Fidelity Select Portfolios
03/23/2021 | Press release | Distributed by Public on 03/23/2021 09:17
Annual/Semi-Annual Report by Investment Company (SEC Filing - N-CSRS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03114
Fidelity Select Portfolios
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
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Date of fiscal year end: |
July 31 |
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Date of reporting period: |
January 31, 2021 |
Item 1.
Reports to Stockholders
Fidelity® Real Estate Investment Portfolio
Semi-Annual Report
January 31, 2021
Contents
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Note to Shareholders |
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Investment Summary |
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Schedule of Investments |
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Financial Statements |
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Notes to Financial Statements |
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Shareholder Expense Example |
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Board Approval of Investment Advisory Contracts |
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. © 2021 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and - given the wide variability in outcomes regarding the outbreak - significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are 'exogenous shocks' that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we're taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)Top Ten Stocks as of January 31, 2021
| % of fund's net assets | |
| Prologis (REIT), Inc. | 8.9 |
| Digital Realty Trust, Inc. | 8.3 |
| Crown Castle International Corp. | 6.9 |
| Equinix, Inc. | 6.7 |
| SBA Communications Corp. Class A | 5.3 |
| Duke Realty Corp. | 4.9 |
| Welltower, Inc. | 4.8 |
| Ventas, Inc. | 3.5 |
| UDR, Inc. | 2.7 |
| CubeSmart | 2.7 |
| 54.7 |
Top Five REIT Sectors as of January 31, 2021
| % of fund's net assets | |
| REITs - Diversified | 39.2 |
| REITs - Warehouse/Industrial | 10.4 |
| REITs - Health Care | 9.6 |
| REITs - Apartments | 9.0 |
| REITs - Storage | 6.6 |
Asset Allocation (% of fund's net assets)
| As of January 31, 2021* | ||
| Stocks | 99.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 1.3%
Schedule of Investments January 31, 2021 (Unaudited)Showing Percentage of Net Assets
| Common Stocks - 99.9% | ||
| Shares | Value (000s) | |
| Equity Real Estate Investment Trusts (REITs) - 96.5% | ||
| REITs - Apartments - 9.0% | ||
| American Homes 4 Rent Class A | 2,563,900 | $77,507 |
| Apartment Investment & Management Co. Class A | 1,657,568 | 7,608 |
| Invitation Homes, Inc. | 2,913,000 | 85,875 |
| Mid-America Apartment Communities, Inc. | 789,700 | 104,833 |
| UDR, Inc. | 3,121,441 | 120,019 |
| 395,842 | ||
| REITs - Diversified - 39.2% | ||
| Apartment Income (REIT) Corp. | 1,787,368 | 69,296 |
| Crown Castle International Corp. | 1,900,900 | 302,737 |
| Digital Realty Trust, Inc. | 2,521,300 | 362,941 |
| Duke Realty Corp. | 5,440,600 | 215,230 |
| Equinix, Inc. | 398,000 | 294,504 |
| Gaming & Leisure Properties | 2,207,310 | 90,787 |
| Lamar Advertising Co. Class A | 460,900 | 37,232 |
| SBA Communications Corp. Class A | 869,100 | 233,501 |
| VICI Properties, Inc. | 2,953,300 | 74,659 |
| Washington REIT (SBI) | 1,712,000 | 37,561 |
| 1,718,448 | ||
| REITs - Health Care - 9.6% | ||
| Medical Properties Trust, Inc. | 2,647,200 | 55,882 |
| Ventas, Inc. | 3,338,154 | 153,789 |
| Welltower, Inc. | 3,521,540 | 213,405 |
| 423,076 | ||
| REITs - Hotels - 1.7% | ||
| DiamondRock Hospitality Co. | 4,850,000 | 39,770 |
| RLJ Lodging Trust | 2,070,395 | 26,729 |
| Ryman Hospitality Properties, Inc. | 137,521 | 8,918 |
| 75,417 | ||
| REITs - Management/Investment - 6.2% | ||
| American Assets Trust, Inc. | 980,000 | 27,077 |
| Lexington Corporate Properties Trust | 5,044,100 | 51,702 |
| National Retail Properties, Inc. | 2,328,500 | 90,812 |
| Weyerhaeuser Co. | 3,233,600 | 100,856 |
| 270,447 | ||
| REITs - Manufactured Homes - 4.4% | ||
| Equity Lifestyle Properties, Inc. | 1,924,674 | 117,097 |
| Sun Communities, Inc. | 533,763 | 76,397 |
| 193,494 | ||
| REITs - Office Property - 5.1% | ||
| Brandywine Realty Trust (SBI) | 2,363,500 | 25,999 |
| Highwoods Properties, Inc. (SBI) | 1,084,823 | 40,670 |
| Mack-Cali Realty Corp. | 2,008,700 | 25,571 |
| Piedmont Office Realty Trust, Inc. Class A | 2,148,300 | 33,041 |
| VEREIT, Inc. | 2,805,437 | 98,836 |
| 224,117 | ||
| REITs - Shopping Centers - 2.9% | ||
| Kimco Realty Corp. | 3,928,990 | 64,868 |
| Regency Centers Corp. | 1,333,400 | 62,910 |
| 127,778 | ||
| REITs - Single Tenant - 1.4% | ||
| Spirit Realty Capital, Inc. | 1,583,800 | 61,071 |
| REITs - Storage - 6.6% | ||
| CubeSmart | 3,364,300 | 117,212 |
| Extra Space Storage, Inc. | 1,021,340 | 116,218 |
| Iron Mountain, Inc. (a) | 1,706,300 | 57,451 |
| 290,881 | ||
| REITs - Warehouse/Industrial - 10.4% | ||
| Americold Realty Trust | 1,923,200 | 67,139 |
| Prologis (REIT), Inc. | 3,771,730 | 389,245 |
| 456,384 | ||
| TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 4,236,955 | |
| Real Estate Management & Development - 3.4% | ||
| Real Estate Development - 1.3% | ||
| Instone Real Estate Group BV (b)(c) | 2,238,895 | 56,921 |
| Real Estate Services - 2.1% | ||
| CBRE Group, Inc. (b) | 1,502,400 | 91,616 |
| TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 148,537 | |
| TOTAL COMMON STOCKS | ||
| (Cost $3,553,668) | 4,385,492 | |
| Money Market Funds - 1.5% | ||
| Fidelity Cash Central Fund 0.09% (d) | 19,714,107 | 19,718 |
| Fidelity Securities Lending Cash Central Fund 0.09% (d)(e) | 46,294,521 | 46,299 |
| TOTAL MONEY MARKET FUNDS | ||
| (Cost $66,017) | 66,017 | |
| TOTAL INVESTMENT IN SECURITIES - 101.4% | ||
| (Cost $3,619,685) | 4,451,509 | |
| NET OTHER ASSETS (LIABILITIES) - (1.4)% | (60,432) | |
| NET ASSETS - 100% | $4,391,077 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $56,921,000 or 1.3% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $14 |
| Fidelity Securities Lending Cash Central Fund | 7 |
| Total | $21 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Common Stocks | $4,385,492 | $4,385,492 | $-- | $-- |
| Money Market Funds | 66,017 | 66,017 | -- | -- |
| Total Investments in Securities: | $4,451,509 | $4,451,509 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amount) | January 31, 2021 (Unaudited) | |
| Assets | ||
|
Investment in securities, at value (including securities loaned of $45,515) - See accompanying schedule: Unaffiliated issuers (cost $3,553,668) |
$4,385,492 | |
| Fidelity Central Funds (cost $66,017) | 66,017 | |
| Total Investment in Securities (cost $3,619,685) | $4,451,509 | |
| Receivable for investments sold | 12,026 | |
| Receivable for fund shares sold | 4,213 | |
| Dividends receivable | 2,331 | |
| Distributions receivable from Fidelity Central Funds | 4 | |
| Prepaid expenses | 22 | |
| Other receivables | 495 | |
| Total assets | 4,470,600 | |
| Liabilities | ||
| Payable for investments purchased | $26,466 | |
| Payable for fund shares redeemed | 3,638 | |
| Accrued management fee | 1,907 | |
| Other affiliated payables | 726 | |
| Other payables and accrued expenses | 487 | |
