Fidelity® Biotechnology Portfolio

  • Symbol: FBIOX
  • No Transaction Fee No Transaction Fee 1
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Summary

Morningstar® Snapshot*

AS OF 07/31/2014; MORNINGSTAR CATEGORY: Health
Returns 5 out of 5, High Returns
LOWAVGHIGH
Expenses 1 out of 5, Low Fees
LOWAVGHIGH
Risk of this Category Category Risk Rating:7, where 1 is Lower and 10 is Higher
LOWERHIGHER

*All data provided by Morningstar. Please click on each indicator above to learn more about comparison groups and methodology.

Performance

 2 More Information
AS OF 8/31/2014
Average Annual Returns
YTD (Daily)* 1 Yr 3 Yr 5 Yr 10 Yr
YTD (Daily)* +20.45% 1 Yr +36.14% 3 Yr +44.25% 5 Yr +29.45% 10 Yr +16.14%
*AS OF 8/29/2014; Value is cumulative

Hypothetical Growth of $10,000

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AS OF 08/31/2014; MORNINGSTAR CATEGORY: Health
Shows growth of hypothetical $10,000 investment in Fidelity® Biotechnology Portfolio compared to S&P 500,MSCI IMI Biotech 25/50,Health over the selected time period
Fidelity® Biotechnology Portfolio
Health

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The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Fund Manager(s)

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Rajiv Kaul since 10/12/2005

Fund Overview

Objective

Seeks capital appreciation.

Strategy

Investing primarily in companies engaged in the research, development, manufacture, and distribution of various biotechnological products, services, and processes and companies that benefit significantly from scientific and technological advances in biotechnology. Normally investing at least 80% of assets in securities of companies principally engaged in these activities. Normally investing primarily in common stocks.

Risk

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Focus funds can be more volatile because of their narrow concentration in a specific industry. The biotechnology industry can be significantly affected by patent considerations, intense competition, rapid technological change and obsolescence, and government regulation. The fund may have additional volatility because it can invest a significant portion of assets in securities of a small number of individual issuers.

Additional Disclosures

A mutual fund registered under Fidelity Select Portfolios, and managed by Fidelity SelectCo, LLC. This description is only intended to provide a brief overview of the fund. Read the fund's prospectus for more detailed information about the fund.

Details

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Morningstar Category Health
Fund Inception 12/16/1985
NAV
8/29/2014
$218.90
Glossary definition opens in new window.Exp Ratio (Gross)
4/29/2014
0.76%
($7.60 per $1000)
Glossary definition opens in new window.Exp Ratio (Net)
4/29/2014
0.76%
($7.60 per $1000)
Redemption Fee 0.75%
Redemption Period 30 days
Minimum to Invest 5 $2,500.00
Turnover Rate
2/28/2014
35%
Glossary definition opens in new window.Portfolio Net Assets ($M)
8/31/2014
$9,220.09
12 Month Low-High
8/31/2014
$159.81 - $228.64

Top 10 Holdings

 6 More Information
AS OF 6/30/2014
Top 10 Holdings

Quarter-End Average Annual Total Returns

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AS OF 6/30/2014; FUND INCEPTION 12/16/1985 Glossary definition opens in new window.

EXPENSE RATIO (GROSS):
0.76% AS OF 4/29/2014
1 Yr 3 Yr 5 Yr 10 Yr Life
Glossary definition opens in new window.Before Taxes
Fidelity® Biotechnology Portfolio 41.61% 35.49% 28.90% 13.85% 14.15%
Glossary definition opens in new window.After Taxes on Distributions
Fidelity® Biotechnology Portfolio 41.54% 34.96% 28.59% 13.71% --
Glossary definition opens in new window.After taxes on distributions and sale of fund shares
Fidelity® Biotechnology Portfolio 23.60% 28.61% 24.08% 11.67% --

Read more about after-tax returns.

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

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2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Performance & Risk

Average Annual Total Returns

 7, 3, 2 More Information
AS OF 8/31/2014; FUND INCEPTION 12/16/1985
1 Yr 3 Yr 5 Yr 10 Yr Life
Fidelity® Biotechnology Portfolio 36.14% 44.25% 29.45% 16.14% 14.42%

Hypothetical Growth of $10,000

 3, 4 More Information
AS OF 08/31/2014; MORNINGSTAR CATEGORY: Health
Fidelity® Biotechnology Portfolio
Health
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
This Fund 11.99% 8.76% 3.60% 2.65% -11.35% 10.79% 11.41% 18.18% 36.59% 65.66% 20.45%

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The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Quarter-End Average Annual Total Returns

 3, 2 More Information
AS OF 6/30/2014; FUND INCEPTION 12/16/1985 Glossary definition opens in new window.

EXPENSE RATIO (GROSS):
0.76% AS OF 4/29/2014
1 Yr 3 Yr 5 Yr 10 Yr Life
Glossary definition opens in new window.Before Taxes
Fidelity® Biotechnology Portfolio 41.61% 35.49% 28.90% 13.85% 14.15%
Glossary definition opens in new window.After Taxes on Distributions
Fidelity® Biotechnology Portfolio 41.54% 34.96% 28.59% 13.71% --
Glossary definition opens in new window.After taxes on distributions and sale of fund shares
Fidelity® Biotechnology Portfolio 23.60% 28.61% 24.08% 11.67% --

Read more about after-tax returns.

