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As Of Filer Filing For·On·As Docs:Size 8/22/14 Variable Insurance Products Fund N-CSRS 6/30/14 3:4.0M → Equity-Income Portfolio ⇒ Initial Class — Investor Class — Service Class — Service Class 2 — Service Class 2 R → Floating Rate High Income Portfolio ⇒ Initial Class — Investor Class → Growth Portfolio ⇒ Initial Class — Investor Class — Service Class — Service Class 2 (QVG2Q) — Service Class 2 R → High Income Portfolio ⇒ Initial Class — Initial Class R — Investor Class — Service Class — Service Class 2 (QHI2Q) — Service Class 2 R — Service Class R → Overseas Portfolio ⇒ Initial Class — Initial Class R — Investor Class — Service Class — Service Class 2 (QVO2Q) — Service Class 2 R — Service Class R → Value Portfolio ⇒ Initial Class — Investor Class — Service Class — Service Class 2 |
Document/Exhibit Description Pages Size
1: N-CSRS Certified Semi-Annual Shareholder Report of a HTML 3.26M
Management Investment Company
3: EX-99.906 CERT Miscellaneous Exhibit HTML 7K
2: EX-99.CERT Miscellaneous Exhibit HTML 14K
| Page | (sequential) | | | (alphabetic) | Top | |
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| 1 | 1st Page - Filing Submission | ||||
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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 811-3329
Variable Insurance Products Fund
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
|
Date of fiscal year end: |
December 31 |
|
|
|
|
Date of reporting period: |
Item 1. Reports to Stockholders
Fidelity® Variable Insurance Products:
Growth Portfolio - Service Class 2R
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
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Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.65% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,087.20 |
$ 3.36 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.57 |
$ 3.26 |
|
Service Class |
.75% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,086.70 |
$ 3.88 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.08 |
$ 3.76 |
|
Service Class 2 |
.90% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,085.90 |
$ 4.65 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.33 |
$ 4.51 |
|
Service Class 2R |
.90% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,086.10 |
$ 4.66 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.33 |
$ 4.51 |
|
Investor Class |
.73% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,086.70 |
$ 3.78 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.17 |
$ 3.66 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Top Ten Stocks as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Facebook, Inc. Class A |
7.6 |
6.6 |
|
Gilead Sciences, Inc. |
4.1 |
1.6 |
|
Keurig Green Mountain, Inc. |
3.1 |
2.5 |
|
Harley-Davidson, Inc. |
3.0 |
3.0 |
|
Google, Inc. Class A |
2.4 |
4.3 |
|
Google, Inc. Class C |
2.4 |
0.0 |
|
Apple, Inc. |
2.2 |
2.5 |
|
Actavis PLC |
2.0 |
1.1 |
|
The Blackstone Group LP |
2.0 |
0.9 |
|
Danaher Corp. |
1.9 |
1.5 |
|
|
30.7 |
|
|
Top Five Market Sectors as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Information Technology |
28.5 |
29.1 |
|
Consumer Discretionary |
15.4 |
19.6 |
|
Health Care |
14.7 |
17.0 |
|
Industrials |
10.7 |
7.8 |
|
Consumer Staples |
8.9 |
9.3 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of June 30, 2014* |
As of December 31, 2013** |
||||||
 |
Stocks 100.1% |
|
|
Stocks 99.1% |
|
||
 |
Short-Term |
|
 |
Short-Term |
|
||
|
* Foreign investments |
11.2% |
|
** Foreign investments |
12.6% |
|
||
† Net Other Assets (Liabilities) are not included in the pie chart.
Semiannual Report
Showing Percentage of Net Assets
|
Common Stocks - 99.8% |
|||
|
Shares |
Value |
||
|
CONSUMER DISCRETIONARY - 15.3% |
|||
|
Automobiles - 4.0% |
|||
|
Harley-Davidson, Inc. |
2,056,952 |
$ 143,678,097 |
|
|
Tesla Motors, Inc. (a)(d) |
201,627 |
48,402,578 |
|
|
|
192,080,675 |
||
|
Distributors - 0.2% |
|||
|
LKQ Corp. (a) |
418,900 |
11,180,441 |
|
|
Diversified Consumer Services - 0.5% |
|||
|
Bright Horizons Family Solutions, Inc. (a) |
234,900 |
10,086,606 |
|
|
H&R Block, Inc. |
408,760 |
13,701,635 |
|
|
|
23,788,241 |
||
|
Hotels, Restaurants & Leisure - 3.5% |
|||
|
Chipotle Mexican Grill, Inc. (a) |
33,394 |
19,786,279 |
|
|
Domino's Pizza, Inc. |
39,700 |
2,901,673 |
|
|
Dunkin' Brands Group, Inc. |
569,795 |
26,102,309 |
|
|
Las Vegas Sands Corp. |
128,000 |
9,756,160 |
|
|
Starbucks Corp. |
830,973 |
64,300,691 |
|
|
Yum! Brands, Inc. |
560,384 |
45,503,181 |
|
|
|
168,350,293 |
||
|
Household Durables - 0.3% |
|||
|
Mohawk Industries, Inc. (a) |
102,755 |
14,215,127 |
|
|
Internet & Catalog Retail - 1.0% |
|||
|
Amazon.com, Inc. (a) |
71,542 |
23,235,411 |
|
|
TripAdvisor, Inc. (a) |
230,453 |
25,041,023 |
|
|
|
48,276,434 |
||
|
Leisure Products - 0.1% |
|||
|
NJOY, Inc. (e) |
243,618 |
4,123,503 |
|
|
Media - 0.8% |
|||
|
Comcast Corp. Class A (special) (non-vtg.) |
691,919 |
36,900,040 |
|
|
Specialty Retail - 3.3% |
|||
|
CarMax, Inc. (a) |
145,500 |
7,567,455 |
|
|
Five Below, Inc. (a) |
165,200 |
6,593,132 |
|
|
Home Depot, Inc. |
1,059,232 |
85,755,423 |
|
|
Ulta Salon, Cosmetics & Fragrance, Inc. (a) |
337,844 |
30,882,320 |
|
|
Urban Outfitters, Inc. (a) |
879,000 |
29,762,940 |
|
|
|
160,561,270 |
||
|
Textiles, Apparel & Luxury Goods - 1.6% |
|||
|
ECLAT Textile Co. Ltd. |
1,342,740 |
16,271,550 |
|
|
Michael Kors Holdings Ltd. (a) |
257,403 |
22,818,776 |
|
|
NIKE, Inc. Class B |
528,676 |
40,998,824 |
|
|
|
80,089,150 |
||
|
TOTAL CONSUMER DISCRETIONARY |
739,565,174 |
||
|
CONSUMER STAPLES - 8.9% |
|||
|
Beverages - 1.2% |
|||
|
Monster Beverage Corp. (a) |
134,007 |
9,518,517 |
|
|
|
|||
|
Shares |
Value |
||
|
SABMiller PLC |
468,842 |
$ 27,184,506 |
|
|
The Coca-Cola Co. |
537,438 |
22,765,874 |
|
|
|
59,468,897 |
||
|
Food & Staples Retailing - 0.9% |
|||
|
Costco Wholesale Corp. |
209,400 |
24,114,504 |
|
|
Sprouts Farmers Market LLC |
62,695 |
2,051,380 |
|
|
Whole Foods Market, Inc. |
412,066 |
15,918,110 |
|
|
|
42,083,994 |
||
|
Food Products - 4.3% |
|||
|
Keurig Green Mountain, Inc. |
1,173,537 |
146,234,446 |
|
|
Mead Johnson Nutrition Co. Class A |
317,886 |
29,617,439 |
|
|
The Hershey Co. |
293,344 |
28,562,905 |
|
|
|
204,414,790 |
||
|
Household Products - 1.6% |
|||
|
Procter & Gamble Co. |
1,001,523 |
78,709,693 |
|
|
Personal Products - 0.9% |
|||
|
Estee Lauder Companies, Inc. Class A |
98,700 |
7,329,462 |
|
|
Herbalife Ltd. |
560,855 |
36,197,582 |
|
|
|
43,527,044 |
||
|
TOTAL CONSUMER STAPLES |
428,204,418 |
||
|
ENERGY - 8.8% |
|||
|
Energy Equipment & Services - 3.4% |
|||
|
Dril-Quip, Inc. (a) |
159,812 |
17,457,863 |
|
|
Halliburton Co. |
1,118,200 |
79,403,382 |
|
|
Oceaneering International, Inc. |
408,874 |
31,945,326 |
|
|
Pason Systems, Inc. |
533,244 |
14,992,100 |
|
|
RigNet, Inc. (a) |
410,594 |
22,098,169 |
|
|
|
165,896,840 |
||
|
Oil, Gas & Consumable Fuels - 5.4% |
|||
|
Cheniere Energy, Inc. (a) |
417,500 |
29,934,750 |
|
|
Continental Resources, Inc. (a)(d) |
266,305 |
42,086,842 |
|
|
EOG Resources, Inc. |
287,400 |
33,585,564 |
|
|
EQT Midstream Partners LP |
149,500 |
14,462,630 |
|
|
Golar LNG Ltd. (NASDAQ) (d) |
630,617 |
37,900,082 |
|
|
Markwest Energy Partners LP |
182,900 |
13,091,982 |
|
|
Noble Energy, Inc. |
190,800 |
14,779,368 |
|
|
Phillips 66 Partners LP |
395,982 |
29,920,400 |
|
|
Pioneer Natural Resources Co. |
105,298 |
24,198,533 |
|
|
Targa Resources Corp. |
142,287 |
19,858,997 |
|
|
|
259,819,148 |
||
|
TOTAL ENERGY |
425,715,988 |
||
|
FINANCIALS - 7.8% |
|||
|
Banks - 1.0% |
|||
|
HDFC Bank Ltd. sponsored ADR |
1,013,549 |
47,454,364 |
|
|
Capital Markets - 5.1% |
|||
|
BlackRock, Inc. Class A |
91,606 |
29,277,278 |
|
|
E*TRADE Financial Corp. (a) |
1,589,560 |
33,794,046 |
|
|
Fortress Investment Group LLC |
635,700 |
4,729,608 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Capital Markets - continued |
|||
|
Harvest Capital Credit Corp. (d) |
105,739 |
$ 1,568,109 |
|
|
Invesco Ltd. |
1,316,093 |
49,682,511 |
|
|
KKR & Co. LP |
604,500 |
14,707,485 |
|
|
Legg Mason, Inc. |
385,742 |
19,792,422 |
|
|
The Blackstone Group LP |
2,800,848 |
93,660,357 |
|
|
|
247,211,816 |
||
|
Consumer Finance - 0.7% |
|||
|
American Express Co. |
273,293 |
25,927,307 |
|
|
Shriram Transport Finance Co. Ltd. |
478,307 |
7,207,655 |
|
|
|
33,134,962 |
||
|
Diversified Financial Services - 0.8% |
|||
|
Berkshire Hathaway, Inc. Class B (a) |
95,200 |
12,048,512 |
|
|
McGraw Hill Financial, Inc. |
341,713 |
28,372,430 |
|
|
|
40,420,942 |
||
|
Real Estate Management & Development - 0.2% |
|||
|
Leopalace21 Corp. (a) |
320,900 |
1,655,167 |
|
|
Realogy Holdings Corp. (a) |
181,301 |
6,836,861 |
|
|
|
8,492,028 |
||
|
TOTAL FINANCIALS |
376,714,112 |
||
|
HEALTH CARE - 14.7% |
|||
|
Biotechnology - 9.5% |
|||
|
Acceleron Pharma, Inc. |
190,300 |
6,464,491 |
|
|
Actelion Ltd. |
72,344 |
9,153,131 |
|
|
Alexion Pharmaceuticals, Inc. (a) |
205,081 |
32,043,906 |
|
|
Biogen Idec, Inc. (a) |
272,405 |
85,892,021 |
|
|
BioMarin Pharmaceutical, Inc. (a) |
341,925 |
21,271,154 |
|
|
Cytokinetics, Inc. warrants 6/25/17 (a) |
1,084,980 |
21,255 |
|
|
Enanta Pharmaceuticals, Inc. (a)(d) |
402,880 |
17,352,042 |
|
|
Gilead Sciences, Inc. (a) |
2,421,190 |
200,740,863 |
|
|
Insmed, Inc. (a) |
1,164,602 |
23,268,748 |
|
|
Kamada (a) |
185,418 |
1,320,176 |
|
|
Ophthotech Corp. |
198,539 |
8,400,185 |
|
|
uniQure B.V. |
131,324 |
1,784,693 |
|
|
Vanda Pharmaceuticals, Inc. (a)(d) |
818,010 |
13,235,402 |
|
|
Vertex Pharmaceuticals, Inc. (a) |
388,900 |
36,821,052 |
|
|
|
457,769,119 |
||
|
Health Care Equipment & Supplies - 0.5% |
|||
|
AxoGen, Inc. (a) |
119,651 |
332,630 |
|
|
GI Dynamics, Inc. CDI (a) |
704,680 |
385,397 |
|
|
The Cooper Companies, Inc. |
176,500 |
23,921,045 |
|
|
|
24,639,072 |
||
|
Health Care Providers & Services - 0.4% |
|||
|
Apollo Hospitals Enterprise Ltd. |
483,176 |
8,005,066 |
|
|
Qualicorp SA (a) |
992,800 |
11,727,576 |
|
|
|
19,732,642 |
||
|
Health Care Technology - 0.2% |
|||
|
Cerner Corp. (a) |
136,687 |
7,050,315 |
|
|
|
|||
|
Shares |
Value |
||
|
Life Sciences Tools & Services - 0.8% |
|||
|
Illumina, Inc. (a) |
223,898 |
$ 39,974,749 |
|
|
Pharmaceuticals - 3.3% |
|||
|
AbbVie, Inc. |
580,147 |
32,743,497 |
|
|
Actavis PLC (a) |
437,566 |
97,599,096 |
|
|
AVANIR Pharmaceuticals Class A (a) |
1,018,400 |
5,743,776 |
|
|
Perrigo Co. PLC |
157,577 |
22,968,424 |
|
|
|
159,054,793 |
||
|
TOTAL HEALTH CARE |
708,220,690 |
||
|
INDUSTRIALS - 10.7% |
|||
|
Aerospace & Defense - 2.5% |
|||
|
TransDigm Group, Inc. |
212,596 |
35,558,807 |
|
|
United Technologies Corp. |
729,377 |
84,206,575 |
|
|
|
119,765,382 |
||
|
Airlines - 0.2% |
|||
|
Ryanair Holdings PLC sponsored ADR (a) |
144,682 |
8,073,256 |
|
|
Building Products - 0.4% |
|||
|
A.O. Smith Corp. |
400,918 |
19,877,514 |
|
|
Commercial Services & Supplies - 0.6% |
|||
|
KAR Auction Services, Inc. |
827,935 |
26,386,288 |
|
|
Construction & Engineering - 0.5% |
|||
|
Jacobs Engineering Group, Inc. (a) |
385,294 |
20,528,464 |
|
|
MasTec, Inc. (a) |
76,200 |
2,348,484 |
|
|
|
22,876,948 |
||
|
Electrical Equipment - 0.6% |
|||
|
AMETEK, Inc. |
338,300 |
17,686,324 |
|
|
Power Solutions International, Inc. (a) |
131,843 |
9,488,741 |
|
|
|
27,175,065 |
||
|
Industrial Conglomerates - 2.4% |
|||
|
Danaher Corp. |
1,171,226 |
92,210,623 |
|
|
Roper Industries, Inc. |
170,117 |
24,838,783 |
|
|
|
117,049,406 |
||
|
Machinery - 2.4% |
|||
|
Allison Transmission Holdings, Inc. |
616,500 |
19,173,150 |
|
|
Caterpillar, Inc. |
338,303 |
36,763,387 |
|
|
Manitowoc Co., Inc. |
1,461,205 |
48,015,196 |
|
|
Sarine Technologies Ltd. |
2,211,000 |
4,557,118 |
|
|
Sun Hydraulics Corp. |
58,700 |
2,383,220 |
|
|
Weg SA |
482,170 |
6,173,609 |
|
|
|
117,065,680 |
||
|
Professional Services - 0.6% |
|||
|
Verisk Analytics, Inc. (a) |
405,104 |
24,314,342 |
|
|
WageWorks, Inc. (a) |
112,773 |
5,436,786 |
|
|
|
29,751,128 |
||
|
Road & Rail - 0.5% |
|||
|
J.B. Hunt Transport Services, Inc. |
349,200 |
25,763,976 |
|
|
TOTAL INDUSTRIALS |
513,784,643 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
INFORMATION TECHNOLOGY - 28.3% |
|||
|
Communications Equipment - 0.4% |
|||
|
QUALCOMM, Inc. |
280,200 |
$ 22,191,840 |
|
|
Electronic Equipment & Components - 0.7% |
|||
|
TE Connectivity Ltd. |
540,614 |
33,431,570 |
|
|
Internet Software & Services - 15.8% |
|||
|
Cornerstone OnDemand, Inc. (a) |
257,965 |
11,871,549 |
|
|
CoStar Group, Inc. (a) |
39,100 |
6,184,447 |
|
|
Cvent, Inc. (d) |
594,275 |
17,287,460 |
|
|
Demandware, Inc. (a) |
182,700 |
12,673,899 |
|
|
Facebook, Inc. Class A (a) |
5,446,209 |
366,475,397 |
|
|
Google, Inc.: |
|
|
|
|
Class A (a) |
201,898 |
118,043,704 |
|
|
Class C (a) |
201,898 |
116,147,881 |
|
|
Naver Corp. |
45,797 |
37,787,050 |
|
|
SPS Commerce, Inc. (a) |
249,629 |
15,774,057 |
|
|
Textura Corp. (d) |
1,121,261 |
26,506,610 |
|
|
Xoom Corp. (a) |
73,430 |
1,935,615 |
|
|
Yahoo!, Inc. (a) |
962,588 |
33,815,716 |
|
|
|
764,503,385 |
||
|
IT Services - 2.2% |
|||
|
Gartner, Inc. Class A (a) |
369,017 |
26,023,079 |
|
|
Visa, Inc. Class A |
377,468 |
79,536,282 |
|
|
|
105,559,361 |
||
|
Semiconductors & Semiconductor Equipment - 0.3% |
|||
|
M/A-COM Technology Solutions, Inc. (a) |
87,736 |
1,972,305 |
|
|
MediaTek, Inc. |
685,000 |
11,580,049 |
|
|
|
13,552,354 |
||
|
Software - 6.4% |
|||
|
Activision Blizzard, Inc. |
377,032 |
8,407,814 |
|
|
ANSYS, Inc. (a) |
5,410 |
410,186 |
|
|
Computer Modelling Group Ltd. |
553,300 |
15,358,930 |
|
|
Electronic Arts, Inc. (a) |
1,213,321 |
43,521,824 |
|
|
Fleetmatics Group PLC (a) |
165,050 |
5,337,717 |
|
|
Microsoft Corp. |
2,097,200 |
87,453,240 |
|
|
salesforce.com, Inc. (a) |
1,468,462 |
85,288,273 |
|
|
ServiceNow, Inc. (a) |
109,600 |
6,790,816 |
|
|
SolarWinds, Inc. (a) |
299,007 |
11,559,611 |
|
|
Solera Holdings, Inc. |
78,200 |
5,251,130 |
|
|
SS&C Technologies Holdings, Inc. (a) |
782,308 |
34,593,660 |
|
|
The Rubicon Project, Inc. |
278,602 |
3,577,250 |
|
|
|
307,550,451 |
||
|
|
|||
|
Shares |
Value |
||
|
Technology Hardware, Storage & Peripherals - 2.5% |
|||
|
Apple, Inc. |
1,159,327 |
$ 107,736,258 |
|
|
Nimble Storage, Inc. (d) |
407,900 |
12,530,688 |
|
|
|
120,266,946 |
||
|
TOTAL INFORMATION TECHNOLOGY |
1,367,055,907 |
||
|
MATERIALS - 4.9% |
|||
|
Chemicals - 2.3% |
|||
|
FMC Corp. |
367,005 |
26,127,086 |
|
|
Monsanto Co. |
272,549 |
33,997,762 |
|
|
Sherwin-Williams Co. |
179,260 |
37,090,687 |
|
|
Westlake Chemical Corp. |
179,904 |
15,068,759 |
|
|
|
112,284,294 |
||
|
Construction Materials - 2.6% |
|||
|
CaesarStone Sdot-Yam Ltd. |
50,648 |
2,485,804 |
|
|
Eagle Materials, Inc. |
758,552 |
71,516,283 |
|
|
James Hardie Industries PLC sponsored ADR |
210,300 |
13,747,311 |
|
|
Vulcan Materials Co. |
593,846 |
37,857,683 |
|
|
|
125,607,081 |
||
|
TOTAL MATERIALS |
237,891,375 |
||
|
TELECOMMUNICATION SERVICES - 0.1% |
|||
|
Diversified Telecommunication Services - 0.1% |
|||
|
8x8, Inc. (a) |
697,759 |
5,637,893 |
|
|
UTILITIES - 0.3% |
|||
|
Electric Utilities - 0.3% |
|||
|
ITC Holdings Corp. |
401,937 |
14,662,662 |
|
|
TOTAL COMMON STOCKS (Cost $3,375,450,656) |
|
||
|
Convertible Preferred Stocks - 0.3% |
|||
|
|
|
|
|
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Household Durables - 0.1% |
|||
|
Blu Homes, Inc. Series A, 5.00% (e) |
1,049,416 |
4,848,302 |
|
|
INFORMATION TECHNOLOGY - 0.2% |
|||
|
Internet Software & Services - 0.2% |
|||
|
Uber Technologies, Inc. 8.00% (e) |
159,060 |
9,870,023 |
|
|
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $14,718,325) |
|
||
|
U.S. Treasury Obligations - 0.0% |
||||
|
|
Principal Amount |
Value |
||
|
U.S. Treasury Bills, yield at date of purchase 0.02% 7/31/14 |
|
$ 850,000 |
$ 849,984 |
|
|
Money Market Funds - 1.5% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.11% (b) |
6,679,957 |
6,679,957 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
64,695,963 |
64,695,963 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $71,375,920) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $3,462,394,887) |
4,904,397,091 |
|
NET OTHER ASSETS (LIABILITIES) - (1.6)% |
(77,256,827) |
||
|
NET ASSETS - 100% |
$ 4,827,140,264 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $18,841,827 or 0.4% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost |
|
Blu Homes, Inc. Series A, 5.00% |
6/21/13 |
$ 4,848,302 |
|
NJOY, Inc. |
9/11/13 |
$ 1,968,433 |
|
Uber Technologies, Inc. 8.00% |
6/6/14 |
$ 9,870,023 |
|
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 |
$ 49,544 |
|
Fidelity Securities Lending Cash Central Fund |
217,837 |
|
Total |
$ 267,381 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 744,413,476 |
$ 735,441,671 |
$ - |
$ 8,971,805 |
|
Consumer Staples |
428,204,418 |
428,204,418 |
- |
- |
|
Energy |
425,715,988 |
425,715,988 |
- |
- |
|
Financials |
376,714,112 |
375,058,945 |
1,655,167 |
- |
|
Health Care |
708,220,690 |
708,199,435 |
21,255 |
- |
|
Industrials |
513,784,643 |
513,784,643 |
- |
- |
|
Information Technology |
1,376,925,930 |
1,367,055,907 |
- |
9,870,023 |
|
Materials |
237,891,375 |
237,891,375 |
- |
- |
|
Telecommunication Services |
5,637,893 |
5,637,893 |
- |
- |
|
Utilities |
14,662,662 |
14,662,662 |
- |
- |
|
U.S. Government and Government Agency Obligations |
849,984 |
- |
849,984 |
- |
|
Money Market Funds |
71,375,920 |
71,375,920 |
- |
- |
|
Total Investments in Securities: |
$ 4,904,397,091 |
$ 4,883,028,857 |
$ 2,526,406 |
$ 18,841,828 |
|
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% |
|
Ireland |
3.1% |
|
Bermuda |
1.8% |
|
India |
1.4% |
|
Others (Individually Less Than 1%) |
4.9% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $63,532,662) - See accompanying schedule: Unaffiliated issuers (cost $3,391,018,967) |
$ 4,833,021,171 |
|
|
Fidelity Central Funds (cost $71,375,920) |
71,375,920 |
|
|
Total Investments (cost $3,462,394,887) |
|
$ 4,904,397,091 |
|
Cash |
|
15,063 |
|
Receivable for investments sold |
|
22,532,201 |
|
Receivable for fund shares sold |
|
1,059,279 |
|
Dividends receivable |
|
2,205,607 |
|
Distributions receivable from Fidelity Central Funds |
|
34,246 |
|
Other receivables |
|
190,579 |
|
Total assets |
|
4,930,434,066 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 32,129,465 |
|
|
Payable for fund shares redeemed |
3,434,978 |
|
|
Accrued management fee |
2,203,254 |
|
|
Distribution and service plan fees payable |
214,911 |
|
|
Other affiliated payables |
372,383 |
|
|
Other payables and accrued expenses |
242,848 |
|
|
Collateral on securities loaned, at value |
64,695,963 |
|
|
Total liabilities |
|
103,293,802 |
|
|
|
|
|
Net Assets |
|
$ 4,827,140,264 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 3,408,403,798 |
|
Undistributed net investment income |
|
5,445,262 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(28,712,804) |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
1,442,004,008 |
|
Net Assets |
|
$ 4,827,140,264 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 62.12 |
|
|
|
|
|
Service Class: |
|
$ 61.94 |
|
|
|
|
|
Service Class 2: |
|
$ 61.43 |
|
|
|
|
|
Service Class 2R: |
|
$ 61.21 |
|
|
|
|
|
Investor Class: |
|
$ 61.93 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 23,022,608 |
|
Interest |
|
27 |
|
Income from Fidelity Central Funds |
|
267,381 |
|
Total income |
|
23,290,016 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 13,086,924 |
|
|
Transfer agent fees |
1,649,014 |
|
|
Distribution and service plan fees |
1,247,076 |
|
|
Accounting and security lending fees |
548,164 |
|
|
Custodian fees and expenses |
69,582 |
|
|
Independent trustees' compensation |
9,878 |
|
|
Appreciation in deferred trustee compensation account |
155 |
|
|
Audit |
39,071 |
|
|
Legal |
9,868 |
|
|
Interest |
3,848 |
|
|
Miscellaneous |
19,910 |
|
|
Total expenses before reductions |
16,683,490 |
|
|
Expense reductions |
(42,427) |
16,641,063 |
|
Net investment income (loss) |
|
6,648,953 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
383,977,223 |
|
|
Foreign currency transactions |
(5,553) |
|
|
Futures contracts |
1,308,627 |
|
|
Total net realized gain (loss) |
|
385,280,297 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
3,685,084 |
|
|
Assets and liabilities in foreign currencies |
2,933 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
3,688,017 |
|
Net gain (loss) |
|
388,968,314 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 395,617,267 |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 6,648,953 |
$ 9,367,117 |
|
Net realized gain (loss) |
385,280,297 |
696,288,243 |
|
Change in net unrealized appreciation (depreciation) |
3,688,017 |
576,499,103 |
|
Net increase (decrease) in net assets resulting from operations |
395,617,267 |
1,282,154,463 |
|
Distributions to shareholders from net investment income |
- |
(9,763,755) |
|
Distributions to shareholders from net realized gain |
- |
(2,850,414) |
|
Total distributions |
- |
(12,614,169) |
|
Share transactions - net increase (decrease) |
(211,341,462) |
(377,103,293) |
|
Redemption fees |
74,895 |
17,166 |
|
Total increase (decrease) in net assets |
184,350,700 |
892,454,167 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
4,642,789,564 |
3,750,335,397 |
|
End of period (including undistributed net investment income of $5,445,262 and distributions in excess of net investment income of $1,203,691, respectively) |
$ 4,827,140,264 |
$ 4,642,789,564 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 57.14 |
$ 42.05 |
$ 36.89 |
$ 37.09 |
$ 30.04 |
$ 23.53 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.10 |
.14 |
.26 |
.14 |
.07 |
.10 |
|
Net realized and unrealized gain (loss) |
4.88 |
15.13 |
5.16 |
(.06) |
7.18 |
6.55 |
|
Total from investment operations |
4.98 |
15.27 |
5.42 |
.08 |
7.25 |
6.65 |
|
Distributions from net investment income |
- |
(.15) |
(.26) |
(.15) H |
(.09) |
(.12) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.18) M |
(.26) |
(.28) L |
(.20) |
(.14) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 62.12 |
$ 57.14 |
$ 42.05 |
$ 36.89 |
$ 37.09 |
$ 30.04 |
|
Total ReturnB, C, D |
8.72% |
36.34% |
14.69% |
.20% |
24.17% |
28.29% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.65%A |
.66% |
.66% |
.66% |
.67% |
.69% |
|
Expenses net of fee waivers, if any |
.65%A |
.65% |
.66% |
.66% |
.66% |
.69% |
|
Expenses net of all reductions |
.64%A |
.65% |
.65% |
.66% |
.66% |
.68% |
|
Net investment income (loss) |
.34%A |
.28% |
.64% |
.36% |
.22% |
.41% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 3,214,886 |
$ 3,179,928 |
$ 2,613,977 |
$ 2,583,122 |
$ 2,842,307 |
$ 2,618,954 |
|
Portfolio turnover rate G |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.14 per share is comprised of distributions from net investment income of $.118 and distributions from net realized gain of $.023 per share. LTotal distributions of $.28 per share is comprised of distributions from net investment income of $.152 and distributions from net realized gain of $.123 per share. MTotal distributions of $.18 per share is comprised of distributions from net investment income of $.147 and distributions from net realized gain of $.035 per share. |
||||||
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 57.00 |
$ 41.95 |
$ 36.81 |
$ 36.99 |
$ 29.96 |
$ 23.47 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.07 |
.09 |
.22 |
.10 |
.04 |
.08 |
|
Net realized and unrealized gain (loss) |
4.87 |
15.09 |
5.13 |
(.05) |
7.16 |
6.52 |
|
Total from investment operations |
4.94 |
15.18 |
5.35 |
.05 |
7.20 |
6.60 |
|
Distributions from net investment income |
- |
(.10) |
(.21) |
(.11) H |
(.06) |
(.09) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.13) L |
(.21) |
(.23) |
(.17) |
(.11) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.94 |
$ 57.00 |
$ 41.95 |
$ 36.81 |
$ 36.99 |
$ 29.96 |
|
Total ReturnB, C, D |
8.67% |
36.20% |
14.54% |
.14% |
24.06% |
28.15% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.75%A |
.76% |
.76% |
.77% |
.77% |
.79% |
|
Expenses net of fee waivers, if any |
.75%A |
.75% |
.76% |
.76% |
.76% |
.79% |
|
Expenses net of all reductions |
.74%A |
.75% |
.75% |
.76% |
.76% |
.78% |
|
Net investment income (loss) |
.24%A |
.18% |
.54% |
.26% |
.12% |
.31% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 519,265 |
$ 491,959 |
$ 395,589 |
$ 395,217 |
$ 453,063 |
$ 421,996 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.11 per share is comprised of distributions from net investment income of $.089 and distributions from net realized gain of $.023 per share. LTotal distributions of $.13 per share is comprised of distributions from net investment income of $.097 and distributions from net realized gain of $.035 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 56.57 |
$ 41.64 |
$ 36.53 |
$ 36.72 |
$ 29.75 |
$ 23.31 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.03 |
.01 |
.16 |
.04 |
(.01) |
.04 |
|
Net realized and unrealized gain (loss) |
4.83 |
14.98 |
5.10 |
(.05) |
7.10 |
6.48 |
|
Total from investment operations |
4.86 |
14.99 |
5.26 |
(.01) |
7.09 |
6.52 |
|
Distributions from net investment income |
- |
(.02) |
(.15) |
(.06) H |
(.01) |
(.05) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.06) |
(.15) |
(.18) |
(.12) |
(.08) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.43 |
$ 56.57 |
$ 41.64 |
$ 36.53 |
$ 36.72 |
$ 29.75 |
|
Total ReturnB, C, D |
8.59% |
36.00% |
14.40% |
(.03)% |
23.86% |
27.97% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.90%A |
.91% |
.91% |
.92% |
.92% |
.94% |
|
Expenses net of fee waivers, if any |
.90%A |
.90% |
.91% |
.91% |
.91% |
.94% |
|
Expenses net of all reductions |
.89%A |
.90% |
.90% |
.91% |
.91% |
.93% |
|
Net investment income (loss) |
.09%A |
.03% |
.39% |
.11% |
(.03)% |
.16% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 835,041 |
$ 739,551 |
$ 592,407 |
$ 590,556 |
$ 584,193 |
$ 528,819 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.08 per share is comprised of distributions from net investment income of $.052 and distributions from net realized gain of $.023 per share. |
||||||
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 56.36 |
$ 41.55 |
$ 36.46 |
$ 36.64 |
$ 29.70 |
$ 23.26 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.02 |
.02 |
.16 |
.04 |
(.01) |
.04 |
|
Net realized and unrealized gain (loss) |
4.83 |
14.92 |
5.09 |
(.05) |
7.09 |
6.46 |
|
Total from investment operations |
4.85 |
14.94 |
5.25 |
(.01) |
7.08 |
6.50 |
|
Distributions from net investment income |
- |
(.10) |
(.16) |
(.05) H |
(.03) |
(.04) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.13) L |
(.16) |
(.17) |
(.14) |
(.06) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.21 |
$ 56.36 |
$ 41.55 |
$ 36.46 |
$ 36.64 |
$ 29.70 |
|
Total ReturnB, C, D |
8.61% |
35.97% |
14.41% |
(.02)% |
23.86% |
27.98% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.90%A |
.90% |
.91% |
.91% |
.92% |
.94% |
|
Expenses net of fee waivers, if any |
.90%A |
.90% |
.91% |
.91% |
.91% |
.94% |
|
Expenses net of all reductions |
.90%A |
.90% |
.90% |
.91% |
.91% |
.93% |
|
Net investment income (loss) |
.09%A |
.03% |
.39% |
.11% |
(.03)% |
.16% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 11,018 |
$ 17,284 |
$ 5,357 |
$ 5,202 |
$ 5,739 |
$ 4,084 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.06 per share is comprised of distributions from net investment income of $.041 and distributions from net realized gain of $.023 per share. LTotal distributions of $.13 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.035 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 56.99 |
$ 41.95 |
$ 36.81 |
$ 37.00 |
$ 29.97 |
$ 23.48 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.08 |
.10 |
.23 |
.10 |
.04 |
.08 |
|
Net realized and unrealized gain (loss) |
4.86 |
15.09 |
5.13 |
(.05) |
7.17 |
6.52 |
|
Total from investment operations |
4.94 |
15.19 |
5.36 |
.05 |
7.21 |
6.60 |
|
Distributions from net investment income |
- |
(.11) |
(.22) |
(.12) H |
(.07) |
(.09) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.15) |
(.22) |
(.24) |
(.18) |
(.11) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.93 |
$ 56.99 |
$ 41.95 |
$ 36.81 |
$ 37.00 |
$ 29.97 |
|
Total ReturnB, C, D |
8.67% |
36.22% |
14.58% |
.14% |
24.08% |
28.14% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.73%A |
.74% |
.75% |
.75% |
.76% |
.79% |
|
Expenses net of fee waivers, if any |
.73%A |
.73% |
.75% |
.75% |
.75% |
.79% |
|
Expenses net of all reductions |
.73%A |
.73% |
.74% |
.74% |
.75% |
.78% |
|
Net investment income (loss) |
.26%A |
.20% |
.55% |
.27% |
.13% |
.31% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 246,929 |
$ 214,067 |
$ 143,005 |
$ 126,551 |
$ 117,936 |
$ 95,531 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.11 per share is comprised of distributions from net investment income of $.089 and distributions from net realized gain of $.023 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Growth Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Service Class 2R shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund may invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect 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 are included in the accompanying Statement of Assets and Liabilities.
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 dividends 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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,466,569,635 |
|
Gross unrealized depreciation |
(33,402,495) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 1,433,167,140 |
|
|
|
|
Tax cost |
$ 3,471,229,951 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2017 |
$ (404,192,084) |
Trading (Redemption) Fees. Service Class 2R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
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 for derivative instruments 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 included 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 underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $1,308,627 related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,266,955,745 and $1,418,786,261, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 252,591 |
|
Service Class 2 |
975,666 |
|
Service Class 2R |
18,819 |
|
|
$ 1,247,076 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.15% for Investor Class) of average net assets.
For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 1,051,920 |
|
Service Class |
165,610 |
|
Service Class 2 |
256,282 |
|
Service Class 2R |
4,858 |
|
Investor Class |
170,344 |
|
|
$ 1,649,014 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $17,848 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
|
Borrower or Lender |
Average Loan |
Weighted Average Interest Rate |
Interest Expense |
|
Borrower |
$ 84,991,600 |
.33% |
$ 3,848 |
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4,291 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,051,980. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $217,837, including $40,491 from securities loaned to FCM.
9. 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 $42,427 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 8,183,689 |
|
Service Class |
- |
834,735 |
|
Service Class 2 |
- |
302,832 |
|
Service Class 2R |
- |
28,824 |
|
Investor Class |
- |
413,675 |
|
Total |
$ - |
$ 9,763,755 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders - continued
|
From net realized gain |
Six months ended |
Year ended |
|
Initial Class |
$ - |
$ 1,948,498 |
|
Service Class |
- |
301,193 |
|
Service Class 2 |
- |
460,831 |
|
Service Class 2R |
- |
10,619 |
|
Investor Class |
- |
129,273 |
|
Total |
$ - |
$ 2,850,414 |
11. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Initial Class |
|
|
|
|
|
Shares sold |
1,124,411 |
1,850,753 |
$ 66,658,675 |
$ 90,925,901 |
|
Reinvestment of distributions |
- |
184,188 |
- |
10,132,187 |
|
Shares redeemed |
(5,029,841) |
(8,540,450) |
(300,545,789) |
(413,920,350) |
|
Net increase (decrease) |
(3,905,430) |
(6,505,509) |
$ (233,887,114) |
$ (312,862,262) |
|
Service Class |
|
|
|
|
|
Shares sold |
372,838 |
506,606 |
$ 22,172,215 |
$ 24,889,515 |
|
Reinvestment of distributions |
- |
20,698 |
- |
1,135,928 |
|
Shares redeemed |
(620,974) |
(1,325,183) |
(36,459,440) |
(63,783,330) |
|
Net increase (decrease) |
(248,136) |
(797,879) |
$ (14,287,225) |
$ (37,757,887) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
1,754,318 |
1,978,056 |
$ 103,087,075 |
$ 97,911,059 |
|
Reinvestment of distributions |
- |
14,022 |
- |
763,663 |
|
Shares redeemed |
(1,234,367) |
(3,143,720) |
(72,256,920) |
(152,819,651) |
|
Net increase (decrease) |
519,951 |
(1,151,642) |
$ 30,830,155 |
$ (54,144,929) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
163,973 |
261,110 |
$ 9,675,280 |
$ 13,399,914 |
|
Reinvestment of distributions |
- |
727 |
- |
39,443 |
|
Shares redeemed |
(290,609) |
(84,125) |
(17,526,991) |
(4,065,469) |
|
Net increase (decrease) |
(126,636) |
177,712 |
$ (7,851,711) |
$ 9,373,888 |
|
Investor Class |
|
|
|
|
|
Shares sold |
574,007 |
770,590 |
$ 33,971,174 |
$ 38,503,533 |
|
Reinvestment of distributions |
- |
9,897 |
- |
542,948 |
|
Shares redeemed |
(343,598) |
(432,922) |
(20,116,741) |
(20,758,584) |
|
Net increase (decrease) |
230,409 |
347,565 |
$ 13,854,433 |
$ 18,287,897 |
12. 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 14% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 24% of the total outstanding shares of the Fund.
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
VIPGRWTR-SANN-0814 1.833448.108
Fidelity® Variable Insurance Products:
Growth Portfolio
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.65% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,087.20 |
$ 3.36 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.57 |
$ 3.26 |
|
Service Class |
.75% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,086.70 |
$ 3.88 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.08 |
$ 3.76 |
|
Service Class 2 |
.90% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,085.90 |
$ 4.65 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.33 |
$ 4.51 |
|
Service Class 2R |
.90% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,086.10 |
$ 4.66 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.33 |
$ 4.51 |
|
Investor Class |
.73% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,086.70 |
$ 3.78 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.17 |
$ 3.66 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Top Ten Stocks as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Facebook, Inc. Class A |
7.6 |
6.6 |
|
Gilead Sciences, Inc. |
4.1 |
1.6 |
|
Keurig Green Mountain, Inc. |
3.1 |
2.5 |
|
Harley-Davidson, Inc. |
3.0 |
3.0 |
|
Google, Inc. Class A |
2.4 |
4.3 |
|
Google, Inc. Class C |
2.4 |
0.0 |
|
Apple, Inc. |
2.2 |
2.5 |
|
Actavis PLC |
2.0 |
1.1 |
|
The Blackstone Group LP |
2.0 |
0.9 |
|
Danaher Corp. |
1.9 |
1.5 |
|
|
30.7 |
|
|
Top Five Market Sectors as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Information Technology |
28.5 |
29.1 |
|
Consumer Discretionary |
15.4 |
19.6 |
|
Health Care |
14.7 |
17.0 |
|
Industrials |
10.7 |
7.8 |
|
Consumer Staples |
8.9 |
9.3 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of June 30, 2014* |
As of December 31, 2013** |
||||||
|
Stocks 100.1% |
|
|
Stocks 99.1% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
11.2% |
|
** Foreign investments |
12.6% |
|
||
† Net Other Assets (Liabilities) are not included in the pie chart.
Semiannual Report
Showing Percentage of Net Assets
|
Common Stocks - 99.8% |
|||
|
Shares |
Value |
||
|
CONSUMER DISCRETIONARY - 15.3% |
|||
|
Automobiles - 4.0% |
|||
|
Harley-Davidson, Inc. |
2,056,952 |
$ 143,678,097 |
|
|
Tesla Motors, Inc. (a)(d) |
201,627 |
48,402,578 |
|
|
|
192,080,675 |
||
|
Distributors - 0.2% |
|||
|
LKQ Corp. (a) |
418,900 |
11,180,441 |
|
|
Diversified Consumer Services - 0.5% |
|||
|
Bright Horizons Family Solutions, Inc. (a) |
234,900 |
10,086,606 |
|
|
H&R Block, Inc. |
408,760 |
13,701,635 |
|
|
|
23,788,241 |
||
|
Hotels, Restaurants & Leisure - 3.5% |
|||
|
Chipotle Mexican Grill, Inc. (a) |
33,394 |
19,786,279 |
|
|
Domino's Pizza, Inc. |
39,700 |
2,901,673 |
|
|
Dunkin' Brands Group, Inc. |
569,795 |
26,102,309 |
|
|
Las Vegas Sands Corp. |
128,000 |
9,756,160 |
|
|
Starbucks Corp. |
830,973 |
64,300,691 |
|
|
Yum! Brands, Inc. |
560,384 |
45,503,181 |
|
|
|
168,350,293 |
||
|
Household Durables - 0.3% |
|||
|
Mohawk Industries, Inc. (a) |
102,755 |
14,215,127 |
|
|
Internet & Catalog Retail - 1.0% |
|||
|
Amazon.com, Inc. (a) |
71,542 |
23,235,411 |
|
|
TripAdvisor, Inc. (a) |
230,453 |
25,041,023 |
|
|
|
48,276,434 |
||
|
Leisure Products - 0.1% |
|||
|
NJOY, Inc. (e) |
243,618 |
4,123,503 |
|
|
Media - 0.8% |
|||
|
Comcast Corp. Class A (special) (non-vtg.) |
691,919 |
36,900,040 |
|
|
Specialty Retail - 3.3% |
|||
|
CarMax, Inc. (a) |
145,500 |
7,567,455 |
|
|
Five Below, Inc. (a) |
165,200 |
6,593,132 |
|
|
Home Depot, Inc. |
1,059,232 |
85,755,423 |
|
|
Ulta Salon, Cosmetics & Fragrance, Inc. (a) |
337,844 |
30,882,320 |
|
|
Urban Outfitters, Inc. (a) |
879,000 |
29,762,940 |
|
|
|
160,561,270 |
||
|
Textiles, Apparel & Luxury Goods - 1.6% |
|||
|
ECLAT Textile Co. Ltd. |
1,342,740 |
16,271,550 |
|
|
Michael Kors Holdings Ltd. (a) |
257,403 |
22,818,776 |
|
|
NIKE, Inc. Class B |
528,676 |
40,998,824 |
|
|
|
80,089,150 |
||
|
TOTAL CONSUMER DISCRETIONARY |
739,565,174 |
||
|
CONSUMER STAPLES - 8.9% |
|||
|
Beverages - 1.2% |
|||
|
Monster Beverage Corp. (a) |
134,007 |
9,518,517 |
|
|
|
|||
|
Shares |
Value |
||
|
SABMiller PLC |
468,842 |
$ 27,184,506 |
|
|
The Coca-Cola Co. |
537,438 |
22,765,874 |
|
|
|
59,468,897 |
||
|
Food & Staples Retailing - 0.9% |
|||
|
Costco Wholesale Corp. |
209,400 |
24,114,504 |
|
|
Sprouts Farmers Market LLC |
62,695 |
2,051,380 |
|
|
Whole Foods Market, Inc. |
412,066 |
15,918,110 |
|
|
|
42,083,994 |
||
|
Food Products - 4.3% |
|||
|
Keurig Green Mountain, Inc. |
1,173,537 |
146,234,446 |
|
|
Mead Johnson Nutrition Co. Class A |
317,886 |
29,617,439 |
|
|
The Hershey Co. |
293,344 |
28,562,905 |
|
|
|
204,414,790 |
||
|
Household Products - 1.6% |
|||
|
Procter & Gamble Co. |
1,001,523 |
78,709,693 |
|
|
Personal Products - 0.9% |
|||
|
Estee Lauder Companies, Inc. Class A |
98,700 |
7,329,462 |
|
|
Herbalife Ltd. |
560,855 |
36,197,582 |
|
|
|
43,527,044 |
||
|
TOTAL CONSUMER STAPLES |
428,204,418 |
||
|
ENERGY - 8.8% |
|||
|
Energy Equipment & Services - 3.4% |
|||
|
Dril-Quip, Inc. (a) |
159,812 |
17,457,863 |
|
|
Halliburton Co. |
1,118,200 |
79,403,382 |
|
|
Oceaneering International, Inc. |
408,874 |
31,945,326 |
|
|
Pason Systems, Inc. |
533,244 |
14,992,100 |
|
|
RigNet, Inc. (a) |
410,594 |
22,098,169 |
|
|
|
165,896,840 |
||
|
Oil, Gas & Consumable Fuels - 5.4% |
|||
|
Cheniere Energy, Inc. (a) |
417,500 |
29,934,750 |
|
|
Continental Resources, Inc. (a)(d) |
266,305 |
42,086,842 |
|
|
EOG Resources, Inc. |
287,400 |
33,585,564 |
|
|
EQT Midstream Partners LP |
149,500 |
14,462,630 |
|
|
Golar LNG Ltd. (NASDAQ) (d) |
630,617 |
37,900,082 |
|
|
Markwest Energy Partners LP |
182,900 |
13,091,982 |
|
|
Noble Energy, Inc. |
190,800 |
14,779,368 |
|
|
Phillips 66 Partners LP |
395,982 |
29,920,400 |
|
|
Pioneer Natural Resources Co. |
105,298 |
24,198,533 |
|
|
Targa Resources Corp. |
142,287 |
19,858,997 |
|
|
|
259,819,148 |
||
|
TOTAL ENERGY |
425,715,988 |
||
|
FINANCIALS - 7.8% |
|||
|
Banks - 1.0% |
|||
|
HDFC Bank Ltd. sponsored ADR |
1,013,549 |
47,454,364 |
|
|
Capital Markets - 5.1% |
|||
|
BlackRock, Inc. Class A |
91,606 |
29,277,278 |
|
|
E*TRADE Financial Corp. (a) |
1,589,560 |
33,794,046 |
|
|
Fortress Investment Group LLC |
635,700 |
4,729,608 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Capital Markets - continued |
|||
|
Harvest Capital Credit Corp. (d) |
105,739 |
$ 1,568,109 |
|
|
Invesco Ltd. |
1,316,093 |
49,682,511 |
|
|
KKR & Co. LP |
604,500 |
14,707,485 |
|
|
Legg Mason, Inc. |
385,742 |
19,792,422 |
|
|
The Blackstone Group LP |
2,800,848 |
93,660,357 |
|
|
|
247,211,816 |
||
|
Consumer Finance - 0.7% |
|||
|
American Express Co. |
273,293 |
25,927,307 |
|
|
Shriram Transport Finance Co. Ltd. |
478,307 |
7,207,655 |
|
|
|
33,134,962 |
||
|
Diversified Financial Services - 0.8% |
|||
|
Berkshire Hathaway, Inc. Class B (a) |
95,200 |
12,048,512 |
|
|
McGraw Hill Financial, Inc. |
341,713 |
28,372,430 |
|
|
|
40,420,942 |
||
|
Real Estate Management & Development - 0.2% |
|||
|
Leopalace21 Corp. (a) |
320,900 |
1,655,167 |
|
|
Realogy Holdings Corp. (a) |
181,301 |
6,836,861 |
|
|
|
8,492,028 |
||
|
TOTAL FINANCIALS |
376,714,112 |
||
|
HEALTH CARE - 14.7% |
|||
|
Biotechnology - 9.5% |
|||
|
Acceleron Pharma, Inc. |
190,300 |
6,464,491 |
|
|
Actelion Ltd. |
72,344 |
9,153,131 |
|
|
Alexion Pharmaceuticals, Inc. (a) |
205,081 |
32,043,906 |
|
|
Biogen Idec, Inc. (a) |
272,405 |
85,892,021 |
|
|
BioMarin Pharmaceutical, Inc. (a) |
341,925 |
21,271,154 |
|
|
Cytokinetics, Inc. warrants 6/25/17 (a) |
1,084,980 |
21,255 |
|
|
Enanta Pharmaceuticals, Inc. (a)(d) |
402,880 |
17,352,042 |
|
|
Gilead Sciences, Inc. (a) |
2,421,190 |
200,740,863 |
|
|
Insmed, Inc. (a) |
1,164,602 |
23,268,748 |
|
|
Kamada (a) |
185,418 |
1,320,176 |
|
|
Ophthotech Corp. |
198,539 |
8,400,185 |
|
|
uniQure B.V. |
131,324 |
1,784,693 |
|
|
Vanda Pharmaceuticals, Inc. (a)(d) |
818,010 |
13,235,402 |
|
|
Vertex Pharmaceuticals, Inc. (a) |
388,900 |
36,821,052 |
|
|
|
457,769,119 |
||
|
Health Care Equipment & Supplies - 0.5% |
|||
|
AxoGen, Inc. (a) |
119,651 |
332,630 |
|
|
GI Dynamics, Inc. CDI (a) |
704,680 |
385,397 |
|
|
The Cooper Companies, Inc. |
176,500 |
23,921,045 |
|
|
|
24,639,072 |
||
|
Health Care Providers & Services - 0.4% |
|||
|
Apollo Hospitals Enterprise Ltd. |
483,176 |
8,005,066 |
|
|
Qualicorp SA (a) |
992,800 |
11,727,576 |
|
|
|
19,732,642 |
||
|
Health Care Technology - 0.2% |
|||
|
Cerner Corp. (a) |
136,687 |
7,050,315 |
|
|
|
|||
|
Shares |
Value |
||
|
Life Sciences Tools & Services - 0.8% |
|||
|
Illumina, Inc. (a) |
223,898 |
$ 39,974,749 |
|
|
Pharmaceuticals - 3.3% |
|||
|
AbbVie, Inc. |
580,147 |
32,743,497 |
|
|
Actavis PLC (a) |
437,566 |
97,599,096 |
|
|
AVANIR Pharmaceuticals Class A (a) |
1,018,400 |
5,743,776 |
|
|
Perrigo Co. PLC |
157,577 |
22,968,424 |
|
|
|
159,054,793 |
||
|
TOTAL HEALTH CARE |
708,220,690 |
||
|
INDUSTRIALS - 10.7% |
|||
|
Aerospace & Defense - 2.5% |
|||
|
TransDigm Group, Inc. |
212,596 |
35,558,807 |
|
|
United Technologies Corp. |
729,377 |
84,206,575 |
|
|
|
119,765,382 |
||
|
Airlines - 0.2% |
|||
|
Ryanair Holdings PLC sponsored ADR (a) |
144,682 |
8,073,256 |
|
|
Building Products - 0.4% |
|||
|
A.O. Smith Corp. |
400,918 |
19,877,514 |
|
|
Commercial Services & Supplies - 0.6% |
|||
|
KAR Auction Services, Inc. |
827,935 |
26,386,288 |
|
|
Construction & Engineering - 0.5% |
|||
|
Jacobs Engineering Group, Inc. (a) |
385,294 |
20,528,464 |
|
|
MasTec, Inc. (a) |
76,200 |
2,348,484 |
|
|
|
22,876,948 |
||
|
Electrical Equipment - 0.6% |
|||
|
AMETEK, Inc. |
338,300 |
17,686,324 |
|
|
Power Solutions International, Inc. (a) |
131,843 |
9,488,741 |
|
|
|
27,175,065 |
||
|
Industrial Conglomerates - 2.4% |
|||
|
Danaher Corp. |
1,171,226 |
92,210,623 |
|
|
Roper Industries, Inc. |
170,117 |
24,838,783 |
|
|
|
117,049,406 |
||
|
Machinery - 2.4% |
|||
|
Allison Transmission Holdings, Inc. |
616,500 |
19,173,150 |
|
|
Caterpillar, Inc. |
338,303 |
36,763,387 |
|
|
Manitowoc Co., Inc. |
1,461,205 |
48,015,196 |
|
|
Sarine Technologies Ltd. |
2,211,000 |
4,557,118 |
|
|
Sun Hydraulics Corp. |
58,700 |
2,383,220 |
|
|
Weg SA |
482,170 |
6,173,609 |
|
|
|
117,065,680 |
||
|
Professional Services - 0.6% |
|||
|
Verisk Analytics, Inc. (a) |
405,104 |
24,314,342 |
|
|
WageWorks, Inc. (a) |
112,773 |
5,436,786 |
|
|
|
29,751,128 |
||
|
Road & Rail - 0.5% |
|||
|
J.B. Hunt Transport Services, Inc. |
349,200 |
25,763,976 |
|
|
TOTAL INDUSTRIALS |
513,784,643 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
INFORMATION TECHNOLOGY - 28.3% |
|||
|
Communications Equipment - 0.4% |
|||
|
QUALCOMM, Inc. |
280,200 |
$ 22,191,840 |
|
|
Electronic Equipment & Components - 0.7% |
|||
|
TE Connectivity Ltd. |
540,614 |
33,431,570 |
|
|
Internet Software & Services - 15.8% |
|||
|
Cornerstone OnDemand, Inc. (a) |
257,965 |
11,871,549 |
|
|
CoStar Group, Inc. (a) |
39,100 |
6,184,447 |
|
|
Cvent, Inc. (d) |
594,275 |
17,287,460 |
|
|
Demandware, Inc. (a) |
182,700 |
12,673,899 |
|
|
Facebook, Inc. Class A (a) |
5,446,209 |
366,475,397 |
|
|
Google, Inc.: |
|
|
|
|
Class A (a) |
201,898 |
118,043,704 |
|
|
Class C (a) |
201,898 |
116,147,881 |
|
|
Naver Corp. |
45,797 |
37,787,050 |
|
|
SPS Commerce, Inc. (a) |
249,629 |
15,774,057 |
|
|
Textura Corp. (d) |
1,121,261 |
26,506,610 |
|
|
Xoom Corp. (a) |
73,430 |
1,935,615 |
|
|
Yahoo!, Inc. (a) |
962,588 |
33,815,716 |
|
|
|
764,503,385 |
||
|
IT Services - 2.2% |
|||
|
Gartner, Inc. Class A (a) |
369,017 |
26,023,079 |
|
|
Visa, Inc. Class A |
377,468 |
79,536,282 |
|
|
|
105,559,361 |
||
|
Semiconductors & Semiconductor Equipment - 0.3% |
|||
|
M/A-COM Technology Solutions, Inc. (a) |
87,736 |
1,972,305 |
|
|
MediaTek, Inc. |
685,000 |
11,580,049 |
|
|
|
13,552,354 |
||
|
Software - 6.4% |
|||
|
Activision Blizzard, Inc. |
377,032 |
8,407,814 |
|
|
ANSYS, Inc. (a) |
5,410 |
410,186 |
|
|
Computer Modelling Group Ltd. |
553,300 |
15,358,930 |
|
|
Electronic Arts, Inc. (a) |
1,213,321 |
43,521,824 |
|
|
Fleetmatics Group PLC (a) |
165,050 |
5,337,717 |
|
|
Microsoft Corp. |
2,097,200 |
87,453,240 |
|
|
salesforce.com, Inc. (a) |
1,468,462 |
85,288,273 |
|
|
ServiceNow, Inc. (a) |
109,600 |
6,790,816 |
|
|
SolarWinds, Inc. (a) |
299,007 |
11,559,611 |
|
|
Solera Holdings, Inc. |
78,200 |
5,251,130 |
|
|
SS&C Technologies Holdings, Inc. (a) |
782,308 |
34,593,660 |
|
|
The Rubicon Project, Inc. |
278,602 |
3,577,250 |
|
|
|
307,550,451 |
||
|
|
|||
|
Shares |
Value |
||
|
Technology Hardware, Storage & Peripherals - 2.5% |
|||
|
Apple, Inc. |
1,159,327 |
$ 107,736,258 |
|
|
Nimble Storage, Inc. (d) |
407,900 |
12,530,688 |
|
|
|
120,266,946 |
||
|
TOTAL INFORMATION TECHNOLOGY |
1,367,055,907 |
||
|
MATERIALS - 4.9% |
|||
|
Chemicals - 2.3% |
|||
|
FMC Corp. |
367,005 |
26,127,086 |
|
|
Monsanto Co. |
272,549 |
33,997,762 |
|
|
Sherwin-Williams Co. |
179,260 |
37,090,687 |
|
|
Westlake Chemical Corp. |
179,904 |
15,068,759 |
|
|
|
112,284,294 |
||
|
Construction Materials - 2.6% |
|||
|
CaesarStone Sdot-Yam Ltd. |
50,648 |
2,485,804 |
|
|
Eagle Materials, Inc. |
758,552 |
71,516,283 |
|
|
James Hardie Industries PLC sponsored ADR |
210,300 |
13,747,311 |
|
|
Vulcan Materials Co. |
593,846 |
37,857,683 |
|
|
|
125,607,081 |
||
|
TOTAL MATERIALS |
237,891,375 |
||
|
TELECOMMUNICATION SERVICES - 0.1% |
|||
|
Diversified Telecommunication Services - 0.1% |
|||
|
8x8, Inc. (a) |
697,759 |
5,637,893 |
|
|
UTILITIES - 0.3% |
|||
|
Electric Utilities - 0.3% |
|||
|
ITC Holdings Corp. |
401,937 |
14,662,662 |
|
|
TOTAL COMMON STOCKS (Cost $3,375,450,656) |
|
||
|
Convertible Preferred Stocks - 0.3% |
|||
|
|
|
|
|
|
CONSUMER DISCRETIONARY - 0.1% |
|||
|
Household Durables - 0.1% |
|||
|
Blu Homes, Inc. Series A, 5.00% (e) |
1,049,416 |
4,848,302 |
|
|
INFORMATION TECHNOLOGY - 0.2% |
|||
|
Internet Software & Services - 0.2% |
|||
|
Uber Technologies, Inc. 8.00% (e) |
159,060 |
9,870,023 |
|
|
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $14,718,325) |
|
||
|
U.S. Treasury Obligations - 0.0% |
||||
|
|
Principal Amount |
Value |
||
|
U.S. Treasury Bills, yield at date of purchase 0.02% 7/31/14 |
|
$ 850,000 |
$ 849,984 |
|
|
Money Market Funds - 1.5% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.11% (b) |
6,679,957 |
6,679,957 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
64,695,963 |
64,695,963 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $71,375,920) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 101.6% (Cost $3,462,394,887) |
4,904,397,091 |
|
NET OTHER ASSETS (LIABILITIES) - (1.6)% |
(77,256,827) |
||
|
NET ASSETS - 100% |
$ 4,827,140,264 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $18,841,827 or 0.4% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost |
|
Blu Homes, Inc. Series A, 5.00% |
6/21/13 |
$ 4,848,302 |
|
NJOY, Inc. |
9/11/13 |
$ 1,968,433 |
|
Uber Technologies, Inc. 8.00% |
6/6/14 |
$ 9,870,023 |
|
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 |
$ 49,544 |
|
Fidelity Securities Lending Cash Central Fund |
217,837 |
|
Total |
$ 267,381 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 744,413,476 |
$ 735,441,671 |
$ - |
$ 8,971,805 |
|
Consumer Staples |
428,204,418 |
428,204,418 |
- |
- |
|
Energy |
425,715,988 |
425,715,988 |
- |
- |
|
Financials |
376,714,112 |
375,058,945 |
1,655,167 |
- |
|
Health Care |
708,220,690 |
708,199,435 |
21,255 |
- |
|
Industrials |
513,784,643 |
513,784,643 |
- |
- |
|
Information Technology |
1,376,925,930 |
1,367,055,907 |
- |
9,870,023 |
|
Materials |
237,891,375 |
237,891,375 |
- |
- |
|
Telecommunication Services |
5,637,893 |
5,637,893 |
- |
- |
|
Utilities |
14,662,662 |
14,662,662 |
- |
- |
|
U.S. Government and Government Agency Obligations |
849,984 |
- |
849,984 |
- |
|
Money Market Funds |
71,375,920 |
71,375,920 |
- |
- |
|
Total Investments in Securities: |
$ 4,904,397,091 |
$ 4,883,028,857 |
$ 2,526,406 |
$ 18,841,828 |
|
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% |
|
Ireland |
3.1% |
|
Bermuda |
1.8% |
|
India |
1.4% |
|
Others (Individually Less Than 1%) |
4.9% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $63,532,662) - See accompanying schedule: Unaffiliated issuers (cost $3,391,018,967) |
$ 4,833,021,171 |
|
|
Fidelity Central Funds (cost $71,375,920) |
71,375,920 |
|
|
Total Investments (cost $3,462,394,887) |
|
$ 4,904,397,091 |
|
Cash |
|
15,063 |
|
Receivable for investments sold |
|
22,532,201 |
|
Receivable for fund shares sold |
|
1,059,279 |
|
Dividends receivable |
|
2,205,607 |
|
Distributions receivable from Fidelity Central Funds |
|
34,246 |
|
Other receivables |
|
190,579 |
|
Total assets |
|
4,930,434,066 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 32,129,465 |
|
|
Payable for fund shares redeemed |
3,434,978 |
|
|
Accrued management fee |
2,203,254 |
|
|
Distribution and service plan fees payable |
214,911 |
|
|
Other affiliated payables |
372,383 |
|
|
Other payables and accrued expenses |
242,848 |
|
|
Collateral on securities loaned, at value |
64,695,963 |
|
|
Total liabilities |
|
103,293,802 |
|
|
|
|
|
Net Assets |
|
$ 4,827,140,264 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 3,408,403,798 |
|
Undistributed net investment income |
|
5,445,262 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(28,712,804) |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
1,442,004,008 |
|
Net Assets |
|
$ 4,827,140,264 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 62.12 |
|
|
|
|
|
Service Class: |
|
$ 61.94 |
|
|
|
|
|
Service Class 2: |
|
$ 61.43 |
|
|
|
|
|
Service Class 2R: |
|
$ 61.21 |
|
|
|
|
|
Investor Class: |
|
$ 61.93 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 23,022,608 |
|
Interest |
|
27 |
|
Income from Fidelity Central Funds |
|
267,381 |
|
Total income |
|
23,290,016 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 13,086,924 |
|
|
Transfer agent fees |
1,649,014 |
|
|
Distribution and service plan fees |
1,247,076 |
|
|
Accounting and security lending fees |
548,164 |
|
|
Custodian fees and expenses |
69,582 |
|
|
Independent trustees' compensation |
9,878 |
|
|
Appreciation in deferred trustee compensation account |
155 |
|
|
Audit |
39,071 |
|
|
Legal |
9,868 |
|
|
Interest |
3,848 |
|
|
Miscellaneous |
19,910 |
|
|
Total expenses before reductions |
16,683,490 |
|
|
Expense reductions |
(42,427) |
16,641,063 |
|
Net investment income (loss) |
|
6,648,953 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
383,977,223 |
|
|
Foreign currency transactions |
(5,553) |
|
|
Futures contracts |
1,308,627 |
|
|
Total net realized gain (loss) |
|
385,280,297 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
3,685,084 |
|
|
Assets and liabilities in foreign currencies |
2,933 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
3,688,017 |
|
Net gain (loss) |
|
388,968,314 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 395,617,267 |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 6,648,953 |
$ 9,367,117 |
|
Net realized gain (loss) |
385,280,297 |
696,288,243 |
|
Change in net unrealized appreciation (depreciation) |
3,688,017 |
576,499,103 |
|
Net increase (decrease) in net assets resulting from operations |
395,617,267 |
1,282,154,463 |
|
Distributions to shareholders from net investment income |
- |
(9,763,755) |
|
Distributions to shareholders from net realized gain |
- |
(2,850,414) |
|
Total distributions |
- |
(12,614,169) |
|
Share transactions - net increase (decrease) |
(211,341,462) |
(377,103,293) |
|
Redemption fees |
74,895 |
17,166 |
|
Total increase (decrease) in net assets |
184,350,700 |
892,454,167 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
4,642,789,564 |
3,750,335,397 |
|
End of period (including undistributed net investment income of $5,445,262 and distributions in excess of net investment income of $1,203,691, respectively) |
$ 4,827,140,264 |
$ 4,642,789,564 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 57.14 |
$ 42.05 |
$ 36.89 |
$ 37.09 |
$ 30.04 |
$ 23.53 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.10 |
.14 |
.26 |
.14 |
.07 |
.10 |
|
Net realized and unrealized gain (loss) |
4.88 |
15.13 |
5.16 |
(.06) |
7.18 |
6.55 |
|
Total from investment operations |
4.98 |
15.27 |
5.42 |
.08 |
7.25 |
6.65 |
|
Distributions from net investment income |
- |
(.15) |
(.26) |
(.15) H |
(.09) |
(.12) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.18) M |
(.26) |
(.28) L |
(.20) |
(.14) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 62.12 |
$ 57.14 |
$ 42.05 |
$ 36.89 |
$ 37.09 |
$ 30.04 |
|
Total ReturnB, C, D |
8.72% |
36.34% |
14.69% |
.20% |
24.17% |
28.29% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.65%A |
.66% |
.66% |
.66% |
.67% |
.69% |
|
Expenses net of fee waivers, if any |
.65%A |
.65% |
.66% |
.66% |
.66% |
.69% |
|
Expenses net of all reductions |
.64%A |
.65% |
.65% |
.66% |
.66% |
.68% |
|
Net investment income (loss) |
.34%A |
.28% |
.64% |
.36% |
.22% |
.41% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 3,214,886 |
$ 3,179,928 |
$ 2,613,977 |
$ 2,583,122 |
$ 2,842,307 |
$ 2,618,954 |
|
Portfolio turnover rate G |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.14 per share is comprised of distributions from net investment income of $.118 and distributions from net realized gain of $.023 per share. LTotal distributions of $.28 per share is comprised of distributions from net investment income of $.152 and distributions from net realized gain of $.123 per share. MTotal distributions of $.18 per share is comprised of distributions from net investment income of $.147 and distributions from net realized gain of $.035 per share. |
||||||
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 57.00 |
$ 41.95 |
$ 36.81 |
$ 36.99 |
$ 29.96 |
$ 23.47 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.07 |
.09 |
.22 |
.10 |
.04 |
.08 |
|
Net realized and unrealized gain (loss) |
4.87 |
15.09 |
5.13 |
(.05) |
7.16 |
6.52 |
|
Total from investment operations |
4.94 |
15.18 |
5.35 |
.05 |
7.20 |
6.60 |
|
Distributions from net investment income |
- |
(.10) |
(.21) |
(.11) H |
(.06) |
(.09) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.13) L |
(.21) |
(.23) |
(.17) |
(.11) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.94 |
$ 57.00 |
$ 41.95 |
$ 36.81 |
$ 36.99 |
$ 29.96 |
|
Total ReturnB, C, D |
8.67% |
36.20% |
14.54% |
.14% |
24.06% |
28.15% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.75%A |
.76% |
.76% |
.77% |
.77% |
.79% |
|
Expenses net of fee waivers, if any |
.75%A |
.75% |
.76% |
.76% |
.76% |
.79% |
|
Expenses net of all reductions |
.74%A |
.75% |
.75% |
.76% |
.76% |
.78% |
|
Net investment income (loss) |
.24%A |
.18% |
.54% |
.26% |
.12% |
.31% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 519,265 |
$ 491,959 |
$ 395,589 |
$ 395,217 |
$ 453,063 |
$ 421,996 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.11 per share is comprised of distributions from net investment income of $.089 and distributions from net realized gain of $.023 per share. LTotal distributions of $.13 per share is comprised of distributions from net investment income of $.097 and distributions from net realized gain of $.035 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 56.57 |
$ 41.64 |
$ 36.53 |
$ 36.72 |
$ 29.75 |
$ 23.31 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.03 |
.01 |
.16 |
.04 |
(.01) |
.04 |
|
Net realized and unrealized gain (loss) |
4.83 |
14.98 |
5.10 |
(.05) |
7.10 |
6.48 |
|
Total from investment operations |
4.86 |
14.99 |
5.26 |
(.01) |
7.09 |
6.52 |
|
Distributions from net investment income |
- |
(.02) |
(.15) |
(.06) H |
(.01) |
(.05) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.06) |
(.15) |
(.18) |
(.12) |
(.08) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.43 |
$ 56.57 |
$ 41.64 |
$ 36.53 |
$ 36.72 |
$ 29.75 |
|
Total ReturnB, C, D |
8.59% |
36.00% |
14.40% |
(.03)% |
23.86% |
27.97% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.90%A |
.91% |
.91% |
.92% |
.92% |
.94% |
|
Expenses net of fee waivers, if any |
.90%A |
.90% |
.91% |
.91% |
.91% |
.94% |
|
Expenses net of all reductions |
.89%A |
.90% |
.90% |
.91% |
.91% |
.93% |
|
Net investment income (loss) |
.09%A |
.03% |
.39% |
.11% |
(.03)% |
.16% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 835,041 |
$ 739,551 |
$ 592,407 |
$ 590,556 |
$ 584,193 |
$ 528,819 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.08 per share is comprised of distributions from net investment income of $.052 and distributions from net realized gain of $.023 per share. |
||||||
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 56.36 |
$ 41.55 |
$ 36.46 |
$ 36.64 |
$ 29.70 |
$ 23.26 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.02 |
.02 |
.16 |
.04 |
(.01) |
.04 |
|
Net realized and unrealized gain (loss) |
4.83 |
14.92 |
5.09 |
(.05) |
7.09 |
6.46 |
|
Total from investment operations |
4.85 |
14.94 |
5.25 |
(.01) |
7.08 |
6.50 |
|
Distributions from net investment income |
- |
(.10) |
(.16) |
(.05) H |
(.03) |
(.04) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.13) L |
(.16) |
(.17) |
(.14) |
(.06) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.21 |
$ 56.36 |
$ 41.55 |
$ 36.46 |
$ 36.64 |
$ 29.70 |
|
Total ReturnB, C, D |
8.61% |
35.97% |
14.41% |
(.02)% |
23.86% |
27.98% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.90%A |
.90% |
.91% |
.91% |
.92% |
.94% |
|
Expenses net of fee waivers, if any |
.90%A |
.90% |
.91% |
.91% |
.91% |
.94% |
|
Expenses net of all reductions |
.90%A |
.90% |
.90% |
.91% |
.91% |
.93% |
|
Net investment income (loss) |
.09%A |
.03% |
.39% |
.11% |
(.03)% |
.16% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 11,018 |
$ 17,284 |
$ 5,357 |
$ 5,202 |
$ 5,739 |
$ 4,084 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.06 per share is comprised of distributions from net investment income of $.041 and distributions from net realized gain of $.023 per share. LTotal distributions of $.13 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.035 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Years ended December 31, |
|||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 56.99 |
$ 41.95 |
$ 36.81 |
$ 37.00 |
$ 29.97 |
$ 23.48 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.08 |
.10 |
.23 |
.10 |
.04 |
.08 |
|
Net realized and unrealized gain (loss) |
4.86 |
15.09 |
5.13 |
(.05) |
7.17 |
6.52 |
|
Total from investment operations |
4.94 |
15.19 |
5.36 |
.05 |
7.21 |
6.60 |
|
Distributions from net investment income |
- |
(.11) |
(.22) |
(.12) H |
(.07) |
(.09) |
|
Distributions from net realized gain |
- |
(.04) |
- |
(.12) H |
(.11) |
(.02) |
|
Total distributions |
- |
(.15) |
(.22) |
(.24) |
(.18) |
(.11) K |
|
Redemption fees added to paid in capital E, J |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 61.93 |
$ 56.99 |
$ 41.95 |
$ 36.81 |
$ 37.00 |
$ 29.97 |
|
Total ReturnB, C, D |
8.67% |
36.22% |
14.58% |
.14% |
24.08% |
28.14% |
|
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
|
Expenses before reductions |
.73%A |
.74% |
.75% |
.75% |
.76% |
.79% |
|
Expenses net of fee waivers, if any |
.73%A |
.73% |
.75% |
.75% |
.75% |
.79% |
|
Expenses net of all reductions |
.73%A |
.73% |
.74% |
.74% |
.75% |
.78% |
|
Net investment income (loss) |
.26%A |
.20% |
.55% |
.27% |
.13% |
.31% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 246,929 |
$ 214,067 |
$ 143,005 |
$ 126,551 |
$ 117,936 |
$ 95,531 |
|
Portfolio turnover rateG |
54%A |
74% |
68% |
71% |
75% |
134% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. IExpense 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. JAmount represents less than $.01 per share. KTotal distributions of $.11 per share is comprised of distributions from net investment income of $.089 and distributions from net realized gain of $.023 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Growth Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Service Class 2R shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund may invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect 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 are included in the accompanying Statement of Assets and Liabilities.
