Semiannual Report
Financial Highlights - Institutional Class
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.18
|
$ 8.42
|
$ 9.28
|
$ 8.51
|
$ 8.28
|
$ 10.66
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.07
|
.18
|
.18
|
.36
G
|
.19
|
.20
|
|
Net realized and unrealized gain
(loss)
|
.15
|
2.03
|
(.67
)
|
1.06
|
.24
|
(2.58
)
|
|
Total from investment operations
|
.22
|
2.21
|
(.49
)
|
1.42
|
.43
|
(2.38
)
|
|
Distributions from net investment
income
|
(.19)
|
(.19)
|
(.20)
|
(.35)
|
(.08)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.54
)
|
(.46
)
|
(.37
)
J
|
(.65
)
K
|
(.20
)
|
-
|
|
Redemption fees added to paid in
capital
D
|
-
I
|
.01
|
-
I
|
-
I
|
-
I
|
-
I
|
|
Net asset value, end of period
|
$ 9.86
|
$ 10.18
|
$ 8.42
|
$ 9.28
|
$ 8.51
|
$ 8.28
|
|
Total Return
B,C
|
2.17%
|
27.33%
|
(4.73)%
|
17.18%
|
5.18%
|
(22.33)%
|
|
Ratios to Average Net Assets
E,H
|
|
|
|
|
|
|
Expenses before reductions
|
1.12%
A
|
1.10%
|
1.19%
|
1.17%
|
1.18%
|
1.19%
|
|
Expenses net of fee waivers, if any
|
1.12%
A
|
1.10%
|
1.19%
|
1.17%
|
1.18%
|
1.19%
|
|
Expenses net of all reductions
|
1.12%
A
|
1.09%
|
1.12%
|
1.11%
|
1.14%
|
1.17%
|
|
Net investment income (loss)
|
1.31%
A
|
1.81%
|
2.34%
|
3.92%
G
|
2.27%
|
2.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 7,783
|
$ 9,905
|
$ 1,947
|
$ 1,785
|
$ 1,425
|
$ 1,600
|
|
Portfolio turnover rate
F
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Calculated based on average shares outstanding
during the period.
E
Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F
Amount does not
include the portfolio activity of any underlying Fidelity Central Funds.
G
Investment income per share reflects a large, non-recurring dividend which amounted to $.19 per share. Excluding this non-recurring dividend, the ratio of net investment income
(loss) to average net assets would have been 1.90%.
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 $.01 per share.
J
Total
distributions of $.37 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.178 per share.
K
Total distributions of $.65 per share is comprised of distributions from net investment
income of $.354 and distributions from net realized gain of $.294 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes
to
Financial Statements
For the period ended January 31, 2014 (Unaudited)
1. Organization.
Fidelity® International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Select Portfolios (the Trust) and is authorized to issue an
unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, International Real Estate
and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed
to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters
that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of
purchase.
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
Semiannual Report
3. Significant Accounting Policies - continued
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 SelectCo, LLC (SelectCo) 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 January 31, 2014, including information on transfers between Levels 1 and 2 is included at the end of the Fund's
Schedule of Investments.
Foreign Currency.
The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses
from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts'
terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end.
Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into
U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities.
Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income.
For financial reporting purposes, the Fund's investment holdings and NAV include trades executed
through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of
business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend
date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is
informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities
received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and
amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery
of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
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, certain foreign taxes, passive foreign investment companies (PFIC),
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 were as follows:
|
Gross unrealized appreciation
|
$ 33,994,542
|
|
Gross unrealized depreciation
|
(34,132,163
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ (137,621
)
|
|
|
|
|
Tax cost
|
$ 365,498,829
|
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
|
$ (153,317,175)
|
|
2018
|
(136,599,532
)
|
|
Total with expiration
|
(289,916,707
)
|
|
No expiration
|
|
|
Long-term
|
(4,708,668
)
|
|
Total capital loss carryforward
|
$ (294,625,375
)
|
Short-Term Trading (Redemption) Fees.
Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal
to 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $85,806,930 and $132,958,233, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee.
Effective August 1, 2013, SelectCo replaced Fidelity Management and Research Company (FMR), an affiliate of SelectCo, as
investment adviser to the Fund. The investment adviser and its affiliates provide the Fund with investment
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 FMR and 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.
Distribution and Service Plan Fees.
In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service
Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total
fees and amounts retained by FDC were as follows:
|
|
Distribution
Fee
|
Service
Fee
|
Total Fees
|
Retained
by FDC
|
|
Class A
|
-%
|
.25%
|
$ 15,280
|
$ 199
|
|
Class T
|
.25%
|
.25%
|
12,406
|
-
|
|
Class B
|
.75%
|
.25%
|
2,328
|
1,746
|
|
Class C
|
.75%
|
.25%
|
33,107
|
9,130
|
|
|
|
|
$ 63,121
|
$ 11,075
|
Sales Load.
FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which
is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales
charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00%
for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained
by FDC
|
|
Class A
|
$ 4,056
|
|
Class T
|
1,157
|
|
Class B
*
|
50
|
|
Class C
*
|
567
|
|
|
$ 5,830
|
*
When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees.
Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer,
dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and
mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount
|
% of
Average
Net Assets
*
|
|
Class A
|
$ 18,442
|
.30
|
|
Class T
|
8,004
|
.32
|
|
Class B
|
701
|
.30
|
|
Class C
|
9,977
|
.30
|
|
International Real Estate
|
533,984
|
.30
|
|
Institutional Class
|
10,676
|
.27
|
|
|
$ 581,784
|
|
*
Annualized
Accounting and Security Lending Fees.
Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's
accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the
security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
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 $174 and is reflected in Miscellaneous expenses on the
Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities 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, which prior to August 1, 2013 included 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.
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
$9,339. 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.
In addition, FMR reimbursed a portion of the fund's operating expenses during the period in the amount of $4,970.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended
January 31, 2014
|
Year ended
July 31, 2013
|
|
From net investment income
|
|
|
|
Class A
|
$ 187,179
|
$ 172,173
|
|
Class T
|
65,518
|
50,314
|
|
Class B
|
3,710
|
5,555
|
|
Class C
|
59,254
|
50,764
|
|
International Real Estate
|
6,296,740
|
6,155,855
|
|
Institutional Class
|
146,129
|
59,668
|
|
Total
|
$ 6,758,530
|
$ 6,494,329
|
|
From net realized gain
|
|
|
|
Class A
|
$ 414,911
|
$ 314,199
|
|
Class T
|
167,858
|
95,309
|
|
Class B
|
16,133
|
14,984
|
|
Class C
|
231,539
|
122,968
|
|
International Real Estate
|
11,907,162
|
9,219,722
|
|
Institutional Class
|
264,929
|
99,644
|
|
Total
|
$ 13,002,532
|
$ 9,866,826
|
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
|
Class A
|
|
|
|
|
|
Shares sold
|
287,990
|
1,371,466
|
$ 2,941,886
|
$ 13,003,119
|
|
Reinvestment of distributions
|
52,782
|
49,316
|
523,243
|
436,835
|
|
Shares redeemed
|
(495,243
)
|
(967,943
)
|
(5,038,304
)
|
(9,409,705
)
|
|
Net increase (decrease)
|
(154,471
)
|
452,839
|
$ (1,573,175
)
|
$ 4,030,249
|
|
Class T
|
|
|
|
|
|
Shares sold
|
58,081
|
304,445
|
$ 587,966
|
$ 2,888,842
|
|
Reinvestment of distributions
|
21,965
|
15,671
|
216,331
|
136,967
|
|
Shares redeemed
|
(75,242
)
|
(122,863
)
|
(762,764
)
|
(1,150,164
)
|
|
Net increase (decrease)
|
4,804
|
197,253
|
$ 41,533
|
$ 1,875,645
|
Semiannual Report
10. Share Transactions - continued
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
|
Class B
|
|
|
|
|
|
Shares sold
|
2,523
|
13,231
|
$ 25,177
|
$ 124,395
|
|
Reinvestment of distributions
|
1,850
|
2,066
|
18,114
|
17,871
|
|
Shares redeemed
|
(4,050
)
|
(25,020
)
|
(40,230
)
|
(238,871
)
|
|
Net increase (decrease)
|
323
|
(9,723
)
|
$ 3,061
|
$ (96,605
)
|
|
Class C
|
|
|
|
|
|
Shares sold
|
151,723
|
484,045
|
$ 1,508,510
|
$ 4,575,568
|
|
Reinvestment of distributions
|
27,197
|
17,498
|
264,712
|
151,342
|
|
Shares redeemed
|
(204,156
)
|
(192,159
)
|
(2,042,772
)
|
(1,818,767
)
|
|
Net increase (decrease)
|
(25,236
)
|
309,384
|
$ (269,550
)
|
$ 2,908,143
|
|
International Real Estate
|
|
|
|
|
|
Shares sold
|
4,511,336
|
20,213,881
|
$ 46,327,382
|
$ 192,972,755
|
|
Reinvestment of distributions
|
1,734,135
|
1,655,369
|
17,353,307
|
14,646,693
|
|
Shares redeemed
|
(8,768,036
)
|
(15,686,974
)
|
(90,106,174
)
|
(154,320,297
)
|
|
Net increase (decrease)
|
(2,522,565
)
|
6,182,276
|
$ (26,425,485
)
|
$ 53,299,151
|
|
Institutional Class
|
|
|
|
|
|
Shares sold
|
220,700
|
1,045,311
|
$ 2,269,302
|
$ 10,362,559
|
|
Reinvestment of distributions
|
34,703
|
14,563
|
345,746
|
130,213
|
|
Shares redeemed
|
(439,709
)
|
(317,798
)
|
(4,494,893
)
|
(3,193,565
)
|
|
Net increase (decrease)
|
(184,306
)
|
742,076
|
$ (1,879,845
)
|
$ 7,299,207
|
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 approximately 16% of the outstanding shares of the
fund.
Semiannual Report
Change
in
Independent Registered Public Accounting Firm
Based on the recommendation of the Audit Committee of Fidelity International Real Estate Fund, the Board of Trustees has determined not to retain
PricewaterhouseCoopers LLP as the fund's independent auditor and voted to appoint Deloitte & Touche LLP for the fiscal year ended July 31, 2014.
For the fiscal years ended July 31, 2013 and July 31, 2012, PricewaterhouseCoopers LLP's audit reports contained no adverse opinion or disclaimer of
opinion; nor were their reports qualified as to uncertainty, audit scope, or accounting principles. Further, there were no disagreements between the
fund and PricewaterhouseCoopers LLP on accounting principles, financial statements disclosure or audit scope, which if not resolved to the satisfaction of PricewaterhouseCoopers LLP would have caused them to make reference to the disagreement in their report.
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisers
FIL Investment Advisers (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
The Bank of New York Mellon
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
IRE-USAN-0314
1.801329.110
Fidelity
®
Real Estate Investment
Portfolio
Semiannual Report
January 31, 2014
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example
|
(Click
Here)
|
An example of shareholder expenses.
|
|
Investment Changes
|
(Click
Here)
|
A summary of major shifts in the fund's investments over the past
six months.
|
|
Investments
|
(Click
Here)
|
A complete list of the fund's investments with their market values.
|
|
Financial Statements
|
(Click
Here)
|
Statements of assets and liabilities, operations, and changes in net
assets, as well as financial highlights.
|
|
Notes
|
(Click
Here)
|
Notes to the financial statements.
|
|
Change in Independent Registered Public
Accounting Firm
|
(Click
Here)
|
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or
visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting
guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors
Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 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
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2013 to January 31,
2014).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this
line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for
example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that
is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate
of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder
in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central
Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's
actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information
to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply
for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the
period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central
Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are
not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the
second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized
Expense Ratio
B
|
Beginning
Account Value
August 1, 2013
|
Ending
Account Value
January 31, 2014
|
Expenses Paid
During Period
*
August 1, 2013 to
January 31, 2014
|
|
Actual
|
.81%
|
$ 1,000.00
|
$ 986.50
|
$ 4.06
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,021.12
|
$ 4.13
|
A
5% return per year before expenses
B
Annualized expense ratio reflects expenses net of applicable fee waivers.
