | |||
| DexCom, Inc. (a) | 11,801 | 4,464,436 | |
| Edwards Lifesciences Corp. (a) | 3,400 | 764,048 | |
| Intuitive Surgical, Inc. (a) | 953 | 552,769 | |
| Masimo Corp. (a) | 9,551 | 2,294,055 | |
| Quidel Corp. (a) | 5,147 | 900,725 | |
| ResMed, Inc. | 30,300 | 4,872,846 | |
| Teleflex, Inc. | 2,071 | 751,483 | |
| The Cooper Companies, Inc. | 1,000 | 316,980 | |
| West Pharmaceutical Services, Inc. | 10,900 | 2,354,836 | |
| 17,272,178 | |||
| Health Care Providers & Services - 2.4% | |||
| Centene Corp. (a) | 67,100 | 4,445,375 | |
| Health Care Technology - 1.6% | |||
| Veeva Systems, Inc. Class A (a) | 13,100 | 2,867,197 | |
| Life Sciences Tools & Services - 2.9% | |||
| Charles River Laboratories International, Inc. (a) | 13,400 | 2,407,444 | |
| Mettler-Toledo International, Inc. (a) | 3,579 | 2,845,305 | |
| 5,252,749 | |||
| TOTAL HEALTH CARE | 29,837,499 | ||
| INDUSTRIALS - 13.6% | |||
| Aerospace & Defense - 3.0% | |||
| Harris Corp. | 4,664 | 930,235 | |
| HEICO Corp. Class A | 11,700 | 982,215 | |
| Huntington Ingalls Industries, Inc. | 5,900 | 1,179,351 | |
| TransDigm Group, Inc. | 5,600 | 2,378,992 | |
| 5,470,793 | |||
| Air Freight & Logistics - 0.4% | |||
| C.H. Robinson Worldwide, Inc. | 7,800 | 632,814 | |
| Airlines - 0.6% | |||
| Southwest Airlines Co. | 32,290 | 1,036,509 | |
| Commercial Services & Supplies - 2.8% | |||
| Cintas Corp. | 11,300 | 2,801,948 | |
| Copart, Inc. (a) | 24,400 | 2,181,116 | |
| 4,983,064 | |||
| Electrical Equipment - 2.0% | |||
| AMETEK, Inc. | 19,700 | 1,806,687 | |
| Rockwell Automation, Inc. | 8,100 | 1,750,896 | |
| 3,557,583 | |||
| Industrial Conglomerates - 0.5% | |||
| Roper Technologies, Inc. | 2,400 | 945,120 | |
| Machinery - 2.5% | |||
| IDEX Corp. | 8,614 | 1,372,813 | |
| ITT, Inc. | 15,200 | 877,040 | |
| Nordson Corp. | 1,100 | 207,185 | |
| Otis Worldwide Corp. | 17,300 | 910,845 | |
| Toro Co. | 17,208 | 1,222,973 | |
| 4,590,856 | |||
| Professional Services - 1.6% | |||
| CoStar Group, Inc. (a) | 1,700 | 1,116,560 | |
| Verisk Analytics, Inc. | 10,600 | 1,830,408 | |
| 2,946,968 | |||
| Road & Rail - 0.2% | |||
| Old Dominion Freight Lines, Inc. | 2,200 | 376,398 | |
| TOTAL INDUSTRIALS | 24,540,105 | ||
| INFORMATION TECHNOLOGY - 40.4% | |||
| Electronic Equipment & Components - 5.3% | |||
| Amphenol Corp. Class A | 25,800 | 2,491,248 | |
| CDW Corp. | 19,200 | 2,129,472 | |
| Keysight Technologies, Inc. (a) | 28,800 | 3,114,144 | |
| Zebra Technologies Corp. Class A (a) | 7,200 | 1,881,504 | |
| 9,616,368 | |||
| IT Services - 14.6% | |||
| Adyen BV (a)(b) | 106 | 139,198 | |
| Black Knight, Inc. (a) | 13,000 | 1,000,740 | |
| Booz Allen Hamilton Holding Corp. Class A | 30,000 | 2,392,800 | |
| CACI International, Inc. Class A (a) | 6,500 | 1,630,070 | |
| EPAM Systems, Inc. (a) | 10,300 | 2,375,592 | |
| Fidelity National Information Services, Inc. | 5,500 | 763,565 | |
| Fiserv, Inc. (a) | 42,600 | 4,548,402 | |
| Global Payments, Inc. | 44,673 | 8,018,356 | |
| VeriSign, Inc. (a) | 24,800 | 5,431,448 | |
| 26,300,171 | |||
| Semiconductors & Semiconductor Equipment - 7.3% | |||
| Analog Devices, Inc. | 6,700 | 756,765 | |
| Broadcom, Inc. | 1,300 | 378,651 | |
| Cirrus Logic, Inc. (a) | 20,200 | 1,464,096 | |
| Entegris, Inc. | 29,290 | 1,753,885 | |
| KLA-Tencor Corp. | 20,300 | 3,571,988 | |
| Lam Research Corp. | 14,000 | 3,831,380 | |
| NXP Semiconductors NV | 8,200 | 788,020 | |
| Skyworks Solutions, Inc. | 5,700 | 675,678 | |
| 13,220,463 | |||
| Software - 13.2% | |||
| Adobe, Inc. (a) | 1,900 | 734,540 | |
| ANSYS, Inc. (a) | 9,700 | 2,745,100 | |
| Atlassian Corp. PLC (a) | 14,400 | 2,668,320 | |
| Cadence Design Systems, Inc. (a) | 35,235 | 3,216,603 | |
| Fortinet, Inc. (a) | 26,200 | 3,647,040 | |
| Intuit, Inc. | 1,995 | 579,188 | |
| Paycom Software, Inc. (a) | 7,300 | 2,169,779 | |
| RingCentral, Inc. (a) | 11,200 | 3,071,600 | |
| Slack Technologies, Inc. Class A (a) | 27,350 | 958,618 | |
| Synopsys, Inc. (a) | 9,407 | 1,701,820 | |
| The Trade Desk, Inc. (a)(c) | 5,900 | 1,838,204 | |
| Tyler Technologies, Inc. (a) | 1,100 | 412,841 | |
| 23,743,653 | |||
| TOTAL INFORMATION TECHNOLOGY | 72,880,655 | ||
| MATERIALS - 0.3% | |||
| Chemicals - 0.3% | |||
| Sherwin-Williams Co. | 988 | 586,724 | |
| REAL ESTATE - 3.9% | |||
| Equity Real Estate Investment Trusts (REITs) - 3.9% | |||
| CoreSite Realty Corp. | 6,500 | 811,330 | |
| Equity Lifestyle Properties, Inc. | 31,200 | 1,943,760 | |
| SBA Communications Corp. Class A | 13,500 | 4,240,755 | |
| 6,995,845 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $125,782,086) | 177,115,008 | ||
| Money Market Funds - 2.8% | |||
| Fidelity Cash Central Fund 0.11% (d) | 3,986,782 | 3,987,579 | |
| Fidelity Securities Lending Cash Central Fund 0.10% (d)(e) | 1,034,412 | 1,034,516 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $5,022,095) | 5,022,095 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.9% | |||
| (Cost $130,804,181) | 182,137,103 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.9)% | (1,648,942) | ||
| NET ASSETS - 100% | $180,488,161 |
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 $139,198 or 0.1% of net assets.
(c) Security or a portion of the security is on loan at period end.