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 dividends 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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,466,569,635 |
|
Gross unrealized depreciation |
(33,402,495) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 1,433,167,140 |
|
|
|
|
Tax cost |
$ 3,471,229,951 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2017 |
$ (404,192,084) |
Trading (Redemption) Fees. Service Class 2R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
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 for derivative instruments 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 included 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 underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $1,308,627 related to its investment in futures contracts. This amount is included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,266,955,745 and $1,418,786,261, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 252,591 |
|
Service Class 2 |
975,666 |
|
Service Class 2R |
18,819 |
|
|
$ 1,247,076 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.15% for Investor Class) of average net assets.
For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 1,051,920 |
|
Service Class |
165,610 |
|
Service Class 2 |
256,282 |
|
Service Class 2R |
4,858 |
|
Investor Class |
170,344 |
|
|
$ 1,649,014 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $17,848 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
|
Borrower or Lender |
Average Loan |
Weighted Average Interest Rate |
Interest Expense |
|
Borrower |
$ 84,991,600 |
.33% |
$ 3,848 |
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4,291 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,051,980. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $217,837, including $40,491 from securities loaned to FCM.
9. 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 $42,427 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 8,183,689 |
|
Service Class |
- |
834,735 |
|
Service Class 2 |
- |
302,832 |
|
Service Class 2R |
- |
28,824 |
|
Investor Class |
- |
413,675 |
|
Total |
$ - |
$ 9,763,755 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Distributions to Shareholders - continued
|
From net realized gain |
Six months ended |
Year ended |
|
Initial Class |
$ - |
$ 1,948,498 |
|
Service Class |
- |
301,193 |
|
Service Class 2 |
- |
460,831 |
|
Service Class 2R |
- |
10,619 |
|
Investor Class |
- |
129,273 |
|
Total |
$ - |
$ 2,850,414 |
11. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Initial Class |
|
|
|
|
|
Shares sold |
1,124,411 |
1,850,753 |
$ 66,658,675 |
$ 90,925,901 |
|
Reinvestment of distributions |
- |
184,188 |
- |
10,132,187 |
|
Shares redeemed |
(5,029,841) |
(8,540,450) |
(300,545,789) |
(413,920,350) |
|
Net increase (decrease) |
(3,905,430) |
(6,505,509) |
$ (233,887,114) |
$ (312,862,262) |
|
Service Class |
|
|
|
|
|
Shares sold |
372,838 |
506,606 |
$ 22,172,215 |
$ 24,889,515 |
|
Reinvestment of distributions |
- |
20,698 |
- |
1,135,928 |
|
Shares redeemed |
(620,974) |
(1,325,183) |
(36,459,440) |
(63,783,330) |
|
Net increase (decrease) |
(248,136) |
(797,879) |
$ (14,287,225) |
$ (37,757,887) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
1,754,318 |
1,978,056 |
$ 103,087,075 |
$ 97,911,059 |
|
Reinvestment of distributions |
- |
14,022 |
- |
763,663 |
|
Shares redeemed |
(1,234,367) |
(3,143,720) |
(72,256,920) |
(152,819,651) |
|
Net increase (decrease) |
519,951 |
(1,151,642) |
$ 30,830,155 |
$ (54,144,929) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
163,973 |
261,110 |
$ 9,675,280 |
$ 13,399,914 |
|
Reinvestment of distributions |
- |
727 |
- |
39,443 |
|
Shares redeemed |
(290,609) |
(84,125) |
(17,526,991) |
(4,065,469) |
|
Net increase (decrease) |
(126,636) |
177,712 |
$ (7,851,711) |
$ 9,373,888 |
|
Investor Class |
|
|
|
|
|
Shares sold |
574,007 |
770,590 |
$ 33,971,174 |
$ 38,503,533 |
|
Reinvestment of distributions |
- |
9,897 |
- |
542,948 |
|
Shares redeemed |
(343,598) |
(432,922) |
(20,116,741) |
(20,758,584) |
|
Net increase (decrease) |
230,409 |
347,565 |
$ 13,854,433 |
$ 18,287,897 |
12. 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 14% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 24% of the total outstanding shares of the Fund.
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
VIPGRWT-SANN-0814 1.705692.116
Fidelity® Variable Insurance Products:
High Income Portfolio
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.00 |
$ 3.46 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.42 |
$ 3.41 |
|
Service Class |
.78% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,048.50 |
$ 3.96 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.93 |
$ 3.91 |
|
Service Class 2 |
.93% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,047.90 |
$ 4.72 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Initial Class R |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,048.40 |
$ 3.45 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.42 |
$ 3.41 |
|
Service Class R |
.78% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,047.00 |
$ 3.96 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.93 |
$ 3.91 |
|
Service Class 2R |
.93% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,046.10 |
$ 4.72 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Investor Class |
.71% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,048.40 |
$ 3.61 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.27 |
$ 3.56 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Top Five Holdings as of June 30, 2014 |
||
|
(by issuer, excluding cash equivalents) |
% of fund's |
% of fund's net assets |
|
Alcatel-Lucent U.S.A., Inc. |
2.3 |
1.2 |
|
Clear Channel Communications, Inc. |
2.0 |
0.6 |
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp. |
1.7 |
1.5 |
|
SLM Corp. |
1.7 |
1.0 |
|
APX Group, Inc. |
1.6 |
1.2 |
|
|
9.3 |
|
|
Top Five Market Sectors as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Energy |
11.7 |
12.9 |
|
Telecommunications |
9.2 |
7.3 |
|
Diversified Financial Services |
7.7 |
6.0 |
|
Technology |
7.4 |
9.0 |
|
Healthcare |
6.4 |
4.8 |
|
Quality Diversification (% of fund's net assets) |
|||||||
|
As of June 30, 2014 |
As of December 31, 2013 |
||||||
|
BBB 1.0% |
|
|
BBB 1.1% |
|
||
 |
BB 34.1% |
|
|
BB 35.8% |
|
||
 |
B 43.0% |
|
|
B 43.2% |
|
||
 |
CCC,CC,C 17.0% |
|
|
CCC,CC,C 14.7% |
|
||
 |
Not Rated 1.4% |
|
|
Not Rated 0.6% |
|
||
 |
Equities 0.4% |
|
|
Equities 0.0% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of June 30, 2014 * |
As of December 31, 2013 ** |
||||||
|
Nonconvertible |
|
|
Nonconvertible |
|
||
|
Convertible Bonds, |
|
 |
Convertible Bonds, |
|
||
|
Bank Loan |
|
|
Bank Loan |
|
||
 |
Other Investments 1.2% |
|
|
Other Investments 0.3% |
|
||
|
Common Stocks 0.0%† |
|
|
Common Stocks 0.0%† |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
22.0% |
|
** Foreign investments |
20.8% |
|
||
|
† Amount represents less than 0.1% |
Semiannual Report
Showing Percentage of Net Assets
|
Nonconvertible Bonds - 84.3% |
||||
|
|
Principal |
Value |
||
|
Aerospace - 0.9% |
||||
|
TransDigm, Inc.: |
|
|
|
|
|
5.5% 10/15/20 |
|
$ 7,785,000 |
$ 7,912,674 |
|
|
6% 7/15/22 (d) |
|
1,545,000 |
1,587,488 |
|
|
6.5% 7/15/24 (d) |
|
1,520,000 |
1,582,700 |
|
|
Triumph Group, Inc.: |
|
|
|
|
|
4.875% 4/1/21 |
|
2,210,000 |
2,204,475 |
|
|
5.25% 6/1/22 (d) |
|
655,000 |
656,638 |
|
|
|
13,943,975 |
|||
|
Air Transportation - 3.2% |
||||
|
Air Canada: |
|
|
|
|
|
6.625% 5/15/18 (d) |
|
4,995,000 |
5,170,824 |
|
|
7.75% 4/15/21 (d) |
|
4,185,000 |
4,446,563 |
|
|
Allegiant Travel Co. 5.5% 7/15/19 |
|
495,000 |
503,044 |
|
|
American Airlines, Inc. pass-thru certificates Series 2013-1B Class B, 5.625% 1/15/21 (d) |
|
480,502 |
497,319 |
|
|
Continental Airlines, Inc.: |
|
|
|
|
|
pass-thru trust certificates 9.798% 4/1/21 |
|
2,687,460 |
3,090,578 |
|
|
5.5% 4/29/22 |
|
2,867,570 |
2,996,611 |
|
|
6.125% 4/29/18 (d) |
|
520,000 |
556,400 |
|
|
9.25% 5/10/17 |
|
592,300 |
666,337 |
|
|
Delta Air Lines, Inc. pass-thru trust certificates: |
|
|
|
|
|
6.375% 7/2/17 (d) |
|
1,985,000 |
2,123,950 |
|
|
6.75% 5/23/17 |
|
1,985,000 |
2,123,950 |
|
|
8.021% 8/10/22 |
|
1,462,738 |
1,711,403 |
|
|
8.954% 8/10/14 |
|
1,144,613 |
1,153,197 |
|
|
Northwest Airlines, Inc. pass-thru trust certificates 8.028% 11/1/17 |
|
536,518 |
606,909 |
|
|
U.S. Airways Group, Inc. 6.125% 6/1/18 |
|
3,130,000 |
3,306,063 |
|
|
U.S. Airways pass-thru certificates: |
|
|
|
|
|
Series 2012-2C, 5.45% 6/3/18 |
|
3,565,000 |
3,680,863 |
|
|
Series 2013-1 Class B, 5.375% 5/15/23 |
|
710,000 |
734,850 |
|
|
United Air Lines, Inc. pass-thru trust certificates: |
|
|
|
|
|
Class B, 7.336% 7/2/19 |
|
2,348,273 |
2,583,101 |
|
|
9.75% 1/15/17 |
|
1,469,384 |
1,682,444 |
|
|
12% 1/15/16 (d) |
|
392,683 |
444,714 |
|
|
United Continental Holdings, Inc.: |
|
|
|
|
|
6% 12/1/20 |
|
4,505,000 |
4,707,725 |
|
|
6% 7/15/26 |
|
4,610,000 |
4,494,750 |
|
|
6% 7/15/28 |
|
3,050,000 |
2,935,625 |
|
|
6.375% 6/1/18 |
|
300,000 |
324,000 |
|
|
|
50,541,220 |
|||
|
Automotive - 2.2% |
||||
|
American Axle & Manufacturing, Inc.: |
|
|
|
|
|
5.125% 2/15/19 |
|
575,000 |
603,750 |
|
|
6.25% 3/15/21 |
|
6,980,000 |
7,503,500 |
|
|
|
||||
|
|
Principal |
Value |
||
|
Chrysler Group LLC/CG Co-Issuer, Inc. 8% 6/15/19 |
|
$ 8,460,000 |
$ 9,189,675 |
|
|
Dana Holding Corp.: |
|
|
|
|
|
6% 9/15/23 |
|
1,085,000 |
1,150,100 |
|
|
6.75% 2/15/21 |
|
1,710,000 |
1,844,663 |
|
|
General Motors Co. 3.5% 10/2/18 (d) |
|
2,455,000 |
2,510,238 |
|
|
General Motors Financial Co., Inc.: |
|
|
|
|
|
3.25% 5/15/18 |
|
2,670,000 |
2,710,050 |
|
|
4.75% 8/15/17 |
|
2,270,000 |
2,414,713 |
|
|
Schaeffler Finance BV 4.25% 5/15/21 (d) |
|
2,350,000 |
2,354,113 |
|
|
Schaeffler Holding Finance BV 6.875% 8/15/18 pay-in-kind (d)(g) |
|
4,625,000 |
4,873,594 |
|
|
|
35,154,396 |
|||
|
Banks & Thrifts - 0.9% |
||||
|
Ally Financial, Inc. 4.75% 9/10/18 |
|
2,050,000 |
2,175,563 |
|
|
GMAC LLC 8% 12/31/18 |
|
2,465,000 |
2,927,188 |
|
|
Ocwen Financial Corp. 6.625% 5/15/19 (d) |
|
3,325,000 |
3,433,063 |
|
|
Royal Bank of Scotland Group PLC: |
|
|
|
|
|
5.125% 5/28/24 |
|
3,865,000 |
3,922,337 |
|
|
6% 12/19/23 |
|
385,000 |
416,046 |
|
|
Synovus Financial Corp.: |
|
|
|
|
|
5.125% 6/15/17 |
|
395,000 |
411,788 |
|
|
7.875% 2/15/19 |
|
628,000 |
719,060 |
|
|
|
14,005,045 |
|||
|
Broadcasting - 1.7% |
||||
|
Clear Channel Communications, Inc.: |
|
|
|
|
|
5.5% 12/15/16 |
|
14,830,000 |
14,607,550 |
|
|
9% 12/15/19 |
|
2,255,000 |
2,404,394 |
|
|
10% 1/15/18 (d) |
|
5,510,000 |
5,324,038 |
|
|
Starz LLC/Starz Finance Corp. 5% 9/15/19 |
|
4,990,000 |
5,195,838 |
|
|
|
27,531,820 |
|||
|
Building Materials - 2.0% |
||||
|
Building Materials Corp. of America: |
|
|
|
|
|
6.75% 5/1/21 (d) |
|
3,680,000 |
3,965,200 |
|
|
6.875% 8/15/18 (d) |
|
4,490,000 |
4,656,130 |
|
|
Building Materials Holding Corp. 9% 9/15/18 (d) |
|
4,410,000 |
4,751,775 |
|
|
CEMEX Finance LLC 6% 4/1/24 (d) |
|
2,170,000 |
2,259,513 |
|
|
CEMEX S.A.B. de CV 6.5% 12/10/19 (d) |
|
1,365,000 |
1,462,256 |
|
|
HD Supply, Inc. 7.5% 7/15/20 |
|
7,655,000 |
8,363,088 |
|
|
Headwaters, Inc.: |
|
|
|
|
|
7.25% 1/15/19 (d) |
|
905,000 |
957,038 |
|
|
7.625% 4/1/19 |
|
2,525,000 |
2,695,438 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Building Materials - continued |
||||
|
Masco Corp. 5.95% 3/15/22 |
|
$ 1,815,000 |
$ 2,005,575 |
|
|
U.S. Concrete, Inc. 8.5% 12/1/18 (d) |
|
1,160,000 |
1,255,700 |
|
|
|
32,371,713 |
|||
|
Cable TV - 2.4% |
||||
|
Altice S.A. 7.75% 5/15/22 (d) |
|
4,515,000 |
4,819,763 |
|
|
Cablevision Systems Corp. 7.75% 4/15/18 |
|
740,000 |
836,200 |
|
|
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (d) |
|
3,395,000 |
3,607,188 |
|
|
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125% 12/15/21 (d) |
|
4,290,000 |
4,273,913 |
|
|
Cogeco Cable, Inc. 4.875% 5/1/20 (d) |
|
710,000 |
718,875 |
|
|
DISH DBS Corp. 4.25% 4/1/18 |
|
1,705,000 |
1,773,200 |
|
|
Harron Communications LP/Harron Finance Corp. 9.125% 4/1/20 (d) |
|
1,095,000 |
1,220,925 |
|
|
Numericable Group SA: |
|
|
|
|
|
4.875% 5/15/19 (d) |
|
2,630,000 |
2,699,038 |
|
|
6% 5/15/22 (d) |
|
4,540,000 |
4,721,600 |
|
|
6.25% 5/15/24 (d) |
|
895,000 |
934,156 |
|
|
RCN Telecom Services LLC/RCN Capital Corp. 8.5% 8/15/20 (d) |
|
2,615,000 |
2,798,050 |
|
|
Wave Holdco LLC / Wave Holdco Corp. 8.25% 7/15/19 pay-in-kind (d)(g) |
|
375,000 |
384,844 |
|
|
WaveDivision Escrow LLC/WaveDivision Escrow Corp. 8.125% 9/1/20 (d) |
|
7,920,000 |
8,553,600 |
|
|
|
37,341,352 |
|||
|
Capital Goods - 0.3% |
||||
|
Belden, Inc. 5.25% 7/15/24 (d) |
|
400,000 |
403,000 |
|
|
J.B. Poindexter & Co., Inc. 9% 4/1/22 (d) |
|
3,830,000 |
4,260,875 |
|
|
|
4,663,875 |
|||
|
Chemicals - 2.2% |
||||
|
Kinove German Bondco GmbH 9.625% 6/15/18 (d) |
|
4,374,000 |
4,712,985 |
|
|
LSB Industries, Inc. 7.75% 8/1/19 |
|
1,785,000 |
1,909,950 |
|
|
Nufarm Australia Ltd. 6.375% 10/15/19 (d) |
|
3,140,000 |
3,285,225 |
|
|
Rockwood Specialties Group, Inc. 4.625% 10/15/20 |
|
2,850,000 |
2,956,875 |
|
|
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 8.75% 2/1/19 |
|
14,895,000 |
16,049,363 |
|
|
Tronox Finance LLC 6.375% 8/15/20 |
|
4,935,000 |
5,095,388 |
|
|
|
34,009,786 |
|||
|
|
||||
|
|
Principal |
Value |
||
|
Consumer Products - 0.3% |
||||
|
First Quality Finance Co., Inc. 4.625% 5/15/21 (d) |
|
$ 5,415,000 |
$ 5,117,175 |
|
|
Containers - 3.1% |
||||
|
ARD Finance SA 11.125% 6/1/18 pay-in-kind (d)(g) |
|
3,230,212 |
3,419,179 |
|
|
Ardagh Finance Holdings SA 8.625% 6/15/19 pay-in-kind (d) |
|
1,080,000 |
1,108,519 |
|
|
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: |
|
|
|
|
|
3.2132% 12/15/19 (d)(f)(g) |
|
3,830,000 |
3,820,425 |
|
|
6% 6/30/21 (d)(f) |
|
655,000 |
655,393 |
|
|
6.25% 1/31/19 (d) |
|
910,000 |
932,750 |
|
|
6.75% 1/31/21 (d) |
|
1,055,000 |
1,089,288 |
|
|
7% 11/15/20 (d) |
|
874,412 |
905,016 |
|
|
Beverage Packaging Holdings II SA (Luxembourg) 6% 6/15/17 (d) |
|
2,525,000 |
2,588,125 |
|
|
BOE Intermediate Holding Corp. 9.75% 11/1/17 pay-in-kind (d)(g) |
|
2,242,276 |
2,315,150 |
|
|
Crown Americas LLC/Crown Americas Capital Corp. IV 4.5% 1/15/23 |
|
8,240,000 |
8,025,760 |
|
|
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: |
|
|
|
|
|
5.75% 10/15/20 |
|
10,330,000 |
10,898,150 |
|
|
8.5% 5/15/18 (c) |
|
6,290,000 |
6,580,913 |
|
|
9.875% 8/15/19 |
|
5,310,000 |
5,880,825 |
|
|
|
48,219,493 |
|||
|
Diversified Financial Services - 6.9% |
||||
|
AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust: |
|
|
|
|
|
3.75% 5/15/19 (d) |
|
3,220,000 |
3,244,150 |
|
|
4.5% 5/15/21 (d) |
|
3,105,000 |
3,159,338 |
|
|
Aircastle Ltd.: |
|
|
|
|
|
4.625% 12/15/18 |
|
1,245,000 |
1,282,350 |
|
|
5.125% 3/15/21 |
|
2,800,000 |
2,898,000 |
|
|
6.25% 12/1/19 |
|
1,740,000 |
1,905,300 |
|
|
6.75% 4/15/17 |
|
1,735,000 |
1,925,850 |
|
|
CIT Group, Inc.: |
|
|
|
|
|
3.875% 2/19/19 |
|
2,525,000 |
2,532,323 |
|
|
5.25% 3/15/18 |
|
1,790,000 |
1,922,013 |
|
|
5.5% 2/15/19 (d) |
|
2,850,000 |
3,088,688 |
|
|
CNH Industrial Capital LLC 3.375% 7/15/19 (d) |
|
4,005,000 |
3,974,963 |
|
|
Cogent Communications Finance, Inc. 5.625% 4/15/21 (d) |
|
1,125,000 |
1,116,563 |
|
|
FLY Leasing Ltd. 6.75% 12/15/20 |
|
4,590,000 |
4,888,350 |
|
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: |
|
|
|
|
|
3.5% 3/15/17 |
|
685,000 |
692,706 |
|
|
4.875% 3/15/19 |
|
7,080,000 |
7,292,400 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Diversified Financial Services - continued |
||||
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: - continued |
|
|
|
|
|
5.875% 2/1/22 |
|
$ 9,400,000 |
$ 9,846,500 |
|
|
6% 8/1/20 |
|
8,415,000 |
9,014,569 |
|
|
ILFC E-Capital Trust I 5.21% 12/21/65 (d)(g) |
|
6,955,000 |
6,789,819 |
|
|
ILFC E-Capital Trust II 6.25% 12/21/65 (d)(g) |
|
5,260,000 |
5,283,144 |
|
|
International Lease Finance Corp.: |
|
|
|
|
|
4.625% 4/15/21 |
|
2,020,000 |
2,085,650 |
|
|
5.875% 4/1/19 |
|
5,485,000 |
6,033,500 |
|
|
5.875% 8/15/22 |
|
3,480,000 |
3,801,900 |
|
|
SLM Corp.: |
|
|
|
|
|
4.875% 6/17/19 |
|
3,775,000 |
3,890,515 |
|
|
5.5% 1/15/19 |
|
12,695,000 |
13,380,530 |
|
|
5.5% 1/25/23 |
|
4,900,000 |
4,857,125 |
|
|
8% 3/25/20 |
|
1,565,000 |
1,809,531 |
|
|
8.45% 6/15/18 |
|
1,560,000 |
1,846,650 |
|
|
|
108,562,427 |
|||
|
Diversified Media - 1.4% |
||||
|
Clear Channel Worldwide Holdings, Inc.: |
|
|
|
|
|
6.5% 11/15/22 |
|
2,715,000 |
2,898,263 |
|
|
6.5% 11/15/22 |
|
4,990,000 |
5,376,725 |
|
|
MDC Partners, Inc. 6.75% 4/1/20 (d) |
|
4,630,000 |
4,884,650 |
|
|
Nielsen Finance LLC/Nielsen Finance Co.: |
|
|
|
|
|
4.5% 10/1/20 |
|
4,525,000 |
4,558,938 |
|
|
5% 4/15/22 (d)(f) |
|
910,000 |
916,825 |
|
|
The Nielsen Co. S.a.r.l. (Luxembourg) 5.5% 10/1/21 (d) |
|
3,610,000 |
3,727,325 |
|
|
|
22,362,726 |
|||
|
Electric Utilities - 3.2% |
||||
|
Atlantic Power Corp. 9% 11/15/18 |
|
8,740,000 |
9,155,150 |
|
|
Global Partners LP / GLP Finance Corp. 6.25% 7/15/22 (d) |
|
400,000 |
400,000 |
|
|
NRG Energy, Inc.: |
|
|
|
|
|
6.25% 7/15/22 (d) |
|
3,810,000 |
4,057,650 |
|
|
6.25% 5/1/24 (d) |
|
4,745,000 |
4,958,525 |
|
|
7.625% 1/15/18 |
|
2,660,000 |
3,052,350 |
|
|
NSG Holdings II, LLC 7.75% 12/15/25 (d) |
|
13,550,000 |
14,634,000 |
|
|
The AES Corp.: |
|
|
|
|
|
4.875% 5/15/23 |
|
3,475,000 |
3,440,250 |
|
|
7.375% 7/1/21 |
|
9,660,000 |
11,302,200 |
|
|
|
51,000,125 |
|||
|
|
||||
|
|
Principal |
Value |
||
|
Energy - 10.8% |
||||
|
Access Midstream Partners LP/ACMP Finance Corp.: |
|
|
|
|
|
4.875% 5/15/23 |
|
$ 4,265,000 |
$ 4,494,244 |
|
|
4.875% 3/15/24 |
|
1,005,000 |
1,061,531 |
|
|
Approach Resources, Inc. 7% 6/15/21 |
|
1,535,000 |
1,600,238 |
|
|
Basic Energy Services, Inc. 7.75% 2/15/19 |
|
615,000 |
651,900 |
|
|
Chesapeake Energy Corp.: |
|
|
|
|
|
4.875% 4/15/22 |
|
2,615,000 |
2,706,525 |
|
|
6.125% 2/15/21 |
|
4,515,000 |
5,056,800 |
|
|
Chesapeake Midstream Partners LP/CHKM Finance Corp.: |
|
|
|
|
|
5.875% 4/15/21 |
|
615,000 |
658,050 |
|
|
6.125% 7/15/22 |
|
1,745,000 |
1,928,225 |
|
|
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: |
|
|
|
|
|
6.125% 3/1/22 (d) |
|
1,175,000 |
1,236,688 |
|
|
7.75% 4/1/19 |
|
2,315,000 |
2,482,838 |
|
|
CVR Refining LLC/Coffeyville Finance, Inc. 6.5% 11/1/22 |
|
5,140,000 |
5,422,700 |
|
|
Denbury Resources, Inc. 6.375% 8/15/21 |
|
2,550,000 |
2,734,875 |
|
|
Endeavor Energy Resources LP/EER Finance, Inc. 7% 8/15/21 (d) |
|
10,435,000 |
11,139,363 |
|
|
Energy Partners Ltd. 8.25% 2/15/18 |
|
4,350,000 |
4,654,500 |
|
|
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 9/1/22 |
|
4,015,000 |
4,526,913 |
|
|
Everest Acquisition LLC/Everest Acquisition Finance, Inc.: |
|
|
|
|
|
6.875% 5/1/19 |
|
995,000 |
1,058,431 |
|
|
9.375% 5/1/20 |
|
8,685,000 |
9,944,325 |
|
|
Expro Finance Luxembourg SCA 8.5% 12/15/16 (d) |
|
3,312,000 |
3,461,040 |
|
|
Exterran Holdings, Inc. 7.25% 12/1/18 |
|
6,220,000 |
6,562,100 |
|
|
Exterran Partners LP/EXLP Finance Corp.: |
|
|
|
|
|
6% 4/1/21 |
|
6,300,000 |
6,363,000 |
|
|
6% 10/1/22 (d) |
|
1,770,000 |
1,796,550 |
|
|
Forbes Energy Services Ltd. 9% 6/15/19 |
|
5,725,000 |
5,939,688 |
|
|
Gibson Energy, Inc. 6.75% 7/15/21 (d) |
|
3,635,000 |
3,934,888 |
|
|
Hilcorp Energy I LP/Hilcorp Finance Co. 5% 12/1/24 (d)(f) |
|
1,675,000 |
1,675,000 |
|
|
Hornbeck Offshore Services, Inc.: |
|
|
|
|
|
5% 3/1/21 |
|
1,880,000 |
1,875,300 |
|
|
5.875% 4/1/20 |
|
1,240,000 |
1,283,400 |
|
|
Kinder Morgan Holding Co. LLC 5.625% 11/15/23 (d) |
|
1,270,000 |
1,304,925 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Energy - continued |
||||
|
NGL Energy Partners LP / NGL Energy Finance Corp. 5.125% 7/15/19 (d)(f) |
|
$ 1,325,000 |
$ 1,328,313 |
|
|
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.125% 11/15/20 |
|
6,070,000 |
6,578,363 |
|
|
Offshore Group Investment Ltd.: |
|
|
|
|
|
7.125% 4/1/23 |
|
1,890,000 |
1,918,350 |
|
|
7.5% 11/1/19 |
|
9,295,000 |
9,829,463 |
|
|
Parsley Energy LLC/ Parsley 7.5% 2/15/22 (d) |
|
5,550,000 |
5,924,625 |
|
|
Rice Energy, Inc. 6.25% 5/1/22 (d) |
|
7,825,000 |
8,020,625 |
|
|
Rosetta Resources, Inc.: |
|
|
|
|
|
5.625% 5/1/21 |
|
3,715,000 |
3,821,806 |
|
|
5.875% 6/1/24 |
|
940,000 |
977,600 |
|
|
Samson Investment Co. 10.75% 2/15/20 (d) |
|
3,580,000 |
3,772,425 |
|
|
SemGroup Corp. 7.5% 6/15/21 |
|
2,775,000 |
3,038,625 |
|
|
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: |
|
|
|
|
|
4.25% 11/15/23 |
|
2,445,000 |
2,429,719 |
|
|
5.25% 5/1/23 |
|
4,876,000 |
5,095,420 |
|
|
6.375% 8/1/22 |
|
592,000 |
643,800 |
|
|
6.875% 2/1/21 |
|
2,840,000 |
3,074,300 |
|
|
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 6.125% 10/15/21 |
|
855,000 |
912,713 |
|
|
Western Refining, Inc. 6.25% 4/1/21 |
|
7,485,000 |
7,821,825 |
|
|
Whiting Petroleum Corp.: |
|
|
|
|
|
5% 3/15/19 |
|
4,610,000 |
4,852,025 |
|
|
5.75% 3/15/21 |
|
4,815,000 |
5,272,425 |
|
|
|
170,866,459 |
|||
|
Entertainment/Film - 0.2% |
||||
|
NAI Entertainment Holdings LLC/NAI Entertainment Finance Corp. 5% 8/1/18 (d) |
|
2,970,000 |
3,073,950 |
|
|
Environmental - 0.8% |
||||
|
ADS Waste Holdings, Inc. 8.25% 10/1/20 |
|
5,875,000 |
6,330,313 |
|
|
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (d) |
|
6,065,000 |
6,398,575 |
|
|
|
12,728,888 |
|||
|
Food & Drug Retail - 1.1% |
||||
|
JBS Investments GmbH: |
|
|
|
|
|
7.25% 4/3/24 (d) |
|
1,815,000 |
1,887,600 |
|
|
7.75% 10/28/20 (d) |
|
3,740,000 |
4,001,800 |
|
|
Minerva Luxmbourg SA 7.75% 1/31/23 (d) |
|
2,430,000 |
2,600,100 |
|
|
SUPERVALU, Inc. 6.75% 6/1/21 |
|
8,560,000 |
8,816,800 |
|
|
|
17,306,300 |
|||
|
|
||||
|
|
Principal |
Value |
||
|
Food/Beverage/Tobacco - 2.0% |
||||
|
DS Waters of America, Inc. 10% 9/1/21 (d) |
|
$ 1,485,000 |
$ 1,659,488 |
|
|
ESAL GmbH 6.25% 2/5/23 (d) |
|
11,480,000 |
11,307,800 |
|
|
FAGE Dairy Industry SA/FAGE U.S.A. Dairy Industry, Inc. 9.875% 2/1/20 (d) |
|
4,705,000 |
5,034,350 |
|
|
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: |
|
|
|
|
|
5.875% 7/15/24 (d) |
|
1,825,000 |
1,820,438 |
|
|
7.25% 6/1/21 (d) |
|
2,930,000 |
3,142,425 |
|
|
8.25% 2/1/20 (d) |
|
6,670,000 |
7,236,950 |
|
|
Post Holdings, Inc. 6% 12/15/22 (d) |
|
905,000 |
923,100 |
|
|
|
31,124,551 |
|||
|
Gaming - 2.6% |
||||
|
Caesars Growth Propeties Holdings LLC/Caesars Growth Properties Finance, Inc. 9.375% 5/1/22 (d) |
|
2,845,000 |
2,887,675 |
|
|
GLP Capital LP/GLP Financing II, Inc.: |
|
|
|
|
|
4.375% 11/1/18 (d) |
|
1,735,000 |
1,791,388 |
|
|
5.375% 11/1/23 (d) |
|
1,310,000 |
1,359,125 |
|
|
Golden Nugget Escrow, Inc. 8.5% 12/1/21 (d) |
|
9,965,000 |
10,463,250 |
|
|
MCE Finance Ltd. 5% 2/15/21 (d) |
|
6,645,000 |
6,711,450 |
|
|
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc.: |
|
|
|
|
|
8% 10/1/20 (d) |
|
3,150,000 |
3,291,750 |
|
|
11% 10/1/21 (d) |
|
3,140,000 |
3,375,500 |
|
|
Scientific Games Corp. 6.625% 5/15/21 (d) |
|
7,235,000 |
7,162,650 |
|
|
Seminole Hard Rock Entertainment, Inc. 5.875% 5/15/21 (d) |
|
1,490,000 |
1,493,725 |
|
|
Wynn Macau Ltd. 5.25% 10/15/21 (d) |
|
1,970,000 |
2,024,175 |
|
|
|
40,560,688 |
|||
|
Healthcare - 5.3% |
||||
|
Community Health Systems, Inc.: |
|
|
|
|
|
5.125% 8/15/18 |
|
3,535,000 |
3,707,331 |
|
|
5.125% 8/1/21 (d) |
|
1,125,000 |
1,153,125 |
|
|
6.875% 2/1/22 (d) |
|
5,405,000 |
5,729,300 |
|
|
8% 11/15/19 |
|
8,020,000 |
8,781,900 |
|
|
DJO Finance LLC/DJO Finance Corp.: |
|
|
|
|
|
7.75% 4/15/18 |
|
1,350,000 |
1,417,500 |
|
|
8.75% 3/15/18 |
|
165,000 |
177,375 |
|
|
9.875% 4/15/18 |
|
2,425,000 |
2,619,000 |
|
|
Fresenius Medical Care U.S. Finance II, Inc. 5.625% 7/31/19 (d) |
|
2,960,000 |
3,226,400 |
|
|
Grifols Worldwide Operations Ltd. 5.25% 4/1/22 (d) |
|
2,245,000 |
2,329,188 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Healthcare - continued |
||||
|
HCA Holdings, Inc.: |
|
|
|
|
|
3.75% 3/15/19 |
|
$ 3,820,000 |
$ 3,853,425 |
|
|
5% 3/15/24 |
|
2,360,000 |
2,392,615 |
|
|
8% 10/1/18 |
|
4,350,000 |
5,143,875 |
|
|
HealthSouth Corp. 7.25% 10/1/18 |
|
3,588,000 |
3,749,460 |
|
|
MPH Acquisition Holdings LLC 6.625% 4/1/22 (d) |
|
800,000 |
838,000 |
|
|
MPT Operating Partnership LP/MPT Finance Corp. 6.875% 5/1/21 |
|
2,595,000 |
2,828,550 |
|
|
Sabra Health Care LP/Sabra Capital Corp. 5.5% 2/1/21 |
|
4,565,000 |
4,793,250 |
|
|
Tenet Healthcare Corp.: |
|
|
|
|
|
5% 3/1/19 (d) |
|
2,265,000 |
2,296,144 |
|
|
6% 10/1/20 |
|
5,420,000 |
5,880,700 |
|
|
6.25% 11/1/18 |
|
1,435,000 |
1,592,850 |
|
|
8.125% 4/1/22 |
|
12,170,000 |
14,086,775 |
|
|
Valeant Pharmaceuticals International: |
|
|
|
|
|
6.75% 8/15/18 (d) |
|
4,195,000 |
4,520,113 |
|
|
6.875% 12/1/18 (d) |
|
2,315,000 |
2,422,069 |
|
|
|
83,538,945 |
|||
|
Homebuilders/Real Estate - 3.2% |
||||
|
CBRE Group, Inc. 6.625% 10/15/20 |
|
945,000 |
1,002,881 |
|
|
D.R. Horton, Inc.: |
|
|
|
|
|
3.625% 2/15/18 |
|
3,605,000 |
3,690,619 |
|
|
3.75% 3/1/19 |
|
2,530,000 |
2,542,650 |
|
|
4.375% 9/15/22 |
|
1,675,000 |
1,660,344 |
|
|
Howard Hughes Corp. 6.875% 10/1/21 (d) |
|
2,870,000 |
3,070,900 |
|
|
KB Home 4.75% 5/15/19 |
|
3,190,000 |
3,213,925 |
|
|
Lennar Corp.: |
|
|
|
|
|
4.125% 12/1/18 |
|
3,605,000 |
3,681,606 |
|
|
4.5% 6/15/19 |
|
3,290,000 |
3,368,138 |
|
|
Realogy Group LLC/Realogy Co.-Issuer Corp. 4.5% 4/15/19 (d) |
|
1,960,000 |
1,955,100 |
|
|
Standard Pacific Corp. 8.375% 5/15/18 |
|
13,040,000 |
15,387,200 |
|
|
Toll Brothers Finance Corp.: |
|
|
|
|
|
4% 12/31/18 |
|
3,350,000 |
3,450,500 |
|
|
4.375% 4/15/23 |
|
5,520,000 |
5,423,400 |
|
|
Weyerhaeuser Real Estate Co.: |
|
|
|
|
|
4.375% 6/15/19 (d) |
|
990,000 |
992,475 |
|
|
5.875% 6/15/24 (d) |
|
725,000 |
745,844 |
|
|
William Lyon Homes, Inc. 5.75% 4/15/19 (d) |
|
640,000 |
656,000 |
|
|
|
50,841,582 |
|||
|
Hotels - 0.2% |
||||
|
Playa Resorts Holding BV 8% 8/15/20 (d) |
|
3,665,000 |
3,949,038 |
|
|
|
||||
|
|
Principal |
Value |
||
|
Leisure - 0.9% |
||||
|
24 Hour Holdings III LLC 8% 6/1/22 (d) |
|
$ 680,000 |
$ 676,600 |
|
|
NCL Corp. Ltd. 5% 2/15/18 |
|
5,690,000 |
5,874,925 |
|
|
Royal Caribbean Cruises Ltd.: |
|
|
|
|
|
5.25% 11/15/22 |
|
6,045,000 |
6,347,250 |
|
|
7.5% 10/15/27 |
|
595,000 |
682,346 |
|
|
|
13,581,121 |
|||
|
Metals/Mining - 2.1% |
||||
|
CONSOL Energy, Inc. 5.875% 4/15/22 (d) |
|
5,200,000 |
5,447,000 |
|
|
Imperial Metals Corp. 7% 3/15/19 (d) |
|
320,000 |
327,673 |
|
|
Murray Energy Corp.: |
|
|
|
|
|
8.625% 6/15/21 (d) |
|
3,870,000 |
4,189,275 |
|
|
9.5% 12/5/20 (d) |
|
3,380,000 |
3,777,150 |
|
|
New Gold, Inc. 6.25% 11/15/22 (d) |
|
7,295,000 |
7,586,800 |
|
|
Peabody Energy Corp.: |
|
|
|
|
|
6.25% 11/15/21 |
|
2,530,000 |
2,520,513 |
|
|
7.875% 11/1/26 |
|
1,268,000 |
1,333,492 |
|
|
Rain CII Carbon LLC/CII Carbon Corp. 8.25% 1/15/21 (d) |
|
2,925,000 |
3,071,250 |
|
|
Signode Industrial Group Lux SA/Signode Industrial Group U.S., Inc. 6.375% 5/1/22 (d) |
|
2,845,000 |
2,880,563 |
|
|
Walter Energy, Inc. 11% 4/1/20 pay-in-kind (d)(g) |
|
1,610,000 |
1,344,350 |
|
|
|
32,478,066 |
|||
|
Paper - 0.3% |
||||
|
Sappi Papier Holding GmbH 7.75% 7/15/17 (d) |
|
4,920,000 |
5,473,500 |
|
|
Publishing/Printing - 1.1% |
||||
|
Cenveo Corp. 6% 8/1/19 (d) |
|
965,000 |
965,000 |
|
|
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 9.75% 4/1/21 |
|
8,095,000 |
9,289,013 |
|
|
R.R. Donnelley & Sons Co.: |
|
|
|
|
|
6.5% 11/15/23 |
|
2,220,000 |
2,319,900 |
|
|
7% 2/15/22 |
|
1,100,000 |
1,212,750 |
|
|
7.25% 5/15/18 |
|
1,473,000 |
1,704,998 |
|
|
Time, Inc. 5.75% 4/15/22 (d) |
|
1,145,000 |
1,156,450 |
|
|
|
16,648,111 |
|||
|
Restaurants - 0.3% |
||||
|
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc. 10.5% 1/15/20 |
|
4,035,000 |
4,549,463 |
|
|
Services - 4.4% |
||||
|
APX Group, Inc.: |
|
|
|
|
|
6.375% 12/1/19 |
|
12,190,000 |
12,647,125 |
|
|
8.75% 12/1/20 |
|
9,955,000 |
10,104,325 |
|
|
8.75% 12/1/20 (d) |
|
2,375,000 |
2,410,625 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Services - continued |
||||
|
Audatex North America, Inc. 6% 6/15/21 (d) |
|
$ 5,355,000 |
$ 5,716,463 |
|
|
Bankrate, Inc. 6.125% 8/15/18 (d) |
|
2,580,000 |
2,738,025 |
|
|
Blueline Rent Finance Corp./Volvo 7% 2/1/19 (d) |
|
2,370,000 |
2,529,975 |
|
|
Brand Energy & Infrastructure Services, Inc. 8.5% 12/1/21 (d) |
|
4,640,000 |
4,953,200 |
|
|
FTI Consulting, Inc. 6.75% 10/1/20 |
|
3,715,000 |
3,965,763 |
|
|
Garda World Security Corp.: |
|
|
|
|
|
7.25% 11/15/21 (d) |
|
2,200,000 |
2,312,750 |
|
|
7.25% 11/15/21 (d) |
|
715,000 |
751,644 |
|
|
Hertz Corp.: |
|
|
|
|
|
4.25% 4/1/18 |
|
3,145,000 |
3,223,625 |
|
|
6.25% 10/15/22 |
|
5,315,000 |
5,627,256 |
|
|
The Geo Group, Inc. 5.875% 1/15/22 |
|
7,310,000 |
7,675,500 |
|
|
TransUnion Holding Co., Inc. 8.125% 6/15/18 pay-in-kind (g) |
|
4,340,000 |
4,530,960 |
|
|
|
69,187,236 |
|||
|
Shipping - 1.3% |
||||
|
Aguila 3 SA 7.875% 1/31/18 (d) |
|
4,595,000 |
4,847,725 |
|
|
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (d) |
|
4,055,000 |
4,237,475 |
|
|
Navios Maritime Holdings, Inc.: |
|
|
|
|
|
7.375% 1/15/22 (d) |
|
7,410,000 |
7,632,300 |
|
|
8.125% 2/15/19 |
|
1,465,000 |
1,540,081 |
|
|
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 7.25% 5/1/22 (d) |
|
1,575,000 |
1,638,000 |
|
|
|
19,895,581 |
|||
|
Steel - 1.6% |
||||
|
JMC Steel Group, Inc. 8.25% 3/15/18 (d) |
|
8,990,000 |
9,169,800 |
|
|
Ryerson, Inc./Joseph T Ryerson & Son, Inc.: |
|
|
|
|
|
9% 10/15/17 |
|
1,635,000 |
1,749,450 |
|
|
11.25% 10/15/18 |
|
5,515,000 |
6,149,225 |
|
|
Steel Dynamics, Inc. 6.125% 8/15/19 |
|
7,280,000 |
7,917,000 |
|
|
|
24,985,475 |
|||
|
Super Retail - 0.5% |
||||
|
Best Buy Co., Inc. 5% 8/1/18 |
|
5,280,000 |
5,544,000 |
|
|
JC Penney Corp., Inc. 7.4% 4/1/37 |
|
3,230,000 |
2,802,309 |
|
|
|
8,346,309 |
|||
|
Technology - 5.9% |
||||
|
Activision Blizzard, Inc. 5.625% 9/15/21 (d) |
|
2,440,000 |
2,629,100 |
|
|
|
||||
|
|
Principal |
Value |
||
|
ADT Corp.: |
|
|
|
|
|
4.125% 4/15/19 |
|
$ 3,790,000 |
$ 3,790,758 |
|
|
4.125% 6/15/23 |
|
1,305,000 |
1,203,863 |
|
|
6.25% 10/15/21 |
|
3,545,000 |
3,757,700 |
|
|
Advanced Micro Devices, Inc.: |
|
|
|
|
|
6.75% 3/1/19 (d) |
|
3,385,000 |
3,596,563 |
|
|
7% 7/1/24 (d) |
|
1,720,000 |
1,756,550 |
|
|
AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust 2.75% 5/15/17 (d) |
|
3,500,000 |
3,521,875 |
|
|
BMC Software Finance, Inc. 8.125% 7/15/21 (d) |
|
6,115,000 |
6,290,806 |
|
|
Boxer Parent Co., Inc. 9% 10/15/19 pay-in-kind (d)(g) |
|
2,505,000 |
2,442,375 |
|
|
Brocade Communications Systems, Inc. 4.625% 1/15/23 |
|
3,400,000 |
3,298,000 |
|
|
Compiler Finance Sub, Inc. 7% 5/1/21 (d) |
|
1,615,000 |
1,639,225 |
|
|
Infor Software Parent LLC/Infor Software Parent, Inc. 7.125% 5/1/21 pay-in-kind (d)(g) |
|
735,000 |
751,538 |
|
|
Lucent Technologies, Inc.: |
|
|
|
|
|
6.45% 3/15/29 |
|
7,815,000 |
7,736,850 |
|
|
6.5% 1/15/28 |
|
3,265,000 |
3,232,350 |
|
|
Micron Technology, Inc. 5.875% 2/15/22 (d) |
|
1,190,000 |
1,276,275 |
|
|
Nuance Communications, Inc. 5.375% 8/15/20 (d) |
|
10,783,000 |
11,160,405 |
|
|
NXP BV/NXP Funding LLC 3.75% 6/1/18 (d) |
|
12,835,000 |
12,867,088 |
|
|
Seagate HDD Cayman 4.75% 1/1/25 (d) |
|
2,430,000 |
2,411,775 |
|
|
Sungard Availability Services Capital, Inc. 8.75% 4/1/22 (d) |
|
4,745,000 |
4,412,850 |
|
|
VeriSign, Inc. 4.625% 5/1/23 |
|
3,295,000 |
3,255,131 |
|
|
Viasystems, Inc. 7.875% 5/1/19 (d) |
|
4,410,000 |
4,663,575 |
|
|
WideOpenWest Finance LLC/WideOpenWest Capital Corp.: |
|
|
|
|
|
10.25% 7/15/19 |
|
2,995,000 |
3,365,631 |
|
|
10.25% 7/15/19 (d) |
|
315,000 |
353,981 |
|
|
13.375% 10/15/19 |
|
2,705,000 |
3,131,038 |
|
|
|
92,545,302 |
|||
|
Telecommunications - 8.8% |
||||
|
Alcatel-Lucent U.S.A., Inc.: |
|
|
|
|
|
4.625% 7/1/17 (d) |
|
8,465,000 |
8,740,113 |
|
|
6.75% 11/15/20 (d) |
|
11,270,000 |
12,002,550 |
|
|
8.875% 1/1/20 (d) |
|
6,325,000 |
7,163,063 |
|
|
Altice Financing SA: |
|
|
|
|
|
6.5% 1/15/22 (d) |
|
685,000 |
729,525 |
|
|
7.875% 12/15/19 (d) |
|
4,180,000 |
4,575,010 |
|
|
Altice Finco SA 9.875% 12/15/20 (d) |
|
5,890,000 |
6,788,225 |
|
|
Columbus International, Inc. 7.375% 3/30/21 (d) |
|
5,000,000 |
5,387,500 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Telecommunications - continued |
||||
|
Crown Castle International Corp. 4.875% 4/15/22 |
|
$ 4,740,000 |
$ 4,899,975 |
|
|
Digicel Group Ltd.: |
|
|
|
|
|
6% 4/15/21 (d) |
|
5,265,000 |
5,436,113 |
|
|
7% 2/15/20 (d) |
|
295,000 |
311,225 |
|
|
7.125% 4/1/22 (d) |
|
3,355,000 |
3,497,588 |
|
|
8.25% 9/1/17 (d) |
|
5,395,000 |
5,550,376 |
|
|
8.25% 9/30/20 (d) |
|
5,855,000 |
6,381,950 |
|
|
DigitalGlobe, Inc. 5.25% 2/1/21 |
|
9,505,000 |
9,409,950 |
|
|
FairPoint Communications, Inc. 8.75% 8/15/19 (d) |
|
4,580,000 |
4,934,950 |
|
|
Inmarsat Finance PLC 4.875% 5/15/22 (d) |
|
2,580,000 |
2,605,800 |
|
|
Level 3 Financing, Inc. 3.8229% 1/15/18 (d)(g) |
|
7,525,000 |
7,656,688 |
|
|
MasTec, Inc. 4.875% 3/15/23 |
|
2,875,000 |
2,831,875 |
|
|
SBA Communications Corp. 4.875% 7/15/22 (d)(f) |
|
3,235,000 |
3,194,563 |
|
|
Sprint Capital Corp.: |
|
|
|
|
|
6.875% 11/15/28 |
|
1,155,000 |
1,166,550 |
|
|
8.75% 3/15/32 |
|
3,650,000 |
4,215,750 |
|
|
Sprint Communications, Inc. 9% 11/15/18 (d) |
|
6,240,000 |
7,566,000 |
|
|
T-Mobile U.S.A., Inc.: |
|
|
|
|
|
5.25% 9/1/18 |
|
4,055,000 |
4,257,750 |
|
|
6.464% 4/28/19 |
|
2,610,000 |
2,747,025 |
|
|
TW Telecom Holdings, Inc.: |
|
|
|
|
|
5.375% 10/1/22 |
|
2,815,000 |
3,078,906 |
|
|
6.375% 9/1/23 |
|
1,535,000 |
1,746,063 |
|
|
Wind Acquisition Finance SA: |
|
|
|
|
|
4.75% 7/15/20 (d)(f) |
|
3,835,000 |
3,863,954 |
|
|
7.25% 2/15/18 (d) |
|
2,770,000 |
2,926,505 |
|
|
7.375% 4/23/21 (d) |
|
4,080,000 |
4,355,400 |
|
|
|
138,020,942 |
|||
|
Textiles & Apparel - 0.2% |
||||
|
The William Carter Co. 5.25% 8/15/21 (d) |
|
3,490,000 |
3,638,325 |
|
|
TOTAL NONCONVERTIBLE BONDS (Cost $1,274,868,992) |
|
|||
|
Commercial Mortgage Securities - 0.0% |
||||
|
|
||||
|
LB Multi-family Mortgage Trust Series 1991-4 Class A1, 7.125% 4/25/21 (g) |
|
9,496 |
|
|
|
Common Stocks - 0.0% |
|||
|
Shares |
Value |
||
|
Telecommunications - 0.0% |
|||
|
CUI Acquisition Corp. Class E (a)(d) |
1 |
$ 136,000 |
|
|
Nonconvertible Preferred Stocks - 0.4% |
|||
|
|
|
|
|
|
Banks & Thrifts - 0.4% |
|||
|
Royal Bank of Scotland Group PLC Series S, 6.60% |
236,106 |
|
|
|
Bank Loan Obligations - 11.0% |
||||
|
|
Principal |
|
||
|
Aerospace - 0.1% |
||||
|
TransDigm, Inc. Tranche D, term loan 3.75% 6/4/21 (g) |
|
$ 1,770,000 |
1,763,363 |
|
|
Automotive - 0.2% |
||||
|
Allison Transmission, Inc. Tranche B 3LN, term loan 3.75% 8/23/19 (g) |
|
950,225 |
950,225 |
|
|
Chrysler Group LLC term loan 3.25% 12/31/18 (g) |
|
1,960,088 |
1,964,988 |
|
|
INA Beteiligungsgesellschaft MBH Tranche E, term loan 5/15/20 (h) |
|
750,000 |
752,813 |
|
|
|
3,668,026 |
|||
|
Broadcasting - 0.6% |
||||
|
Clear Channel Communications, Inc. Tranche D, term loan 6.8995% 1/30/19 (g) |
|
9,165,000 |
9,119,175 |
|
|
Univision Communications, Inc. Tranche C 4LN, term loan 4% 3/1/20 (g) |
|
985,050 |
985,050 |
|
|
|
10,104,225 |
|||
|
Building Materials - 0.4% |
||||
|
GYP Holdings III Corp.: |
|
|
|
|
|
Tranche 1LN, term loan 4.75% 4/1/21 (g) |
|
3,120,000 |
3,104,712 |
|
|
Tranche 2LN, term loan 7.75% 4/1/22 (g) |
|
625,000 |
629,688 |
|
|
Nortek, Inc. Tranche B, term loan 3.75% 10/30/20 (g) |
|
2,110,000 |
2,112,638 |
|
|
|
5,847,038 |
|||
|
Cable TV - 0.4% |
||||
|
Charter Communications Operating LLC Tranche F, term loan 3% 1/3/21 (g) |
|
3,860,752 |
3,812,492 |
|
|
Numericable LLC: |
|
|
|
|
|
Tranche B 1LN, term loan 4.5% 5/8/20 (g) |
|
1,340,385 |
1,348,762 |
|
|
Tranche B 2LN, term loan 4.5% 5/8/20 (g) |
|
1,159,615 |
1,166,863 |
|
|
|
6,328,117 |
|||
|
Bank Loan Obligations - continued |
||||
|
|
Principal |
Value |
||
|
Capital Goods - 0.4% |
||||
|
Husky Injection Molding Systems Ltd.: |
|
|
|
|
|
Tranche 1LN, term loan 6/30/21 (h) |
|
$ 4,125,000 |
$ 4,140,469 |
|
|
Tranche 2LN, term loan 6/30/22 (h) |
|
1,585,000 |
1,590,944 |
|
|
|
5,731,413 |
|||
|
Containers - 0.5% |
||||
|
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (g) |
|
1,561,088 |
1,555,233 |
|
|
Signode Packaging Systems, Inc. Tranche B, term loan 4% 5/1/21 (g) |
|
6,380,000 |
6,348,100 |
|
|
|
7,903,333 |
|||
|
Diversified Financial Services - 0.8% |
||||
|
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (g) |
|
2,400,000 |
2,400,000 |
|
|
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (g) |
|
5,650,000 |
5,812,438 |
|
|
TransUnion LLC Tranche B, term loan 4% 4/9/21 (g) |
|
4,124,663 |
4,124,663 |
|
|
|
12,337,101 |
|||
|
Electric Utilities - 0.1% |
||||
|
Bayonne Energy Center, LLC Tranche B, term loan 6/30/21 (h) |
|
590,000 |
594,425 |
|
|
Southwire LLC, Tranche B, term loan 3.2538% 2/10/21 (g) |
|
1,321,688 |
1,318,383 |
|
|
|
1,912,808 |
|||
|
Energy - 0.9% |
||||
|
Energy Transfer Equity LP Tranche B, term loan 3.25% 12/2/19 (g) |
|
3,645,000 |
3,605,379 |
|
|
Fieldwood Energy, LLC: |
|
|
|
|
|
Tranche 2LN, term loan 8.375% 9/30/20 (g) |
|
5,774,951 |
5,962,637 |
|
|
Tranche B 1LN, term loan 3.875% 9/30/18 (g) |
|
591,111 |
592,589 |
|
|
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (g) |
|
4,175,035 |
4,159,379 |
|
|
|
14,319,984 |
|||
|
Food & Drug Retail - 0.1% |
||||
|
SUPERVALU, Inc. Tranche B, term loan 4.5% 3/21/19 (g) |
|
892,260 |
891,145 |
|
|
Gaming - 0.1% |
||||
|
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 6.25% 5/8/21 (g) |
|
600,000 |
598,500 |
|
|
Golden Nugget, Inc. Tranche B, term loan: |
|
|
|
|
|
5.5% 11/21/19 (g) |
|
337,803 |
344,559 |
|
|
|
||||
|
|
Principal |
Value |
||
|
5.5% 11/21/19 (g) |
|
$ 144,773 |
$ 147,668 |
|
|
Las Vegas Sands LLC Tranche B, term loan 3.25% 12/19/20 (g) |
|
1,004,950 |
1,004,950 |
|
|
|
2,095,677 |
|||
|
Healthcare - 1.1% |
||||
|
Endo Luxembourg Finance I Comp Tranche B, term loan 3.25% 2/28/21 (g) |
|
3,725,663 |
3,716,348 |
|
|
Grifols, S.A. Tranche B, term loan 3.1495% 2/27/21 (g) |
|
6,299,213 |
6,299,213 |
|
|
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (g) |
|
2,081,636 |
2,073,830 |
|
|
Pharmedium Healthcare Corp.: |
|
|
|
|
|
Tranche 2LN, term loan 7.75% 1/28/22 (g) |
|
1,885,000 |
1,903,850 |
|
|
Tranche B 1LN, term loan 4.25% 1/28/21 (g) |
|
3,340,538 |
3,353,065 |
|
|
|
17,346,306 |
|||
|
Hotels - 0.1% |
||||
|
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (g) |
|
1,135,048 |
1,135,048 |
|
|
Insurance - 0.3% |
||||
|
StoneRiver Group LP: |
|
|
|
|
|
Tranche 2LN, term loan 8.5% 5/30/20 (g) |
|
4,213,620 |
4,203,086 |
|
|
Tranche B 1LN, term loan 4.5% 11/30/19 (g) |
|
1,248,385 |
1,246,887 |
|
|
|
5,449,973 |
|||
|
Leisure - 0.1% |
||||
|
24 Hour Fitness Worldwide, Inc. Tranche B, term loan 4.75% 5/30/21 (g) |
|
325,000 |
327,844 |
|
|
Equinox Holdings, Inc. Tranche B 1LN, term loan 4.25% 2/1/20 (g) |
|
987,813 |
992,753 |
|
|
|
1,320,597 |
|||
|
Metals/Mining - 0.5% |
||||
|
Fortescue Metals Group Ltd. Tranche B, term loan 3.75% 6/30/19 (g) |
|
2,416,738 |
2,410,696 |
|
|
Peabody Energy Corp. Tranche B, term loan 4.25% 9/24/20 (g) |
|
5,414,088 |
5,454,693 |
|
|
|
7,865,389 |
|||
|
Publishing/Printing - 0.4% |
||||
|
ARC Document Solutions, Inc. Tranche B, term loan 6.25% 12/20/18 (g) |
|
6,876,563 |
6,988,307 |
|
|
Restaurants - 0.5% |
||||
|
Dunkin Brands, Inc. Tranche B 4LN, term loan 3.25% 2/7/21 (g) |
|
7,318,367 |
7,245,183 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal |
Value |
||
|
Restaurants - continued |
||||
|
TGI Friday's, Inc.: |
|
|
|
|
|
Tranche B 1LN, term loan 6/30/20 (h) |
|
$ 590,000 |
$ 590,738 |
|
|
Tranche B 2LN, term loan 6/30/21 (h) |
|
660,000 |
650,100 |
|
|
|
8,486,021 |
|||
|
Services - 1.0% |
||||
|
ARAMARK Corp. Tranche F, term loan 3.25% 2/24/21 (g) |
|
2,518,688 |
2,493,501 |
|
|
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 4.75% 11/26/20 (g) |
|
4,497,400 |
4,519,887 |
|
|
Garda World Security Corp.: |
|
|
|
|
|
term loan 4% 11/8/20 (g) |
|
2,519,561 |
2,519,561 |
|
|
Tranche DD, term loan 4% 11/8/20 (g) |
|
644,539 |
644,539 |
|
|
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (g) |
|
3,635,000 |
3,571,388 |
|
|
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (g) |
|
1,625,925 |
1,617,795 |
|
|
|
15,366,671 |
|||
|
Shipping - 0.1% |
||||
|
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (g) |
|
1,228,825 |
1,228,825 |
|
|
Steel - 0.2% |
||||
|
Atkore International, Inc.: |
|
|
|
|
|
Tranche 2LN, term loan 7.75% 10/9/21 (g) |
|
1,020,000 |
1,030,200 |
|
|
Tranche B 1LN, term loan 4.5% 4/9/21 (g) |
|
1,835,000 |
1,841,881 |
|
|
|
2,872,081 |
|||
|
Super Retail - 0.2% |
||||
|
JC Penney Corp., Inc. Tranche B, term loan: |
|
|
|
|
|
5% 6/20/19 (g) |
|
175,000 |
175,665 |
|
|
6% 5/22/18 (g) |
|
3,092,191 |
3,119,248 |
|
|
|
3,294,913 |
|||
|
Technology - 1.5% |
||||
|
DealerTrack Holdings, Inc. Tranche B LN, term loan 3.5% 2/28/21 (g) |
|
3,620,513 |
3,615,987 |
|
|
Dell International LLC Tranche B, term loan 4.5% 4/29/20 (g) |
|
2,572,075 |
2,581,849 |
|
|
First Data Corp. term loan 4.154% 3/24/18 (g) |
|
6,685,000 |
6,693,356 |
|
|
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (g) |
|
1,559,250 |
1,557,301 |
|
|
Infor U.S., Inc. Tranche B 5LN, term loan 3.75% 6/3/20 (g) |
|
855,700 |
848,255 |
|
|
|
||||
|
|
Principal |
Value |
||
|
NXP BV Tranche D, term loan 3.25% 1/11/20 (g) |
|
$ 3,632,550 |
$ 3,609,847 |
|
|
Sungard Availability Services Capital, Inc. Tranche B, term loan 6% 3/31/19 (g) |
|
4,668,300 |
4,627,452 |
|
|
|
23,534,047 |
|||
|
Telecommunications - 0.4% |
||||
|
Alcatel-Lucent U.S.A., Inc. Tranche C 1LN, term loan 4.5% 1/30/19 (g) |
|
6,460,806 |
6,460,806 |
|
|
TOTAL BANK LOAN OBLIGATIONS (Cost $173,111,967) |
|
|||
|
Preferred Securities - 1.2% |
||||
|
|
||||
|
Banks & Thrifts - 1.2% |
||||
|
Barclays Bank PLC 7.625% 11/21/22 |
|
15,315,000 |
17,612,138 |
|
|
Barclays PLC 8.25% (e)(g) |
|
1,660,000 |
1,765,554 |
|
|
TOTAL PREFERRED SECURITIES (Cost $17,454,194) |
|
|||
|
Money Market Funds - 3.4% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.11% (b) |
53,167,314 |
|
|
|
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $1,525,616,205) |
1,580,900,229 |
||
|
NET OTHER ASSETS (LIABILITIES) - (0.3)% |
(5,141,103) |
||
|
NET ASSETS - 100% |
$ 1,575,759,126 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
|
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $604,624,350 or 38.4% of net assets. |
|
(e) Security is perpetual in nature with no stated maturity date. |
|
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
|
(h) The coupon rate will be determined upon settlement of the loan after period end. |
|
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 |
$ 27,947 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Financials |
$ 5,796,402 |
$ 5,796,402 |
$ - |
$ - |
|
Telecommunication Services |
136,000 |
- |
- |
136,000 |
|
Corporate Bonds |
1,328,164,960 |
- |
1,328,164,960 |
- |
|
Commercial Mortgage Securities |
6,647 |
- |
- |
6,647 |
|
Bank Loan Obligations |
174,251,214 |
- |
174,251,214 |
- |
|
Preferred Securities |
19,377,692 |
- |
19,377,692 |
- |
|
Money Market Funds |
53,167,314 |
53,167,314 |
- |
- |
|
Total Investments in Securities: |
$ 1,580,900,229 |
$ 58,963,716 |
$ 1,521,793,866 |
$ 142,647 |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
78.0% |
|
Luxembourg |
4.5% |
|
Canada |
3.3% |
|
Bermuda |
2.4% |
|
United Kingdom |
2.1% |
|
Netherlands |
2.0% |
|
Cayman Islands |
1.4% |
|
Austria |
1.3% |
|
Marshall Islands |
1.3% |
|
Ireland |
1.2% |
|
Others (Individually Less Than 1%) |
2.5% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,472,448,891) |
$ 1,527,732,915 |
|
|
Fidelity Central Funds (cost $53,167,314) |
53,167,314 |
|
|
Total Investments (cost $1,525,616,205) |
|
$ 1,580,900,229 |
|
Cash |
|
121,752 |
|
Receivable for investments sold |
|
10,549,686 |
|
Receivable for fund shares sold |
|
714,715 |
|
Interest receivable |
|
21,053,415 |
|
Distributions receivable from Fidelity Central Funds |
|
3,818 |
|
Other receivables |
|
137,473 |
|
Total assets |
|
1,613,481,088 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 16,595,012 |
|
|
Delayed delivery |
15,452,817 |
|
|
Payable for fund shares redeemed |
4,672,392 |
|
|
Accrued management fee |
738,656 |
|
|
Distribution and service plan fees payable |
63,211 |
|
|
Other affiliated payables |
150,533 |
|
|
Other payables and accrued expenses |
49,341 |
|
|
Total liabilities |
|
37,721,962 |
|
|
|
|
|
Net Assets |
|
$ 1,575,759,126 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 1,521,529,831 |