| Collateral on securities loaned | 46,299 | |
| Total liabilities | 79,523 | |
| Net Assets | $4,391,077 | |
| Net Assets consist of: | ||
| Paid in capital | $3,582,933 | |
| Total accumulated earnings (loss) | 808,144 | |
| Net Assets | $4,391,077 | |
| Net Asset Value, offering price and redemption price per share ($4,391,077 ÷ 112,154 shares) | $39.15 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | |
| Investment Income | ||
| Dividends | $48,686 | |
| Non-Cash dividends | 4,192 | |
| Income from Fidelity Central Funds (including $7 from security lending) | 21 | |
| Total income | 52,899 | |
| Expenses | ||
| Management fee | $11,250 | |
| Transfer agent fees | 3,835 | |
| Accounting fees | 525 | |
| Custodian fees and expenses | 18 | |
| Independent trustees' fees and expenses | 10 | |
| Registration fees | 76 | |
| Audit | 27 | |
| Legal | 5 | |
| Miscellaneous | 17 | |
| Total expenses before reductions | 15,763 | |
| Expense reductions | (128) | |
| Total expenses after reductions | 15,635 | |
| Net investment income (loss) | 37,264 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 115,297 | |
| Fidelity Central Funds | (1) | |
| Foreign currency transactions | 10 | |
| Total net realized gain (loss) | 115,306 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (68,473) | |
| Fidelity Central Funds | (8) | |
| Total change in net unrealized appreciation (depreciation) | (68,481) | |
| Net gain (loss) | 46,825 | |
| Net increase (decrease) in net assets resulting from operations | $84,089 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $37,264 | $87,234 |
| Net realized gain (loss) | 115,306 | 115,279 |
| Change in net unrealized appreciation (depreciation) | (68,481) | (482,111) |
| Net increase (decrease) in net assets resulting from operations | 84,089 | (279,598) |
| Distributions to shareholders | (190,839) | (271,659) |
| Share transactions | ||
| Proceeds from sales of shares | 701,563 | 1,414,992 |
| Reinvestment of distributions | 174,565 | 255,135 |
| Cost of shares redeemed | (591,461) | (1,209,917) |
| Net increase (decrease) in net assets resulting from share transactions | 284,667 | 460,210 |
| Total increase (decrease) in net assets | 177,917 | (91,047) |
| Net Assets | ||
| Beginning of period | 4,213,160 | 4,304,207 |
| End of period | $4,391,077 | $4,213,160 |
| Other Information | ||
| Shares | ||
| Sold | 17,901 | 34,900 |
| Issued in reinvestment of distributions | 4,518 | 5,690 |
| Redeemed | (15,170) | (30,041) |
| Net increase (decrease) | 7,249 | 10,549 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Real Estate Investment Portfolio
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Selected Per-Share Data | ||||||
| Net asset value, beginning of period | $40.16 | $45.62 | $42.48 | $42.92 | $47.35 | $40.80 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .34 | .93 | 1.06 | .81 | .72 | .75 |
| Net realized and unrealized gain (loss) | .42 | (3.48) | 3.98 | .49 | (3.12) | 8.36 |
| Total from investment operations | .76 | (2.55) | 5.04 | 1.30 | (2.40) | 9.11 |
| Distributions from net investment income | (1.05) | (.87) | (1.04) | (.82) | (.71) | (.73) |
| Distributions from net realized gain | (.72) | (2.04) | (.87) | (.92) | (1.32) | (1.83) |
| Total distributions | (1.77) | (2.91) | (1.90)B | (1.74) | (2.03) | (2.56) |
| Redemption fees added to paid in capitalA | - | - | - | - | -C | -C |
| Net asset value, end of period | $39.15 | $40.16 | $45.62 | $42.48 | $42.92 | $47.35 |
| Total ReturnD,E | 2.01% | (6.15)% | 12.29% | 3.13% | (4.94)% | 24.00% |
| Ratios to Average Net AssetsF,G | ||||||
| Expenses before reductions | .74%H | .74% | .74% | .76% | .76% | .78% |
| Expenses net of fee waivers, if any | .74%H | .74% | .74% | .75% | .76% | .77% |
| Expenses net of all reductions | .74%H | .73% | .74% | .75% | .76% | .77% |
| Net investment income (loss) | 1.75%H | 2.19% | 2.46% | 1.99% | 1.69% | 1.81% |
| Supplemental Data | ||||||
| Net assets, end of period (in millions) | $4,391 | $4,213 | $4,304 | $3,939 | $4,321 | $5,567 |
| Portfolio turnover rateI | 50%H | 38% | 23% | 20%J | 15% | 24% |
ACalculated based on average shares outstanding during the period.
BTotal distributions per share do not sum due to rounding.
CAmount represents less than $.005 per share.
DTotal returns for periods of less than one year are not annualized.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAnnualized
IAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
JPortfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
(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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 - quoted prices in active markets for identical investments
- Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
| Fidelity Real Estate Investment Portfolio | $444 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,048,750 |
| Gross unrealized depreciation | (244,043) |
| Net unrealized appreciation (depreciation) | $804,707 |
| Tax cost | $3,646,802 |
The Fund elected to defer to its next fiscal year approximately $46,014 of capital losses recognized during the period November 1, 2019 to July 31, 2020.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Real Estate Investment Portfolio | 1,340,938 | 1,058,877 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .53% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .18% of average net assets.
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| % of Average Net Assets | |
| Fidelity Real Estate Investment Portfolio | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Real Estate Investment Portfolio | $27 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense(a) | |
| Fidelity Real Estate Investment Portfolio | Borrower | $6,153 | .32% | $- |
(a) In the amount of less than five hundred dollars.
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note, and amounted to $58,080 and $58,101, respectively.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the 'line of credit') to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
| Amount | |
| Fidelity Real Estate Investment Portfolio | $4 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
| Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
| Fidelity Real Estate Investment Portfolio | $1 | $- | $- |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset expenses. This amount totaled $122 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $6.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense ExampleAs a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled 'Expenses Paid During Period' to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized Expense Ratio-A |
Beginning Account Value August 1, 2020 |
Ending Account Value January 31, 2021 |
Expenses Paid During Period-B August 1, 2020 to January 31, 2021 |
|
| Fidelity Real Estate Investment Portfolio | .74% | |||
| Actual | $1,000.00 | $1,020.10 | $3.77 | |
| Hypothetical-C | $1,000.00 | $1,021.48 | $3.77 |
AAnnualized expense ratio reflects expenses net of applicable fee waivers.
BExpenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C5% return per year before expenses
Board Approval of Investment Advisory ContractsFidelity Real Estate Investment Portfolio
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.