(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 | $19,809 |
| Fidelity Securities Lending Cash Central Fund | 642 |
| Total | $20,451 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $4,721,376 | $4,721,376 | $-- | $-- |
| Consumer Discretionary | 18,157,933 | 18,157,933 | -- | -- |
| Consumer Staples | 6,753,052 | 6,753,052 | -- | -- |
| Financials | 12,641,819 | 12,641,819 | -- | -- |
| Health Care | 29,837,499 | 29,837,499 | -- | -- |
| Industrials | 24,540,105 | 24,540,105 | -- | -- |
| Information Technology | 72,880,655 | 72,880,655 | -- | -- |
| Materials | 586,724 | 586,724 | -- | -- |
| Real Estate | 6,995,845 | 6,995,845 | -- | -- |
| Money Market Funds | 5,022,095 | 5,022,095 | -- | -- |
| Total Investments in Securities: | $182,137,103 | $182,137,103 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| May 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $1,059,304) — See accompanying schedule: Unaffiliated issuers (cost $125,782,086) | $177,115,008 | |
| Fidelity Central Funds (cost $5,022,095) | 5,022,095 | |
| Total Investment in Securities (cost $130,804,181) | $182,137,103 | |
| Receivable for investments sold | 2,611,450 | |
| Receivable for fund shares sold | 228,382 | |
| Dividends receivable | 89,098 | |
| Distributions receivable from Fidelity Central Funds | 441 | |
| Total assets | 185,066,474 | |
| Liabilities | ||
| Payable for investments purchased | $3,400,386 | |
| Payable for fund shares redeemed | 78,399 | |
| Accrued management fee | 63,851 | |
| Other payables and accrued expenses | 1,227 | |
| Collateral on securities loaned | 1,034,450 | |
| Total liabilities | 4,578,313 | |
| Net Assets | $180,488,161 | |
| Net Assets consist of: | ||
| Paid in capital | $140,564,941 | |
| Total accumulated earnings (loss) | 39,923,220 | |
| Net Assets | $180,488,161 | |
| Net Asset Value, offering price and redemption price per share ($180,488,161 ÷ 12,734,701 shares) | $14.17 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended May 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends | $706,377 | |
| Income from Fidelity Central Funds (including $642 from security lending) | 20,451 | |
| Total income | 726,828 | |
| Expenses | ||
| Management fee | $381,142 | |
| Independent trustees' fees and expenses | 481 | |
| Miscellaneous | 1,379 | |
| Total expenses before reductions | 383,002 | |
| Expense reductions | (1,756) | |
| Total expenses after reductions | 381,246 | |
| Net investment income (loss) | 345,582 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (6,673,242) | |
| Fidelity Central Funds | (77) | |
| Total net realized gain (loss) | (6,673,319) | |
| Change in net unrealized appreciation (depreciation) on investment securities | 12,279,155 | |
| Net gain (loss) | 5,605,836 | |
| Net increase (decrease) in net assets resulting from operations | $5,951,418 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended May 31, 2020 (Unaudited) | Year ended November 30, 2019 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $345,582 | $683,718 |
| Net realized gain (loss) | (6,673,319) | (1,072,378) |
| Change in net unrealized appreciation (depreciation) | 12,279,155 | 28,944,734 |
| Net increase (decrease) in net assets resulting from operations | 5,951,418 | 28,556,074 |
| Distributions to shareholders | (856,685) | (1,016,166) |
| Share transactions | ||
| Proceeds from sales of shares | 30,150,739 | 34,837,542 |
| Reinvestment of distributions | 856,685 | 1,016,166 |
| Cost of shares redeemed | (21,305,200) | (30,695,019) |
| Net increase (decrease) in net assets resulting from share transactions | 9,702,224 | 5,158,689 |
| Total increase (decrease) in net assets | 14,796,957 | 32,698,597 |
| Net Assets | ||
| Beginning of period | 165,691,204 | 132,992,607 |
| End of period | $180,488,161 | $165,691,204 |
| Other Information | ||
| Shares | ||
| Sold | 2,227,033 | 2,806,515 |
| Issued in reinvestment of distributions | 61,676 | 101,922 |
| Redeemed | (1,653,844) | (2,673,153) |
| Net increase (decrease) | 634,865 | 235,284 |
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, | |||
| 2020 | 2019 | 2018 | 2017 A | |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $13.69 | $11.21 | $10.95 | $10.00 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .03 | .06C | .09D | .04 |
| Net realized and unrealized gain (loss) | .52 | 2.51 | .20 | .91 |
| Total from investment operations | .55 | 2.57 | .29 | .95 |
| Distributions from net investment income | (.07) | (.09) | (.03) | – |
| Total distributions | (.07) | (.09) | (.03) | – |
| Net asset value, end of period | $14.17 | $13.69 | $11.21 | $10.95 |
| Total ReturnE,F | 4.02% | 23.18% | 2.68% | 9.50% |
| Ratios to Average Net AssetsG,H | ||||
| Expenses before reductions | .45%I | .45% | .45% | .45%I |
| Expenses net of fee waivers, if any | .45%I | .45% | .45% | .45%I |
| Expenses net of all reductions | .45%I | .45% | .45% | .45%I |
| Net investment income (loss) | .41%I | .49%C | .76%D | .81%I |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $180,488 | $165,691 | $132,993 | $80,512 |
| Portfolio turnover rateJ | 61%I | 66%K | 51%K | 56%I,K |
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 $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .39%.
D 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%.
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. 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.
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, 2020
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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. The aggregate value of investments by input level as of May 31, 2020 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, 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 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 | $52,140,768 |
| Gross unrealized depreciation | (856,017) |
| Net unrealized appreciation (depreciation) | $51,284,751 |
| Tax cost | $130,852,352 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(4,636,261) |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Growth Strategies K6 Fund | 59,900,324 | 50,520,715 |
Prior Fiscal Year Unaffiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $13,010,668 in exchange for 1,028,736 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 LLC (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. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Growth Strategies K6 Fund | $835 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2,174.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Amount | |
| Fidelity Growth Strategies K6 Fund | $207 |
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, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. Total fees paid by the Fund to NFS, as lending agent, amounted to $63. 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. During the period, there were no securities loaned to NFS.