|
Undistributed net investment income |
|
41,644,356 |
|
Accumulated undistributed net realized gain (loss) on investments |
|
(42,699,085) |
|
Net unrealized appreciation (depreciation) on investments |
|
55,284,024 |
|
Net Assets |
|
$ 1,575,759,126 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 6.09 |
|
|
|
|
|
Service Class: |
|
$ 6.05 |
|
|
|
|
|
Service Class 2: |
|
$ 5.91 |
|
|
|
|
|
Initial Class R: |
|
$ 6.06 |
|
|
|
|
|
Service Class R: |
|
$ 6.01 |
|
|
|
|
|
Service Class 2R: |
|
$ 5.90 |
|
|
|
|
|
Investor Class: |
|
$ 6.06 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 682,872 |
|
Interest |
|
45,506,318 |
|
Income from Fidelity Central Funds |
|
27,947 |
|
Total income |
|
46,217,137 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 4,399,407 |
|
|
Transfer agent fees |
639,387 |
|
|
Distribution and service plan fees |
404,388 |
|
|
Accounting fees and expenses |
264,343 |
|
|
Custodian fees and expenses |
14,779 |
|
|
Independent trustees' compensation |
3,220 |
|
|
Audit |
46,099 |
|
|
Legal |
11,569 |
|
|
Miscellaneous |
6,716 |
|
|
Total expenses before reductions |
5,789,908 |
|
|
Expense reductions |
(712) |
5,789,196 |
|
Net investment income (loss) |
|
40,427,941 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
|
16,571,647 |
|
Change in net unrealized appreciation (depreciation) on investment securities |
|
16,229,368 |
|
Net gain (loss) |
|
32,801,015 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 73,228,956 |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 40,427,941 |
$ 80,845,745 |
|
Net realized gain (loss) |
16,571,647 |
46,584,559 |
|
Change in net unrealized appreciation (depreciation) |
16,229,368 |
(41,731,572) |
|
Net increase (decrease) in net assets resulting from operations |
73,228,956 |
85,698,732 |
|
Distributions to shareholders from net investment income |
- |
(86,921,876) |
|
Share transactions - net increase (decrease) |
(25,852,412) |
16,318,361 |
|
Redemption fees |
2,696 |
28,583 |
|
Total increase (decrease) in net assets |
47,379,240 |
15,123,800 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
1,528,379,886 |
1,513,256,086 |
|
End of period (including undistributed net investment income of $41,644,356 and undistributed net investment income of $1,216,415, respectively) |
$ 1,575,759,126 |
$ 1,528,379,886 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.80 |
$ 5.81 |
$ 5.39 |
$ 5.57 |
$ 5.29 |
$ 3.96 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss)E |
.155 |
.330 |
.361 |
.391 |
.439 |
.438 |
|
Net realized and unrealized gain (loss) |
.135 |
.014 |
.405 |
(.171) |
.288 |
1.298 |
|
Total from investment operations |
.290 |
.344 |
.766 |
.220 |
.727 |
1.736 |
|
Distributions from net investment income |
- |
(.354) |
(.346) |
(.400) |
(.448) |
(.406) |
|
Redemption fees added to paid in capitalE |
-I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.09 |
$ 5.80 |
$ 5.81 |
$ 5.39 |
$ 5.57 |
$ 5.29 |
|
Total ReturnB, C, D |
5.00% |
5.95% |
14.23% |
4.03% |
13.82% |
43.96% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.68% |
.68% |
.69% |
.69% |
.70% |
|
Expenses net of fee waivers, if any |
.68%A |
.68% |
.68% |
.69% |
.69% |
.70% |
|
Expenses net of all reductions |
.68%A |
.68% |
.68% |
.69% |
.69% |
.70% |
|
Net investment income (loss) |
5.27%A |
5.55% |
6.22% |
6.85% |
7.84% |
9.02% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 593,973 |
$ 587,376 |
$ 606,506 |
$ 561,514 |
$ 594,688 |
$ 608,802 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.77 |
$ 5.78 |
$ 5.36 |
$ 5.54 |
$ 5.26 |
$ 3.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.152 |
.323 |
.353 |
.384 |
.431 |
.429 |
|
Net realized and unrealized gain (loss) |
.128 |
.015 |
.407 |
(.171) |
.290 |
1.281 |
|
Total from investment operations |
.280 |
.338 |
.760 |
.213 |
.721 |
1.710 |
|
Distributions from net investment income |
- |
(.348) |
(.340) |
(.393) |
(.442) |
(.400) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.05 |
$ 5.77 |
$ 5.78 |
$ 5.36 |
$ 5.54 |
$ 5.26 |
|
Total ReturnB, C, D |
4.85% |
5.87% |
14.20% |
3.93% |
13.79% |
43.41% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.78%A |
.78% |
.78% |
.79% |
.79% |
.80% |
|
Expenses net of fee waivers, if any |
.78%A |
.77% |
.78% |
.79% |
.78% |
.80% |
|
Expenses net of all reductions |
.78%A |
.77% |
.78% |
.79% |
.78% |
.80% |
|
Net investment income (loss) |
5.17%A |
5.46% |
6.13% |
6.75% |
7.74% |
8.92% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 67,042 |
$ 68,982 |
$ 77,397 |
$ 91,573 |
$ 98,988 |
$ 103,511 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.64 |
$ 5.66 |
$ 5.26 |
$ 5.45 |
$ 5.18 |
$ 3.89 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.144 |
.307 |
.338 |
.368 |
.417 |
.422 |
|
Net realized and unrealized gain (loss) |
.126 |
.014 |
.396 |
(.170) |
.287 |
1.264 |
|
Total from investment operations |
.270 |
.321 |
.734 |
.198 |
.704 |
1.686 |
|
Distributions from net investment income |
- |
(.341) |
(.334) |
(.388) |
(.435) |
(.396) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 5.91 |
$ 5.64 |
$ 5.66 |
$ 5.26 |
$ 5.45 |
$ 5.18 |
|
Total ReturnB, C, D |
4.79% |
5.70% |
13.97% |
3.72% |
13.67% |
43.46% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.93%A |
.93% |
.93% |
.94% |
.94% |
.95% |
|
Expenses net of fee waivers, if any |
.93%A |
.92% |
.93% |
.94% |
.94% |
.95% |
|
Expenses net of all reductions |
.93%A |
.92% |
.93% |
.94% |
.94% |
.95% |
|
Net investment income (loss) |
5.01%A |
5.31% |
5.98% |
6.60% |
7.59% |
8.77% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 247,599 |
$ 280,444 |
$ 281,065 |
$ 220,333 |
$ 182,465 |
$ 181,377 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.55 |
$ 5.27 |
$ 3.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.155 |
.330 |
.360 |
.391 |
.439 |
.440 |
|
Net realized and unrealized gain (loss) |
.125 |
.014 |
.407 |
(.171) |
.288 |
1.286 |
|
Total from investment operations |
.280 |
.344 |
.767 |
.220 |
.727 |
1.726 |
|
Distributions from net investment income |
- |
(.354) |
(.347) |
(.400) |
(.448) |
(.406) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.06 |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.55 |
$ 5.27 |
|
Total ReturnB, C, D |
4.84% |
5.97% |
14.30% |
4.05% |
13.88% |
43.82% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.68% |
.68% |
.68% |
.69% |
.70% |
|
Expenses net of fee waivers, if any |
.68%A |
.67% |
.68% |
.68% |
.68% |
.70% |
|
Expenses net of all reductions |
.68%A |
.67% |
.68% |
.68% |
.68% |
.69% |
|
Net investment income (loss) |
5.27%A |
5.56% |
6.23% |
6.85% |
7.84% |
9.02% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 30,027 |
$ 29,558 |
$ 35,605 |
$ 31,627 |
$ 34,946 |
$ 34,080 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.74 |
$ 5.75 |
$ 5.34 |
$ 5.52 |
$ 5.25 |
$ 3.94 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss)E |
.151 |
.321 |
.352 |
.383 |
.433 |
.431 |
|
Net realized and unrealized gain (loss) |
.119 |
.018 |
.400 |
(.167) |
.280 |
1.280 |
|
Total from investment operations |
.270 |
.339 |
.752 |
.216 |
.713 |
1.711 |
|
Distributions from net investment income |
- |
(.349) |
(.342) |
(.396) |
(.444) |
(.401) |
|
Redemption fees added to paid in capitalE |
-I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.01 |
$ 5.74 |
$ 5.75 |
$ 5.34 |
$ 5.52 |
$ 5.25 |
|
Total ReturnB, C, D |
4.70% |
5.92% |
14.10% |
3.99% |
13.66% |
43.56% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.78%A |
.78% |
.78% |
.78% |
.79% |
.80% |
|
Expenses net of fee waivers, if any |
.78%A |
.77% |
.78% |
.78% |
.78% |
.80% |
|
Expenses net of all reductions |
.78%A |
.77% |
.78% |
.78% |
.78% |
.80% |
|
Net investment income (loss) |
5.17%A |
5.46% |
6.13% |
6.75% |
7.74% |
8.92% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 59,916 |
$ 58,042 |
$ 69,893 |
$ 63,557 |
$ 68,806 |
$ 47,873 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.64 |
$ 5.65 |
$ 5.26 |
$ 5.45 |
$ 5.17 |
$ 3.89 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.144 |
.307 |
.340 |
.369 |
.415 |
.416 |
|
Net realized and unrealized gain (loss) |
.116 |
.023 |
.390 |
(.175) |
.293 |
1.257 |
|
Total from investment operations |
.260 |
.330 |
.730 |
.194 |
.708 |
1.673 |
|
Distributions from net investment income |
- |
(.340) |
(.340) |
(.384) |
(.429) |
(.393) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 5.90 |
$ 5.64 |
$ 5.65 |
$ 5.26 |
$ 5.45 |
$ 5.17 |
|
Total ReturnB, C, D |
4.61% |
5.87% |
13.90% |
3.64% |
13.79% |
43.13% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.93%A |
.93% |
.93% |
.93% |
.94% |
.95% |
|
Expenses net of fee waivers, if any |
.93%A |
.92% |
.93% |
.93% |
.93% |
.95% |
|
Expenses net of all reductions |
.93%A |
.92% |
.93% |
.93% |
.93% |
.94% |
|
Net investment income (loss) |
5.02%A |
5.31% |
5.98% |
6.60% |
7.59% |
8.77% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 5,473 |
$ 4,348 |
$ 4,019 |
$ 1,350 |
$ 1,543 |
$ 2,016 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.56 |
$ 5.27 |
$ 3.96 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.154 |
.327 |
.358 |
.388 |
.437 |
.441 |
|
Net realized and unrealized gain (loss) |
.126 |
.016 |
.407 |
(.180) |
.298 |
1.274 |
|
Total from investment operations |
.280 |
.343 |
.765 |
.208 |
.735 |
1.715 |
|
Distributions from net investment income |
- |
(.353) |
(.345) |
(.398) |
(.446) |
(.405) |
|
Redemption fees added to paid in capitalE |
- I |
- I |
- I |
- I |
.001 |
- I |
|
Net asset value, end of period |
$ 6.06 |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.56 |
$ 5.27 |
|
Total ReturnB, C, D |
4.84% |
5.95% |
14.26% |
3.82% |
14.04% |
43.43% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.71%A |
.71% |
.71% |
.72% |
.73% |
.73% |
|
Expenses net of fee waivers, if any |
.71%A |
.71% |
.71% |
.72% |
.72% |
.73% |
|
Expenses net of all reductions |
.71%A |
.71% |
.71% |
.72% |
.72% |
.73% |
|
Net investment income (loss) |
5.23%A |
5.52% |
6.20% |
6.82% |
7.81% |
8.99% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 571,728 |
$ 499,630 |
$ 438,772 |
$ 284,370 |
$ 244,738 |
$ 182,806 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP High Income Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Initial Class R shares, Service Class R shares, Service Class 2R shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, 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 may 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. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 59,891,397 |
|
Gross unrealized depreciation |
(3,274,562) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 56,616,835 |
|
|
|
|
Tax cost |
$ 1,524,283,394 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2017 |
$ (58,936,967) |
Trading (Redemption) Fees. Initial Class R shares, Service Class R shares and Service Class 2R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $693,723,735 and $656,051,187, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 33,804 |
|
Service Class 2 |
335,152 |
|
Service Class R |
29,673 |
|
Service Class 2 R |
5,759 |
|
|
$ 404,388 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.10% for Investor Class) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 209,711 |
|
Service Class |
23,752 |
|
Service Class 2 |
93,470 |
|
Initial Class R |
10,106 |
|
Service Class R |
20,194 |
|
Service Class 2R |
1,567 |
|
Investor Class |
280,587 |
|
|
$ 639,387 |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,410 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $712.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 33,473,820 |
|
Service Class |
- |
3,969,791 |
|
Service Class 2 |
- |
16,115,842 |
|
Initial Class R |
- |
1,722,419 |
|
Service Class R |
- |
3,349,920 |
|
Service Class 2R |
- |
230,462 |
|
Investor Class |
- |
28,059,622 |
|
Total |
$ - |
$ 86,921,876 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended |
Year ended |
|
Initial Class |
|
|
|
|
|
Shares sold |
5,135,576 |
14,039,906 |
$ 30,535,505 |
$ 83,416,151 |
|
Reinvestment of distributions |
- |
5,790,037 |
- |
33,473,820 |
|
Shares redeemed |
(8,717,004) |
(23,058,485) |
(51,764,852) |
(136,983,639) |
|
Net increase (decrease) |
(3,581,428) |
(3,228,542) |
$ (21,229,347) |
$ (20,093,668) |
|
Service Class |
|
|
|
|
|
Shares sold |
154,718 |
929,486 |
$ 917,055 |
$ 5,521,007 |
|
Reinvestment of distributions |
- |
690,233 |
- |
3,969,791 |
|
Shares redeemed |
(1,021,066) |
(3,064,824) |
(6,019,674) |
(18,085,383) |
|
Net increase (decrease) |
(866,348) |
(1,445,105) |
$ (5,102,619) |
$ (8,594,585) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
4,283,437 |
20,103,362 |
$ 24,787,533 |
$ 116,574,992 |
|
Reinvestment of distributions |
- |
2,866,946 |
- |
16,115,842 |
|
Shares redeemed |
(12,076,406) |
(22,951,503) |
(69,884,631) |
(132,172,105) |
|
Net increase (decrease) |
(7,792,969) |
18,805 |
$ (45,097,098) |
$ 518,729 |
|
Initial Class R |
|
|
|
|
|
Shares sold |
187,809 |
852,998 |
$ 1,113,381 |
$ 5,061,609 |
|
Reinvestment of distributions |
- |
298,955 |
- |
1,722,419 |
|
Shares redeemed |
(346,271) |
(2,192,612) |
(2,044,567) |
(12,973,240) |
|
Net increase (decrease) |
(158,462) |
(1,040,659) |
$ (931,186) |
$ (6,189,212) |
|
Service Class R |
|
|
|
|
|
Shares sold |
302,302 |
5,190,571 |
$ 1,768,937 |
$ 30,731,567 |
|
Reinvestment of distributions |
- |
585,519 |
- |
3,349,920 |
|
Shares redeemed |
(452,284) |
(7,823,949) |
(2,663,456) |
(46,022,233) |
|
Net increase (decrease) |
(149,982) |
(2,047,859) |
$ (894,519) |
$ (11,940,746) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
389,193 |
995,220 |
$ 2,251,939 |
$ 5,809,165 |
|
Reinvestment of distributions |
- |
40,999 |
- |
230,462 |
|
Shares redeemed |
(233,183) |
(976,234) |
(1,329,887) |
(5,617,855) |
|
Net increase (decrease) |
156,010 |
59,985 |
$ 922,052 |
$ 421,772 |
|
Investor Class |
|
|
|
|
|
Shares sold |
10,936,048 |
25,574,430 |
$ 64,457,540 |
$ 151,658,997 |
|
Reinvestment of distributions |
- |
4,870,500 |
- |
28,059,622 |
|
Shares redeemed |
(3,012,061) |
(19,845,132) |
(17,977,235) |
(117,522,548) |
|
Net increase (decrease) |
7,923,987 |
10,599,798 |
$ 46,480,305 |
$ 62,196,071 |
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, the investment adviser or its affiliates were the owners of record of 42% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 15% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
VIPHI-SANN-0814 1.705694.116
Fidelity® Variable Insurance Products:
Value Portfolio
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
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Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
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Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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.
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Annualized |
Beginning |
Ending |
Expenses Paid |
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Initial Class |
.69% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,076.50 |
$ 3.55 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.37 |
$ 3.46 |
|
Service Class |
.79% |
|
|
|
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Actual |
|
$ 1,000.00 |
$ 1,075.90 |
$ 4.07 |
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HypotheticalA |
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$ 1,000.00 |
$ 1,020.88 |
$ 3.96 |
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Service Class 2 |
.94% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,074.50 |
$ 4.84 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.13 |
$ 4.71 |
|
Investor Class |
.77% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,075.20 |
$ 3.96 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.98 |
$ 3.86 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
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Top Ten Stocks as of June 30, 2014 |
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% of fund's |
% of fund's net assets |
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JPMorgan Chase & Co. |
3.3 |
3.7 |
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Chevron Corp. |
3.0 |
3.2 |
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Citigroup, Inc. |
2.7 |
2.7 |
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Berkshire Hathaway, Inc. Class B |
2.6 |
1.5 |
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Bank of America Corp. |
2.2 |
2.8 |
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U.S. Bancorp |
1.8 |
2.2 |
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General Electric Co. |
1.7 |
2.5 |
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British American Tobacco PLC sponsored ADR |
1.6 |
0.5 |
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Covidien PLC |
1.6 |
0.0 |
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Occidental Petroleum Corp. |
1.5 |
1.7 |
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|
22.0 |
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Top Five Market Sectors as of June 30, 2014 |
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% of fund's |
% of fund's net assets |
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Financials |
29.0 |
27.6 |
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Energy |
14.4 |
14.2 |
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Health Care |
12.9 |
12.0 |
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Information Technology |
9.6 |
11.8 |
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Industrials |
8.7 |
9.6 |
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Asset Allocation (% of fund's net assets) |
|||||||
|
As of June 30, 2014* |
As of December 31, 2013** |
||||||
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Stocks 98.5% |
|
|
Stocks 97.9% |
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Short-Term |
|
|
Short-Term |
|
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* Foreign investments |
20.5% |
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** Foreign investments |
16.9% |
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Semiannual Report
Showing Percentage of Net Assets
|
Common Stocks - 98.5% |
|||
|
Shares |
Value |
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CONSUMER DISCRETIONARY - 8.4% |
|||
|
Auto Components - 1.2% |
|||
|
Delphi Automotive PLC |
19,300 |
$ 1,326,682 |
|
|
Visteon Corp. (a) |
21,300 |
2,066,313 |
|
|
|
3,392,995 |
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Diversified Consumer Services - 0.7% |
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Houghton Mifflin Harcourt Co. |
106,900 |
2,048,204 |
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Hotels, Restaurants & Leisure - 0.2% |
|||
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Brinker International, Inc. |
11,300 |
549,745 |
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Household Durables - 1.0% |
|||
|
KB Home (d) |
147,600 |
2,757,168 |
|
|
Media - 3.1% |
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CBS Corp. Class B |
56,100 |
3,486,054 |
|
|
Lamar Advertising Co. Class A |
41,500 |
2,199,500 |
|
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Twenty-First Century Fox, Inc. Class A |
77,100 |
2,710,065 |
|
|
|
8,395,619 |
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Multiline Retail - 0.5% |
|||
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Target Corp. |
23,400 |
1,356,030 |
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Specialty Retail - 1.7% |
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AutoZone, Inc. (a) |
3,300 |
1,769,592 |
|
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Lowe's Companies, Inc. |
28,700 |
1,377,313 |
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Office Depot, Inc. (a) |
241,600 |
1,374,704 |
|
|
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4,521,609 |
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TOTAL CONSUMER DISCRETIONARY |
23,021,370 |
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CONSUMER STAPLES - 6.7% |
|||
|
Food & Staples Retailing - 1.2% |
|||
|
Walgreen Co. |
43,800 |
3,246,894 |
|
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Food Products - 1.2% |
|||
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Dean Foods Co. |
108,800 |
1,913,792 |
|
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Ingredion, Inc. |
20,400 |
1,530,816 |
|
|
|
3,444,608 |
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Household Products - 2.0% |
|||
|
Procter & Gamble Co. |
44,800 |
3,520,832 |
|
|
Svenska Cellulosa AB (SCA) (B Shares) |
72,000 |
1,876,092 |
|
|
|
5,396,924 |
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Personal Products - 0.7% |
|||
|
Coty, Inc. Class A |
118,500 |
2,029,905 |
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Tobacco - 1.6% |
|||
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British American Tobacco PLC sponsored ADR |
36,400 |
4,334,512 |
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TOTAL CONSUMER STAPLES |
18,452,843 |
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|
|||
|
Shares |
Value |
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ENERGY - 14.4% |
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|
Energy Equipment & Services - 1.8% |
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|
Cameron International Corp. (a) |
11,916 |
$ 806,832 |
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|
Halliburton Co. |
57,800 |
4,104,378 |
|
|
|
4,911,210 |
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Oil, Gas & Consumable Fuels - 12.6% |
|||
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Anadarko Petroleum Corp. |
26,500 |
2,900,955 |
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Chevron Corp. |
62,100 |
8,107,155 |
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Cimarex Energy Co. |
11,400 |
1,635,444 |
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Energen Corp. |
23,491 |
2,087,880 |
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Imperial Oil Ltd. |
70,300 |
3,704,577 |
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Marathon Petroleum Corp. |
31,700 |
2,474,819 |
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Occidental Petroleum Corp. |
41,198 |
4,228,151 |
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|
Stone Energy Corp. (a) |
4,200 |
196,518 |
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Suncor Energy, Inc. |
88,800 |
3,786,514 |
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Tesoro Corp. |
67,900 |
3,983,693 |
|
|
Whiting Petroleum Corp. (a) |
17,300 |
1,388,325 |
|
|
|
34,494,031 |
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TOTAL ENERGY |
39,405,241 |
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FINANCIALS - 29.0% |
|||
|
Banks - 10.4% |
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|
Bank of America Corp. |
386,400 |
5,938,968 |
|
|
Barclays PLC sponsored ADR |
87,032 |
1,271,538 |
|
|
Citigroup, Inc. |
154,947 |
7,298,004 |
|
|
JPMorgan Chase & Co. |
155,919 |
8,984,053 |
|
|
U.S. Bancorp |
116,634 |
5,052,585 |
|
|
|
28,545,148 |
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Capital Markets - 3.7% |
|||
|
Ameriprise Financial, Inc. |
16,700 |
2,004,000 |
|
|
BlackRock, Inc. Class A |
5,700 |
1,821,720 |
|
|
E*TRADE Financial Corp. (a) |
73,000 |
1,551,980 |
|
|
KKR & Co. LP |
95,600 |
2,325,948 |
|
|
UBS AG |
138,308 |
2,535,810 |
|
|
|
10,239,458 |
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|
Consumer Finance - 1.5% |
|||
|
Capital One Financial Corp. |
49,300 |
4,072,180 |
|
|
Diversified Financial Services - 3.4% |
|||
|
Berkshire Hathaway, Inc. Class B (a) |
57,600 |
7,289,856 |
|
|
The NASDAQ OMX Group, Inc. |
53,500 |
2,066,170 |
|
|
|
9,356,026 |
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|
Insurance - 7.3% |
|||
|
Allied World Assurance Co. Holdings Ltd. |
44,700 |
1,699,494 |
|
|
Allstate Corp. |
33,100 |
1,943,632 |
|
|
Fidelity National Financial, Inc. Class A |
66,200 |
2,168,712 |
|
|
Primerica, Inc. |
36,000 |
1,722,600 |
|
|
Prudential PLC |
82,600 |
1,892,486 |
|
|
Reinsurance Group of America, Inc. |
31,200 |
2,461,680 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Insurance - continued |
|||
|
The Chubb Corp. |
41,200 |
$ 3,797,404 |
|
|
The Travelers Companies, Inc. |
44,900 |
4,223,743 |
|
|
|
19,909,751 |
||
|
Real Estate Investment Trusts - 2.2% |
|||
|
American Tower Corp. |
22,900 |
2,060,542 |
|
|
Equity Lifestyle Properties, Inc. |
47,900 |
2,115,264 |
|
|
Weyerhaeuser Co. |
53,900 |
1,783,551 |
|
|
|
5,959,357 |
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|
Real Estate Management & Development - 0.5% |
|||
|
Forest City Enterprises, Inc. Class A (a) |
73,500 |
1,460,445 |
|
|
TOTAL FINANCIALS |
79,542,365 |
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|
HEALTH CARE - 12.9% |
|||
|
Biotechnology - 1.5% |
|||
|
Amgen, Inc. |
24,800 |
2,935,576 |
|
|
United Therapeutics Corp. (a) |
12,900 |
1,141,521 |
|
|
|
4,077,097 |
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|
Health Care Equipment & Supplies - 1.6% |
|||
|
Covidien PLC |
47,600 |
4,292,568 |
|
|
Health Care Providers & Services - 3.1% |
|||
|
Cigna Corp. |
20,800 |
1,912,976 |
|
|
HCA Holdings, Inc. (a) |
69,400 |
3,912,772 |
|
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McKesson Corp. |
14,439 |
2,688,686 |
|
|
|
8,514,434 |
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Pharmaceuticals - 6.7% |
|||
|
Actavis PLC (a) |
17,500 |
3,903,375 |
|
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GlaxoSmithKline PLC sponsored ADR |
52,900 |
2,829,092 |
|
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Novartis AG sponsored ADR |
43,700 |
3,956,161 |
|
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Roche Holding AG (participation certificate) |
9,235 |
2,751,632 |
|
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Sanofi SA sponsored ADR |
59,400 |
3,158,298 |
|
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Teva Pharmaceutical Industries Ltd. sponsored ADR |
36,900 |
1,934,298 |
|
|
|
18,532,856 |
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TOTAL HEALTH CARE |
35,416,955 |
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|
INDUSTRIALS - 8.7% |
|||
|
Aerospace & Defense - 2.8% |
|||
|
Curtiss-Wright Corp. |
37,400 |
2,451,944 |
|
|
Meggitt PLC |
197,137 |
1,707,144 |
|
|
United Technologies Corp. |
30,468 |
3,517,531 |
|
|
|
7,676,619 |
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|
Commercial Services & Supplies - 0.8% |
|||
|
Iron Mountain, Inc. |
65,700 |
2,329,065 |
|
|
|
|||
|
Shares |
Value |
||
|
Construction & Engineering - 1.5% |
|||
|
Jacobs Engineering Group, Inc. (a) |
35,600 |
$ 1,896,768 |
|
|
URS Corp. |
50,500 |
2,315,425 |
|
|
|
4,212,193 |
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Industrial Conglomerates - 1.7% |
|||
|
General Electric Co. |
175,248 |
4,605,517 |
|
|
Machinery - 1.2% |
|||
|
Stanley Black & Decker, Inc. |
21,700 |
1,905,694 |
|
|
Valmont Industries, Inc. |
9,100 |
1,382,745 |
|
|
|
3,288,439 |
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|
Trading Companies & Distributors - 0.7% |
|||
|
AerCap Holdings NV (a) |
41,300 |
1,891,540 |
|
|
TOTAL INDUSTRIALS |
24,003,373 |
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INFORMATION TECHNOLOGY - 9.6% |
|||
|
Communications Equipment - 1.0% |
|||
|
QUALCOMM, Inc. |
35,500 |
2,811,600 |
|
|
Electronic Equipment & Components - 0.5% |
|||
|
TE Connectivity Ltd. |
22,800 |
1,409,952 |
|
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IT Services - 4.0% |
|||
|
Amdocs Ltd. |
34,700 |
1,607,651 |
|
|
CGI Group, Inc. Class A (sub. vtg.) (a) |
35,400 |
1,254,700 |
|
|
Computer Sciences Corp. |
30,000 |
1,896,000 |
|
|
Global Payments, Inc. |
37,600 |
2,739,160 |
|
|
Total System Services, Inc. |
113,100 |
3,552,471 |
|
|
|
11,049,982 |
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|
Software - 3.2% |
|||
|
Activision Blizzard, Inc. |
79,300 |
1,768,390 |
|
|
Electronic Arts, Inc. (a) |
53,100 |
1,904,697 |
|
|
Oracle Corp. |
73,600 |
2,983,008 |
|
|
Synopsys, Inc. (a) |
51,800 |
2,010,876 |
|
|
|
8,666,971 |
||
|
Technology Hardware, Storage & Peripherals - 0.9% |
|||
|
Apple, Inc. |
26,800 |
2,490,524 |
|
|
TOTAL INFORMATION TECHNOLOGY |
26,429,029 |
||
|
MATERIALS - 3.3% |
|||
|
Chemicals - 2.6% |
|||
|
Agrium, Inc. |
19,100 |
1,749,707 |
|
|
Axiall Corp. |
28,400 |
1,342,468 |
|
|
Eastman Chemical Co. |
24,400 |
2,131,340 |
|
|
Methanex Corp. |
29,700 |
1,836,192 |
|
|
|
7,059,707 |
||
|
Metals & Mining - 0.7% |
|||
|
Freeport-McMoRan Copper & Gold, Inc. |
56,500 |
2,062,250 |
|
|
TOTAL MATERIALS |
9,121,957 |
||
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
TELECOMMUNICATION SERVICES - 0.5% |
|||
|
Wireless Telecommunication Services - 0.5% |
|||
|
Vodafone Group PLC sponsored ADR |
40,172 |
$ 1,341,343 |
|
|
UTILITIES - 5.0% |
|||
|
Electric Utilities - 2.4% |
|||
|
Edison International |
42,307 |
2,458,460 |
|
|
ITC Holdings Corp. |
80,443 |
2,934,561 |
|
|
PPL Corp. |
29,735 |
1,056,485 |
|
|
|
6,449,506 |
||
|
Multi-Utilities - 2.6% |
|||
|
DTE Energy Co. |
29,600 |
2,304,952 |
|
|
NiSource, Inc. |
55,800 |
2,195,172 |
|
|
Sempra Energy |
25,500 |
2,670,105 |
|
|
|
7,170,229 |
||
|
TOTAL UTILITIES |
13,619,735 |
||
|
TOTAL COMMON STOCKS (Cost $228,890,601) |
|
||
|
Money Market Funds - 2.0% |
|||
|
Shares |
Value |
||
|
Fidelity Cash Central Fund, 0.11% (b) |
3,234,981 |
$ 3,234,981 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
2,279,200 |
2,279,200 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $5,514,181) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $234,404,782) |
275,868,392 |
||
|
NET OTHER ASSETS (LIABILITIES) - (0.5)% |
(1,432,156) |
||
|
NET ASSETS - 100% |
$ 274,436,236 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 4,116 |
|
Fidelity Securities Lending Cash Central Fund |
6,587 |
|
Total |
$ 10,703 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 23,021,370 |
$ 23,021,370 |
$ - |
$ - |
|
Consumer Staples |
18,452,843 |
18,452,843 |
- |
- |
|
Energy |
39,405,241 |
39,405,241 |
- |
- |
|
Financials |
79,542,365 |
75,114,069 |
4,428,296 |
- |
|
Health Care |
35,416,955 |
32,665,323 |
2,751,632 |
- |
|
Industrials |
24,003,373 |
24,003,373 |
- |
- |
|
Information Technology |
26,429,029 |
26,429,029 |
- |
- |
|
Materials |
9,121,957 |
9,121,957 |
- |
- |
|
Telecommunication Services |
1,341,343 |
1,341,343 |
- |
- |
|
Utilities |
13,619,735 |
13,619,735 |
- |
- |
|
Money Market Funds |
5,514,181 |
5,514,181 |
- |
- |
|
Total Investments in Securities: |
$ 275,868,392 |
$ 268,688,464 |
$ 7,179,928 |
$ - |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
79.5% |
|
United Kingdom |
4.9% |
|
Switzerland |
4.4% |
|
Canada |
4.4% |
|
Ireland |
3.0% |
|
France |
1.2% |
|
Others (Individually Less Than 1%) |
2.6% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $2,211,712) - See accompanying schedule: Unaffiliated issuers (cost $228,890,601) |
$ 270,354,211 |
|
|
Fidelity Central Funds (cost $5,514,181) |
5,514,181 |
|
|
Total Investments (cost $234,404,782) |
|
$ 275,868,392 |
|
Cash |
|
45,150 |
|
Foreign currency held at value (cost $79) |
|
80 |
|
Receivable for investments sold |
|
20,376,049 |
|
Receivable for fund shares sold |
|
259,649 |
|
Dividends receivable |
|
444,113 |
|
Distributions receivable from Fidelity Central Funds |
|
2,452 |
|
Other receivables |
|
179 |
|
Total assets |
|
296,996,064 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 20,082,829 |
|
|
Payable for fund shares redeemed |
10,235 |
|
|
Accrued management fee |
123,946 |
|
|
Distribution and service plan fees payable |
1,408 |
|
|
Other affiliated payables |
33,141 |
|
|
Other payables and accrued expenses |
29,069 |
|
|
Collateral on securities loaned, at value |
2,279,200 |
|
|
Total liabilities |
|
22,559,828 |
|
|
|
|
|
Net Assets |
|
$ 274,436,236 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 216,677,693 |
|
Undistributed net investment income |
|
2,451,024 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
13,843,832 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
41,463,687 |
|
Net Assets |
|
$ 274,436,236 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 16.14 |
|
|
|
|
|
Service Class: |
|
$ 16.13 |
|
|
|
|
|
Service Class 2: |
|
$ 15.97 |
|
|
|
|
|
Investor Class: |
|
$ 16.11 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 2,482,499 |
|
Special dividends |
|
846,171 |
|
Income from Fidelity Central Funds |
|
10,703 |
|
Total income |
|
3,339,373 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 679,421 |
|
|
Transfer agent fees |
134,706 |
|
|
Distribution and service plan fees |
8,109 |
|
|
Accounting and security lending fees |
48,151 |
|
|
Custodian fees and expenses |
4,793 |
|
|
Independent trustees' compensation |
478 |
|
|
Audit |
29,540 |
|
|
Legal |
636 |
|
|
Miscellaneous |
2,324 |
|
|
Total expenses before reductions |
908,158 |
|
|
Expense reductions |
(4) |
908,154 |
|
Net investment income (loss) |
|
2,431,219 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
14,235,597 |
|
|
Foreign currency transactions |
(5,930) |
|
|
Total net realized gain (loss) |
|
14,229,667 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
2,047,304 |
|
|
Assets and liabilities in foreign currencies |
101 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
2,047,405 |
|
Net gain (loss) |
|
16,277,072 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 18,708,291 |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 2,431,219 |
$ 2,336,289 |
|
Net realized gain (loss) |
14,229,667 |
23,890,866 |
|
Change in net unrealized appreciation (depreciation) |
2,047,405 |
26,021,968 |
|
Net increase (decrease) in net assets resulting from operations |
18,708,291 |
52,249,123 |
|
Distributions to shareholders from net investment income |
- |
(2,294,348) |
|
Distributions to shareholders from net realized gain |
(2,822,977) |
(17,534,055) |
|
Total distributions |
(2,822,977) |
(19,828,403) |
|
Share transactions - net increase (decrease) |
26,590,703 |
51,029,038 |
|
Total increase (decrease) in net assets |
42,476,017 |
83,449,758 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
231,960,219 |
148,510,461 |
|
End of period (including undistributed net investment income of $2,451,024 and undistributed net investment income of $19,805, respectively) |
$ 274,436,236 |
$ 231,960,219 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 15.18 |
$ 12.60 |
$ 10.60 |
$ 11.00 |
$ 9.47 |
$ 6.69 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.15H |
.19 |
.20 |
.12 |
.13I |
.07 |
|
Net realized and unrealized gain (loss) |
.99 |
3.84 |
2.01 |
(.40) |
1.56 |
2.78 |
|
Total from investment operations |
1.14 |
4.03 |
2.21 |
(.28) |
1.69 |
2.85 |
|
Distributions from net investment income |
- |
(.17) |
(.21) |
(.12) |
(.15) |
(.07) |
|
Distributions from net realized gain |
(.18) |
(1.27) |
- |
- |
(.01) |
- |
|
Total distributions |
(.18) |
(1.45)K |
(.21) |
(.12) |
(.16) |
(.07) |
|
Net asset value, end of period |
$ 16.14 |
$ 15.18 |
$ 12.60 |
$ 10.60 |
$ 11.00 |
$ 9.47 |
|
Total ReturnB, C, D |
7.65% |
32.46% |
20.91% |
(2.51)% |
17.82% |
42.66% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.69%A |
.71% |
.72% |
.73% |
.76% |
.80% |
|
Expenses net of fee waivers, if any |
.69%A |
.70% |
.72% |
.72% |
.75% |
.80% |
|
Expenses net of all reductions |
.69%A |
.70% |
.71% |
.72% |
.74% |
.80% |
|
Net investment income (loss) |
2.01%A, H |
1.27% |
1.70% |
1.14% |
1.33%I |
.95% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 125,208 |
$ 115,004 |
$ 82,711 |
$ 82,980 |
$ 78,133 |
$ 64,198 |
|
Portfolio turnover rateG |
67%A |
96% |
106% |
79% |
160% |
73% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 1.33%. IInvestment 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 .69%. JExpense 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. KTotal distributions of $1.45 per share is comprised of distributions from net investment income of $.172 and distributions from net realized gain of $1.274 per share. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 15.18 |
$ 12.60 |
$ 10.60 |
$ 10.99 |
$ 9.46 |
$ 6.69 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.15H |
.17 |
.19 |
.12 |
.12I |
.06 |
|
Net realized and unrealized gain (loss) |
.98 |
3.84 |
2.01 |
(.40) |
1.56 |
2.77 |
|
Total from investment operations |
1.13 |
4.01 |
2.20 |
(.28) |
1.68 |
2.83 |
|
Distributions from net investment income |
- |
(.15) |
(.20) |
(.11) |
(.14) |
(.06) |
|
Distributions from net realized gain |
(.18) |
(1.27) |
- |
- |
(.01) |
- |
|
Total distributions |
(.18) |
(1.43)K |
(.20) |
(.11) |
(.15) |
(.06) |
|
Net asset value, end of period |
$ 16.13 |
$ 15.18 |
$ 12.60 |
$ 10.60 |
$ 10.99 |
$ 9.46 |
|
Total ReturnB, C, D |
7.59% |
32.29% |
20.80% |
(2.55)% |
17.73% |
42.35% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.79%A |
.80% |
.81% |
.81% |
.84% |
.91% |
|
Expenses net of fee waivers, if any |
.79%A |
.80% |
.81% |
.81% |
.83% |
.91% |
|
Expenses net of all reductions |
.79%A |
.79% |
.80% |
.81% |
.83% |
.90% |
|
Net investment income (loss) |
1.91%A, H |
1.18% |
1.61% |
1.05% |
1.24%I |
.84% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 226 |
$ 214 |
$ 211 |
$ 194 |
$ 258 |
$ 251 |
|
Portfolio turnover rateG |
67%A |
96% |
106% |
79% |
160% |
73% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 1.23%. IInvestment 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 .61%. JExpense 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. KTotal distributions of $1.43 per share is comprised of distributions from net investment income of $.152 and distributions from net realized gain of $1.274 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 15.05 |
$ 12.50 |
$ 10.52 |
$ 10.90 |
$ 9.38 |
$ 6.63 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.13H |
.15 |
.17 |
.10 |
.11I |
.05 |
|
Net realized and unrealized gain (loss) |
.97 |
3.81 |
1.99 |
(.39) |
1.53 |
2.75 |
|
Total from investment operations |
1.10 |
3.96 |
2.16 |
(.29) |
1.64 |
2.80 |
|
Distributions from net investment income |
- |
(.14) |
(.18) |
(.09) |
(.11) |
(.05) |
|
Distributions from net realized gain |
(.18) |
(1.27) |
- |
- |
(.01) |
- |
|
Total distributions |
(.18) |
(1.41) |
(.18) |
(.09) |
(.12) |
(.05) |
|
Net asset value, end of period |
$ 15.97 |
$ 15.05 |
$ 12.50 |
$ 10.52 |
$ 10.90 |
$ 9.38 |
|
Total ReturnB, C, D |
7.45% |
32.18% |
20.55% |
(2.68)% |
17.52% |
42.32% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.94%A |
.96% |
.98% |
.98% |
1.00% |
1.05% |
|
Expenses net of fee waivers, if any |
.94%A |
.96% |
.98% |
.97% |
1.00% |
1.05% |
|
Expenses net of all reductions |
.94%A |
.95% |
.97% |
.97% |
.99% |
1.05% |
|
Net investment income (loss) |
1.76%A, H |
1.01% |
1.45% |
.89% |
1.08%I |
.70% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 6,517 |
$ 5,831 |
$ 3,736 |
$ 3,202 |
$ 8,652 |
$ 8,277 |
|
Portfolio turnover rateG |
67%A |
96% |
106% |
79% |
160% |
73% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 1.08%. IInvestment 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 .45%. JExpense 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. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 15.17 |
$ 12.59 |
$ 10.59 |
$ 10.99 |
$ 9.46 |
$ 6.69 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.15H |
.18 |
.19 |
.12 |
.12I |
.07 |
|
Net realized and unrealized gain (loss) |
.97 |
3.84 |
2.01 |
(.41) |
1.56 |
2.77 |
|
Total from investment operations |
1.12 |
4.02 |
2.20 |
(.29) |
1.68 |
2.84 |
|
Distributions from net investment income |
- |
(.16) |
(.20) |
(.11) |
(.14) |
(.07) |
|
Distributions from net realized gain |
(.18) |
(1.27) |
- |
- |
(.01) |
- |
|
Total distributions |
(.18) |
(1.44)K |
(.20) |
(.11) |
(.15) |
(.07) |
|
Net asset value, end of period |
$ 16.11 |
$ 15.17 |
$ 12.59 |
$ 10.59 |
$ 10.99 |
$ 9.46 |
|
Total ReturnB, C, D |
7.52% |
32.42% |
20.83% |
(2.59)% |
17.74% |
42.41% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.77%A |
.78% |
.80% |
.80% |
.83% |
.89% |
|
Expenses net of fee waivers, if any |
.77%A |
.78% |
.80% |
.80% |
.83% |
.89% |
|
Expenses net of all reductions |
.77%A |
.78% |
.79% |
.80% |
.82% |
.88% |
|
Net investment income (loss) |
1.94%A, H |
1.19% |
1.62% |
1.06% |
1.25%I |
.86% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 142,485 |
$ 110,911 |
$ 61,852 |
$ 58,025 |
$ 64,242 |
$ 56,380 |
|
Portfolio turnover rateG |
67%A |
96% |
106% |
79% |
160% |
73% |
|
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment 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 1.25%. IInvestment 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 .61%. JExpense 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. KTotal distributions of $1.44 per share is comprised of distributions from net investment income of $.163 and distributions from net realized gain of $1.274 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Value Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends 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, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 42,648,260 |
|
Gross unrealized depreciation |
(1,555,220) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 41,093,040 |
|
|
|
|
Tax cost |
$ 234,775,352 |
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $108,132,287 and $80,972,829, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' average net assets and .25% of Service Class 2's average net assets.
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 109 |
|
Service Class 2 |
8,000 |
|
|
$ 8,109 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% ( .15% for Investor Class) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 41,849 |
|
Service Class |
76 |
|
Service Class 2 |
2,340 |
|
Investor Class |
90,441 |
|
|
$ 134,706 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,173 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $210 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $6,587. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $4.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 1,155,945 |
|
Service Class |
- |
1,953 |
|
Service Class 2 |
- |
47,170 |
|
Investor Class |
- |
1,089,280 |
|
Total |
$ - |
$ 2,294,348 |
|
From net realized gain |
|
|
|
Initial Class |
$ 1,398,897 |
$ 8,562,059 |
|
Service Class |
2,578 |
16,366 |
|
Service Class 2 |
71,010 |
441,871 |
|
Investor Class |
1,350,492 |
8,513,759 |
|
Total |
$ 2,822,977 |
$ 17,534,055 |
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Initial Class |
|
|
|
|
|
Shares sold |
702,534 |
1,950,146 |
$ 10,771,974 |
$ 28,708,696 |
|
Reinvestment of distributions |
95,488 |
668,363 |
1,398,897 |
9,718,004 |
|
Shares redeemed |
(613,233) |
(1,608,838) |
(9,391,511) |
(23,715,531) |
|
Net increase (decrease) |
184,789 |
1,009,671 |
$ 2,779,360 |
$ 14,711,169 |
|
Service Class |
|
|
|
|
|
Shares sold |
11 |
845 |
$ 172 |
$ 12,321 |
|
Reinvestment of distributions |
176 |
1,260 |
2,578 |
18,319 |
|
Shares redeemed |
(256) |
(4,799) |
(3,983) |
(75,686) |
|
Net increase (decrease) |
(69) |
(2,694) |
$ (1,233) |
$ (45,046) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
137,033 |
196,960 |
$ 2,074,627 |
$ 2,818,674 |
|
Reinvestment of distributions |
4,890 |
33,938 |
71,010 |
489,041 |
|
Shares redeemed |
(121,348) |
(142,285) |
(1,888,720) |
(2,062,350) |
|
Net increase (decrease) |
20,575 |
88,613 |
$ 256,917 |
$ 1,245,365 |
|
Investor Class |
|
|
|
|
|
Shares sold |
1,886,044 |
2,819,642 |
$ 28,982,677 |
$ 41,243,193 |
|
Reinvestment of distributions |
92,247 |
661,366 |
1,350,492 |
9,603,039 |
|
Shares redeemed |
(448,196) |
(1,081,471) |
(6,777,510) |
(15,728,682) |
|
Net increase (decrease) |
1,530,095 |
2,399,537 |
$ 23,555,659 |
$ 35,117,550 |
Semiannual Report
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the VIP Freedom 2020 Portfolio was the owner of record of approximately 16% of the total outstanding shares of the Fund. The VIP Freedom Funds and VIP Investor Freedom Funds were the owners of record, in the aggregate, of approximately 51% of the total outstanding shares of the Fund. In addition, the investment adviser or its affiliates were the owners of record of 45% of the total outstanding shares of the Fund.