*
Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
Simon Property Group, Inc.
|
13.4
|
12.6
|
|
Public Storage
|
7.3
|
8.4
|
|
Ventas, Inc.
|
6.8
|
6.6
|
|
Prologis, Inc.
|
6.1
|
5.2
|
|
Host Hotels & Resorts, Inc.
|
5.2
|
5.3
|
|
Equity Residential (SBI)
|
4.7
|
4.6
|
|
HCP, Inc.
|
4.4
|
4.7
|
|
Boston Properties, Inc.
|
4.2
|
2.7
|
|
SL Green Realty Corp.
|
3.3
|
3.2
|
|
AvalonBay Communities, Inc.
|
3.0
|
3.9
|
|
|
58.4
|
|
|
Top Five REIT Sectors as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
REITs - Industrial Buildings
|
19.4
|
18.8
|
|
REITs - Malls
|
17.5
|
18.4
|
|
REITs - Apartments
|
15.5
|
17.1
|
|
REITs - Office Buildings
|
14.0
|
11.2
|
|
REITs - Health Care Facilities
|
11.2
|
11.3
|
|
Asset Allocation (% of fund's net assets)
|
|
As of January 31, 2014
|
As of July 31, 2013
|
|
Stocks 99.1%
|
|
|
Stocks 98.8%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 0.9%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 1.2%
|
|
Semiannual Report
Investments January 31, 2014 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 99.1%
|
|
|
Shares
|
|
Value (000s)
|
|
REAL ESTATE INVESTMENT TRUSTS - 98.0%
|
|
REITs - Apartments - 15.5%
|
|
Apartment Investment & Management Co. Class A
|
2,113,674
|
|
$ 59,119
|
|
AvalonBay Communities, Inc.
|
850,000
|
|
104,975
|
|
Camden Property Trust (SBI)
|
1,003,100
|
|
62,012
|
|
Equity Residential (SBI)
|
2,894,800
|
|
160,314
|
|
Essex Property Trust, Inc.
|
65,000
|
|
10,294
|
|
Home Properties, Inc.
|
408,500
|
|
22,774
|
|
Post Properties, Inc.
|
856,300
|
|
40,186
|
|
UDR, Inc.
|
2,972,341
|
|
72,347
|
|
TOTAL REITS - APARTMENTS
|
|
532,021
|
|
REITs - Factory Outlets - 1.9%
|
|
Tanger Factory Outlet Centers, Inc.
|
1,922,300
|
|
64,166
|
|
REITs - Health Care Facilities - 11.2%
|
|
HCP, Inc.
|
3,806,600
|
|
149,028
|
|
Ventas, Inc.
|
3,741,454
|
|
233,429
|
|
TOTAL REITS - HEALTH CARE FACILITIES
|
|
382,457
|
|
REITs - Hotels - 6.2%
|
|
Host Hotels & Resorts, Inc.
|
9,806,905
|
|
180,349
|
|
Sunstone Hotel Investors, Inc.
|
2,612,500
|
|
33,518
|
|
TOTAL REITS - HOTELS
|
|
213,867
|
|
REITs - Industrial Buildings - 19.4%
|
|
Chambers Street Properties (d)
|
1,286,566
|
|
9,958
|
|
DCT Industrial Trust, Inc.
|
3,301,300
|
|
23,769
|
|
Duke Realty LP
|
4,756,800
|
|
74,729
|
|
DuPont Fabros Technology, Inc. (d)
|
1,328,000
|
|
34,515
|
|
Extra Space Storage, Inc.
|
1,117,700
|
|
51,034
|
|
First Industrial Realty Trust, Inc.
|
345,100
|
|
5,922
|
|
Prologis, Inc.
|
5,400,200
|
|
209,312
|
|
Public Storage
|
1,586,000
|
|
249,938
|
|
Terreno Realty Corp.
|
248,100
|
|
4,285
|
|
TOTAL REITS - INDUSTRIAL BUILDINGS
|
|
663,462
|
|
REITs - Malls - 17.5%
|
|
CBL & Associates Properties, Inc.
|
161,850
|
|
2,750
|
|
General Growth Properties, Inc.
|
2,968,900
|
|
59,794
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
REAL ESTATE INVESTMENT TRUSTS - CONTINUED
|
|
REITs - Malls - continued
|
|
Simon Property Group, Inc.
|
2,973,272
|
|
$ 460,382
|
|
The Macerich Co.
|
1,379,800
|
|
78,097
|
|
TOTAL REITS - MALLS
|
|
601,023
|
|
REITs - Management/Investment - 2.9%
|
|
Digital Realty Trust, Inc. (d)
|
1,339,300
|
|
68,291
|
|
Equity Lifestyle Properties, Inc.
|
714,100
|
|
28,071
|
|
WP Carey, Inc.
|
34,600
|
|
2,044
|
|
TOTAL REITS - MANAGEMENT/INVESTMENT
|
|
98,406
|
|
REITs - Mobile Home Parks - 0.9%
|
|
Sun Communities, Inc.
|
700,300
|
|
32,739
|
|
REITs - Office Buildings - 14.0%
|
|
Alexandria Real Estate Equities, Inc.
|
112,134
|
|
7,864
|
|
BioMed Realty Trust, Inc. (d)
|
2,142,500
|
|
41,800
|
|
Boston Properties, Inc.
|
1,322,500
|
|
142,949
|
|
Brandywine Realty Trust (SBI)
|
2,585,100
|
|
36,838
|
|
Cousins Properties, Inc.
|
1,660,000
|
|
17,845
|
|
Douglas Emmett, Inc.
|
1,559,200
|
|
39,650
|
|
Highwoods Properties, Inc. (SBI)
|
1,076,123
|
|
39,967
|
|
Hudson Pacific Properties, Inc.
|
290,000
|
|
6,302
|
|
Mack-Cali Realty Corp.
|
140,000
|
|
2,832
|
|
Piedmont Office Realty Trust, Inc. Class A (d)
|
1,865,000
|
|
31,090
|
|
SL Green Realty Corp.
|
1,198,446
|
|
112,378
|
|
TOTAL REITS - OFFICE BUILDINGS
|
|
479,515
|
|
REITs - Shopping Centers - 8.5%
|
|
Acadia Realty Trust (SBI)
|
578,900
|
|
14,733
|
|
Cedar Shopping Centers, Inc.
|
988,405
|
|
6,237
|
|
DDR Corp.
|
6,259,867
|
|
98,092
|
|
Excel Trust, Inc.
|
515,200
|
|
5,878
|
|
Glimcher Realty Trust
|
1,879,279
|
|
16,087
|
|
Kimco Realty Corp.
|
3,872,200
|
|
80,968
|
|
Kite Realty Group Trust
|
720,000
|
|
4,644
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
REAL ESTATE INVESTMENT TRUSTS - CONTINUED
|
|
REITs - Shopping Centers - continued
|
|
Ramco-Gershenson Properties Trust (SBI)
|
857,124
|
|
$ 13,688
|
|
Vornado Realty Trust
|
576,071
|
|
52,901
|
|
TOTAL REITS - SHOPPING CENTERS
|
|
293,228
|
|
TOTAL REAL ESTATE INVESTMENT TRUSTS
|
|
3,360,884
|
|
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.1%
|
|
Real Estate Operating Companies - 1.1%
|
|
Forest City Enterprises, Inc. Class A (a)
|
2,078,400
|
|
37,806
|
|
TOTAL COMMON STOCKS
(Cost $2,915,672)
|
3,398,690
|
|
Money Market Funds - 3.9%
|
|
|
|
|
|
|
Fidelity Cash Central Fund, 0.10% (b)
|
52,119,955
|
|
52,120
|
|
Fidelity Securities Lending Cash Central Fund, 0.09% (b)(c)
|
80,225,175
|
|
80,225
|
|
TOTAL MONEY MARKET FUNDS
(Cost $132,345)
|
132,345
|
|
TOTAL INVESTMENT PORTFOLIO - 103.0%
(Cost $3,048,017)
|
|
3,531,035
|
|
NET OTHER ASSETS (LIABILITIES) - (3.0)%
|
|
(103,595
)
|
|
NET ASSETS - 100%
|
$ 3,427,440
|
|
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
(Amounts in thousands)
|
|
Fidelity Cash Central Fund
|
$ 13
|
|
Fidelity Securities Lending Cash Central Fund
|
142
|
|
Total
|
$ 155
|
|
Other Information
|
|
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the
risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying
Notes to Financial Statements.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
|
Amounts in thousands (except per-share amount)
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
Investment in securities, at value (including securities loaned of $79,802) - See accompanying
schedule:
Unaffiliated issuers (cost $2,915,672)
|
$ 3,398,690
|
|
|
Fidelity Central Funds (cost $132,345)
|
132,345
|
|
|
Total Investments (cost $3,048,017)
|
|
$ 3,531,035
|
|
Receivable for investments sold
|
|
15,427
|
|
Receivable for fund shares sold
|
|
3,216
|
|
Dividends receivable
|
|
768
|
|
Distributions receivable from Fidelity Central Funds
|
|
33
|
|
Prepaid expenses
|
|
26
|
|
Other receivables
|
|
41
|
|
Total assets
|
|
3,550,546
|
|
|
|
|
|
Liabilities
|
|
|
|
Payable for investments purchased
|
$ 35,500
|
|
|
Payable for fund shares redeemed
|
5,061
|
|
|
Accrued management fee
|
1,558
|
|
|
Other affiliated payables
|
697
|
|
|
Other payables and accrued expenses
|
65
|
|
|
Collateral on securities loaned, at value
|
80,225
|
|
|
Total liabilities
|
|
123,106
|
|
|
|
|
|
Net Assets
|
|
$ 3,427,440
|
|
Net Assets consist of:
|
|
|
|
Paid in capital
|
|
$ 3,059,396
|
|
Distributions in excess of net investment income
|
|
(1,431)
|
|
Accumulated undistributed net realized gain (loss) on investments
|
|
(113,543)
|
|
Net unrealized appreciation (depreciation) on investments
|
|
483,018
|
|
Net Assets
, for 103,722 shares outstanding
|
|
$ 3,427,440
|
|
Net Asset Value
, offering price and redemption price per share ($3,427,440 ÷ 103,722
shares)
|
|
$ 33.04
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
|
Amounts in thousands Six months ended January 31, 2014 (Unaudited)
|
|
|
|
|
|
Investment Income
|
|
|
|
Dividends
|
|
$ 47,696
|
|
Income from Fidelity Central Funds
|
|
155
|
|
Total income
|
|
47,851
|
|
|
|
|
|
Expenses
|
|
|
|
Management fee
|
$ 9,852
|
|
|
Transfer agent fees
|
3,878
|
|
|
Accounting and security lending fees
|
517
|
|
|
Custodian fees and expenses
|
21
|
|
|
Independent trustees' compensation
|
50
|
|
|
Registration fees
|
42
|
|
|
Audit
|
44
|
|
|
Legal
|
71
|
|
|
Miscellaneous
|
26
|
|
|
Total expenses before reductions
|
14,501
|
|
|
Expense reductions
|
(51
)
|
14,450
|
|
Net investment income (loss)
|
|
33,401
|
|
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
|
|
|
|
Investment securities:
|
|
|
|
Unaffiliated issuers
|
|
23,002
|
|
Change in net unrealized appreciation (depreciation) on investment securities
|
|
(120,268
)
|
|
Net gain (loss)
|
|
(97,266
)
|
|
Net
increase (decrease) in net assets resulting from operations
|
|
$ (63,865
)
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
Amounts in thousands
|
Six months ended January 31,
2014 (Unaudited)
|
Year ended
July 31,
2013
|
|
Increase (Decrease) in Net Assets
|
|
|
|
Operations
|
|
|
|
Net investment income (loss)
|
$ 33,401
|
$ 66,125
|
|
Net realized gain (loss)
|
23,002
|
276,627
|
|
Change in net unrealized appreciation (depreciation)
|
(120,268
)
|
(79,499
)
|
|
Net
increase (decrease) in net assets resulting
from operations
|
(63,865
)
|
263,253
|
|
Distributions to shareholders from net investment income
|
(52,568)
|
(55,072)
|
|
Distributions to shareholders from net realized gain
|
(2,117
)
|
-
|
|
Total distributions
|
(54,685
)
|
(55,072
)
|
|
Share transactions
Proceeds from sales of shares
|
248,067
|
1,054,022
|
|
Reinvestment of distributions
|
49,821
|
50,542
|
|
Cost of shares redeemed
|
(711,786
)
|
(1,043,585
)
|
|
Net increase (decrease) in net assets resulting from share transactions
|
(413,898
)
|
60,979
|
|
Redemption fees
|
198
|
555
|
|
Total increase (decrease) in net assets
|
(532,250)
|
269,715
|
|
|
|
|
|
Net Assets
|
|
|
|
Beginning of period
|
3,959,690
|
3,689,975
|
|
End of period (including distributions in excess of net investment income of $1,431 and
undistributed net investment income of $17,736, respectively)
|
$ 3,427,440
|
$ 3,959,690
|
|
Ot
her Information
Shares
|
|
|
|
Sold
|
7,586
|
31,385
|
|
Issued in reinvestment of distributions
|
1,585
|
1,546
|
|
Redeemed
|
(21,813
)
|
(31,251
)
|
|
Net increase (decrease)
|
(12,642
)
|
1,680
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 34.03
|
$ 32.18
|
$ 28.76
|
$ 23.32
|
$ 14.61
|
$ 26.12
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.31
|
.56
|
.36
|
.24
|
.38
|
.46
|
|
Net realized and unrealized gain (loss)
|
(.80
)
|
1.76
|
3.41
|
5.47
|
8.74
|
(11.33
)
|
|
Total from investment operations
|
(.49
)
|
2.32
|
3.77
|
5.71
|
9.12
|
(10.87
)
|
|
Distributions from net investment income
|
(.48)
|
(.47)
|
(.35)
|
(.27)
|
(.42)
|
(.55)
|
|
Distributions from net realized gain
|
(.02
)
|
-
|
-
|
-
|
-
|
(.10
)
|
|
Total distributions
|
(.50
)
|
(.47
)
|
(.35
)
|
(.27
)
|
(.42
)
|
(.65
)
|
|
Redemption fees added to paid in capital
D
|
-
H
|
-
H
|
-
H
|
-
H
|
.01
|
.01
|
|
Net asset value, end of period
|
$ 33.04
|
$ 34.03
|
$ 32.18
|
$ 28.76
|
$ 23.32
|
$ 14.61
|
|
Total Return
B,C
|
(1.35)%
|
7.28%
|
13.31%
|
24.67%
|
63.10%
|
(41.77)%
|
|
Ratios to Average Net Assets
E,G
|
|
|
|
|
|
|
Expenses before reductions
|
.81%
A
|
.81%
|
.84%
|
.85%
|
.90%
|
.92%
|
|
Expenses net of fee waivers, if any
|
.81%
A
|
.81%
|
.84%
|
.85%
|
.90%
|
.92%
|
|
Expenses net of all reductions
|
.81%
A
|
.80%
|
.84%
|
.85%
|
.90%
|
.92%
|
|
Net investment income (loss)
|
1.87%
A
|
1.69%
|
1.28%
|
.90%
|
1.86%
|
2.89%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 3,427
|
$ 3,960
|
$ 3,690
|
$ 3,542
|
$ 3,067
|
$ 1,977
|
|
Portfolio turnover rate
F
|
12%
A
|
26%
|
26%
|
25%
|
46%
|
74%
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Calculated based on average shares outstanding during the period.