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 $1,726 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $30.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder 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, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 |
|
| Actual | .45% | $1,000.00 | $1,040.20 | $2.30 |
| Hypothetical-C | $1,000.00 | $1,022.75 | $2.28 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (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 LLC (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 2020 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 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 provided by and the profits realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are 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 over the Internet and through telephone representatives, 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 ETFs with innovative structures, strategies and pricing 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 target date 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) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) 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, 2019, 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
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
FEGK6-SANN-0720
1.9883994.103
Fidelity® Growth Company K6 Fund
Semi-Annual Report
May 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2020
| % of fund's net assets | |
| NVIDIA Corp. | 7.2 |
| Amazon.com, Inc. | 6.1 |
| Apple, Inc. | 5.5 |
| Microsoft Corp. | 4.5 |
| Shopify, Inc. Class A | 4.0 |
| lululemon athletica, Inc. | 3.6 |
| Alphabet, Inc. Class A | 3.3 |
| Salesforce.com, Inc. | 3.1 |
| Facebook, Inc. Class A | 2.1 |
| Moderna, Inc. | 2.1 |
| 41.5 |
Top Five Market Sectors as of May 31, 2020
| % of fund's net assets | |
| Information Technology | 39.1 |
| Consumer Discretionary | 20.8 |
| Health Care | 19.0 |
| Communication Services | 11.2 |
| Industrials | 3.4 |
Asset Allocation (% of fund's net assets)
| As of May 31, 2020* | ||
| Stocks | 98.9% | |
| Convertible Securities | 0.2% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.9% | |
* Foreign investments - 11.6%
Schedule of Investments May 31, 2020 (Unaudited)
Showing Percentage of Net Assets
| Common Stocks - 98.8% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 11.2% | |||
| Diversified Telecommunication Services - 0.0% | |||
| Verizon Communications, Inc. | 22,103 | $1,268,270 | |
| Entertainment - 2.8% | |||
| Activision Blizzard, Inc. | 234,802 | 16,901,048 | |
| Electronic Arts, Inc. (a) | 44,682 | 5,490,524 | |
| Lions Gate Entertainment Corp. Class A (a)(b) | 6,263 | 49,916 | |
| NetEase, Inc. ADR | 14,256 | 5,458,622 | |
| Netflix, Inc. (a) | 83,624 | 35,099,502 | |
| Nintendo Co. Ltd. | 5,382 | 2,188,208 | |
| Roku, Inc. Class A (a)(b) | 301,162 | 32,980,251 | |
| Sea Ltd. ADR (a) | 186,275 | 14,864,745 | |
| The Walt Disney Co. | 16,340 | 1,916,682 | |
| 114,949,498 | |||
| Interactive Media & Services - 7.4% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 92,764 | 132,979,049 | |
| Class C (a) | 53,595 | 76,582,967 | |
| Facebook, Inc. Class A (a) | 382,092 | 86,005,088 | |
| Match Group, Inc. (a)(b) | 15,456 | 1,376,202 | |
| Snap, Inc. Class A (a) | 96,430 | 1,826,384 | |
| Tencent Holdings Ltd. | 63,331 | 3,429,745 | |
| Twitter, Inc. (a) | 40,672 | 1,259,612 | |
| 303,459,047 | |||
| Media - 0.2% | |||
| Comcast Corp. Class A | 158,099 | 6,260,720 | |
| Wireless Telecommunication Services - 0.8% | |||
| T-Mobile U.S., Inc. (a) | 299,792 | 29,991,192 | |
| TOTAL COMMUNICATION SERVICES | 455,928,727 | ||
| CONSUMER DISCRETIONARY - 20.8% | |||
| Automobiles - 1.5% | |||
| Tesla, Inc. (a) | 74,783 | 62,443,805 | |
| Hotels, Restaurants & Leisure - 1.0% | |||
| Chipotle Mexican Grill, Inc. (a) | 5,286 | 5,306,668 | |
| Hyatt Hotels Corp. Class A | 14,762 | 813,239 | |
| Marriott International, Inc. Class A | 71,325 | 6,312,263 | |
| McDonald's Corp. | 342 | 63,721 | |
| Papa John's International, Inc. | 8,182 | 637,296 | |
| Penn National Gaming, Inc. (a) | 158,268 | 5,192,773 | |
| Planet Fitness, Inc. (a) | 17,640 | 1,140,073 | |
| Shake Shack, Inc. Class A (a)(b) | 9,551 | 530,558 | |
| Starbucks Corp. | 164,849 | 12,856,574 | |
| Yum China Holdings, Inc. | 98,596 | 4,568,939 | |
| Yum! Brands, Inc. | 35,180 | 3,156,701 | |
| 40,578,805 | |||
| Household Durables - 0.9% | |||
| D.R. Horton, Inc. | 93,276 | 5,158,163 | |
| KB Home | 89,216 | 2,951,265 | |
| Lennar Corp. Class A | 365,024 | 22,069,351 | |
| NVR, Inc. (a) | 555 | 1,787,994 | |
| Toll Brothers, Inc. | 85,771 | 2,771,261 | |
| 34,738,034 | |||
| Internet & Direct Marketing Retail - 8.9% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 90,765 | 18,823,753 | |
| Amazon.com, Inc. (a) | 102,110 | 249,390,401 | |
| Etsy, Inc. (a) | 13,206 | 1,069,422 | |
| Farfetch Ltd. Class A (a) | 134,697 | 1,866,900 | |
| JD.com, Inc. sponsored ADR (a) | 214,608 | 11,659,653 | |
| Ocado Group PLC (a) | 456,804 | 12,360,591 | |
| The Booking Holdings, Inc. (a) | 5,790 | 9,492,242 | |
| The RealReal, Inc. | 105,262 | 1,411,563 | |
| Wayfair LLC Class A (a) | 335,309 | 57,522,259 | |
| 363,596,784 | |||
| Leisure Products - 0.2% | |||
| Callaway Golf Co. (b) | 47,201 | 723,119 | |
| Peloton Interactive, Inc. Class A (a) | 154,372 | 6,512,955 | |
| 7,236,074 | |||
| Multiline Retail - 0.4% | |||
| Dollar General Corp. | 21,265 | 4,072,460 | |
| Dollar Tree, Inc. (a) | 34,629 | 3,389,140 | |
| Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 68,660 | 6,278,957 | |
| Target Corp. | 29,328 | 3,587,694 | |
| 17,328,251 | |||
| Specialty Retail - 2.2% | |||
| Carvana Co. Class A (a)(b) | 128,200 | 11,920,036 | |
| Lowe's Companies, Inc. | 163,496 | 21,311,704 | |
| RH (a)(b) | 77,352 | 16,776,875 | |
| The Home Depot, Inc. | 123,838 | 30,771,266 | |
| TJX Companies, Inc. | 195,436 | 10,311,203 | |
| 91,091,084 | |||
| Textiles, Apparel & Luxury Goods - 5.7% | |||
| adidas AG | 129,980 | 34,471,670 | |
| Canada Goose Holdings, Inc. (a)(b) | 111,837 | 2,181,750 | |
| Deckers Outdoor Corp. (a) | 20,458 | 3,734,199 | |