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
VIPVAL-SANN-0814 1.761034.113
Fidelity® Variable Insurance Products:
High Income Portfolio - Class R
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.00 |
$ 3.46 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.42 |
$ 3.41 |
|
Service Class |
.78% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,048.50 |
$ 3.96 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.93 |
$ 3.91 |
|
Service Class 2 |
.93% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,047.90 |
$ 4.72 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Initial Class R |
.68% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,048.40 |
$ 3.45 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.42 |
$ 3.41 |
|
Service Class R |
.78% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,047.00 |
$ 3.96 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.93 |
$ 3.91 |
|
Service Class 2R |
.93% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,046.10 |
$ 4.72 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Investor Class |
.71% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,048.40 |
$ 3.61 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.27 |
$ 3.56 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Top Five Holdings as of June 30, 2014 |
||
|
(by issuer, excluding cash equivalents) |
% of fund's |
% of fund's net assets |
|
Alcatel-Lucent U.S.A., Inc. |
2.3 |
1.2 |
|
Clear Channel Communications, Inc. |
2.0 |
0.6 |
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp. |
1.7 |
1.5 |
|
SLM Corp. |
1.7 |
1.0 |
|
APX Group, Inc. |
1.6 |
1.2 |
|
|
9.3 |
|
|
Top Five Market Sectors as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Energy |
11.7 |
12.9 |
|
Telecommunications |
9.2 |
7.3 |
|
Diversified Financial Services |
7.7 |
6.0 |
|
Technology |
7.4 |
9.0 |
|
Healthcare |
6.4 |
4.8 |
|
Quality Diversification (% of fund's net assets) |
|||||||
|
As of June 30, 2014 |
As of December 31, 2013 |
||||||
|
BBB 1.0% |
|
|
BBB 1.1% |
|
||
|
BB 34.1% |
|
|
BB 35.8% |
|
||
|
B 43.0% |
|
|
B 43.2% |
|
||
|
CCC,CC,C 17.0% |
|
|
CCC,CC,C 14.7% |
|
||
|
Not Rated 1.4% |
|
|
Not Rated 0.6% |
|
||
|
Equities 0.4% |
|
|
Equities 0.0% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of June 30, 2014 * |
As of December 31, 2013 ** |
||||||
|
Nonconvertible |
|
|
Nonconvertible |
|
||
|
Convertible Bonds, |
|
|
Convertible Bonds, |
|
||
|
Bank Loan |
|
|
Bank Loan |
|
||
|
Other Investments 1.2% |
|
|
Other Investments 0.3% |
|
||
|
Common Stocks 0.0%† |
|
|
Common Stocks 0.0%† |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
* Foreign investments |
22.0% |
|
** Foreign investments |
20.8% |
|
||
|
† Amount represents less than 0.1% |
Semiannual Report
Showing Percentage of Net Assets
|
Nonconvertible Bonds - 84.3% |
||||
|
|
Principal |
Value |
||
|
Aerospace - 0.9% |
||||
|
TransDigm, Inc.: |
|
|
|
|
|
5.5% 10/15/20 |
|
$ 7,785,000 |
$ 7,912,674 |
|
|
6% 7/15/22 (d) |
|
1,545,000 |
1,587,488 |
|
|
6.5% 7/15/24 (d) |
|
1,520,000 |
1,582,700 |
|
|
Triumph Group, Inc.: |
|
|
|
|
|
4.875% 4/1/21 |
|
2,210,000 |
2,204,475 |
|
|
5.25% 6/1/22 (d) |
|
655,000 |
656,638 |
|
|
|
13,943,975 |
|||
|
Air Transportation - 3.2% |
||||
|
Air Canada: |
|
|
|
|
|
6.625% 5/15/18 (d) |
|
4,995,000 |
5,170,824 |
|
|
7.75% 4/15/21 (d) |
|
4,185,000 |
4,446,563 |
|
|
Allegiant Travel Co. 5.5% 7/15/19 |
|
495,000 |
503,044 |
|
|
American Airlines, Inc. pass-thru certificates Series 2013-1B Class B, 5.625% 1/15/21 (d) |
|
480,502 |
497,319 |
|
|
Continental Airlines, Inc.: |
|
|
|
|
|
pass-thru trust certificates 9.798% 4/1/21 |
|
2,687,460 |
3,090,578 |
|
|
5.5% 4/29/22 |
|
2,867,570 |
2,996,611 |
|
|
6.125% 4/29/18 (d) |
|
520,000 |
556,400 |
|
|
9.25% 5/10/17 |
|
592,300 |
666,337 |
|
|
Delta Air Lines, Inc. pass-thru trust certificates: |
|
|
|
|
|
6.375% 7/2/17 (d) |
|
1,985,000 |
2,123,950 |
|
|
6.75% 5/23/17 |
|
1,985,000 |
2,123,950 |
|
|
8.021% 8/10/22 |
|
1,462,738 |
1,711,403 |
|
|
8.954% 8/10/14 |
|
1,144,613 |
1,153,197 |
|
|
Northwest Airlines, Inc. pass-thru trust certificates 8.028% 11/1/17 |
|
536,518 |
606,909 |
|
|
U.S. Airways Group, Inc. 6.125% 6/1/18 |
|
3,130,000 |
3,306,063 |
|
|
U.S. Airways pass-thru certificates: |
|
|
|
|
|
Series 2012-2C, 5.45% 6/3/18 |
|
3,565,000 |
3,680,863 |
|
|
Series 2013-1 Class B, 5.375% 5/15/23 |
|
710,000 |
734,850 |
|
|
United Air Lines, Inc. pass-thru trust certificates: |
|
|
|
|
|
Class B, 7.336% 7/2/19 |
|
2,348,273 |
2,583,101 |
|
|
9.75% 1/15/17 |
|
1,469,384 |
1,682,444 |
|
|
12% 1/15/16 (d) |
|
392,683 |
444,714 |
|
|
United Continental Holdings, Inc.: |
|
|
|
|
|
6% 12/1/20 |
|
4,505,000 |
4,707,725 |
|
|
6% 7/15/26 |
|
4,610,000 |
4,494,750 |
|
|
6% 7/15/28 |
|
3,050,000 |
2,935,625 |
|
|
6.375% 6/1/18 |
|
300,000 |
324,000 |
|
|
|
50,541,220 |
|||
|
Automotive - 2.2% |
||||
|
American Axle & Manufacturing, Inc.: |
|
|
|
|
|
5.125% 2/15/19 |
|
575,000 |
603,750 |
|
|
6.25% 3/15/21 |
|
6,980,000 |
7,503,500 |
|
|
|
||||
|
|
Principal |
Value |
||
|
Chrysler Group LLC/CG Co-Issuer, Inc. 8% 6/15/19 |
|
$ 8,460,000 |
$ 9,189,675 |
|
|
Dana Holding Corp.: |
|
|
|
|
|
6% 9/15/23 |
|
1,085,000 |
1,150,100 |
|
|
6.75% 2/15/21 |
|
1,710,000 |
1,844,663 |
|
|
General Motors Co. 3.5% 10/2/18 (d) |
|
2,455,000 |
2,510,238 |
|
|
General Motors Financial Co., Inc.: |
|
|
|
|
|
3.25% 5/15/18 |
|
2,670,000 |
2,710,050 |
|
|
4.75% 8/15/17 |
|
2,270,000 |
2,414,713 |
|
|
Schaeffler Finance BV 4.25% 5/15/21 (d) |
|
2,350,000 |
2,354,113 |
|
|
Schaeffler Holding Finance BV 6.875% 8/15/18 pay-in-kind (d)(g) |
|
4,625,000 |
4,873,594 |
|
|
|
35,154,396 |
|||
|
Banks & Thrifts - 0.9% |
||||
|
Ally Financial, Inc. 4.75% 9/10/18 |
|
2,050,000 |
2,175,563 |
|
|
GMAC LLC 8% 12/31/18 |
|
2,465,000 |
2,927,188 |
|
|
Ocwen Financial Corp. 6.625% 5/15/19 (d) |
|
3,325,000 |
3,433,063 |
|
|
Royal Bank of Scotland Group PLC: |
|
|
|
|
|
5.125% 5/28/24 |
|
3,865,000 |
3,922,337 |
|
|
6% 12/19/23 |
|
385,000 |
416,046 |
|
|
Synovus Financial Corp.: |
|
|
|
|
|
5.125% 6/15/17 |
|
395,000 |
411,788 |
|
|
7.875% 2/15/19 |
|
628,000 |
719,060 |
|
|
|
14,005,045 |
|||
|
Broadcasting - 1.7% |
||||
|
Clear Channel Communications, Inc.: |
|
|
|
|
|
5.5% 12/15/16 |
|
14,830,000 |
14,607,550 |
|
|
9% 12/15/19 |
|
2,255,000 |
2,404,394 |
|
|
10% 1/15/18 (d) |
|
5,510,000 |
5,324,038 |
|
|
Starz LLC/Starz Finance Corp. 5% 9/15/19 |
|
4,990,000 |
5,195,838 |
|
|
|
27,531,820 |
|||
|
Building Materials - 2.0% |
||||
|
Building Materials Corp. of America: |
|
|
|
|
|
6.75% 5/1/21 (d) |
|
3,680,000 |
3,965,200 |
|
|
6.875% 8/15/18 (d) |
|
4,490,000 |
4,656,130 |
|
|
Building Materials Holding Corp. 9% 9/15/18 (d) |
|
4,410,000 |
4,751,775 |
|
|
CEMEX Finance LLC 6% 4/1/24 (d) |
|
2,170,000 |
2,259,513 |
|
|
CEMEX S.A.B. de CV 6.5% 12/10/19 (d) |
|
1,365,000 |
1,462,256 |
|
|
HD Supply, Inc. 7.5% 7/15/20 |
|
7,655,000 |
8,363,088 |
|
|
Headwaters, Inc.: |
|
|
|
|
|
7.25% 1/15/19 (d) |
|
905,000 |
957,038 |
|
|
7.625% 4/1/19 |
|
2,525,000 |
2,695,438 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Building Materials - continued |
||||
|
Masco Corp. 5.95% 3/15/22 |
|
$ 1,815,000 |
$ 2,005,575 |
|
|
U.S. Concrete, Inc. 8.5% 12/1/18 (d) |
|
1,160,000 |
1,255,700 |
|
|
|
32,371,713 |
|||
|
Cable TV - 2.4% |
||||
|
Altice S.A. 7.75% 5/15/22 (d) |
|
4,515,000 |
4,819,763 |
|
|
Cablevision Systems Corp. 7.75% 4/15/18 |
|
740,000 |
836,200 |
|
|
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (d) |
|
3,395,000 |
3,607,188 |
|
|
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125% 12/15/21 (d) |
|
4,290,000 |
4,273,913 |
|
|
Cogeco Cable, Inc. 4.875% 5/1/20 (d) |
|
710,000 |
718,875 |
|
|
DISH DBS Corp. 4.25% 4/1/18 |
|
1,705,000 |
1,773,200 |
|
|
Harron Communications LP/Harron Finance Corp. 9.125% 4/1/20 (d) |
|
1,095,000 |
1,220,925 |
|
|
Numericable Group SA: |
|
|
|
|
|
4.875% 5/15/19 (d) |
|
2,630,000 |
2,699,038 |
|
|
6% 5/15/22 (d) |
|
4,540,000 |
4,721,600 |
|
|
6.25% 5/15/24 (d) |
|
895,000 |
934,156 |
|
|
RCN Telecom Services LLC/RCN Capital Corp. 8.5% 8/15/20 (d) |
|
2,615,000 |
2,798,050 |
|
|
Wave Holdco LLC / Wave Holdco Corp. 8.25% 7/15/19 pay-in-kind (d)(g) |
|
375,000 |
384,844 |
|
|
WaveDivision Escrow LLC/WaveDivision Escrow Corp. 8.125% 9/1/20 (d) |
|
7,920,000 |
8,553,600 |
|
|
|
37,341,352 |
|||
|
Capital Goods - 0.3% |
||||
|
Belden, Inc. 5.25% 7/15/24 (d) |
|
400,000 |
403,000 |
|
|
J.B. Poindexter & Co., Inc. 9% 4/1/22 (d) |
|
3,830,000 |
4,260,875 |
|
|
|
4,663,875 |
|||
|
Chemicals - 2.2% |
||||
|
Kinove German Bondco GmbH 9.625% 6/15/18 (d) |
|
4,374,000 |
4,712,985 |
|
|
LSB Industries, Inc. 7.75% 8/1/19 |
|
1,785,000 |
1,909,950 |
|
|
Nufarm Australia Ltd. 6.375% 10/15/19 (d) |
|
3,140,000 |
3,285,225 |
|
|
Rockwood Specialties Group, Inc. 4.625% 10/15/20 |
|
2,850,000 |
2,956,875 |
|
|
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 8.75% 2/1/19 |
|
14,895,000 |
16,049,363 |
|
|
Tronox Finance LLC 6.375% 8/15/20 |
|
4,935,000 |
5,095,388 |
|
|
|
34,009,786 |
|||
|
|
||||
|
|
Principal |
Value |
||
|
Consumer Products - 0.3% |
||||
|
First Quality Finance Co., Inc. 4.625% 5/15/21 (d) |
|
$ 5,415,000 |
$ 5,117,175 |
|
|
Containers - 3.1% |
||||
|
ARD Finance SA 11.125% 6/1/18 pay-in-kind (d)(g) |
|
3,230,212 |
3,419,179 |
|
|
Ardagh Finance Holdings SA 8.625% 6/15/19 pay-in-kind (d) |
|
1,080,000 |
1,108,519 |
|
|
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: |
|
|
|
|
|
3.2132% 12/15/19 (d)(f)(g) |
|
3,830,000 |
3,820,425 |
|
|
6% 6/30/21 (d)(f) |
|
655,000 |
655,393 |
|
|
6.25% 1/31/19 (d) |
|
910,000 |
932,750 |
|
|
6.75% 1/31/21 (d) |
|
1,055,000 |
1,089,288 |
|
|
7% 11/15/20 (d) |
|
874,412 |
905,016 |
|
|
Beverage Packaging Holdings II SA (Luxembourg) 6% 6/15/17 (d) |
|
2,525,000 |
2,588,125 |
|
|
BOE Intermediate Holding Corp. 9.75% 11/1/17 pay-in-kind (d)(g) |
|
2,242,276 |
2,315,150 |
|
|
Crown Americas LLC/Crown Americas Capital Corp. IV 4.5% 1/15/23 |
|
8,240,000 |
8,025,760 |
|
|
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: |
|
|
|
|
|
5.75% 10/15/20 |
|
10,330,000 |
10,898,150 |
|
|
8.5% 5/15/18 (c) |
|
6,290,000 |
6,580,913 |
|
|
9.875% 8/15/19 |
|
5,310,000 |
5,880,825 |
|
|
|
48,219,493 |
|||
|
Diversified Financial Services - 6.9% |
||||
|
AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust: |
|
|
|
|
|
3.75% 5/15/19 (d) |
|
3,220,000 |
3,244,150 |
|
|
4.5% 5/15/21 (d) |
|
3,105,000 |
3,159,338 |
|
|
Aircastle Ltd.: |
|
|
|
|
|
4.625% 12/15/18 |
|
1,245,000 |
1,282,350 |
|
|
5.125% 3/15/21 |
|
2,800,000 |
2,898,000 |
|
|
6.25% 12/1/19 |
|
1,740,000 |
1,905,300 |
|
|
6.75% 4/15/17 |
|
1,735,000 |
1,925,850 |
|
|
CIT Group, Inc.: |
|
|
|
|
|
3.875% 2/19/19 |
|
2,525,000 |
2,532,323 |
|
|
5.25% 3/15/18 |
|
1,790,000 |
1,922,013 |
|
|
5.5% 2/15/19 (d) |
|
2,850,000 |
3,088,688 |
|
|
CNH Industrial Capital LLC 3.375% 7/15/19 (d) |
|
4,005,000 |
3,974,963 |
|
|
Cogent Communications Finance, Inc. 5.625% 4/15/21 (d) |
|
1,125,000 |
1,116,563 |
|
|
FLY Leasing Ltd. 6.75% 12/15/20 |
|
4,590,000 |
4,888,350 |
|
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: |
|
|
|
|
|
3.5% 3/15/17 |
|
685,000 |
692,706 |
|
|
4.875% 3/15/19 |
|
7,080,000 |
7,292,400 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Diversified Financial Services - continued |
||||
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: - continued |
|
|
|
|
|
5.875% 2/1/22 |
|
$ 9,400,000 |
$ 9,846,500 |
|
|
6% 8/1/20 |
|
8,415,000 |
9,014,569 |
|
|
ILFC E-Capital Trust I 5.21% 12/21/65 (d)(g) |
|
6,955,000 |
6,789,819 |
|
|
ILFC E-Capital Trust II 6.25% 12/21/65 (d)(g) |
|
5,260,000 |
5,283,144 |
|
|
International Lease Finance Corp.: |
|
|
|
|
|
4.625% 4/15/21 |
|
2,020,000 |
2,085,650 |
|
|
5.875% 4/1/19 |
|
5,485,000 |
6,033,500 |
|
|
5.875% 8/15/22 |
|
3,480,000 |
3,801,900 |
|
|
SLM Corp.: |
|
|
|
|
|
4.875% 6/17/19 |
|
3,775,000 |
3,890,515 |
|
|
5.5% 1/15/19 |
|
12,695,000 |
13,380,530 |
|
|
5.5% 1/25/23 |
|
4,900,000 |
4,857,125 |
|
|
8% 3/25/20 |
|
1,565,000 |
1,809,531 |
|
|
8.45% 6/15/18 |
|
1,560,000 |
1,846,650 |
|
|
|
108,562,427 |
|||
|
Diversified Media - 1.4% |
||||
|
Clear Channel Worldwide Holdings, Inc.: |
|
|
|
|
|
6.5% 11/15/22 |
|
2,715,000 |
2,898,263 |
|
|
6.5% 11/15/22 |
|
4,990,000 |
5,376,725 |
|
|
MDC Partners, Inc. 6.75% 4/1/20 (d) |
|
4,630,000 |
4,884,650 |
|
|
Nielsen Finance LLC/Nielsen Finance Co.: |
|
|
|
|
|
4.5% 10/1/20 |
|
4,525,000 |
4,558,938 |
|
|
5% 4/15/22 (d)(f) |
|
910,000 |
916,825 |
|
|
The Nielsen Co. S.a.r.l. (Luxembourg) 5.5% 10/1/21 (d) |
|
3,610,000 |
3,727,325 |
|
|
|
22,362,726 |
|||
|
Electric Utilities - 3.2% |
||||
|
Atlantic Power Corp. 9% 11/15/18 |
|
8,740,000 |
9,155,150 |
|
|
Global Partners LP / GLP Finance Corp. 6.25% 7/15/22 (d) |
|
400,000 |
400,000 |
|
|
NRG Energy, Inc.: |
|
|
|
|
|
6.25% 7/15/22 (d) |
|
3,810,000 |
4,057,650 |
|
|
6.25% 5/1/24 (d) |
|
4,745,000 |
4,958,525 |
|
|
7.625% 1/15/18 |
|
2,660,000 |
3,052,350 |
|
|
NSG Holdings II, LLC 7.75% 12/15/25 (d) |
|
13,550,000 |
14,634,000 |
|
|
The AES Corp.: |
|
|
|
|
|
4.875% 5/15/23 |
|
3,475,000 |
3,440,250 |
|
|
7.375% 7/1/21 |
|
9,660,000 |
11,302,200 |
|
|
|
51,000,125 |
|||
|
|
||||
|
|
Principal |
Value |
||
|
Energy - 10.8% |
||||
|
Access Midstream Partners LP/ACMP Finance Corp.: |
|
|
|
|
|
4.875% 5/15/23 |
|
$ 4,265,000 |
$ 4,494,244 |
|
|
4.875% 3/15/24 |
|
1,005,000 |
1,061,531 |
|
|
Approach Resources, Inc. 7% 6/15/21 |
|
1,535,000 |
1,600,238 |
|
|
Basic Energy Services, Inc. 7.75% 2/15/19 |
|
615,000 |
651,900 |
|
|
Chesapeake Energy Corp.: |
|
|
|
|
|
4.875% 4/15/22 |
|
2,615,000 |
2,706,525 |
|
|
6.125% 2/15/21 |
|
4,515,000 |
5,056,800 |
|
|
Chesapeake Midstream Partners LP/CHKM Finance Corp.: |
|
|
|
|
|
5.875% 4/15/21 |
|
615,000 |
658,050 |
|
|
6.125% 7/15/22 |
|
1,745,000 |
1,928,225 |
|
|
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: |
|
|
|
|
|
6.125% 3/1/22 (d) |
|
1,175,000 |
1,236,688 |
|
|
7.75% 4/1/19 |
|
2,315,000 |
2,482,838 |
|
|
CVR Refining LLC/Coffeyville Finance, Inc. 6.5% 11/1/22 |
|
5,140,000 |
5,422,700 |
|
|
Denbury Resources, Inc. 6.375% 8/15/21 |
|
2,550,000 |
2,734,875 |
|
|
Endeavor Energy Resources LP/EER Finance, Inc. 7% 8/15/21 (d) |
|
10,435,000 |
11,139,363 |
|
|
Energy Partners Ltd. 8.25% 2/15/18 |
|
4,350,000 |
4,654,500 |
|
|
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75% 9/1/22 |
|
4,015,000 |
4,526,913 |
|
|
Everest Acquisition LLC/Everest Acquisition Finance, Inc.: |
|
|
|
|
|
6.875% 5/1/19 |
|
995,000 |
1,058,431 |
|
|
9.375% 5/1/20 |
|
8,685,000 |
9,944,325 |
|
|
Expro Finance Luxembourg SCA 8.5% 12/15/16 (d) |
|
3,312,000 |
3,461,040 |
|
|
Exterran Holdings, Inc. 7.25% 12/1/18 |
|
6,220,000 |
6,562,100 |
|
|
Exterran Partners LP/EXLP Finance Corp.: |
|
|
|
|
|
6% 4/1/21 |
|
6,300,000 |
6,363,000 |
|
|
6% 10/1/22 (d) |
|
1,770,000 |
1,796,550 |
|
|
Forbes Energy Services Ltd. 9% 6/15/19 |
|
5,725,000 |
5,939,688 |
|
|
Gibson Energy, Inc. 6.75% 7/15/21 (d) |
|
3,635,000 |
3,934,888 |
|
|
Hilcorp Energy I LP/Hilcorp Finance Co. 5% 12/1/24 (d)(f) |
|
1,675,000 |
1,675,000 |
|
|
Hornbeck Offshore Services, Inc.: |
|
|
|
|
|
5% 3/1/21 |
|
1,880,000 |
1,875,300 |
|
|
5.875% 4/1/20 |
|
1,240,000 |
1,283,400 |
|
|
Kinder Morgan Holding Co. LLC 5.625% 11/15/23 (d) |
|
1,270,000 |
1,304,925 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Energy - continued |
||||
|
NGL Energy Partners LP / NGL Energy Finance Corp. 5.125% 7/15/19 (d)(f) |
|
$ 1,325,000 |
$ 1,328,313 |
|
|
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.125% 11/15/20 |
|
6,070,000 |
6,578,363 |
|
|
Offshore Group Investment Ltd.: |
|
|
|
|
|
7.125% 4/1/23 |
|
1,890,000 |
1,918,350 |
|
|
7.5% 11/1/19 |
|
9,295,000 |
9,829,463 |
|
|
Parsley Energy LLC/ Parsley 7.5% 2/15/22 (d) |
|
5,550,000 |
5,924,625 |
|
|
Rice Energy, Inc. 6.25% 5/1/22 (d) |
|
7,825,000 |
8,020,625 |
|
|
Rosetta Resources, Inc.: |
|
|
|
|
|
5.625% 5/1/21 |
|
3,715,000 |
3,821,806 |
|
|
5.875% 6/1/24 |
|
940,000 |
977,600 |
|
|
Samson Investment Co. 10.75% 2/15/20 (d) |
|
3,580,000 |
3,772,425 |
|
|
SemGroup Corp. 7.5% 6/15/21 |
|
2,775,000 |
3,038,625 |
|
|
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: |
|
|
|
|
|
4.25% 11/15/23 |
|
2,445,000 |
2,429,719 |
|
|
5.25% 5/1/23 |
|
4,876,000 |
5,095,420 |
|
|
6.375% 8/1/22 |
|
592,000 |
643,800 |
|
|
6.875% 2/1/21 |
|
2,840,000 |
3,074,300 |
|
|
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 6.125% 10/15/21 |
|
855,000 |
912,713 |
|
|
Western Refining, Inc. 6.25% 4/1/21 |
|
7,485,000 |
7,821,825 |
|
|
Whiting Petroleum Corp.: |
|
|
|
|
|
5% 3/15/19 |
|
4,610,000 |
4,852,025 |
|
|
5.75% 3/15/21 |
|
4,815,000 |
5,272,425 |
|
|
|
170,866,459 |
|||
|
Entertainment/Film - 0.2% |
||||
|
NAI Entertainment Holdings LLC/NAI Entertainment Finance Corp. 5% 8/1/18 (d) |
|
2,970,000 |
3,073,950 |
|
|
Environmental - 0.8% |
||||
|
ADS Waste Holdings, Inc. 8.25% 10/1/20 |
|
5,875,000 |
6,330,313 |
|
|
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (d) |
|
6,065,000 |
6,398,575 |
|
|
|
12,728,888 |
|||
|
Food & Drug Retail - 1.1% |
||||
|
JBS Investments GmbH: |
|
|
|
|
|
7.25% 4/3/24 (d) |
|
1,815,000 |
1,887,600 |
|
|
7.75% 10/28/20 (d) |
|
3,740,000 |
4,001,800 |
|
|
Minerva Luxmbourg SA 7.75% 1/31/23 (d) |
|
2,430,000 |
2,600,100 |
|
|
SUPERVALU, Inc. 6.75% 6/1/21 |
|
8,560,000 |
8,816,800 |
|
|
|
17,306,300 |
|||
|
|
||||
|
|
Principal |
Value |
||
|
Food/Beverage/Tobacco - 2.0% |
||||
|
DS Waters of America, Inc. 10% 9/1/21 (d) |
|
$ 1,485,000 |
$ 1,659,488 |
|
|
ESAL GmbH 6.25% 2/5/23 (d) |
|
11,480,000 |
11,307,800 |
|
|
FAGE Dairy Industry SA/FAGE U.S.A. Dairy Industry, Inc. 9.875% 2/1/20 (d) |
|
4,705,000 |
5,034,350 |
|
|
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: |
|
|
|
|
|
5.875% 7/15/24 (d) |
|
1,825,000 |
1,820,438 |
|
|
7.25% 6/1/21 (d) |
|
2,930,000 |
3,142,425 |
|
|
8.25% 2/1/20 (d) |
|
6,670,000 |
7,236,950 |
|
|
Post Holdings, Inc. 6% 12/15/22 (d) |
|
905,000 |
923,100 |
|
|
|
31,124,551 |
|||
|
Gaming - 2.6% |
||||
|
Caesars Growth Propeties Holdings LLC/Caesars Growth Properties Finance, Inc. 9.375% 5/1/22 (d) |
|
2,845,000 |
2,887,675 |
|
|
GLP Capital LP/GLP Financing II, Inc.: |
|
|
|
|
|
4.375% 11/1/18 (d) |
|
1,735,000 |
1,791,388 |
|
|
5.375% 11/1/23 (d) |
|
1,310,000 |
1,359,125 |
|
|
Golden Nugget Escrow, Inc. 8.5% 12/1/21 (d) |
|
9,965,000 |
10,463,250 |
|
|
MCE Finance Ltd. 5% 2/15/21 (d) |
|
6,645,000 |
6,711,450 |
|
|
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc.: |
|
|
|
|
|
8% 10/1/20 (d) |
|
3,150,000 |
3,291,750 |
|
|
11% 10/1/21 (d) |
|
3,140,000 |
3,375,500 |
|
|
Scientific Games Corp. 6.625% 5/15/21 (d) |
|
7,235,000 |
7,162,650 |
|
|
Seminole Hard Rock Entertainment, Inc. 5.875% 5/15/21 (d) |
|
1,490,000 |
1,493,725 |
|
|
Wynn Macau Ltd. 5.25% 10/15/21 (d) |
|
1,970,000 |
2,024,175 |
|
|
|
40,560,688 |
|||
|
Healthcare - 5.3% |
||||
|
Community Health Systems, Inc.: |
|
|
|
|
|
5.125% 8/15/18 |
|
3,535,000 |
3,707,331 |
|
|
5.125% 8/1/21 (d) |
|
1,125,000 |
1,153,125 |
|
|
6.875% 2/1/22 (d) |
|
5,405,000 |
5,729,300 |
|
|
8% 11/15/19 |
|
8,020,000 |
8,781,900 |
|
|
DJO Finance LLC/DJO Finance Corp.: |
|
|
|
|
|
7.75% 4/15/18 |
|
1,350,000 |
1,417,500 |
|
|
8.75% 3/15/18 |
|
165,000 |
177,375 |
|
|
9.875% 4/15/18 |
|
2,425,000 |
2,619,000 |
|
|
Fresenius Medical Care U.S. Finance II, Inc. 5.625% 7/31/19 (d) |
|
2,960,000 |
3,226,400 |
|
|
Grifols Worldwide Operations Ltd. 5.25% 4/1/22 (d) |
|
2,245,000 |
2,329,188 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Healthcare - continued |
||||
|
HCA Holdings, Inc.: |
|
|
|
|
|
3.75% 3/15/19 |
|
$ 3,820,000 |
$ 3,853,425 |
|
|
5% 3/15/24 |
|
2,360,000 |
2,392,615 |
|
|
8% 10/1/18 |
|
4,350,000 |
5,143,875 |
|
|
HealthSouth Corp. 7.25% 10/1/18 |
|
3,588,000 |
3,749,460 |
|
|
MPH Acquisition Holdings LLC 6.625% 4/1/22 (d) |
|
800,000 |
838,000 |
|
|
MPT Operating Partnership LP/MPT Finance Corp. 6.875% 5/1/21 |
|
2,595,000 |
2,828,550 |
|
|
Sabra Health Care LP/Sabra Capital Corp. 5.5% 2/1/21 |
|
4,565,000 |
4,793,250 |
|
|
Tenet Healthcare Corp.: |
|
|
|
|
|
5% 3/1/19 (d) |
|
2,265,000 |
2,296,144 |
|
|
6% 10/1/20 |
|
5,420,000 |
5,880,700 |
|
|
6.25% 11/1/18 |
|
1,435,000 |
1,592,850 |
|
|
8.125% 4/1/22 |
|
12,170,000 |
14,086,775 |
|
|
Valeant Pharmaceuticals International: |
|
|
|
|
|
6.75% 8/15/18 (d) |
|
4,195,000 |
4,520,113 |
|
|
6.875% 12/1/18 (d) |
|
2,315,000 |
2,422,069 |
|
|
|
83,538,945 |
|||
|
Homebuilders/Real Estate - 3.2% |
||||
|
CBRE Group, Inc. 6.625% 10/15/20 |
|
945,000 |
1,002,881 |
|
|
D.R. Horton, Inc.: |
|
|
|
|
|
3.625% 2/15/18 |
|
3,605,000 |
3,690,619 |
|
|
3.75% 3/1/19 |
|
2,530,000 |
2,542,650 |
|
|
4.375% 9/15/22 |
|
1,675,000 |
1,660,344 |
|
|
Howard Hughes Corp. 6.875% 10/1/21 (d) |
|
2,870,000 |
3,070,900 |
|
|
KB Home 4.75% 5/15/19 |
|
3,190,000 |
3,213,925 |
|
|
Lennar Corp.: |
|
|
|
|
|
4.125% 12/1/18 |
|
3,605,000 |
3,681,606 |
|
|
4.5% 6/15/19 |
|
3,290,000 |
3,368,138 |
|
|
Realogy Group LLC/Realogy Co.-Issuer Corp. 4.5% 4/15/19 (d) |
|
1,960,000 |
1,955,100 |
|
|
Standard Pacific Corp. 8.375% 5/15/18 |
|
13,040,000 |
15,387,200 |
|
|
Toll Brothers Finance Corp.: |
|
|
|
|
|
4% 12/31/18 |
|
3,350,000 |
3,450,500 |
|
|
4.375% 4/15/23 |
|
5,520,000 |
5,423,400 |
|
|
Weyerhaeuser Real Estate Co.: |
|
|
|
|
|
4.375% 6/15/19 (d) |
|
990,000 |
992,475 |
|
|
5.875% 6/15/24 (d) |
|
725,000 |
745,844 |
|
|
William Lyon Homes, Inc. 5.75% 4/15/19 (d) |
|
640,000 |
656,000 |
|
|
|
50,841,582 |
|||
|
Hotels - 0.2% |
||||
|
Playa Resorts Holding BV 8% 8/15/20 (d) |
|
3,665,000 |
3,949,038 |
|
|
|
||||
|
|
Principal |
Value |
||
|
Leisure - 0.9% |
||||
|
24 Hour Holdings III LLC 8% 6/1/22 (d) |
|
$ 680,000 |
$ 676,600 |
|
|
NCL Corp. Ltd. 5% 2/15/18 |
|
5,690,000 |
5,874,925 |
|
|
Royal Caribbean Cruises Ltd.: |
|
|
|
|
|
5.25% 11/15/22 |
|
6,045,000 |
6,347,250 |
|
|
7.5% 10/15/27 |
|
595,000 |
682,346 |
|
|
|
13,581,121 |
|||
|
Metals/Mining - 2.1% |
||||
|
CONSOL Energy, Inc. 5.875% 4/15/22 (d) |
|
5,200,000 |
5,447,000 |
|
|
Imperial Metals Corp. 7% 3/15/19 (d) |
|
320,000 |
327,673 |
|
|
Murray Energy Corp.: |
|
|
|
|
|
8.625% 6/15/21 (d) |
|
3,870,000 |
4,189,275 |
|
|
9.5% 12/5/20 (d) |
|
3,380,000 |
3,777,150 |
|
|
New Gold, Inc. 6.25% 11/15/22 (d) |
|
7,295,000 |
7,586,800 |
|
|
Peabody Energy Corp.: |
|
|
|
|
|
6.25% 11/15/21 |
|
2,530,000 |
2,520,513 |
|
|
7.875% 11/1/26 |
|
1,268,000 |
1,333,492 |
|
|
Rain CII Carbon LLC/CII Carbon Corp. 8.25% 1/15/21 (d) |
|
2,925,000 |
3,071,250 |
|
|
Signode Industrial Group Lux SA/Signode Industrial Group U.S., Inc. 6.375% 5/1/22 (d) |
|
2,845,000 |
2,880,563 |
|
|
Walter Energy, Inc. 11% 4/1/20 pay-in-kind (d)(g) |
|
1,610,000 |
1,344,350 |
|
|
|
32,478,066 |
|||
|
Paper - 0.3% |
||||
|
Sappi Papier Holding GmbH 7.75% 7/15/17 (d) |
|
4,920,000 |
5,473,500 |
|
|
Publishing/Printing - 1.1% |
||||
|
Cenveo Corp. 6% 8/1/19 (d) |
|
965,000 |
965,000 |
|
|
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 9.75% 4/1/21 |
|
8,095,000 |
9,289,013 |
|
|
R.R. Donnelley & Sons Co.: |
|
|
|
|
|
6.5% 11/15/23 |
|
2,220,000 |
2,319,900 |
|
|
7% 2/15/22 |
|
1,100,000 |
1,212,750 |
|
|
7.25% 5/15/18 |
|
1,473,000 |
1,704,998 |
|
|
Time, Inc. 5.75% 4/15/22 (d) |
|
1,145,000 |
1,156,450 |
|
|
|
16,648,111 |
|||
|
Restaurants - 0.3% |
||||
|
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc. 10.5% 1/15/20 |
|
4,035,000 |
4,549,463 |
|
|
Services - 4.4% |
||||
|
APX Group, Inc.: |
|
|
|
|
|
6.375% 12/1/19 |
|
12,190,000 |
12,647,125 |
|
|
8.75% 12/1/20 |
|
9,955,000 |
10,104,325 |
|
|
8.75% 12/1/20 (d) |
|
2,375,000 |
2,410,625 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Services - continued |
||||
|
Audatex North America, Inc. 6% 6/15/21 (d) |
|
$ 5,355,000 |
$ 5,716,463 |
|
|
Bankrate, Inc. 6.125% 8/15/18 (d) |
|
2,580,000 |
2,738,025 |
|
|
Blueline Rent Finance Corp./Volvo 7% 2/1/19 (d) |
|
2,370,000 |
2,529,975 |
|
|
Brand Energy & Infrastructure Services, Inc. 8.5% 12/1/21 (d) |
|
4,640,000 |
4,953,200 |
|
|
FTI Consulting, Inc. 6.75% 10/1/20 |
|
3,715,000 |
3,965,763 |
|
|
Garda World Security Corp.: |
|
|
|
|
|
7.25% 11/15/21 (d) |
|
2,200,000 |
2,312,750 |
|
|
7.25% 11/15/21 (d) |
|
715,000 |
751,644 |
|
|
Hertz Corp.: |
|
|
|
|
|
4.25% 4/1/18 |
|
3,145,000 |
3,223,625 |
|
|
6.25% 10/15/22 |
|
5,315,000 |
5,627,256 |
|
|
The Geo Group, Inc. 5.875% 1/15/22 |
|
7,310,000 |
7,675,500 |
|
|
TransUnion Holding Co., Inc. 8.125% 6/15/18 pay-in-kind (g) |
|
4,340,000 |
4,530,960 |
|
|
|
69,187,236 |
|||
|
Shipping - 1.3% |
||||
|
Aguila 3 SA 7.875% 1/31/18 (d) |
|
4,595,000 |
4,847,725 |
|
|
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (d) |
|
4,055,000 |
4,237,475 |
|
|
Navios Maritime Holdings, Inc.: |
|
|
|
|
|
7.375% 1/15/22 (d) |
|
7,410,000 |
7,632,300 |
|
|
8.125% 2/15/19 |
|
1,465,000 |
1,540,081 |
|
|
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 7.25% 5/1/22 (d) |
|
1,575,000 |
1,638,000 |
|
|
|
19,895,581 |
|||
|
Steel - 1.6% |
||||
|
JMC Steel Group, Inc. 8.25% 3/15/18 (d) |
|
8,990,000 |
9,169,800 |
|
|
Ryerson, Inc./Joseph T Ryerson & Son, Inc.: |
|
|
|
|
|
9% 10/15/17 |
|
1,635,000 |
1,749,450 |
|
|
11.25% 10/15/18 |
|
5,515,000 |
6,149,225 |
|
|
Steel Dynamics, Inc. 6.125% 8/15/19 |
|
7,280,000 |
7,917,000 |
|
|
|
24,985,475 |
|||
|
Super Retail - 0.5% |
||||
|
Best Buy Co., Inc. 5% 8/1/18 |
|
5,280,000 |
5,544,000 |
|
|
JC Penney Corp., Inc. 7.4% 4/1/37 |
|
3,230,000 |
2,802,309 |
|
|
|
8,346,309 |
|||
|
Technology - 5.9% |
||||
|
Activision Blizzard, Inc. 5.625% 9/15/21 (d) |
|
2,440,000 |
2,629,100 |
|
|
|
||||
|
|
Principal |
Value |
||
|
ADT Corp.: |
|
|
|
|
|
4.125% 4/15/19 |
|
$ 3,790,000 |
$ 3,790,758 |
|
|
4.125% 6/15/23 |
|
1,305,000 |
1,203,863 |
|
|
6.25% 10/15/21 |
|
3,545,000 |
3,757,700 |
|
|
Advanced Micro Devices, Inc.: |
|
|
|
|
|
6.75% 3/1/19 (d) |
|
3,385,000 |
3,596,563 |
|
|
7% 7/1/24 (d) |
|
1,720,000 |
1,756,550 |
|
|
AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust 2.75% 5/15/17 (d) |
|
3,500,000 |
3,521,875 |
|
|
BMC Software Finance, Inc. 8.125% 7/15/21 (d) |
|
6,115,000 |
6,290,806 |
|
|
Boxer Parent Co., Inc. 9% 10/15/19 pay-in-kind (d)(g) |
|
2,505,000 |
2,442,375 |
|
|
Brocade Communications Systems, Inc. 4.625% 1/15/23 |
|
3,400,000 |
3,298,000 |
|
|
Compiler Finance Sub, Inc. 7% 5/1/21 (d) |
|
1,615,000 |
1,639,225 |
|
|
Infor Software Parent LLC/Infor Software Parent, Inc. 7.125% 5/1/21 pay-in-kind (d)(g) |
|
735,000 |
751,538 |
|
|
Lucent Technologies, Inc.: |
|
|
|
|
|
6.45% 3/15/29 |
|
7,815,000 |
7,736,850 |
|
|
6.5% 1/15/28 |
|
3,265,000 |
3,232,350 |
|
|
Micron Technology, Inc. 5.875% 2/15/22 (d) |
|
1,190,000 |
1,276,275 |
|
|
Nuance Communications, Inc. 5.375% 8/15/20 (d) |
|
10,783,000 |
11,160,405 |
|
|
NXP BV/NXP Funding LLC 3.75% 6/1/18 (d) |
|
12,835,000 |
12,867,088 |
|
|
Seagate HDD Cayman 4.75% 1/1/25 (d) |
|
2,430,000 |
2,411,775 |
|
|
Sungard Availability Services Capital, Inc. 8.75% 4/1/22 (d) |
|
4,745,000 |
4,412,850 |
|
|
VeriSign, Inc. 4.625% 5/1/23 |
|
3,295,000 |
3,255,131 |
|
|
Viasystems, Inc. 7.875% 5/1/19 (d) |
|
4,410,000 |
4,663,575 |
|
|
WideOpenWest Finance LLC/WideOpenWest Capital Corp.: |
|
|
|
|
|
10.25% 7/15/19 |
|
2,995,000 |
3,365,631 |
|
|
10.25% 7/15/19 (d) |
|
315,000 |
353,981 |
|
|
13.375% 10/15/19 |
|
2,705,000 |
3,131,038 |
|
|
|
92,545,302 |
|||
|
Telecommunications - 8.8% |
||||
|
Alcatel-Lucent U.S.A., Inc.: |
|
|
|
|
|
4.625% 7/1/17 (d) |
|
8,465,000 |
8,740,113 |
|
|
6.75% 11/15/20 (d) |
|
11,270,000 |
12,002,550 |
|
|
8.875% 1/1/20 (d) |
|
6,325,000 |
7,163,063 |
|
|
Altice Financing SA: |
|
|
|
|
|
6.5% 1/15/22 (d) |
|
685,000 |
729,525 |
|
|
7.875% 12/15/19 (d) |
|
4,180,000 |
4,575,010 |
|
|
Altice Finco SA 9.875% 12/15/20 (d) |
|
5,890,000 |
6,788,225 |
|
|
Columbus International, Inc. 7.375% 3/30/21 (d) |
|
5,000,000 |
5,387,500 |
|
|
Nonconvertible Bonds - continued |
||||
|
|
Principal |
Value |
||
|
Telecommunications - continued |
||||
|
Crown Castle International Corp. 4.875% 4/15/22 |
|
$ 4,740,000 |
$ 4,899,975 |
|
|
Digicel Group Ltd.: |
|
|
|
|
|
6% 4/15/21 (d) |
|
5,265,000 |
5,436,113 |
|
|
7% 2/15/20 (d) |
|
295,000 |
311,225 |
|
|
7.125% 4/1/22 (d) |
|
3,355,000 |
3,497,588 |
|
|
8.25% 9/1/17 (d) |
|
5,395,000 |
5,550,376 |
|
|
8.25% 9/30/20 (d) |
|
5,855,000 |
6,381,950 |
|
|
DigitalGlobe, Inc. 5.25% 2/1/21 |
|
9,505,000 |
9,409,950 |
|
|
FairPoint Communications, Inc. 8.75% 8/15/19 (d) |
|
4,580,000 |
4,934,950 |
|
|
Inmarsat Finance PLC 4.875% 5/15/22 (d) |
|
2,580,000 |
2,605,800 |
|
|
Level 3 Financing, Inc. 3.8229% 1/15/18 (d)(g) |
|
7,525,000 |
7,656,688 |
|
|
MasTec, Inc. 4.875% 3/15/23 |
|
2,875,000 |
2,831,875 |
|
|
SBA Communications Corp. 4.875% 7/15/22 (d)(f) |
|
3,235,000 |
3,194,563 |
|
|
Sprint Capital Corp.: |
|
|
|
|
|
6.875% 11/15/28 |
|
1,155,000 |
1,166,550 |
|
|
8.75% 3/15/32 |
|
3,650,000 |
4,215,750 |
|
|
Sprint Communications, Inc. 9% 11/15/18 (d) |
|
6,240,000 |
7,566,000 |
|
|
T-Mobile U.S.A., Inc.: |
|
|
|
|
|
5.25% 9/1/18 |
|
4,055,000 |
4,257,750 |
|
|
6.464% 4/28/19 |
|
2,610,000 |
2,747,025 |
|
|
TW Telecom Holdings, Inc.: |
|
|
|
|
|
5.375% 10/1/22 |
|
2,815,000 |
3,078,906 |
|
|
6.375% 9/1/23 |
|
1,535,000 |
1,746,063 |
|
|
Wind Acquisition Finance SA: |
|
|
|
|
|
4.75% 7/15/20 (d)(f) |
|
3,835,000 |
3,863,954 |
|
|
7.25% 2/15/18 (d) |
|
2,770,000 |
2,926,505 |
|
|
7.375% 4/23/21 (d) |
|
4,080,000 |
4,355,400 |
|
|
|
138,020,942 |
|||
|
Textiles & Apparel - 0.2% |
||||
|
The William Carter Co. 5.25% 8/15/21 (d) |
|
3,490,000 |
3,638,325 |
|
|
TOTAL NONCONVERTIBLE BONDS (Cost $1,274,868,992) |
|
|||
|
Commercial Mortgage Securities - 0.0% |
||||
|
|
||||
|
LB Multi-family Mortgage Trust Series 1991-4 Class A1, 7.125% 4/25/21 (g) |
|
9,496 |
|
|
|
Common Stocks - 0.0% |
|||
|
Shares |
Value |
||
|
Telecommunications - 0.0% |
|||
|
CUI Acquisition Corp. Class E (a)(d) |
1 |
$ 136,000 |
|
|
Nonconvertible Preferred Stocks - 0.4% |
|||
|
|
|
|
|
|
Banks & Thrifts - 0.4% |
|||
|
Royal Bank of Scotland Group PLC Series S, 6.60% |
236,106 |
|
|
|
Bank Loan Obligations - 11.0% |
||||
|
|
Principal |
|
||
|
Aerospace - 0.1% |
||||
|
TransDigm, Inc. Tranche D, term loan 3.75% 6/4/21 (g) |
|
$ 1,770,000 |
1,763,363 |
|
|
Automotive - 0.2% |
||||
|
Allison Transmission, Inc. Tranche B 3LN, term loan 3.75% 8/23/19 (g) |
|
950,225 |
950,225 |
|
|
Chrysler Group LLC term loan 3.25% 12/31/18 (g) |
|
1,960,088 |
1,964,988 |
|
|
INA Beteiligungsgesellschaft MBH Tranche E, term loan 5/15/20 (h) |
|
750,000 |
752,813 |
|
|
|
3,668,026 |
|||
|
Broadcasting - 0.6% |
||||
|
Clear Channel Communications, Inc. Tranche D, term loan 6.8995% 1/30/19 (g) |
|
9,165,000 |
9,119,175 |
|
|
Univision Communications, Inc. Tranche C 4LN, term loan 4% 3/1/20 (g) |
|
985,050 |
985,050 |
|
|
|
10,104,225 |
|||
|
Building Materials - 0.4% |
||||
|
GYP Holdings III Corp.: |
|
|
|
|
|
Tranche 1LN, term loan 4.75% 4/1/21 (g) |
|
3,120,000 |
3,104,712 |
|
|
Tranche 2LN, term loan 7.75% 4/1/22 (g) |
|
625,000 |
629,688 |
|
|
Nortek, Inc. Tranche B, term loan 3.75% 10/30/20 (g) |
|
2,110,000 |
2,112,638 |
|
|
|
5,847,038 |
|||
|
Cable TV - 0.4% |
||||
|
Charter Communications Operating LLC Tranche F, term loan 3% 1/3/21 (g) |
|
3,860,752 |
3,812,492 |
|
|
Numericable LLC: |
|
|
|
|
|
Tranche B 1LN, term loan 4.5% 5/8/20 (g) |
|
1,340,385 |
1,348,762 |
|
|
Tranche B 2LN, term loan 4.5% 5/8/20 (g) |
|
1,159,615 |
1,166,863 |
|
|
|
6,328,117 |
|||
|
Bank Loan Obligations - continued |
||||
|
|
Principal |
Value |
||
|
Capital Goods - 0.4% |
||||
|
Husky Injection Molding Systems Ltd.: |
|
|
|
|
|
Tranche 1LN, term loan 6/30/21 (h) |
|
$ 4,125,000 |
$ 4,140,469 |
|
|
Tranche 2LN, term loan 6/30/22 (h) |
|
1,585,000 |
1,590,944 |
|
|
|
5,731,413 |
|||
|
Containers - 0.5% |
||||
|
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (g) |
|
1,561,088 |
1,555,233 |
|
|
Signode Packaging Systems, Inc. Tranche B, term loan 4% 5/1/21 (g) |
|
6,380,000 |
6,348,100 |
|
|
|
7,903,333 |
|||
|
Diversified Financial Services - 0.8% |
||||
|
Delos Finance SARL Tranche B LN, term loan 3.5% 3/6/21 (g) |
|
2,400,000 |
2,400,000 |
|
|
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (g) |
|
5,650,000 |
5,812,438 |
|
|
TransUnion LLC Tranche B, term loan 4% 4/9/21 (g) |
|
4,124,663 |
4,124,663 |
|
|
|
12,337,101 |
|||
|
Electric Utilities - 0.1% |
||||
|
Bayonne Energy Center, LLC Tranche B, term loan 6/30/21 (h) |
|
590,000 |
594,425 |
|
|
Southwire LLC, Tranche B, term loan 3.2538% 2/10/21 (g) |
|
1,321,688 |
1,318,383 |
|
|
|
1,912,808 |
|||
|
Energy - 0.9% |
||||
|
Energy Transfer Equity LP Tranche B, term loan 3.25% 12/2/19 (g) |
|
3,645,000 |
3,605,379 |
|
|
Fieldwood Energy, LLC: |
|
|
|
|
|
Tranche 2LN, term loan 8.375% 9/30/20 (g) |
|
5,774,951 |
5,962,637 |
|
|
Tranche B 1LN, term loan 3.875% 9/30/18 (g) |
|
591,111 |
592,589 |
|
|
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (g) |
|
4,175,035 |
4,159,379 |
|
|
|
14,319,984 |
|||
|
Food & Drug Retail - 0.1% |
||||
|
SUPERVALU, Inc. Tranche B, term loan 4.5% 3/21/19 (g) |
|
892,260 |
891,145 |
|
|
Gaming - 0.1% |
||||
|
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 6.25% 5/8/21 (g) |
|
600,000 |
598,500 |
|
|
Golden Nugget, Inc. Tranche B, term loan: |
|
|
|
|
|
5.5% 11/21/19 (g) |
|
337,803 |
344,559 |
|
|
|
||||
|
|
Principal |
Value |
||
|
5.5% 11/21/19 (g) |
|
$ 144,773 |
$ 147,668 |
|
|
Las Vegas Sands LLC Tranche B, term loan 3.25% 12/19/20 (g) |
|
1,004,950 |
1,004,950 |
|
|
|
2,095,677 |
|||
|
Healthcare - 1.1% |
||||
|
Endo Luxembourg Finance I Comp Tranche B, term loan 3.25% 2/28/21 (g) |
|
3,725,663 |
3,716,348 |
|
|
Grifols, S.A. Tranche B, term loan 3.1495% 2/27/21 (g) |
|
6,299,213 |
6,299,213 |
|
|
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (g) |
|
2,081,636 |
2,073,830 |
|
|
Pharmedium Healthcare Corp.: |
|
|
|
|
|
Tranche 2LN, term loan 7.75% 1/28/22 (g) |
|
1,885,000 |
1,903,850 |
|
|
Tranche B 1LN, term loan 4.25% 1/28/21 (g) |
|
3,340,538 |
3,353,065 |
|
|
|
17,346,306 |
|||
|
Hotels - 0.1% |
||||
|
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (g) |
|
1,135,048 |
1,135,048 |
|
|
Insurance - 0.3% |
||||
|
StoneRiver Group LP: |
|
|
|
|
|
Tranche 2LN, term loan 8.5% 5/30/20 (g) |
|
4,213,620 |
4,203,086 |
|
|
Tranche B 1LN, term loan 4.5% 11/30/19 (g) |
|
1,248,385 |
1,246,887 |
|
|
|
5,449,973 |
|||
|
Leisure - 0.1% |
||||
|
24 Hour Fitness Worldwide, Inc. Tranche B, term loan 4.75% 5/30/21 (g) |
|
325,000 |
327,844 |
|
|
Equinox Holdings, Inc. Tranche B 1LN, term loan 4.25% 2/1/20 (g) |
|
987,813 |
992,753 |
|
|
|
1,320,597 |
|||
|
Metals/Mining - 0.5% |
||||
|
Fortescue Metals Group Ltd. Tranche B, term loan 3.75% 6/30/19 (g) |
|
2,416,738 |
2,410,696 |
|
|
Peabody Energy Corp. Tranche B, term loan 4.25% 9/24/20 (g) |
|
5,414,088 |
5,454,693 |
|
|
|
7,865,389 |
|||
|
Publishing/Printing - 0.4% |
||||
|
ARC Document Solutions, Inc. Tranche B, term loan 6.25% 12/20/18 (g) |
|
6,876,563 |
6,988,307 |
|
|
Restaurants - 0.5% |
||||
|
Dunkin Brands, Inc. Tranche B 4LN, term loan 3.25% 2/7/21 (g) |
|
7,318,367 |
7,245,183 |
|
|
Bank Loan Obligations - continued |
||||
|
|
Principal |
Value |
||
|
Restaurants - continued |
||||
|
TGI Friday's, Inc.: |
|
|
|
|
|
Tranche B 1LN, term loan 6/30/20 (h) |
|
$ 590,000 |
$ 590,738 |
|
|
Tranche B 2LN, term loan 6/30/21 (h) |
|
660,000 |
650,100 |
|
|
|
8,486,021 |
|||
|
Services - 1.0% |
||||
|
ARAMARK Corp. Tranche F, term loan 3.25% 2/24/21 (g) |
|
2,518,688 |
2,493,501 |
|
|
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 4.75% 11/26/20 (g) |
|
4,497,400 |
4,519,887 |
|
|
Garda World Security Corp.: |
|
|
|
|
|
term loan 4% 11/8/20 (g) |
|
2,519,561 |
2,519,561 |
|
|
Tranche DD, term loan 4% 11/8/20 (g) |
|
644,539 |
644,539 |
|
|
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (g) |
|
3,635,000 |
3,571,388 |
|
|
Lineage Logistics Holdings, LLC. Tranche B, term loan 4.5% 4/7/21 (g) |
|
1,625,925 |
1,617,795 |
|
|
|
15,366,671 |
|||
|
Shipping - 0.1% |
||||
|
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (g) |
|
1,228,825 |
1,228,825 |
|
|
Steel - 0.2% |
||||
|
Atkore International, Inc.: |
|
|
|
|
|
Tranche 2LN, term loan 7.75% 10/9/21 (g) |
|
1,020,000 |
1,030,200 |
|
|
Tranche B 1LN, term loan 4.5% 4/9/21 (g) |
|
1,835,000 |
1,841,881 |
|
|
|
2,872,081 |
|||
|
Super Retail - 0.2% |
||||
|
JC Penney Corp., Inc. Tranche B, term loan: |
|
|
|
|
|
5% 6/20/19 (g) |
|
175,000 |
175,665 |
|
|
6% 5/22/18 (g) |
|
3,092,191 |
3,119,248 |
|
|
|
3,294,913 |
|||
|
Technology - 1.5% |
||||
|
DealerTrack Holdings, Inc. Tranche B LN, term loan 3.5% 2/28/21 (g) |
|
3,620,513 |
3,615,987 |
|
|
Dell International LLC Tranche B, term loan 4.5% 4/29/20 (g) |
|
2,572,075 |
2,581,849 |
|
|
First Data Corp. term loan 4.154% 3/24/18 (g) |
|
6,685,000 |
6,693,356 |
|
|
Freescale Semiconductor, Inc. Tranche B 4LN, term loan 4.25% 3/1/20 (g) |
|
1,559,250 |
1,557,301 |
|
|
Infor U.S., Inc. Tranche B 5LN, term loan 3.75% 6/3/20 (g) |
|
855,700 |
848,255 |
|
|
|
||||
|
|
Principal |
Value |
||
|
NXP BV Tranche D, term loan 3.25% 1/11/20 (g) |
|
$ 3,632,550 |
$ 3,609,847 |
|
|
Sungard Availability Services Capital, Inc. Tranche B, term loan 6% 3/31/19 (g) |
|
4,668,300 |
4,627,452 |
|
|
|
23,534,047 |
|||
|
Telecommunications - 0.4% |
||||
|
Alcatel-Lucent U.S.A., Inc. Tranche C 1LN, term loan 4.5% 1/30/19 (g) |
|
6,460,806 |
6,460,806 |
|
|
TOTAL BANK LOAN OBLIGATIONS (Cost $173,111,967) |
|
|||
|
Preferred Securities - 1.2% |
||||
|
|
||||
|
Banks & Thrifts - 1.2% |
||||
|
Barclays Bank PLC 7.625% 11/21/22 |
|
15,315,000 |
17,612,138 |
|
|
Barclays PLC 8.25% (e)(g) |
|
1,660,000 |
1,765,554 |
|
|
TOTAL PREFERRED SECURITIES (Cost $17,454,194) |
|
|||
|
Money Market Funds - 3.4% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.11% (b) |
53,167,314 |
|
|
|
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $1,525,616,205) |
1,580,900,229 |
||
|
NET OTHER ASSETS (LIABILITIES) - (0.3)% |
(5,141,103) |
||
|
NET ASSETS - 100% |
$ 1,575,759,126 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
|
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $604,624,350 or 38.4% of net assets. |
|
(e) Security is perpetual in nature with no stated maturity date. |
|
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
|
(h) The coupon rate will be determined upon settlement of the loan after period end. |
|
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 |
$ 27,947 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Financials |
$ 5,796,402 |
$ 5,796,402 |
$ - |
$ - |
|
Telecommunication Services |
136,000 |
- |
- |
136,000 |
|
Corporate Bonds |
1,328,164,960 |
- |
1,328,164,960 |
- |
|
Commercial Mortgage Securities |
6,647 |
- |
- |
6,647 |
|
Bank Loan Obligations |
174,251,214 |
- |
174,251,214 |
- |
|
Preferred Securities |
19,377,692 |
- |
19,377,692 |
- |
|
Money Market Funds |
53,167,314 |
53,167,314 |
- |
- |
|
Total Investments in Securities: |
$ 1,580,900,229 |
$ 58,963,716 |
$ 1,521,793,866 |
$ 142,647 |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
78.0% |
|
Luxembourg |
4.5% |
|
Canada |
3.3% |
|
Bermuda |
2.4% |
|
United Kingdom |
2.1% |
|
Netherlands |
2.0% |
|
Cayman Islands |
1.4% |
|
Austria |
1.3% |
|
Marshall Islands |
1.3% |
|
Ireland |
1.2% |
|
Others (Individually Less Than 1%) |
2.5% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,472,448,891) |
$ 1,527,732,915 |
|
|
Fidelity Central Funds (cost $53,167,314) |
53,167,314 |
|
|
Total Investments (cost $1,525,616,205) |
|
$ 1,580,900,229 |
|
Cash |
|
121,752 |
|
Receivable for investments sold |
|
10,549,686 |
|
Receivable for fund shares sold |
|
714,715 |
|
Interest receivable |
|
21,053,415 |
|
Distributions receivable from Fidelity Central Funds |
|
3,818 |
|
Other receivables |
|
137,473 |
|
Total assets |
|
1,613,481,088 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 16,595,012 |
|
|
Delayed delivery |
15,452,817 |
|
|
Payable for fund shares redeemed |
4,672,392 |
|
|
Accrued management fee |
738,656 |
|
|
Distribution and service plan fees payable |
63,211 |
|
|
Other affiliated payables |
150,533 |
|
|
Other payables and accrued expenses |
49,341 |
|
|
Total liabilities |
|
37,721,962 |
|
|
|
|
|
Net Assets |
|
$ 1,575,759,126 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 1,521,529,831 |
|
Undistributed net investment income |
|
41,644,356 |
|
Accumulated undistributed net realized gain (loss) on investments |
|
(42,699,085) |
|
Net unrealized appreciation (depreciation) on investments |
|
55,284,024 |
|
Net Assets |
|
$ 1,575,759,126 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 6.09 |
|
|
|
|
|
Service Class: |
|
$ 6.05 |
|
|
|
|
|
Service Class 2: |
|
$ 5.91 |
|
|
|
|
|
Initial Class R: |
|
$ 6.06 |
|
|
|
|
|
Service Class R: |
|
$ 6.01 |
|
|
|
|
|
Service Class 2R: |
|
$ 5.90 |
|
|
|
|
|
Investor Class: |
|
$ 6.06 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 682,872 |
|
Interest |
|
45,506,318 |
|
Income from Fidelity Central Funds |
|
27,947 |
|
Total income |
|
46,217,137 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 4,399,407 |
|
|
Transfer agent fees |
639,387 |
|
|
Distribution and service plan fees |
404,388 |
|
|
Accounting fees and expenses |
264,343 |
|
|
Custodian fees and expenses |
14,779 |
|
|
Independent trustees' compensation |
3,220 |
|
|
Audit |
46,099 |
|
|
Legal |
11,569 |
|
|
Miscellaneous |
6,716 |
|
|
Total expenses before reductions |
5,789,908 |
|
|
Expense reductions |
(712) |
5,789,196 |
|
Net investment income (loss) |
|
40,427,941 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
|
16,571,647 |
|
Change in net unrealized appreciation (depreciation) on investment securities |
|
16,229,368 |
|
Net gain (loss) |
|
32,801,015 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 73,228,956 |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 40,427,941 |
$ 80,845,745 |
|
Net realized gain (loss) |
16,571,647 |
46,584,559 |
|
Change in net unrealized appreciation (depreciation) |
16,229,368 |
(41,731,572) |
|
Net increase (decrease) in net assets resulting from operations |
73,228,956 |
85,698,732 |
|
Distributions to shareholders from net investment income |
- |
(86,921,876) |
|
Share transactions - net increase (decrease) |
(25,852,412) |
16,318,361 |
|
Redemption fees |
2,696 |
28,583 |
|
Total increase (decrease) in net assets |
47,379,240 |
15,123,800 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
1,528,379,886 |
1,513,256,086 |
|
End of period (including undistributed net investment income of $41,644,356 and undistributed net investment income of $1,216,415, respectively) |
$ 1,575,759,126 |
$ 1,528,379,886 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.80 |
$ 5.81 |
$ 5.39 |
$ 5.57 |
$ 5.29 |
$ 3.96 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss)E |
.155 |
.330 |
.361 |
.391 |
.439 |
.438 |
|
Net realized and unrealized gain (loss) |
.135 |
.014 |
.405 |
(.171) |
.288 |
1.298 |
|
Total from investment operations |
.290 |
.344 |
.766 |
.220 |
.727 |
1.736 |
|
Distributions from net investment income |
- |
(.354) |
(.346) |
(.400) |
(.448) |
(.406) |
|
Redemption fees added to paid in capitalE |
-I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.09 |
$ 5.80 |
$ 5.81 |
$ 5.39 |
$ 5.57 |
$ 5.29 |
|
Total ReturnB, C, D |
5.00% |
5.95% |
14.23% |
4.03% |
13.82% |
43.96% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.68% |
.68% |
.69% |
.69% |
.70% |
|
Expenses net of fee waivers, if any |
.68%A |
.68% |
.68% |
.69% |
.69% |
.70% |
|
Expenses net of all reductions |
.68%A |
.68% |
.68% |
.69% |
.69% |
.70% |
|
Net investment income (loss) |
5.27%A |
5.55% |
6.22% |
6.85% |
7.84% |
9.02% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 593,973 |
$ 587,376 |
$ 606,506 |
$ 561,514 |
$ 594,688 |
$ 608,802 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.77 |
$ 5.78 |
$ 5.36 |
$ 5.54 |
$ 5.26 |
$ 3.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.152 |
.323 |
.353 |
.384 |
.431 |
.429 |
|
Net realized and unrealized gain (loss) |
.128 |
.015 |
.407 |
(.171) |
.290 |
1.281 |
|
Total from investment operations |
.280 |
.338 |
.760 |
.213 |
.721 |
1.710 |
|
Distributions from net investment income |
- |
(.348) |
(.340) |
(.393) |
(.442) |
(.400) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.05 |
$ 5.77 |
$ 5.78 |
$ 5.36 |
$ 5.54 |
$ 5.26 |
|
Total ReturnB, C, D |
4.85% |
5.87% |
14.20% |
3.93% |
13.79% |
43.41% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.78%A |
.78% |
.78% |
.79% |
.79% |
.80% |
|
Expenses net of fee waivers, if any |
.78%A |
.77% |
.78% |
.79% |
.78% |
.80% |
|
Expenses net of all reductions |
.78%A |
.77% |
.78% |
.79% |
.78% |
.80% |
|
Net investment income (loss) |
5.17%A |
5.46% |
6.13% |
6.75% |
7.74% |
8.92% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 67,042 |
$ 68,982 |
$ 77,397 |
$ 91,573 |
$ 98,988 |
$ 103,511 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.64 |
$ 5.66 |
$ 5.26 |
$ 5.45 |
$ 5.18 |
$ 3.89 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.144 |
.307 |
.338 |
.368 |
.417 |
.422 |
|
Net realized and unrealized gain (loss) |
.126 |
.014 |
.396 |
(.170) |
.287 |
1.264 |
|
Total from investment operations |
.270 |
.321 |
.734 |
.198 |
.704 |
1.686 |
|
Distributions from net investment income |
- |
(.341) |
(.334) |
(.388) |
(.435) |
(.396) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 5.91 |
$ 5.64 |
$ 5.66 |
$ 5.26 |
$ 5.45 |
$ 5.18 |
|
Total ReturnB, C, D |
4.79% |
5.70% |
13.97% |
3.72% |
13.67% |
43.46% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.93%A |
.93% |
.93% |
.94% |
.94% |
.95% |
|
Expenses net of fee waivers, if any |
.93%A |
.92% |
.93% |
.94% |
.94% |
.95% |
|
Expenses net of all reductions |
.93%A |
.92% |
.93% |
.94% |
.94% |
.95% |
|
Net investment income (loss) |
5.01%A |
5.31% |
5.98% |
6.60% |
7.59% |
8.77% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 247,599 |
$ 280,444 |
$ 281,065 |
$ 220,333 |
$ 182,465 |
$ 181,377 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.55 |
$ 5.27 |
$ 3.95 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.155 |
.330 |
.360 |
.391 |
.439 |
.440 |
|
Net realized and unrealized gain (loss) |
.125 |
.014 |
.407 |
(.171) |
.288 |
1.286 |
|
Total from investment operations |
.280 |
.344 |
.767 |
.220 |
.727 |
1.726 |
|
Distributions from net investment income |
- |
(.354) |
(.347) |
(.400) |
(.448) |
(.406) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.06 |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.55 |
$ 5.27 |
|
Total ReturnB, C, D |
4.84% |
5.97% |
14.30% |
4.05% |
13.88% |
43.82% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.68%A |
.68% |
.68% |
.68% |
.69% |
.70% |
|
Expenses net of fee waivers, if any |
.68%A |
.67% |
.68% |
.68% |
.68% |
.70% |
|
Expenses net of all reductions |
.68%A |
.67% |
.68% |
.68% |
.68% |
.69% |
|
Net investment income (loss) |
5.27%A |
5.56% |
6.23% |
6.85% |
7.84% |
9.02% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 30,027 |
$ 29,558 |
$ 35,605 |
$ 31,627 |
$ 34,946 |
$ 34,080 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.74 |
$ 5.75 |
$ 5.34 |
$ 5.52 |
$ 5.25 |
$ 3.94 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss)E |
.151 |
.321 |
.352 |
.383 |
.433 |
.431 |
|
Net realized and unrealized gain (loss) |
.119 |
.018 |
.400 |
(.167) |
.280 |
1.280 |
|
Total from investment operations |
.270 |
.339 |
.752 |
.216 |
.713 |
1.711 |
|
Distributions from net investment income |
- |
(.349) |
(.342) |
(.396) |
(.444) |
(.401) |
|
Redemption fees added to paid in capitalE |
-I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 6.01 |
$ 5.74 |
$ 5.75 |
$ 5.34 |
$ 5.52 |
$ 5.25 |
|
Total ReturnB, C, D |
4.70% |
5.92% |
14.10% |
3.99% |
13.66% |
43.56% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.78%A |
.78% |
.78% |
.78% |
.79% |
.80% |
|
Expenses net of fee waivers, if any |
.78%A |
.77% |
.78% |
.78% |
.78% |
.80% |
|
Expenses net of all reductions |
.78%A |
.77% |
.78% |
.78% |
.78% |
.80% |
|
Net investment income (loss) |
5.17%A |
5.46% |
6.13% |
6.75% |
7.74% |
8.92% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 59,916 |
$ 58,042 |
$ 69,893 |
$ 63,557 |
$ 68,806 |
$ 47,873 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.64 |
$ 5.65 |
$ 5.26 |
$ 5.45 |
$ 5.17 |
$ 3.89 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.144 |
.307 |
.340 |
.369 |
.415 |
.416 |
|
Net realized and unrealized gain (loss) |
.116 |
.023 |
.390 |
(.175) |
.293 |
1.257 |
|
Total from investment operations |
.260 |
.330 |
.730 |
.194 |
.708 |
1.673 |
|
Distributions from net investment income |
- |
(.340) |
(.340) |
(.384) |
(.429) |
(.393) |
|
Redemption fees added to paid in capital E |
- I |
-I |
-I |
-I |
.001 |
-I |
|
Net asset value, end of period |
$ 5.90 |
$ 5.64 |
$ 5.65 |
$ 5.26 |
$ 5.45 |
$ 5.17 |
|
Total ReturnB, C, D |
4.61% |
5.87% |
13.90% |
3.64% |
13.79% |
43.13% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.93%A |
.93% |
.93% |
.93% |
.94% |
.95% |
|
Expenses net of fee waivers, if any |
.93%A |
.92% |
.93% |
.93% |
.93% |
.95% |
|
Expenses net of all reductions |
.93%A |
.92% |
.93% |
.93% |
.93% |
.94% |
|
Net investment income (loss) |
5.02%A |
5.31% |
5.98% |
6.60% |
7.59% |
8.77% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 5,473 |
$ 4,348 |
$ 4,019 |
$ 1,350 |
$ 1,543 |
$ 2,016 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months
ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.56 |
$ 5.27 |
$ 3.96 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.154 |
.327 |
.358 |
.388 |
.437 |
.441 |
|
Net realized and unrealized gain (loss) |
.126 |
.016 |
.407 |
(.180) |
.298 |
1.274 |
|
Total from investment operations |
.280 |
.343 |
.765 |
.208 |
.735 |
1.715 |
|
Distributions from net investment income |
- |
(.353) |
(.345) |
(.398) |
(.446) |
(.405) |
|
Redemption fees added to paid in capitalE |
- I |
- I |
- I |
- I |
.001 |
- I |
|
Net asset value, end of period |
$ 6.06 |
$ 5.78 |
$ 5.79 |
$ 5.37 |
$ 5.56 |
$ 5.27 |
|
Total ReturnB, C, D |
4.84% |
5.95% |
14.26% |
3.82% |
14.04% |
43.43% |
|
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
|
Expenses before reductions |
.71%A |
.71% |
.71% |
.72% |
.73% |
.73% |
|
Expenses net of fee waivers, if any |
.71%A |
.71% |
.71% |
.72% |
.72% |
.73% |
|
Expenses net of all reductions |
.71%A |
.71% |
.71% |
.72% |
.72% |
.73% |
|
Net investment income (loss) |
5.23%A |
5.52% |
6.20% |
6.82% |
7.81% |
8.99% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 571,728 |
$ 499,630 |
$ 438,772 |
$ 284,370 |
$ 244,738 |
$ 182,806 |
|
Portfolio turnover rateG |
88%A |
85% |
55% |
79% |
81% |
70% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP High Income Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Initial Class R shares, Service Class R shares, Service Class 2R shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, 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 may 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. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 59,891,397 |
|
Gross unrealized depreciation |
(3,274,562) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 56,616,835 |
|
|
|
|
Tax cost |
$ 1,524,283,394 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2017 |
$ (58,936,967) |
Trading (Redemption) Fees. Initial Class R shares, Service Class R shares and Service Class 2R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $693,723,735 and $656,051,187, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 33,804 |
|
Service Class 2 |
335,152 |
|
Service Class R |
29,673 |
|
Service Class 2 R |
5,759 |
|
|
$ 404,388 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.10% for Investor Class) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 209,711 |
|
Service Class |
23,752 |
|
Service Class 2 |
93,470 |
|
Initial Class R |
10,106 |
|
Service Class R |
20,194 |
|
Service Class 2R |
1,567 |
|
Investor Class |
280,587 |
|
|
$ 639,387 |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,410 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $712.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 33,473,820 |
|
Service Class |
- |
3,969,791 |
|
Service Class 2 |
- |
16,115,842 |
|
Initial Class R |
- |
1,722,419 |
|
Service Class R |
- |
3,349,920 |
|
Service Class 2R |
- |
230,462 |
|
Investor Class |
- |
28,059,622 |
|
Total |
$ - |
$ 86,921,876 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Six months ended |
Year ended |
Six months ended |
Year ended |
|
Initial Class |
|
|
|
|
|
Shares sold |
5,135,576 |
14,039,906 |
$ 30,535,505 |
$ 83,416,151 |
|
Reinvestment of distributions |
- |
5,790,037 |
- |
33,473,820 |
|
Shares redeemed |
(8,717,004) |
(23,058,485) |
(51,764,852) |
(136,983,639) |
|
Net increase (decrease) |
(3,581,428) |
(3,228,542) |
$ (21,229,347) |
$ (20,093,668) |
|
Service Class |
|
|
|
|
|
Shares sold |
154,718 |
929,486 |
$ 917,055 |
$ 5,521,007 |
|
Reinvestment of distributions |
- |
690,233 |
- |
3,969,791 |
|
Shares redeemed |
(1,021,066) |
(3,064,824) |
(6,019,674) |
(18,085,383) |
|
Net increase (decrease) |
(866,348) |
(1,445,105) |
$ (5,102,619) |
$ (8,594,585) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
4,283,437 |
20,103,362 |
$ 24,787,533 |
$ 116,574,992 |
|
Reinvestment of distributions |
- |
2,866,946 |
- |
16,115,842 |
|
Shares redeemed |
(12,076,406) |
(22,951,503) |
(69,884,631) |
(132,172,105) |
|
Net increase (decrease) |
(7,792,969) |
18,805 |
$ (45,097,098) |
$ 518,729 |
|
Initial Class R |
|
|
|
|
|
Shares sold |
187,809 |
852,998 |
$ 1,113,381 |
$ 5,061,609 |
|
Reinvestment of distributions |
- |
298,955 |
- |
1,722,419 |
|
Shares redeemed |
(346,271) |
(2,192,612) |
(2,044,567) |
(12,973,240) |
|
Net increase (decrease) |
(158,462) |
(1,040,659) |
$ (931,186) |
$ (6,189,212) |
|
Service Class R |
|
|
|
|
|
Shares sold |
302,302 |
5,190,571 |
$ 1,768,937 |
$ 30,731,567 |
|
Reinvestment of distributions |
- |
585,519 |
- |
3,349,920 |
|
Shares redeemed |
(452,284) |
(7,823,949) |
(2,663,456) |
(46,022,233) |
|
Net increase (decrease) |
(149,982) |
(2,047,859) |
$ (894,519) |
$ (11,940,746) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
389,193 |
995,220 |
$ 2,251,939 |
$ 5,809,165 |
|
Reinvestment of distributions |
- |
40,999 |
- |
230,462 |
|
Shares redeemed |
(233,183) |
(976,234) |
(1,329,887) |
(5,617,855) |
|
Net increase (decrease) |
156,010 |
59,985 |
$ 922,052 |
$ 421,772 |
|
Investor Class |
|
|
|
|
|
Shares sold |
10,936,048 |
25,574,430 |
$ 64,457,540 |
$ 151,658,997 |
|
Reinvestment of distributions |
- |
4,870,500 |
- |
28,059,622 |
|
Shares redeemed |
(3,012,061) |
(19,845,132) |
(17,977,235) |
(117,522,548) |
|
Net increase (decrease) |
7,923,987 |
10,599,798 |
$ 46,480,305 |
$ 62,196,071 |
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, the investment adviser or its affiliates were the owners of record of 42% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 15% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
VIPHIR-SANN-0814 1.833449.108
Fidelity® Variable Insurance Products:
Equity-Income Portfolio
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.54% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,078.70 |
$ 2.78 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.12 |
$ 2.71 |
|
Service Class |
.64% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,078.10 |
$ 3.30 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.62 |
$ 3.21 |
|
Service Class 2 |
.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,077.50 |
$ 4.07 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.88 |
$ 3.96 |
|
Service Class 2R |
.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,077.10 |
$ 4.07 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.88 |
$ 3.96 |
|
Investor Class |
.62% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,078.50 |
$ 3.20 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.72 |
$ 3.11 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Top Ten Stocks as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
JPMorgan Chase & Co. |
4.0 |
4.1 |
|
Chevron Corp. |
3.1 |
3.0 |
|
Cisco Systems, Inc. |
2.5 |
2.3 |
|
MetLife, Inc. |
2.4 |
2.4 |
|
General Electric Co. |
2.3 |
2.7 |
|
Johnson & Johnson |
2.1 |
1.9 |
|
Procter & Gamble Co. |
2.0 |
2.1 |
|
Wells Fargo & Co. |
1.8 |
3.1 |
|
Exxon Mobil Corp. |
1.8 |
2.6 |
|
Verizon Communications, Inc. |
1.8 |
1.4 |
|
|
23.8 |
|
|
Top Five Market Sectors as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Financials |
24.3 |
22.2 |
|
Energy |
15.5 |
14.2 |
|
Information Technology |
12.7 |
11.9 |
|
Consumer Staples |
10.2 |
9.4 |
|
Industrials |
9.5 |
10.5 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of June 30, 2014* |
As of December 31, 2013** |
||||||
|
Stocks 93.4% |
|
|
Stocks 94.6% |
|
||
|
Bonds 3.6% |
|
|
Bonds 3.1% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
Other Investments 0.0%† |
|
|
Other Investments 0.1% |
|
||
|
* Foreign investments |
10.5% |
|
** Foreign investments |
12.2% |
|
||
|
* Written options |
(0.1)% |
|
** Written options |
(0.1)% |
|
||
† Amount represents less than 0.1%.