E
Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G
Expense ratios reflect operating expenses of the
Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage
service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H
Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes
to
Financial Statements
For the period ended January 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1.
Organization.
Fidelity® Real Estate Investment Portfolio (the Fund) is a non-diversified fund of Fidelity Select Portfolios (the Trust) and is authorized to issue
an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and
accounts managed by 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 SelectCo, LLC
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
(SelectCo) 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.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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. 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. 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 and distributions from the Fidelity Central Funds are
accrued as earned.
Expenses.
Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the
respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate
and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders.
Each year, the Fund intends to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The
Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are
filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income
tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets
or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation
|
$ 658,399
|
|
Gross unrealized depreciation
|
(258,729
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ 399,670
|
|
|
|
|
Tax cost
|
$ 3,131,365
|
Short-Term Trading (Redemption) Fees.
Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal
to .75% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $220,499 and $620,502, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee.
Effective August 1, 2013, SelectCo replaced Fidelity Management & Research Company (FMR), an affiliate of SelectCo, as
investment adviser to the Fund. 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 FMR and 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.
Transfer Agent Fees.
Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's
transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .22% of average net assets.
Accounting and Security Lending Fees.
Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's
accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the
security lending program. The security lending fee is based on the number and duration of lending transactions.
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 $13 for the period.
Interfund Lending Program.
Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies
having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there
were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
|
Borrower or Lender
|
Average Loan
Balance
|
Weighted Average Interest Rate
|
Interest
Expense
|
|
Borrower
|
$ 10,931
|
.31%
|
$ -*
|
*
Amount represents ninety four dollars.
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 $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
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, which prior to August 1, 2013 included 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.
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 $142.
During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount to
the Fund in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $31 for the period.
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 twenty four dollars.
In addition, FMR reimbursed a portion of the Fund's operating expense during the period in the amount of $20.
Semiannual Report
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in
connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide
general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that
may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Change
in
Independent Registered Public Accounting Firm
Based on the recommendation of the Audit Committee of Fidelity Real Estate Investment Portfolio, the Board of Trustees has determined not to
retain PricewaterhouseCoopers LLP as the fund's independent auditor and voted to appoint Deloitte & Touche LLP for the fiscal year ended July 31,
2014. For the fiscal years ended July 31, 2013 and July 31, 2012, PricewaterhouseCoopers LLP's audit reports contained no adverse opinion or disclaimer of opinion; nor were their reports qualified as to uncertainty, audit scope, or accounting principles. Further, there were no disagreements
between the fund and PricewaterhouseCoopers LLP on accounting principles, financial statements disclosure or audit scope, which if not resolved to
the satisfaction of PricewaterhouseCoopers LLP would have caused them to make reference to the disagreement in their report.
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) 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
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
REA-USAN-0314
1.789292.110
(Fidelity Investment logo)(registered trademark)
Fidelity
Advisor
®
International Real Estate
Fund - Class A, Class T,
Class B, and Class C
Semiannual Report
January 31, 2014
(Fidelity Cover Art)
Class A, Class T, Class B,
and Class C are classes
of Fidelity® International
Real Estate Fund
Contents
|
Shareholder Expense Example
|
(Click
Here)
|
An example of shareholder expenses.
|
|
Investment Changes
|
(Click
Here)
|
A summary of major shifts in the fund's investments over the past six
months.
|
|
Investments
|
(Click
Here)
|
A complete list of the fund's investments with their market values.
|
|
Financial Statements
|
(Click
Here)
|
Statements of assets and liabilities, operations, and changes in net
assets, as well as financial highlights.
|
|
Notes
|
(Click
Here)
|
Notes to financial statements.
|
|
Change in Independent Registered Public
Accounting Firm
|
(Click
Here)
|
|
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.
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
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption
proceeds, 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 (August 1, 2013 to January 31,
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. A small
balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included
in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses
incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate
the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical
expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You
may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged
once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the
underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds.
These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the
second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized
Expense Ratio
B
|
Beginning
Account Value
August 1, 2013
|
Ending
Account Value
January 31, 2014
|
Expenses Paid
During Period
*
August 1, 2013
to January 31, 2014
|
|
Class A
|
1.41%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,020.30
|
$ 7.18
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,018.10
|
$ 7.17
|
|
Class T
|
1.68%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,019.40
|
$ 8.55
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,016.74
|
$ 8.54
|
|
Class B
|
2.16%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,017.90
|
$ 10.99
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,014.32
|
$ 10.97
|
|
Class C
|
2.16%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,016.80
|
$ 10.98
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,014.32
|
$ 10.97
|
|
International Real Estate
|
1.15%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,021.80
|
$ 5.86
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,019.41
|
$ 5.85
|
|
Institutional Class
|
1.12%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,021.70
|
$ 5.71
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,019.56
|
$ 5.70
|
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
184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
Mitsui Fudosan Co. Ltd.
|
8.1
|
8.3
|
|
Westfield Group unit
|
5.4
|
6.2
|
|
Sumitomo Realty & Development Co. Ltd.
|
5.4
|
4.8
|
|
Sun Hung Kai Properties Ltd.
|
5.2
|
6.8
|
|
Hongkong Land Holdings Ltd.
|
3.6
|
2.9
|
|
Advance Residence Investment Corp.
|
3.5
|
3.0
|
|
Fukuoka (REIT) Investment Fund
|
3.1
|
2.7
|
|
Global Logistic Properties Ltd.
|
2.8
|
1.8
|
|
Parkway Life REIT
|
2.6
|
2.6
|
|
Helical Bar PLC
|
2.6
|
2.8
|
|
|
42.3
|
|
|
Top Five Countries as of January 31, 2014
|
|
(excluding cash equivalents)
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
Japan
|
26.2
|
26.5
|
|
United Kingdom
|
13.7
|
13.1
|
|
Australia
|
12.5
|
12.9
|
|
Singapore
|
8.5
|
9.7
|
|
Hong Kong
|
8.4
|
10.6
|
|
Percentages are adjusted for the effect of open futures contracts, if applicable.
|
|
Top Five REIT Sectors as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
REITs - Management/Investment
|
14.9
|
17.7
|
|
REITs - Industrial Buildings
|
4.4
|
4.1
|
|
REITs - Office Buildings
|
3.6
|
3.3
|
|
REITs - Health Care Facilities
|
2.6
|
2.6
|
|
REITs - Shopping Centers
|
2.3
|
2.0
|
|
Asset Allocation (% of fund's net assets)
|
|
As of January 31, 2014
*
|
As of July 31, 2013
**
|
|
|
Stocks 95.4%
|
|
|
Stocks 95.8%
|
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 4.6%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 4.2%
|
|
|
*
Foreign investments
|
95.4%
|
|
**
Foreign investments
|
95.8%
|
|
Semiannual Report
Investments January 31, 2014 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 95.4%
|
|
|
Shares
|
|
Value
|
|
Australia - 12.5%
|
|
Abacus Property Group unit
|
2,757,194
|
|
$ 5,391,772
|
|
Ardent Leisure Group unit
|
800,000
|
|
1,375,311
|
|
Charter Hall Group unit
|
859,414
|
|
2,787,647
|
|
GDI Property Group unit (a)
|
1,209,100
|
|
940,902
|
|
Goodman Group unit
|
1,361,366
|
|
5,562,610
|
|
Hotel Property Investments unit (a)
|
626,295
|
|
1,093,880
|
|
Mirvac Group unit
|
3,858,185
|
|
5,638,138
|
|
National Storage (REIT) unit (a)
|
2,094,255
|
|
2,009,981
|
|
Ramsay Health Care Ltd.
|
18,164
|
|
697,444
|
|
Westfield Group unit
|
2,205,525
|
|
19,721,012
|
|
TOTAL AUSTRALIA
|
|
45,218,697
|
|
Bailiwick of Jersey - 1.5%
|
|
Atrium European Real Estate Ltd.
|
965,724
|
|
5,426,098
|
|
Belgium - 1.4%
|
|
Warehouses de Pauw
|
70,735
|
|
5,046,676
|
|
Bermuda - 6.3%
|
|
Great Eagle Holdings Ltd.
|
2,223,088
|
|
7,287,358
|
|
Hongkong Land Holdings Ltd.
|
2,140,000
|
|
12,881,623
|
|
Tai Cheung Holdings Ltd.
|
3,639,000
|
|
2,591,987
|
|
TOTAL BERMUDA
|
|
22,760,968
|
|
Brazil - 0.4%
|
|
BHG SA (Brazil Hospitality Group) (a)
|
174,300
|
|
913,662
|
|
BR Malls Participacoes SA
|
109,000
|
|
686,543
|
|
TOTAL BRAZIL
|
|
1,600,205
|
|
Cayman Islands - 1.3%
|
|
KWG Property Holding Ltd.
|
2,443,500
|
|
1,271,509
|
|
Langham Hospitality Investment unit
|
5,936,405
|
|
2,821,471
|
|
Phoenix Healthcare Group Ltd. (a)
|
330,500
|
|
545,739
|
|
TOTAL CAYMAN ISLANDS
|
|
4,638,719
|
|
Finland - 0.8%
|
|
Sponda Oyj
|
558,200
|
|
2,702,711
|
|
France - 3.8%
|
|
Altarea (d)
|
7,609
|
|
1,341,790
|
|
Societe de la Tour Eiffel
|
17,025
|
|
1,140,504
|
|
Societe Fonciere Lyonnaise SA
|
110,226
|
|
5,707,870
|
|
Unibail-Rodamco
|
23,207
|
|
5,593,182
|
|
TOTAL FRANCE
|
|
13,783,346
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value
|
|
Germany - 3.1%
|
|
DIC Asset AG
|
221,824
|
|
$ 1,996,388
|
|
LEG Immobilien AG
|
127,095
|
|
7,567,028
|
|
Patrizia Immobilien AG
|
165,664
|
|
1,726,899
|
|
TOTAL GERMANY
|
|
11,290,315
|
|
Greece - 0.2%
|
|
Eurobank Properties Real Estate Investment Co. (a)
|
75,400
|
|
767,774
|
|
Hong Kong - 8.4%
|
|
Hysan Development Co. Ltd.
|
887,703
|
|
3,510,199
|
|
Magnificent Estates Ltd.
|
48,625,000
|
|
2,254,695
|
|
Sino Land Ltd.
|
4,210,000
|
|
5,596,126
|
|
Sun Hung Kai Properties Ltd.
|
1,546,133
|
|
18,879,081
|
|
TOTAL HONG KONG
|
|
30,240,101
|
|
Italy - 1.1%
|
|
Beni Stabili SpA SIIQ
|
5,397,933
|
|
4,004,106
|
|
Japan - 26.2%
|
|
Advance Residence Investment Corp. (e)
|
6,007
|
|
12,682,940
|
|
AEON Mall Co. Ltd.
|
172,120
|
|
5,059,649
|
|
BLife Investment Corp.
|
918
|
|
3,824,336
|
|
Fukuoka (REIT) Investment Fund
|
1,348
|
|
11,313,017
|
|
Hulic (REIT), Inc.
|
707
|
|
747,343
|
|
Hulic Co. Ltd.
|
283,100
|
|
3,586,426
|
|
Ichigo Group Holdings Co. Ltd. (d)
|
317,600
|
|
922,706
|
|
Kenedix, Inc. (a)
|
249,900
|
|
997,874
|
|
Mitsubishi Estate Co. Ltd.
|
162,000
|
|
3,978,902
|
|
Mitsui Fudosan Co. Ltd.
|
929,500
|
|
29,353,001
|
|
Ship Healthcare Holdings, Inc.
|
45,500
|
|
1,738,243
|
|
Sumitomo Realty & Development Co. Ltd.
|
446,500
|
|
19,714,373
|
|
Tosei Corp.
|
164,700
|
|
1,127,338
|
|
TOTAL JAPAN
|
|
95,046,148
|
|
Luxembourg - 2.2%
|
|
GAGFAH SA (a)
|
470,500
|
|
6,764,445
|
|
Grand City Properties SA (a)
|
125,000
|
|
1,289,863
|
|
TOTAL LUXEMBOURG
|
|
8,054,308
|
|
Netherlands - 1.5%
|
|
Eurocommercial (Certificaten Van Aandelen) unit
|
50,000
|
|
2,056,768
|
|
VastNed Retail NV
|
69,255
|
|
3,315,850
|
|
TOTAL NETHERLANDS
|
|
5,372,618
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value
|
|
Norway - 0.2%
|
|
Olav Thon Eiendomsselskap A/S
|
5,400
|
|
$ 881,727
|
|
Singapore - 8.5%
|
|
CDL Hospitality Trusts unit
|
3,387,000
|
|
4,262,820
|
|
Global Logistic Properties Ltd.
|
4,585,358
|
|
10,036,112
|
|
Parkway Life REIT
|
5,438,000
|
|
9,635,466
|
|
UOL Group Ltd.
|
724,000
|
|
3,315,812
|
|
Wing Tai Holdings Ltd.
|
2,138,181
|
|
2,896,177
|
|
Yanlord Land Group Ltd.