| lululemon athletica, Inc. (a) | 487,634 | 146,336,525 | |
| NIKE, Inc. Class B | 179,536 | 17,698,659 | |
| On Holding AG (c)(d) | 128 | 1,190,964 | |
| Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 774,993 | 24,272,781 | |
| Under Armour, Inc. Class C (non-vtg.) (a) | 35,625 | 280,013 | |
| VF Corp. | 27,273 | 1,530,015 | |
| 231,696,576 | |||
| TOTAL CONSUMER DISCRETIONARY | 848,709,413 | ||
| CONSUMER STAPLES - 2.8% | |||
| Beverages - 1.3% | |||
| Boston Beer Co., Inc. Class A (a) | 9,386 | 5,300,556 | |
| Keurig Dr. Pepper, Inc. (b) | 335,439 | 9,365,457 | |
| Monster Beverage Corp. (a) | 297,805 | 21,415,158 | |
| PepsiCo, Inc. | 34,401 | 4,525,452 | |
| The Coca-Cola Co. | 293,618 | 13,706,088 | |
| 54,312,711 | |||
| Food & Staples Retailing - 1.0% | |||
| Costco Wholesale Corp. | 63,014 | 19,437,929 | |
| Grocery Outlet Holding Corp. | 105,400 | 3,879,774 | |
| Kroger Co. | 396,335 | 12,928,448 | |
| Performance Food Group Co. (a) | 120,931 | 3,222,811 | |
| Sysco Corp. | 42,721 | 2,356,490 | |
| 41,825,452 | |||
| Food Products - 0.2% | |||
| Bunge Ltd. | 48,689 | 1,899,845 | |
| Darling Ingredients, Inc.(a) | 103,745 | 2,418,296 | |
| Freshpet, Inc. (a) | 28,187 | 2,175,473 | |
| Mondelez International, Inc. | 20,630 | 1,075,236 | |
| 7,568,850 | |||
| Household Products - 0.1% | |||
| Church & Dwight Co., Inc. | 29,234 | 2,194,596 | |
| Colgate-Palmolive Co. | 23,943 | 1,731,797 | |
| Kimberly-Clark Corp. | 6,147 | 869,432 | |
| Procter & Gamble Co. | 3,836 | 444,669 | |
| 5,240,494 | |||
| Personal Products - 0.0% | |||
| Unilever NV | 10,716 | 553,780 | |
| Tobacco - 0.2% | |||
| Altria Group, Inc. | 149,179 | 5,825,440 | |
| TOTAL CONSUMER STAPLES | 115,326,727 | ||
| ENERGY - 0.7% | |||
| Oil, Gas & Consumable Fuels - 0.7% | |||
| EOG Resources, Inc. | 30,732 | 1,566,410 | |
| Hess Corp. | 290,531 | 13,791,507 | |
| Noble Energy, Inc. | 197,472 | 1,723,931 | |
| Reliance Industries Ltd. | 498,700 | 9,659,365 | |
| Reliance Industries Ltd. rights (a) | 33,246 | 97,621 | |
| Valero Energy Corp. | 29,455 | 1,962,881 | |
| 28,801,715 | |||
| FINANCIALS - 1.4% | |||
| Banks - 0.6% | |||
| Bank of America Corp. | 166,109 | 4,006,549 | |
| HDFC Bank Ltd. sponsored ADR | 163,146 | 6,824,397 | |
| JPMorgan Chase & Co. | 150,783 | 14,672,694 | |
| 25,503,640 | |||
| Capital Markets - 0.7% | |||
| BlackRock, Inc. Class A | 19,258 | 10,180,549 | |
| BM&F BOVESPA SA | 168,100 | 1,434,881 | |
| Charles Schwab Corp. | 360,721 | 12,953,491 | |
| Edelweiss Financial Services Ltd. | 358,600 | 218,418 | |
| T. Rowe Price Group, Inc. | 4,761 | 575,605 | |
| The Blackstone Group LP | 8,394 | 476,779 | |
| 25,839,723 | |||
| Consumer Finance - 0.1% | |||
| American Express Co. | 44,298 | 4,211,411 | |
| Discover Financial Services | 14,651 | 696,069 | |
| 4,907,480 | |||
| TOTAL FINANCIALS | 56,250,843 | ||
| HEALTH CARE - 18.8% | |||
| Biotechnology - 11.8% | |||
| AbbVie, Inc. | 46,036 | 4,266,156 | |
| ACADIA Pharmaceuticals, Inc. (a) | 672,059 | 33,387,891 | |
| ADC Therapeutics SA (a) | 50,600 | 1,869,670 | |
| Agios Pharmaceuticals, Inc. (a) | 95,537 | 4,943,084 | |
| Alector, Inc. (a)(b) | 86,903 | 2,841,728 | |
| Alexion Pharmaceuticals, Inc. (a) | 5,626 | 674,557 | |
| Allogene Therapeutics, Inc. (a)(b) | 92,096 | 4,435,343 | |
| Alnylam Pharmaceuticals, Inc. (a) | 442,385 | 59,841,419 | |
| Amgen, Inc. | 75,025 | 17,233,243 | |
| AnaptysBio, Inc. (a) | 2,650 | 50,562 | |
| Arcutis Biotherapeutics, Inc. (a) | 44,152 | 1,481,300 | |
| Argenx SE ADR (a) | 37,004 | 8,114,977 | |
| Arrowhead Pharmaceuticals, Inc. (a) | 14,499 | 467,448 | |
| Ascendis Pharma A/S sponsored ADR (a) | 3,199 | 465,423 | |
| aTyr Pharma, Inc. | 37,325 | 139,596 | |
| Axcella Health, Inc. | 243,432 | 1,460,592 | |
| BeiGene Ltd. ADR (a) | 162,415 | 26,886,179 | |
| Biogen, Inc. (a) | 1,226 | 376,492 | |
| BioNTech SE ADR (a) | 227,735 | 11,279,715 | |
| Blueprint Medicines Corp. (a) | 1,414 | 92,108 | |
| Bridgebio Pharma, Inc. (b) | 23,291 | 683,125 | |
| Calyxt, Inc. (a) | 114,171 | 495,502 | |
| Cellectis SA sponsored ADR (a) | 33,227 | 613,703 | |
| ChemoCentryx, Inc. (a) | 228,278 | 14,242,264 | |
| Constellation Pharmaceuticals, Inc. (a) | 27,688 | 983,755 | |
| Crinetics Pharmaceuticals, Inc. (a) | 25,615 | 418,549 | |
| CRISPR Therapeutics AG (a)(b) | 5,167 | 333,685 | |
| Cyclerion Therapeutics, Inc. (a) | 24,173 | 96,209 | |
| Denali Therapeutics, Inc. (a) | 43,598 | 1,213,332 | |
| Eidos Therapeutics, Inc. (a) | 5,172 | 252,963 | |
| Evelo Biosciences, Inc. (a)(b) | 104,924 | 458,518 | |
| Exact Sciences Corp. (a)(b) | 18,350 | 1,575,898 | |
| Exelixis, Inc. (a) | 96,931 | 2,395,165 | |
| Fate Therapeutics, Inc. (a) | 258,035 | 8,368,075 | |
| G1 Therapeutics, Inc. (a) | 26,074 | 442,476 | |
| Homology Medicines, Inc. (a) | 70,017 | 997,042 | |
| Immunomedics, Inc. (a) | 60,545 | 2,033,707 | |
| Intercept Pharmaceuticals, Inc. (a) | 14,151 | 1,022,551 | |
| Ionis Pharmaceuticals, Inc. (a) | 708,602 | 39,830,518 | |
| Iovance Biotherapeutics, Inc.(a) | 34,664 | 1,112,368 | |
| Ironwood Pharmaceuticals, Inc. Class A (a) | 216,309 | 2,104,687 | |
| Karuna Therapeutics, Inc. (a) | 116,859 | 10,968,386 | |
| Keros Therapeutics, Inc. | 20,562 | 590,952 | |
| Lexicon Pharmaceuticals, Inc. (a)(b) | 388,206 | 741,473 | |
| Macrogenics, Inc. (a) | 8,248 | 158,692 | |
| Mirati Therapeutics, Inc. (a) | 9,726 | 964,722 | |
| Moderna, Inc. (a)(b) | 1,397,330 | 85,935,795 | |
| Momenta Pharmaceuticals, Inc. (a) | 550,130 | 17,318,092 | |
| Morphic Holding, Inc. | 61,428 | 1,276,474 | |
| ORIC Pharmaceuticals, Inc. (a) | 67,784 | 1,967,092 | |
| Passage Bio, Inc. | 21,841 | 481,157 | |
| Principia Biopharma, Inc. (a) | 23,532 | 1,503,459 | |
| Protagonist Therapeutics, Inc. (a) | 78,535 | 1,298,184 | |
| Prothena Corp. PLC (a) | 68,502 | 730,231 | |
| PTC Therapeutics, Inc. (a) | 43,740 | 2,218,055 | |
| Regeneron Pharmaceuticals, Inc. (a) | 43,710 | 26,785,925 | |
| Repligen Corp. (a)(b) | 3,115 | 407,972 | |
| Revolution Medicines, Inc. | 55,806 | 1,714,360 | |
| Rigel Pharmaceuticals, Inc. (a) | 821,268 | 1,605,579 | |
| Rubius Therapeutics, Inc. (a)(b) | 473,740 | 3,055,623 | |