Semiannual Report
Showing Percentage of Net Assets
|
Common Stocks - 91.8% |
|||
|
Shares |
Value |
||
|
CONSUMER DISCRETIONARY - 6.8% |
|||
|
Auto Components - 0.2% |
|||
|
Gentex Corp. |
492,457 |
$ 14,325,574 |
|
|
Hotels, Restaurants & Leisure - 2.1% |
|||
|
Darden Restaurants, Inc. |
588,999 |
27,252,984 |
|
|
McDonald's Corp. (i) |
621,000 |
62,559,540 |
|
|
Texas Roadhouse, Inc. Class A |
550,397 |
14,310,322 |
|
|
Yum! Brands, Inc. (i) |
391,100 |
31,757,320 |
|
|
|
135,880,166 |
||
|
Leisure Products - 0.3% |
|||
|
New Academy Holding Co. LLC unit (a)(j)(k) |
127,200 |
15,325,056 |
|
|
Media - 1.7% |
|||
|
Comcast Corp. Class A |
1,607,743 |
86,303,644 |
|
|
Sinclair Broadcast Group, Inc. Class A |
766,104 |
26,622,114 |
|
|
|
112,925,758 |
||
|
Multiline Retail - 1.7% |
|||
|
Kohl's Corp. |
702,275 |
36,995,847 |
|
|
Target Corp. |
1,322,160 |
76,619,172 |
|
|
|
113,615,019 |
||
|
Specialty Retail - 0.8% |
|||
|
Abercrombie & Fitch Co. Class A (e) |
381,419 |
16,496,372 |
|
|
Foot Locker, Inc. |
344,485 |
17,472,279 |
|
|
PetSmart, Inc. (e) |
162,600 |
9,723,480 |
|
|
Staples, Inc. |
944,036 |
10,233,350 |
|
|
|
53,925,481 |
||
|
TOTAL CONSUMER DISCRETIONARY |
445,997,054 |
||
|
CONSUMER STAPLES - 10.1% |
|||
|
Beverages - 2.1% |
|||
|
Molson Coors Brewing Co. Class B |
419,800 |
31,132,368 |
|
|
PepsiCo, Inc. |
290,057 |
25,913,692 |
|
|
The Coca-Cola Co. |
1,877,541 |
79,532,637 |
|
|
|
136,578,697 |
||
|
Food & Staples Retailing - 1.5% |
|||
|
CVS Caremark Corp. |
474,300 |
35,747,991 |
|
|
Wal-Mart Stores, Inc. |
400,578 |
30,071,390 |
|
|
Walgreen Co. |
426,007 |
31,579,899 |
|
|
|
97,399,280 |
||
|
Food Products - 0.8% |
|||
|
B&G Foods, Inc. Class A |
181,113 |
5,920,584 |
|
|
Kellogg Co. |
737,857 |
48,477,205 |
|
|
|
54,397,789 |
||
|
Household Products - 2.0% |
|||
|
Procter & Gamble Co. |
1,677,919 |
131,867,654 |
|
|
Tobacco - 3.7% |
|||
|
Altria Group, Inc. (i) |
1,774,896 |
74,439,138 |
|
|
British American Tobacco PLC sponsored ADR |
258,117 |
30,736,572 |
|
|
|
|||
|
Shares |
Value |
||
|
Japan Tobacco, Inc. |
98,500 |
$ 3,591,518 |
|
|
Lorillard, Inc. |
1,165,715 |
71,073,644 |
|
|
Philip Morris International, Inc. (i) |
413,484 |
34,860,836 |
|
|
Reynolds American, Inc. |
557,300 |
33,633,055 |
|
|
|
248,334,763 |
||
|
TOTAL CONSUMER STAPLES |
668,578,183 |
||
|
ENERGY - 15.0% |
|||
|
Energy Equipment & Services - 1.8% |
|||
|
Ensco PLC Class A |
496,176 |
27,572,500 |
|
|
National Oilwell Varco, Inc. |
363,706 |
29,951,189 |
|
|
Noble Corp. |
796,165 |
26,719,297 |
|
|
Schlumberger Ltd. |
312,302 |
36,836,021 |
|
|
|
121,079,007 |
||
|
Oil, Gas & Consumable Fuels - 13.2% |
|||
|
Access Midstream Partners LP |
232,400 |
14,769,020 |
|
|
Anadarko Petroleum Corp. |
320,786 |
35,116,443 |
|
|
Apache Corp. |
548,868 |
55,227,098 |
|
|
Cameco Corp. (e) |
472,100 |
9,260,159 |
|
|
Canadian Natural Resources Ltd. (e) |
921,500 |
42,342,107 |
|
|
Chevron Corp. |
1,551,180 |
202,506,549 |
|
|
CONSOL Energy, Inc. |
642,535 |
29,601,587 |
|
|
EV Energy Partners LP |
600,024 |
23,772,951 |
|
|
Exxon Mobil Corp. |
1,166,669 |
117,460,235 |
|
|
Foresight Energy LP |
227,800 |
4,624,340 |
|
|
Gazprom OAO sponsored ADR (Reg. S) |
349,500 |
3,045,893 |
|
|
Holly Energy Partners LP |
302,944 |
10,418,244 |
|
|
HollyFrontier Corp. |
152,485 |
6,662,070 |
|
|
Imperial Oil Ltd. |
330,100 |
17,395,176 |
|
|
Legacy Reserves LP |
303,301 |
9,475,123 |
|
|
Markwest Energy Partners LP |
664,329 |
47,552,670 |
|
|
Occidental Petroleum Corp. |
399,187 |
40,968,562 |
|
|
Royal Dutch Shell PLC Class A sponsored ADR |
363,029 |
29,902,699 |
|
|
Scorpio Tankers, Inc. |
327,173 |
3,327,349 |
|
|
Suncor Energy, Inc. |
1,240,500 |
52,896,069 |
|
|
The Williams Companies, Inc. |
1,783,249 |
103,802,924 |
|
|
Williams Partners LP |
155,800 |
8,458,382 |
|
|
|
868,585,650 |
||
|
TOTAL ENERGY |
989,664,657 |
||
|
FINANCIALS - 23.2% |
|||
|
Banks - 9.5% |
|||
|
Bank of America Corp. |
690,800 |
10,617,596 |
|
|
CIT Group, Inc. (i) |
187,438 |
8,577,163 |
|
|
Citigroup, Inc. |
878,900 |
41,396,190 |
|
|
Comerica, Inc. |
268,748 |
13,480,400 |
|
|
FirstMerit Corp. |
434,121 |
8,573,890 |
|
|
JPMorgan Chase & Co. |
4,523,164 |
260,624,709 |
|
|
M&T Bank Corp. |
497,591 |
61,726,164 |
|
|
PNC Financial Services Group, Inc. |
182,500 |
16,251,625 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Banks - continued |
|||
|
Standard Chartered PLC (United Kingdom) |
1,042,321 |
$ 21,298,908 |
|
|
U.S. Bancorp |
1,436,638 |
62,235,158 |
|
|
Valley National Bancorp (e) |
583,100 |
5,778,521 |
|
|
Wells Fargo & Co. |
2,236,486 |
117,549,704 |
|
|
|
628,110,028 |
||
|
Capital Markets - 5.7% |
|||
|
Apollo Global Management LLC Class A |
415,450 |
11,516,274 |
|
|
Apollo Investment Corp. |
2,303,063 |
19,829,372 |
|
|
Ares Capital Corp. |
834,895 |
14,911,225 |
|
|
Ares Management LP |
294,400 |
5,646,592 |
|
|
Ashmore Group PLC |
2,159,042 |
13,671,443 |
|
|
BlackRock, Inc. Class A (i) |
95,157 |
30,412,177 |
|
|
Carlyle Group LP |
364,900 |
12,392,004 |
|
|
Charles Schwab Corp. |
505,969 |
13,625,745 |
|
|
Greenhill & Co., Inc. |
141,703 |
6,978,873 |
|
|
Invesco Ltd. |
357,900 |
13,510,725 |
|
|
KKR & Co. LP |
4,306,421 |
104,775,223 |
|
|
Morgan Stanley, Inc. |
973,375 |
31,469,214 |
|
|
State Street Corp. |
397,902 |
26,762,889 |
|
|
The Blackstone Group LP |
2,125,526 |
71,077,589 |
|
|
|
376,579,345 |
||
|
Diversified Financial Services - 0.6% |
|||
|
Berkshire Hathaway, Inc. Class B (a) |
241,617 |
30,579,048 |
|
|
TPG Specialty Lending, Inc. |
321,000 |
7,007,430 |
|
|
|
37,586,478 |
||
|
Insurance - 4.8% |
|||
|
ACE Ltd. |
523,311 |
54,267,351 |
|
|
Allied World Assurance Co. Holdings Ltd. |
87,900 |
3,341,958 |
|
|
Brasil Insurance Participacoes e Administracao SA |
1,383,500 |
6,731,217 |
|
|
esure Group PLC |
1,575,600 |
7,186,124 |
|
|
MetLife, Inc. |
2,810,170 |
156,133,045 |
|
|
Prudential Financial, Inc. (i) |
296,662 |
26,334,686 |
|
|
The Chubb Corp. |
346,000 |
31,890,820 |
|
|
The Travelers Companies, Inc. |
352,245 |
33,135,687 |
|
|
|
319,020,888 |
||
|
Real Estate Investment Trusts - 2.4% |
|||
|
American Capital Agency Corp. |
1,122,548 |
26,278,849 |
|
|
Annaly Capital Management, Inc. |
2,059,609 |
23,541,331 |
|
|
CBL & Associates Properties, Inc. |
719,900 |
13,678,100 |
|
|
Coresite Realty Corp. |
266,347 |
8,808,095 |
|
|
First Potomac Realty Trust |
1,231,757 |
16,160,652 |
|
|
Home Properties, Inc. |
397,272 |
25,409,517 |
|
|
Piedmont Office Realty Trust, Inc. Class A |
405,824 |
7,686,307 |
|
|
Retail Properties America, Inc. |
962,132 |
14,797,590 |
|
|
|
|||
|
Shares |
Value |
||
|
Two Harbors Investment Corp. |
1,464,834 |
$ 15,351,460 |
|
|
Ventas, Inc. |
109,690 |
7,031,129 |
|
|
|
158,743,030 |
||
|
Real Estate Management & Development - 0.1% |
|||
|
Beazer Pre-Owned Rental Homes, Inc. (a)(k) |
257,800 |
4,802,814 |
|
|
Thrifts & Mortgage Finance - 0.1% |
|||
|
Radian Group, Inc. |
323,608 |
4,792,634 |
|
|
TOTAL FINANCIALS |
1,529,635,217 |
||
|
HEALTH CARE - 7.9% |
|||
|
Biotechnology - 0.4% |
|||
|
Amgen, Inc. |
207,300 |
24,538,101 |
|
|
Health Care Equipment & Supplies - 0.6% |
|||
|
Baxter International, Inc. |
234,700 |
16,968,810 |
|
|
Covidien PLC |
185,800 |
16,755,444 |
|
|
Meridian Bioscience, Inc. |
40,052 |
826,673 |
|
|
St. Jude Medical, Inc. |
105,946 |
7,336,761 |
|
|
|
41,887,688 |
||
|
Health Care Providers & Services - 0.9% |
|||
|
Aetna, Inc. |
106,864 |
8,664,533 |
|
|
Quest Diagnostics, Inc. |
259,082 |
15,205,523 |
|
|
UnitedHealth Group, Inc. |
434,523 |
35,522,255 |
|
|
|
59,392,311 |
||
|
Pharmaceuticals - 6.0% |
|||
|
AbbVie, Inc. |
122,724 |
6,926,543 |
|
|
Astellas Pharma, Inc. |
1,581,900 |
20,802,881 |
|
|
AstraZeneca PLC sponsored ADR |
415,740 |
30,893,639 |
|
|
Johnson & Johnson |
1,313,768 |
137,446,408 |
|
|
Merck & Co., Inc. |
1,331,794 |
77,044,283 |
|
|
Pfizer, Inc. |
2,236,912 |
66,391,548 |
|
|
Sanofi SA |
186,368 |
19,808,971 |
|
|
Teva Pharmaceutical Industries Ltd. sponsored ADR (i) |
711,422 |
37,292,741 |
|
|
|
396,607,014 |
||
|
TOTAL HEALTH CARE |
522,425,114 |
||
|
INDUSTRIALS - 9.0% |
|||
|
Aerospace & Defense - 0.8% |
|||
|
United Technologies Corp. |
448,371 |
51,764,432 |
|
|
Air Freight & Logistics - 2.2% |
|||
|
C.H. Robinson Worldwide, Inc. (i) |
535,028 |
34,129,436 |
|
|
PostNL NV (a) |
1,952,500 |
9,223,776 |
|
|
United Parcel Service, Inc. Class B |
1,009,137 |
103,598,004 |
|
|
|
146,951,216 |
||
|
Airlines - 0.1% |
|||
|
Copa Holdings SA Class A |
22,200 |
3,165,054 |
|
|
Commercial Services & Supplies - 1.3% |
|||
|
Intrum Justitia AB |
421,308 |
12,573,252 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
INDUSTRIALS - continued |
|||
|
Commercial Services & Supplies - continued |
|||
|
KAR Auction Services, Inc. |
402,500 |
$ 12,827,675 |
|
|
Republic Services, Inc. |
1,643,826 |
62,416,073 |
|
|
|
87,817,000 |
||
|
Construction & Engineering - 0.0% |
|||
|
MasTec, Inc. (a) |
75,385 |
2,323,366 |
|
|
Electrical Equipment - 0.5% |
|||
|
Eaton Corp. PLC |
138,200 |
10,666,276 |
|
|
Emerson Electric Co. |
197,603 |
13,112,935 |
|
|
Hubbell, Inc. Class B |
88,382 |
10,884,243 |
|
|
|
34,663,454 |
||
|
Industrial Conglomerates - 2.3% |
|||
|
General Electric Co. |
5,880,476 |
154,538,909 |
|
|
Machinery - 0.8% |
|||
|
Cummins, Inc. (i) |
129,100 |
19,918,839 |
|
|
Stanley Black & Decker, Inc. (i) |
389,453 |
34,201,762 |
|
|
|
54,120,601 |
||
|
Professional Services - 0.5% |
|||
|
Acacia Research Corp. |
524,326 |
9,306,787 |
|
|
Bureau Veritas SA |
221,800 |
6,156,217 |
|
|
Michael Page International PLC |
1,887,699 |
13,923,921 |
|
|
|
29,386,925 |
||
|
Road & Rail - 0.4% |
|||
|
Union Pacific Corp. |
227,954 |
22,738,412 |
|
|
Trading Companies & Distributors - 0.1% |
|||
|
Now, Inc. |
90,926 |
3,292,430 |
|
|
TOTAL INDUSTRIALS |
590,761,799 |
||
|
INFORMATION TECHNOLOGY - 11.8% |
|||
|
Communications Equipment - 2.9% |
|||
|
Cisco Systems, Inc. |
6,584,831 |
163,633,050 |
|
|
QUALCOMM, Inc. |
335,039 |
26,535,089 |
|
|
|
190,168,139 |
||
|
Electronic Equipment & Components - 0.5% |
|||
|
Hitachi Ltd. |
1,321,000 |
9,681,699 |
|
|
TE Connectivity Ltd. |
410,561 |
25,389,092 |
|
|
|
35,070,791 |
||
|
Internet Software & Services - 0.3% |
|||
|
Yahoo!, Inc. (a) |
620,600 |
21,801,678 |
|
|
IT Services - 3.4% |
|||
|
Accenture PLC Class A |
209,971 |
16,974,056 |
|
|
IBM Corp. |
631,823 |
114,530,555 |
|
|
Paychex, Inc. |
1,966,369 |
81,722,296 |
|
|
Xerox Corp. |
1,059,532 |
13,180,578 |
|
|
|
226,407,485 |
||
|
|
|||
|
Shares |
Value |
||
|
Semiconductors & Semiconductor Equipment - 1.9% |
|||
|
Applied Materials, Inc. (i) |
2,455,100 |
$ 55,362,505 |
|
|
Broadcom Corp. Class A (i) |
1,854,260 |
68,830,131 |
|
|
|
124,192,636 |
||
|
Software - 1.8% |
|||
|
CA Technologies, Inc. |
585,917 |
16,839,255 |
|
|
Microsoft Corp. (i) |
2,380,624 |
99,272,021 |
|
|
|
116,111,276 |
||
|
Technology Hardware, Storage & Peripherals - 1.0% |
|||
|
Apple, Inc. |
271,957 |
25,272,964 |
|
|
EMC Corp. |
558,764 |
14,717,844 |
|
|
First Data Holdings, Inc. Class B (h)(k) |
6,341,091 |
25,364,364 |
|
|
|
65,355,172 |
||
|
TOTAL INFORMATION TECHNOLOGY |
779,107,177 |
||
|
MATERIALS - 1.4% |
|||
|
Chemicals - 0.5% |
|||
|
Potash Corp. of Saskatchewan, Inc. |
169,700 |
6,453,705 |
|
|
RPM International, Inc. |
374,252 |
17,282,957 |
|
|
Tronox Ltd. Class A |
200,000 |
5,380,000 |
|
|
|
29,116,662 |
||
|
Metals & Mining - 0.9% |
|||
|
Commercial Metals Co. |
754,827 |
13,066,055 |
|
|
Freeport-McMoRan Copper & |
1,197,478 |
43,707,947 |
|
|
Goldcorp, Inc. |
35,300 |
985,178 |
|
|
SunCoke Energy Partners LP |
98,489 |
2,974,368 |
|
|
|
60,733,548 |
||
|
TOTAL MATERIALS |
89,850,210 |
||
|
TELECOMMUNICATION SERVICES - 3.4% |
|||
|
Diversified Telecommunication Services - 2.9% |
|||
|
AT&T, Inc. |
1,743,393 |
61,646,376 |
|
|
Verizon Communications, Inc. |
2,367,344 |
115,834,142 |
|
|
Verizon Communications, Inc. CDI |
335,115 |
16,420,635 |
|
|
|
193,901,153 |
||
|
Wireless Telecommunication Services - 0.5% |
|||
|
Vodafone Group PLC |
9,595,380 |
32,070,452 |
|
|
TOTAL TELECOMMUNICATION SERVICES |
225,971,605 |
||
|
UTILITIES - 3.2% |
|||
|
Electric Utilities - 3.2% |
|||
|
American Electric Power Co., Inc. |
819,271 |
45,690,744 |
|
|
Exelon Corp. |
423,400 |
15,445,632 |
|
|
Hawaiian Electric Industries, Inc. (e) |
563,987 |
14,280,151 |
|
|
Pinnacle West Capital Corp. |
108,900 |
6,298,776 |
|
|
PPL Corp. (i) |
1,227,547 |
43,614,745 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
UTILITIES - continued |
|||
|
Electric Utilities - continued |
|||
|
Southern Co. |
1,439,177 |
$ 65,309,852 |
|
|
Xcel Energy, Inc. |
678,494 |
21,867,862 |
|
|
|
212,507,762 |
||
|
Independent Power and Renewable Electricity Producers - 0.0% |
|||
|
NextEra Energy Partners LP |
30,500 |
1,022,055 |
|
|
TOTAL UTILITIES |
213,529,817 |
||
|
TOTAL COMMON STOCKS (Cost $4,543,417,274) |
|
||
|
Preferred Stocks - 1.6% |
|||
|
|
|
|
|
|
Convertible Preferred Stocks - 1.2% |
|||
|
CONSUMER STAPLES - 0.1% |
|||
|
Food Products - 0.1% |
|||
|
Post Holdings, Inc. 5.25% (a) |
35,200 |
3,705,856 |
|
|
FINANCIALS - 0.3% |
|||
|
Real Estate Investment Trusts - 0.3% |
|||
|
American Tower Corp. Series A, 5.25% (a) |
32,000 |
3,404,800 |
|
|
Crown Castle International Corp. |
113,000 |
11,445,770 |
|
|
Weyerhaeuser Co. Series A, 6.375% |
111,500 |
6,348,531 |
|
|
|
21,199,101 |
||
|
HEALTH CARE - 0.1% |
|||
|
Health Care Equipment & Supplies - 0.1% |
|||
|
Alere, Inc. 3.00% |
29,880 |
9,408,017 |
|
|
INDUSTRIALS - 0.1% |
|||
|
Aerospace & Defense - 0.1% |
|||
|
United Technologies Corp. 7.50% |
81,200 |
5,293,428 |
|
|
UTILITIES - 0.6% |
|||
|
Electric Utilities - 0.2% |
|||
|
NextEra Energy, Inc.: |
|
|
|
|
5.889% |
49,807 |
3,234,965 |
|
|
Series E, 5.599% |
158,600 |
10,653,162 |
|
|
|
13,888,127 |
||
|
Multi-Utilities - 0.4% |
|||
|
CenterPoint Energy, Inc. 2.00% ZENS |
138,300 |
7,901,079 |
|
|
Dominion Resources, Inc.: |
|
|
|
|
6.375% (a) |
132,000 |
6,946,500 |
|
|
|
|||
|
Shares |
Value |
||
|
Series A, 6.125% |
85,500 |
$ 4,929,075 |
|
|
Series B, 6.00% |
99,000 |
5,743,980 |
|
|
|
25,520,634 |
||
|
TOTAL UTILITIES |
39,408,761 |
||
|
TOTAL CONVERTIBLE PREFERRED STOCKS |
79,015,163 |
||
|
Nonconvertible Preferred Stocks - 0.4% |
|||
|
FINANCIALS - 0.4% |
|||
|
Consumer Finance - 0.4% |
|||
|
Ally Financial, Inc.: |
|
|
|
|
7.00% (f) |
19,863 |
19,913,279 |
|
|
Series A, 8.50% |
155,954 |
4,307,449 |
|
|
|
24,220,728 |
||
|
TOTAL PREFERRED STOCKS (Cost $89,580,008) |
|
||
|
Corporate Bonds - 3.6% |
||||
|
|
Principal Amount (d) |
|
||
|
Convertible Bonds - 3.3% |
||||
|
CONSUMER DISCRETIONARY - 0.3% |
||||
|
Automobiles - 0.2% |
||||
|
Ford Motor Co. 4.25% 11/15/16 |
|
$ 2,070,000 |
4,136,274 |
|
|
Volkswagen International Finance NV 5.5% 11/9/15 (f) |
EUR |
6,400,000 |
10,277,856 |
|
|
|
14,414,130 |
|||
|
Diversified Consumer Services - 0.1% |
||||
|
Carriage Services, Inc. 2.75% 3/15/21 (f) |
|
2,600,000 |
2,705,625 |
|
|
Media - 0.0% |
||||
|
Liberty Media Corp. 3.5% 1/15/31 |
|
2,472,825 |
2,258,594 |
|
|
TOTAL CONSUMER DISCRETIONARY |
19,378,349 |
|||
|
ENERGY - 0.5% |
||||
|
Oil, Gas & Consumable Fuels - 0.5% |
||||
|
Amyris, Inc. 3% 2/27/17 |
|
1,383,000 |
1,151,265 |
|
|
BPZ Energy, Inc. 8.5% 10/1/17 |
|
2,730,000 |
3,177,038 |
|
|
Chesapeake Energy Corp. 2.5% 5/15/37 |
|
9,290,000 |
9,947,732 |
|
|
Clean Energy Fuels Corp. 5.25% 10/1/18 (f) |
|
3,600,000 |
3,548,880 |
|
|
Scorpio Tankers, Inc. 2.375% 7/1/19 (f) |
|
4,000,000 |
4,234,400 |
|
|
Ship Finance International Ltd. 3.25% 2/1/18 |
|
7,260,000 |
8,207,430 |
|
|
|
30,266,745 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (d) |
Value |
||
|
Convertible Bonds - continued |
||||
|
FINANCIALS - 0.4% |
||||
|
Capital Markets - 0.1% |
||||
|
Ares Capital Corp. 5.75% 2/1/16 |
|
$ 6,190,000 |
$ 6,584,613 |
|
|
Insurance - 0.1% |
||||
|
Fidelity National Financial, Inc. 4.25% 8/15/18 |
|
4,760,000 |
7,854,000 |
|
|
Thrifts & Mortgage Finance - 0.2% |
||||
|
MGIC Investment Corp. 9% 4/1/63 (f) |
|
10,438,000 |
13,398,217 |
|
|
TOTAL FINANCIALS |
27,836,830 |
|||
|
HEALTH CARE - 0.8% |
||||
|
Biotechnology - 0.0% |
||||
|
Gilead Sciences, Inc. 1.625% 5/1/16 |
|
630,000 |
2,295,776 |
|
|
Health Care Equipment & Supplies - 0.1% |
||||
|
Teleflex, Inc. 3.875% 8/1/17 |
|
3,510,000 |
6,118,632 |
|
|
Health Care Providers & Services - 0.5% |
||||
|
HealthSouth Corp. 2% 12/1/43 |
|
10,178,000 |
11,107,251 |
|
|
Molina Healthcare, Inc. 1.125% 1/15/20 |
|
4,080,000 |
5,097,450 |
|
|
WellPoint, Inc. 2.75% 10/15/42 |
|
13,310,000 |
20,430,850 |
|
|
|
36,635,551 |
|||
|
Pharmaceuticals - 0.2% |
||||
|
Theravance, Inc. 2.125% 1/15/23 |
|
7,290,000 |
10,515,825 |
|
|
TOTAL HEALTH CARE |
55,565,784 |
|||
|
INDUSTRIALS - 0.2% |
||||
|
Construction & Engineering - 0.1% |
||||
|
Layne Christensen Co. 4.25% 11/15/18 (f) |
|
2,780,000 |
2,490,972 |
|
|
MasTec, Inc. 4.25% 12/15/14 |
|
2,080,000 |
4,173,000 |
|
|
|
6,663,972 |
|||
|
Machinery - 0.1% |
||||
|
Navistar International Corp. 4.75% 4/15/19 (f) |
|
6,710,000 |
7,154,873 |
|
|
TOTAL INDUSTRIALS |
13,818,845 |
|||
|
|
||||
|
|
Principal Amount (d) |
Value |
||
|
INFORMATION TECHNOLOGY - 0.9% |
||||
|
Communications Equipment - 0.3% |
||||
|
InterDigital, Inc. 2.5% 3/15/16 |
|
$ 12,210,000 |
$ 13,477,398 |
|
|
Liberty Interactive LLC 0.75% 3/30/43 |
|
3,250,000 |
4,367,350 |
|
|
|
17,844,748 |
|||
|
Semiconductors & Semiconductor Equipment - 0.5% |
||||
|
Canadian Solar, Inc. 4.25% 2/15/19 (f) |
|
5,020,000 |
5,227,326 |
|
|
GT Advanced Technologies, Inc.: |
|
|
|
|
|
3% 10/1/17 |
|
9,240,000 |
22,972,950 |
|
|
3% 12/15/20 |
|
1,890,000 |
3,305,232 |
|
|
|
31,505,508 |
|||
|
Software - 0.1% |
||||
|
TiVo, Inc. 4% 3/15/16 (f) |
|
8,310,000 |
11,018,229 |
|
|
TOTAL INFORMATION TECHNOLOGY |
60,368,485 |
|||
|
MATERIALS - 0.1% |
||||
|
Metals & Mining - 0.1% |
||||
|
Newmont Mining Corp. 1.25% 7/15/14 |
|
5,130,000 |
5,130,000 |
|
|
UTILITIES - 0.1% |
||||
|
Electric Utilities - 0.1% |
||||
|
NRG Yield, Inc. 3.5% 2/1/19 (f) |
|
6,400,000 |
7,576,000 |
|
|
TOTAL CONVERTIBLE BONDS |
219,941,038 |
|||
|
Nonconvertible Bonds - 0.3% |
||||
|
INDUSTRIALS - 0.2% |
||||
|
Commercial Services & Supplies - 0.2% |
||||
|
APX Group, Inc.: |
|
|
|
|
|
6.375% 12/1/19 |
|
2,585,000 |
2,681,938 |
|
|
8.75% 12/1/20 |
|
6,530,000 |
6,627,950 |
|
|
|
9,309,888 |
|||
|
MATERIALS - 0.1% |
||||
|
Metals & Mining - 0.1% |
||||
|
JMC Steel Group, Inc. 8.25% 3/15/18 (f) |
|
3,775,000 |
3,850,500 |
|
|
Walter Energy, Inc. 8.5% 4/15/21 |
|
5,250,000 |
2,940,000 |
|
|
|
6,790,500 |
|||
|
TOTAL NONCONVERTIBLE BONDS |
16,100,388 |
|||
|
TOTAL CORPORATE BONDS (Cost $196,529,630) |
|
|||
|
Preferred Securities - 0.0% |
||||
|
|
Principal Amount (d) |
Value |
||
|
FINANCIALS - 0.0% |
||||
|
Diversified Financial Services - 0.0% |
||||
|
Baggot Securities Ltd. 10.24% (f)(g) (Cost $3,931,534) |
EUR |
2,560,000 |
$ 3,987,034 |
|
|
Money Market Funds - 4.1% |
|||
|
Shares |
Value |
||
|
Fidelity Cash Central Fund, 0.11% (b) |
221,223,706 |
$ 221,223,706 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
46,989,775 |
46,989,775 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $268,213,481) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $5,101,671,927) |
6,666,998,665 |
||
|
NET OTHER ASSETS (LIABILITIES) - (1.1)% |
(74,153,276) |
||
|
NET ASSETS - 100% |
$ 6,592,845,389 |
||
|
Written Options |
|||||||
|
Expiration Date/Exercise Price |
Number of Contracts |
Premium |
Value |
||||
|
Call Options |
|||||||
|
Altria Group, Inc. |
9/20/14 - |
8,874 |
$ 480,161 |
$ (545,751) |
|||
|
Applied Materials, Inc. |
7/19/14 - |
4,910 |
201,315 |
(220,950) |
|||
|
BlackRock, Inc. Class A |
10/18/14 - |
476 |
412,873 |
(597,380) |
|||
|
Broadcom Corp. Class A |
8/16/14 - |
6,119 |
348,185 |
(131,558) |
|||
|
C.H. Robinson Worldwide, Inc. |
7/19/14 - |
1,766 |
107,653 |
(278,145) |
|||
|
CIT Group, Inc. |
7/19/14 - |
937 |
99,695 |
(7,496) |
|||
|
Cummins, Inc. |
9/20/14 - |
646 |
214,726 |
(122,740) |
|||
|
McDonald's Corp. |
9/20/14 - |
3,105 |
315,523 |
(254,610) |
|||
|
Microsoft Corp. |
7/19/14 - |
3,690 |
273,829 |
(149,445) |
|||
|
Philip Morris International, Inc. |
7/19/14 - |
2,067 |
110,437 |
(12,402) |
|||
|
PPL Corp. |
7/19/14 - |
6,138 |
147,309 |
(951,390) |
|||
|
Prudential Financial, Inc. |
9/20/14 - |
1,483 |
218,604 |
(150,525) |
|||
|
Stanley Black & Decker, Inc. |
7/19/14 - |
1,900 |
286,134 |
(598,500) |
|||
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
7/19/14 - |
2,348 |
120,943 |
(34,046) |
|||
|
Yum! Brands, Inc. |
7/19/14 - |
1,291 |
95,909 |
(130,391) |
|||
|
TOTAL WRITTEN OPTIONS |
$ 3,433,296 |
$ (4,185,329) |
|||||
|
Currency Abbreviations |
||
|
EUR |
- |
European Monetary Unit |
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Amount is stated in United States dollars unless otherwise noted. |
|
(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 $95,383,191 or 1.4% of net assets. |
|
(g) Security is perpetual in nature with no stated maturity date. |
|
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
(i) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $250,280,242. |
|
(j) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
|
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $45,492,234 or 0.7% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost |
|
Beazer Pre-Owned Rental |
5/3/12 - 10/23/12 |
$ 5,156,000 |
|
First Data Holdings, Inc. Class B |
6/26/14 |
$ 25,364,364 |
|
New Academy Holding Co. LLC unit |
8/1/11 |
$ 13,406,880 |
|
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 |
$ 73,720 |
|
Fidelity Securities Lending Cash Central Fund |
203,103 |
|
Total |
$ 276,823 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 445,997,054 |
$ 430,671,998 |
$ - |
$ 15,325,056 |
|
Consumer Staples |
672,284,039 |
668,692,521 |
3,591,518 |
- |
|
Energy |
989,664,657 |
989,664,657 |
- |
- |
|
Financials |
1,575,055,046 |
1,532,544,652 |
37,707,580 |
4,802,814 |
|
Health Care |
531,833,131 |
491,221,279 |
40,611,852 |
- |
|
Industrials |
596,055,227 |
596,055,227 |
- |
- |
|
Information Technology |
779,107,177 |
744,061,114 |
9,681,699 |
25,364,364 |
|
Materials |
89,850,210 |
89,850,210 |
- |
- |
|
Telecommunication Services |
225,971,605 |
193,901,153 |
32,070,452 |
- |
|
Utilities |
252,938,578 |
231,149,372 |
21,789,206 |
- |
|
Corporate Bonds |
236,041,426 |
5,130,000 |
230,911,426 |
- |
|
Preferred Securities |
3,987,034 |
- |
3,987,034 |
- |
|
Money Market Funds |
268,213,481 |
268,213,481 |
- |
- |
|
Total Investments in Securities: |
$ 6,666,998,665 |
$ 6,241,155,664 |
$ 380,350,767 |
$ 45,492,234 |
|
Derivative Instruments: |
||||
|
Liabilities |
||||
|
Written Options |
$ (4,185,329) |
$ (4,185,329) |
$ - |
$ - |
|
Value of Derivative Instruments |
|
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of June 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
|
Primary Risk Exposure / |
Value |
|
|
|
Asset |
Liability |
|
Equity Risk |
||
|
Written Options (a) |
$ - |
$ (4,185,329) |
|
Total Value of Derivatives |
$ - |
$ (4,185,329) |
|
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item. |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
89.5% |
|
United Kingdom |
3.6% |
|
Canada |
2.0% |
|
Switzerland |
1.2% |
|
Others (Individually Less Than 1%) |
3.7% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $45,347,915) - See accompanying schedule: Unaffiliated issuers (cost $4,833,458,446) |
$ 6,398,785,184 |
|
|
Fidelity Central Funds (cost $268,213,481) |
268,213,481 |
|
|
Total Investments (cost $5,101,671,927) |
|
$ 6,666,998,665 |
|
Cash |
|
670,471 |
|
Receivable for investments sold |
|
7,977,365 |
|
Receivable for fund shares sold |
|
1,500,122 |
|
Dividends receivable |
|
12,051,599 |
|
Interest receivable |
|
1,799,517 |
|
Distributions receivable from Fidelity Central Funds |
|
65,285 |
|
Other receivables |
|
417,293 |
|
Total assets |
|
6,691,480,317 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 13,152,309 |
|
|
Delayed delivery |
25,364,364 |
|
|
Payable for fund shares redeemed |
5,145,114 |
|
|
Accrued management fee |
2,461,532 |
|
|
Distribution and service plan fees payable |
408,835 |
|
|
Written options, at value (premium received $3,433,296) |
4,185,329 |
|
|
Other affiliated payables |
484,359 |
|
|
Other payables and accrued expenses |
443,311 |
|
|
Collateral on securities loaned, at value |
46,989,775 |
|
|
Total liabilities |
|
98,634,928 |
|
|
|
|
|
Net Assets |
|
$ 6,592,845,389 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 4,622,203,835 |
|
Undistributed net investment income |
|
104,213,595 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
301,811,675 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
1,564,616,284 |
|
Net Assets |
|
$ 6,592,845,389 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 25.03 |
|
|
|
|
|
Service Class: |
|
$ 24.92 |
|
|
|
|
|
Service Class 2: |
|
$ 24.56 |
|
|
|
|
|
Service Class 2R: |
|
$ 24.40 |
|
|
|
|
|
Investor Class: |
|
$ 24.94 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 97,719,645 |
|
Special dividends |
|
22,197,225 |
|
Interest |
|
3,684,328 |
|
Income from Fidelity Central Funds |
|
276,823 |
|
Total income |
|
123,878,021 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 14,329,873 |
|
|
Transfer agent fees |
2,218,402 |
|
|
Distribution and service plan fees |
2,385,787 |
|
|
Accounting and security lending fees |
570,300 |
|
|
Custodian fees and expenses |
67,001 |
|
|
Independent trustees' compensation |
13,086 |
|
|
Appreciation in deferred trustee compensation account |
156 |
|
|
Audit |
47,756 |
|
|
Legal |
8,341 |
|
|
Miscellaneous |
29,680 |
|
|
Total expenses before reductions |
19,670,382 |
|
|
Expense reductions |
(77,956) |
19,592,426 |
|
Net investment income (loss) |
|
104,285,595 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
332,007,113 |
|
|
Foreign currency transactions |
18,046 |
|
|
Written options |
3,686,555 |
|
|
Total net realized gain (loss) |
|
335,711,714 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
38,980,720 |
|
|
Assets and liabilities in foreign currencies |
(34,261) |
|
|
Written options |
2,517,579 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
41,464,038 |
|
Net gain (loss) |
|
377,175,752 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 481,461,347 |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 104,285,595 |
$ 144,508,656 |
|
Net realized gain (loss) |
335,711,714 |
426,826,124 |
|
Change in net unrealized appreciation (depreciation) |
41,464,038 |
930,403,753 |
|
Net increase (decrease) in net assets resulting from operations |
481,461,347 |
1,501,738,533 |
|
Distributions to shareholders from net investment income |
- |
(147,533,373) |
|
Distributions to shareholders from net realized gain |
(22,861,605) |
(403,959,921) |
|
Total distributions |
(22,861,605) |
(551,493,294) |
|
Share transactions - net increase (decrease) |
(324,269,241) |
(90,118,096) |
|
Redemption fees |
3,177 |
144 |
|
Total increase (decrease) in net assets |
134,333,678 |
860,127,287 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
6,458,511,711 |
5,598,384,424 |
|
End of period (including undistributed net investment income of $104,213,595 and distributions in excess of net investment income of $72,000, respectively) |
$ 6,592,845,389 |
$ 6,458,511,711 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 23.29 |
$ 19.94 |
$ 18.69 |
$ 19.02 |
$ 16.81 |
$ 13.18 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.40 H |
.56 |
.59 |
.48 |
.30 |
.33 |
|
Net realized and unrealized gain (loss) |
1.42 |
4.96 |
2.59 |
(.31) |
2.24 |
3.64 |
|
Total from investment operations |
1.82 |
5.52 |
3.18 |
.17 |
2.54 |
3.97 |
|
Distributions from net investment income |
- |
(.60) |
(.63) I |
(.50) |
(.33) |
(.34) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.17) |
(1.93) |
(.50) |
(.33) |
(.34) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 25.03 |
$ 23.29 |
$ 19.94 |
$ 18.69 |
$ 19.02 |
$ 16.81 |
|
Total Return B, C, D |
7.87% |
28.15% |
17.31% |
.97% |
15.15% |
30.21% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.54%A |
.55% |
.55% |
.56% |
.56% |
.58% |
|
Expenses net of fee waivers, if any |
.54%A |
.54% |
.55% |
.55% |
.55% |
.58% |
|
Expenses net of all reductions |
.54%A |
.54% |
.54% |
.54% |
.55% |
.58% |
|
Net investment income (loss) |
3.36% A,H |
2.43% |
2.94% |
2.48% |
1.71% |
2.29% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 3,996,200 |
$ 3,947,728 |
$ 3,461,083 |
$ 3,345,762 |
$ 3,798,310 |
$ 3,771,733 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.66%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 23.20 |
$ 19.87 |
$ 18.63 |
$ 18.96 |
$ 16.75 |
$ 13.14 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.38 H |
.53 |
.57 |
.46 |
.28 |
.31 |
|
Net realized and unrealized gain (loss) |
1.42 |
4.94 |
2.57 |
(.31) |
2.24 |
3.63 |
|
Total from investment operations |
1.80 |
5.47 |
3.14 |
.15 |
2.52 |
3.94 |
|
Distributions from net investment income |
- |
(.57) |
(.60) I |
(.48) |
(.31) |
(.33) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.14) |
(1.90) |
(.48) |
(.31) |
(.33) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.92 |
$ 23.20 |
$ 19.87 |
$ 18.63 |
$ 18.96 |
$ 16.75 |
|
Total Return B, C, D |
7.81% |
28.01% |
17.19% |
.86% |
15.09% |
30.03% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.64% A |
.65% |
.65% |
.66% |
.66% |
.68% |
|
Expenses net of fee waivers, if any |
.64% A |
.64% |
.65% |
.66% |
.65% |
.68% |
|
Expenses net of all reductions |
.64% A |
.64% |
.64% |
.64% |
.65% |
.68% |
|
Net investment income (loss) |
3.26% A,H |
2.33% |
2.84% |
2.38% |
1.61% |
2.19% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 400,887 |
$ 391,896 |
$ 350,493 |
$ 347,999 |
$ 414,431 |
$ 430,383 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.56%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 22.88 |
$ 19.62 |
$ 18.41 |
$ 18.75 |
$ 16.57 |
$ 13.00 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.36 H |
.49 |
.53 |
.42 |
.25 |
.29 |
|
Net realized and unrealized gain (loss) |
1.40 |
4.88 |
2.55 |
(.31) |
2.21 |
3.58 |
|
Total from investment operations |
1.76 |
5.37 |
3.08 |
.11 |
2.46 |
3.87 |
|
Distributions from net investment income |
- |
(.54) |
(.57) I |
(.45) |
(.28) |
(.30) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.11) |
(1.87) |
(.45) |
(.28) |
(.30) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.56 |
$ 22.88 |
$ 19.62 |
$ 18.41 |
$ 18.75 |
$ 16.57 |
|
Total Return B, C, D |
7.75% |
27.83% |
17.05% |
.66% |
14.92% |
29.88% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.79% A |
.80% |
.80% |
.81% |
.81% |
.83% |
|
Expenses net of fee waivers, if any |
.79% A |
.79% |
.80% |
.81% |
.80% |
.83% |
|
Expenses net of all reductions |
.79%A |
.79% |
.79% |
.80% |
.80% |
.83% |
|
Net investment income (loss) |
3.11% A,H |
2.18% |
2.69% |
2.23% |
1.46% |
2.04% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 1,796,599 |
$ 1,755,769 |
$ 1,560,856 |
$ 1,457,230 |
$ 1,619,356 |
$ 1,558,421 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.41%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 22.74 |
$ 19.53 |
$ 18.34 |
$ 18.66 |
$ 16.49 |
$ 12.93 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.36 H |
.49 |
.53 |
.42 |
.25 |
.28 |
|
Net realized and unrealized gain (loss) |
1.38 |
4.84 |
2.54 |
(.30) |
2.20 |
3.58 |
|
Total from investment operations |
1.74 |
5.33 |
3.07 |
.12 |
2.45 |
3.86 |
|
Distributions from net investment income |
- |
(.55) |
(.58) I |
(.44) |
(.28) |
(.30) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.12) |
(1.88) |
(.44) |
(.28) |
(.30) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.40 |
$ 22.74 |
$ 19.53 |
$ 18.34 |
$ 18.66 |
$ 16.49 |
|
Total Return B, C, D |
7.71% |
27.79% |
17.05% |
.70% |
14.90% |
29.95% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.79% A |
.79% |
.80% |
.81% |
.81% |
.83% |
|
Expenses net of fee waivers, if any |
.79% A |
.79% |
.80% |
.80% |
.80% |
.83% |
|
Expenses net of all reductions |
.79% A |
.79% |
.79% |
.79% |
.80% |
.83% |
|
Net investment income (loss) |
3.11% A,H |
2.19% |
2.69% |
2.23% |
1.46% |
2.04% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 14,138 |
$ 11,980 |
$ 5,640 |
$ 3,956 |
$ 5,405 |
$ 5,259 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.41%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 23.21 |
$ 19.89 |
$ 18.64 |
$ 18.97 |
$ 16.77 |
$ 13.15 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.39 H |
.54 |
.57 |
.46 |
.28 |
.31 |
|
Net realized and unrealized gain (loss) |
1.42 |
4.93 |
2.59 |
(.31) |
2.23 |
3.64 |
|
Total from investment operations |
1.81 |
5.47 |
3.16 |
.15 |
2.51 |
3.95 |
|
Distributions from net investment income |
- |
(.58) |
(.61) I |
(.48) |
(.31) |
(.33) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.15) |
(1.91) |
(.48) |
(.31) |
(.33) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.94 |
$ 23.21 |
$ 19.89 |
$ 18.64 |
$ 18.97 |
$ 16.77 |
|
Total Return B, C, D |
7.85% |
27.99% |
17.27% |
.89% |
15.04% |
30.09% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.62% A |
.63% |
.64% |
.64% |
.65% |
.68% |
|
Expenses net of fee waivers, if any |
.62% A |
.62% |
.64% |
.64% |
.64% |
.68% |
|
Expenses net of all reductions |
.62% A |
.62% |
.63% |
.63% |
.64% |
.68% |
|
Net investment income (loss) |
3.28% A,H |
2.35% |
2.85% |
2.39% |
1.62% |
2.19% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 385,022 |
$ 351,139 |
$ 220,311 |
$ 178,499 |
$ 165,946 |
$ 147,358 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.58%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Equity-Income PortfolioSM (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Service Class 2R shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price 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.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect 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 are included in the accompanying Statement of Assets and Liabilities.
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 dividends 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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, market discount, contingent interest, partnerships, deferred trustees compensation, equity-debt classifications and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,748,707,742 |
|
Gross unrealized depreciation |
(186,062,280) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 1,562,645,462 |
|
|
|
|
Tax cost |
$ 5,104,353,203 |
Trading (Redemption) Fees. Service Class 2R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
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 options. 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.
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.
Semiannual Report
4. Derivative Instruments - continued
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options" and are representative of volume of activity during the period.
During the period, the Fund recognized net realized gain (loss) of $3,686,555 and a change in net unrealized appreciation (depreciation) of $2,517,579 related to its investment in written options. This amount is included in the Statement of Operations.
The following is a summary of the Fund's written options activity:
|
Written Options |
Number of Contracts |
Amount of Premiums |
|
Outstanding at beginning of period |
31,690 |
$ 1,867,358 |
|
Options Opened |
129,753 |
9,850,465 |
|
Options Exercised |
(44,843) |
(3,667,899) |
|
Options Closed |
(36,287) |
(2,267,315) |
|
Options Expired |
(34,563) |
(2,349,313) |
|
Outstanding at end of period |
45,750 |
$ 3,433,296 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,203,902,918 and $1,488,862,918, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .45% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 193,027 |
|
Service Class 2 |
2,176,525 |
|
Service Class 2R |
16,235 |
|
|
$ 2,385,787 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.15% for Investor Class) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 1,261,594 |
|
Service Class |
125,924 |
|
Service Class 2 |
569,105 |
|
Service Class 2R |
4,211 |
|
Investor Class |
257,568 |
|
|
$ 2,218,402 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,795 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5,852 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $240,540. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $203,103, including $413 from securities loaned to FCM.