|
890,000
|
|
779,356
|
|
TOTAL SINGAPORE
|
|
30,925,743
|
|
Spain - 0.2%
|
|
New Hampshire Hoteles Sociedad Anonima (a)
|
87,500
|
|
550,522
|
|
Sweden - 2.1%
|
|
Castellum AB
|
288,300
|
|
4,603,013
|
|
Hufvudstaden AB Series A
|
228,800
|
|
3,068,059
|
|
TOTAL SWEDEN
|
|
7,671,072
|
|
United Kingdom - 13.7%
|
|
Big Yellow Group PLC
|
744,600
|
|
6,340,568
|
|
Derwent London PLC
|
192,500
|
|
7,879,624
|
|
Hammerson PLC
|
584,729
|
|
5,051,295
|
|
Helical Bar PLC
|
1,638,827
|
|
9,341,680
|
|
Quintain Estates & Development PLC (a)
|
886,600
|
|
1,450,194
|
|
Safestore Holdings PLC
|
2,889,700
|
|
9,120,725
|
|
Segro PLC
|
852,608
|
|
4,724,801
|
|
St. Modwen Properties PLC
|
262,625
|
|
1,658,272
|
|
Unite Group PLC
|
600,500
|
|
4,045,390
|
|
TOTAL UNITED KINGDOM
|
|
49,612,549
|
|
TOTAL COMMON STOCKS
(Cost $343,340,000)
|
345,594,403
|
|
Money Market Funds - 5.5%
|
|
|
Shares
|
|
Value
|
|
Fidelity Cash Central Fund, 0.10% (b)
|
19,101,206
|
|
$ 19,101,206
|
|
Fidelity Securities Lending Cash Central Fund, 0.09% (b)(c)
|
665,599
|
|
665,599
|
|
TOTAL MONEY MARKET FUNDS
(Cost $19,766,805)
|
19,766,805
|
|
TOTAL INVESTMENT PORTFOLIO - 100.9%
(Cost $363,106,805)
|
|
365,361,208
|
|
NET OTHER ASSETS (LIABILITIES) - (0.9)%
|
|
(3,142,998
)
|
|
NET ASSETS - 100%
|
$ 362,218,210
|
|
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 or a portion of the security purchased on a delayed delivery or when-issued basis.
|
|
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
|
$ 9,077
|
|
Fidelity Securities Lending Cash Central Fund
|
9,339
|
|
Total
|
$ 18,416
|
|
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 January 31, 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
|
$ 7,915,661
|
$ 6,540,350
|
$ 1,375,311
|
$ -
|
|
Financials
|
334,697,316
|
154,436,103
|
180,261,213
|
-
|
|
Health Care
|
2,981,426
|
545,739
|
2,435,687
|
-
|
|
Money Market Funds
|
19,766,805
|
19,766,805
|
-
|
-
|
|
Total Investments in Securities:
|
$ 365,361,208
|
$ 181,288,997
|
$ 184,072,211
|
$ -
|
|
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 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
|
$ 196,420,385
|
|
Level 2 to Level 1
|
$ 0
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
|
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
Investment in securities, at value (including securities loaned of $630,007) - See
accompanying schedule:
Unaffiliated issuers (cost $343,340,000)
|
$ 345,594,403
|
|
|
Fidelity Central Funds (cost $19,766,805)
|
19,766,805
|
|
|
Total Investments (cost $363,106,805)
|
|
$ 365,361,208
|
|
Receivable for investments sold
|
|
8,097,199
|
|
Receivable for fund shares sold
|
|
336,846
|
|
Dividends receivable
|
|
973,643
|
|
Distributions receivable from Fidelity Central Funds
|
|
4,218
|
|
Prepaid expenses
|
|
2,679
|
|
Other receivables
|
|
5,948
|
|
Total assets
|
|
374,781,741
|
|
|
|
|
|
Liabilities
|
|
|
|
Payable for investments purchased
Regular delivery
|
$ 10,390,647
|
|
|
Delayed delivery
|
187,919
|
|
|
Payable for fund shares redeemed
|
903,637
|
|
|
Accrued management fee
|
218,528
|
|
|
Distribution and service plan fees payable
|
10,486
|
|
|
Other affiliated payables
|
109,561
|
|
|
Other payables and accrued expenses
|
77,154
|
|
|
Collateral on securities loaned, at value
|
665,599
|
|
|
Total liabilities
|
|
12,563,531
|
|
|
|
|
|
Net Assets
|
|
$ 362,218,210
|
|
Net Assets consist of:
|
|
|
|
Paid in capital
|
|
$ 650,904,243
|
|
Undistributed net investment income
|
|
26,908
|
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency
transactions
|
|
(290,954,400)
|
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign
currencies
|
|
2,241,459
|
|
Net Assets
|
|
$ 362,218,210
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
|
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Calculation of Maximum Offering Price
Class A:
Net Asset Value
and redemption price per share ($11,274,337 ÷ 1,149,112 shares)
|
|
$ 9.81
|
|
|
|
|
|
Maximum offering price per share (100/94.25 of $9.81)
|
|
$ 10.41
|
|
Class T
:
Net Asset Value
and redemption price per share ($4,981,909 ÷ 511,098 shares)
|
|
$ 9.75
|
|
|
|
|
|
Maximum offering price per share (100/96.50 of $9.75)
|
|
$ 10.10
|
|
Class B
:
Net Asset Value
and offering price per share ($447,001 ÷ 46,142 shares)
A
|
|
$ 9.69
|
|
|
|
|
|
Class C
:
Net Asset Value
and offering price per share ($6,443,869 ÷ 669,656 shares)
A
|
|
$ 9.62
|
|
|
|
|
|
International Real Estate
:
Net Asset Value
, offering price and redemption price per share ($331,288,389 ÷ 33,463,126
shares)
|
|
$ 9.90
|
|
|
|
|
|
Institutional Class
:
Net Asset Value
, offering price and redemption price per share ($7,782,705 ÷ 789,016 shares)
|
|
$ 9.86
|
A
Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
|
Six months ended January 31, 2014 (Unaudited)
|
|
|
|
|
|
Investment Income
|
|
|
|
Dividends
|
|
$ 4,982,713
|
|
Interest
|
|
43
|
|
Income from Fidelity Central Funds
|
|
18,416
|
|
Income before foreign taxes withheld
|
|
5,001,172
|
|
Less foreign taxes withheld
|
|
(269,298
)
|
|
Total income
|
|
4,731,874
|
|
|
|
|
|
Expenses
|
|
|
|
Management fee
|
$ 1,364,564
|
|
|
Transfer agent fees
|
581,784
|
|
|
Distribution and service plan fees
|
63,121
|
|
|
Accounting and security lending fees
|
100,787
|
|
|
Custodian fees and expenses
|
83,329
|
|
|
Independent trustees' compensation
|
5,383
|
|
|
Registration fees
|
46,250
|
|
|
Audit
|
48,658
|
|
|
Legal
|
7,505
|
|
|
Miscellaneous
|
11,364
|
|
|
Total expenses before reductions
|
2,312,745
|
|
|
Expense reductions
|
(4,974
)
|
2,307,771
|
|
Net investment income (loss)
|
|
2,424,103
|
|
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
|
|
|
|
Investment securities:
|
|
|
|
Unaffiliated issuers
|
14,851,186
|
|
|
Foreign currency transactions
|
29,795
|
|
|
Total net realized gain (loss)
|
|
14,880,981
|
|
Change in net unrealized appreciation (depreciation) on:
Investment securities
|
(8,034,687)
|
|
|
Assets and liabilities in foreign currencies
|
(7,295
)
|
|
|
Total change in net unrealized appreciation (depreciation)
|
|
(8,041,982
)
|
|
Net gain (loss)
|
|
6,838,999
|
|
Net
increase (decrease) in net assets resulting from operations
|
|
$ 9,263,102
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
|
|
Six months ended January 31,
2014 (Unaudited)
|
Year ended
July 31,
2013
|
|
Increase (Decrease) in Net Assets
|
|
|
|
Operations
|
|
|
|
Net investment income (loss)
|
$ 2,424,103
|
$ 6,546,739
|
|
Net realized gain (loss)
|
14,880,981
|
38,615,487
|
|
Change in net unrealized appreciation (depreciation)
|
(8,041,982
)
|
37,591,213
|
|
Net
increase (decrease) in net assets resulting
from operations
|
9,263,102
|
82,753,439
|
|
Distributions to shareholders from net investment income
|
(6,758,530)
|
(6,494,329)
|
|
Distributions to shareholders from net realized gain
|
(13,002,532
)
|
(9,866,826
)
|
|
Total distributions
|
(19,761,062
)
|
(16,361,155
)
|
|
Share transactions - net increase (decrease)
|
(30,103,461
)
|
69,315,790
|
|
Redemption fees
|
64,436
|
249,182
|
|
Total increase (decrease) in net assets
|
(40,536,985)
|
135,957,256
|
|
|
|
|
|
Net Assets
|
|
|
|
Beginning of period
|
402,755,195
|
266,797,939
|
|
End of period (including undistributed net investment income of $26,908 and undistributed
net investment income of $4,361,335, respectively)
|
$ 362,218,210
|
$ 402,755,195
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.11
|
$ 8.37
|
$ 9.21
|
$ 8.46
|
$ 8.24
|
$ 10.63
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.05
|
.14
|
.16
|
.34
H
|
.17
|
.18
|
|
Net realized and unrealized gain
(loss)
|
.16
|
2.03
|
(.65
)
|
1.04
|
.24
|
(2.57
)
|
|
Total from investment operations
|
.21
|
2.17
|
(.49
)
|
1.38
|
.41
|
(2.39
)
|
|
Distributions from net investment
income
|
(.16)
|
(.17)
|
(.17)
|
(.33)
|
(.07)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.51
)
|
(.44
)
|
(.35
)
|
(.63
)
K
|
(.19
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.81
|
$ 10.11
|
$ 8.37
|
$ 9.21
|
$ 8.46
|
$ 8.24
|
|
Total Return
B,C,D
|
2.03%
|
26.94%
|
(4.88)%
|
16.76%
|
4.97%
|
(22.48)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
1.41%
A
|
1.40%
|
1.44%
|
1.42%
|
1.44%
|
1.45%
|
|
Expenses net of fee waivers, if any
|
1.41%
A
|
1.40%
|
1.44%
|
1.42%
|
1.44%
|
1.45%
|
|
Expenses net of all reductions
|
1.41%
A
|
1.39%
|
1.37%
|
1.36%
|
1.39%
|
1.42%
|
|
Net investment income (loss)
|
1.03%
A
|
1.51%
|
2.09%
|
3.67%
H
|
2.02%
|
2.55%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 11,274
|
$ 13,173
|
$ 7,117
|
$ 7,047
|
$ 7,250
|
$ 6,745
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
sales charges.
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 $.19 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.64%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by
the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net
of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the
class.
J
Amount represents less than $.01 per share.
K
Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.04
|
$ 8.32
|
$ 9.16
|
$ 8.41
|
$ 8.21
|
$ 10.62
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.04
|
.12
|
.14
|
.31
H
|
.15
|
.17
|
|
Net realized and unrealized gain
(loss)
|
.15
|
2.01
|
(.66
)
|
1.04
|
.23
|
(2.58
)
|
|
Total from investment operations
|
.19
|
2.13
|
(.52
)
|
1.35
|
.38
|
(2.41
)
|
|
Distributions from net investment
income
|
(.14)
|
(.15)
|
(.14)
|
(.31)
|
(.06)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.48
)
K
|
(.42
)
|
(.32
)
|
(.60
)
|
(.18
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.75
|
$ 10.04
|
$ 8.32
|
$ 9.16
|
$ 8.41
|
$ 8.21
|
|
Total Return
B,C,D
|
1.94%
|
26.62%
|
(5.23)%
|
16.54%
|
4.68%
|
(22.69)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
1.68%
A
|
1.68%
|
1.72%
|
1.69%
|
1.70%
|
1.71%
|
|
Expenses net of fee waivers, if any
|
1.68%
A
|
1.68%
|
1.70%
|
1.69%
|
1.70%
|
1.71%
|
|
Expenses net of all reductions
|
1.68%
A
|
1.66%
|
1.63%
|
1.63%
|
1.65%
|
1.68%
|
|
Net investment income (loss)
|
.76%
A
|
1.23%
|
1.83%
|
3.41%
H
|
1.75%
|
2.29%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 4,982
|
$ 5,081
|
$ 2,570
|
$ 2,496
|
$ 2,510
|
$ 2,080
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
sales charges.
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 $.19 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.38%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by
the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net
of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the
class.
J
Amount represents less than $.01 per share.
K
Total distributions of $.48 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $.348 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 9.94
|
$ 8.24
|
$ 9.05
|
$ 8.32
|
$ 8.14
|
$ 10.58
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.01
|
.07
|
.10
|
.26
H
|
.11
|
.13
|
|
Net realized and unrealized gain
(loss)
|
.17
|
1.99
|
(.64
)
|
1.03
|
.23
|
(2.57
)
|
|
Total from investment operations
|
.18
|
2.06
|
(.54
)
|
1.29
|
.34
|
(2.44
)
|
|
Distributions from net investment
income
|
(.08)
|
(.10)
|
(.09)
|
(.27)
|
(.04)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.43
)
|
(.37
)
|
(.27
)
|
(.56
)
|
(.16
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.69
|
$ 9.94
|
$ 8.24
|
$ 9.05
|
$ 8.32
|
$ 8.14
|
|
Total Return
B,C,D
|
1.79%
|
25.87%
|
(5.61)%
|
15.90%
|
4.20%
|
(23.06)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.19%
|
2.19%
|
|
Expenses net of fee waivers, if any
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.19%
|
2.19%
|
|
Expenses net of all reductions
|
2.16%
A
|
2.14%
|
2.12%
|
2.11%
|
2.14%
|
2.17%
|
|
Net investment income (loss)
|
.28%
A
|
.76%
|
1.34%
|
2.92%
H
|
1.26%
|
1.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 447
|
$ 456
|
$ 457
|
$ 570
|
$ 629
|
$ 606
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
contingent deferred sales charge.
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 $.18 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .90%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not
reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or
reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent
the net expenses paid by the class.