| Sage Therapeutics, Inc. (a) | 193,585 | 6,914,856 | |
| Sarepta Therapeutics, Inc. (a) | 26,749 | 4,073,070 | |
| Scholar Rock Holding Corp. (a) | 75,717 | 1,393,193 | |
| Seres Therapeutics, Inc. (a)(b) | 211,311 | 1,160,097 | |
| Syros Pharmaceuticals, Inc. (a) | 219,788 | 2,151,725 | |
| Syros Pharmaceuticals, Inc. warrants 10/10/22 (a) | 2,087 | 7,090 | |
| TG Therapeutics, Inc. (a) | 27,190 | 507,094 | |
| Translate Bio, Inc. (a) | 248,450 | 5,147,884 | |
| Turning Point Therapeutics, Inc. (a) | 16,837 | 1,165,962 | |
| Ultragenyx Pharmaceutical, Inc. (a) | 7,474 | 511,670 | |
| uniQure B.V. (a) | 81,996 | 5,506,851 | |
| UNITY Biotechnology, Inc. (a)(b) | 233,080 | 1,906,594 | |
| Vertex Pharmaceuticals, Inc. (a) | 51,226 | 14,751,039 | |
| Xencor, Inc. (a) | 114,604 | 3,466,771 | |
| Zai Lab Ltd. ADR (a) | 156,493 | 11,643,079 | |
| Zentalis Pharmaceuticals, Inc. | 19,002 | 992,284 | |
| 481,003,057 | |||
| Health Care Equipment & Supplies - 3.8% | |||
| Abbott Laboratories | 59,366 | 5,635,021 | |
| Boston Scientific Corp. (a) | 170,949 | 6,494,353 | |
| Danaher Corp. | 122,605 | 20,427,219 | |
| DexCom, Inc. (a) | 75,787 | 28,670,980 | |
| Genmark Diagnostics, Inc. (a) | 118,142 | 1,121,168 | |
| Inari Medical, Inc. | 6,000 | 264,000 | |
| Insulet Corp. (a) | 173,023 | 32,626,947 | |
| Intuitive Surgical, Inc. (a) | 37,150 | 21,548,115 | |
| Novocure Ltd. (a) | 400,328 | 26,994,117 | |
| Penumbra, Inc. (a) | 45,909 | 7,915,630 | |
| Presbia PLC (a) | 83,122 | 1,662 | |
| Shockwave Medical, Inc. (a) | 63,099 | 2,776,987 | |
| Stryker Corp. | 13,762 | 2,693,636 | |
| 157,169,835 | |||
| Health Care Providers & Services - 1.1% | |||
| 1Life Healthcare, Inc. (a) | 27,062 | 874,103 | |
| Alignment Healthcare Partners unit (c)(d) | 93,697 | 1,667,647 | |
| Centene Corp. (a) | 52,168 | 3,456,130 | |
| Humana, Inc. | 5,872 | 2,411,337 | |
| Laboratory Corp. of America Holdings (a) | 4,405 | 772,285 | |
| UnitedHealth Group, Inc. | 118,219 | 36,039,062 | |
| 45,220,564 | |||
| Health Care Technology - 0.1% | |||
| Castlight Health, Inc. Class B (a) | 105,579 | 83,165 | |
| Teladoc Health, Inc. (a) | 12,122 | 2,109,955 | |
| 2,193,120 | |||
| Life Sciences Tools & Services - 0.8% | |||
| 10X Genomics, Inc. (a)(b) | 200,978 | 15,670,255 | |
| Adaptive Biotechnologies Corp. | 11,889 | 460,104 | |
| Bruker Corp. | 27,894 | 1,207,252 | |
| Nanostring Technologies, Inc. (a) | 13,308 | 406,293 | |
| Thermo Fisher Scientific, Inc. | 28,887 | 10,087,052 | |
| Wuxi Biologics (Cayman), Inc. (a)(e) | 336,616 | 5,315,759 | |
| 33,146,715 | |||
| Pharmaceuticals - 1.2% | |||
| Akcea Therapeutics, Inc. (a)(b) | 448,049 | 6,675,930 | |
| Bristol-Myers Squibb Co. | 102,443 | 6,117,896 | |
| Dragonfly Therapeutics, Inc. (c)(d) | 31,376 | 788,165 | |
| Fulcrum Therapeutics, Inc. (b) | 72,659 | 1,446,641 | |
| Hansoh Pharmaceutical Group Co. Ltd. (e) | 230,000 | 1,005,035 | |
| Intra-Cellular Therapies, Inc. (a) | 246,414 | 5,145,124 | |
| Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 4,680 | 51,605 | |
| Kaleido Biosciences, Inc. (a)(b) | 96,650 | 697,813 | |
| MyoKardia, Inc. (a) | 151,152 | 15,461,338 | |
| Nektar Therapeutics (a)(b) | 394,320 | 8,556,744 | |
| OptiNose, Inc. (a)(b) | 187,468 | 809,862 | |
| Sienna Biopharmaceuticals, Inc. (a) | 143,356 | 2,136 | |
| Theravance Biopharma, Inc. (a) | 144,506 | 3,648,777 | |
| 50,407,066 | |||
| TOTAL HEALTH CARE | 769,140,357 | ||
| INDUSTRIALS - 3.4% | |||
| Aerospace & Defense - 0.2% | |||
| Lockheed Martin Corp. | 7,474 | 2,903,201 | |
| The Boeing Co. | 30,427 | 4,437,778 | |
| 7,340,979 | |||
| Air Freight & Logistics - 0.2% | |||
| United Parcel Service, Inc. Class B | 73,848 | 7,363,384 | |
| Airlines - 0.8% | |||
| Delta Air Lines, Inc. | 36,710 | 925,459 | |
| JetBlue Airways Corp. (a)(b) | 429,838 | 4,328,469 | |
| Ryanair Holdings PLC sponsored ADR (a) | 36,819 | 2,642,500 | |
| Southwest Airlines Co. | 362,235 | 11,627,744 | |
| Spirit Airlines, Inc. (a) | 105,450 | 1,365,578 | |
| United Airlines Holdings, Inc. (a) | 70,327 | 1,971,969 | |
| Wizz Air Holdings PLC (a)(e) | 219,300 | 8,883,404 | |
| 31,745,123 | |||
| Building Products - 0.0% | |||
| Trane Technologies PLC | 33,987 | 3,065,967 | |
| Commercial Services & Supplies - 0.0% | |||
| HomeServe PLC | 33,800 | 541,407 | |
| Electrical Equipment - 0.1% | |||
| AMETEK, Inc. | 1,532 | 140,500 | |
| Eaton Corp. PLC | 20,279 | 1,721,687 | |
| Emerson Electric Co. | 30,406 | 1,855,374 | |
| Generac Holdings, Inc. (a) | 13,181 | 1,466,650 | |
| 5,184,211 | |||
| Industrial Conglomerates - 0.5% | |||
| 3M Co. | 35,195 | 5,505,906 | |
| General Electric Co. | 74,081 | 486,712 | |
| Honeywell International, Inc. | 93,321 | 13,610,868 | |
| 19,603,486 | |||
| Machinery - 0.6% | |||
| Caterpillar, Inc. | 27,535 | 3,307,780 | |
| Deere & Co. | 41,831 | 6,363,332 | |
| Fortive Corp. | 23,253 | 1,417,968 | |
| Gardner Denver Holdings, Inc. (a) | 8,479 | 239,108 | |
| Illinois Tool Works, Inc. | 42,917 | 7,401,466 | |
| Xylem, Inc. | 77,381 | 5,133,456 | |
| 23,863,110 | |||
| Professional Services - 0.0% | |||
| CoStar Group, Inc. (a) | 657 | 431,518 | |
| Verisk Analytics, Inc. | 2,213 | 382,141 | |
| 813,659 | |||
| Road & Rail - 1.0% | |||
| Kansas City Southern | 11,271 | 1,696,511 | |
| Lyft, Inc. (a) | 135,400 | 4,232,604 | |
| Uber Technologies, Inc. | 549,807 | 19,968,990 | |
| Union Pacific Corp. | 93,174 | 15,826,536 | |
| 41,724,641 | |||
| TOTAL INDUSTRIALS | 141,245,967 | ||
| INFORMATION TECHNOLOGY - 39.1% | |||
| Communications Equipment - 0.6% | |||
| Arista Networks, Inc. (a) | 3,959 | 924,268 | |
| Ciena Corp. (a) | 201,656 | 11,143,511 | |
| Cisco Systems, Inc. | 58,486 | 2,796,801 | |
| Infinera Corp. (a)(b) | 1,210,210 | 6,026,846 | |
| Lumentum Holdings, Inc. (a) | 35,382 | 2,594,208 | |
| 23,485,634 | |||
| Electronic Equipment & Components - 0.1% | |||
| Arlo Technologies, Inc. (a) | 148,315 | 327,776 | |
| II-VI, Inc. (a) | 73,607 | 3,498,541 | |
| TE Connectivity Ltd. | 1,457 | 118,381 | |
| Trimble, Inc. (a) | 27,627 | 1,080,768 | |
| 5,025,466 | |||
| IT Services - 8.8% | |||
| Actua Corp. (a)(d) | 116,210 | 5,811 | |