REA-SANN-0321
1.706448.122
Fidelity® International Real Estate Fund
Semi-Annual Report
January 31, 2021
Includes Fidelity and Fidelity Advisor share classes
Contents
|
Note to Shareholders |
|
|
Investment Summary |
|
|
Schedule of Investments |
|
|
Financial Statements |
|
|
Notes to Financial Statements |
|
|
Shareholder Expense Example |
|
|
Board Approval of Investment Advisory Contracts |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you're an individual investing directly with Fidelity, call 1-800-835-5092 if you're a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you're an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and - given the wide variability in outcomes regarding the outbreak - significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are 'exogenous shocks' that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we're taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)Top Ten Stocks as of January 31, 2021
| % of fund's net assets | |
| Vonovia SE | 6.0 |
| Mitsubishi Estate Co. Ltd. | 5.0 |
| CK Asset Holdings Ltd. | 3.7 |
| Advance Residence Investment Corp. | 3.5 |
| Irish Residential Properties REIT PLC | 2.7 |
| Nomura Real Estate Holdings, Inc. | 2.6 |
| Sino Land Ltd. | 2.6 |
| Wing Tai Holdings Ltd. | 2.5 |
| Daiwa Securities Living Invest | 2.4 |
| LaSalle Logiport REIT | 2.4 |
| 33.4 |
Top Five Countries as of January 31, 2021
| (excluding cash equivalents) | % of fund's net assets |
| Japan | 23.4 |
| United Kingdom | 10.1 |
| Germany | 8.6 |
| Australia | 7.7 |
| Sweden | 7.0 |
Top Five REIT Sectors as of January 31, 2021
| % of fund's net assets | |
| REITs - Diversified | 14.1 |
| REITs - Apartments | 8.3 |
| REITs - Industrial Buildings | 3.6 |
| REITs - Health Care | 3.5 |
| REITs - Management/Investment | 3.0 |
Asset Allocation (% of fund's net assets)
| As of January 31, 2021* | ||
| Stocks | 94.7% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 5.3% |
* Foreign investments - 94.4%
Schedule of Investments January 31, 2021 (Unaudited)Showing Percentage of Net Assets
| Common Stocks - 94.7% | ||
| Shares | Value | |
| Australia - 7.7% | ||
| 360 Capital Group Ltd. unit | 4,474,804 | $3,112,081 |
| Arena (REIT) unit | 5,369,456 | 11,859,423 |
| Charter Hall Group unit | 710,606 | 7,396,758 |
| DEXUS Property Group unit | 2,007,946 | 13,826,500 |
| Home Consortium Ltd. | 1,496,317 | 4,585,677 |
| Ingenia Communities Group unit | 1,529,756 | 5,868,962 |
| National Storage (REIT) unit | 4,808,338 | 7,018,815 |
| NEXTDC Ltd. (a) | 632,244 | 5,605,033 |
| TOTAL AUSTRALIA | 59,273,249 | |
| Bailiwick of Guernsey - 1.5% | ||
| Sirius Real Estate Ltd. | 9,117,547 | 11,855,294 |
| Belgium - 3.2% | ||
| Home Invest Belgium SA | 42,753 | 6,070,300 |
| Inclusio SA | 215,100 | 5,560,037 |
| Montea SICAFI SCA | 33,000 | 4,028,743 |
| VGP NV | 12,756 | 2,092,902 |
| Warehouses de Pauw | 204,676 | 7,362,118 |
| TOTAL BELGIUM | 25,114,100 | |
| Bermuda - 3.1% | ||
| Great Eagle Holdings Ltd. | 5,028,164 | 15,045,743 |
| Tai Cheung Holdings Ltd. | 9,873,000 | 6,023,189 |
| Wing Tai Properties Ltd. | 5,252,000 | 2,655,382 |
| TOTAL BERMUDA | 23,724,314 | |
| Cayman Islands - 3.7% | ||
| CK Asset Holdings Ltd. | 5,648,500 | 28,376,368 |
| France - 3.6% | ||
| ARGAN SA (b) | 125,390 | 13,451,566 |
| Covivio | 169,872 | 13,987,153 |
| TOTAL FRANCE | 27,438,719 | |
| Germany - 8.6% | ||
| LEG Immobilien AG | 107,925 | 15,507,130 |
| Patrizia Immobilien AG | 93,300 | 2,853,250 |
| Scout24 AG (c) | 23,800 | 1,842,703 |
| Vonovia SE | 694,826 | 46,494,384 |
| TOTAL GERMANY | 66,697,467 | |
| Hong Kong - 3.9% | ||
| Hysan Development Co. Ltd. | 2,200,000 | 8,015,993 |
| Magnificent Hotel Investment Ltd. | 162,303,000 | 2,302,690 |
| Sino Land Ltd. | 14,246,945 | 19,845,485 |
| TOTAL HONG KONG | 30,164,168 | |
| Ireland - 3.1% | ||
| Irish Residential Properties REIT PLC | 11,992,200 | 21,043,832 |
| Yew Grove REIT PLC | 3,034,000 | 3,111,215 |
| TOTAL IRELAND | 24,155,047 | |
| Italy - 1.0% | ||
| COIMA RES SpA (c) | 561,287 | 4,277,621 |
| Infrastrutture Wireless Italiane SpA (c) | 347,700 | 3,740,599 |
| TOTAL ITALY | 8,018,220 | |
| Japan - 23.4% | ||
| Advance Residence Investment Corp. | 9,112 | 26,967,588 |
| Daiwa Securities Living Invest | 19,414 | 18,608,674 |
| Goldcrest Co. Ltd. | 520,600 | 8,956,238 |
| Health Care & Medical Investment Corp. | 12,356 | 15,865,979 |
| JTOWER, Inc. (a) | 49,900 | 5,397,556 |
| Katitas Co. Ltd. | 180,800 | 5,402,683 |
| Kenedix Residential Investment Corp. | 7,000 | 12,169,555 |
| LaSalle Logiport REIT | 11,612 | 18,203,164 |
| Mitsubishi Estate Co. Ltd. | 2,476,600 | 39,060,033 |
| Mitsui Fudosan Co. Ltd. | 900 | 18,203 |
| Nomura Real Estate Holdings, Inc. | 914,000 | 20,366,375 |
| Park24 Co. Ltd. | 540,800 | 10,284,726 |
| TOTAL JAPAN | 181,300,774 | |
| Luxembourg - 0.1% | ||
| InPost SA | 34,600 | 831,379 |
| Mexico - 0.3% | ||
| Corporacion Inmobiliaria Vesta S.A.B. de CV | 1,273,362 | 2,400,870 |
| New Zealand - 2.4% | ||
| Arvida Group Ltd. | 6,982,000 | 8,980,905 |
| Auckland International Airport Ltd. | 735,997 | 3,940,211 |
| Stride Property Group unit | 3,410,136 | 5,807,741 |
| TOTAL NEW ZEALAND | 18,728,857 | |
| Norway - 0.3% | ||
| Schibsted ASA (A Shares) | 63,700 | 2,408,025 |
| Singapore - 6.6% | ||
| Keppel DC (REIT) | 4,426,900 | 9,930,866 |
| Parkway Life REIT | 3,808,657 | 11,898,469 |
| United Industrial Corp. Ltd. | 5,495,300 | 9,680,068 |
| Wing Tai Holdings Ltd. | 13,419,081 | 19,193,205 |
| TOTAL SINGAPORE | 50,702,608 | |
| Spain - 2.2% | ||
| Arima Real Estate SOCIMI SA (a) | 735,400 | 8,121,246 |
| Cellnex Telecom SA (c) | 67,420 | 3,952,605 |
| Melia Hotels International SA (a) | 806,403 | 5,284,496 |
| TOTAL SPAIN | 17,358,347 | |
| Sweden - 7.0% | ||
| Amasten Fastighets AB (a) | 6,754,013 | 6,579,188 |
| Catena AB | 82,200 | 3,836,387 |
| Fastighets AB Balder (a) | 257,500 | 12,923,842 |
| Fortinova Fastigheter AB | 745,300 | 3,835,178 |
| Heba Fastighets AB (B Shares) | 313,600 | 3,978,029 |
| K2A Knaust & Andersson Fastigheter AB (a) | 89,600 | 2,144,490 |
| NP3 Fastigheter AB | 501,100 | 7,555,808 |
| Sagax AB | 280,200 | 5,559,537 |
| Wihlborgs Fastigheter AB | 360,230 | 7,423,334 |
| TOTAL SWEDEN | 53,835,793 | |
| Switzerland - 2.6% | ||
| Flughafen Zuerich AG (a) | 11,440 | 1,889,221 |
| PSP Swiss Property AG | 141,184 | 18,084,866 |
| TOTAL SWITZERLAND | 19,974,087 | |
| United Kingdom - 10.1% | ||
| Big Yellow Group PLC | 435,500 | 6,599,506 |
| Derwent London PLC | 159,800 | 6,945,093 |
| Grainger Trust PLC | 3,419,692 | 12,500,890 |
| Harworth Group PLC | 3,759,100 | 6,051,874 |
| Helical Bar PLC | 1,573,374 | 8,170,324 |
| Londonmetric Properity PLC | 2,844,478 | 8,893,779 |
| Rightmove PLC (a) | 527,400 | 4,329,922 |
| Safestore Holdings PLC | 603,094 | 6,697,399 |
| Shaftesbury PLC (b) | 1,017,868 | 7,802,965 |
| Triple Point Social Housing (REIT) PLC (b)(c) | 1,437,700 | 2,088,057 |
| Urban Logistics REIT PLC | 3,830,765 | 7,741,866 |
| TOTAL UNITED KINGDOM | 77,821,675 | |
| United States of America - 0.3% | ||
| CoStar Group, Inc. (a) | 2,200 | 1,979,362 |
| TOTAL COMMON STOCKS | ||
| (Cost $646,490,254) | 732,158,723 | |
| Money Market Funds - 5.3% | ||
| Fidelity Cash Central Fund 0.09% (d) | 39,912,276 | 39,920,258 |