J
Amount represents less than $.01 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 9.89
|
$ 8.21
|
$ 9.03
|
$ 8.30
|
$ 8.13
|
$ 10.57
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.01
|
.07
|
.10
|
.26
H
|
.11
|
.13
|
|
Net realized and unrealized gain
(loss)
|
.16
|
1.99
|
(.64
)
|
1.04
|
.22
|
(2.57
)
|
|
Total from investment operations
|
.17
|
2.06
|
(.54
)
|
1.30
|
.33
|
(2.44
)
|
|
Distributions from net investment
income
|
(.09)
|
(.12)
|
(.10)
|
(.28)
|
(.04)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.44
)
|
(.39
)
|
(.28
)
|
(.57
)
|
(.16
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.62
|
$ 9.89
|
$ 8.21
|
$ 9.03
|
$ 8.30
|
$ 8.13
|
|
Total Return
B,C,D
|
1.68%
|
25.96%
|
(5.68)%
|
16.07%
|
4.10%
|
(23.08)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.18%
|
2.19%
|
|
Expenses net of fee waivers, if any
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.18%
|
2.19%
|
|
Expenses net of all reductions
|
2.16%
A
|
2.14%
|
2.12%
|
2.11%
|
2.14%
|
2.17%
|
|
Net investment income (loss)
|
.28%
A
|
.76%
|
1.34%
|
2.92%
H
|
1.27%
|
1.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 6,444
|
$ 6,872
|
$ 3,164
|
$ 3,208
|
$ 3,201
|
$ 2,496
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
contingent deferred sales charge.
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 $.18 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .89%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not
reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or
reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent
the net expenses paid by the class.
J
Amount represents less than $.01 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.21
|
$ 8.44
|
$ 9.30
|
$ 8.53
|
$ 8.29
|
$ 10.68
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.07
|
.17
|
.18
|
.36
G
|
.19
|
.20
|
|
Net realized and unrealized gain
(loss)
|
.15
|
2.05
|
(.67
)
|
1.06
|
.25
|
(2.59
)
|
|
Total from investment operations
|
.22
|
2.22
|
(.49
)
|
1.42
|
.44
|
(2.39
)
|
|
Distributions from net investment
income
|
(.18)
|
(.19)
|
(.19)
|
(.35)
|
(.08)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.53
)
|
(.46
)
|
(.37
)
|
(.65
)
J
|
(.20
)
|
-
|
|
Redemption fees added to paid in
capital
D
|
-
I
|
.01
|
-
I
|
-
I
|
-
I
|
-
I
|
|
Net asset value, end of period
|
$ 9.90
|
$ 10.21
|
$ 8.44
|
$ 9.30
|
$ 8.53
|
$ 8.29
|
|
Total Return
B,C
|
2.18%
|
27.31%
|
(4.76)%
|
17.15%
|
5.29%
|
(22.38)%
|
|
Ratios to Average Net Assets
E,H
|
|
|
|
|
|
|
Expenses before reductions
|
1.16%
A
|
1.16%
|
1.19%
|
1.17%
|
1.19%
|
1.19%
|
|
Expenses net of fee waivers, if any
|
1.15%
A
|
1.16%
|
1.19%
|
1.17%
|
1.19%
|
1.19%
|
|
Expenses net of all reductions
|
1.15%
A
|
1.14%
|
1.12%
|
1.11%
|
1.14%
|
1.16%
|
|
Net investment income (loss)
|
1.28%
A
|
1.76%
|
2.34%
|
3.92%
G
|
2.27%
|
2.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 331,288
|
$ 367,269
|
$ 251,543
|
$ 322,045
|
$ 318,032
|
$ 336,126
|
|
Portfolio turnover rate
F
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Calculated based on average shares outstanding
during the period.
E
Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F
Amount does not
include the portfolio activity of any underlying Fidelity Central Funds.
G
Investment income per share reflects a large, non-recurring dividend which amounted to $.19 per share. Excluding this non-recurring dividend, the ratio of net investment income
(loss) to average net assets would have been 1.90%.
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 $.01 per share.
J
Total
distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.18
|
$ 8.42
|
$ 9.28
|
$ 8.51
|
$ 8.28
|
$ 10.66
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.07
|
.18
|
.18
|
.36
G
|
.19
|
.20
|
|
Net realized and unrealized gain
(loss)
|
.15
|
2.03
|
(.67
)
|
1.06
|
.24
|
(2.58
)
|
|
Total from investment operations
|
.22
|
2.21
|
(.49
)
|
1.42
|
.43
|
(2.38
)
|
|
Distributions from net investment
income
|
(.19)
|
(.19)
|
(.20)
|
(.35)
|
(.08)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.54
)
|
(.46
)
|
(.37
)
J
|
(.65
)
K
|
(.20
)
|
-
|
|
Redemption fees added to paid in
capital
D
|
-
I
|
.01
|
-
I
|
-
I
|
-
I
|
-
I
|
|
Net asset value, end of period
|
$ 9.86
|
$ 10.18
|
$ 8.42
|
$ 9.28
|
$ 8.51
|
$ 8.28
|
|
Total Return
B,C
|
2.17%
|
27.33%
|
(4.73)%
|
17.18%
|
5.18%
|
(22.33)%
|
|
Ratios to Average Net Assets
E,H
|
|
|
|
|
|
|
Expenses before reductions
|
1.12%
A
|
1.10%
|
1.19%
|
1.17%
|
1.18%
|
1.19%
|
|
Expenses net of fee waivers, if any
|
1.12%
A
|
1.10%
|
1.19%
|
1.17%
|
1.18%
|
1.19%
|
|
Expenses net of all reductions
|
1.12%
A
|
1.09%
|
1.12%
|
1.11%
|
1.14%
|
1.17%
|
|
Net investment income (loss)
|
1.31%
A
|
1.81%
|
2.34%
|
3.92%
G
|
2.27%
|
2.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 7,783
|
$ 9,905
|
$ 1,947
|
$ 1,785
|
$ 1,425
|
$ 1,600
|
|
Portfolio turnover rate
F
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Calculated based on average shares outstanding
during the period.
E
Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F
Amount does not
include the portfolio activity of any underlying Fidelity Central Funds.
G
Investment income per share reflects a large, non-recurring dividend which amounted to $.19 per share. Excluding this non-recurring dividend, the ratio of net investment income
(loss) to average net assets would have been 1.90%.
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 $.01 per share.
J
Total
distributions of $.37 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.178 per share.
K
Total distributions of $.65 per share is comprised of distributions from net investment
income of $.354 and distributions from net realized gain of $.294 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes
to
Financial Statements
For the period ended January 31, 2014 (Unaudited)
1. Organization.
Fidelity® International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Select Portfolios (the Trust) and is authorized to issue an
unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, International Real Estate
and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed
to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters
that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of
purchase.
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
Semiannual Report
3. Significant Accounting Policies - continued
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 SelectCo, LLC (SelectCo) 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 January 31, 2014, including information on transfers between Levels 1 and 2 is included at the end of the Fund's
Schedule of Investments.
Foreign Currency.
The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses
from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts'
terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end.
Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into
U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities.
Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income.
For financial reporting purposes, the Fund's investment holdings and NAV include trades executed
through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of
business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend
date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is
informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities
received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and
amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery
of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
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, certain foreign taxes, passive foreign investment companies (PFIC),
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 were as follows:
|
Gross unrealized appreciation
|
$ 33,994,542
|
|
Gross unrealized depreciation
|
(34,132,163
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ (137,621
)
|
|
|
|
|
Tax cost
|
$ 365,498,829
|
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
|
$ (153,317,175)
|
|
2018
|
(136,599,532
)
|
|
Total with expiration
|
(289,916,707
)
|
|
No expiration
|
|
|
Long-term
|
(4,708,668
)
|
|
Total capital loss carryforward
|
$ (294,625,375
)
|
Short-Term Trading (Redemption) Fees.
Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal
to 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $85,806,930 and $132,958,233, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee.
Effective August 1, 2013, SelectCo replaced Fidelity Management and Research Company (FMR), an affiliate of SelectCo, as
investment adviser to the Fund. The investment adviser and its affiliates provide the Fund with investment
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 FMR and 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.
Distribution and Service Plan Fees.
In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service
Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total
fees and amounts retained by FDC were as follows:
|
|
Distribution
Fee
|
Service
Fee
|
Total Fees
|
Retained
by FDC
|
|
Class A
|
-%
|
.25%
|
$ 15,280
|
$ 199
|
|
Class T
|
.25%
|
.25%
|
12,406
|
-
|
|
Class B
|
.75%
|
.25%
|
2,328
|
1,746
|
|
Class C
|
.75%
|
.25%
|
33,107
|
9,130
|
|
|
|
|
$ 63,121
|
$ 11,075
|
Sales Load.
FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which
is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales
charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00%
for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained
by FDC
|
|
Class A
|
$ 4,056
|
|
Class T
|
1,157
|
|
Class B
*
|
50
|
|
Class C
*
|
567
|
|
|
$ 5,830
|
*
When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees.
Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer,
dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and
mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount
|
% of
Average
Net Assets
*
|
|
Class A
|
$ 18,442
|
.30
|
|
Class T
|
8,004
|
.32
|
|
Class B
|
701
|
.30
|
|
Class C
|
9,977
|
.30
|
|
International Real Estate
|
533,984
|
.30
|
|
Institutional Class
|
10,676
|
.27
|
|
|
$ 581,784
|
|
*
Annualized
Accounting and Security Lending Fees.
Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's
accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the
security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
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 $174 and is reflected in Miscellaneous expenses on the
Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities 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, which prior to August 1, 2013 included 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.
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
$9,339. 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.
In addition, FMR reimbursed a portion of the fund's operating expenses during the period in the amount of $4,970.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended
January 31, 2014
|
Year ended
July 31, 2013
|
|
From net investment income
|
|
|
|
Class A
|
$ 187,179
|
$ 172,173
|
|
Class T
|
65,518
|
50,314
|
|
Class B
|
3,710
|
5,555
|
|
Class C
|
59,254
|
50,764
|
|
International Real Estate
|
6,296,740
|
6,155,855
|
|
Institutional Class
|
146,129
|
59,668
|
|
Total
|
$ 6,758,530
|
$ 6,494,329
|
|
From net realized gain
|
|
|
|
Class A
|
$ 414,911
|
$ 314,199
|
|
Class T
|
167,858
|
95,309
|
|
Class B
|
16,133
|
14,984
|
|
Class C
|
231,539
|
122,968
|
|
International Real Estate
|
11,907,162
|
9,219,722
|
|
Institutional Class
|
264,929
|
99,644
|
|
Total
|
$ 13,002,532
|
$ 9,866,826
|
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
|
Class A
|
|
|
|
|
|
Shares sold
|
287,990
|
1,371,466
|
$ 2,941,886
|
$ 13,003,119
|
|
Reinvestment of distributions
|
52,782
|
49,316
|
523,243
|
436,835
|
|
Shares redeemed
|
(495,243
)
|
(967,943
)
|
(5,038,304
)
|
(9,409,705
)
|
|
Net increase (decrease)
|
(154,471
)
|
452,839
|
$ (1,573,175
)
|
$ 4,030,249
|
|
Class T
|
|
|
|
|
|
Shares sold
|
58,081
|
304,445
|
$ 587,966
|
$ 2,888,842
|
|
Reinvestment of distributions
|
21,965
|
15,671
|
216,331
|
136,967
|
|
Shares redeemed
|
(75,242
)
|
(122,863
)
|
(762,764
)
|
(1,150,164
)
|
|
Net increase (decrease)
|
4,804
|
197,253
|
$ 41,533
|
$ 1,875,645
|
Semiannual Report
10. Share Transactions - continued
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
|
Class B
|
|
|
|
|
|
Shares sold
|
2,523
|
13,231
|
$ 25,177
|
$ 124,395
|
|
Reinvestment of distributions
|
1,850
|
2,066
|
18,114
|
17,871
|
|
Shares redeemed
|
(4,050
)
|
(25,020
)
|
(40,230
)
|
(238,871
)
|
|
Net increase (decrease)
|
323
|
(9,723
)
|
$ 3,061
|
$ (96,605
)
|
|
Class C
|
|
|
|
|
|
Shares sold
|
151,723
|
484,045
|
$ 1,508,510
|
$ 4,575,568
|
|
Reinvestment of distributions
|
27,197
|
17,498
|
264,712
|
151,342
|
|
Shares redeemed
|
(204,156
)
|
(192,159
)
|
(2,042,772
)
|
(1,818,767
)
|
|
Net increase (decrease)
|
(25,236
)
|
309,384
|
$ (269,550
)
|
$ 2,908,143
|
|
International Real Estate
|
|
|
|
|
|
Shares sold
|
4,511,336
|
20,213,881
|
$ 46,327,382
|
$ 192,972,755
|
|
Reinvestment of distributions
|
1,734,135
|
1,655,369
|
17,353,307
|
14,646,693
|
|
Shares redeemed
|
(8,768,036
)
|
(15,686,974
)
|
(90,106,174
)
|
(154,320,297
)
|
|
Net increase (decrease)
|
(2,522,565
)
|
6,182,276
|
$ (26,425,485
)
|
$ 53,299,151
|
|
Institutional Class
|
|
|
|
|
|
Shares sold
|
220,700
|
1,045,311
|
$ 2,269,302
|
$ 10,362,559
|
|
Reinvestment of distributions
|
34,703
|
14,563
|
345,746
|
130,213
|
|
Shares redeemed
|
(439,709
)
|
(317,798
)
|
(4,494,893
)
|
(3,193,565
)
|
|
Net increase (decrease)
|
(184,306
)
|
742,076
|
$ (1,879,845
)
|
$ 7,299,207
|
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 approximately 16% of the outstanding shares of the
fund.
Semiannual Report
Change
in
Independent Registered Public Accounting Firm
Based on the recommendation of the Audit Committee of Fidelity International Real Estate Fund, the Board of Trustees has determined not to retain
PricewaterhouseCoopers LLP as the fund's independent auditor and voted to appoint Deloitte & Touche LLP for the fiscal year ended July 31, 2014.