| Black Knight, Inc. (a) | 40,580 | 3,123,848 | |
| IBM Corp. | 2,775 | 346,598 | |
| MasterCard, Inc. Class A | 157,681 | 47,444,636 | |
| MongoDB, Inc. Class A (a) | 12,353 | 2,867,255 | |
| Okta, Inc. (a) | 26,402 | 5,163,703 | |
| PayPal Holdings, Inc. (a) | 392,717 | 60,875,062 | |
| Riskified Ltd. (c)(d) | 1,118 | 303,202 | |
| Riskified Ltd. warrants (a)(c)(d) | 168 | 0 | |
| Shopify, Inc. Class A (a) | 213,500 | 162,037,328 | |
| Square, Inc. (a) | 171,191 | 13,880,166 | |
| Twilio, Inc. Class A (a) | 5,221 | 1,031,670 | |
| Visa, Inc. Class A | 272,587 | 53,219,886 | |
| Wix.com Ltd. (a) | 41,956 | 9,328,077 | |
| 359,627,242 | |||
| Semiconductors & Semiconductor Equipment - 11.4% | |||
| Advanced Micro Devices, Inc. (a) | 1,068,360 | 57,477,768 | |
| Applied Materials, Inc. | 127,500 | 7,162,950 | |
| ASML Holding NV | 34,822 | 11,474,197 | |
| Broadcom, Inc. | 13,020 | 3,792,335 | |
| Cirrus Logic, Inc. (a) | 132,484 | 9,602,440 | |
| Cree, Inc. (a) | 38,852 | 2,047,112 | |
| Inphi Corp. (a) | 34,904 | 4,386,386 | |
| Intel Corp. | 5,668 | 356,687 | |
| KLA-Tencor Corp. | 17,630 | 3,102,175 | |
| Marvell Technology Group Ltd. | 301,593 | 9,837,964 | |
| Micron Technology, Inc. (a) | 266,906 | 12,787,466 | |
| NVIDIA Corp. | 832,822 | 295,668,455 | |
| Qualcomm, Inc. | 52,070 | 4,211,422 | |
| Silicon Laboratories, Inc. (a) | 226,285 | 21,193,853 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 159,701 | 8,037,751 | |
| Teradyne, Inc. | 8,631 | 578,450 | |
| Texas Instruments, Inc. | 107,734 | 12,792,335 | |
| Universal Display Corp. | 2,317 | 339,672 | |
| 464,849,418 | |||
| Software - 12.4% | |||
| 2U, Inc. (a)(b) | 28,183 | 1,027,834 | |
| Adobe, Inc. (a) | 104,397 | 40,359,880 | |
| Atlassian Corp. PLC (a) | 23,308 | 4,318,972 | |
| Autodesk, Inc. (a) | 73,598 | 15,483,547 | |
| Avalara, Inc. (a) | 11,364 | 1,216,630 | |
| Bill.Com Holdings, Inc. (a)(b) | 1,197 | 83,359 | |
| Cadence Design Systems, Inc. (a) | 7,270 | 663,678 | |
| Cloudflare, Inc. (a) | 540,605 | 15,715,387 | |
| Coupa Software, Inc. (a) | 35,358 | 8,044,299 | |
| Crowdstrike Holdings, Inc. (b) | 13,762 | 1,208,441 | |
| CyberArk Software Ltd. (a) | 2,722 | 282,489 | |
| Datadog, Inc. Class A (a) | 6,184 | 440,734 | |
| DocuSign, Inc. (a) | 3,754 | 524,584 | |
| Elastic NV (a) | 15,455 | 1,327,894 | |
| HubSpot, Inc. (a) | 108,571 | 21,707,686 | |
| Intuit, Inc. | 35,713 | 10,368,198 | |
| LivePerson, Inc. (a) | 68,277 | 2,556,974 | |
| Medallia, Inc. (b) | 35,020 | 990,366 | |
| Microsoft Corp. | 1,009,420 | 184,976,215 | |
| Nutanix, Inc. Class A (a) | 1,050,213 | 25,268,125 | |
| Oracle Corp. | 186,859 | 10,047,408 | |
| Paylocity Holding Corp. (a) | 8,629 | 1,121,813 | |
| Ping Identity Holding Corp. (a) | 10,870 | 307,730 | |
| Pluralsight, Inc. (a) | 100,726 | 2,098,123 | |
| RingCentral, Inc. (a) | 3,437 | 942,597 | |
| Salesforce.com, Inc. (a) | 725,948 | 126,888,451 | |
| Snowflake Computing, Inc. Class B (c)(d) | 1,993 | 77,269 | |
| The Trade Desk, Inc. (a)(b) | 23,006 | 7,167,749 | |
| Workday, Inc. Class A (a) | 2,018 | 370,162 | |
| Zendesk, Inc. (a) | 158,653 | 13,604,495 | |
| Zoom Video Communications, Inc. Class A (a) | 8,025 | 1,440,327 | |
| Zscaler, Inc. (a)(b) | 73,809 | 7,239,925 | |
| 507,871,341 | |||
| Technology Hardware, Storage & Peripherals - 5.8% | |||
| Apple, Inc. | 699,949 | 222,541,785 | |
| Pure Storage, Inc. Class A (a) | 699,975 | 12,326,560 | |
| Samsung Electronics Co. Ltd. | 42,175 | 1,735,400 | |
| 236,603,745 | |||
| TOTAL INFORMATION TECHNOLOGY | 1,597,462,846 | ||
| MATERIALS - 0.4% | |||
| Chemicals - 0.1% | |||
| Albemarle Corp. U.S. (b) | 19,864 | 1,519,993 | |
| Dow, Inc. | 62,651 | 2,418,329 | |
| DuPont de Nemours, Inc. | 16,094 | 816,449 | |
| 4,754,771 | |||
| Metals & Mining - 0.3% | |||
| Barrick Gold Corp. (Canada) | 487,346 | 11,719,524 | |
| TOTAL MATERIALS | 16,474,295 | ||
| REAL ESTATE - 0.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
| American Tower Corp. | 29,720 | 7,672,812 | |
| TOTAL COMMON STOCKS | |||
| (Cost $3,213,875,610) | 4,037,013,702 | ||
| Preferred Stocks - 0.3% | |||
| Convertible Preferred Stocks - 0.2% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc.: | |||
| Series D (c)(d) | 19,989 | 176,703 | |
| Series Seed (a)(c)(d) | 26,124 | 230,936 | |
| 407,639 | |||
| CONSUMER STAPLES - 0.1% | |||
| Food & Staples Retailing - 0.1% | |||
| Blink Health LLC Series C (c)(d) | 47,796 | 2,046,147 | |
| Sweetgreen, Inc.: | |||
| Series C (c)(d) | 54 | 807 | |
| Series D (c)(d) | 862 | 12,878 | |
| Series I (c)(d) | 2,032 | 30,358 | |
| 2,090,190 | |||
| FINANCIALS - 0.0% | |||
| Diversified Financial Services - 0.0% | |||
| Sonder Holdings, Inc. Series E (c)(d) | 168,483 | 1,814,040 | |
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.1% | |||
| Akouos, Inc. Series B (c)(d) | 1,147,951 | 544,760 | |
| Element Biosciences, Inc. Series B (c)(d) | 125,057 | 641,542 | |
| Generation Bio Series C (c) | 36,600 | 354,288 | |
| Seer, Inc. Series D1 (c)(d) | 151,800 | 569,250 | |
| 2,109,840 | |||
| Pharmaceuticals - 0.0% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series C (c)(d) | 582 | 232,253 | |
| TOTAL HEALTH CARE | 2,342,093 | ||
| INFORMATION TECHNOLOGY - 0.0% | |||
| IT Services - 0.0% | |||
| Riskified Ltd. Series E (c)(d) | 800 | 216,960 | |
| Software - 0.0% | |||
| Bird Rides, Inc. Series D (c)(d) | 4,500 | 51,120 | |
| Outset Medical, Inc. Series E (c)(d) | 326,643 | 826,407 | |
| 877,527 | |||
| TOTAL INFORMATION TECHNOLOGY | 1,094,487 | ||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 7,748,449 | ||
| Nonconvertible Preferred Stocks - 0.1% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Automobiles - 0.0% | |||
| Waymo LLC Series A2 (c)(d) | 6,592 | 566,037 | |
| ENERGY - 0.0% | |||
| Oil, Gas & Consumable Fuels - 0.0% | |||
| Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 128,153 | 966,274 | |
| HEALTH CARE - 0.1% | |||
| Health Care Providers & Services - 0.1% | |||
| Oak Street Health LLC Series III-E (c)(d)(f) | 17,387 | 3,489,571 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 5,021,882 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $12,001,195) | 12,770,331 | ||