| Fidelity Securities Lending Cash Central Fund 0.09% (d)(e) | 926,588 | 926,681 |
| TOTAL MONEY MARKET FUNDS | ||
| (Cost $40,846,829) | 40,846,939 | |
| TOTAL INVESTMENT IN SECURITIES - 100.0% | ||
| (Cost $687,337,083) | 773,005,662 | |
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 284,561 | |
| NET ASSETS - 100% | $773,290,223 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $15,901,585 or 2.1% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $17,848 |
| Fidelity Securities Lending Cash Central Fund | 28,122 |
| Total | $45,970 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
The value, beginning of period, for the Fidelity Cash Central Fund was $21,218,511. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Cash Central Fund were $198,101,737 and $179,396,913, respectively, during the period.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $16,273,854 | $16,273,854 | $-- | $-- |
| Consumer Discretionary | 8,418,565 | 8,418,565 | -- | -- |
| Health Care | 8,980,905 | 8,980,905 | -- | -- |
| Industrials | 23,491,076 | 23,491,076 | -- | -- |
| Information Technology | 5,605,033 | 5,605,033 | -- | -- |
| Real Estate | 669,389,290 | 669,389,290 | -- | -- |
| Money Market Funds | 40,846,939 | 40,846,939 | -- | -- |
| Total Investments in Securities: | $773,005,662 | $773,005,662 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| January 31, 2021 (Unaudited) | ||
| Assets | ||
|
Investment in securities, at value (including securities loaned of $879,563) - See accompanying schedule: Unaffiliated issuers (cost $646,490,254) |
$732,158,723 | |
| Fidelity Central Funds (cost $40,846,829) | 40,846,939 | |
| Total Investment in Securities (cost $687,337,083) | $773,005,662 | |
| Receivable for investments sold | 9,078,641 | |
| Receivable for fund shares sold | 1,310,278 | |
| Dividends receivable | 2,617,864 | |
| Distributions receivable from Fidelity Central Funds | 2,884 | |
| Prepaid expenses | 3,266 | |
| Other receivables | 8 | |
| Total assets | 786,018,603 | |
| Liabilities | ||
| Payable to custodian bank | $785,175 | |
| Payable for investments purchased | 10,037,617 | |
| Payable for fund shares redeemed | 345,800 | |
| Accrued management fee | 435,892 | |
| Distribution and service plan fees payable | 7,378 | |
| Other affiliated payables | 112,102 | |
| Other payables and accrued expenses | 78,048 | |
| Collateral on securities loaned | 926,368 | |
| Total liabilities | 12,728,380 | |
| Net Assets | $773,290,223 | |
| Net Assets consist of: | ||
| Paid in capital | $704,490,880 | |
| Total accumulated earnings (loss) | 68,799,343 | |
| Net Assets | $773,290,223 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($14,060,381 ÷ 1,068,316 shares)(a) | $13.16 | |
| Maximum offering price per share (100/94.25 of $13.16) | $13.96 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($3,260,352 ÷ 249,522 shares)(a) | $13.07 | |
| Maximum offering price per share (100/96.50 of $13.07) | $13.54 | |
| Class C: | ||
| Net Asset Value and offering price per share ($3,436,121 ÷ 267,289 shares)(a) | $12.86 | |
| International Real Estate: | ||
| Net Asset Value, offering price and redemption price per share ($285,920,921 ÷ 21,459,962 shares) | $13.32 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($193,678,811 ÷ 14,633,797 shares) | $13.24 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($272,933,637 ÷ 20,647,322 shares) | $13.22 |
(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.
Statement of Operations
| Six months ended January 31, 2021 (Unaudited) | ||
| Investment Income | ||
| Dividends | $8,333,105 | |
| Non-Cash dividends | 584,489 | |
| Income from Fidelity Central Funds (including $28,122 from security lending) | 45,970 | |
| Income before foreign taxes withheld | 8,963,564 | |
| Less foreign taxes withheld | (624,322) | |
| Total income | 8,339,242 | |
| Expenses | ||
| Management fee | $2,242,932 | |
| Transfer agent fees | 450,179 | |
| Distribution and service plan fees | 47,879 | |
| Accounting fees | 162,912 | |
| Custodian fees and expenses | 41,397 | |
| Independent trustees' fees and expenses | 1,459 | |
| Registration fees | 69,583 | |
| Audit | 30,713 | |
| Legal | 715 | |
| Miscellaneous | 2,303 | |
| Total expenses before reductions | 3,050,072 | |
| Expense reductions | (1,133) | |
| Total expenses after reductions | 3,048,939 | |
| Net investment income (loss) | 5,290,303 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 19,964,589 | |
| Fidelity Central Funds | (955) | |
| Foreign currency transactions | 113,807 | |
| Total net realized gain (loss) | 20,077,441 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 60,471,475 | |
| Fidelity Central Funds | (2,122) | |
| Assets and liabilities in foreign currencies | (32,482) | |
| Total change in net unrealized appreciation (depreciation) | 60,436,871 | |
| Net gain (loss) | 80,514,312 | |
| Net increase (decrease) in net assets resulting from operations | $85,804,615 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $5,290,303 | $9,266,720 |
| Net realized gain (loss) | 20,077,441 | (6,015,075) |
| Change in net unrealized appreciation (depreciation) | 60,436,871 | (2,579,961) |
| Net increase (decrease) in net assets resulting from operations | 85,804,615 | 671,684 |
| Distributions to shareholders | (12,218,572) | (30,291,248) |
| Share transactions - net increase (decrease) | 200,143,374 | (38,736,344) |
| Total increase (decrease) in net assets | 273,729,417 | (68,355,908) |
| Net Assets | ||
| Beginning of period | 499,560,806 | 567,916,714 |
| End of period | $773,290,223 | $499,560,806 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity International Real Estate Fund Class A
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Selected Per-Share Data | ||||||
| Net asset value, beginning of period | $11.74 | $12.14 | $11.63 | $11.03 | $10.46 | $10.56 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .08 | .17 | .16 | .23 | .16 | .15 |
| Net realized and unrealized gain (loss) | 1.54 | .05B | .55 | .69 | .79 | .02 |
| Total from investment operations | 1.62 | .22 | .71 | .92 | .95 | .17 |
| Distributions from net investment income | (.20) | (.24) | (.17) | (.21) | (.13) | (.15) |
| Distributions from net realized gain | - | (.38) | (.03) | (.11) | (.25) | (.12) |
| Total distributions | (.20) | (.62) | (.20) | (.32) | (.38) | (.27) |
| Redemption fees added to paid in capitalA | - | - | - | -C | -C | -C |
| Net asset value, end of period | $13.16 | $11.74 | $12.14 | $11.63 | $11.03 | $10.46 |
| Total ReturnD,E,F | 13.91% | 1.71% | 6.21% | 8.49% | 9.48% | 1.75% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | 1.23%I | 1.27% | 1.32% | 1.36% | 1.35% | 1.35% |
| Expenses net of fee waivers, if any | 1.23%I | 1.27% | 1.32% | 1.36% | 1.35% | 1.35% |
| Expenses net of all reductions | 1.23%I | 1.26% | 1.31% | 1.35% | 1.35% | 1.33% |
| Net investment income (loss) | 1.30%I | 1.40% | 1.35% | 2.03% | 1.60% | 1.51% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $14,060 | $11,710 | $12,564 | $11,319 | $10,170 | $14,020 |
| Portfolio turnover rateJ | 40%I | 69% | 52% | 56% | 55% | 71% |
ACalculated based on average shares outstanding during the period.