For the fiscal years ended July 31, 2013 and July 31, 2012, PricewaterhouseCoopers LLP's audit reports contained no adverse opinion or disclaimer of
opinion; nor were their reports qualified as to uncertainty, audit scope, or accounting principles. Further, there were no disagreements between the
fund and PricewaterhouseCoopers LLP on accounting principles, financial statements disclosure or audit scope, which if not resolved to the satisfaction of PricewaterhouseCoopers LLP would have caused them to make reference to the disagreement in their report.
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (UK) Ltd.
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
(Fidelity Investment logo)(registered trademark)
AIRE-USAN-0314
1.843181.106
(Fidelity Investment logo)(registered trademark)
Fidelity
Advisor
®
International Real Estate
Fund - Institutional Class
Semiannual Report
January 31, 2014
(Fidelity Cover Art)
Institutional Class is a
class of Fidelity®
International Real Estate Fund
Contents
|
Shareholder Expense Example
|
(Click
Here)
|
An example of shareholder expenses.
|
|
Investment Changes
|
(Click
Here)
|
A summary of major shifts in the fund's investments over the past
six months.
|
|
Investments
|
(Click
Here)
|
A complete list of the fund's investments with their market values.
|
|
Financial Statements
|
(Click
Here)
|
Statements of assets and liabilities, operations, and changes in net
assets, as well as financial highlights.
|
|
Notes
|
(Click
Here)
|
Notes to the financial statements.
|
|
Change in Independent Registered Public
Accounting Firm
|
(Click
Here)
|
|
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.
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
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption
proceeds, 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 (August 1, 2013 to January 31,
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. A small
balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included
in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses
incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate
the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical
expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You
may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged
once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the
underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds.
These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the
second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
|
|
Annualized
Expense Ratio
B
|
Beginning
Account Value
August 1, 2013
|
Ending
Account Value
January 31, 2014
|
Expenses Paid
During Period
*
August 1, 2013
to January 31, 2014
|
|
Class A
|
1.41%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,020.30
|
$ 7.18
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,018.10
|
$ 7.17
|
|
Class T
|
1.68%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,019.40
|
$ 8.55
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,016.74
|
$ 8.54
|
|
Class B
|
2.16%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,017.90
|
$ 10.99
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,014.32
|
$ 10.97
|
|
Class C
|
2.16%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,016.80
|
$ 10.98
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,014.32
|
$ 10.97
|
|
International Real Estate
|
1.15%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,021.80
|
$ 5.86
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,019.41
|
$ 5.85
|
|
Institutional Class
|
1.12%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,021.70
|
$ 5.71
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,019.56
|
$ 5.70
|
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
184/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
Mitsui Fudosan Co. Ltd.
|
8.1
|
8.3
|
|
Westfield Group unit
|
5.4
|
6.2
|
|
Sumitomo Realty & Development Co. Ltd.
|
5.4
|
4.8
|
|
Sun Hung Kai Properties Ltd.
|
5.2
|
6.8
|
|
Hongkong Land Holdings Ltd.
|
3.6
|
2.9
|
|
Advance Residence Investment Corp.
|
3.5
|
3.0
|
|
Fukuoka (REIT) Investment Fund
|
3.1
|
2.7
|
|
Global Logistic Properties Ltd.
|
2.8
|
1.8
|
|
Parkway Life REIT
|
2.6
|
2.6
|
|
Helical Bar PLC
|
2.6
|
2.8
|
|
|
42.3
|
|
|
Top Five Countries as of January 31, 2014
|
|
(excluding cash equivalents)
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
Japan
|
26.2
|
26.5
|
|
United Kingdom
|
13.7
|
13.1
|
|
Australia
|
12.5
|
12.9
|
|
Singapore
|
8.5
|
9.7
|
|
Hong Kong
|
8.4
|
10.6
|
|
Percentages are adjusted for the effect of open futures contracts, if applicable.
|
|
Top Five REIT Sectors as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
REITs - Management/Investment
|
14.9
|
17.7
|
|
REITs - Industrial Buildings
|
4.4
|
4.1
|
|
REITs - Office Buildings
|
3.6
|
3.3
|
|
REITs - Health Care Facilities
|
2.6
|
2.6
|
|
REITs - Shopping Centers
|
2.3
|
2.0
|
|
Asset Allocation (% of fund's net assets)
|
|
As of January 31, 2014
*
|
As of July 31, 2013
**
|
|
|
Stocks 95.4%
|
|
|
Stocks 95.8%
|
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 4.6%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 4.2%
|
|
|
*
Foreign investments
|
95.4%
|
|
**
Foreign investments
|
95.8%
|
|
Semiannual Report
Investments January 31, 2014 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 95.4%
|
|
|
Shares
|
|
Value
|
|
Australia - 12.5%
|
|
Abacus Property Group unit
|
2,757,194
|
|
$ 5,391,772
|
|
Ardent Leisure Group unit
|
800,000
|
|
1,375,311
|
|
Charter Hall Group unit
|
859,414
|
|
2,787,647
|
|
GDI Property Group unit (a)
|
1,209,100
|
|
940,902
|
|
Goodman Group unit
|
1,361,366
|
|
5,562,610
|
|
Hotel Property Investments unit (a)
|
626,295
|
|
1,093,880
|
|
Mirvac Group unit
|
3,858,185
|
|
5,638,138
|
|
National Storage (REIT) unit (a)
|
2,094,255
|
|
2,009,981
|
|
Ramsay Health Care Ltd.
|
18,164
|
|
697,444
|
|
Westfield Group unit
|
2,205,525
|
|
19,721,012
|
|
TOTAL AUSTRALIA
|
|
45,218,697
|
|
Bailiwick of Jersey - 1.5%
|
|
Atrium European Real Estate Ltd.
|
965,724
|
|
5,426,098
|
|
Belgium - 1.4%
|
|
Warehouses de Pauw
|
70,735
|
|
5,046,676
|
|
Bermuda - 6.3%
|
|
Great Eagle Holdings Ltd.
|
2,223,088
|
|
7,287,358
|
|
Hongkong Land Holdings Ltd.
|
2,140,000
|
|
12,881,623
|
|
Tai Cheung Holdings Ltd.
|
3,639,000
|
|
2,591,987
|
|
TOTAL BERMUDA
|
|
22,760,968
|
|
Brazil - 0.4%
|
|
BHG SA (Brazil Hospitality Group) (a)
|
174,300
|
|
913,662
|
|
BR Malls Participacoes SA
|
109,000
|
|
686,543
|
|
TOTAL BRAZIL
|
|
1,600,205
|
|
Cayman Islands - 1.3%
|
|
KWG Property Holding Ltd.
|
2,443,500
|
|
1,271,509
|
|
Langham Hospitality Investment unit
|
5,936,405
|
|
2,821,471
|
|
Phoenix Healthcare Group Ltd. (a)
|
330,500
|
|
545,739
|
|
TOTAL CAYMAN ISLANDS
|
|
4,638,719
|
|
Finland - 0.8%
|
|
Sponda Oyj
|
558,200
|
|
2,702,711
|
|
France - 3.8%
|
|
Altarea (d)
|
7,609
|
|
1,341,790
|
|
Societe de la Tour Eiffel
|
17,025
|
|
1,140,504
|
|
Societe Fonciere Lyonnaise SA
|
110,226
|
|
5,707,870
|
|
Unibail-Rodamco
|
23,207
|
|
5,593,182
|
|
TOTAL FRANCE
|
|
13,783,346
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value
|
|
Germany - 3.1%
|
|
DIC Asset AG
|
221,824
|
|
$ 1,996,388
|
|
LEG Immobilien AG
|
127,095
|
|
7,567,028
|
|
Patrizia Immobilien AG
|
165,664
|
|
1,726,899
|
|
TOTAL GERMANY
|
|
11,290,315
|
|
Greece - 0.2%
|
|
Eurobank Properties Real Estate Investment Co. (a)
|
75,400
|
|
767,774
|
|
Hong Kong - 8.4%
|
|
Hysan Development Co. Ltd.
|
887,703
|
|
3,510,199
|
|
Magnificent Estates Ltd.
|
48,625,000
|
|
2,254,695
|
|
Sino Land Ltd.
|
4,210,000
|
|
5,596,126
|
|
Sun Hung Kai Properties Ltd.
|
1,546,133
|
|
18,879,081
|
|
TOTAL HONG KONG
|
|
30,240,101
|
|
Italy - 1.1%
|
|
Beni Stabili SpA SIIQ
|
5,397,933
|
|
4,004,106
|
|
Japan - 26.2%
|
|
Advance Residence Investment Corp. (e)
|
6,007
|
|
12,682,940
|
|
AEON Mall Co. Ltd.
|
172,120
|
|
5,059,649
|
|
BLife Investment Corp.
|
918
|
|
3,824,336
|
|
Fukuoka (REIT) Investment Fund
|
1,348
|
|
11,313,017
|
|
Hulic (REIT), Inc.
|
707
|
|
747,343
|
|
Hulic Co. Ltd.
|
283,100
|
|
3,586,426
|
|
Ichigo Group Holdings Co. Ltd. (d)
|
317,600
|
|
922,706
|
|
Kenedix, Inc. (a)
|
249,900
|
|
997,874
|
|
Mitsubishi Estate Co. Ltd.
|
162,000
|
|
3,978,902
|
|
Mitsui Fudosan Co. Ltd.
|
929,500
|
|
29,353,001
|
|
Ship Healthcare Holdings, Inc.
|
45,500
|
|
1,738,243
|
|
Sumitomo Realty & Development Co. Ltd.
|
446,500
|
|
19,714,373
|
|
Tosei Corp.
|
164,700
|
|
1,127,338
|
|
TOTAL JAPAN
|
|
95,046,148
|
|
Luxembourg - 2.2%
|
|
GAGFAH SA (a)
|
470,500
|
|
6,764,445
|
|
Grand City Properties SA (a)
|
125,000
|
|
1,289,863
|
|
TOTAL LUXEMBOURG
|
|
8,054,308
|
|
Netherlands - 1.5%
|
|
Eurocommercial (Certificaten Van Aandelen) unit
|
50,000
|
|
2,056,768
|
|
VastNed Retail NV
|
69,255
|
|
3,315,850
|
|
TOTAL NETHERLANDS
|
|
5,372,618
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value
|
|
Norway - 0.2%
|
|
Olav Thon Eiendomsselskap A/S
|
5,400
|
|
$ 881,727
|
|
Singapore - 8.5%
|
|
CDL Hospitality Trusts unit
|
3,387,000
|
|
4,262,820
|
|
Global Logistic Properties Ltd.
|
4,585,358
|
|
10,036,112
|
|
Parkway Life REIT
|
5,438,000
|
|
9,635,466
|
|
UOL Group Ltd.
|
724,000
|
|
3,315,812
|
|
Wing Tai Holdings Ltd.
|
2,138,181
|
|
2,896,177
|
|
Yanlord Land Group Ltd.
|
890,000
|
|
779,356
|
|
TOTAL SINGAPORE
|
|
30,925,743
|
|
Spain - 0.2%
|
|
New Hampshire Hoteles Sociedad Anonima (a)
|
87,500
|
|
550,522
|
|
Sweden - 2.1%
|
|
Castellum AB
|
288,300
|
|
4,603,013
|
|
Hufvudstaden AB Series A
|
228,800
|
|
3,068,059
|
|
TOTAL SWEDEN
|
|
7,671,072
|
|
United Kingdom - 13.7%
|
|
Big Yellow Group PLC
|
744,600
|
|
6,340,568
|
|
Derwent London PLC
|
192,500
|
|
7,879,624
|
|
Hammerson PLC
|
584,729
|
|
5,051,295
|
|
Helical Bar PLC
|
1,638,827
|
|
9,341,680
|
|
Quintain Estates & Development PLC (a)
|
886,600
|
|
1,450,194
|
|
Safestore Holdings PLC
|
2,889,700
|
|
9,120,725
|
|
Segro PLC
|
852,608
|
|
4,724,801
|
|
St. Modwen Properties PLC
|
262,625
|
|
1,658,272
|
|
Unite Group PLC
|
600,500
|
|
4,045,390
|
|
TOTAL UNITED KINGDOM
|
|
49,612,549
|
|
TOTAL COMMON STOCKS
(Cost $343,340,000)
|
345,594,403
|
|
Money Market Funds - 5.5%
|
|
|
Shares
|
|
Value
|
|
Fidelity Cash Central Fund, 0.10% (b)
|
19,101,206
|
|
$ 19,101,206
|
|
Fidelity Securities Lending Cash Central Fund, 0.09% (b)(c)
|
665,599
|
|
665,599
|
|
TOTAL MONEY MARKET FUNDS
(Cost $19,766,805)
|
19,766,805
|
|
TOTAL INVESTMENT PORTFOLIO - 100.9%
(Cost $363,106,805)
|
|
365,361,208
|
|
NET OTHER ASSETS (LIABILITIES) - (0.9)%
|
|
(3,142,998
)
|
|
NET ASSETS - 100%
|
$ 362,218,210
|
|
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 or a portion of the security purchased on a delayed delivery or when-issued basis.