9. 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 $77,950 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
Semiannual Report
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 92,568,520 |
|
Service Class |
- |
8,840,014 |
|
Service Class 2 |
- |
37,705,026 |
|
Service Class 2R |
- |
258,073 |
|
Investor Class |
- |
8,161,740 |
|
Total |
$ - |
$ 147,533,373 |
|
From net realized gain |
|
|
|
Initial Class |
$ 13,890,337 |
$ 245,504,561 |
|
Service Class |
1,381,568 |
24,485,710 |
|
Service Class 2 |
6,319,415 |
111,276,322 |
|
Service Class 2R |
44,475 |
724,327 |
|
Investor Class |
1,225,810 |
21,969,001 |
|
Total |
$ 22,861,605 |
$ 403,959,921 |
11. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Initial Class |
|
|
|
|
|
Shares sold |
2,016,326 |
5,939,757 |
$ 47,366,252 |
$ 136,791,018 |
|
Reinvestment of distributions |
617,623 |
15,117,940 |
13,890,337 |
338,073,081 |
|
Shares redeemed |
(12,485,353) |
(25,104,941) |
(292,066,622) |
(577,075,155) |
|
Net increase (decrease) |
(9,851,404) |
(4,047,244) |
$ (230,810,033) |
$ (102,211,056) |
|
Service Class |
|
|
|
|
|
Shares sold |
335,848 |
522,521 |
$ 7,964,184 |
$ 11,868,622 |
|
Reinvestment of distributions |
61,677 |
1,495,670 |
1,381,568 |
33,325,724 |
|
Shares redeemed |
(1,203,357) |
(2,763,995) |
(28,165,433) |
(62,879,133) |
|
Net increase (decrease) |
(805,832) |
(745,804) |
$ (18,819,681) |
$ (17,684,787) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
2,382,698 |
5,862,575 |
$ 55,158,163 |
$ 132,392,944 |
|
Reinvestment of distributions |
286,076 |
6,780,471 |
6,319,415 |
148,981,348 |
|
Shares redeemed |
(6,248,901) |
(15,448,401) |
(145,105,211) |
(348,570,665) |
|
Net increase (decrease) |
(3,580,127) |
(2,805,355) |
$ (83,627,633) |
$ (67,196,373) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
90,479 |
253,817 |
$ 2,071,086 |
$ 5,683,428 |
|
Reinvestment of distributions |
2,026 |
44,961 |
44,475 |
982,400 |
|
Shares redeemed |
(40,049) |
(60,780) |
(937,155) |
(1,351,791) |
|
Net increase (decrease) |
52,456 |
237,998 |
$ 1,178,406 |
$ 5,314,037 |
|
Investor Class |
|
|
|
|
|
Shares sold |
1,174,683 |
3,800,857 |
$ 27,838,855 |
$ 86,969,508 |
|
Reinvestment of distributions |
54,699 |
1,351,634 |
1,225,810 |
30,130,741 |
|
Shares redeemed |
(916,798) |
(1,103,166) |
(21,254,965) |
(25,440,166) |
|
Net increase (decrease) |
312,584 |
4,049,325 |
$ 7,809,700 |
$ 91,660,083 |
12. 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 13% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 18% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
VIPEI-SANN-0814 1.705693.116
Fidelity® Variable Insurance Products:
Equity-Income Portfolio - Service Class 2R
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.54% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,078.70 |
$ 2.78 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.12 |
$ 2.71 |
|
Service Class |
.64% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,078.10 |
$ 3.30 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.62 |
$ 3.21 |
|
Service Class 2 |
.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,077.50 |
$ 4.07 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.88 |
$ 3.96 |
|
Service Class 2R |
.79% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,077.10 |
$ 4.07 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.88 |
$ 3.96 |
|
Investor Class |
.62% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,078.50 |
$ 3.20 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.72 |
$ 3.11 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Top Ten Stocks as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
JPMorgan Chase & Co. |
4.0 |
4.1 |
|
Chevron Corp. |
3.1 |
3.0 |
|
Cisco Systems, Inc. |
2.5 |
2.3 |
|
MetLife, Inc. |
2.4 |
2.4 |
|
General Electric Co. |
2.3 |
2.7 |
|
Johnson & Johnson |
2.1 |
1.9 |
|
Procter & Gamble Co. |
2.0 |
2.1 |
|
Wells Fargo & Co. |
1.8 |
3.1 |
|
Exxon Mobil Corp. |
1.8 |
2.6 |
|
Verizon Communications, Inc. |
1.8 |
1.4 |
|
|
23.8 |
|
|
Top Five Market Sectors as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Financials |
24.3 |
22.2 |
|
Energy |
15.5 |
14.2 |
|
Information Technology |
12.7 |
11.9 |
|
Consumer Staples |
10.2 |
9.4 |
|
Industrials |
9.5 |
10.5 |
|
Asset Allocation (% of fund's net assets) |
|||||||
|
As of June 30, 2014* |
As of December 31, 2013** |
||||||
|
Stocks 93.4% |
|
|
Stocks 94.6% |
|
||
|
Bonds 3.6% |
|
|
Bonds 3.1% |
|
||
|
Short-Term |
|
|
Short-Term |
|
||
|
Other Investments 0.0%† |
|
|
Other Investments 0.1% |
|
||
|
* Foreign investments |
10.5% |
|
** Foreign investments |
12.2% |
|
||
|
* Written options |
(0.1)% |
|
** Written options |
(0.1)% |
|
||
† Amount represents less than 0.1%.
Semiannual Report
Showing Percentage of Net Assets
|
Common Stocks - 91.8% |
|||
|
Shares |
Value |
||
|
CONSUMER DISCRETIONARY - 6.8% |
|||
|
Auto Components - 0.2% |
|||
|
Gentex Corp. |
492,457 |
$ 14,325,574 |
|
|
Hotels, Restaurants & Leisure - 2.1% |
|||
|
Darden Restaurants, Inc. |
588,999 |
27,252,984 |
|
|
McDonald's Corp. (i) |
621,000 |
62,559,540 |
|
|
Texas Roadhouse, Inc. Class A |
550,397 |
14,310,322 |
|
|
Yum! Brands, Inc. (i) |
391,100 |
31,757,320 |
|
|
|
135,880,166 |
||
|
Leisure Products - 0.3% |
|||
|
New Academy Holding Co. LLC unit (a)(j)(k) |
127,200 |
15,325,056 |
|
|
Media - 1.7% |
|||
|
Comcast Corp. Class A |
1,607,743 |
86,303,644 |
|
|
Sinclair Broadcast Group, Inc. Class A |
766,104 |
26,622,114 |
|
|
|
112,925,758 |
||
|
Multiline Retail - 1.7% |
|||
|
Kohl's Corp. |
702,275 |
36,995,847 |
|
|
Target Corp. |
1,322,160 |
76,619,172 |
|
|
|
113,615,019 |
||
|
Specialty Retail - 0.8% |
|||
|
Abercrombie & Fitch Co. Class A (e) |
381,419 |
16,496,372 |
|
|
Foot Locker, Inc. |
344,485 |
17,472,279 |
|
|
PetSmart, Inc. (e) |
162,600 |
9,723,480 |
|
|
Staples, Inc. |
944,036 |
10,233,350 |
|
|
|
53,925,481 |
||
|
TOTAL CONSUMER DISCRETIONARY |
445,997,054 |
||
|
CONSUMER STAPLES - 10.1% |
|||
|
Beverages - 2.1% |
|||
|
Molson Coors Brewing Co. Class B |
419,800 |
31,132,368 |
|
|
PepsiCo, Inc. |
290,057 |
25,913,692 |
|
|
The Coca-Cola Co. |
1,877,541 |
79,532,637 |
|
|
|
136,578,697 |
||
|
Food & Staples Retailing - 1.5% |
|||
|
CVS Caremark Corp. |
474,300 |
35,747,991 |
|
|
Wal-Mart Stores, Inc. |
400,578 |
30,071,390 |
|
|
Walgreen Co. |
426,007 |
31,579,899 |
|
|
|
97,399,280 |
||
|
Food Products - 0.8% |
|||
|
B&G Foods, Inc. Class A |
181,113 |
5,920,584 |
|
|
Kellogg Co. |
737,857 |
48,477,205 |
|
|
|
54,397,789 |
||
|
Household Products - 2.0% |
|||
|
Procter & Gamble Co. |
1,677,919 |
131,867,654 |
|
|
Tobacco - 3.7% |
|||
|
Altria Group, Inc. (i) |
1,774,896 |
74,439,138 |
|
|
British American Tobacco PLC sponsored ADR |
258,117 |
30,736,572 |
|
|
|
|||
|
Shares |
Value |
||
|
Japan Tobacco, Inc. |
98,500 |
$ 3,591,518 |
|
|
Lorillard, Inc. |
1,165,715 |
71,073,644 |
|
|
Philip Morris International, Inc. (i) |
413,484 |
34,860,836 |
|
|
Reynolds American, Inc. |
557,300 |
33,633,055 |
|
|
|
248,334,763 |
||
|
TOTAL CONSUMER STAPLES |
668,578,183 |
||
|
ENERGY - 15.0% |
|||
|
Energy Equipment & Services - 1.8% |
|||
|
Ensco PLC Class A |
496,176 |
27,572,500 |
|
|
National Oilwell Varco, Inc. |
363,706 |
29,951,189 |
|
|
Noble Corp. |
796,165 |
26,719,297 |
|
|
Schlumberger Ltd. |
312,302 |
36,836,021 |
|
|
|
121,079,007 |
||
|
Oil, Gas & Consumable Fuels - 13.2% |
|||
|
Access Midstream Partners LP |
232,400 |
14,769,020 |
|
|
Anadarko Petroleum Corp. |
320,786 |
35,116,443 |
|
|
Apache Corp. |
548,868 |
55,227,098 |
|
|
Cameco Corp. (e) |
472,100 |
9,260,159 |
|
|
Canadian Natural Resources Ltd. (e) |
921,500 |
42,342,107 |
|
|
Chevron Corp. |
1,551,180 |
202,506,549 |
|
|
CONSOL Energy, Inc. |
642,535 |
29,601,587 |
|
|
EV Energy Partners LP |
600,024 |
23,772,951 |
|
|
Exxon Mobil Corp. |
1,166,669 |
117,460,235 |
|
|
Foresight Energy LP |
227,800 |
4,624,340 |
|
|
Gazprom OAO sponsored ADR (Reg. S) |
349,500 |
3,045,893 |
|
|
Holly Energy Partners LP |
302,944 |
10,418,244 |
|
|
HollyFrontier Corp. |
152,485 |
6,662,070 |
|
|
Imperial Oil Ltd. |
330,100 |
17,395,176 |
|
|
Legacy Reserves LP |
303,301 |
9,475,123 |
|
|
Markwest Energy Partners LP |
664,329 |
47,552,670 |
|
|
Occidental Petroleum Corp. |
399,187 |
40,968,562 |
|
|
Royal Dutch Shell PLC Class A sponsored ADR |
363,029 |
29,902,699 |
|
|
Scorpio Tankers, Inc. |
327,173 |
3,327,349 |
|
|
Suncor Energy, Inc. |
1,240,500 |
52,896,069 |
|
|
The Williams Companies, Inc. |
1,783,249 |
103,802,924 |
|
|
Williams Partners LP |
155,800 |
8,458,382 |
|
|
|
868,585,650 |
||
|
TOTAL ENERGY |
989,664,657 |
||
|
FINANCIALS - 23.2% |
|||
|
Banks - 9.5% |
|||
|
Bank of America Corp. |
690,800 |
10,617,596 |
|
|
CIT Group, Inc. (i) |
187,438 |
8,577,163 |
|
|
Citigroup, Inc. |
878,900 |
41,396,190 |
|
|
Comerica, Inc. |
268,748 |
13,480,400 |
|
|
FirstMerit Corp. |
434,121 |
8,573,890 |
|
|
JPMorgan Chase & Co. |
4,523,164 |
260,624,709 |
|
|
M&T Bank Corp. |
497,591 |
61,726,164 |
|
|
PNC Financial Services Group, Inc. |
182,500 |
16,251,625 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
FINANCIALS - continued |
|||
|
Banks - continued |
|||
|
Standard Chartered PLC (United Kingdom) |
1,042,321 |
$ 21,298,908 |
|
|
U.S. Bancorp |
1,436,638 |
62,235,158 |
|
|
Valley National Bancorp (e) |
583,100 |
5,778,521 |
|
|
Wells Fargo & Co. |
2,236,486 |
117,549,704 |
|
|
|
628,110,028 |
||
|
Capital Markets - 5.7% |
|||
|
Apollo Global Management LLC Class A |
415,450 |
11,516,274 |
|
|
Apollo Investment Corp. |
2,303,063 |
19,829,372 |
|
|
Ares Capital Corp. |
834,895 |
14,911,225 |
|
|
Ares Management LP |
294,400 |
5,646,592 |
|
|
Ashmore Group PLC |
2,159,042 |
13,671,443 |
|
|
BlackRock, Inc. Class A (i) |
95,157 |
30,412,177 |
|
|
Carlyle Group LP |
364,900 |
12,392,004 |
|
|
Charles Schwab Corp. |
505,969 |
13,625,745 |
|
|
Greenhill & Co., Inc. |
141,703 |
6,978,873 |
|
|
Invesco Ltd. |
357,900 |
13,510,725 |
|
|
KKR & Co. LP |
4,306,421 |
104,775,223 |
|
|
Morgan Stanley, Inc. |
973,375 |
31,469,214 |
|
|
State Street Corp. |
397,902 |
26,762,889 |
|
|
The Blackstone Group LP |
2,125,526 |
71,077,589 |
|
|
|
376,579,345 |
||
|
Diversified Financial Services - 0.6% |
|||
|
Berkshire Hathaway, Inc. Class B (a) |
241,617 |
30,579,048 |
|
|
TPG Specialty Lending, Inc. |
321,000 |
7,007,430 |
|
|
|
37,586,478 |
||
|
Insurance - 4.8% |
|||
|
ACE Ltd. |
523,311 |
54,267,351 |
|
|
Allied World Assurance Co. Holdings Ltd. |
87,900 |
3,341,958 |
|
|
Brasil Insurance Participacoes e Administracao SA |
1,383,500 |
6,731,217 |
|
|
esure Group PLC |
1,575,600 |
7,186,124 |
|
|
MetLife, Inc. |
2,810,170 |
156,133,045 |
|
|
Prudential Financial, Inc. (i) |
296,662 |
26,334,686 |
|
|
The Chubb Corp. |
346,000 |
31,890,820 |
|
|
The Travelers Companies, Inc. |
352,245 |
33,135,687 |
|
|
|
319,020,888 |
||
|
Real Estate Investment Trusts - 2.4% |
|||
|
American Capital Agency Corp. |
1,122,548 |
26,278,849 |
|
|
Annaly Capital Management, Inc. |
2,059,609 |
23,541,331 |
|
|
CBL & Associates Properties, Inc. |
719,900 |
13,678,100 |
|
|
Coresite Realty Corp. |
266,347 |
8,808,095 |
|
|
First Potomac Realty Trust |
1,231,757 |
16,160,652 |
|
|
Home Properties, Inc. |
397,272 |
25,409,517 |
|
|
Piedmont Office Realty Trust, Inc. Class A |
405,824 |
7,686,307 |
|
|
Retail Properties America, Inc. |
962,132 |
14,797,590 |
|
|
|
|||
|
Shares |
Value |
||
|
Two Harbors Investment Corp. |
1,464,834 |
$ 15,351,460 |
|
|
Ventas, Inc. |
109,690 |
7,031,129 |
|
|
|
158,743,030 |
||
|
Real Estate Management & Development - 0.1% |
|||
|
Beazer Pre-Owned Rental Homes, Inc. (a)(k) |
257,800 |
4,802,814 |
|
|
Thrifts & Mortgage Finance - 0.1% |
|||
|
Radian Group, Inc. |
323,608 |
4,792,634 |
|
|
TOTAL FINANCIALS |
1,529,635,217 |
||
|
HEALTH CARE - 7.9% |
|||
|
Biotechnology - 0.4% |
|||
|
Amgen, Inc. |
207,300 |
24,538,101 |
|
|
Health Care Equipment & Supplies - 0.6% |
|||
|
Baxter International, Inc. |
234,700 |
16,968,810 |
|
|
Covidien PLC |
185,800 |
16,755,444 |
|
|
Meridian Bioscience, Inc. |
40,052 |
826,673 |
|
|
St. Jude Medical, Inc. |
105,946 |
7,336,761 |
|
|
|
41,887,688 |
||
|
Health Care Providers & Services - 0.9% |
|||
|
Aetna, Inc. |
106,864 |
8,664,533 |
|
|
Quest Diagnostics, Inc. |
259,082 |
15,205,523 |
|
|
UnitedHealth Group, Inc. |
434,523 |
35,522,255 |
|
|
|
59,392,311 |
||
|
Pharmaceuticals - 6.0% |
|||
|
AbbVie, Inc. |
122,724 |
6,926,543 |
|
|
Astellas Pharma, Inc. |
1,581,900 |
20,802,881 |
|
|
AstraZeneca PLC sponsored ADR |
415,740 |
30,893,639 |
|
|
Johnson & Johnson |
1,313,768 |
137,446,408 |
|
|
Merck & Co., Inc. |
1,331,794 |
77,044,283 |
|
|
Pfizer, Inc. |
2,236,912 |
66,391,548 |
|
|
Sanofi SA |
186,368 |
19,808,971 |
|
|
Teva Pharmaceutical Industries Ltd. sponsored ADR (i) |
711,422 |
37,292,741 |
|
|
|
396,607,014 |
||
|
TOTAL HEALTH CARE |
522,425,114 |
||
|
INDUSTRIALS - 9.0% |
|||
|
Aerospace & Defense - 0.8% |
|||
|
United Technologies Corp. |
448,371 |
51,764,432 |
|
|
Air Freight & Logistics - 2.2% |
|||
|
C.H. Robinson Worldwide, Inc. (i) |
535,028 |
34,129,436 |
|
|
PostNL NV (a) |
1,952,500 |
9,223,776 |
|
|
United Parcel Service, Inc. Class B |
1,009,137 |
103,598,004 |
|
|
|
146,951,216 |
||
|
Airlines - 0.1% |
|||
|
Copa Holdings SA Class A |
22,200 |
3,165,054 |
|
|
Commercial Services & Supplies - 1.3% |
|||
|
Intrum Justitia AB |
421,308 |
12,573,252 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
INDUSTRIALS - continued |
|||
|
Commercial Services & Supplies - continued |
|||
|
KAR Auction Services, Inc. |
402,500 |
$ 12,827,675 |
|
|
Republic Services, Inc. |
1,643,826 |
62,416,073 |
|
|
|
87,817,000 |
||
|
Construction & Engineering - 0.0% |
|||
|
MasTec, Inc. (a) |
75,385 |
2,323,366 |
|
|
Electrical Equipment - 0.5% |
|||
|
Eaton Corp. PLC |
138,200 |
10,666,276 |
|
|
Emerson Electric Co. |
197,603 |
13,112,935 |
|
|
Hubbell, Inc. Class B |
88,382 |
10,884,243 |
|
|
|
34,663,454 |
||
|
Industrial Conglomerates - 2.3% |
|||
|
General Electric Co. |
5,880,476 |
154,538,909 |
|
|
Machinery - 0.8% |
|||
|
Cummins, Inc. (i) |
129,100 |
19,918,839 |
|
|
Stanley Black & Decker, Inc. (i) |
389,453 |
34,201,762 |
|
|
|
54,120,601 |
||
|
Professional Services - 0.5% |
|||
|
Acacia Research Corp. |
524,326 |
9,306,787 |
|
|
Bureau Veritas SA |
221,800 |
6,156,217 |
|
|
Michael Page International PLC |
1,887,699 |
13,923,921 |
|
|
|
29,386,925 |
||
|
Road & Rail - 0.4% |
|||
|
Union Pacific Corp. |
227,954 |
22,738,412 |
|
|
Trading Companies & Distributors - 0.1% |
|||
|
Now, Inc. |
90,926 |
3,292,430 |
|
|
TOTAL INDUSTRIALS |
590,761,799 |
||
|
INFORMATION TECHNOLOGY - 11.8% |
|||
|
Communications Equipment - 2.9% |
|||
|
Cisco Systems, Inc. |
6,584,831 |
163,633,050 |
|
|
QUALCOMM, Inc. |
335,039 |
26,535,089 |
|
|
|
190,168,139 |
||
|
Electronic Equipment & Components - 0.5% |
|||
|
Hitachi Ltd. |
1,321,000 |
9,681,699 |
|
|
TE Connectivity Ltd. |
410,561 |
25,389,092 |
|
|
|
35,070,791 |
||
|
Internet Software & Services - 0.3% |
|||
|
Yahoo!, Inc. (a) |
620,600 |
21,801,678 |
|
|
IT Services - 3.4% |
|||
|
Accenture PLC Class A |
209,971 |
16,974,056 |
|
|
IBM Corp. |
631,823 |
114,530,555 |
|
|
Paychex, Inc. |
1,966,369 |
81,722,296 |
|
|
Xerox Corp. |
1,059,532 |
13,180,578 |
|
|
|
226,407,485 |
||
|
|
|||
|
Shares |
Value |
||
|
Semiconductors & Semiconductor Equipment - 1.9% |
|||
|
Applied Materials, Inc. (i) |
2,455,100 |
$ 55,362,505 |
|
|
Broadcom Corp. Class A (i) |
1,854,260 |
68,830,131 |
|
|
|
124,192,636 |
||
|
Software - 1.8% |
|||
|
CA Technologies, Inc. |
585,917 |
16,839,255 |
|
|
Microsoft Corp. (i) |
2,380,624 |
99,272,021 |
|
|
|
116,111,276 |
||
|
Technology Hardware, Storage & Peripherals - 1.0% |
|||
|
Apple, Inc. |
271,957 |
25,272,964 |
|
|
EMC Corp. |
558,764 |
14,717,844 |
|
|
First Data Holdings, Inc. Class B (h)(k) |
6,341,091 |
25,364,364 |
|
|
|
65,355,172 |
||
|
TOTAL INFORMATION TECHNOLOGY |
779,107,177 |
||
|
MATERIALS - 1.4% |
|||
|
Chemicals - 0.5% |
|||
|
Potash Corp. of Saskatchewan, Inc. |
169,700 |
6,453,705 |
|
|
RPM International, Inc. |
374,252 |
17,282,957 |
|
|
Tronox Ltd. Class A |
200,000 |
5,380,000 |
|
|
|
29,116,662 |
||
|
Metals & Mining - 0.9% |
|||
|
Commercial Metals Co. |
754,827 |
13,066,055 |
|
|
Freeport-McMoRan Copper & |
1,197,478 |
43,707,947 |
|
|
Goldcorp, Inc. |
35,300 |
985,178 |
|
|
SunCoke Energy Partners LP |
98,489 |
2,974,368 |
|
|
|
60,733,548 |
||
|
TOTAL MATERIALS |
89,850,210 |
||
|
TELECOMMUNICATION SERVICES - 3.4% |
|||
|
Diversified Telecommunication Services - 2.9% |
|||
|
AT&T, Inc. |
1,743,393 |
61,646,376 |
|
|
Verizon Communications, Inc. |
2,367,344 |
115,834,142 |
|
|
Verizon Communications, Inc. CDI |
335,115 |
16,420,635 |
|
|
|
193,901,153 |
||
|
Wireless Telecommunication Services - 0.5% |
|||
|
Vodafone Group PLC |
9,595,380 |
32,070,452 |
|
|
TOTAL TELECOMMUNICATION SERVICES |
225,971,605 |
||
|
UTILITIES - 3.2% |
|||
|
Electric Utilities - 3.2% |
|||
|
American Electric Power Co., Inc. |
819,271 |
45,690,744 |
|
|
Exelon Corp. |
423,400 |
15,445,632 |
|
|
Hawaiian Electric Industries, Inc. (e) |
563,987 |
14,280,151 |
|
|
Pinnacle West Capital Corp. |
108,900 |
6,298,776 |
|
|
PPL Corp. (i) |
1,227,547 |
43,614,745 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
UTILITIES - continued |
|||
|
Electric Utilities - continued |
|||
|
Southern Co. |
1,439,177 |
$ 65,309,852 |
|
|
Xcel Energy, Inc. |
678,494 |
21,867,862 |
|
|
|
212,507,762 |
||
|
Independent Power and Renewable Electricity Producers - 0.0% |
|||
|
NextEra Energy Partners LP |
30,500 |
1,022,055 |
|
|
TOTAL UTILITIES |
213,529,817 |
||
|
TOTAL COMMON STOCKS (Cost $4,543,417,274) |
|
||
|
Preferred Stocks - 1.6% |
|||
|
|
|
|
|
|
Convertible Preferred Stocks - 1.2% |
|||
|
CONSUMER STAPLES - 0.1% |
|||
|
Food Products - 0.1% |
|||
|
Post Holdings, Inc. 5.25% (a) |
35,200 |
3,705,856 |
|
|
FINANCIALS - 0.3% |
|||
|
Real Estate Investment Trusts - 0.3% |
|||
|
American Tower Corp. Series A, 5.25% (a) |
32,000 |
3,404,800 |
|
|
Crown Castle International Corp. |
113,000 |
11,445,770 |
|
|
Weyerhaeuser Co. Series A, 6.375% |
111,500 |
6,348,531 |
|
|
|
21,199,101 |
||
|
HEALTH CARE - 0.1% |
|||
|
Health Care Equipment & Supplies - 0.1% |
|||
|
Alere, Inc. 3.00% |
29,880 |
9,408,017 |
|
|
INDUSTRIALS - 0.1% |
|||
|
Aerospace & Defense - 0.1% |
|||
|
United Technologies Corp. 7.50% |
81,200 |
5,293,428 |
|
|
UTILITIES - 0.6% |
|||
|
Electric Utilities - 0.2% |
|||
|
NextEra Energy, Inc.: |
|
|
|
|
5.889% |
49,807 |
3,234,965 |
|
|
Series E, 5.599% |
158,600 |
10,653,162 |
|
|
|
13,888,127 |
||
|
Multi-Utilities - 0.4% |
|||
|
CenterPoint Energy, Inc. 2.00% ZENS |
138,300 |
7,901,079 |
|
|
Dominion Resources, Inc.: |
|
|
|
|
6.375% (a) |
132,000 |
6,946,500 |
|
|
|
|||
|
Shares |
Value |
||
|
Series A, 6.125% |
85,500 |
$ 4,929,075 |
|
|
Series B, 6.00% |
99,000 |
5,743,980 |
|
|
|
25,520,634 |
||
|
TOTAL UTILITIES |
39,408,761 |
||
|
TOTAL CONVERTIBLE PREFERRED STOCKS |
79,015,163 |
||
|
Nonconvertible Preferred Stocks - 0.4% |
|||
|
FINANCIALS - 0.4% |
|||
|
Consumer Finance - 0.4% |
|||
|
Ally Financial, Inc.: |
|
|
|
|
7.00% (f) |
19,863 |
19,913,279 |
|
|
Series A, 8.50% |
155,954 |
4,307,449 |
|
|
|
24,220,728 |
||
|
TOTAL PREFERRED STOCKS (Cost $89,580,008) |
|
||
|
Corporate Bonds - 3.6% |
||||
|
|
Principal Amount (d) |
|
||
|
Convertible Bonds - 3.3% |
||||
|
CONSUMER DISCRETIONARY - 0.3% |
||||
|
Automobiles - 0.2% |
||||
|
Ford Motor Co. 4.25% 11/15/16 |
|
$ 2,070,000 |
4,136,274 |
|
|
Volkswagen International Finance NV 5.5% 11/9/15 (f) |
EUR |
6,400,000 |
10,277,856 |
|
|
|
14,414,130 |
|||
|
Diversified Consumer Services - 0.1% |
||||
|
Carriage Services, Inc. 2.75% 3/15/21 (f) |
|
2,600,000 |
2,705,625 |
|
|
Media - 0.0% |
||||
|
Liberty Media Corp. 3.5% 1/15/31 |
|
2,472,825 |
2,258,594 |
|
|
TOTAL CONSUMER DISCRETIONARY |
19,378,349 |
|||
|
ENERGY - 0.5% |
||||
|
Oil, Gas & Consumable Fuels - 0.5% |
||||
|
Amyris, Inc. 3% 2/27/17 |
|
1,383,000 |
1,151,265 |
|
|
BPZ Energy, Inc. 8.5% 10/1/17 |
|
2,730,000 |
3,177,038 |
|
|
Chesapeake Energy Corp. 2.5% 5/15/37 |
|
9,290,000 |
9,947,732 |
|
|
Clean Energy Fuels Corp. 5.25% 10/1/18 (f) |
|
3,600,000 |
3,548,880 |
|
|
Scorpio Tankers, Inc. 2.375% 7/1/19 (f) |
|
4,000,000 |
4,234,400 |
|
|
Ship Finance International Ltd. 3.25% 2/1/18 |
|
7,260,000 |
8,207,430 |
|
|
|
30,266,745 |
|||
|
Corporate Bonds - continued |
||||
|
|
Principal Amount (d) |
Value |
||
|
Convertible Bonds - continued |
||||
|
FINANCIALS - 0.4% |
||||
|
Capital Markets - 0.1% |
||||
|
Ares Capital Corp. 5.75% 2/1/16 |
|
$ 6,190,000 |
$ 6,584,613 |
|
|
Insurance - 0.1% |
||||
|
Fidelity National Financial, Inc. 4.25% 8/15/18 |
|
4,760,000 |
7,854,000 |
|
|
Thrifts & Mortgage Finance - 0.2% |
||||
|
MGIC Investment Corp. 9% 4/1/63 (f) |
|
10,438,000 |
13,398,217 |
|
|
TOTAL FINANCIALS |
27,836,830 |
|||
|
HEALTH CARE - 0.8% |
||||
|
Biotechnology - 0.0% |
||||
|
Gilead Sciences, Inc. 1.625% 5/1/16 |
|
630,000 |
2,295,776 |
|
|
Health Care Equipment & Supplies - 0.1% |
||||
|
Teleflex, Inc. 3.875% 8/1/17 |
|
3,510,000 |
6,118,632 |
|
|
Health Care Providers & Services - 0.5% |
||||
|
HealthSouth Corp. 2% 12/1/43 |
|
10,178,000 |
11,107,251 |
|
|
Molina Healthcare, Inc. 1.125% 1/15/20 |
|
4,080,000 |
5,097,450 |
|
|
WellPoint, Inc. 2.75% 10/15/42 |
|
13,310,000 |
20,430,850 |
|
|
|
36,635,551 |
|||
|
Pharmaceuticals - 0.2% |
||||
|
Theravance, Inc. 2.125% 1/15/23 |
|
7,290,000 |
10,515,825 |
|
|
TOTAL HEALTH CARE |
55,565,784 |
|||
|
INDUSTRIALS - 0.2% |
||||
|
Construction & Engineering - 0.1% |
||||
|
Layne Christensen Co. 4.25% 11/15/18 (f) |
|
2,780,000 |
2,490,972 |
|
|
MasTec, Inc. 4.25% 12/15/14 |
|
2,080,000 |
4,173,000 |
|
|
|
6,663,972 |
|||
|
Machinery - 0.1% |
||||
|
Navistar International Corp. 4.75% 4/15/19 (f) |
|
6,710,000 |
7,154,873 |
|
|
TOTAL INDUSTRIALS |
13,818,845 |
|||
|
|
||||
|
|
Principal Amount (d) |
Value |
||
|
INFORMATION TECHNOLOGY - 0.9% |
||||
|
Communications Equipment - 0.3% |
||||
|
InterDigital, Inc. 2.5% 3/15/16 |
|
$ 12,210,000 |
$ 13,477,398 |
|
|
Liberty Interactive LLC 0.75% 3/30/43 |
|
3,250,000 |
4,367,350 |
|
|
|
17,844,748 |
|||
|
Semiconductors & Semiconductor Equipment - 0.5% |
||||
|
Canadian Solar, Inc. 4.25% 2/15/19 (f) |
|
5,020,000 |
5,227,326 |
|
|
GT Advanced Technologies, Inc.: |
|
|
|
|
|
3% 10/1/17 |
|
9,240,000 |
22,972,950 |
|
|
3% 12/15/20 |
|
1,890,000 |
3,305,232 |
|
|
|
31,505,508 |
|||
|
Software - 0.1% |
||||
|
TiVo, Inc. 4% 3/15/16 (f) |
|
8,310,000 |
11,018,229 |
|
|
TOTAL INFORMATION TECHNOLOGY |
60,368,485 |
|||
|
MATERIALS - 0.1% |
||||
|
Metals & Mining - 0.1% |
||||
|
Newmont Mining Corp. 1.25% 7/15/14 |
|
5,130,000 |
5,130,000 |
|
|
UTILITIES - 0.1% |
||||
|
Electric Utilities - 0.1% |
||||
|
NRG Yield, Inc. 3.5% 2/1/19 (f) |
|
6,400,000 |
7,576,000 |
|
|
TOTAL CONVERTIBLE BONDS |
219,941,038 |
|||
|
Nonconvertible Bonds - 0.3% |
||||
|
INDUSTRIALS - 0.2% |
||||
|
Commercial Services & Supplies - 0.2% |
||||
|
APX Group, Inc.: |
|
|
|
|
|
6.375% 12/1/19 |
|
2,585,000 |
2,681,938 |
|
|
8.75% 12/1/20 |
|
6,530,000 |
6,627,950 |
|
|
|
9,309,888 |
|||
|
MATERIALS - 0.1% |
||||
|
Metals & Mining - 0.1% |
||||
|
JMC Steel Group, Inc. 8.25% 3/15/18 (f) |
|
3,775,000 |
3,850,500 |
|
|
Walter Energy, Inc. 8.5% 4/15/21 |
|
5,250,000 |
2,940,000 |
|
|
|
6,790,500 |
|||
|
TOTAL NONCONVERTIBLE BONDS |
16,100,388 |
|||
|
TOTAL CORPORATE BONDS (Cost $196,529,630) |
|
|||
|
Preferred Securities - 0.0% |
||||
|
|
Principal Amount (d) |
Value |
||
|
FINANCIALS - 0.0% |
||||
|
Diversified Financial Services - 0.0% |
||||
|
Baggot Securities Ltd. 10.24% (f)(g) (Cost $3,931,534) |
EUR |
2,560,000 |
$ 3,987,034 |
|
|
Money Market Funds - 4.1% |
|||
|
Shares |
Value |
||
|
Fidelity Cash Central Fund, 0.11% (b) |
221,223,706 |
$ 221,223,706 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
46,989,775 |
46,989,775 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $268,213,481) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $5,101,671,927) |
6,666,998,665 |
||
|
NET OTHER ASSETS (LIABILITIES) - (1.1)% |
(74,153,276) |
||
|
NET ASSETS - 100% |
$ 6,592,845,389 |
||
|
Written Options |
|||||||
|
Expiration Date/Exercise Price |
Number of Contracts |
Premium |
Value |
||||
|
Call Options |
|||||||
|
Altria Group, Inc. |
9/20/14 - |
8,874 |
$ 480,161 |
$ (545,751) |
|||
|
Applied Materials, Inc. |
7/19/14 - |
4,910 |
201,315 |
(220,950) |
|||
|
BlackRock, Inc. Class A |
10/18/14 - |
476 |
412,873 |
(597,380) |
|||
|
Broadcom Corp. Class A |
8/16/14 - |
6,119 |
348,185 |
(131,558) |
|||
|
C.H. Robinson Worldwide, Inc. |
7/19/14 - |
1,766 |
107,653 |
(278,145) |
|||
|
CIT Group, Inc. |
7/19/14 - |
937 |
99,695 |
(7,496) |
|||
|
Cummins, Inc. |
9/20/14 - |
646 |
214,726 |
(122,740) |
|||
|
McDonald's Corp. |
9/20/14 - |
3,105 |
315,523 |
(254,610) |
|||
|
Microsoft Corp. |
7/19/14 - |
3,690 |
273,829 |
(149,445) |
|||
|
Philip Morris International, Inc. |
7/19/14 - |
2,067 |
110,437 |
(12,402) |
|||
|
PPL Corp. |
7/19/14 - |
6,138 |
147,309 |
(951,390) |
|||
|
Prudential Financial, Inc. |
9/20/14 - |
1,483 |
218,604 |
(150,525) |
|||
|
Stanley Black & Decker, Inc. |
7/19/14 - |
1,900 |
286,134 |
(598,500) |
|||
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
7/19/14 - |
2,348 |
120,943 |
(34,046) |
|||
|
Yum! Brands, Inc. |
7/19/14 - |
1,291 |
95,909 |
(130,391) |
|||
|
TOTAL WRITTEN OPTIONS |
$ 3,433,296 |
$ (4,185,329) |
|||||
|
Currency Abbreviations |
||
|
EUR |
- |
European Monetary Unit |
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Amount is stated in United States dollars unless otherwise noted. |
|
(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 $95,383,191 or 1.4% of net assets. |
|
(g) Security is perpetual in nature with no stated maturity date. |
|
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
(i) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $250,280,242. |
|
(j) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
|
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $45,492,234 or 0.7% of net assets. |
|
Additional information on each restricted holding is as follows: |
|
Security |
Acquisition Date |
Acquisition Cost |
|
Beazer Pre-Owned Rental |
5/3/12 - 10/23/12 |
$ 5,156,000 |
|
First Data Holdings, Inc. Class B |
6/26/14 |
$ 25,364,364 |
|
New Academy Holding Co. LLC unit |
8/1/11 |
$ 13,406,880 |
|
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 |
$ 73,720 |
|
Fidelity Securities Lending Cash Central Fund |
203,103 |
|
Total |
$ 276,823 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 445,997,054 |
$ 430,671,998 |
$ - |
$ 15,325,056 |
|
Consumer Staples |
672,284,039 |
668,692,521 |
3,591,518 |
- |
|
Energy |
989,664,657 |
989,664,657 |
- |
- |
|
Financials |
1,575,055,046 |
1,532,544,652 |
37,707,580 |
4,802,814 |
|
Health Care |
531,833,131 |
491,221,279 |
40,611,852 |
- |
|
Industrials |
596,055,227 |
596,055,227 |
- |
- |
|
Information Technology |
779,107,177 |
744,061,114 |
9,681,699 |
25,364,364 |
|
Materials |
89,850,210 |
89,850,210 |
- |
- |
|
Telecommunication Services |
225,971,605 |
193,901,153 |
32,070,452 |
- |
|
Utilities |
252,938,578 |
231,149,372 |
21,789,206 |
- |
|
Corporate Bonds |
236,041,426 |
5,130,000 |
230,911,426 |
- |
|
Preferred Securities |
3,987,034 |
- |
3,987,034 |
- |
|
Money Market Funds |
268,213,481 |
268,213,481 |
- |
- |
|
Total Investments in Securities: |
$ 6,666,998,665 |
$ 6,241,155,664 |
$ 380,350,767 |
$ 45,492,234 |
|
Derivative Instruments: |
||||
|
Liabilities |
||||
|
Written Options |
$ (4,185,329) |
$ (4,185,329) |
$ - |
$ - |
|
Value of Derivative Instruments |
|
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of June 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
|
Primary Risk Exposure / |
Value |
|
|
|
Asset |
Liability |
|
Equity Risk |
||
|
Written Options (a) |
$ - |
$ (4,185,329) |
|
Total Value of Derivatives |
$ - |
$ (4,185,329) |
|
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item. |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
89.5% |
|
United Kingdom |
3.6% |
|
Canada |
2.0% |
|
Switzerland |
1.2% |
|
Others (Individually Less Than 1%) |
3.7% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $45,347,915) - See accompanying schedule: Unaffiliated issuers (cost $4,833,458,446) |
$ 6,398,785,184 |
|
|
Fidelity Central Funds (cost $268,213,481) |
268,213,481 |
|
|
Total Investments (cost $5,101,671,927) |
|
$ 6,666,998,665 |
|
Cash |
|
670,471 |
|
Receivable for investments sold |
|
7,977,365 |
|
Receivable for fund shares sold |
|
1,500,122 |
|
Dividends receivable |
|
12,051,599 |
|
Interest receivable |
|
1,799,517 |
|
Distributions receivable from Fidelity Central Funds |
|
65,285 |
|
Other receivables |
|
417,293 |
|
Total assets |
|
6,691,480,317 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 13,152,309 |
|
|
Delayed delivery |
25,364,364 |
|
|
Payable for fund shares redeemed |
5,145,114 |
|
|
Accrued management fee |
2,461,532 |
|
|
Distribution and service plan fees payable |
408,835 |
|
|
Written options, at value (premium received $3,433,296) |
4,185,329 |
|
|
Other affiliated payables |
484,359 |
|
|
Other payables and accrued expenses |
443,311 |
|
|
Collateral on securities loaned, at value |
46,989,775 |
|
|
Total liabilities |
|
98,634,928 |
|
|
|
|
|
Net Assets |
|
$ 6,592,845,389 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 4,622,203,835 |
|
Undistributed net investment income |
|
104,213,595 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
301,811,675 |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
1,564,616,284 |
|
Net Assets |
|
$ 6,592,845,389 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 25.03 |
|
|
|
|
|
Service Class: |
|
$ 24.92 |
|
|
|
|
|
Service Class 2: |
|
$ 24.56 |
|
|
|
|
|
Service Class 2R: |
|
$ 24.40 |
|
|
|
|
|
Investor Class: |
|
$ 24.94 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 97,719,645 |
|
Special dividends |
|
22,197,225 |
|
Interest |
|
3,684,328 |
|
Income from Fidelity Central Funds |
|
276,823 |
|
Total income |
|
123,878,021 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 14,329,873 |
|
|
Transfer agent fees |
2,218,402 |
|
|
Distribution and service plan fees |
2,385,787 |
|
|
Accounting and security lending fees |
570,300 |
|
|
Custodian fees and expenses |
67,001 |
|
|
Independent trustees' compensation |
13,086 |
|
|
Appreciation in deferred trustee compensation account |
156 |
|
|
Audit |
47,756 |
|
|
Legal |
8,341 |
|
|
Miscellaneous |
29,680 |
|
|
Total expenses before reductions |
19,670,382 |
|
|
Expense reductions |
(77,956) |
19,592,426 |
|
Net investment income (loss) |
|
104,285,595 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
332,007,113 |
|
|
Foreign currency transactions |
18,046 |
|
|
Written options |
3,686,555 |
|
|
Total net realized gain (loss) |
|
335,711,714 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
38,980,720 |
|
|
Assets and liabilities in foreign currencies |
(34,261) |
|
|
Written options |
2,517,579 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
41,464,038 |
|
Net gain (loss) |
|
377,175,752 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 481,461,347 |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 104,285,595 |
$ 144,508,656 |
|
Net realized gain (loss) |
335,711,714 |
426,826,124 |
|
Change in net unrealized appreciation (depreciation) |
41,464,038 |
930,403,753 |
|
Net increase (decrease) in net assets resulting from operations |
481,461,347 |
1,501,738,533 |
|
Distributions to shareholders from net investment income |
- |
(147,533,373) |
|
Distributions to shareholders from net realized gain |
(22,861,605) |
(403,959,921) |
|
Total distributions |
(22,861,605) |
(551,493,294) |
|
Share transactions - net increase (decrease) |
(324,269,241) |
(90,118,096) |
|
Redemption fees |
3,177 |
144 |
|
Total increase (decrease) in net assets |
134,333,678 |
860,127,287 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
6,458,511,711 |
5,598,384,424 |
|
End of period (including undistributed net investment income of $104,213,595 and distributions in excess of net investment income of $72,000, respectively) |
$ 6,592,845,389 |
$ 6,458,511,711 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 23.29 |
$ 19.94 |
$ 18.69 |
$ 19.02 |
$ 16.81 |
$ 13.18 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.40 H |
.56 |
.59 |
.48 |
.30 |
.33 |
|
Net realized and unrealized gain (loss) |
1.42 |
4.96 |
2.59 |
(.31) |
2.24 |
3.64 |
|
Total from investment operations |
1.82 |
5.52 |
3.18 |
.17 |
2.54 |
3.97 |
|
Distributions from net investment income |
- |
(.60) |
(.63) I |
(.50) |
(.33) |
(.34) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.17) |
(1.93) |
(.50) |
(.33) |
(.34) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 25.03 |
$ 23.29 |
$ 19.94 |
$ 18.69 |
$ 19.02 |
$ 16.81 |
|
Total Return B, C, D |
7.87% |
28.15% |
17.31% |
.97% |
15.15% |
30.21% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.54%A |
.55% |
.55% |
.56% |
.56% |
.58% |
|
Expenses net of fee waivers, if any |
.54%A |
.54% |
.55% |
.55% |
.55% |
.58% |
|
Expenses net of all reductions |
.54%A |
.54% |
.54% |
.54% |
.55% |
.58% |
|
Net investment income (loss) |
3.36% A,H |
2.43% |
2.94% |
2.48% |
1.71% |
2.29% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 3,996,200 |
$ 3,947,728 |
$ 3,461,083 |
$ 3,345,762 |
$ 3,798,310 |
$ 3,771,733 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.66%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 23.20 |
$ 19.87 |
$ 18.63 |
$ 18.96 |
$ 16.75 |
$ 13.14 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.38 H |
.53 |
.57 |
.46 |
.28 |
.31 |
|
Net realized and unrealized gain (loss) |
1.42 |
4.94 |
2.57 |
(.31) |
2.24 |
3.63 |
|
Total from investment operations |
1.80 |
5.47 |
3.14 |
.15 |
2.52 |
3.94 |
|
Distributions from net investment income |
- |
(.57) |
(.60) I |
(.48) |
(.31) |
(.33) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.14) |
(1.90) |
(.48) |
(.31) |
(.33) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.92 |
$ 23.20 |
$ 19.87 |
$ 18.63 |
$ 18.96 |
$ 16.75 |
|
Total Return B, C, D |
7.81% |
28.01% |
17.19% |
.86% |
15.09% |
30.03% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.64% A |
.65% |
.65% |
.66% |
.66% |
.68% |
|
Expenses net of fee waivers, if any |
.64% A |
.64% |
.65% |
.66% |
.65% |
.68% |
|
Expenses net of all reductions |
.64% A |
.64% |
.64% |
.64% |
.65% |
.68% |
|
Net investment income (loss) |
3.26% A,H |
2.33% |
2.84% |
2.38% |
1.61% |
2.19% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 400,887 |
$ 391,896 |
$ 350,493 |
$ 347,999 |
$ 414,431 |
$ 430,383 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.56%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 22.88 |
$ 19.62 |
$ 18.41 |
$ 18.75 |
$ 16.57 |
$ 13.00 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.36 H |
.49 |
.53 |
.42 |
.25 |
.29 |
|
Net realized and unrealized gain (loss) |
1.40 |
4.88 |
2.55 |
(.31) |
2.21 |
3.58 |
|
Total from investment operations |
1.76 |
5.37 |
3.08 |
.11 |
2.46 |
3.87 |
|
Distributions from net investment income |
- |
(.54) |
(.57) I |
(.45) |
(.28) |
(.30) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.11) |
(1.87) |
(.45) |
(.28) |
(.30) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.56 |
$ 22.88 |
$ 19.62 |
$ 18.41 |
$ 18.75 |
$ 16.57 |
|
Total Return B, C, D |
7.75% |
27.83% |
17.05% |
.66% |
14.92% |
29.88% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.79% A |
.80% |
.80% |
.81% |
.81% |
.83% |
|
Expenses net of fee waivers, if any |
.79% A |
.79% |
.80% |
.81% |
.80% |
.83% |
|
Expenses net of all reductions |
.79%A |
.79% |
.79% |
.80% |
.80% |
.83% |
|
Net investment income (loss) |
3.11% A,H |
2.18% |
2.69% |
2.23% |
1.46% |
2.04% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 1,796,599 |
$ 1,755,769 |
$ 1,560,856 |
$ 1,457,230 |
$ 1,619,356 |
$ 1,558,421 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.41%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 22.74 |
$ 19.53 |
$ 18.34 |
$ 18.66 |
$ 16.49 |
$ 12.93 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.36 H |
.49 |
.53 |
.42 |
.25 |
.28 |
|
Net realized and unrealized gain (loss) |
1.38 |
4.84 |
2.54 |
(.30) |
2.20 |
3.58 |
|
Total from investment operations |
1.74 |
5.33 |
3.07 |
.12 |
2.45 |
3.86 |
|
Distributions from net investment income |
- |
(.55) |
(.58) I |
(.44) |
(.28) |
(.30) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.12) |
(1.88) |
(.44) |
(.28) |
(.30) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.40 |
$ 22.74 |
$ 19.53 |
$ 18.34 |
$ 18.66 |
$ 16.49 |
|
Total Return B, C, D |
7.71% |
27.79% |
17.05% |
.70% |
14.90% |
29.95% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.79% A |
.79% |
.80% |
.81% |
.81% |
.83% |
|
Expenses net of fee waivers, if any |
.79% A |
.79% |
.80% |
.80% |
.80% |
.83% |
|
Expenses net of all reductions |
.79% A |
.79% |
.79% |
.79% |
.80% |
.83% |
|
Net investment income (loss) |
3.11% A,H |
2.19% |
2.69% |
2.23% |
1.46% |
2.04% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 14,138 |
$ 11,980 |
$ 5,640 |
$ 3,956 |
$ 5,405 |
$ 5,259 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.41%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended June 30, 2014 |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 23.21 |
$ 19.89 |
$ 18.64 |
$ 18.97 |
$ 16.77 |
$ 13.15 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.39 H |
.54 |
.57 |
.46 |
.28 |
.31 |
|
Net realized and unrealized gain (loss) |
1.42 |
4.93 |
2.59 |
(.31) |
2.23 |
3.64 |
|
Total from investment operations |
1.81 |
5.47 |
3.16 |
.15 |
2.51 |
3.95 |
|
Distributions from net investment income |
- |
(.58) |
(.61) I |
(.48) |
(.31) |
(.33) |
|
Distributions from net realized gain |
(.08) |
(1.57) |
(1.30) I |
- |
- |
- |
|
Total distributions |
(.08) |
(2.15) |
(1.91) |
(.48) |
(.31) |
(.33) |
|
Redemption fees added to paid in capital E,K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 24.94 |
$ 23.21 |
$ 19.89 |
$ 18.64 |
$ 18.97 |
$ 16.77 |
|
Total Return B, C, D |
7.85% |
27.99% |
17.27% |
.89% |
15.04% |
30.09% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.62% A |
.63% |
.64% |
.64% |
.65% |
.68% |
|
Expenses net of fee waivers, if any |
.62% A |
.62% |
.64% |
.64% |
.64% |
.68% |
|
Expenses net of all reductions |
.62% A |
.62% |
.63% |
.63% |
.64% |
.68% |
|
Net investment income (loss) |
3.28% A,H |
2.35% |
2.85% |
2.39% |
1.62% |
2.19% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 385,022 |
$ 351,139 |
$ 220,311 |
$ 178,499 |
$ 165,946 |
$ 147,358 |
|
Portfolio turnover rate G |
39% A |
32% |
48% |
96% |
29% |
29% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.58%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Equity-Income PortfolioSM (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Service Class 2R shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price 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.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, 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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect 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 are included in the accompanying Statement of Assets and Liabilities.
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 dividends 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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, market discount, contingent interest, partnerships, deferred trustees compensation, equity-debt classifications and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 1,748,707,742 |
|
Gross unrealized depreciation |
(186,062,280) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 1,562,645,462 |
|
|
|
|
Tax cost |
$ 5,104,353,203 |
Trading (Redemption) Fees. Service Class 2R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
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 options. 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.
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.
Semiannual Report
4. Derivative Instruments - continued
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options" and are representative of volume of activity during the period.
During the period, the Fund recognized net realized gain (loss) of $3,686,555 and a change in net unrealized appreciation (depreciation) of $2,517,579 related to its investment in written options. This amount is included in the Statement of Operations.
The following is a summary of the Fund's written options activity:
|
Written Options |
Number of Contracts |
Amount of Premiums |
|
Outstanding at beginning of period |
31,690 |
$ 1,867,358 |
|
Options Opened |
129,753 |
9,850,465 |
|
Options Exercised |
(44,843) |
(3,667,899) |
|
Options Closed |
(36,287) |
(2,267,315) |
|
Options Expired |
(34,563) |
(2,349,313) |
|
Outstanding at end of period |
45,750 |
$ 3,433,296 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,203,902,918 and $1,488,862,918, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .45% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 193,027 |
|
Service Class 2 |
2,176,525 |
|
Service Class 2R |
16,235 |
|
|
$ 2,385,787 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.15% for Investor Class) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 1,261,594 |
|
Service Class |
125,924 |
|
Service Class 2 |
569,105 |
|
Service Class 2R |
4,211 |
|
Investor Class |
257,568 |
|
|
$ 2,218,402 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,795 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5,852 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $240,540. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $203,103, including $413 from securities loaned to FCM.