| Money Market Funds - 4.3% | |||
| Fidelity Cash Central Fund 0.11% (g) | 34,537,898 | 34,544,805 | |
| Fidelity Securities Lending Cash Central Fund 0.10% (g)(h) | 140,484,639 | 140,498,687 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $175,043,492) | 175,043,492 | ||
| TOTAL INVESTMENT IN SECURITIES - 103.4% | |||
| (Cost $3,400,920,297) | 4,224,827,525 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.4)% | (138,261,568) | ||
| NET ASSETS - 100% | $4,086,565,957 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $15,831,304 or 0.4% 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 $15,204,198 or 0.4% 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 |
| Akouos, Inc. Series B | 2/27/20 | $544,760 |
| Alignment Healthcare Partners unit | 2/28/20 | $1,135,478 |
| Allbirds, Inc. Series D | 12/23/19 | $257,574 |
| Allbirds, Inc. Series Seed | 1/23/20 | $257,583 |
| Bird Rides, Inc. Series D | 9/30/19 | $58,130 |
| Blink Health LLC Series C | 11/7/19 | $1,824,660 |
| Castle Creek Pharmaceutical Holdings, Inc. Series C | 12/9/19 | $239,697 |
| Dragonfly Therapeutics, Inc. | 12/19/19 | $830,209 |
| Element Biosciences, Inc. Series B | 12/13/19 | $655,374 |
| Generation Bio Series C | 1/9/20 | $204,645 |
| Oak Street Health LLC Series III-E | 2/21/20 | $2,717,414 |
| On Holding AG | 2/6/20 | $1,166,429 |
| Outset Medical, Inc. Series E | 1/27/20 | $718,615 |
| Riskified Ltd. | 12/20/19 - 4/15/20 | $252,754 |
| Riskified Ltd. Series E | 10/28/19 | $190,288 |
| Riskified Ltd. warrants | 10/28/19 | $0 |
| Seer, Inc. Series D1 | 5/12/20 | $569,250 |
| Snowflake Computing, Inc. Class B | 3/19/20 | $77,302 |
| Sonder Holdings, Inc. Series E | 4/3/20 - 5/6/20 | $1,814,040 |
| Sweetgreen, Inc. Series C | 9/13/19 | $923 |
| Sweetgreen, Inc. Series D | 9/13/19 | $14,740 |
| Sweetgreen, Inc. Series I | 9/13/19 | $34,747 |
| Waymo LLC Series A2 | 5/8/20 | $566,037 |
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 | $103,226 |
| Fidelity Securities Lending Cash Central Fund | 1,084,033 |
| Total | $1,187,259 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $455,928,727 | $450,310,774 | $5,617,953 | $-- |
| Consumer Discretionary | 849,683,089 | 813,046,779 | 34,471,670 | 2,164,640 |
| Consumer Staples | 117,416,917 | 114,772,947 | 553,780 | 2,090,190 |
| Energy | 29,767,989 | 29,767,989 | -- | -- |
| Financials | 58,064,883 | 56,250,843 | -- | 1,814,040 |
| Health Care | 774,972,021 | 760,356,661 | 6,682,172 | 7,933,188 |
| Industrials | 141,245,967 | 141,245,967 | -- | -- |
| Information Technology | 1,598,557,333 | 1,597,076,564 | -- | 1,480,769 |
| Materials | 16,474,295 | 16,474,295 | -- | -- |
| Real Estate | 7,672,812 | 7,672,812 | -- | -- |
| Money Market Funds | 175,043,492 | 175,043,492 | -- | -- |
| Total Investments in Securities: | $4,224,827,525 | $4,162,019,123 | $47,325,575 | $15,482,827 |
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 | 88.4% |
| Canada | 4.4% |
| Cayman Islands | 2.6% |
| Germany | 1.2% |
| Others (Individually Less Than 1%) | 3.4% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| May 31, 2020 (Unaudited) | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $144,907,373) — See accompanying schedule: Unaffiliated issuers (cost $3,225,876,805) | $4,049,784,033 | |
| Fidelity Central Funds (cost $175,043,492) | 175,043,492 | |
| Total Investment in Securities (cost $3,400,920,297) | $4,224,827,525 | |
| Cash | 29,186 | |
| Foreign currency held at value (cost $9,952) | 9,952 | |
| Receivable for investments sold | 6,979,015 | |
| Receivable for fund shares sold | 3,538,899 | |
| Dividends receivable | 1,467,554 | |
| Distributions receivable from Fidelity Central Funds | 50,199 | |
| Total assets | 4,236,902,330 | |
| Liabilities | ||
| Payable for investments purchased | $5,884,655 | |
| Payable for fund shares redeemed | 2,507,047 | |
| Accrued management fee | 1,436,670 | |
| Other payables and accrued expenses | 12,001 | |
| Collateral on securities loaned | 140,496,000 | |
| Total liabilities | 150,336,373 | |
| Net Assets | $4,086,565,957 | |
| Net Assets consist of: | ||
| Paid in capital | $3,297,741,269 | |
| Total accumulated earnings (loss) | 788,824,688 | |
| Net Assets | $4,086,565,957 | |
| Net Asset Value, offering price and redemption price per share ($4,086,565,957 ÷ 308,178,005 shares) | $13.26 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended May 31, 2020 (Unaudited) | ||
| Investment Income | ||
| Dividends | $7,622,549 | |
| Income from Fidelity Central Funds (including $1,084,033 from security lending) | 1,187,259 | |
| Total income | 8,809,808 | |
| Expenses | ||
| Management fee | $6,350,875 | |
| Independent trustees' fees and expenses | 6,886 | |
| Interest | 259 | |
| Miscellaneous | 11,252 | |
| Total expenses before reductions | 6,369,272 | |
| Expense reductions | (20,079) | |
| Total expenses after reductions | 6,349,193 | |
| Net investment income (loss) | 2,460,615 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (32,919,036) | |
| Fidelity Central Funds | (2,052) | |
| Foreign currency transactions | (27,418) | |
| Total net realized gain (loss) | (32,948,506) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 645,573,785 | |
| Assets and liabilities in foreign currencies | (137) | |
| Total change in net unrealized appreciation (depreciation) | 645,573,648 | |
| Net gain (loss) | 612,625,142 | |
| Net increase (decrease) in net assets resulting from operations | $615,085,757 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended May 31, 2020 (Unaudited) | For the period June 13, 2019 (commencement of operations) to November 30, 2019 |
|
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $2,460,615 | $902,645 |
| Net realized gain (loss) | (32,948,506) | (4,295,880) |
| Change in net unrealized appreciation (depreciation) | 645,573,648 | 178,333,291 |
| Net increase (decrease) in net assets resulting from operations | 615,085,757 | 174,940,056 |
| Distributions to shareholders | (1,201,125) | – |
| Share transactions | ||
| Proceeds from sales of shares | 2,056,080,910 | 1,747,943,851 |