|
|
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
|
$ 9,077
|
|
Fidelity Securities Lending Cash Central Fund
|
9,339
|
|
Total
|
$ 18,416
|
|
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 January 31, 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
|
$ 7,915,661
|
$ 6,540,350
|
$ 1,375,311
|
$ -
|
|
Financials
|
334,697,316
|
154,436,103
|
180,261,213
|
-
|
|
Health Care
|
2,981,426
|
545,739
|
2,435,687
|
-
|
|
Money Market Funds
|
19,766,805
|
19,766,805
|
-
|
-
|
|
Total Investments in Securities:
|
$ 365,361,208
|
$ 181,288,997
|
$ 184,072,211
|
$ -
|
|
The following is a summary of transfers between Level 1 and Level 2 for the period ended January 31, 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
|
$ 196,420,385
|
|
Level 2 to Level 1
|
$ 0
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
|
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
Investment in securities, at value (including securities loaned of $630,007) - See
accompanying schedule:
Unaffiliated issuers (cost $343,340,000)
|
$ 345,594,403
|
|
|
Fidelity Central Funds (cost $19,766,805)
|
19,766,805
|
|
|
Total Investments (cost $363,106,805)
|
|
$ 365,361,208
|
|
Receivable for investments sold
|
|
8,097,199
|
|
Receivable for fund shares sold
|
|
336,846
|
|
Dividends receivable
|
|
973,643
|
|
Distributions receivable from Fidelity Central Funds
|
|
4,218
|
|
Prepaid expenses
|
|
2,679
|
|
Other receivables
|
|
5,948
|
|
Total assets
|
|
374,781,741
|
|
|
|
|
|
Liabilities
|
|
|
|
Payable for investments purchased
Regular delivery
|
$ 10,390,647
|
|
|
Delayed delivery
|
187,919
|
|
|
Payable for fund shares redeemed
|
903,637
|
|
|
Accrued management fee
|
218,528
|
|
|
Distribution and service plan fees payable
|
10,486
|
|
|
Other affiliated payables
|
109,561
|
|
|
Other payables and accrued expenses
|
77,154
|
|
|
Collateral on securities loaned, at value
|
665,599
|
|
|
Total liabilities
|
|
12,563,531
|
|
|
|
|
|
Net Assets
|
|
$ 362,218,210
|
|
Net Assets consist of:
|
|
|
|
Paid in capital
|
|
$ 650,904,243
|
|
Undistributed net investment income
|
|
26,908
|
|
Accumulated undistributed net realized gain (loss) on investments and foreign currency
transactions
|
|
(290,954,400)
|
|
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign
currencies
|
|
2,241,459
|
|
Net Assets
|
|
$ 362,218,210
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
|
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Calculation of Maximum Offering Price
Class A:
Net Asset Value
and redemption price per share ($11,274,337 ÷ 1,149,112 shares)
|
|
$ 9.81
|
|
|
|
|
|
Maximum offering price per share (100/94.25 of $9.81)
|
|
$ 10.41
|
|
Class T
:
Net Asset Value
and redemption price per share ($4,981,909 ÷ 511,098 shares)
|
|
$ 9.75
|
|
|
|
|
|
Maximum offering price per share (100/96.50 of $9.75)
|
|
$ 10.10
|
|
Class B
:
Net Asset Value
and offering price per share ($447,001 ÷ 46,142 shares)
A
|
|
$ 9.69
|
|
|
|
|
|
Class C
:
Net Asset Value
and offering price per share ($6,443,869 ÷ 669,656 shares)
A
|
|
$ 9.62
|
|
|
|
|
|
International Real Estate
:
Net Asset Value
, offering price and redemption price per share ($331,288,389 ÷ 33,463,126
shares)
|
|
$ 9.90
|
|
|
|
|
|
Institutional Class
:
Net Asset Value
, offering price and redemption price per share ($7,782,705 ÷ 789,016 shares)
|
|
$ 9.86
|
A
Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
|
Six months ended January 31, 2014 (Unaudited)
|
|
|
|
|
|
Investment Income
|
|
|
|
Dividends
|
|
$ 4,982,713
|
|
Interest
|
|
43
|
|
Income from Fidelity Central Funds
|
|
18,416
|
|
Income before foreign taxes withheld
|
|
5,001,172
|
|
Less foreign taxes withheld
|
|
(269,298
)
|
|
Total income
|
|
4,731,874
|
|
|
|
|
|
Expenses
|
|
|
|
Management fee
|
$ 1,364,564
|
|
|
Transfer agent fees
|
581,784
|
|
|
Distribution and service plan fees
|
63,121
|
|
|
Accounting and security lending fees
|
100,787
|
|
|
Custodian fees and expenses
|
83,329
|
|
|
Independent trustees' compensation
|
5,383
|
|
|
Registration fees
|
46,250
|
|
|
Audit
|
48,658
|
|
|
Legal
|
7,505
|
|
|
Miscellaneous
|
11,364
|
|
|
Total expenses before reductions
|
2,312,745
|
|
|
Expense reductions
|
(4,974
)
|
2,307,771
|
|
Net investment income (loss)
|
|
2,424,103
|
|
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
|
|
|
|
Investment securities:
|
|
|
|
Unaffiliated issuers
|
14,851,186
|
|
|
Foreign currency transactions
|
29,795
|
|
|
Total net realized gain (loss)
|
|
14,880,981
|
|
Change in net unrealized appreciation (depreciation) on:
Investment securities
|
(8,034,687)
|
|
|
Assets and liabilities in foreign currencies
|
(7,295
)
|
|
|
Total change in net unrealized appreciation (depreciation)
|
|
(8,041,982
)
|
|
Net gain (loss)
|
|
6,838,999
|
|
Net
increase (decrease) in net assets resulting from operations
|
|
$ 9,263,102
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
|
Six months ended January 31,
2014 (Unaudited)
|
Year ended
July 31,
2013
|
|
Increase (Decrease) in Net Assets
|
|
|
|
Operations
|
|
|
|
Net investment income (loss)
|
$ 2,424,103
|
$ 6,546,739
|
|
Net realized gain (loss)
|
14,880,981
|
38,615,487
|
|
Change in net unrealized appreciation (depreciation)
|
(8,041,982
)
|
37,591,213
|
|
Net
increase (decrease) in net assets resulting
from operations
|
9,263,102
|
82,753,439
|
|
Distributions to shareholders from net investment income
|
(6,758,530)
|
(6,494,329)
|
|
Distributions to shareholders from net realized gain
|
(13,002,532
)
|
(9,866,826
)
|
|
Total distributions
|
(19,761,062
)
|
(16,361,155
)
|
|
Share transactions - net increase (decrease)
|
(30,103,461
)
|
69,315,790
|
|
Redemption fees
|
64,436
|
249,182
|
|
Total increase (decrease) in net assets
|
(40,536,985)
|
135,957,256
|
|
|
|
|
|
Net Assets
|
|
|
|
Beginning of period
|
402,755,195
|
266,797,939
|
|
End of period (including undistributed net investment income of $26,908 and undistributed
net investment income of $4,361,335, respectively)
|
$ 362,218,210
|
$ 402,755,195
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.11
|
$ 8.37
|
$ 9.21
|
$ 8.46
|
$ 8.24
|
$ 10.63
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.05
|
.14
|
.16
|
.34
H
|
.17
|
.18
|
|
Net realized and unrealized gain
(loss)
|
.16
|
2.03
|
(.65
)
|
1.04
|
.24
|
(2.57
)
|
|
Total from investment operations
|
.21
|
2.17
|
(.49
)
|
1.38
|
.41
|
(2.39
)
|
|
Distributions from net investment
income
|
(.16)
|
(.17)
|
(.17)
|
(.33)
|
(.07)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.51
)
|
(.44
)
|
(.35
)
|
(.63
)
K
|
(.19
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.81
|
$ 10.11
|
$ 8.37
|
$ 9.21
|
$ 8.46
|
$ 8.24
|
|
Total Return
B,C,D
|
2.03%
|
26.94%
|
(4.88)%
|
16.76%
|
4.97%
|
(22.48)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
1.41%
A
|
1.40%
|
1.44%
|
1.42%
|
1.44%
|
1.45%
|
|
Expenses net of fee waivers, if any
|
1.41%
A
|
1.40%
|
1.44%
|
1.42%
|
1.44%
|
1.45%
|
|
Expenses net of all reductions
|
1.41%
A
|
1.39%
|
1.37%
|
1.36%
|
1.39%
|
1.42%
|
|
Net investment income (loss)
|
1.03%
A
|
1.51%
|
2.09%
|
3.67%
H
|
2.02%
|
2.55%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 11,274
|
$ 13,173
|
$ 7,117
|
$ 7,047
|
$ 7,250
|
$ 6,745
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
sales charges.
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 $.19 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.64%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by
the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net
of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the
class.
J
Amount represents less than $.01 per share.
K
Total distributions of $.63 per share is comprised of distributions from net investment income of $.333 and distributions from net realized gain of $.294 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.04
|
$ 8.32
|
$ 9.16
|
$ 8.41
|
$ 8.21
|
$ 10.62
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.04
|
.12
|
.14
|
.31
H
|
.15
|
.17
|
|
Net realized and unrealized gain
(loss)
|
.15
|
2.01
|
(.66
)
|
1.04
|
.23
|
(2.58
)
|
|
Total from investment operations
|
.19
|
2.13
|
(.52
)
|
1.35
|
.38
|
(2.41
)
|
|
Distributions from net investment
income
|
(.14)
|
(.15)
|
(.14)
|
(.31)
|
(.06)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.48
)
K
|
(.42
)
|
(.32
)
|
(.60
)
|
(.18
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.75
|
$ 10.04
|
$ 8.32
|
$ 9.16
|
$ 8.41
|
$ 8.21
|
|
Total Return
B,C,D
|
1.94%
|
26.62%
|
(5.23)%
|
16.54%
|
4.68%
|
(22.69)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
1.68%
A
|
1.68%
|
1.72%
|
1.69%
|
1.70%
|
1.71%
|
|
Expenses net of fee waivers, if any
|
1.68%
A
|
1.68%
|
1.70%
|
1.69%
|
1.70%
|
1.71%
|
|
Expenses net of all reductions
|
1.68%
A
|
1.66%
|
1.63%
|
1.63%
|
1.65%
|
1.68%
|
|
Net investment income (loss)
|
.76%
A
|
1.23%
|
1.83%
|
3.41%
H
|
1.75%
|
2.29%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 4,982
|
$ 5,081
|
$ 2,570
|
$ 2,496
|
$ 2,510
|
$ 2,080
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
sales charges.
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 $.19 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.38%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by
the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net
of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the
class.
J
Amount represents less than $.01 per share.
K
Total distributions of $.48 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $.348 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 9.94
|
$ 8.24
|
$ 9.05
|
$ 8.32
|
$ 8.14
|
$ 10.58
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.01
|
.07
|
.10
|
.26
H
|
.11
|
.13
|
|
Net realized and unrealized gain
(loss)
|
.17
|
1.99
|
(.64
)
|
1.03
|
.23
|
(2.57
)
|
|
Total from investment operations
|
.18
|
2.06
|
(.54
)
|
1.29
|
.34
|
(2.44
)
|
|
Distributions from net investment
income
|
(.08)
|
(.10)
|
(.09)
|
(.27)
|
(.04)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.43
)
|
(.37
)
|
(.27
)
|
(.56
)
|
(.16
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.69
|
$ 9.94
|
$ 8.24
|
$ 9.05
|
$ 8.32
|
$ 8.14
|
|
Total Return
B,C,D
|
1.79%
|
25.87%
|
(5.61)%
|
15.90%
|
4.20%
|
(23.06)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.19%
|
2.19%
|
|
Expenses net of fee waivers, if any
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.19%
|
2.19%
|
|
Expenses net of all reductions
|
2.16%
A
|
2.14%
|
2.12%
|
2.11%
|
2.14%
|
2.17%
|
|
Net investment income (loss)
|
.28%
A
|
.76%
|
1.34%
|
2.92%
H
|
1.26%
|
1.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 447
|
$ 456
|
$ 457
|
$ 570
|
$ 629
|
$ 606
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
contingent deferred sales charge.
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 $.18 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .90%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not
reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or
reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent
the net expenses paid by the class.
J
Amount represents less than $.01 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 9.89
|
$ 8.21
|
$ 9.03
|
$ 8.30
|
$ 8.13
|
$ 10.57
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.01
|
.07
|
.10
|
.26
H
|
.11
|
.13
|
|
Net realized and unrealized gain
(loss)
|
.16
|
1.99
|
(.64
)
|
1.04
|
.22
|
(2.57
)
|
|
Total from investment operations
|
.17
|
2.06
|
(.54
)
|
1.30
|
.33
|
(2.44
)
|
|
Distributions from net investment
income
|
(.09)
|
(.12)
|
(.10)
|
(.28)
|
(.04)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.44
)
|
(.39
)
|
(.28
)
|
(.57
)
|
(.16
)
|
-
|
|
Redemption fees added to paid in
capital
E
|
-
J
|
.01
|
-
J
|
-
J
|
-
J
|
-
J
|
|
Net asset value, end of period
|
$ 9.62
|
$ 9.89
|
$ 8.21
|
$ 9.03
|
$ 8.30
|
$ 8.13
|
|
Total Return
B,C,D
|
1.68%
|
25.96%
|
(5.68)%
|
16.07%
|
4.10%
|
(23.08)%
|
|
Ratios to Average Net Assets
F,I
|
|
|
|
|
|
|
Expenses before reductions
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.18%
|
2.19%
|
|
Expenses net of fee waivers, if any
|
2.16%
A
|
2.16%
|
2.19%
|
2.17%
|
2.18%
|
2.19%
|
|
Expenses net of all reductions
|
2.16%
A
|
2.14%
|
2.12%
|
2.11%
|
2.14%
|
2.17%
|
|
Net investment income (loss)
|
.28%
A
|
.76%
|
1.34%
|
2.92%
H
|
1.27%
|
1.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 6,444
|
$ 6,872
|
$ 3,164
|
$ 3,208
|
$ 3,201
|
$ 2,496
|
|
Portfolio turnover rate
G
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Total returns do not include the effect of the
contingent deferred sales charge.
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 $.18 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .89%.
I
Expense ratios reflect operating expenses of the class. Expenses before reductions do not
reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or
reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent
the net expenses paid by the class.