9. 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 $77,950 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
Semiannual Report
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 92,568,520 |
|
Service Class |
- |
8,840,014 |
|
Service Class 2 |
- |
37,705,026 |
|
Service Class 2R |
- |
258,073 |
|
Investor Class |
- |
8,161,740 |
|
Total |
$ - |
$ 147,533,373 |
|
From net realized gain |
|
|
|
Initial Class |
$ 13,890,337 |
$ 245,504,561 |
|
Service Class |
1,381,568 |
24,485,710 |
|
Service Class 2 |
6,319,415 |
111,276,322 |
|
Service Class 2R |
44,475 |
724,327 |
|
Investor Class |
1,225,810 |
21,969,001 |
|
Total |
$ 22,861,605 |
$ 403,959,921 |
11. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Initial Class |
|
|
|
|
|
Shares sold |
2,016,326 |
5,939,757 |
$ 47,366,252 |
$ 136,791,018 |
|
Reinvestment of distributions |
617,623 |
15,117,940 |
13,890,337 |
338,073,081 |
|
Shares redeemed |
(12,485,353) |
(25,104,941) |
(292,066,622) |
(577,075,155) |
|
Net increase (decrease) |
(9,851,404) |
(4,047,244) |
$ (230,810,033) |
$ (102,211,056) |
|
Service Class |
|
|
|
|
|
Shares sold |
335,848 |
522,521 |
$ 7,964,184 |
$ 11,868,622 |
|
Reinvestment of distributions |
61,677 |
1,495,670 |
1,381,568 |
33,325,724 |
|
Shares redeemed |
(1,203,357) |
(2,763,995) |
(28,165,433) |
(62,879,133) |
|
Net increase (decrease) |
(805,832) |
(745,804) |
$ (18,819,681) |
$ (17,684,787) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
2,382,698 |
5,862,575 |
$ 55,158,163 |
$ 132,392,944 |
|
Reinvestment of distributions |
286,076 |
6,780,471 |
6,319,415 |
148,981,348 |
|
Shares redeemed |
(6,248,901) |
(15,448,401) |
(145,105,211) |
(348,570,665) |
|
Net increase (decrease) |
(3,580,127) |
(2,805,355) |
$ (83,627,633) |
$ (67,196,373) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
90,479 |
253,817 |
$ 2,071,086 |
$ 5,683,428 |
|
Reinvestment of distributions |
2,026 |
44,961 |
44,475 |
982,400 |
|
Shares redeemed |
(40,049) |
(60,780) |
(937,155) |
(1,351,791) |
|
Net increase (decrease) |
52,456 |
237,998 |
$ 1,178,406 |
$ 5,314,037 |
|
Investor Class |
|
|
|
|
|
Shares sold |
1,174,683 |
3,800,857 |
$ 27,838,855 |
$ 86,969,508 |
|
Reinvestment of distributions |
54,699 |
1,351,634 |
1,225,810 |
30,130,741 |
|
Shares redeemed |
(916,798) |
(1,103,166) |
(21,254,965) |
(25,440,166) |
|
Net increase (decrease) |
312,584 |
4,049,325 |
$ 7,809,700 |
$ 91,660,083 |
12. 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 13% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 18% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
VIPEI2R-SANN-0814 1.833447.108
Fidelity® Variable Insurance Products:
Overseas Portfolio
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
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|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
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Investments |
A complete list of the fund's investments with their market values. |
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Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
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Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.83% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 992.00 |
$ 4.10 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.68 |
$ 4.16 |
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Service Class |
.93% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 991.50 |
$ 4.59 |
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HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Service Class 2 |
1.08% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 990.50 |
$ 5.33 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.44 |
$ 5.41 |
|
Initial Class R |
.83% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 992.00 |
$ 4.10 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.68 |
$ 4.16 |
|
Service Class R |
.93% |
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|
|
|
Actual |
|
$ 1,000.00 |
$ 991.50 |
$ 4.59 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Service Class 2R |
1.08% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 990.90 |
$ 5.33 |
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HypotheticalA |
|
$ 1,000.00 |
$ 1,019.44 |
$ 5.41 |
|
Investor Class R |
.91% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 991.50 |
$ 4.49 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.28 |
$ 4.56 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Geographic Diversification (% of fund's net assets) |
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|
As of June 30, 2014 |
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 |
United Kingdom |
18.5% |
|
 |
Japan |
17.7% |
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 |
France |
9.0% |
|
 |
United States of America* |
8.3% |
|
 |
Switzerland |
7.6% |
|
 |
Germany |
4.9% |
|
 |
Cayman Islands |
4.8% |
|
 |
Denmark |
3.0% |
|
 |
South Africa |
2.9% |
|
 |
Other |
23.3% |
|
|
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
|
* Includes Short-Term Investments and Net Other Assets. |
|
As of December 31, 2013 |
|||
|
Japan |
18.9% |
|
|
United Kingdom |
17.1% |
|
|
United States of America* |
8.0% |
|
|
France |
7.9% |
|
|
Cayman Islands |
7.9% |
|
|
Switzerland |
7.2% |
|
|
Germany |
5.5% |
|
|
Sweden |
3.2% |
|
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Ireland |
3.1% |
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Other |
21.2% |
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Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
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* Includes Short-Term Investments and Net Other Assets. |
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Asset Allocation as of June 30, 2014 |
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|
|
% of fund's |
% of fund's net assets |
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Stocks |
99.8 |
98.1 |
|
Short-Term Investments and Net Other Assets (Liabilities) |
0.2 |
1.9 |
|
Top Ten Stocks as of June 30, 2014 |
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|
|
% of fund's |
% of fund's net assets |
|
Naspers Ltd. Class N (South Africa, Media) |
2.5 |
1.6 |
|
Nestle SA (Switzerland, Food Products) |
2.3 |
2.2 |
|
Sanofi SA (France, Pharmaceuticals) |
2.1 |
2.0 |
|
Rakuten, Inc. (Japan, Internet & Catalog Retail) |
1.6 |
1.6 |
|
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) |
1.6 |
1.1 |
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Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) |
1.5 |
0.9 |
|
SoftBank Corp. (Japan, Wireless Telecommunication Services) |
1.4 |
2.1 |
|
HSBC Holdings PLC (United Kingdom, Financials & Banks) |
1.3 |
1.3 |
|
Naver Corp. (Korea (South), Internet Software & Services) |
1.2 |
0.2 |
|
Toyota Motor Corp. (Japan, Automobiles) |
1.2 |
1.4 |
|
|
16.7 |
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|
Market Sectors as of June 30, 2014 |
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|
|
% of fund's |
% of fund's net assets |
|
Consumer Discretionary |
26.3 |
27.2 |
|
Financials |
18.2 |
18.8 |
|
Information Technology |
15.0 |
15.0 |
|
Consumer Staples |
12.8 |
11.4 |
|
Health Care |
9.5 |
7.1 |
|
Industrials |
6.1 |
7.3 |
|
Energy |
5.1 |
3.1 |
|
Materials |
5.1 |
5.6 |
|
Telecommunication Services |
1.7 |
2.6 |
Semiannual Report
Showing Percentage of Net Assets
|
Common Stocks - 98.4% |
|||
|
Shares |
Value |
||
|
Australia - 2.7% |
|||
|
AMP Ltd. |
423,882 |
$ 2,118,408 |
|
|
BHP Billiton Ltd. |
318,002 |
10,845,351 |
|
|
Carsales.com Ltd. |
320,637 |
3,201,830 |
|
|
CSL Ltd. |
161,275 |
10,120,542 |
|
|
Fortescue Metals Group Ltd. |
258,379 |
1,059,827 |
|
|
G8 Education Ltd. |
1,358,273 |
5,891,604 |
|
|
iSelect Ltd. |
6,177,716 |
6,699,069 |
|
|
Macquarie Group Ltd. |
99,742 |
5,608,304 |
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|
Rio Tinto Ltd. |
24,301 |
1,359,067 |
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TOTAL AUSTRALIA |
46,904,002 |
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Bailiwick of Jersey - 0.4% |
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Glencore Xstrata PLC |
1,246,535 |
6,945,023 |
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Belgium - 1.0% |
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Ageas |
66,760 |
2,663,361 |
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Anheuser-Busch InBev SA NV |
33,577 |
3,858,009 |
|
|
Hamon & Compagnie International SA (a) |
62,254 |
1,299,125 |
|
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KBC Groupe SA (a) |
58,487 |
3,183,428 |
|
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UCB SA |
72,400 |
6,129,661 |
|
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TOTAL BELGIUM |
17,133,584 |
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|
Bermuda - 0.7% |
|||
|
Clear Media Ltd. |
2,035,000 |
1,950,874 |
|
|
Oriental Watch Holdings Ltd. |
7,028,000 |
1,650,361 |
|
|
Signet Jewelers Ltd. |
79,400 |
8,780,846 |
|
|
TOTAL BERMUDA |
12,382,081 |
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|
Brazil - 1.5% |
|||
|
Anhanguera Educacional Participacoes SA |
579,300 |
4,824,223 |
|
|
BB Seguridade Participacoes SA |
636,600 |
9,346,596 |
|
|
Cielo SA |
583,180 |
12,009,364 |
|
|
TOTAL BRAZIL |
26,180,183 |
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|
British Virgin Islands - 0.5% |
|||
|
Gem Diamonds Ltd. (a) |
931,919 |
2,280,687 |
|
|
Mail.Ru Group Ltd.: |
|
|
|
|
GDR (a)(e) |
6,600 |
232,650 |
|
|
GDR (Reg. S) (a) |
200,099 |
7,053,490 |
|
|
TOTAL BRITISH VIRGIN ISLANDS |
9,566,827 |
||
|
Canada - 0.4% |
|||
|
Entertainment One Ltd. |
1,006,000 |
5,337,172 |
|
|
MDC Partners, Inc. Class A (sub. vtg.) |
37,700 |
810,173 |
|
|
Performance Sports Group Ltd. (a) |
55,161 |
949,118 |
|
|
TOTAL CANADA |
7,096,463 |
||
|
Cayman Islands - 4.8% |
|||
|
58.com, Inc. ADR |
84,000 |
4,541,040 |
|
|
Autohome, Inc. ADR Class A (d) |
39,900 |
1,373,757 |
|
|
Baidu.com, Inc. sponsored ADR (a) |
50,100 |
9,359,181 |
|
|
Biostime International Holdings Ltd. |
1,233,500 |
6,843,582 |
|
|
Bitauto Holdings Ltd. ADR (a) |
77,700 |
3,783,990 |
|
|
|
|||
|
Shares |
Value |
||
|
Cimc Enric Holdings Ltd. |
1,596,000 |
$ 2,100,434 |
|
|
Ctrip.com International Ltd. sponsored ADR (a) |
115,800 |
7,415,832 |
|
|
GCL-Poly Energy Holdings Ltd. (a) |
19,483,000 |
6,510,757 |
|
|
Greatview Aseptic Pack Co. Ltd. |
4,056,000 |
2,773,637 |
|
|
Hengdeli Holdings Ltd. (d) |
38,669,800 |
6,735,682 |
|
|
Home Inns & Hotels Management, Inc. sponsored ADR (a) |
41,000 |
1,403,430 |
|
|
iKang Healthcare Group, Inc. sponsored ADR |
11,500 |
199,410 |
|
|
Qunar Cayman Islands Ltd. sponsored ADR (d) |
36,800 |
1,050,640 |
|
|
Shenguan Holdings Group Ltd. |
2,636,000 |
1,112,165 |
|
|
SouFun Holdings Ltd. ADR (d) |
429,900 |
4,208,721 |
|
|
Tencent Holdings Ltd. |
1,290,000 |
19,673,565 |
|
|
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) |
143,000 |
4,698,980 |
|
|
TOTAL CAYMAN ISLANDS |
83,784,803 |
||
|
China - 0.2% |
|||
|
TravelSky Technology Ltd. (H Shares) |
3,969,000 |
3,651,292 |
|
|
Denmark - 3.0% |
|||
|
Danske Bank A/S |
96,100 |
2,716,290 |
|
|
Novo Nordisk A/S: |
|
|
|
|
Series B |
80,625 |
3,721,083 |
|
|
Series B sponsored ADR |
521,500 |
24,088,085 |
|
|
Pandora A/S |
78,600 |
6,026,888 |
|
|
Vestas Wind Systems A/S (a) |
330,100 |
16,653,989 |
|
|
TOTAL DENMARK |
53,206,335 |
||
|
France - 9.0% |
|||
|
AXA SA |
114,920 |
2,746,718 |
|
|
AXA SA sponsored ADR |
135,400 |
3,246,892 |
|
|
Beneteau SA (a) |
196,900 |
3,589,926 |
|
|
BNP Paribas SA |
171,603 |
11,641,885 |
|
|
Bollore |
6,457 |
4,190,904 |
|
|
Danone SA |
178,815 |
13,296,408 |
|
|
Edenred SA (d) |
118,359 |
3,589,018 |
|
|
Gameloft Se (a) |
537,900 |
4,964,323 |
|
|
Havas SA |
938,800 |
7,709,137 |
|
|
Iliad SA |
19,126 |
5,781,273 |
|
|
LVMH Moet Hennessy - Louis Vuitton SA |
95,996 |
18,507,783 |
|
|
Pernod Ricard SA (d) |
80,600 |
9,679,061 |
|
|
Safran SA |
71,900 |
4,707,514 |
|
|
Sanofi SA |
139,290 |
14,805,071 |
|
|
Sanofi SA sponsored ADR |
404,222 |
21,492,484 |
|
|
Societe Generale Series A |
86,251 |
4,518,049 |
|
|
Solocal Group SA (a)(d) |
3,037,680 |
2,994,837 |
|
|
Total SA |
298,200 |
21,574,679 |
|
|
TOTAL FRANCE |
159,035,962 |
||
|
Germany - 3.5% |
|||
|
adidas AG |
78,800 |
7,981,425 |
|
|
Allianz SE |
85,343 |
14,244,926 |
|
|
Axel Springer Verlag AG |
116,600 |
7,176,734 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
Germany - continued |
|||
|
Bayer AG |
141,478 |
$ 19,982,819 |
|
|
Commerzbank AG (a) |
55,520 |
872,750 |
|
|
CTS Eventim AG |
182,524 |
5,209,793 |
|
|
Deutsche Bank AG |
74,681 |
2,624,663 |
|
|
Linde AG |
15,087 |
3,208,285 |
|
|
TOTAL GERMANY |
61,301,395 |
||
|
Greece - 0.2% |
|||
|
Greek Organization of Football Prognostics SA |
192,500 |
3,426,673 |
|
|
Hong Kong - 1.3% |
|||
|
AIA Group Ltd. |
2,299,400 |
11,555,743 |
|
|
Television Broadcasts Ltd. |
1,741,000 |
11,310,300 |
|
|
TOTAL HONG KONG |
22,866,043 |
||
|
India - 0.2% |
|||
|
INFO Edge India Ltd. |
90,742 |
1,018,241 |
|
|
Just Dial Ltd. |
85,554 |
2,082,227 |
|
|
TOTAL INDIA |
3,100,468 |
||
|
Ireland - 2.2% |
|||
|
C&C Group PLC |
3,139,300 |
19,537,335 |
|
|
Glanbia PLC |
451,000 |
6,805,448 |
|
|
Kingspan Group PLC (United Kingdom) |
461,800 |
7,771,492 |
|
|
Paddy Power PLC (Ireland) |
69,200 |
4,548,267 |
|
|
TOTAL IRELAND |
38,662,542 |
||
|
Isle of Man - 0.3% |
|||
|
Playtech Ltd. |
436,355 |
4,603,886 |
|
|
Israel - 0.3% |
|||
|
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. |
80,100 |
4,101,288 |
|
|
Sarine Technologies Ltd. |
1,024,000 |
2,110,578 |
|
|
TOTAL ISRAEL |
6,211,866 |
||
|
Italy - 2.3% |
|||
|
Assicurazioni Generali SpA |
158,500 |
3,474,715 |
|
|
Eni SpA |
203,400 |
5,562,924 |
|
|
Eni SpA sponsored ADR (d) |
67,900 |
3,727,710 |
|
|
Intesa Sanpaolo SpA |
3,425,600 |
10,569,102 |
|
|
Lottomatica SpA (d) |
82,800 |
2,023,798 |
|
|
Prada SpA |
993,000 |
7,027,515 |
|
|
Tod's SpA (d) |
58,771 |
7,480,163 |
|
|
TOTAL ITALY |
39,865,927 |
||
|
Japan - 17.7% |
|||
|
Cosmos Pharmaceutical Corp. |
111,300 |
11,746,711 |
|
|
Daiwa Securities Group, Inc. |
490,000 |
4,245,496 |
|
|
DENSO Corp. |
87,400 |
4,175,150 |
|
|
Dentsu, Inc. |
431,700 |
17,580,906 |
|
|
East Japan Railway Co. |
43,300 |
3,411,697 |
|
|
Enigmo, Inc. (a)(d) |
141,000 |
8,612,631 |
|
|
Fuji Media Holdings, Inc. |
161,900 |
2,815,421 |
|
|
|
|||
|
Shares |
Value |
||
|
Fujitsu Ltd. |
526,000 |
$ 3,941,238 |
|
|
Hitachi Ltd. |
1,572,000 |
11,521,295 |
|
|
Honda Motor Co. Ltd. |
277,700 |
9,690,277 |
|
|
Hoya Corp. |
170,400 |
5,665,429 |
|
|
Infomart Corp. |
52,700 |
1,218,973 |
|
|
Japan Tobacco, Inc. |
329,000 |
11,996,035 |
|
|
JTEKT Corp. |
219,800 |
3,708,657 |
|
|
Keyence Corp. |
31,120 |
13,608,394 |
|
|
Mitsubishi Corp. |
357,000 |
7,430,750 |
|
|
Mitsubishi Electric Corp. |
750,000 |
9,264,555 |
|
|
Mitsubishi UFJ Financial Group, Inc. |
2,681,700 |
16,462,198 |
|
|
Mitsubishi UFJ Financial Group, Inc. sponsored ADR (d) |
331,200 |
2,036,880 |
|
|
MS&AD Insurance Group Holdings, Inc. |
177,500 |
4,289,970 |
|
|
NEC Corp. |
897,000 |
2,862,783 |
|
|
NEXT Co. Ltd. (d) |
1,040,400 |
8,746,395 |
|
|
Nomura Holdings, Inc. |
505,000 |
3,577,071 |
|
|
Nomura Holdings, Inc. sponsored ADR |
57,600 |
404,928 |
|
|
Olympus Corp. (a) |
131,200 |
4,514,114 |
|
|
OMRON Corp. |
152,800 |
6,443,513 |
|
|
ORIX Corp. |
1,254,900 |
20,807,244 |
|
|
Pigeon Corp. |
35,100 |
1,851,516 |
|
|
Rakuten, Inc. |
2,222,200 |
28,731,038 |
|
|
Shinsei Bank Ltd. |
679,000 |
1,529,353 |
|
|
Ship Healthcare Holdings, Inc. |
121,900 |
4,277,945 |
|
|
SoftBank Corp. |
332,000 |
24,741,629 |
|
|
Sumitomo Mitsui Financial Group, Inc. |
314,400 |
13,191,257 |
|
|
Suzuki Motor Corp. |
128,100 |
4,018,699 |
|
|
THK Co. Ltd. |
158,500 |
3,736,720 |
|
|
Tokio Marine Holdings, Inc. |
136,600 |
4,496,019 |
|
|
Toshiba Corp. |
672,000 |
3,141,219 |
|
|
Toyota Motor Corp. |
314,000 |
18,800,003 |
|
|
Toyota Motor Corp. sponsored ADR |
23,600 |
2,823,976 |
|
|
TOTAL JAPAN |
312,118,085 |
||
|
Korea (South) - 1.9% |
|||
|
Korea Express Co. Ltd. (a) |
48,772 |
5,807,338 |
|
|
Naver Corp. |
26,582 |
21,932,777 |
|
|
Samsung Electronics Co. Ltd. |
4,728 |
6,176,300 |
|
|
TOTAL KOREA (SOUTH) |
33,916,415 |
||
|
Netherlands - 1.0% |
|||
|
AEGON NV |
259,400 |
2,262,863 |
|
|
ASML Holding NV (d) |
31,411 |
2,929,704 |
|
|
ING Groep NV (Certificaten Van Aandelen) (a) |
577,484 |
8,103,536 |
|
|
Yandex NV (a) |
100,100 |
3,567,564 |
|
|
TOTAL NETHERLANDS |
16,863,667 |
||
|
New Zealand - 0.1% |
|||
|
EBOS Group Ltd. |
225,407 |
1,991,313 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
Nigeria - 0.2% |
|||
|
Guinness Nigeria PLC |
941,861 |
$ 1,156,012 |
|
|
Nigerian Breweries PLC |
1,827,733 |
1,929,130 |
|
|
TOTAL NIGERIA |
3,085,142 |
||
|
Norway - 1.0% |
|||
|
DNB ASA |
447,800 |
8,191,130 |
|
|
Schibsted ASA (B Shares) |
164,400 |
8,563,268 |
|
|
Statoil ASA |
14,100 |
433,418 |
|
|
Statoil ASA sponsored ADR (d) |
30,700 |
946,481 |
|
|
TOTAL NORWAY |
18,134,297 |
||
|
Philippines - 0.6% |
|||
|
Alliance Global Group, Inc. |
9,464,300 |
6,313,149 |
|
|
Melco Crown Philippines Resort (a) |
18,428,700 |
4,841,098 |
|
|
TOTAL PHILIPPINES |
11,154,247 |
||
|
South Africa - 2.9% |
|||
|
Clicks Group Ltd. |
931,242 |
5,560,307 |
|
|
Life Healthcare Group Holdings Ltd. |
621,600 |
2,425,029 |
|
|
Naspers Ltd. Class N |
368,600 |
43,393,246 |
|
|
TOTAL SOUTH AFRICA |
51,378,582 |
||
|
Spain - 1.6% |
|||
|
Atresmedia Corporacion de Medios de Comunicacion SA |
547,000 |
7,834,614 |
|
|
Banco Bilbao Vizcaya Argentaria SA |
592,060 |
7,546,055 |
|
|
Banco Santander SA (Spain) |
342,941 |
3,583,481 |
|
|
Grifols SA ADR |
171,300 |
7,545,765 |
|
|
Mediaset Espana Comunicacion, S.A. (a) |
154,500 |
1,802,041 |
|
|
TOTAL SPAIN |
28,311,956 |
||
|
Sweden - 2.0% |
|||
|
Eniro AB (a) |
526,500 |
3,545,959 |
|
|
Investment AB Kinnevik (B Shares) |
205,100 |
8,742,355 |
|
|
Nordea Bank AB |
608,800 |
8,592,294 |
|
|
Svenska Cellulosa AB (SCA) (B Shares) |
439,000 |
11,438,948 |
|
|
Swedbank AB (A Shares) |
102,432 |
2,716,578 |
|
|
TOTAL SWEDEN |
35,036,134 |
||
|
Switzerland - 7.6% |
|||
|
Compagnie Financiere Richemont SA Series A |
184,902 |
19,401,366 |
|
|
Credit Suisse Group AG |
324,618 |
9,231,967 |
|
|
Credit Suisse Group AG sponsored ADR (d) |
61,252 |
1,737,719 |
|
|
Julius Baer Group Ltd. |
55,980 |
2,307,881 |
|
|
Nestle SA |
520,059 |
40,297,787 |
|
|
Sika AG (Bearer) |
1,800 |
7,359,946 |
|
|
Swatch Group AG (Bearer) |
29,240 |
17,656,766 |
|
|
Swiss Re Ltd. |
46,826 |
4,166,183 |
|
|
Syngenta AG (Switzerland) |
38,450 |
14,205,324 |
|
|
UBS AG |
591,162 |
10,838,669 |
|
|
|
|||
|
Shares |
Value |
||
|
UBS AG (NY Shares) |
184,900 |
$ 3,387,368 |
|
|
Zurich Insurance Group AG |
11,638 |
3,507,936 |
|
|
TOTAL SWITZERLAND |
134,098,912 |
||
|
Taiwan - 0.5% |
|||
|
Addcn Technology Co. Ltd. |
292,000 |
4,164,097 |
|
|
MediaTek, Inc. |
323,000 |
5,460,373 |
|
|
TOTAL TAIWAN |
9,624,470 |
||
|
Thailand - 0.2% |
|||
|
Thai Beverage PCL |
7,953,000 |
3,954,495 |
|
|
United Kingdom - 18.5% |
|||
|
Al Noor Hospitals Group PLC |
121,600 |
2,126,846 |
|
|
Anglo American PLC ADR |
96,800 |
1,187,736 |
|
|
AstraZeneca PLC (United Kingdom) |
226,455 |
16,847,724 |
|
|
Aviva PLC |
329,400 |
2,873,943 |
|
|
Barclays PLC |
2,571,808 |
9,368,524 |
|
|
Barclays PLC sponsored ADR |
199,250 |
2,911,043 |
|
|
BG Group PLC |
408,438 |
8,632,660 |
|
|
BHP Billiton PLC |
415,946 |
13,521,993 |
|
|
BP PLC |
881,993 |
7,766,765 |
|
|
Brammer PLC |
1,085,200 |
8,482,813 |
|
|
Burberry Group PLC |
391,000 |
9,923,604 |
|
|
Dechra Pharmaceuticals PLC |
159,300 |
1,972,449 |
|
|
Diageo PLC |
524,328 |
16,699,375 |
|
|
Dunelm Group PLC |
464,300 |
6,634,935 |
|
|
Exova Group Ltd. PLC (a) |
87,610 |
368,842 |
|
|
Foxtons Group PLC |
435,300 |
2,237,152 |
|
|
GlaxoSmithKline PLC |
447,200 |
11,906,788 |
|
|
Hays PLC |
1,328,400 |
3,321,472 |
|
|
HSBC Holdings PLC: |
|
|
|
|
(United Kingdom) |
929,678 |
9,431,656 |
|
|
sponsored ADR |
252,732 |
12,838,786 |
|
|
Informa PLC |
395,290 |
3,240,432 |
|
|
ITV PLC |
3,573,900 |
10,899,376 |
|
|
Johnson Matthey PLC |
164,298 |
8,716,568 |
|
|
Lloyds Banking Group PLC (a) |
11,728,444 |
14,907,713 |
|
|
M&C Saatchi PLC |
691,900 |
3,057,984 |
|
|
Moneysupermarket.com Group PLC |
1,165,300 |
3,755,256 |
|
|
Perform Group PLC (a) |
726,600 |
2,872,493 |
|
|
Poundland Group PLC (a) |
168,154 |
912,259 |
|
|
Prudential PLC |
220,034 |
5,041,299 |
|
|
Reckitt Benckiser Group PLC |
111,600 |
9,740,604 |
|
|
Rightmove PLC |
89,900 |
3,298,648 |
|
|
Rio Tinto PLC |
142,915 |
7,716,591 |
|
|
Rio Tinto PLC sponsored ADR (d) |
34,900 |
1,894,372 |
|
|
Rolls-Royce Group PLC |
322,708 |
5,903,900 |
|
|
Royal Bank of Scotland Group PLC (a) |
255,480 |
1,435,854 |
|
|
Royal Dutch Shell PLC: |
|
|
|
|
Class A (United Kingdom) |
632,388 |
26,132,007 |
|
|
Class B (United Kingdom) |
421,575 |
18,321,697 |
|
|
Royal Mail PLC |
117,700 |
1,005,145 |
|
|
SABMiller PLC |
351,000 |
20,351,764 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
United Kingdom - continued |
|||
|
Standard Chartered PLC (United Kingdom) |
271,168 |
$ 5,541,078 |
|
|
Sthree PLC |
229,400 |
1,526,214 |
|
|
Taylor Wimpey PLC |
1,623,100 |
3,166,662 |
|
|
Travis Perkins PLC |
198,400 |
5,561,694 |
|
|
William Hill PLC |
2,030,644 |
11,398,801 |
|
|
TOTAL UNITED KINGDOM |
325,453,517 |
||
|
United States of America - 8.1% |
|||
|
BlackRock, Inc. Class A |
17,000 |
5,433,200 |
|
|
Boston Beer Co., Inc. Class A (a) |
15,000 |
3,352,800 |
|
|
Dunkin' Brands Group, Inc. |
125,900 |
5,767,479 |
|
|
eBay, Inc. (a) |
122,700 |
6,142,362 |
|
|
Facebook, Inc. Class A (a) |
183,600 |
12,354,444 |
|
|
Gilead Sciences, Inc. (a) |
73,000 |
6,052,430 |
|
|
Google, Inc.: |
|
|
|
|
Class A (a) |
15,200 |
8,886,984 |
|
|
Class C (a) |
15,200 |
8,744,256 |
|
|
JD.com, Inc. sponsored ADR (d) |
13,100 |
373,481 |
|
|
Lorillard, Inc. |
89,900 |
5,481,203 |
|
|
MercadoLibre, Inc. (d) |
49,400 |
4,712,760 |
|
|
Monsanto Co. |
60,503 |
7,547,144 |
|
|
Monster Beverage Corp. (a) |
88,400 |
6,279,052 |
|
|
Nimble Storage, Inc. |
2,600 |
79,872 |
|
|
priceline.com, Inc. (a) |
8,360 |
10,057,080 |
|
|
Sprouts Farmers Market LLC (d) |
194,900 |
6,377,128 |
|
|
Tiffany & Co., Inc. |
114,700 |
11,498,675 |
|
|
TripAdvisor, Inc. (a) |
40,700 |
4,422,462 |
|
|
Trulia, Inc. (a)(d) |
77,800 |
3,686,164 |
|
|
Visa, Inc. Class A |
56,400 |
11,884,044 |
|
|
Yahoo!, Inc. (a) |
133,000 |
4,672,290 |
|
|
Zillow, Inc. (a)(d) |
57,800 |
8,261,354 |
|
|
TOTAL UNITED STATES OF AMERICA |
142,066,664 |
||
|
TOTAL COMMON STOCKS (Cost $1,366,229,709) |
|
||
|
Nonconvertible Preferred Stocks - 1.4% |
|||
|
Shares |
Value |
||
|
Germany - 1.4% |
|||
|
Sartorius AG (non-vtg.) |
39,500 |
$ 4,764,555 |
|
|
Volkswagen AG |
75,447 |
19,814,777 |
|
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $11,922,010) |
|
||
|
Money Market Funds - 3.6% |
|||
|
|
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) |
10,434,547 |
10,434,547 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
53,642,810 |
53,642,810 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $64,077,357) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 103.4% (Cost $1,442,229,076) |
1,821,769,940 |
|
NET OTHER ASSETS (LIABILITIES) - (3.4)% |
(59,593,315) |
||
|
NET ASSETS - 100% |
$ 1,762,176,625 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(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 $232,650 or 0.0% of net assets. |
|
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 |
$ 13,910 |
|
Fidelity Securities Lending Cash Central Fund |
499,695 |
|
Total |
$ 513,605 |
|
Other Information |
|
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 460,271,634 |
$ 365,713,745 |
$ 94,557,889 |
$ - |
|
Consumer Staples |
223,446,163 |
123,700,322 |
99,745,841 |
- |
|
Energy |
93,098,341 |
13,306,851 |
79,791,490 |
- |
|
Financials |
319,108,509 |
138,445,650 |
180,662,859 |
- |
|
Health Care |
169,663,093 |
113,590,368 |
56,072,725 |
- |
|
Industrials |
111,407,219 |
80,713,621 |
30,693,598 |
- |
|
Information Technology |
259,553,171 |
205,678,915 |
53,874,256 |
- |
|
Materials |
90,621,551 |
44,332,292 |
46,289,259 |
- |
|
Telecommunication Services |
30,522,902 |
5,781,273 |
24,741,629 |
- |
|
Money Market Funds |
64,077,357 |
64,077,357 |
- |
- |
|
Total Investments in Securities: |
$ 1,821,769,940 |
$ 1,155,340,394 |
$ 666,429,546 |
$ - |
|
The following is a summary of transfers between Level 1 and Level 2 for the period ended June 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
|
Transfers |
Total |
|
Level 1 to Level 2 |
$ 25,825,529 |
|
Level 2 to Level 1 |
$ 12,155,090 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $52,147,397) - See accompanying schedule: Unaffiliated issuers (cost $1,378,151,719) |
$ 1,757,692,583 |
|
|
Fidelity Central Funds (cost $64,077,357) |
64,077,357 |
|
|
Total Investments (cost $1,442,229,076) |
|
$ 1,821,769,940 |
|
Foreign currency held at value (cost $430,550) |
|
431,670 |
|
Receivable for investments sold |
|
|
|
Regular delivery |
|
5,097,917 |
|
Delayed delivery |
|
74,006 |
|
Receivable for fund shares sold |
|
1,188,415 |
|
Dividends receivable |
|
3,768,287 |
|
Distributions receivable from Fidelity Central Funds |
|
37,671 |
|
Other receivables |
|
270,857 |
|
Total assets |
|
1,832,638,763 |
|
|
|
|
|
Liabilities |
|
|
|
Payable to custodian bank |
$ 47,362 |
|
|
Payable for investments purchased |
13,757,749 |
|
|
Payable for fund shares redeemed |
939,189 |
|
|
Accrued management fee |
1,028,014 |
|
|
Distribution and service plan fees payable |
95,480 |
|
|
Other affiliated payables |
183,569 |
|
|
Other payables and accrued expenses |
767,965 |
|
|
Collateral on securities loaned, at value |
53,642,810 |
|
|
Total liabilities |
|
70,462,138 |
|
|
|
|
|
Net Assets |
|
$ 1,762,176,625 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 1,589,220,253 |
|
Undistributed net investment income |
|
21,931,616 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(228,519,740) |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
379,544,496 |
|
Net Assets |
|
$ 1,762,176,625 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 20.47 |
|
|
|
|
|
Service Class: |
|
$ 20.38 |
|
|
|
|
|
Service Class 2: |
|
$ 20.27 |
|
|
|
|
|
Initial Class R: |
|
$ 20.42 |
|
|
|
|
|
Service Class R: |
|
$ 20.34 |
|
|
|
|
|
Service Class 2R: |
|
$ 20.07 |
|
|
|
|
|
Investor Class R: |
|
$ 20.40 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 25,178,482 |
|
Special dividends |
|
6,439,828 |
|
Income from Fidelity Central Funds |
|
513,605 |
|
Income before foreign taxes withheld |
|
32,131,915 |
|
Less foreign taxes withheld |
|
(2,273,089) |
|
Total income |
|
29,858,826 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 6,132,519 |
|
|
Transfer agent fees |
706,618 |
|
|
Distribution and service plan fees |
574,384 |
|
|
Accounting and security lending fees |
395,079 |
|
|
Custodian fees and expenses |
90,223 |
|
|
Independent trustees' compensation |
3,564 |
|
|
Appreciation in deferred trustee compensation account |
9 |
|
|
Audit |
38,897 |
|
|
Legal |
4,326 |
|
|
Miscellaneous |
7,519 |
|
|
Total expenses before reductions |
7,953,138 |
|
|
Expense reductions |
(12,251) |
7,940,887 |
|
Net investment income (loss) |
|
21,917,939 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
85,997,781 |
|
|
Foreign currency transactions |
(79,593) |
|
|
Total net realized gain (loss) |
|
85,918,188 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
(124,141,310) |
|
|
Assets and liabilities in foreign currencies |
31 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
(124,141,279) |
|
Net gain (loss) |
|
(38,223,091) |
|
Net increase (decrease) in net assets resulting from operations |
|
$ (16,305,152) |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 21,917,939 |
$ 20,795,086 |
|
Net realized gain (loss) |
85,918,188 |
93,790,660 |
|
Change in net unrealized appreciation (depreciation) |
(124,141,279) |
309,754,327 |
|
Net increase (decrease) in net assets resulting from operations |
(16,305,152) |
424,340,073 |
|
Distributions to shareholders from net investment income |
- |
(20,735,911) |
|
Distributions to shareholders from net realized gain |
(437,196) |
(6,041,894) |
|
Total distributions |
(437,196) |
(26,777,805) |
|
Share transactions - net increase (decrease) |
(29,136,090) |
(86,109,747) |
|
Redemption fees |
16,712 |
19,250 |
|
Total increase (decrease) in net assets |
(45,861,726) |
311,471,771 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
1,808,038,351 |
1,496,566,580 |
|
End of period (including undistributed net investment income of $21,931,616 and undistributed net investment income of $13,677, respectively) |
$ 1,762,176,625 |
$ 1,808,038,351 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.64 |
$ 16.09 |
$ 13.63 |
$ 16.77 |
$ 15.05 |
$ 12.17 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.26 H |
.25 |
.29 |
.26 |
.21 |
.28 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.63 |
2.53 |
(3.14) |
1.76 |
2.93 |
|
Total from investment operations |
(.16) |
4.88 |
2.82 |
(2.88) |
1.97 |
3.21 |
|
Distributions from net investment income |
- |
(.26) |
(.30) I |
(.23) |
(.22) |
(.29) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.33) |
(.36) |
(.26) |
(.25) |
(.33) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.47 |
$ 20.64 |
$ 16.09 |
$ 13.63 |
$ 16.77 |
$ 15.05 |
|
Total Return B, C, D |
(.80)% |
30.44% |
20.74% |
(17.16)% |
13.11% |
26.53% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.83% A |
.84% |
.85% |
.85% |
.86% |
.88% |
|
Expenses net of fee waivers, if any |
.83% A |
.84% |
.85% |
.85% |
.85% |
.88% |
|
Expenses net of all reductions |
.83% A |
.83% |
.83% |
.83% |
.83% |
.84% |
|
Net investment income (loss) |
2.58% A, H |
1.41% |
1.94% |
1.59% |
1.41% |
2.17% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 799,513 |
$ 829,382 |
$ 659,258 |
$ 598,862 |
$ 779,501 |
$ 758,018 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.83%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.56 |
$ 16.02 |
$ 13.58 |
$ 16.70 |
$ 14.99 |
$ 12.12 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.25 H |
.24 |
.28 |
.24 |
.19 |
.26 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.61 |
2.50 |
(3.12) |
1.75 |
2.93 |
|
Total from investment operations |
(.17) |
4.85 |
2.78 |
(2.88) |
1.94 |
3.19 |
|
Distributions from net investment income |
- |
(.24) |
(.29) I |
(.21) |
(.20) |
(.28) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.31) |
(.34) L |
(.24) |
(.23) |
(.32) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.38 |
$ 20.56 |
$ 16.02 |
$ 13.58 |
$ 16.70 |
$ 14.99 |
|
Total Return B, C, D |
(.85)% |
30.38% |
20.54% |
(17.23)% |
12.99% |
26.44% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.93% A |
.94% |
.95% |
.95% |
.96% |
.98% |
|
Expenses net of fee waivers, if any |
.93% A |
.94% |
.95% |
.95% |
.95% |
.98% |
|
Expenses net of all reductions |
.93% A |
.93% |
.93% |
.93% |
.93% |
.94% |
|
Net investment income (loss) |
2.48% A, H |
1.31% |
1.84% |
1.49% |
1.31% |
2.07% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 114,937 |
$ 118,920 |
$ 110,468 |
$ 108,921 |
$ 162,394 |
$ 171,252 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.73%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.34 per share is comprised of distributions from net investment income of $.286 and distributions from net realized gain of $.059 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.47 |
$ 15.95 |
$ 13.52 |
$ 16.62 |
$ 14.92 |
$ 12.07 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.23 H |
.21 |
.25 |
.21 |
.17 |
.24 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.59 |
2.50 |
(3.09) |
1.74 |
2.91 |
|
Total from investment operations |
(.19) |
4.80 |
2.75 |
(2.88) |
1.91 |
3.15 |
|
Distributions from net investment income |
- |
(.21) |
(.26) I |
(.19) |
(.18) |
(.26) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.28) |
(.32) |
(.22) |
(.21) |
(.30) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.27 |
$ 20.47 |
$ 15.95 |
$ 13.52 |
$ 16.62 |
$ 14.92 |
|
Total Return B, C, D |
(.95)% |
30.17% |
20.38% |
(17.34)% |
12.83% |
26.22% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
1.08% A |
1.09% |
1.10% |
1.10% |
1.11% |
1.12% |
|
Expenses net of fee waivers, if any |
1.08% A |
1.09% |
1.10% |
1.10% |
1.10% |
1.12% |
|
Expenses net of all reductions |
1.08% A |
1.08% |
1.08% |
1.08% |
1.08% |
1.09% |
|
Net investment income (loss) |
2.33% A, H |
1.16% |
1.69% |
1.34% |
1.16% |
1.93% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 299,186 |
$ 316,863 |
$ 349,364 |
$ 342,206 |
$ 461,033 |
$ 457,971 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.58%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.59 |
$ 16.05 |
$ 13.60 |
$ 16.73 |
$ 15.02 |
$ 12.14 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.26 H |
.25 |
.29 |
.26 |
.21 |
.28 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.62 |
2.52 |
(3.13) |
1.75 |
2.93 |
|
Total from investment operations |
(.16) |
4.87 |
2.81 |
(2.87) |
1.96 |
3.21 |
|
Distributions from net investment income |
- |
(.26) |
(.30) I |
(.23) |
(.22) |
(.29) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.33) |
(.36) |
(.26) |
(.25) |
(.33) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.42 |
$ 20.59 |
$ 16.05 |
$ 13.60 |
$ 16.73 |
$ 15.02 |
|
Total Return B, C, D |
(.80)% |
30.45% |
20.71% |
(17.14)% |
13.07% |
26.60% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.83% A |
.84% |
.85% |
.85% |
.86% |
.88% |
|
Expenses net of fee waivers, if any |
.83% A |
.84% |
.85% |
.85% |
.85% |
.88% |
|
Expenses net of all reductions |
.83% A |
.83% |
.83% |
.83% |
.83% |
.84% |
|
Net investment income (loss) |
2.58% A, H |
1.41% |
1.94% |
1.59% |
1.41% |
2.17% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 98,705 |
$ 104,016 |
$ 88,587 |
$ 85,922 |
$ 122,655 |
$ 128,689 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.84%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.52 |
$ 16.00 |
$ 13.56 |
$ 16.68 |
$ 14.97 |
$ 12.10 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.25 H |
.24 |
.28 |
.24 |
.19 |
.27 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.59 |
2.51 |
(3.12) |
1.75 |
2.92 |
|
Total from investment operations |
(.17) |
4.83 |
2.79 |
(2.88) |
1.94 |
3.19 |
|
Distributions from net investment income |
- |
(.24) |
(.29) I |
(.21) |
(.20) |
(.28) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.31) |
(.35) |
(.24) |
(.23) |
(.32) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.34 |
$ 20.52 |
$ 16.00 |
$ 13.56 |
$ 16.68 |
$ 14.97 |
|
Total Return B, C, D |
(.85)% |
30.30% |
20.58% |
(17.24)% |
13.01% |
26.49% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.93% A |
.94% |
.94% |
.95% |
.96% |
.97% |
|
Expenses net of fee waivers, if any |
.93% A |
.93% |
.94% |
.94% |
.95% |
.97% |
|
Expenses net of all reductions |
.93% A |
.92% |
.93% |
.93% |
.93% |
.94% |
|
Net investment income (loss) |
2.49% A, H |
1.31% |
1.84% |
1.49% |
1.31% |
2.08% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 51,715 |
$ 54,146 |
$ 45,774 |
$ 43,414 |
$ 60,617 |
$ 66,014 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.74%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.26 |
$ 15.80 |
$ 13.40 |
$ 16.48 |
$ 14.80 |
$ 11.98 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.23 H |
.21 |
.25 |
.21 |
.17 |
.25 |
|
Net realized and unrealized gain (loss) |
(.41) |
4.54 |
2.47 |
(3.07) |
1.73 |
2.87 |
|
Total from investment operations |
(.18) |
4.75 |
2.72 |
(2.86) |
1.90 |
3.12 |
|
Distributions from net investment income |
- |
(.22) |
(.26) I |
(.19) |
(.19) |
(.26) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.29) |
(.32) |
(.22) |
(.22) |
(.30) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.07 |
$ 20.26 |
$ 15.80 |
$ 13.40 |
$ 16.48 |
$ 14.80 |
|
Total Return B, C, D |
(.91)% |
30.15% |
20.36% |
(17.33)% |
12.82% |
26.20% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
1.08% A |
1.09% |
1.09% |
1.10% |
1.11% |
1.12% |
|
Expenses net of fee waivers, if any |
1.08% A |
1.08% |
1.09% |
1.09% |
1.10% |
1.12% |
|
Expenses net of all reductions |
1.08% A |
1.07% |
1.08% |
1.08% |
1.08% |
1.09% |
|
Net investment income (loss) |
2.34% A, H |
1.16% |
1.69% |
1.34% |
1.16% |
1.93% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 92,365 |
$ 90,537 |
$ 67,674 |
$ 58,968 |
$ 69,393 |
$ 64,200 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.59%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.58 |
$ 16.04 |
$ 13.60 |
$ 16.73 |
$ 15.01 |
$ 12.14 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.25 H |
.24 |
.28 |
.24 |
.20 |
.27 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.62 |
2.51 |
(3.12) |
1.76 |
2.92 |
|
Total from investment operations |
(.17) |
4.86 |
2.79 |
(2.88) |
1.96 |
3.19 |
|
Distributions from net investment income |
- |
(.25) |
(.29) I |
(.22) |
(.21) |
(.28) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.32) |
(.35) |
(.25) |
(.24) |
(.32) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.40 |
$ 20.58 |
$ 16.04 |
$ 13.60 |
$ 16.73 |
$ 15.01 |
|
Total Return B, C, D |
(.85)% |
30.40% |
20.54% |
(17.22)% |
13.07% |
26.42% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.91% A |
.92% |
.93% |
.93% |
.95% |
.97% |
|
Expenses net of fee waivers, if any |
.91% A |
.92% |
.93% |
.93% |
.94% |
.97% |
|
Expenses net of all reductions |
.91% A |
.91% |
.92% |
.91% |
.92% |
.94% |
|
Net investment income (loss) |
2.50% A, H |
1.33% |
1.85% |
1.51% |
1.32% |
2.08% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 305,755 |
$ 294,173 |
$ 175,442 |
$ 152,810 |
$ 177,984 |
$ 148,806 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.76%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Overseas Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Initial Class R shares, Service Class R shares, Service Class 2R shares, and Investor Class R shares. All classes have equal rights and voting privileges, except for matters affecting a single class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of 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 may 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect 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 are included in the accompanying Statement of Assets and Liabilities.
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 dividends 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. These differences resulted in distribution reclassifications for the period ended December 31, 2012.
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), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end on an unconsolidated basis were as follows:
|
Gross unrealized appreciation |
$ 451,469,915 |
|
Gross unrealized depreciation |
(93,633,181) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 357,836,734 |
|
|
|
|
Tax cost |
$ 1,463,933,206 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2016 |
$ (12,503,833) |
|
2017 |
(280,447,470) |
|
Total capital loss carryforward |
$ (292,951,303) |
Trading (Redemption) Fees. Initial Class R shares, Service Class R shares, Service Class 2R shares and Investor Class R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of, other than short-term securities, aggregated $377,863,411 and $354,112,786, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
In July 2014, the Board of Trustees approved an amendment to the management contract reducing the individual fund fee rate from .45% to .424%. The new individual fund fee rate will be effective August 1, 2014.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 57,385 |
|
Service Class 2 |
378,894 |
|
Service Class R |
25,993 |
|
Service Class 2 R |
112,112 |
|
|
$ 574,384 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class R) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.15% for Investor Class R) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 268,692 |
|
Service Class |
38,681 |
|
Service Class 2 |
101,851 |
|
Initial Class R |
33,377 |
|
Service Class R |
16,834 |
|
Service Class 2R |
29,063 |
|
Investor Class R |
218,120 |
|
|
$ 706,618 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,521 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviseror an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,603 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $6,511,053. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $499,695, including $3,908 from securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $12,245 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 9,994,667 |
|
Service Class |
- |
1,357,229 |
|
Service Class 2 |
- |
3,168,706 |
|
Initial Class R |
- |
1,290,936 |
|
Service Class R |
- |
628,888 |
|
Service Class 2R |
- |
959,606 |
|
Investor Class R |
- |
3,335,879 |
|
Total |
$ - |
$ 20,735,911 |
|
From net realized gain |
|
|
|
Initial Class |
$ 197,461 |
$ 2,739,851 |
|
Service Class |
28,825 |
403,194 |
|
Service Class 2 |
77,133 |
1,092,127 |
|
Initial Class R |
25,187 |
353,886 |
|
Service Class R |
13,104 |
185,274 |
|
Service Class 2R |
22,313 |
312,532 |
|
Investor Class R |
73,173 |
955,030 |
|
Total |
$ 437,196 |
$ 6,041,894 |
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Initial Class |
|
|
|
|
|
Shares sold |
1,943,977 |
5,801,817 |
$ 39,196,145 |
$ 107,662,358 |
|
Reinvestment of distributions |
9,761 |
649,058 |
197,461 |
12,734,518 |
|
Shares redeemed |
(3,072,895) |
(7,255,257) |
(61,773,250) |
(129,071,396) |
|
Net increase (decrease) |
(1,119,157) |
(804,382) |
$ (22,379,644) |
$ (8,674,520) |
|
Service Class |
|
|
|
|
|
Shares sold |
255,695 |
428,272 |
$ 5,137,279 |
$ 7,746,361 |
|
Reinvestment of distributions |
1,431 |
90,093 |
28,825 |
1,760,423 |
|
Shares redeemed |
(400,728) |
(1,628,602) |
(8,081,148) |
(28,843,970) |
|
Net increase (decrease) |
(143,602) |
(1,110,237) |
$ (2,915,044) |
$ (19,337,186) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
652,145 |
1,340,055 |
$ 13,054,385 |
$ 23,878,028 |
|
Reinvestment of distributions |
3,847 |
218,953 |
77,133 |
4,260,833 |
|
Shares redeemed |
(1,377,420) |
(7,981,874) |
(27,384,896) |
(142,365,692) |
|
Net increase (decrease) |
(721,428) |
(6,422,866) |
$ (14,253,378) |
$ (114,226,831) |
|
Initial Class R |
|
|
|
|
|
Shares sold |
159,238 |
435,761 |
$ 3,206,373 |
$ 8,137,230 |
|
Reinvestment of distributions |
1,248 |
84,048 |
25,187 |
1,644,822 |
|
Shares redeemed |
(377,859) |
(988,816) |
(7,571,228) |
(17,709,460) |
|
Net increase (decrease) |
(217,373) |
(469,007) |
$ (4,339,668) |
$ (7,927,408) |
Semiannual Report
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Service Class R |
|
|
|
|
|
Shares sold |
122,764 |
215,668 |
$ 2,457,608 |
$ 3,976,622 |
|
Reinvestment of distributions |
652 |
41,731 |
13,104 |
814,162 |
|
Shares redeemed |
(219,300) |
(480,725) |
(4,374,971) |
(8,684,273) |
|
Net increase (decrease) |
(95,884) |
(223,326) |
$ (1,904,259) |
$ (3,893,489) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
373,173 |
635,014 |
$ 7,378,612 |
$ 11,565,664 |
|
Reinvestment of distributions |
1,124 |
66,051 |
22,313 |
1,272,138 |
|
Shares redeemed |
(239,801) |
(515,803) |
(4,751,014) |
(9,082,206) |
|
Net increase (decrease) |
134,496 |
185,262 |
$ 2,649,911 |
$ 3,755,596 |
|
Investor Class R |
|
|
|
|
|
Shares sold |
1,341,521 |
4,240,579 |
$ 26,947,608 |
$ 79,414,168 |
|
Reinvestment of distributions |
3,628 |
219,372 |
73,173 |
4,290,909 |
|
Shares redeemed |
(650,791) |
(1,102,402) |
(13,014,789) |
(19,510,986) |
|
Net increase (decrease) |
694,358 |
3,357,549 |
$ 14,005,992 |
$ 64,194,091 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 19% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 18% of the total outstanding shares of the Fund.
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
VIPOVRS-SANN-0814 1.705696.116
Fidelity® Variable Insurance Products:
Overseas Portfolio - Class R
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
Annualized |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.83% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 992.00 |
$ 4.10 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.68 |
$ 4.16 |
|
Service Class |
.93% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 991.50 |
$ 4.59 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Service Class 2 |
1.08% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 990.50 |
$ 5.33 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.44 |
$ 5.41 |
|
Initial Class R |
.83% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 992.00 |
$ 4.10 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.68 |
$ 4.16 |
|
Service Class R |
.93% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 991.50 |
$ 4.59 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.18 |
$ 4.66 |
|
Service Class 2R |
1.08% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 990.90 |
$ 5.33 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.44 |
$ 5.41 |
|
Investor Class R |
.91% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 991.50 |
$ 4.49 |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.28 |
$ 4.56 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Geographic Diversification (% of fund's net assets) |
|||
|
As of June 30, 2014 |
|||
|
United Kingdom |
18.5% |
|
|
Japan |
17.7% |
|
|
France |
9.0% |
|
|
United States of America* |
8.3% |
|
|
Switzerland |
7.6% |
|
|
Germany |
4.9% |
|
|
Cayman Islands |
4.8% |
|
|
Denmark |
3.0% |
|
|
South Africa |
2.9% |
|
|
Other |
23.3% |
|
|
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
|
* Includes Short-Term Investments and Net Other Assets. |
|
As of December 31, 2013 |
|||
|
Japan |
18.9% |
|
|
United Kingdom |
17.1% |
|
|
United States of America* |
8.0% |
|
|
France |
7.9% |
|
|
Cayman Islands |
7.9% |
|
|
Switzerland |
7.2% |
|
|
Germany |
5.5% |
|
|
Sweden |
3.2% |
|
|
Ireland |
3.1% |
|
|
Other |
21.2% |
|
|
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
|
* Includes Short-Term Investments and Net Other Assets. |
|
Asset Allocation as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Stocks |
99.8 |
98.1 |
|
Short-Term Investments and Net Other Assets (Liabilities) |
0.2 |
1.9 |
|
Top Ten Stocks as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Naspers Ltd. Class N (South Africa, Media) |
2.5 |
1.6 |
|
Nestle SA (Switzerland, Food Products) |
2.3 |
2.2 |
|
Sanofi SA (France, Pharmaceuticals) |
2.1 |
2.0 |
|
Rakuten, Inc. (Japan, Internet & Catalog Retail) |
1.6 |
1.6 |
|
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) |
1.6 |
1.1 |
|
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) |
1.5 |
0.9 |
|
SoftBank Corp. (Japan, Wireless Telecommunication Services) |
1.4 |
2.1 |
|
HSBC Holdings PLC (United Kingdom, Financials & Banks) |
1.3 |
1.3 |
|
Naver Corp. (Korea (South), Internet Software & Services) |
1.2 |
0.2 |
|
Toyota Motor Corp. (Japan, Automobiles) |
1.2 |
1.4 |
|
|
16.7 |
|
|
Market Sectors as of June 30, 2014 |
||
|
|
% of fund's |
% of fund's net assets |
|
Consumer Discretionary |
26.3 |
27.2 |
|
Financials |
18.2 |
18.8 |
|
Information Technology |
15.0 |
15.0 |
|
Consumer Staples |
12.8 |
11.4 |
|
Health Care |
9.5 |
7.1 |
|
Industrials |
6.1 |
7.3 |
|
Energy |
5.1 |
3.1 |
|
Materials |
5.1 |
5.6 |
|
Telecommunication Services |
1.7 |
2.6 |
Semiannual Report
Showing Percentage of Net Assets
|
Common Stocks - 98.4% |
|||
|
Shares |
Value |
||
|
Australia - 2.7% |
|||
|
AMP Ltd. |
423,882 |
$ 2,118,408 |
|
|
BHP Billiton Ltd. |
318,002 |
10,845,351 |
|
|
Carsales.com Ltd. |
320,637 |
3,201,830 |
|
|
CSL Ltd. |
161,275 |
10,120,542 |
|
|
Fortescue Metals Group Ltd. |
258,379 |
1,059,827 |
|
|
G8 Education Ltd. |
1,358,273 |
5,891,604 |
|
|
iSelect Ltd. |
6,177,716 |
6,699,069 |
|
|
Macquarie Group Ltd. |
99,742 |
5,608,304 |
|
|
Rio Tinto Ltd. |
24,301 |
1,359,067 |
|
|
TOTAL AUSTRALIA |
46,904,002 |
||
|
Bailiwick of Jersey - 0.4% |
|||
|
Glencore Xstrata PLC |
1,246,535 |
6,945,023 |
|
|
Belgium - 1.0% |
|||
|
Ageas |
66,760 |
2,663,361 |
|
|
Anheuser-Busch InBev SA NV |
33,577 |
3,858,009 |
|
|
Hamon & Compagnie International SA (a) |
62,254 |
1,299,125 |
|
|
KBC Groupe SA (a) |
58,487 |
3,183,428 |
|
|
UCB SA |
72,400 |
6,129,661 |
|
|
TOTAL BELGIUM |
17,133,584 |
||
|
Bermuda - 0.7% |
|||
|
Clear Media Ltd. |
2,035,000 |
1,950,874 |
|
|
Oriental Watch Holdings Ltd. |
7,028,000 |
1,650,361 |
|
|
Signet Jewelers Ltd. |
79,400 |
8,780,846 |
|
|
TOTAL BERMUDA |
12,382,081 |
||
|
Brazil - 1.5% |
|||
|
Anhanguera Educacional Participacoes SA |
579,300 |
4,824,223 |
|
|
BB Seguridade Participacoes SA |
636,600 |
9,346,596 |
|
|
Cielo SA |
583,180 |
12,009,364 |
|
|
TOTAL BRAZIL |
26,180,183 |
||
|
British Virgin Islands - 0.5% |
|||
|
Gem Diamonds Ltd. (a) |
931,919 |
2,280,687 |
|
|
Mail.Ru Group Ltd.: |
|
|
|
|
GDR (a)(e) |
6,600 |
232,650 |
|
|
GDR (Reg. S) (a) |
200,099 |
7,053,490 |
|
|
TOTAL BRITISH VIRGIN ISLANDS |
9,566,827 |
||
|
Canada - 0.4% |
|||
|
Entertainment One Ltd. |
1,006,000 |
5,337,172 |
|
|
MDC Partners, Inc. Class A (sub. vtg.) |
37,700 |
810,173 |
|
|
Performance Sports Group Ltd. (a) |
55,161 |
949,118 |
|
|
TOTAL CANADA |
7,096,463 |
||
|
Cayman Islands - 4.8% |
|||
|
58.com, Inc. ADR |
84,000 |
4,541,040 |
|
|
Autohome, Inc. ADR Class A (d) |
39,900 |
1,373,757 |
|
|
Baidu.com, Inc. sponsored ADR (a) |
50,100 |
9,359,181 |
|
|
Biostime International Holdings Ltd. |
1,233,500 |
6,843,582 |
|
|
Bitauto Holdings Ltd. ADR (a) |
77,700 |
3,783,990 |
|
|
|
|||
|
Shares |
Value |
||
|
Cimc Enric Holdings Ltd. |
1,596,000 |
$ 2,100,434 |
|
|
Ctrip.com International Ltd. sponsored ADR (a) |
115,800 |
7,415,832 |
|
|
GCL-Poly Energy Holdings Ltd. (a) |
19,483,000 |
6,510,757 |
|
|
Greatview Aseptic Pack Co. Ltd. |
4,056,000 |
2,773,637 |
|
|
Hengdeli Holdings Ltd. (d) |
38,669,800 |
6,735,682 |
|
|
Home Inns & Hotels Management, Inc. sponsored ADR (a) |
41,000 |
1,403,430 |
|
|
iKang Healthcare Group, Inc. sponsored ADR |
11,500 |
199,410 |
|
|
Qunar Cayman Islands Ltd. sponsored ADR (d) |
36,800 |
1,050,640 |
|
|
Shenguan Holdings Group Ltd. |
2,636,000 |
1,112,165 |
|
|
SouFun Holdings Ltd. ADR (d) |
429,900 |
4,208,721 |
|
|
Tencent Holdings Ltd. |
1,290,000 |
19,673,565 |
|
|
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) |
143,000 |
4,698,980 |
|
|
TOTAL CAYMAN ISLANDS |
83,784,803 |
||
|
China - 0.2% |
|||
|
TravelSky Technology Ltd. (H Shares) |
3,969,000 |
3,651,292 |
|
|
Denmark - 3.0% |
|||
|
Danske Bank A/S |
96,100 |
2,716,290 |
|
|
Novo Nordisk A/S: |
|
|
|
|
Series B |
80,625 |
3,721,083 |
|
|
Series B sponsored ADR |
521,500 |
24,088,085 |
|
|
Pandora A/S |
78,600 |
6,026,888 |
|
|
Vestas Wind Systems A/S (a) |
330,100 |
16,653,989 |
|
|
TOTAL DENMARK |
53,206,335 |
||
|
France - 9.0% |
|||
|
AXA SA |
114,920 |
2,746,718 |
|
|
AXA SA sponsored ADR |
135,400 |
3,246,892 |
|
|
Beneteau SA (a) |
196,900 |
3,589,926 |
|
|
BNP Paribas SA |
171,603 |
11,641,885 |
|
|
Bollore |
6,457 |
4,190,904 |
|
|
Danone SA |
178,815 |
13,296,408 |
|
|
Edenred SA (d) |
118,359 |
3,589,018 |
|
|
Gameloft Se (a) |
537,900 |
4,964,323 |
|
|
Havas SA |
938,800 |
7,709,137 |
|
|
Iliad SA |
19,126 |
5,781,273 |
|
|
LVMH Moet Hennessy - Louis Vuitton SA |
95,996 |
18,507,783 |
|
|
Pernod Ricard SA (d) |
80,600 |
9,679,061 |
|
|
Safran SA |
71,900 |
4,707,514 |
|
|
Sanofi SA |
139,290 |
14,805,071 |
|
|
Sanofi SA sponsored ADR |
404,222 |
21,492,484 |
|
|
Societe Generale Series A |
86,251 |
4,518,049 |
|
|
Solocal Group SA (a)(d) |
3,037,680 |
2,994,837 |
|
|
Total SA |
298,200 |
21,574,679 |
|
|
TOTAL FRANCE |
159,035,962 |
||
|
Germany - 3.5% |
|||
|
adidas AG |
78,800 |
7,981,425 |
|
|
Allianz SE |
85,343 |
14,244,926 |
|
|
Axel Springer Verlag AG |
116,600 |
7,176,734 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
Germany - continued |
|||
|
Bayer AG |
141,478 |
$ 19,982,819 |
|
|
Commerzbank AG (a) |
55,520 |
872,750 |
|
|
CTS Eventim AG |
182,524 |
5,209,793 |
|
|
Deutsche Bank AG |
74,681 |
2,624,663 |
|
|
Linde AG |
15,087 |
3,208,285 |
|
|
TOTAL GERMANY |
61,301,395 |
||
|
Greece - 0.2% |
|||
|
Greek Organization of Football Prognostics SA |
192,500 |
3,426,673 |
|
|
Hong Kong - 1.3% |
|||
|
AIA Group Ltd. |
2,299,400 |
11,555,743 |
|
|
Television Broadcasts Ltd. |
1,741,000 |
11,310,300 |
|
|
TOTAL HONG KONG |
22,866,043 |
||
|
India - 0.2% |
|||
|
INFO Edge India Ltd. |
90,742 |
1,018,241 |
|
|
Just Dial Ltd. |
85,554 |
2,082,227 |
|
|
TOTAL INDIA |
3,100,468 |
||
|
Ireland - 2.2% |
|||
|
C&C Group PLC |
3,139,300 |
19,537,335 |
|
|
Glanbia PLC |
451,000 |
6,805,448 |
|
|
Kingspan Group PLC (United Kingdom) |
461,800 |
7,771,492 |
|
|
Paddy Power PLC (Ireland) |
69,200 |
4,548,267 |
|
|
TOTAL IRELAND |
38,662,542 |
||
|
Isle of Man - 0.3% |
|||
|
Playtech Ltd. |
436,355 |
4,603,886 |
|
|
Israel - 0.3% |
|||
|
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. |
80,100 |
4,101,288 |
|
|
Sarine Technologies Ltd. |
1,024,000 |
2,110,578 |
|
|
TOTAL ISRAEL |
6,211,866 |
||
|
Italy - 2.3% |
|||
|
Assicurazioni Generali SpA |
158,500 |
3,474,715 |
|
|
Eni SpA |
203,400 |
5,562,924 |
|
|
Eni SpA sponsored ADR (d) |
67,900 |
3,727,710 |
|
|
Intesa Sanpaolo SpA |
3,425,600 |
10,569,102 |
|
|
Lottomatica SpA (d) |
82,800 |
2,023,798 |
|
|
Prada SpA |
993,000 |
7,027,515 |
|
|
Tod's SpA (d) |
58,771 |
7,480,163 |
|
|
TOTAL ITALY |
39,865,927 |
||
|
Japan - 17.7% |
|||
|
Cosmos Pharmaceutical Corp. |
111,300 |
11,746,711 |
|
|
Daiwa Securities Group, Inc. |
490,000 |
4,245,496 |
|
|
DENSO Corp. |
87,400 |
4,175,150 |
|
|
Dentsu, Inc. |
431,700 |
17,580,906 |
|
|
East Japan Railway Co. |
43,300 |
3,411,697 |
|
|
Enigmo, Inc. (a)(d) |
141,000 |
8,612,631 |
|
|
Fuji Media Holdings, Inc. |
161,900 |
2,815,421 |
|
|
|
|||
|
Shares |
Value |
||
|
Fujitsu Ltd. |
526,000 |
$ 3,941,238 |
|
|
Hitachi Ltd. |
1,572,000 |
11,521,295 |
|
|
Honda Motor Co. Ltd. |
277,700 |
9,690,277 |
|
|
Hoya Corp. |
170,400 |
5,665,429 |
|
|
Infomart Corp. |
52,700 |
1,218,973 |
|
|
Japan Tobacco, Inc. |
329,000 |
11,996,035 |
|
|
JTEKT Corp. |
219,800 |
3,708,657 |
|
|
Keyence Corp. |
31,120 |
13,608,394 |
|
|
Mitsubishi Corp. |
357,000 |
7,430,750 |
|
|
Mitsubishi Electric Corp. |
750,000 |
9,264,555 |
|
|
Mitsubishi UFJ Financial Group, Inc. |
2,681,700 |
16,462,198 |
|
|
Mitsubishi UFJ Financial Group, Inc. sponsored ADR (d) |
331,200 |
2,036,880 |
|
|
MS&AD Insurance Group Holdings, Inc. |
177,500 |
4,289,970 |
|
|
NEC Corp. |
897,000 |
2,862,783 |
|
|
NEXT Co. Ltd. (d) |
1,040,400 |
8,746,395 |
|
|
Nomura Holdings, Inc. |
505,000 |
3,577,071 |
|
|
Nomura Holdings, Inc. sponsored ADR |
57,600 |
404,928 |
|
|
Olympus Corp. (a) |
131,200 |
4,514,114 |
|
|
OMRON Corp. |
152,800 |
6,443,513 |
|
|
ORIX Corp. |
1,254,900 |
20,807,244 |
|
|
Pigeon Corp. |
35,100 |
1,851,516 |
|
|
Rakuten, Inc. |
2,222,200 |
28,731,038 |
|
|
Shinsei Bank Ltd. |
679,000 |
1,529,353 |
|
|
Ship Healthcare Holdings, Inc. |
121,900 |
4,277,945 |
|
|
SoftBank Corp. |
332,000 |
24,741,629 |
|
|
Sumitomo Mitsui Financial Group, Inc. |
314,400 |
13,191,257 |
|
|
Suzuki Motor Corp. |
128,100 |
4,018,699 |
|
|
THK Co. Ltd. |
158,500 |
3,736,720 |
|
|
Tokio Marine Holdings, Inc. |
136,600 |
4,496,019 |
|
|
Toshiba Corp. |
672,000 |
3,141,219 |
|
|
Toyota Motor Corp. |
314,000 |
18,800,003 |
|
|
Toyota Motor Corp. sponsored ADR |
23,600 |
2,823,976 |
|
|
TOTAL JAPAN |
312,118,085 |
||
|
Korea (South) - 1.9% |
|||
|
Korea Express Co. Ltd. (a) |
48,772 |
5,807,338 |
|
|
Naver Corp. |
26,582 |
21,932,777 |
|
|
Samsung Electronics Co. Ltd. |
4,728 |
6,176,300 |
|
|
TOTAL KOREA (SOUTH) |
33,916,415 |
||
|
Netherlands - 1.0% |
|||
|
AEGON NV |
259,400 |
2,262,863 |
|
|
ASML Holding NV (d) |
31,411 |
2,929,704 |
|
|
ING Groep NV (Certificaten Van Aandelen) (a) |
577,484 |
8,103,536 |
|
|
Yandex NV (a) |
100,100 |
3,567,564 |
|
|
TOTAL NETHERLANDS |
16,863,667 |
||
|
New Zealand - 0.1% |
|||
|
EBOS Group Ltd. |
225,407 |
1,991,313 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
Nigeria - 0.2% |
|||
|
Guinness Nigeria PLC |
941,861 |
$ 1,156,012 |
|
|
Nigerian Breweries PLC |
1,827,733 |
1,929,130 |
|
|
TOTAL NIGERIA |
3,085,142 |
||
|
Norway - 1.0% |
|||
|
DNB ASA |
447,800 |
8,191,130 |
|
|
Schibsted ASA (B Shares) |
164,400 |
8,563,268 |
|
|
Statoil ASA |
14,100 |
433,418 |
|
|
Statoil ASA sponsored ADR (d) |
30,700 |
946,481 |
|
|
TOTAL NORWAY |
18,134,297 |
||
|
Philippines - 0.6% |
|||
|
Alliance Global Group, Inc. |
9,464,300 |
6,313,149 |
|
|
Melco Crown Philippines Resort (a) |
18,428,700 |
4,841,098 |
|
|
TOTAL PHILIPPINES |
11,154,247 |
||
|
South Africa - 2.9% |
|||
|
Clicks Group Ltd. |
931,242 |
5,560,307 |
|
|
Life Healthcare Group Holdings Ltd. |
621,600 |
2,425,029 |
|
|
Naspers Ltd. Class N |
368,600 |
43,393,246 |
|
|
TOTAL SOUTH AFRICA |
51,378,582 |
||
|
Spain - 1.6% |
|||
|
Atresmedia Corporacion de Medios de Comunicacion SA |
547,000 |
7,834,614 |
|
|
Banco Bilbao Vizcaya Argentaria SA |
592,060 |
7,546,055 |
|
|
Banco Santander SA (Spain) |
342,941 |
3,583,481 |
|
|
Grifols SA ADR |
171,300 |
7,545,765 |
|
|
Mediaset Espana Comunicacion, S.A. (a) |
154,500 |
1,802,041 |
|
|
TOTAL SPAIN |
28,311,956 |
||
|
Sweden - 2.0% |
|||
|
Eniro AB (a) |
526,500 |
3,545,959 |
|
|
Investment AB Kinnevik (B Shares) |
205,100 |
8,742,355 |
|
|
Nordea Bank AB |
608,800 |
8,592,294 |
|
|
Svenska Cellulosa AB (SCA) (B Shares) |
439,000 |
11,438,948 |
|
|
Swedbank AB (A Shares) |
102,432 |
2,716,578 |
|
|
TOTAL SWEDEN |
35,036,134 |
||
|
Switzerland - 7.6% |
|||
|
Compagnie Financiere Richemont SA Series A |
184,902 |
19,401,366 |
|
|