| Reinvestment of distributions | 1,201,125 | – |
| Cost of shares redeemed | (438,243,455) | (69,241,162) |
| Net increase (decrease) in net assets resulting from share transactions | 1,619,038,580 | 1,678,702,689 |
| Total increase (decrease) in net assets | 2,232,923,212 | 1,853,642,745 |
| Net Assets | ||
| Beginning of period | 1,853,642,745 | – |
| End of period | $4,086,565,957 | $1,853,642,745 |
| Other Information | ||
| Shares | ||
| Sold | 181,425,092 | 172,314,857 |
| Issued in reinvestment of distributions | 103,635 | – |
| Redeemed | (39,038,334) | (6,627,245) |
| Net increase (decrease) | 142,490,393 | 165,687,612 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Company K6 Fund
| Six months ended (Unaudited) May 31, | Years endedNovember 30, | |
| 2020 | 2019 A | |
| Selected Per–Share Data | ||
| Net asset value, beginning of period | $11.19 | $10.00 |
| Income from Investment Operations | ||
| Net investment income (loss)B | .01 | .01 |
| Net realized and unrealized gain (loss) | 2.07 | 1.18 |
| Total from investment operations | 2.08 | 1.19 |
| Distributions from net investment income | (.01) | – |
| Total distributions | (.01) | – |
| Net asset value, end of period | $13.26 | $11.19 |
| Total ReturnC,D | 18.57% | 11.90% |
| Ratios to Average Net AssetsE,F | ||
| Expenses before reductions | .45%G | .45%G |
| Expenses net of fee waivers, if any | .45%G | .45%G |
| Expenses net of all reductions | .45%G | .45%G |
| Net investment income (loss) | .17%G | .29%G |
| Supplemental Data | ||
| Net assets, end of period (000 omitted) | $4,086,566 | $1,853,643 |
| Portfolio turnover rateH | 24%G,I | 16%I,J |
A For the period June 13, 2019 (commencement of operations) to November 30, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2020
1. Organization.
Fidelity Growth Company 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.
Effective January 1, 2020:
Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to "Fidelity Management & Research Company LLC".
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. The aggregate value of investments by input level as of May 31, 2020 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. 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 | $914,847,704 |
| Gross unrealized depreciation | (106,538,317) |
| Net unrealized appreciation (depreciation) | $808,309,387 |
| Tax cost | $3,416,518,138 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(3,779,626) |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
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 $3,489,571 in this Subsidiary, representing .09% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Growth Company K6 Fund | 750,520,426 | 315,430,662 |
Unaffiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $1,155,832,125 in exchange for 103,156,669 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 $1,139,314,707 in exchange for 112,262,255 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 LLC (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. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Growth Company K6 Fund | $13,988 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
| Fidelity Growth Company K6 Fund | Borrower | $5,113,000 | 1.83% | $259 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $419,018,006 in exchange for 41,776,471 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Amount | |
| Fidelity Growth Company K6 Fund | $205 |
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, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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 NFS, as affiliated borrower, at period end was $5,234,215. Total fees paid by the Fund to NFS, as lending agent, amounted to $112,150. 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 $76,495 from securities loaned to NFS, as affiliated borrower.
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 $19,425 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $654.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder 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, 2019 to May 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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, 2019 | Ending Account Value May 31, 2020 | Expenses Paid During Period-B December 1, 2019 to May 31, 2020 |
|
| Actual | .45% | $1,000.00 | $1,185.70 | $2.46 |
| Hypothetical-C | $1,000.00 | $1,022.75 | $2.28 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).
C 5% return per year before expenses
Liquidity Risk Management Program
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
The Fund has adopted and implemented a liquidity risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage the Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. The Fund’s Board of Trustees (the Board) has designated the Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds, certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.
- Highly liquid investments – cash or convertible to cash within three business days or less
- Moderately liquid investments – convertible to cash in three to seven calendar days
- Less liquid investments – can be sold or disposed of, but not settled, within seven calendar days
- Illiquid investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments (highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as applicable.
At a recent meeting of the Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019. The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
GCF-K6-SANN-0720
1.9893923.100
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity 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) | |
| (a) | (3) | Not applicable. |
| (b) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Mt. Vernon Street Trust
| By: | /s/Stacie M. Smith |
| | Stacie M. Smith |
| | President and Treasurer |
| | |
| Date: | July 22, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/Stacie M. Smith |
| | Stacie M. Smith |
| | President and Treasurer |
| | |
| Date: | July 22, 2020 |
| By: | /s/John J. Burke III |
| | John J. Burke III |
| | Chief Financial Officer |
| | |
| Date: | July 22, 2020 |