J
Amount represents less than $.01 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - International Real Estate
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.21
|
$ 8.44
|
$ 9.30
|
$ 8.53
|
$ 8.29
|
$ 10.68
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.07
|
.17
|
.18
|
.36
G
|
.19
|
.20
|
|
Net realized and unrealized gain
(loss)
|
.15
|
2.05
|
(.67
)
|
1.06
|
.25
|
(2.59
)
|
|
Total from investment operations
|
.22
|
2.22
|
(.49
)
|
1.42
|
.44
|
(2.39
)
|
|
Distributions from net investment
income
|
(.18)
|
(.19)
|
(.19)
|
(.35)
|
(.08)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.53
)
|
(.46
)
|
(.37
)
|
(.65
)
J
|
(.20
)
|
-
|
|
Redemption fees added to paid in
capital
D
|
-
I
|
.01
|
-
I
|
-
I
|
-
I
|
-
I
|
|
Net asset value, end of period
|
$ 9.90
|
$ 10.21
|
$ 8.44
|
$ 9.30
|
$ 8.53
|
$ 8.29
|
|
Total Return
B,C
|
2.18%
|
27.31%
|
(4.76)%
|
17.15%
|
5.29%
|
(22.38)%
|
|
Ratios to Average Net Assets
E,H
|
|
|
|
|
|
|
Expenses before reductions
|
1.16%
A
|
1.16%
|
1.19%
|
1.17%
|
1.19%
|
1.19%
|
|
Expenses net of fee waivers, if any
|
1.15%
A
|
1.16%
|
1.19%
|
1.17%
|
1.19%
|
1.19%
|
|
Expenses net of all reductions
|
1.15%
A
|
1.14%
|
1.12%
|
1.11%
|
1.14%
|
1.16%
|
|
Net investment income (loss)
|
1.28%
A
|
1.76%
|
2.34%
|
3.92%
G
|
2.27%
|
2.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 331,288
|
$ 367,269
|
$ 251,543
|
$ 322,045
|
$ 318,032
|
$ 336,126
|
|
Portfolio turnover rate
F
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Calculated based on average shares outstanding
during the period.
E
Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F
Amount does not
include the portfolio activity of any underlying Fidelity Central Funds.
G
Investment income per share reflects a large, non-recurring dividend which amounted to $.19 per share. Excluding this non-recurring dividend, the ratio of net investment income
(loss) to average net assets would have been 1.90%.
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 $.01 per share.
J
Total
distributions of $.65 per share is comprised of distributions from net investment income of $.354 and distributions from net realized gain of $.294 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
|
|
Six months ended January 31,
2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 10.18
|
$ 8.42
|
$ 9.28
|
$ 8.51
|
$ 8.28
|
$ 10.66
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.07
|
.18
|
.18
|
.36
G
|
.19
|
.20
|
|
Net realized and unrealized gain
(loss)
|
.15
|
2.03
|
(.67
)
|
1.06
|
.24
|
(2.58
)
|
|
Total from investment operations
|
.22
|
2.21
|
(.49
)
|
1.42
|
.43
|
(2.38
)
|
|
Distributions from net investment
income
|
(.19)
|
(.19)
|
(.20)
|
(.35)
|
(.08)
|
-
|
|
Distributions from net realized gain
|
(.35
)
|
(.27
)
|
(.18
)
|
(.29
)
|
(.12
)
|
-
|
|
Total distributions
|
(.54
)
|
(.46
)
|
(.37
)
J
|
(.65
)
K
|
(.20
)
|
-
|
|
Redemption fees added to paid in
capital
D
|
-
I
|
.01
|
-
I
|
-
I
|
-
I
|
-
I
|
|
Net asset value, end of period
|
$ 9.86
|
$ 10.18
|
$ 8.42
|
$ 9.28
|
$ 8.51
|
$ 8.28
|
|
Total Return
B,C
|
2.17%
|
27.33%
|
(4.73)%
|
17.18%
|
5.18%
|
(22.33)%
|
|
Ratios to Average Net Assets
E,H
|
|
|
|
|
|
|
Expenses before reductions
|
1.12%
A
|
1.10%
|
1.19%
|
1.17%
|
1.18%
|
1.19%
|
|
Expenses net of fee waivers, if any
|
1.12%
A
|
1.10%
|
1.19%
|
1.17%
|
1.18%
|
1.19%
|
|
Expenses net of all reductions
|
1.12%
A
|
1.09%
|
1.12%
|
1.11%
|
1.14%
|
1.17%
|
|
Net investment income (loss)
|
1.31%
A
|
1.81%
|
2.34%
|
3.92%
G
|
2.27%
|
2.81%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (000
omitted)
|
$ 7,783
|
$ 9,905
|
$ 1,947
|
$ 1,785
|
$ 1,425
|
$ 1,600
|
|
Portfolio turnover rate
F
|
47%
A
|
78%
|
138%
|
131%
|
95%
|
55%
|
|
A
Annualized
B
Total returns for periods of less than one year are not annualized.
C
Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D
Calculated based on average shares outstanding
during the period.
E
Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F
Amount does not
include the portfolio activity of any underlying Fidelity Central Funds.
G
Investment income per share reflects a large, non-recurring dividend which amounted to $.19 per share. Excluding this non-recurring dividend, the ratio of net investment income
(loss) to average net assets would have been 1.90%.
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 $.01 per share.
J
Total
distributions of $.37 per share is comprised of distributions from net investment income of $.195 and distributions from net realized gain of $.178 per share.
K
Total distributions of $.65 per share is comprised of distributions from net investment
income of $.354 and distributions from net realized gain of $.294 per share.
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes
to
Financial Statements
For the period ended January 31, 2014 (Unaudited)
1. Organization.
Fidelity® International Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Select Portfolios (the Trust) and is authorized to issue an
unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, International Real Estate
and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed
to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters
that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of
purchase.
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
Semiannual Report
3. Significant Accounting Policies - continued
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 SelectCo, LLC (SelectCo) 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 January 31, 2014, including information on transfers between Levels 1 and 2 is included at the end of the Fund's
Schedule of Investments.
Foreign Currency.
The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses
from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts'
terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end.
Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into
U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities.
Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income.
For financial reporting purposes, the Fund's investment holdings and NAV include trades executed
through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of
business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior
business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend
date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is
informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities
received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and
amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery
of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
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, certain foreign taxes, passive foreign investment companies (PFIC),
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 were as follows:
|
Gross unrealized appreciation
|
$ 33,994,542
|
|
Gross unrealized depreciation
|
(34,132,163
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ (137,621
)
|
|
|
|
|
Tax cost
|
$ 365,498,829
|
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
|
$ (153,317,175)
|
|
2018
|
(136,599,532
)
|
|
Total with expiration
|
(289,916,707
)
|
|
No expiration
|
|
|
Long-term
|
(4,708,668
)
|
|
Total capital loss carryforward
|
$ (294,625,375
)
|
Short-Term Trading (Redemption) Fees.
Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal
to 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $85,806,930 and $132,958,233, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee.
Effective August 1, 2013, SelectCo replaced Fidelity Management and Research Company (FMR), an affiliate of SelectCo, as
investment adviser to the Fund. The investment adviser and its affiliates provide the Fund with investment
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
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 FMR and 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.
Distribution and Service Plan Fees.
In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service
Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total
fees and amounts retained by FDC were as follows:
|
|
Distribution
Fee
|
Service
Fee
|
Total Fees
|
Retained
by FDC
|
|
Class A
|
-%
|
.25%
|
$ 15,280
|
$ 199
|
|
Class T
|
.25%
|
.25%
|
12,406
|
-
|
|
Class B
|
.75%
|
.25%
|
2,328
|
1,746
|
|
Class C
|
.75%
|
.25%
|
33,107
|
9,130
|
|
|
|
|
$ 63,121
|
$ 11,075
|
Sales Load.
FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which
is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales
charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00%
for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained
by FDC
|
|
Class A
|
$ 4,056
|
|
Class T
|
1,157
|
|
Class B
*
|
50
|
|
Class C
*
|
567
|
|
|
$ 5,830
|
*
When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees.
Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer,
dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and
mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
|
Amount
|
% of
Average
Net Assets
*
|
|
Class A
|
$ 18,442
|
.30
|
|
Class T
|
8,004
|
.32
|
|
Class B
|
701
|
.30
|
|
Class C
|
9,977
|
.30
|
|
International Real Estate
|
533,984
|
.30
|
|
Institutional Class
|
10,676
|
.27
|
|
|
$ 581,784
|
|
*
Annualized
Accounting and Security Lending Fees.
Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's
accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the
security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
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 $174 and is reflected in Miscellaneous expenses on the
Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities 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, which prior to August 1, 2013 included 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.
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
$9,339. 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.
In addition, FMR reimbursed a portion of the fund's operating expenses during the period in the amount of $4,970.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended
January 31, 2014
|
Year ended
July 31, 2013
|
|
From net investment income
|
|
|
|
Class A
|
$ 187,179
|
$ 172,173
|
|
Class T
|
65,518
|
50,314
|
|
Class B
|
3,710
|
5,555
|
|
Class C
|
59,254
|
50,764
|
|
International Real Estate
|
6,296,740
|
6,155,855
|
|
Institutional Class
|
146,129
|
59,668
|
|
Total
|
$ 6,758,530
|
$ 6,494,329
|
|
From net realized gain
|
|
|
|
Class A
|
$ 414,911
|
$ 314,199
|
|
Class T
|
167,858
|
95,309
|
|
Class B
|
16,133
|
14,984
|
|
Class C
|
231,539
|
122,968
|
|
International Real Estate
|
11,907,162
|
9,219,722
|
|
Institutional Class
|
264,929
|
99,644
|
|
Total
|
$ 13,002,532
|
$ 9,866,826
|
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
|
Class A
|
|
|
|
|
|
Shares sold
|
287,990
|
1,371,466
|
$ 2,941,886
|
$ 13,003,119
|
|
Reinvestment of distributions
|
52,782
|
49,316
|
523,243
|
436,835
|
|
Shares redeemed
|
(495,243
)
|
(967,943
)
|
(5,038,304
)
|
(9,409,705
)
|
|
Net increase (decrease)
|
(154,471
)
|
452,839
|
$ (1,573,175
)
|
$ 4,030,249
|
|
Class T
|
|
|
|
|
|
Shares sold
|
58,081
|
304,445
|
$ 587,966
|
$ 2,888,842
|
|
Reinvestment of distributions
|
21,965
|
15,671
|
216,331
|
136,967
|
|
Shares redeemed
|
(75,242
)
|
(122,863
)
|
(762,764
)
|
(1,150,164
)
|
|
Net increase (decrease)
|
4,804
|
197,253
|
$ 41,533
|
$ 1,875,645
|
Semiannual Report
10. Share Transactions - continued
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
|
Year ended
July 31,
2013
|
|
Class B
|
|
|
|
|
|
Shares sold
|
2,523
|
13,231
|
$ 25,177
|
$ 124,395
|
|
Reinvestment of distributions
|
1,850
|
2,066
|
18,114
|
17,871
|
|
Shares redeemed
|
(4,050
)
|
(25,020
)
|
(40,230
)
|
(238,871
)
|
|
Net increase (decrease)
|
323
|
(9,723
)
|
$ 3,061
|
$ (96,605
)
|
|
Class C
|
|
|
|
|
|
Shares sold
|
151,723
|
484,045
|
$ 1,508,510
|
$ 4,575,568
|
|
Reinvestment of distributions
|
27,197
|
17,498
|
264,712
|
151,342
|
|
Shares redeemed
|
(204,156
)
|
(192,159
)
|
(2,042,772
)
|
(1,818,767
)
|
|
Net increase (decrease)
|
(25,236
)
|
309,384
|
$ (269,550
)
|
$ 2,908,143
|
|
International Real Estate
|
|
|
|
|
|
Shares sold
|
4,511,336
|
20,213,881
|
$ 46,327,382
|
$ 192,972,755
|
|
Reinvestment of distributions
|
1,734,135
|
1,655,369
|
17,353,307
|
14,646,693
|
|
Shares redeemed
|
(8,768,036
)
|
(15,686,974
)
|
(90,106,174
)
|
(154,320,297
)
|
|
Net increase (decrease)
|
(2,522,565
)
|
6,182,276
|
$ (26,425,485
)
|
$ 53,299,151
|
|
Institutional Class
|
|
|
|
|
|
Shares sold
|
220,700
|
1,045,311
|
$ 2,269,302
|
$ 10,362,559
|
|
Reinvestment of distributions
|
34,703
|
14,563
|
345,746
|
130,213
|
|
Shares redeemed
|
(439,709
)
|
(317,798
)
|
(4,494,893
)
|
(3,193,565
)
|
|
Net increase (decrease)
|
(184,306
)
|
742,076
|
$ (1,879,845
)
|
$ 7,299,207
|
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 approximately 16% of the outstanding shares of the
fund.
Semiannual Report
Change
in
Independent Registered Public Accounting Firm
Based on the recommendation of the Audit Committee of Fidelity International Real Estate Fund, the Board of Trustees has determined not to retain
PricewaterhouseCoopers LLP as the fund's independent auditor and voted to appoint Deloitte & Touche LLP for the fiscal year ended July 31, 2014.
For the fiscal years ended July 31, 2013 and July 31, 2012, PricewaterhouseCoopers LLP's audit reports contained no adverse opinion or disclaimer of
opinion; nor were their reports qualified as to uncertainty, audit scope, or accounting principles. Further, there were no disagreements between the
fund and PricewaterhouseCoopers LLP on accounting principles, financial statements disclosure or audit scope, which if not resolved to the satisfaction of PricewaterhouseCoopers LLP would have caused them to make reference to the disagreement in their report.
Semiannual Report
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisers
FIL Investment Advisers (UK) Ltd.
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
(Fidelity Investment logo)(registered trademark)
AIREI-USAN-0314
1.843174.106