BThe amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
CAmount represents less than $.005 per share.
DTotal returns for periods of less than one year are not annualized.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FTotal returns do not include the effect of the sales charges.
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
IAnnualized
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity International Real Estate Fund Class M
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Selected Per-Share Data | ||||||
| Net asset value, beginning of period | $11.64 | $12.02 | $11.53 | $10.93 | $10.39 | $10.49 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .06 | .13 | .12 | .20 | .13 | .12 |
| Net realized and unrealized gain (loss) | 1.53 | .05B | .54 | .68 | .77 | .02 |
| Total from investment operations | 1.59 | .18 | .66 | .88 | .90 | .14 |
| Distributions from net investment income | (.16) | (.18) | (.14) | (.17) | (.12) | (.11) |
| Distributions from net realized gain | - | (.38) | (.03) | (.11) | (.25) | (.12) |
| Total distributions | (.16) | (.56) | (.17) | (.28) | (.36)C | (.24)C |
| Redemption fees added to paid in capitalA | - | - | - | -D | -D | -D |
| Net asset value, end of period | $13.07 | $11.64 | $12.02 | $11.53 | $10.93 | $10.39 |
| Total ReturnE,F,G | 13.80% | 1.41% | 5.86% | 8.19% | 9.07% | 1.43% |
| Ratios to Average Net AssetsH,I | ||||||
| Expenses before reductions | 1.56%J | 1.59% | 1.62% | 1.65% | 1.65% | 1.66% |
| Expenses net of fee waivers, if any | 1.56%J | 1.58% | 1.62% | 1.65% | 1.65% | 1.66% |
| Expenses net of all reductions | 1.56%J | 1.58% | 1.61% | 1.65% | 1.65% | 1.64% |
| Net investment income (loss) | .97%J | 1.08% | 1.06% | 1.74% | 1.31% | 1.20% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $3,260 | $2,976 | $3,703 | $4,360 | $4,147 | $4,545 |
| Portfolio turnover rateK | 40%J | 69% | 52% | 56% | 55% | 71% |
ACalculated based on average shares outstanding during the period.
BThe amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
CTotal distributions per share do not sum due to rounding.
DAmount represents less than $.005 per share.
ETotal returns for periods of less than one year are not annualized.
FTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
GTotal returns do not include the effect of the sales charges.
HFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
JAnnualized
KAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity International Real Estate Fund Class C
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Selected Per-Share Data | ||||||
| Net asset value, beginning of period | $11.43 | $11.80 | $11.33 | $10.73 | $10.21 | $10.32 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .03 | .07 | .07 | .15 | .09 | .07 |
| Net realized and unrealized gain (loss) | 1.51 | .04B | .55 | .67 | .76 | .02 |
| Total from investment operations | 1.54 | .11 | .62 | .82 | .85 | .09 |
| Distributions from net investment income | (.11) | (.10) | (.12) | (.10) | (.09) | (.07) |
| Distributions from net realized gain | - | (.38) | (.03) | (.11) | (.25) | (.12) |
| Total distributions | (.11) | (.48) | (.15) | (.22)C | (.33)C | (.20)C |
| Redemption fees added to paid in capitalA | - | - | - | -D | -D | -D |
| Net asset value, end of period | $12.86 | $11.43 | $11.80 | $11.33 | $10.73 | $10.21 |
| Total ReturnE,F,G | 13.57% | .85% | 5.56% | 7.70% | 8.69% | .93% |
| Ratios to Average Net AssetsH,I | ||||||
| Expenses before reductions | 2.06%J | 2.04% | 2.02% | 2.05% | 2.09% | 2.10% |
| Expenses net of fee waivers, if any | 2.06%J | 2.03% | 2.02% | 2.04% | 2.08% | 2.10% |
| Expenses net of all reductions | 2.06%J | 2.03% | 2.01% | 2.04% | 2.08% | 2.09% |
| Net investment income (loss) | .47%J | .63% | .66% | 1.35% | .87% | .75% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $3,436 | $3,836 | $3,869 | $4,894 | $4,818 | $5,668 |
| Portfolio turnover rateK | 40%J | 69% | 52% | 56% | 55% | 71% |
ACalculated based on average shares outstanding during the period.
BThe amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
CTotal distributions per share do not sum due to rounding.
DAmount represents less than $.005 per share.
ETotal returns for periods of less than one year are not annualized.
FTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
GTotal returns do not include the effect of the contingent deferred sales charge.
HFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
JAnnualized
KAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity International Real Estate Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Selected Per-Share Data | ||||||
| Net asset value, beginning of period | $11.90 | $12.31 | $11.78 | $11.17 | $10.58 | $10.68 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .10 | .20 | .19 | .27 | .19 | .17 |
| Net realized and unrealized gain (loss) | 1.56 | .05B | .56 | .70 | .79 | .02 |
| Total from investment operations | 1.66 | .25 | .75 | .97 | .98 | .19 |
| Distributions from net investment income | (.24) | (.28) | (.19) | (.24) | (.15) | (.17) |
| Distributions from net realized gain | - | (.38) | (.03) | (.11) | (.25) | (.12) |
| Total distributions | (.24) | (.66) | (.22) | (.36)C | (.39)C | (.29) |
| Redemption fees added to paid in capitalA | - | - | - | -D | -D | -D |
| Net asset value, end of period | $13.32 | $11.90 | $12.31 | $11.78 | $11.17 | $10.58 |
| Total ReturnE,F | 14.10% | 1.98% | 6.49% | 8.84% | 9.74% | 1.94% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .98%I | 1.00% | 1.02% | 1.05% | 1.12% | 1.13% |
| Expenses net of fee waivers, if any | .98%I | 1.00% | 1.02% | 1.05% | 1.12% | 1.13% |
| Expenses net of all reductions | .98%I | .99% | 1.01% | 1.04% | 1.11% | 1.11% |
| Net investment income (loss) | 1.55%I | 1.67% | 1.65% | 2.34% | 1.84% | 1.73% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $285,921 | $224,266 | $251,947 | $244,195 | $226,027 | $341,407 |
| Portfolio turnover rateJ | 40%I | 69% | 52% | 56% | 55% | 71% |
ACalculated based on average shares outstanding during the period.
BThe amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
CTotal distributions per share do not sum due to rounding.
DAmount represents less than $.005 per share.
ETotal returns for periods of less than one year are not annualized.
FTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
IAnnualized
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity International Real Estate Fund Class I
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Selected Per-Share Data | ||||||
| Net asset value, beginning of period | $11.83 | $12.23 | $11.70 | $11.13 | $10.54 | $10.64 |
| Income from Investment Operations | ||||||
| Net investment income (loss)A | .10 | .21 | .20 | .28 | .20 | .19 |
| Net realized and unrealized gain (loss) | 1.56 | .06B | .55 | .68 | .79 | .02 |
| Total from investment operations | 1.66 | .27 | .75 | .96 | .99 | .21 |
| Distributions from net investment income | (.25) | (.28) | (.19) | (.28) | (.16) | (.19) |
| Distributions from net realized gain | - | (.38) | (.03) | (.11) | (.25) | (.12) |
| Total distributions | (.25) | (.67)C | (.22) | (.39) | (.40)C | (.31) |
| Redemption fees added to paid in capitalA | - | - | - | -D | -D | -D |
| Net asset value, end of period | $13.24 | $11.83 | $12.23 | $11.70 | $11.13 | $10.54 |
| Total ReturnE,F | 14.17% | 2.09% | 6.61% | 8.88% | 9.89% | 2.15% |
| Ratios to Average Net AssetsG,H | ||||||
| Expenses before reductions | .91%I | .93% | .94% | .96% | .95% | .97% |
| Expenses net of fee waivers, if any | .91%I | .93% | .94% | .96% | .95% | .97% |
| Expenses net of all reductions | .91%I | .92% | .93% | .95% | .95% | .96% |
| Net investment income (loss) | 1.62%I | 1.73% | 1.74% | 2.44% | 2.00% | 1.89% |
| Supplemental Data | ||||||
| Net assets, end of period (000 omitted) | $193,679 | $145,964 | $137,778 | $350,392 | $171,444 | $98,238 |
| Portfolio turnover rateJ | 40%I | 69% | 52% | 56% | 55% | 71% |
ACalculated based on average shares outstanding during the period.
BThe amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
CTotal distributions per share do not sum due to rounding.
DAmount represents less than $.005 per share.
ETotal returns for periods of less than one year are not annualized.
FTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
IAnnualized
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity International Real Estate Fund Class Z
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||
| 2021 | 2020 | 2019 A | |
| Selected Per-Share Data | |||
| Net asset value, beginning of period | $11.82 | $12.25 | $11.16 |
| Income from Investment Operations | |||
| Net investment income (loss)B | .11 | .22 | .30 |
| Net realized and unrealized gain (loss) | 1.55 | .05C | .79 |
| Total from investment operations | 1.66 | .27 | 1.09 |
| Distributions from net investment income | (.26) | (.32) | - |
| Distributions from net realized gain | - | (.38) | - |
| Total distributions | (.26) | (.70) | - |
| Redemption fees added to paid in capitalB | - | - | - |
| Net asset value, end of period | $13.22 | $11.82 | $12.25 |
| Total ReturnD,E | 14.22% | 2.12% | 9.77% |
| Ratios to Average Net AssetsF,G | |||
| Expenses before reductions | .82%H | .83% | .84%H |
| Expenses net of fee waivers, if any | .82%H | .83% | .84%H |
| Expenses net of all reductions | .82%H | .82% | .83%H |
| Net investment income (loss) | 1.71%H | 1.83% | 3.02%H |
| Supplemental Data | |||
| Net assets, end of period (000 omitted) | $272,934 | $110,808 | $158,056 |
| Portfolio turnover rateI | 40%H | 69% | 52% |
AFor the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
BCalculated based on average shares outstanding during the period.
CThe amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
DTotal returns for periods of less than one year are not annualized.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAnnualized
IAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
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 M, Class C, International Real Estate, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 - quoted prices in active markets for identical investments
- Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income 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.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $99,382,990 |
| Gross unrealized depreciation | (32,647,488) |
| Net unrealized appreciation (depreciation) | $66,735,502 |
| Tax cost | $706,270,160 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(17,878,629) |
| Long-term | (2,378,783) |
| Total capital loss carryforward | $(20,257,412) |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity International Real Estate Fund | 299,510,604 | 123,877,816 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .68% 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 Company LLC (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% | $21,218 | $1,186 |
| Class M | .25% | .25% | 7,808 | - |
| Class C | .75% | .25% | 18,853 | 1,600 |
| $47,879 | $2,786 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC | |
| Class A | $3,502 |
| Class M | 117 |
| Class C(a) | 332 |
| $3,951 |
(a) When 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 LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets(a) | |
| Class A | $17,587 | .21 |
| Class M | 4,458 | .29 |
| Class C | 5,326 | .28 |
| International Real Estate | 263,842 | .21 |
| Class I | 111,437 | .14 |
| Class Z | 47,529 | .04 |
| $450,179 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
| % of Average Net Assets | |
| Fidelity International Real Estate Fund | .05 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity International Real Estate Fund | $123 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note, and amounted to $654,966 and $151,300, respectively.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the 'line of credit') to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
| Amount | |
| Fidelity International Real Estate Fund | $628 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
| Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
| Fidelity International Real Estate Fund | $- | $- | $- |
8. Expense Reductions.
Through arrangements with the Fund's custodian credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $5.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,128.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended January 31, 2021 |
Year ended July 31, 2020 |
|
| Distributions to shareholders | ||
| Class A | $194,975 | $630,346 |
| Class M | 41,248 | 173,347 |
| Class C | 35,827 | 159,947 |
| International Real Estate | 4,716,186 | 12,840,614 |
| Class I | 3,097,269 | 7,773,385 |
| Class Z | 4,133,067 | 8,713,609 |
| Total | $12,218,572 | $30,291,248 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
| Class A | ||||
| Shares sold | 1,764,285 | 272,050 | $21,488,254 | $3,260,167 |
| Reinvestment of distributions | 15,435 | 51,661 | 187,844 | 622,640 |
| Shares redeemed | (1,709,233) | (360,879) | (21,698,206) | (4,177,735) |
| Net increase (decrease) | 70,487 | (37,168) | $(22,108) | $(294,928) |
| Class M | ||||
| Shares sold | 8,463 | 23,672 | $107,123 | $283,476 |
| Reinvestment of distributions | 3,406 | 14,421 | 41,103 | 172,674 |
| Shares redeemed | (18,054) | (90,418) | (221,735) | (1,029,449) |
| Net increase (decrease) | (6,185) | (52,325) | $(73,509) | $(573,299) |
| Class C | ||||
| Shares sold | 21,163 | 153,011 | $259,415 | $1,862,017 |
| Reinvestment of distributions | 2,946 | 12,184 | 34,737 | 143,640 |
| Shares redeemed | (92,374) | (157,633) | (1,135,916) | (1,789,640) |
| Net increase (decrease) | (68,265) | 7,562 | $(841,764) | $216,017 |
| International Real Estate | ||||
| Shares sold | 4,962,836 | 4,712,954 | $62,994,963 | $56,389,087 |
| Reinvestment of distributions | 357,175 | 991,983 | 4,426,522 | 12,108,255 |
| Shares redeemed | (2,705,302) | (7,320,623) | (34,336,111) | (84,136,761) |
| Net increase (decrease) | 2,614,709 | (1,615,686) | $33,085,374 | $(15,639,419) |
| Class I | ||||
| Shares sold | 3,051,471 | 5,517,626 | $39,017,436 | $66,706,193 |
| Reinvestment of distributions | 244,097 | 601,564 | 3,010,865 | 7,304,060 |
| Shares redeemed | (1,005,019) | (5,038,927) | (12,479,705) | (55,671,887) |
| Net increase (decrease) | 2,290,549 | 1,080,263 | $29,548,596 | $18,338,366 |
| Class Z | ||||
| Shares sold | 12,568,367 | 3,160,230 | $154,595,053 | $36,578,678 |
| Reinvestment of distributions | 159,069 | 100,687 | 1,965,715 | 1,220,108 |
| Shares redeemed | (1,456,447) | (6,790,542) | (18,113,983) | (78,581,867) |
| Net increase (decrease) | 11,270,989 | (3,529,625) | $138,446,785 | $(40,783,081) |
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, Strategic Advisers Fidelity international Fund was the owner of record of approximately 14% of the total outstanding shares of the Fund.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense ExampleAs a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled 'Expenses Paid During Period' to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio-A |
Beginning Account Value August 1, 2020 |
Ending Account Value January 31, 2021 |
Expenses Paid During Period-B August 1, 2020 to January 31, 2021 |
|
| Fidelity International Real Estate Fund | ||||
| Class A | 1.23% | |||
| Actual | $1,000.00 | $1,139.10 | $6.63 | |
| Hypothetical-C | $1,000.00 | $1,019.00 | $6.26 | |
| Class M | 1.56% | |||
| Actual | $1,000.00 | $1,138.00 | $8.41 | |
| Hypothetical-C | $1,000.00 | $1,017.34 | $7.93 | |
| Class C | 2.06% | |||
| Actual | $1,000.00 | $1,135.70 | $11.09 | |
| Hypothetical-C | $1,000.00 | $1,014.82 | $10.46 | |
| International Real Estate | .98% | |||
| Actual | $1,000.00 | $1,141.00 | $5.29 | |
| Hypothetical-C | $1,000.00 | $1,020.27 | $4.99 | |
| Class I | .91% | |||
| Actual | $1,000.00 | $1,141.70 | $4.91 | |
| Hypothetical-C | $1,000.00 | $1,020.62 | $4.63 | |
| Class Z | .82% | |||
| Actual | $1,000.00 | $1,142.20 | $4.43 | |
| Hypothetical-C | $1,000.00 | $1,021.07 | $4.18 |
AAnnualized expense ratio reflects expenses net of applicable fee waivers.
BExpenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C5% return per year before expenses
Board Approval of Investment Advisory ContractsFidelity International Real Estate Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.
IRE-SANN-0321
1.801330.117
Fidelity Flex® Funds
Fidelity Flex® Real Estate Fund
Semi-Annual Report
January 31, 2021
Contents
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Note to Shareholders |
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Investment Summary |
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Schedule of Investments |
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Financial Statements |
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Notes to Financial Statements |
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Shareholder Expense Example |
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Board Approval of Investment Advisory Contracts |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-3455 (for managed account clients) or 1-800-835-5092 (for retirement plan participants) to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and - given the wide variability in outcomes regarding the outbreak - significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are 'exogenous shocks' that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we're taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)Top Ten Stocks as of January 31, 2021
| % of fund's net assets | |
| Prologis (REIT), Inc. | 8.9 |
| Digital Realty Trust, Inc. | 8.2 |
| Crown Castle International Corp. | 6.9 |
| Equinix, Inc. | 6.7 |
| SBA Communications Corp. Class A | 5.3 |
| Duke Realty Corp. | 4.9 |
| Welltower, Inc. | 4.8 |
| Ventas, Inc. | 3.5 |
| UDR, Inc. | 2.7 |
| Equity Lifestyle Properties, Inc. | 2.7 |
| 54.6 |
Top Five REIT Sectors as of January 31, 2021
| % of fund's net assets | |
| REITs - Diversified | 39.1 |
| REITs - Warehouse/Industrial | 10.4 |
| REITs - Health Care | 9.6 |
| REITs - Apartments | 9.0 |
| REITs - Storage | 6.6 |
Asset Allocation (% of fund's net assets)
| As of January 31, 2021* | ||
| Stocks | 99.8% | |
| Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 1.3%
Schedule of Investments January 31, 2021 (Unaudited)Showing Percentage of Net Assets
| Common Stocks - 99.8% | ||
| Shares | Value | |
| Equity Real Estate Investment Trusts (REITs) - 96.4% | ||
| REITs - Apartments - 9.0% | ||
| American Homes 4 Rent Class A | 594 | $17,957 |
| Apartment Investment & Management Co. Class A | 380 | 1,744 |
| Invitation Homes, Inc. | 669 | 19,722 |
| Mid-America Apartment Communities, Inc. | 181 | 24,028 |
| UDR, Inc. | 716 | 27,530 |
| 90,981 | ||
| REITs - Diversified - 39.1% | ||
| Apartment Income (REIT) Corp. | 426 | 16,516 |
| Crown Castle International Corp. | 436 | 69,437 |
| Digital Realty Trust, Inc. | 578 | 83,203 |
| Duke Realty Corp. | 1,243 | 49,173 |
| Equinix, Inc. | 91 | 67,336 |
| Gaming & Leisure Properties | 507 | 20,853 |
| Lamar Advertising Co. Class A | 103 | 8,320 |
| SBA Communications Corp. Class A | 199 | 53,465 |
| VICI Properties, Inc. | 676 | 17,089 |
| Washington REIT (SBI) | 397 | 8,710 |
| 394,102 | ||
| REITs - Health Care - 9.6% | ||
| Medical Properties Trust, Inc. | 607 | 12,814 |
| Ventas, Inc. | 762 | 35,105 |
| Welltower, Inc. | 805 | 48,783 |
| 96,702 | ||
| REITs - Hotels - 1.8% | ||
| DiamondRock Hospitality Co. | 1,115 | 9,143 |
| RLJ Lodging Trust | 489 | 6,313 |
| Ryman Hospitality Properties, Inc. | 32 | 2,075 |
| 17,531 | ||
| REITs - Management/Investment - 6.1% | ||
| American Assets Trust, Inc. | 219 | 6,051 |
| Lexington Corporate Properties Trust | 1,159 | 11,880 |
| National Retail Properties, Inc. | 533 | 20,787 |
| Weyerhaeuser Co. | 738 | 23,018 |
| 61,736 | ||
| REITs - Manufactured Homes - 4.5% | ||
| Equity Lifestyle Properties, Inc. | 446 | 27,135 |
| Sun Communities, Inc. | 123 | 17,605 |
| 44,740 | ||
| REITs - Office Property - 5.0% | ||
| Brandywine Realty Trust (SBI) | 539 | 5,929 |
| Highwoods Properties, Inc. (SBI) | 245 | 9,185 |
| Mack-Cali Realty Corp. | 448 | 5,703 |
| Piedmont Office Realty Trust, Inc. Class A | 479 | 7,367 |
| VEREIT, Inc. | 640 | 22,547 |
| 50,731 | ||
| REITs - Shopping Centers - 2.9% | ||
| Kimco Realty Corp. | 905 | 14,942 |
| Regency Centers Corp. | 307 | 14,484 |
| 29,426 | ||
| REITs - Single Tenant - 1.4% | ||
| Spirit Realty Capital, Inc. | 363 | 13,997 |
| REITs - Storage - 6.6% | ||
| CubeSmart | 772 | 26,896 |
| Extra Space Storage, Inc. | 234 | 26,627 |
| Iron Mountain, Inc. | 393 | 13,232 |
| 66,755 | ||
| REITs - Warehouse/Industrial - 10.4% | ||
| Americold Realty Trust | 442 | 15,430 |
| Prologis (REIT), Inc. | 863 | 89,064 |
| 104,494 | ||
| TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) | 971,195 | |
| Real Estate Management & Development - 3.4% | ||
| Real Estate Development - 1.3% | ||
| Instone Real Estate Group BV (a)(b) | 535 | 13,602 |
| Real Estate Services - 2.1% | ||
| CBRE Group, Inc. (a) | 344 | 20,977 |
| TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT | 34,579 | |
| TOTAL COMMON STOCKS | ||
| (Cost $887,775) | 1,005,774 | |
| TOTAL INVESTMENT IN SECURITIES - 99.8% | ||
| (Cost $887,775) | 1,005,774 | |
| NET OTHER ASSETS (LIABILITIES) - 0.2% | 2,089 | |
| NET ASSETS - 100% | $1,007,863 |
Legend
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $13,602 or 1.3% of net assets.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $3 |
| Total | $3 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2021, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $1,005,774 | $1,005,774 | $-- | $-- |
| Total Investments in Securities: | $1,005,774 | $1,005,774 | $-- | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| January 31, 2021 (Unaudited) | ||
| Assets | ||
|
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $887,775) |
$1,005,774 | |
| Cash | 4,875 | |
| Receivable for investments sold | 2,698 | |
| Receivable for fund shares sold | 882 | |
| Dividends receivable | 532 | |
| Total assets | 1,014,761 | |
| Liabilities | ||
| Payable for investments purchased | $6,898 | |
| Total liabilities | 6,898 | |
| Net Assets | $1,007,863 | |
| Net Assets consist of: | ||
| Paid in capital | $1,282,533 | |
| Total accumulated earnings (loss) | (274,670) | |
| Net Assets | $1,007,863 | |
| Net Asset Value, offering price and redemption price per share ($1,007,863 ÷ 99,745 shares) | $10.10 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended January 31, 2021 (Unaudited) | ||
| Investment Income | ||
| Dividends | $12,893 | |
| Non-Cash dividends | 1,077 | |
| Income from Fidelity Central Funds | 3 | |
| Total income | 13,973 | |
| Expenses | ||
| Independent trustees' fees and expenses | $3 | |
| Miscellaneous | 1 | |
| Total expenses before reductions | 4 | |
| Expense reductions | (3) | |
| Total expenses after reductions | 1 | |
| Net investment income (loss) | 13,972 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (15,617) | |
| Total net realized gain (loss) | (15,617) | |
| Change in net unrealized appreciation (depreciation) on investment securities | 42,397 | |
| Net gain (loss) | 26,780 | |
| Net increase (decrease) in net assets resulting from operations | $40,752 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $13,972 | $47,407 |
| Net realized gain (loss) | (15,617) | (342,683) |
| Change in net unrealized appreciation (depreciation) | 42,397 | (55,633) |