Credit Suisse Group AG |
324,618 |
9,231,967 |
|
|
Credit Suisse Group AG sponsored ADR (d) |
61,252 |
1,737,719 |
|
|
Julius Baer Group Ltd. |
55,980 |
2,307,881 |
|
|
Nestle SA |
520,059 |
40,297,787 |
|
|
Sika AG (Bearer) |
1,800 |
7,359,946 |
|
|
Swatch Group AG (Bearer) |
29,240 |
17,656,766 |
|
|
Swiss Re Ltd. |
46,826 |
4,166,183 |
|
|
Syngenta AG (Switzerland) |
38,450 |
14,205,324 |
|
|
UBS AG |
591,162 |
10,838,669 |
|
|
|
|||
|
Shares |
Value |
||
|
UBS AG (NY Shares) |
184,900 |
$ 3,387,368 |
|
|
Zurich Insurance Group AG |
11,638 |
3,507,936 |
|
|
TOTAL SWITZERLAND |
134,098,912 |
||
|
Taiwan - 0.5% |
|||
|
Addcn Technology Co. Ltd. |
292,000 |
4,164,097 |
|
|
MediaTek, Inc. |
323,000 |
5,460,373 |
|
|
TOTAL TAIWAN |
9,624,470 |
||
|
Thailand - 0.2% |
|||
|
Thai Beverage PCL |
7,953,000 |
3,954,495 |
|
|
United Kingdom - 18.5% |
|||
|
Al Noor Hospitals Group PLC |
121,600 |
2,126,846 |
|
|
Anglo American PLC ADR |
96,800 |
1,187,736 |
|
|
AstraZeneca PLC (United Kingdom) |
226,455 |
16,847,724 |
|
|
Aviva PLC |
329,400 |
2,873,943 |
|
|
Barclays PLC |
2,571,808 |
9,368,524 |
|
|
Barclays PLC sponsored ADR |
199,250 |
2,911,043 |
|
|
BG Group PLC |
408,438 |
8,632,660 |
|
|
BHP Billiton PLC |
415,946 |
13,521,993 |
|
|
BP PLC |
881,993 |
7,766,765 |
|
|
Brammer PLC |
1,085,200 |
8,482,813 |
|
|
Burberry Group PLC |
391,000 |
9,923,604 |
|
|
Dechra Pharmaceuticals PLC |
159,300 |
1,972,449 |
|
|
Diageo PLC |
524,328 |
16,699,375 |
|
|
Dunelm Group PLC |
464,300 |
6,634,935 |
|
|
Exova Group Ltd. PLC (a) |
87,610 |
368,842 |
|
|
Foxtons Group PLC |
435,300 |
2,237,152 |
|
|
GlaxoSmithKline PLC |
447,200 |
11,906,788 |
|
|
Hays PLC |
1,328,400 |
3,321,472 |
|
|
HSBC Holdings PLC: |
|
|
|
|
(United Kingdom) |
929,678 |
9,431,656 |
|
|
sponsored ADR |
252,732 |
12,838,786 |
|
|
Informa PLC |
395,290 |
3,240,432 |
|
|
ITV PLC |
3,573,900 |
10,899,376 |
|
|
Johnson Matthey PLC |
164,298 |
8,716,568 |
|
|
Lloyds Banking Group PLC (a) |
11,728,444 |
14,907,713 |
|
|
M&C Saatchi PLC |
691,900 |
3,057,984 |
|
|
Moneysupermarket.com Group PLC |
1,165,300 |
3,755,256 |
|
|
Perform Group PLC (a) |
726,600 |
2,872,493 |
|
|
Poundland Group PLC (a) |
168,154 |
912,259 |
|
|
Prudential PLC |
220,034 |
5,041,299 |
|
|
Reckitt Benckiser Group PLC |
111,600 |
9,740,604 |
|
|
Rightmove PLC |
89,900 |
3,298,648 |
|
|
Rio Tinto PLC |
142,915 |
7,716,591 |
|
|
Rio Tinto PLC sponsored ADR (d) |
34,900 |
1,894,372 |
|
|
Rolls-Royce Group PLC |
322,708 |
5,903,900 |
|
|
Royal Bank of Scotland Group PLC (a) |
255,480 |
1,435,854 |
|
|
Royal Dutch Shell PLC: |
|
|
|
|
Class A (United Kingdom) |
632,388 |
26,132,007 |
|
|
Class B (United Kingdom) |
421,575 |
18,321,697 |
|
|
Royal Mail PLC |
117,700 |
1,005,145 |
|
|
SABMiller PLC |
351,000 |
20,351,764 |
|
|
Common Stocks - continued |
|||
|
Shares |
Value |
||
|
United Kingdom - continued |
|||
|
Standard Chartered PLC (United Kingdom) |
271,168 |
$ 5,541,078 |
|
|
Sthree PLC |
229,400 |
1,526,214 |
|
|
Taylor Wimpey PLC |
1,623,100 |
3,166,662 |
|
|
Travis Perkins PLC |
198,400 |
5,561,694 |
|
|
William Hill PLC |
2,030,644 |
11,398,801 |
|
|
TOTAL UNITED KINGDOM |
325,453,517 |
||
|
United States of America - 8.1% |
|||
|
BlackRock, Inc. Class A |
17,000 |
5,433,200 |
|
|
Boston Beer Co., Inc. Class A (a) |
15,000 |
3,352,800 |
|
|
Dunkin' Brands Group, Inc. |
125,900 |
5,767,479 |
|
|
eBay, Inc. (a) |
122,700 |
6,142,362 |
|
|
Facebook, Inc. Class A (a) |
183,600 |
12,354,444 |
|
|
Gilead Sciences, Inc. (a) |
73,000 |
6,052,430 |
|
|
Google, Inc.: |
|
|
|
|
Class A (a) |
15,200 |
8,886,984 |
|
|
Class C (a) |
15,200 |
8,744,256 |
|
|
JD.com, Inc. sponsored ADR (d) |
13,100 |
373,481 |
|
|
Lorillard, Inc. |
89,900 |
5,481,203 |
|
|
MercadoLibre, Inc. (d) |
49,400 |
4,712,760 |
|
|
Monsanto Co. |
60,503 |
7,547,144 |
|
|
Monster Beverage Corp. (a) |
88,400 |
6,279,052 |
|
|
Nimble Storage, Inc. |
2,600 |
79,872 |
|
|
priceline.com, Inc. (a) |
8,360 |
10,057,080 |
|
|
Sprouts Farmers Market LLC (d) |
194,900 |
6,377,128 |
|
|
Tiffany & Co., Inc. |
114,700 |
11,498,675 |
|
|
TripAdvisor, Inc. (a) |
40,700 |
4,422,462 |
|
|
Trulia, Inc. (a)(d) |
77,800 |
3,686,164 |
|
|
Visa, Inc. Class A |
56,400 |
11,884,044 |
|
|
Yahoo!, Inc. (a) |
133,000 |
4,672,290 |
|
|
Zillow, Inc. (a)(d) |
57,800 |
8,261,354 |
|
|
TOTAL UNITED STATES OF AMERICA |
142,066,664 |
||
|
TOTAL COMMON STOCKS (Cost $1,366,229,709) |
|
||
|
Nonconvertible Preferred Stocks - 1.4% |
|||
|
Shares |
Value |
||
|
Germany - 1.4% |
|||
|
Sartorius AG (non-vtg.) |
39,500 |
$ 4,764,555 |
|
|
Volkswagen AG |
75,447 |
19,814,777 |
|
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $11,922,010) |
|
||
|
Money Market Funds - 3.6% |
|||
|
|
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) |
10,434,547 |
10,434,547 |
|
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
53,642,810 |
53,642,810 |
|
|
TOTAL MONEY MARKET FUNDS (Cost $64,077,357) |
|
||
|
TOTAL INVESTMENT PORTFOLIO - 103.4% (Cost $1,442,229,076) |
1,821,769,940 |
|
NET OTHER ASSETS (LIABILITIES) - (3.4)% |
(59,593,315) |
||
|
NET ASSETS - 100% |
$ 1,762,176,625 |
||
|
Legend |
|
(a) Non-income producing |
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(c) Investment made with cash collateral received from securities on loan. |
|
(d) Security or a portion of the security is on loan at period end. |
|
(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 $232,650 or 0.0% of net assets. |
|
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 |
$ 13,910 |
|
Fidelity Securities Lending Cash Central Fund |
499,695 |
|
Total |
$ 513,605 |
|
Other Information |
|
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Equities: |
||||
|
Consumer Discretionary |
$ 460,271,634 |
$ 365,713,745 |
$ 94,557,889 |
$ - |
|
Consumer Staples |
223,446,163 |
123,700,322 |
99,745,841 |
- |
|
Energy |
93,098,341 |
13,306,851 |
79,791,490 |
- |
|
Financials |
319,108,509 |
138,445,650 |
180,662,859 |
- |
|
Health Care |
169,663,093 |
113,590,368 |
56,072,725 |
- |
|
Industrials |
111,407,219 |
80,713,621 |
30,693,598 |
- |
|
Information Technology |
259,553,171 |
205,678,915 |
53,874,256 |
- |
|
Materials |
90,621,551 |
44,332,292 |
46,289,259 |
- |
|
Telecommunication Services |
30,522,902 |
5,781,273 |
24,741,629 |
- |
|
Money Market Funds |
64,077,357 |
64,077,357 |
- |
- |
|
Total Investments in Securities: |
$ 1,821,769,940 |
$ 1,155,340,394 |
$ 666,429,546 |
$ - |
|
The following is a summary of transfers between Level 1 and Level 2 for the period ended June 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
|
Transfers |
Total |
|
Level 1 to Level 2 |
$ 25,825,529 |
|
Level 2 to Level 1 |
$ 12,155,090 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value (including securities loaned of $52,147,397) - See accompanying schedule: Unaffiliated issuers (cost $1,378,151,719) |
$ 1,757,692,583 |
|
|
Fidelity Central Funds (cost $64,077,357) |
64,077,357 |
|
|
Total Investments (cost $1,442,229,076) |
|
$ 1,821,769,940 |
|
Foreign currency held at value (cost $430,550) |
|
431,670 |
|
Receivable for investments sold |
|
|
|
Regular delivery |
|
5,097,917 |
|
Delayed delivery |
|
74,006 |
|
Receivable for fund shares sold |
|
1,188,415 |
|
Dividends receivable |
|
3,768,287 |
|
Distributions receivable from Fidelity Central Funds |
|
37,671 |
|
Other receivables |
|
270,857 |
|
Total assets |
|
1,832,638,763 |
|
|
|
|
|
Liabilities |
|
|
|
Payable to custodian bank |
$ 47,362 |
|
|
Payable for investments purchased |
13,757,749 |
|
|
Payable for fund shares redeemed |
939,189 |
|
|
Accrued management fee |
1,028,014 |
|
|
Distribution and service plan fees payable |
95,480 |
|
|
Other affiliated payables |
183,569 |
|
|
Other payables and accrued expenses |
767,965 |
|
|
Collateral on securities loaned, at value |
53,642,810 |
|
|
Total liabilities |
|
70,462,138 |
|
|
|
|
|
Net Assets |
|
$ 1,762,176,625 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 1,589,220,253 |
|
Undistributed net investment income |
|
21,931,616 |
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(228,519,740) |
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
379,544,496 |
|
Net Assets |
|
$ 1,762,176,625 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 20.47 |
|
|
|
|
|
Service Class: |
|
$ 20.38 |
|
|
|
|
|
Service Class 2: |
|
$ 20.27 |
|
|
|
|
|
Initial Class R: |
|
$ 20.42 |
|
|
|
|
|
Service Class R: |
|
$ 20.34 |
|
|
|
|
|
Service Class 2R: |
|
$ 20.07 |
|
|
|
|
|
Investor Class R: |
|
$ 20.40 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended June 30, 2014 (Unaudited) |
||
|
|
|
|
|
Investment Income |
|
|
|
Dividends |
|
$ 25,178,482 |
|
Special dividends |
|
6,439,828 |
|
Income from Fidelity Central Funds |
|
513,605 |
|
Income before foreign taxes withheld |
|
32,131,915 |
|
Less foreign taxes withheld |
|
(2,273,089) |
|
Total income |
|
29,858,826 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 6,132,519 |
|
|
Transfer agent fees |
706,618 |
|
|
Distribution and service plan fees |
574,384 |
|
|
Accounting and security lending fees |
395,079 |
|
|
Custodian fees and expenses |
90,223 |
|
|
Independent trustees' compensation |
3,564 |
|
|
Appreciation in deferred trustee compensation account |
9 |
|
|
Audit |
38,897 |
|
|
Legal |
4,326 |
|
|
Miscellaneous |
7,519 |
|
|
Total expenses before reductions |
7,953,138 |
|
|
Expense reductions |
(12,251) |
7,940,887 |
|
Net investment income (loss) |
|
21,917,939 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
85,997,781 |
|
|
Foreign currency transactions |
(79,593) |
|
|
Total net realized gain (loss) |
|
85,918,188 |
|
Change in net unrealized appreciation (depreciation) on: Investment securities |
(124,141,310) |
|
|
Assets and liabilities in foreign currencies |
31 |
|
|
Total change in net unrealized appreciation (depreciation) |
|
(124,141,279) |
|
Net gain (loss) |
|
(38,223,091) |
|
Net increase (decrease) in net assets resulting from operations |
|
$ (16,305,152) |
|
|
Six months ended |
Year ended |
|
Increase (Decrease) in Net Assets |
|
|
|
Operations |
|
|
|
Net investment income (loss) |
$ 21,917,939 |
$ 20,795,086 |
|
Net realized gain (loss) |
85,918,188 |
93,790,660 |
|
Change in net unrealized appreciation (depreciation) |
(124,141,279) |
309,754,327 |
|
Net increase (decrease) in net assets resulting from operations |
(16,305,152) |
424,340,073 |
|
Distributions to shareholders from net investment income |
- |
(20,735,911) |
|
Distributions to shareholders from net realized gain |
(437,196) |
(6,041,894) |
|
Total distributions |
(437,196) |
(26,777,805) |
|
Share transactions - net increase (decrease) |
(29,136,090) |
(86,109,747) |
|
Redemption fees |
16,712 |
19,250 |
|
Total increase (decrease) in net assets |
(45,861,726) |
311,471,771 |
|
|
|
|
|
Net Assets |
|
|
|
Beginning of period |
1,808,038,351 |
1,496,566,580 |
|
End of period (including undistributed net investment income of $21,931,616 and undistributed net investment income of $13,677, respectively) |
$ 1,762,176,625 |
$ 1,808,038,351 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.64 |
$ 16.09 |
$ 13.63 |
$ 16.77 |
$ 15.05 |
$ 12.17 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.26 H |
.25 |
.29 |
.26 |
.21 |
.28 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.63 |
2.53 |
(3.14) |
1.76 |
2.93 |
|
Total from investment operations |
(.16) |
4.88 |
2.82 |
(2.88) |
1.97 |
3.21 |
|
Distributions from net investment income |
- |
(.26) |
(.30) I |
(.23) |
(.22) |
(.29) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.33) |
(.36) |
(.26) |
(.25) |
(.33) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.47 |
$ 20.64 |
$ 16.09 |
$ 13.63 |
$ 16.77 |
$ 15.05 |
|
Total Return B, C, D |
(.80)% |
30.44% |
20.74% |
(17.16)% |
13.11% |
26.53% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.83% A |
.84% |
.85% |
.85% |
.86% |
.88% |
|
Expenses net of fee waivers, if any |
.83% A |
.84% |
.85% |
.85% |
.85% |
.88% |
|
Expenses net of all reductions |
.83% A |
.83% |
.83% |
.83% |
.83% |
.84% |
|
Net investment income (loss) |
2.58% A, H |
1.41% |
1.94% |
1.59% |
1.41% |
2.17% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 799,513 |
$ 829,382 |
$ 659,258 |
$ 598,862 |
$ 779,501 |
$ 758,018 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.83%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.56 |
$ 16.02 |
$ 13.58 |
$ 16.70 |
$ 14.99 |
$ 12.12 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.25 H |
.24 |
.28 |
.24 |
.19 |
.26 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.61 |
2.50 |
(3.12) |
1.75 |
2.93 |
|
Total from investment operations |
(.17) |
4.85 |
2.78 |
(2.88) |
1.94 |
3.19 |
|
Distributions from net investment income |
- |
(.24) |
(.29) I |
(.21) |
(.20) |
(.28) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.31) |
(.34) L |
(.24) |
(.23) |
(.32) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.38 |
$ 20.56 |
$ 16.02 |
$ 13.58 |
$ 16.70 |
$ 14.99 |
|
Total Return B, C, D |
(.85)% |
30.38% |
20.54% |
(17.23)% |
12.99% |
26.44% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.93% A |
.94% |
.95% |
.95% |
.96% |
.98% |
|
Expenses net of fee waivers, if any |
.93% A |
.94% |
.95% |
.95% |
.95% |
.98% |
|
Expenses net of all reductions |
.93% A |
.93% |
.93% |
.93% |
.93% |
.94% |
|
Net investment income (loss) |
2.48% A, H |
1.31% |
1.84% |
1.49% |
1.31% |
2.07% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 114,937 |
$ 118,920 |
$ 110,468 |
$ 108,921 |
$ 162,394 |
$ 171,252 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.73%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. L Total distributions of $.34 per share is comprised of distributions from net investment income of $.286 and distributions from net realized gain of $.059 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.47 |
$ 15.95 |
$ 13.52 |
$ 16.62 |
$ 14.92 |
$ 12.07 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.23 H |
.21 |
.25 |
.21 |
.17 |
.24 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.59 |
2.50 |
(3.09) |
1.74 |
2.91 |
|
Total from investment operations |
(.19) |
4.80 |
2.75 |
(2.88) |
1.91 |
3.15 |
|
Distributions from net investment income |
- |
(.21) |
(.26) I |
(.19) |
(.18) |
(.26) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.28) |
(.32) |
(.22) |
(.21) |
(.30) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.27 |
$ 20.47 |
$ 15.95 |
$ 13.52 |
$ 16.62 |
$ 14.92 |
|
Total Return B, C, D |
(.95)% |
30.17% |
20.38% |
(17.34)% |
12.83% |
26.22% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
1.08% A |
1.09% |
1.10% |
1.10% |
1.11% |
1.12% |
|
Expenses net of fee waivers, if any |
1.08% A |
1.09% |
1.10% |
1.10% |
1.10% |
1.12% |
|
Expenses net of all reductions |
1.08% A |
1.08% |
1.08% |
1.08% |
1.08% |
1.09% |
|
Net investment income (loss) |
2.33% A, H |
1.16% |
1.69% |
1.34% |
1.16% |
1.93% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 299,186 |
$ 316,863 |
$ 349,364 |
$ 342,206 |
$ 461,033 |
$ 457,971 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.58%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.59 |
$ 16.05 |
$ 13.60 |
$ 16.73 |
$ 15.02 |
$ 12.14 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.26 H |
.25 |
.29 |
.26 |
.21 |
.28 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.62 |
2.52 |
(3.13) |
1.75 |
2.93 |
|
Total from investment operations |
(.16) |
4.87 |
2.81 |
(2.87) |
1.96 |
3.21 |
|
Distributions from net investment income |
- |
(.26) |
(.30) I |
(.23) |
(.22) |
(.29) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.33) |
(.36) |
(.26) |
(.25) |
(.33) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.42 |
$ 20.59 |
$ 16.05 |
$ 13.60 |
$ 16.73 |
$ 15.02 |
|
Total Return B, C, D |
(.80)% |
30.45% |
20.71% |
(17.14)% |
13.07% |
26.60% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.83% A |
.84% |
.85% |
.85% |
.86% |
.88% |
|
Expenses net of fee waivers, if any |
.83% A |
.84% |
.85% |
.85% |
.85% |
.88% |
|
Expenses net of all reductions |
.83% A |
.83% |
.83% |
.83% |
.83% |
.84% |
|
Net investment income (loss) |
2.58% A, H |
1.41% |
1.94% |
1.59% |
1.41% |
2.17% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 98,705 |
$ 104,016 |
$ 88,587 |
$ 85,922 |
$ 122,655 |
$ 128,689 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.84%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.52 |
$ 16.00 |
$ 13.56 |
$ 16.68 |
$ 14.97 |
$ 12.10 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.25 H |
.24 |
.28 |
.24 |
.19 |
.27 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.59 |
2.51 |
(3.12) |
1.75 |
2.92 |
|
Total from investment operations |
(.17) |
4.83 |
2.79 |
(2.88) |
1.94 |
3.19 |
|
Distributions from net investment income |
- |
(.24) |
(.29) I |
(.21) |
(.20) |
(.28) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.31) |
(.35) |
(.24) |
(.23) |
(.32) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.34 |
$ 20.52 |
$ 16.00 |
$ 13.56 |
$ 16.68 |
$ 14.97 |
|
Total Return B, C, D |
(.85)% |
30.30% |
20.58% |
(17.24)% |
13.01% |
26.49% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.93% A |
.94% |
.94% |
.95% |
.96% |
.97% |
|
Expenses net of fee waivers, if any |
.93% A |
.93% |
.94% |
.94% |
.95% |
.97% |
|
Expenses net of all reductions |
.93% A |
.92% |
.93% |
.93% |
.93% |
.94% |
|
Net investment income (loss) |
2.49% A, H |
1.31% |
1.84% |
1.49% |
1.31% |
2.08% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 51,715 |
$ 54,146 |
$ 45,774 |
$ 43,414 |
$ 60,617 |
$ 66,014 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.74%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.26 |
$ 15.80 |
$ 13.40 |
$ 16.48 |
$ 14.80 |
$ 11.98 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.23 H |
.21 |
.25 |
.21 |
.17 |
.25 |
|
Net realized and unrealized gain (loss) |
(.41) |
4.54 |
2.47 |
(3.07) |
1.73 |
2.87 |
|
Total from investment operations |
(.18) |
4.75 |
2.72 |
(2.86) |
1.90 |
3.12 |
|
Distributions from net investment income |
- |
(.22) |
(.26) I |
(.19) |
(.19) |
(.26) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.29) |
(.32) |
(.22) |
(.22) |
(.30) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.07 |
$ 20.26 |
$ 15.80 |
$ 13.40 |
$ 16.48 |
$ 14.80 |
|
Total Return B, C, D |
(.91)% |
30.15% |
20.36% |
(17.33)% |
12.82% |
26.20% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
1.08% A |
1.09% |
1.09% |
1.10% |
1.11% |
1.12% |
|
Expenses net of fee waivers, if any |
1.08% A |
1.08% |
1.09% |
1.09% |
1.10% |
1.12% |
|
Expenses net of all reductions |
1.08% A |
1.07% |
1.08% |
1.08% |
1.08% |
1.09% |
|
Net investment income (loss) |
2.34% A, H |
1.16% |
1.69% |
1.34% |
1.16% |
1.93% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 92,365 |
$ 90,537 |
$ 67,674 |
$ 58,968 |
$ 69,393 |
$ 64,200 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.59%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended |
Years ended December 31, |
||||
|
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
|
Selected Per-Share Data |
|
|
|
|
|
|
|
Net asset value, beginning of period |
$ 20.58 |
$ 16.04 |
$ 13.60 |
$ 16.73 |
$ 15.01 |
$ 12.14 |
|
Income from Investment Operations |
|
|
|
|
|
|
|
Net investment income (loss) E |
.25 H |
.24 |
.28 |
.24 |
.20 |
.27 |
|
Net realized and unrealized gain (loss) |
(.42) |
4.62 |
2.51 |
(3.12) |
1.76 |
2.92 |
|
Total from investment operations |
(.17) |
4.86 |
2.79 |
(2.88) |
1.96 |
3.19 |
|
Distributions from net investment income |
- |
(.25) |
(.29) I |
(.22) |
(.21) |
(.28) |
|
Distributions from net realized gain |
(.01) |
(.07) |
(.06) I |
(.03) |
(.03) |
(.04) |
|
Total distributions |
(.01) |
(.32) |
(.35) |
(.25) |
(.24) |
(.32) |
|
Redemption fees added to paid in capital E, K |
- |
- |
- |
- |
- |
- |
|
Net asset value, end of period |
$ 20.40 |
$ 20.58 |
$ 16.04 |
$ 13.60 |
$ 16.73 |
$ 15.01 |
|
Total Return B, C, D |
(.85)% |
30.40% |
20.54% |
(17.22)% |
13.07% |
26.42% |
|
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
|
Expenses before reductions |
.91% A |
.92% |
.93% |
.93% |
.95% |
.97% |
|
Expenses net of fee waivers, if any |
.91% A |
.92% |
.93% |
.93% |
.94% |
.97% |
|
Expenses net of all reductions |
.91% A |
.91% |
.92% |
.91% |
.92% |
.94% |
|
Net investment income (loss) |
2.50% A, H |
1.33% |
1.85% |
1.51% |
1.32% |
2.08% |
|
Supplemental Data |
|
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 305,755 |
$ 294,173 |
$ 175,442 |
$ 152,810 |
$ 177,984 |
$ 148,806 |
|
Portfolio turnover rate G |
41% A |
34% |
41% |
45% |
50% |
78% |
|
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. E Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.76%. I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. K Amount represents less than $.01 per share. |
||||||
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Overseas Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Initial Class R shares, Service Class R shares, Service Class 2R shares, and Investor Class R shares. All classes have equal rights and voting privileges, except for matters affecting a single class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, including information on transfers between Levels 1 and 2, is included at the end of 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 may 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect 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 are included in the accompanying Statement of Assets and Liabilities.
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 dividends 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. These differences resulted in distribution reclassifications for the period ended December 31, 2012.
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), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end on an unconsolidated basis were as follows:
|
Gross unrealized appreciation |
$ 451,469,915 |
|
Gross unrealized depreciation |
(93,633,181) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 357,836,734 |
|
|
|
|
Tax cost |
$ 1,463,933,206 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
|
Fiscal year of expiration |
|
|
2016 |
$ (12,503,833) |
|
2017 |
(280,447,470) |
|
Total capital loss carryforward |
$ (292,951,303) |
Trading (Redemption) Fees. Initial Class R shares, Service Class R shares, Service Class 2R shares and Investor Class R shares held by investors less than 60 days may be subject to a redemption fee equal to 1% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
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. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of, other than short-term securities, aggregated $377,863,411 and $354,112,786, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
In July 2014, the Board of Trustees approved an amendment to the management contract reducing the individual fund fee rate from .45% to .424%. The new individual fund fee rate will be effective August 1, 2014.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
For the period, total fees, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:
|
Service Class |
$ 57,385 |
|
Service Class 2 |
378,894 |
|
Service Class R |
25,993 |
|
Service Class 2 R |
112,112 |
|
|
$ 574,384 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class R) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.15% for Investor Class R) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 268,692 |
|
Service Class |
38,681 |
|
Service Class 2 |
101,851 |
|
Initial Class R |
33,377 |
|
Service Class R |
16,834 |
|
Service Class 2R |
29,063 |
|
Investor Class R |
218,120 |
|
|
$ 706,618 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,521 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviseror an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,603 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $6,511,053. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $499,695, including $3,908 from securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $12,245 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended |
Year ended |
|
From net investment income |
|
|
|
Initial Class |
$ - |
$ 9,994,667 |
|
Service Class |
- |
1,357,229 |
|
Service Class 2 |
- |
3,168,706 |
|
Initial Class R |
- |
1,290,936 |
|
Service Class R |
- |
628,888 |
|
Service Class 2R |
- |
959,606 |
|
Investor Class R |
- |
3,335,879 |
|
Total |
$ - |
$ 20,735,911 |
|
From net realized gain |
|
|
|
Initial Class |
$ 197,461 |
$ 2,739,851 |
|
Service Class |
28,825 |
403,194 |
|
Service Class 2 |
77,133 |
1,092,127 |
|
Initial Class R |
25,187 |
353,886 |
|
Service Class R |
13,104 |
185,274 |
|
Service Class 2R |
22,313 |
312,532 |
|
Investor Class R |
73,173 |
955,030 |
|
Total |
$ 437,196 |
$ 6,041,894 |
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Initial Class |
|
|
|
|
|
Shares sold |
1,943,977 |
5,801,817 |
$ 39,196,145 |
$ 107,662,358 |
|
Reinvestment of distributions |
9,761 |
649,058 |
197,461 |
12,734,518 |
|
Shares redeemed |
(3,072,895) |
(7,255,257) |
(61,773,250) |
(129,071,396) |
|
Net increase (decrease) |
(1,119,157) |
(804,382) |
$ (22,379,644) |
$ (8,674,520) |
|
Service Class |
|
|
|
|
|
Shares sold |
255,695 |
428,272 |
$ 5,137,279 |
$ 7,746,361 |
|
Reinvestment of distributions |
1,431 |
90,093 |
28,825 |
1,760,423 |
|
Shares redeemed |
(400,728) |
(1,628,602) |
(8,081,148) |
(28,843,970) |
|
Net increase (decrease) |
(143,602) |
(1,110,237) |
$ (2,915,044) |
$ (19,337,186) |
|
Service Class 2 |
|
|
|
|
|
Shares sold |
652,145 |
1,340,055 |
$ 13,054,385 |
$ 23,878,028 |
|
Reinvestment of distributions |
3,847 |
218,953 |
77,133 |
4,260,833 |
|
Shares redeemed |
(1,377,420) |
(7,981,874) |
(27,384,896) |
(142,365,692) |
|
Net increase (decrease) |
(721,428) |
(6,422,866) |
$ (14,253,378) |
$ (114,226,831) |
|
Initial Class R |
|
|
|
|
|
Shares sold |
159,238 |
435,761 |
$ 3,206,373 |
$ 8,137,230 |
|
Reinvestment of distributions |
1,248 |
84,048 |
25,187 |
1,644,822 |
|
Shares redeemed |
(377,859) |
(988,816) |
(7,571,228) |
(17,709,460) |
|
Net increase (decrease) |
(217,373) |
(469,007) |
$ (4,339,668) |
$ (7,927,408) |
Semiannual Report
10. Share Transactions - continued
|
|
Shares |
Dollars |
||
|
|
Year ended |
Year ended |
||
|
Service Class R |
|
|
|
|
|
Shares sold |
122,764 |
215,668 |
$ 2,457,608 |
$ 3,976,622 |
|
Reinvestment of distributions |
652 |
41,731 |
13,104 |
814,162 |
|
Shares redeemed |
(219,300) |
(480,725) |
(4,374,971) |
(8,684,273) |
|
Net increase (decrease) |
(95,884) |
(223,326) |
$ (1,904,259) |
$ (3,893,489) |
|
Service Class 2R |
|
|
|
|
|
Shares sold |
373,173 |
635,014 |
$ 7,378,612 |
$ 11,565,664 |
|
Reinvestment of distributions |
1,124 |
66,051 |
22,313 |
1,272,138 |
|
Shares redeemed |
(239,801) |
(515,803) |
(4,751,014) |
(9,082,206) |
|
Net increase (decrease) |
134,496 |
185,262 |
$ 2,649,911 |
$ 3,755,596 |
|
Investor Class R |
|
|
|
|
|
Shares sold |
1,341,521 |
4,240,579 |
$ 26,947,608 |
$ 79,414,168 |
|
Reinvestment of distributions |
3,628 |
219,372 |
73,173 |
4,290,909 |
|
Shares redeemed |
(650,791) |
(1,102,402) |
(13,014,789) |
(19,510,986) |
|
Net increase (decrease) |
694,358 |
3,357,549 |
$ 14,005,992 |
$ 64,194,091 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 19% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 18% of the total outstanding shares of the Fund.
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Japan) Inc.
Fidelity Management & Research (Hong Kong) Limited
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
VIPOVRSR-SANN-0814 1.774855.112
Fidelity® Variable Insurance Products:
Floating Rate High Income Portfolio
Semiannual Report
(Fidelity Cover Art)
|
Shareholder Expense Example |
An example of shareholder expenses. |
|
|
Investment Summary |
A summary of the fund's holdings. |
|
|
Investments |
A complete list of the fund's investments with their market values. |
|
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
|
Notes |
Notes to the financial statements. |
|
|
Board Approval of Investment Advisory Contracts and Management Fees |
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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 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.
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. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the period (April 9, 2014 to June 30, 2014). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (January 1, 2014 to June 30, 2014).
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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. 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 |
Beginning |
Ending |
Expenses Paid |
|
Initial Class |
.77% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,005.00 |
$ 1.76C |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.98 |
$ 3.86D |
|
Investor Class |
.80% |
|
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,005.00 |
$ 1.82C |
|
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.83 |
$ 4.01D |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Actual expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 83/365 (to reflect the period April 9, 2014 to June 30, 2014).
D Hypothetical expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
|
Top Five Holdings as of June 30, 2014 |
|
|
(by issuer, excluding cash equivalents) |
% of fund's |
|
DaVita HealthCare Partners, Inc. |
2.2 |
|
The ServiceMaster Co. |
2.2 |
|
Berry Plastics Corp. |
2.1 |
|
Laureate Education, Inc. |
2.1 |
|
Landmark Worldwide |
1.8 |
|
|
10.4 |
|
Top Five Market Sectors as of June 30, 2014 |
|
|
|
% of fund's |
|
Containers |
8.7 |
|
Healthcare |
8.1 |
|
Technology |
7.4 |
|
Services |
6.1 |
|
Cable TV |
6.0 |
|
Quality Diversification (% of fund's net assets) |
|||
|
As of June 30, 2014 |
|||
|
BBB 1.4% |
|
|
 |
BB 21.1% |
|
|
 |
B 53.5% |
|
|
 |
CCC,CC,C 4.3% |
|
|
|
Not Rated 8.4% |
|
|
|
Short-Term |
|
|
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
|
Asset Allocation (% of fund's net assets) |
|||
|
As of June 30, 2014* |
|||
|
Bank Loan |
|
|
|
Nonconvertible |
|
|
|
Short-Term |
|
|
|
* Foreign investments |
11.0% |
|
|
Semiannual Report
Showing Percentage of Net Assets
|
Bank Loan Obligations (e) - 87.0% |
||||
|
|
Principal Amount |
Value |
||
|
Aerospace - 1.4% |
||||
|
TransDigm, Inc.: |
|
|
|
|
|
Tranche C, term loan 3.75% 2/28/20 (d) |
|
$ 498,734 |
$ 495,617 |
|
|
Tranche D, term loan 3.75% 6/4/21 (d) |
|
465,000 |
463,256 |
|
|
|
958,873 |
|||
|
Air Transportation - 1.8% |
||||
|
Landmark Worldwide Tranche 1LN, term loan 10/25/19 (f) |
|
1,250,000 |
1,251,563 |
|
|
Automotive - 0.9% |
||||
|
Federal-Mogul Corp. Tranche C, term loan 4.75% 4/15/21 (d) |
|
500,000 |
495,313 |
|
|
INA Beteiligungsgesellschaft MBH Tranche E, term loan 5/15/20 (f) |
|
125,000 |
125,469 |
|
|
|
620,782 |
|||
|
Broadcasting - 0.7% |
||||
|
Clear Channel Communications, Inc. Tranche D, term loan 6.8995% 1/30/19 (d) |
|
500,000 |
497,500 |
|
|
Building Materials - 0.7% |
||||
|
Interline Brands, Inc. Tranche B, term loan 4% 3/17/21 (d) |
|
498,750 |
498,750 |
|
|
Cable TV - 6.0% |
||||
|
Charter Communications Operating LLC Tranche E, term loan 3% 7/1/20 (d) |
|
498,741 |
492,195 |
|
|
Liberty Cablevision of Puerto Rico: |
|
|
|
|
|
Tranche 1LN, term loan 6/30/21 (f) |
|
60,000 |
60,000 |
|
|
Tranche 2LN, term loan 6/30/23 (f) |
|
240,000 |
240,600 |
|
|
Mediacom Broadband LLC term loan 3.75% 6/30/21 (d) |
|
1,000,000 |
1,001,250 |
|
|
Numericable LLC: |
|
|
|
|
|
Tranche B 1LN, term loan 4.5% 5/8/20 (d) |
|
592,450 |
596,153 |
|
|
Tranche B 2LN, term loan 4.5% 5/8/20 (d) |
|
512,550 |
515,753 |
|
|
Virgin Media Finance PLC Tranche B, term loan 3.5% 6/7/20 (d) |
|
1,250,000 |
1,242,188 |
|
|
Zayo Group LLC Tranche B, term loan 4% 7/2/19 (d) |
|
19,949 |
19,974 |
|
|
|
4,168,113 |
|||
|
Capital Goods - 1.6% |
||||
|
Doosan Infracore, Inc. Tranche B, term loan 4.5% 5/28/21 (d) |
|
80,000 |
80,500 |
|
|
Husky Injection Molding Systems Ltd. Tranche 1LN, term loan 6/30/21 (f) |
|
1,000,000 |
1,003,750 |
|
|
Utex Industries, Inc. Tranche B 1LN, term loan 5% 5/22/21 (d) |
|
35,000 |
35,396 |
|
|
|
1,119,646 |
|||
|
|
||||
|
|
Principal Amount |
Value |
||
|
Chemicals - 0.1% |
||||
|
Arizona Chem U.S., Inc.: |
|
|
|
|
|
Tranche 2LN, term loan 6/12/22 (f) |
|
$ 20,000 |
$ 20,375 |
|
|
Tranche B 1LN, term loan 6/12/21 (f) |
|
70,000 |
70,525 |
|
|
|
90,900 |
|||
|
Containers - 7.3% |
||||
|
Anchor Glass Container Corp. Tranche B, term loan 5/16/21 (f) |
|
120,000 |
120,300 |
|
|
Ardagh Holdings U.S.A., Inc. Tranche B, term loan 4% 12/17/19 (d) |
|
500,000 |
500,000 |
|
|
Berry Plastics Corp. Tranche E, term loan 3.75% 1/6/21 (d) |
|
1,496,250 |
1,490,639 |
|
|
Consolidated Container Co. Tranche 2LN, term loan 9.75% 1/3/20 (d) |
|
1,000,000 |
985,000 |
|
|
Reynolds Consumer Products Holdings, Inc. Tranche B, term loan 4% 12/1/18 (d) |
|
748,120 |
749,991 |
|
|
Signode Packaging Systems, Inc. Tranche B, term loan 4% 5/1/21 (d) |
|
500,000 |
497,500 |
|
|
U.S. Devices Prescription Co.: |
|
|
|
|
|
Tranche 2LN, term loan 8% 5/2/22 (d) |
|
250,000 |
250,625 |
|
|
Tranche B 1LN, term loan 4.25% 5/2/21 (d) |
|
500,000 |
500,000 |
|
|
|
5,094,055 |
|||
|
Diversified Financial Services - 1.6% |
||||
|
Moxie Patriot LLC Tranche B, term loan 6.75% 12/19/20 (d) |
|
500,000 |
514,375 |
|
|
TransUnion LLC Tranche B, term loan 4% 4/9/21 (d) |
|
498,750 |
498,750 |
|
|
Vantiv LLC Tranche B, term loan 3.75% 6/13/21 (d) |
|
110,000 |
110,413 |
|
|
|
1,123,538 |
|||
|
Diversified Media - 1.1% |
||||
|
Checkout Holding Corp.: |
|
|
|
|
|
Tranche 2LN, term loan 7.75% 4/9/22 (d) |
|
250,000 |
250,000 |
|
|
Tranche B 1LN, term loan 4.5% 4/9/21 (d) |
|
500,000 |
500,000 |
|
|
|
750,000 |
|||
|
Electric Utilities - 5.5% |
||||
|
Alfred Fueling Systems, Inc. Tranche B 1LN, term loan 4.75% 6/20/21 (d) |
|
1,000,000 |
1,001,250 |
|
|
Bayonne Energy Center, LLC Tranche B, term loan 6/30/21 (f) |
|
240,000 |
241,800 |
|
|
Calpine Construction Finance Co. LP Tranche B 1LN, term loan 3% 5/3/20 (d) |
|
498,741 |
489,389 |
|
|
Bank Loan Obligations (e) - continued |
||||
|
|
Principal Amount |
Value |
||
|
Electric Utilities - continued |
||||
|
Energy Future Holdings Corp. Tranche 1LN, term loan 4.25% 6/19/16 (d) |
|
$ 115,000 |
$ 115,000 |
|
|
Essential Power LLC Tranche B, term loan 4.75% 8/8/19 (d) |
|
1,000,000 |
1,007,500 |
|
|
Topaz Power Holdings, LLC Tranche B, term loan 6.25% 2/26/20 (d) |
|
491,279 |
491,279 |
|
|
USIC Holdings, Inc. Tranche B, term loan 4% 7/10/20 (d) |
|
498,741 |
495,000 |
|
|
|
3,841,218 |
|||
|
Energy - 4.1% |
||||
|
Empire Generating Co. LLC: |
|
|
|
|
|
Tranche B, term loan 5.25% 3/14/21 (d) |
|
699,334 |
707,202 |
|
|
Tranche C, term loan 5.25% 3/14/21 (d) |
|
48,913 |
49,463 |
|
|
Fieldwood Energy, LLC Tranche 2LN, term loan 8.375% 9/30/20 (d) |
|
500,000 |
516,250 |
|
|
Floatel International Ltd. Tranche B, term loan 7.25% 6/27/20 (d) |
|
159,600 |
160,997 |
|
|
Panda Sherman Power, LLC term loan 9% 9/14/18 (d) |
|
500,000 |
508,750 |
|
|
Seadrill Operating LP Tranche B, term loan 4% 2/21/21 (d) |
|
154,612 |
154,032 |
|
|
Vantage Drilling Co. Tranche B, term loan 5.75% 3/28/19 (d) |
|
748,106 |
744,366 |
|
|
|
2,841,060 |
|||
|
Environmental - 2.9% |
||||
|
ADS Waste Holdings, Inc. Tranche B 2LN, term loan 3.75% 10/9/19 (d) |
|
498,734 |
496,864 |
|
|
Tervita Corp. Tranche B 1LN, term loan 6.25% 5/15/18 (d) |
|
500,000 |
501,875 |
|
|
The Brickman Group, Ltd. Tranche B 1LN, term loan 4% 12/18/20 (d) |
|
1,000,000 |
990,000 |
|
|
|
1,988,739 |
|||
|
Food & Drug Retail - 3.2% |
||||
|
Ferrara Candy Co., Inc. Tranche B, term loan 7.5% 6/18/18 (d) |
|
498,728 |
490,000 |
|
|
Performance Food Group, Inc. Tranche 2LN, term loan 6.25% 11/14/19 (d) |
|
1,000,000 |
1,011,250 |
|
|
PRA Holdings, Inc. Tranche B, term loan 4.5% 9/23/20 (d) |
|
498,744 |
496,250 |
|
|
Stater Bros. Markets Tranche B, term loan 4.75% 5/12/21 (d) |
|
250,000 |
251,250 |
|
|
|
2,248,750 |
|||
|
Food/Beverage/Tobacco - 1.4% |
||||
|
H.J. Heinz Co. Tranche B 2LN, term loan 3.5% 6/7/20 (d) |
|
498,741 |
501,234 |
|
|
Post Holdings, Inc. Tranche B, term loan 3.75% 6/2/21 (d) |
|
50,000 |
50,375 |
|
|
|
||||
|
|
Principal Amount |
Value |
||
|
Shearer's Foods, Inc.: |
|
|
|
|
|
Tranche 2LN, term loan 7.75% 6/30/22 (d) |
|
$ 255,000 |
$ 256,275 |
|
|
Tranche B 1LN, term loan 4.5% 6/30/21 (d) |
|
135,000 |
135,675 |
|
|
|
943,559 |
|||
|
Gaming - 4.5% |
||||
|
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 7% 10/11/20 (d) |
|
793,008 |
798,955 |
|
|
Caesars Growth Properties Holdings, LLC Tranche 1LN, term loan 6.25% 5/8/21 (d) |
|
825,000 |
822,938 |
|
|
Mohegan Tribal Gaming Authority Tranche B, term loan 5.5% 11/19/19 (d) |
|
498,747 |
506,438 |
|
|
Scientific Games Corp. Tranche B, term loan 4.25% 10/18/20 (d) |
|
498,747 |
493,759 |
|
|
Station Casinos LLC Tranche B, term loan 4.25% 3/1/20 (d) |
|
482,989 |
484,196 |
|
|
|
3,106,286 |
|||
|
Healthcare - 8.1% |
||||
|
Community Health Systems, Inc. Tranche D, term loan 4.25% 1/27/21 (d) |
|
498,747 |
501,241 |
|
|
DaVita HealthCare Partners, Inc. Tranche B, term loan 6/24/21 (f) |
|
1,500,000 |
1,503,742 |
|
|
Dialysis Newco, Inc.: |
|
|
|
|
|
Tranche 2LN, term loan 7.75% 10/22/21 (d) |
|
115,000 |
115,575 |
|
|
Tranche B 1LN, term loan 4.75% 4/23/21 (d) |
|
90,000 |
90,113 |
|
|
Drumm Investors LLC Tranche B, term loan 6.75% 5/4/18 (d) |
|
453,892 |
455,027 |
|
|
ESH Hospitality, Inc. Tranche B, term loan 6/24/19 (f) |
|
40,000 |
40,450 |
|
|
HCA Holdings, Inc. Tranche B 4LN, term loan 2.9841% 5/1/18 (d) |
|
557,066 |
557,066 |
|
|
MPH Acquisition Holdings LLC Tranche B, term loan 4% 3/31/21 (d) |
|
486,364 |
484,540 |
|
|
Patheon, Inc. Tranche B, term loan 4.25% 3/11/21 (d) |
|
500,000 |
496,250 |
|
|
Pharmedium Healthcare Corp. Tranche B 1LN, term loan 4.25% 1/28/21 (d) |
|
486,250 |
488,073 |
|
|
Polymer Group, Inc.: |
|
|
|
|
|
term loan 12/19/19 (g) |
|
15,181 |
15,219 |
|
|
Tranche B, term loan 5.25% 12/19/19 (d) |
|
44,707 |
45,098 |
|
|
Skilled Healthcare Group, Inc. term loan 6.75% 4/9/16 (d) |
|
100,000 |
99,500 |
|
|
U.S. Renal Care, Inc. Tranche B 2LN, term loan 4.25% 7/3/19 (d) |
|
748,116 |
749,986 |
|
|
|
5,641,880 |
|||
|
Bank Loan Obligations (e) - continued |
||||
|
|
Principal Amount |
Value |
||
|
Homebuilders/Real Estate - 1.4% |
||||
|
Realogy Group LLC Tranche B, term loan 3.75% 3/5/20 (d) |
|
$ 1,000,000 |
$ 1,000,000 |
|
|
Hotels - 1.4% |
||||
|
Hilton Worldwide Finance, LLC Tranche B, term loan 3.5% 10/25/20 (d) |
|
478,448 |
478,448 |
|
|
La Quinta Intermediate Holdings LLC Tranche B LN, Tranche B, term loan 4% 4/14/21 (d) |
|
480,952 |
480,952 |
|
|
Ryman Hospitality Properties, Inc. Tranche B, term loan 3.75% 1/15/21 (d) |
|
35,000 |
35,219 |
|
|
|
994,619 |
|||
|
Insurance - 0.7% |
||||
|
HUB International Ltd. Tranche B 1LN, term loan 4.25% 10/2/20 (d) |
|
498,750 |
499,373 |
|
|
Leisure - 0.2% |
||||
|
24 Hour Fitness Worldwide, Inc. Tranche B, term loan 4.75% 5/30/21 (d) |
|
85,000 |
85,744 |
|
|
Equinox Holdings, Inc. Tranche B 1LN, term loan 4.25% 2/1/20 (d) |
|
15,000 |
15,075 |
|
|
|
100,819 |
|||
|
Metals/Mining - 2.9% |
||||
|
American Rock Salt Co. LLC Tranche B 1LN, term loan 4.75% 5/20/21 (d) |
|
455,000 |
453,294 |
|
|
Ameriforge Group, Inc. Tranche B 1LN, term loan 5% 1/25/20 (d) |
|
498,750 |
502,491 |
|
|
Doncasters Group, LLC Tranche B 1LN, term loan 4.5% 4/9/20 (d) |
|
59,849 |
59,699 |
|
|
Fortescue Metals Group Ltd. Tranche B, term loan 3.75% 6/30/19 (d) |
|
498,744 |
497,497 |
|
|
Walter Energy, Inc. Tranche B, term loan 7.25% 4/1/18 (d) |
|
500,000 |
482,500 |
|
|
|
1,995,481 |
|||
|
Paper - 0.4% |
||||
|
Otter Products, LLC Tranche B, term loan 5.75% 6/3/20 (d) |
|
250,000 |
247,500 |
|
|
Publishing/Printing - 2.5% |
||||
|
Getty Images, Inc. Tranche B, term loan 4.75% 10/18/19 (d) |
|
748,101 |
721,918 |
|
|
Harland Clarke Holdings Corp. Tranche B 4LN, term loan 6% 8/4/19 (d) |
|
496,855 |
505,550 |
|
|
Springer Science+Business Media Deutschland GmbH Tranche B 2LN, term loan 5% 8/14/20 (d) |
|
498,744 |
499,679 |
|
|
|
1,727,147 |
|||
|
|
||||
|
|
Principal Amount |
Value |
||
|
Restaurants - 1.1% |
||||
|
CEC Entertainment, Inc. Tranche B, term loan 4.25% 2/14/21 (d) |
|
$ 498,750 |
$ 496,880 |
|
|
TGI Friday's, Inc. Tranche B 1LN, term loan 6/30/20 (f) |
|
240,000 |
240,300 |
|
|
|
737,180 |
|||
|
Services - 6.1% |
||||
|
ARAMARK Corp. Tranche F, term loan 3.25% 2/24/21 (d) |
|
498,750 |
493,763 |
|
|
Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (d) |
|
1,497,445 |
1,471,239 |
|
|
Nord Anglia Education Tranche B, term loan 4.5% 3/31/21 (d) |
|
750,000 |
750,000 |
|
|
The ServiceMaster Co. Tranche B, term loan 6/30/21 (f) |
|
1,500,000 |
1,498,125 |
|
|
|
4,213,127 |
|||
|
Shipping - 2.2% |
||||
|
Harvey Gulf International Tranche B, term loan 5.5% 6/18/20 (d) |
|
498,744 |
496,898 |
|
|
Swift Transportation Co. LLC Tranche B, term loan 3.75% 6/9/21 (d) |
|
299,250 |
299,250 |
|
|
YRC Worldwide, Inc. Tranche B, term loan 8% 2/13/19 (d) |
|
748,120 |
748,120 |
|
|
|
1,544,268 |
|||
|
Super Retail - 4.7% |
||||
|
Bass Pro Group LLC Tranche B, term loan 3.75% 11/20/19 (d) |
|
498,718 |
498,095 |
|
|
BJ's Wholesale Club, Inc. Tranche B 1LN, term loan 4.5% 9/26/19 (d) |
|
498,747 |
499,059 |
|
|
J. Crew Group, Inc. Tranche B LN, term loan 4% 3/5/21 (d) |
|
1,000,000 |
986,300 |
|
|
JC Penney Corp., Inc. Tranche B, term loan: |
|
|
|
|
|
5% 6/20/19 (d) |
|
60,000 |
60,228 |
|
|
6% 5/22/18 (d) |
|
748,111 |
754,657 |
|
|
Sports Authority, Inc. Tranche B, term loan 7.5% 11/16/17 (d) |
|
498,771 |
498,771 |
|
|
|
3,297,110 |
|||
|
Technology - 7.4% |
||||
|
BMC Software Finance, Inc. Tranche B, term loan 5% 9/10/20 (d) |
|
498,747 |
496,253 |
|
|
Carros U.S., LLC Tranche B, term loan 6/30/21 (f) |
|
80,000 |
80,500 |
|
|
Computer Discount Warehouse (CDW) LLC, Tranche B, term loan 3.25% 4/29/20 (d) |
|
498,738 |
493,127 |
|
|
Datapipe, Inc. Tranche B 1LN, term loan 5.25% 3/15/19 (d) |
|
249,375 |
250,934 |
|
|
Dell International LLC Tranche B, term loan 4.5% 4/29/20 (d) |
|
998,747 |
1,002,542 |
|
|
First Data Corp. term loan 4.154% 3/24/18 (d) |
|
500,000 |
500,625 |
|
|
Bank Loan Obligations (e) - continued |
||||
|
|
Principal Amount |
Value |
||
|
Technology - continued |
||||
|
G.I. Peak Merger Sub Corp.: |
|
|
|
|
|
Tranche 2LN, term loan 8% 6/17/22 (d) |
|
$ 50,000 |
$ 49,938 |
|
|
Tranche B 1LN, term loan 5% 6/17/21 (d) |
|
120,000 |
120,150 |
|
|
Infor U.S., Inc. Tranche B 5LN, term loan 3.75% 6/3/20 (d) |
|
748,120 |
741,612 |
|
|
Kronos, Inc. Tranche B 1LN, term loan 4.5% 10/30/19 (d) |
|
77,955 |
78,442 |
|
|
Renaissance Learning, Inc. Tranche 1LN, term loan 4.5% 4/9/21 (d) |
|
748,125 |
746,255 |
|
|
TELX, Inc. Tranche B 1LN, term loan 4/9/20 (f) |
|
500,000 |
500,625 |
|
|
WP Mustang Holdings, LLC. Tranche B 1LN, term loan 5.5% 5/29/21 (d) |
|
75,000 |
75,844 |
|
|
|
5,136,847 |
|||
|
Telecommunications - 3.1% |
||||
|
Altice Financing SA Tranche B, term loan 5.5% 6/24/19 (d) |
|
498,747 |
509,969 |
|
|
Digicel International Finance Ltd. Tranche D-2, term loan 3/31/19 (f) |
|
100,000 |
99,500 |
|
|
Level 3 Financing, Inc. Tranche B 4LN, term loan 4% 1/15/20 (d) |
|
500,000 |
499,400 |
|
|
LTS Buyer LLC Tranche B 1LN, term loan 4% 4/11/20 (d) |
|
498,741 |
500,611 |
|
|
Securus Technologies Holdings, Inc. Tranche B 1LN, term loan 4.75% 4/30/20 (d) |
|
498,744 |
500,614 |
|
|
TCH-2 Holdings, LLC. Tranche B 1LN, term loan 5.5% 5/12/21 (d) |
|
45,000 |
44,667 |
|
|
|
2,154,761 |
|||
|
TOTAL BANK LOAN OBLIGATIONS (Cost $60,364,642) |
|
|||
|
Nonconvertible Bonds - 1.7% |
||||
|
|
||||
|
Containers - 1.4% |
||||
|
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 3.2132% 12/15/19 (b)(c)(d) |
|
1,000,000 |
997,500 |
|
|
Electric Utilities - 0.1% |
||||
|
The AES Corp. 3.2411% 6/1/19 (d) |
|
45,000 |
45,338 |
|
|
Energy - 0.0% |
||||
|
Chesapeake Energy Corp. 3.4786% 4/15/19 (d) |
|
35,000 |
35,394 |
|
|
|
||||
|
|
Principal Amount |
Value |
||
|
Food/Beverage/Tobacco - 0.1% |
||||
|
C&S Group Enterprises LLC 5.375% 7/15/22 (b)(c) |
|
$ 85,000 |
$ 85,425 |
|
|
Publishing/Printing - 0.1% |
||||
|
Cenveo Corp. 6% 8/1/19 (b) |
|
40,000 |
40,000 |
|
|
TOTAL NONCONVERTIBLE BONDS (Cost $1,204,888) |
|
|||
|
Money Market Funds - 27.8% |
|||
|
Shares |
|
||
|
Fidelity Cash Central Fund, 0.11% (a) |
19,309,871 |
|
|
|
TOTAL INVESTMENT PORTFOLIO - 116.5% (Cost $80,879,401) |
80,946,972 |
|
|
NET OTHER ASSETS (LIABILITIES) - (16.5)% |
(11,444,841) |
|
|
NET ASSETS - 100% |
$ 69,502,131 |
|
|
Legend |
|
(a) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
|
(b) 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 $1,122,925 or 1.6% of net assets. |
|
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
|
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
|
(e) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. |
|
(f) The coupon rate will be determined upon settlement of the loan after period end. |
|
(g) Position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $15,181 and $15,219, respectively. The coupon rate will be determined at time of settlement. |
|
Affiliated Central Funds |
|
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
|
Fund |
Income earned |
|
Fidelity Cash Central Fund |
$ 2,993 |
|
Other Information |
|
The following is a summary of the inputs used, as of June 30, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
|
Valuation Inputs at Reporting Date: |
||||
|
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
|
Investments in Securities: |
||||
|
Bank Loan Obligations |
$ 60,433,444 |
$ - |
$ 60,317,869 |
$ 115,575 |
|
Corporate Bonds |
1,203,657 |
- |
1,203,657 |
- |
|
Money Market Funds |
19,309,871 |
19,309,871 |
- |
- |
|
Total Investments in Securities: |
$ 80,946,972 |
$ 19,309,871 |
$ 61,521,526 |
$ 115,575 |
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
|
United States of America |
89.0% |
|
Canada |
3.5% |
|
United Kingdom |
2.3% |
|
Ireland |
1.4% |
|
Cayman Islands |
1.1% |
|
Others (Individually Less Than 1%) |
2.7% |
|
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Assets |
|
|
|
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $61,569,530) |
$ 61,637,101 |
|
|
Fidelity Central Funds (cost $19,309,871) |
19,309,871 |
|
|
Total Investments (cost $80,879,401) |
|
$ 80,946,972 |
|
Cash |
|
4,808,561 |
|
Receivable for investments sold |
|
589,857 |
|
Receivable for fund shares sold |
|
448,374 |
|
Interest receivable |
|
209,036 |
|
Distributions receivable from Fidelity Central Funds |
|
1,453 |
|
Other receivables |
|
250 |
|
Total assets |
|
87,004,503 |
|
|
|
|
|
Liabilities |
|
|
|
Payable for investments purchased |
$ 16,358,725 |
|
|
Delayed delivery |
1,085,000 |
|
|
Payable for fund shares redeemed |
4 |
|
|
Accrued management fee |
29,021 |
|
|
Other affiliated payables |
7,099 |
|
|
Other payables and accrued expenses |
22,523 |
|
|
Total liabilities |
|
17,502,372 |
|
|
|
|
|
Net Assets |
|
$ 69,502,131 |
|
Net Assets consist of: |
|
|
|
Paid in capital |
|
$ 69,221,045 |
|
Undistributed net investment income |
|
215,288 |
|
Accumulated undistributed net realized gain (loss) on investments |
|
(1,773) |
|
Net unrealized appreciation (depreciation) on investments |
|
67,571 |
|
Net Assets |
|
$ 69,502,131 |
|
|
June 30, 2014 (Unaudited) |
|
|
|
|
|
|
Initial Class: |
|
$ 10.05 |
|
|
|
|
|
Investor Class: |
|
$ 10.05 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
For the period April 9, 2014 |
|
|
|
|
|
|
Investment Income |
|
|
|
Interest |
|
$ 283,739 |
|
Income from Fidelity Central Funds |
|
2,993 |
|
Total income |
|
286,732 |
|
|
|
|
|
Expenses |
|
|
|
Management fee |
$ 50,397 |
|
|
Transfer agent fees |
8,453 |
|
|
Accounting fees and expenses |
4,416 |
|
|
Custodian fees and expenses |
4,029 |
|
|
Independent trustees' compensation |
19 |
|
|
Audit |
19,472 |
|
|
Total expenses before reductions |
86,786 |
|
|
Expense reductions |
(15,342) |
71,444 |
|
Net investment income (loss) |
|
215,288 |
|
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
|
Investment securities: |
|
|
|
Unaffiliated issuers |
|
(1,773) |
|
Change in net unrealized appreciation (depreciation) on investment securities |
|
67,571 |
|
Net gain (loss) |
|
65,798 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ 281,086 |
|
|
For the period |
|
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 215,288 |
|
Net realized gain (loss) |
(1,773) |
|
Change in net unrealized appreciation (depreciation) |
67,571 |
|
Net increase (decrease) in net assets resulting from operations |
281,086 |
|
Share transactions - net increase (decrease) |
69,221,045 |
|
Total increase (decrease) in net assets |
69,502,131 |
|
|
|
|
Net Assets |
|
|
Beginning of period |
- |
|
End of period (including undistributed net investment income of $215,288) |
$ 69,502,131 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
|
Six months ended June 30, 2014 I |
|
|
(Unaudited) |
|
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 10.00 |
|
Income from Investment Operations |
|
|
Net investment income (loss) E |
.054 |
|
Net realized and unrealized gain (loss) |
(.004)H |
|
Total from investment operations |
.050 |
|
Net asset value, end of period |
$ 10.05 |
|
Total ReturnB, C, D |
.50% |
|
Ratios to Average Net Assets F, J |
|
|
Expenses before reductions |
.97%A |
|
Expenses net of fee waivers, if any |
.77%A |
|
Expenses net of all reductions |
.77%A |
|
Net investment income (loss) |
2.39%A |
|
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ 11,137 |
|
Portfolio turnover rateG |
2%K |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period April 9, 2014 (commencement of operations) to June 30, 2014.
J Expense ratios reflect operating expenses of the class. 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 class 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 expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount not annualized.
|
|
Six months ended |
|
|
(Unaudited) |
|
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 10.00 |
|
Income from Investment Operations |
|
|
Net investment income (loss) E |
.052 |
|
Net realized and unrealized gain (loss) |
(.002)H |
|
Total from investment operations |
.050 |
|
Net asset value, end of period |
$ 10.05 |
|
Total ReturnB, C, D |
.50% |
|
Ratios to Average Net Assets F, J |
|
|
Expenses before reductions |
.95%A |
|
Expenses net of fee waivers, if any |
.80%A |
|
Expenses net of all reductions |
.80%A |
|
Net investment income (loss) |
2.37%A |
|
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ 58,365 |
|
Portfolio turnover rateG |
2%K |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period April 9, 2014 (commencement of operations) to June 30, 2014.
J Expense ratios reflect operating expenses of the class. 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 class 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 expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended June 30, 2014 (Unaudited)
1. Organization.
VIP Floating Rate High Income Portfolio (the Fund) is a fund of Variable Insurance Products Fund (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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .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 financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, is included at the end of the Fund's Schedule of Investments.
Semiannual Report
3. Significant Accounting Policies - continued
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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
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.
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 dividends 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.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation |
$ 180,077 |
|
Gross unrealized depreciation |
(110,526) |
|
Net unrealized appreciation (depreciation) on securities and other investments |
$ 69,551 |
|
|
|
|
Tax cost |
$ 80,877,421 |
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. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities (including principal repayments of bank loan obligations), other than short-term securities, aggregated $62,237,965 and $662,902, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .56% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class (with the exception of Investor Class) pays a fee for transfer agent services, typesetting, printing and mailing of shareholder reports, excluding mailing of proxy statements and out of pocket expenses, equal to an annual rate of .07% (.10% for Investor Class) of average net assets. For the period, transfer agent fees for each class, including out of pocket expenses, were as follows:
|
Initial Class |
$ 1,650 |
|
Investor Class |
6,803 |
|
|
$ 8,453 |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
6. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement. This reimbursement will remain in place through April 30, 2015.
The following classes were in reimbursement during the period:
|
|
Expense |
Reimbursement |
|
Initial Class |
.77% |
$ 4,741 |
|
Investor Class |
.80% |
10,601 |
|
|
|
$ 15,342 |
7. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares |
Dollars |
|
|
||
|
Initial Class |
|
|
|
Shares sold |
1,116,047 |
$ 11,161,922 |
|
Shares redeemed |
(7,666) |
(76,961) |
|
Net increase (decrease) |
1,108,381 |
$ 11,084,961 |
|
Investor Class |
|
|
|
Shares sold |
5,809,036 |
$ 58,136,460 |
|
Shares redeemed |
(37) |
(376) |
|
Net increase (decrease) |
5,808,999 |
$ 58,136,084 |
A For the period April 9, 2014 (commencement of operations) to June 30, 2014.
Semiannual Report
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.
Semiannual Report
VIP Floating Rate High Income Portfolio
On January 14, 2014, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
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 FMR and the sub-advisers (together, the Investment Advisers), and also considered the fund's investment objective, strategies, and related investment philosophy. The Board considered the structure of the portfolio manager 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 believes 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 and risk management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be 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. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians and subcustodians.
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 or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contracts. The Board considered the Investment Advisers' strength in fundamental, research-driven security selection, which the Board is familiar with through its supervision of other Fidelity funds.
Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's proposed management fee and the projected total expense ratio of each class of the fund in reviewing the Advisory Contracts. The Board noted that the fund's proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable investment mandates, regardless of whether their management fee structures are comparable. The Board also considered that the projected total expense ratio of each class of the fund is below the median of those funds and classes used by the Board for management fee comparisons that have a similar sales load structure.
The Board also noted that FMR has contractually agreed to reimburse each class of the fund until April 30, 2015, to the extent total operating expenses (excluding interest, certain taxes, certain securities lending costs, brokerage commissions, extraordinary expenses, and acquired fund fees and expenses, if any), as a percentage of average net assets of each class exceed a certain limit.
Based on its review, the Board concluded that the management fee and the projected total expense ratio of each class of the fund were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.
Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund's Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund's shareholders.
Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be approved.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank & Trust Company
Quincy, MA
VIPFHI-SANN-0814 1.9859332.100
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 Variable Insurance Products Fund's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Variable Insurance Products Fund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
|
(a) |
(1) |
Not applicable. |
|
(a) |
(2) |
Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
|
(a) |
(3) |
Not applicable. |
|
(b) |
|
Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Variable Insurance Products Fund
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By: |
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President and Treasurer |
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Date: |
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.
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By: |
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President and Treasurer |
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Date: |
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By: |
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Chief Financial Officer |
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Date: |
| This ‘N-CSRS’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 4/30/15 | ||||
| Filed on / Effective on: | 8/22/14 | |||
| 8/1/14 | 497, 497K | |||
| For Period End: | 6/30/14 | N-PX, NSAR-A | ||
| 4/9/14 | ||||
| 1/14/14 | ||||
| 1/1/14 | ||||
| 12/31/13 | 24F-2NT, N-CSR, NSAR-B | |||
| 12/31/12 | 24F-2NT, N-CSR, NSAR-B | |||
| 12/22/10 | ||||
| List all Filings | ||||