| Net increase (decrease) in net assets resulting from operations | 40,752 | (350,909) |
| Distributions to shareholders | (37,349) | (44,980) |
| Share transactions | ||
| Proceeds from sales of shares | 732,788 | 1,075,884 |
| Reinvestment of distributions | 37,349 | 44,980 |
| Cost of shares redeemed | (1,145,634) | (830,052) |
| Net increase (decrease) in net assets resulting from share transactions | (375,497) | 290,812 |
| Total increase (decrease) in net assets | (372,094) | (105,077) |
| Net Assets | ||
| Beginning of period | 1,379,957 | 1,485,034 |
| End of period | $1,007,863 | $1,379,957 |
| Other Information | ||
| Shares | ||
| Sold | 73,807 | 95,566 |
| Issued in reinvestment of distributions | 3,742 | 3,977 |
| Redeemed | (112,733) | (95,420) |
| Net increase (decrease) | (35,184) | 4,123 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Real Estate Fund
| Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||||
| 2021 | 2020 | 2019 | 2018 | 2017 A | |
| Selected Per-Share Data | |||||
| Net asset value, beginning of period | $10.23 | $11.35 | $10.38 | $10.35 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .13 | .32 | .34 | .28 | .11 |
| Net realized and unrealized gain (loss) | .12 | (1.12) | .98 | .05 | .29 |
| Total from investment operations | .25 | (.80) | 1.32 | .33 | .40 |
| Distributions from net investment income | (.38) | (.32) | (.32) | (.26) | (.05) |
| Distributions from net realized gain | - | - | (.02) | (.04) | - |
| Total distributions | (.38) | (.32) | (.35)C | (.30) | (.05) |
| Net asset value, end of period | $10.10 | $10.23 | $11.35 | $10.38 | $10.35 |
| Total ReturnD,E | 2.49% | (7.33)% | 13.00% | 3.28% | 4.01% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | - %H,I | - %I | - %I | .01% | - %H,I |
| Expenses net of fee waivers, if any | - %H,I | - %I | - %I | .01% | - %H,I |
| Expenses net of all reductions | - %H,I | - %I | - %I | .01% | - %H,I |
| Net investment income (loss) | 2.56%H | 2.89% | 3.16% | 2.78% | 2.64%H |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,008 | $1,380 | $1,485 | $713 | $265 |
| Portfolio turnover rateJ | 176%H | 80% | 45% | 91% | 9%K |
AFor the period March 8, 2017 (commencement of operations) to July 31, 2017.
BCalculated based on average shares outstanding during the period.
CTotal distributions per share do not sum due to rounding.
DTotal returns for periods of less than one year are not annualized.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the 'Investments in Fidelity Central Funds' note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAnnualized
IAmount represents less than .005%.
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
KAmount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
1. Organization.
Fidelity Flex 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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund is available only to certain fee-based accounts and advisory programs offered by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 - quoted prices in active markets for identical investments
- Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $150,211 |
| Gross unrealized depreciation | (60,242) |
| Net unrealized appreciation (depreciation) | $89,969 |
| Tax cost | $915,805 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(289,645) |
| Long-term | (39,467) |
| Total capital loss carryforward | $(329,112) |
Due to large redemptions in a prior period, approximately $237,537 of the Fund's realized capital losses are subject to limitation. Due to this limitation, the Fund will only be permitted to use approximately $17,432 of those capital losses per year to offset capital gains. Additionally, the Fund is subject to an annual limit on its use of some of its unrealized capital losses to offset capital gains in future periods. If those capital losses are realized and the limitation prevents the Fund from using any of those capital losses in a future period, those capital losses will be available to offset capital gains in subsequent periods.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Flex Real Estate Fund | 965,156 | 1,331,970 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services and the Fund does not pay any fees for these services. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Flex Real Estate Fund | $34 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note, and amounted to $11,958 and $32,158, respectively.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the 'line of credit') to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
| Amount | |
| Fidelity Flex Real Estate Fund | $1 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $3.
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 29% of the total outstanding shares of the Fund.
9. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense ExampleAs a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a 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, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled 'Expenses Paid During Period' to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized Expense Ratio-A |
Beginning Account Value August 1, 2020 |
Ending Account Value January 31, 2021 |
Expenses Paid During Period-B August 1, 2020 to January 31, 2021 |
|
| Fidelity Flex Real Estate Fund | - %C | |||
| Actual | $1,000.00 | $1,024.90 | $-D | |
| Hypothetical-E | $1,000.00 | $1,025.21 | $-D |
AAnnualized expense ratio reflects expenses net of applicable fee waivers.
BExpenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
CAmount Represents less than .005%.
DAmount represents less than $.005.
E5% return per year before expenses
Board Approval of Investment Advisory ContractsFidelity Flex Real Estate Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.
ZXL-SANN-0321
1.9881646.103
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Select Portfolios's Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Select Portfolios's (the 'Trust') disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
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(a) |
(1) |
Not applicable. |
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(a) |
(2) |
Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
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(a) |
(3) |
Not applicable. |
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(b) |
Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Select Portfolios
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By: |
/s/Stacie M. Smith |
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Stacie M. Smith |
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President and Treasurer |
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Date: |
March 23, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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By: |
/s/Stacie M. Smith |
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Stacie M. Smith |
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President and Treasurer |
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Date: |
March 23, 2021 |
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By: |
/s/John J. Burke III |
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John J. Burke III |
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Chief Financial Officer |
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Date: |
March 23, 2021 |