Cumulative Total Returns

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AS OF 8/31/2014
YTD (Daily)* YTD (Monthly) 1 Month 3 Months 6 Months
Fidelity® Biotechnology Portfolio 20.45% 20.45% 13.17% 17.39% -1.15%
Fidelity® Biotechnology Portfolio  (Load Adjusted) -- -- 12.32% -- --
*AS OF 8/29/2014

Fund Risk and Return

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AS OF 7/31/2014; MORNINGSTAR CATEGORY: Health
Risk of this Category Category Risk Rating:7, where 1 is Lower and 10 is Higher
LOWERHIGHER

Risk

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Focus funds can be more volatile because of their narrow concentration in a specific industry. The biotechnology industry can be significantly affected by patent considerations, intense competition, rapid technological change and obsolescence, and government regulation. The fund may have additional volatility because it can invest a significant portion of assets in securities of a small number of individual issuers.

Volatility Measures

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Beta 0.92
AS OF 8/31/2014

A measure of a portfolio's sensitivity to market movements (as represented by a benchmark index). The benchmark index, such as the S&P 500 or EAFE index, has a beta of 1.0. A beta of more (less) than 1.0 indicates that a fund's historical returns have fluctuated more (less) than the benchmark index. Beta is a more reliable measure of volatility when used in combination with a high R2 which indicates a high correlation between the movements in a fund's returns and movements in a benchmark index.

R2 0.24
AS OF 8/31/2014

A measurement of how closely the portfolio's performance correlates with the performance of a benchmark index, such as the S&P 500. R2 is a proportion which ranges between 0.00 and 1.00. An R2 of 1.00 indicates perfect correlation to the benchmark index, that is, all of the portfolio's fluctuations are explained by performance fluctuations of the index, while an R2 of 0.00 indicates no correlation. Therefore, the lower the R2, the more the fund's performance is affected by factors other than the market as measured by that benchmark index. An R2 value of less than 0.5 indicates that the Annualized Alpha and Beta are not reliable performance statistics.

Sharpe Ratio 1.83
AS OF 8/31/2014

The Sharpe ratio is a measure of historical adjusted performance calculated by dividing the fund's excess returns (fund's average monthly returns minus the average monthly return of the Salomon Smith Barney 3-Month T-Bill Index) by the standard deviation of those returns. The higher the ratio, the better the fund's return per unit of risk.

Standard Deviation 21.55
AS OF 8/31/2014

Statistical measure of how much a return varies over an extended period of time. The more variable the returns, the larger the standard deviation. Investors may examine historical standard deviation in conjunction with historical returns to decide whether an investment's volatility would have been acceptable given the returns it would have produced. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation does not indicate how an investment actually performed, but it does indicate the volatility of its returns over time. Standard deviation is annualized. The returns used for this calculation are not load-adjusted.

Volatility measures are based on the variability of historical returns of the portfolio. In the case of annuity funds, this is before the effect of annuity charges. Relative Volatility, Beta, and R2 compare a portfolio's total return to those of a relevant market, represented by the benchmark index. Standard Deviation is calculated independent of an index.

Historical Fund Performance

 2 More Information
Current year's data as of: 8/31/2014
Year Total Returns Capital Gains Dividends Glossary definition opens in new window.Share Class Net Assets ($M)
2014 20.45% -- -- $9,220.09
2013 65.66% $0.46 -- $7,959.44
2012 36.59% $6.481 -- $2,730.55
2011 18.18% $0.121 -- $1,341.03
2010 11.41% -- -- $1,038.49
2009 10.79% -- -- $1,050.66
2008 -11.35% -- -- $1,197.24
2007 2.65% -- -- $1,187.85
2006 3.60% -- -- $1,463.65
2005 8.76% -- -- $1,678.97

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Fund Characteristics and Attribution

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2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Ratings

Morningstar Ratings

AS OF 07/31/2014; MORNINGSTAR CATEGORY: Health
Overall
4 out of 5 stars
Out of 117 funds
3 Yr
5 out of 5 stars
Out of 117 funds
5 Yr
4 out of 5 stars
Out of 110 funds
10 Yr
3 out of 5 stars
Out of 90 funds

An overall rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Metrics as of the date stated. The number of funds in the Health category tracked by Morningstar was 117 for the 3 year period and Overall Ranking; 110 for the 5 year period; and 90 for the 10 year period. Please click on the question mark above for additional Morningstar information.

Past performance is no guarantee of future results.

Lipper Ranking

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AS OF 7/31/2014; LIPPER PEER GROUP: Health/Biotech
1 Yr
#76 out of 86 funds
5 Yr
#5 out of 69 funds
10 Yr
#7 out of 53 funds

The fund is ranked based on total return. Each fund is ranked within a universe of funds with similar investment objectives. Rankings include the reinvestment of dividends and capital gains but exclude the effect of a fund's sales load, if applicable. Lipper Inc. is a nationally recognized organization that ranks the performance of mutual funds.

Past performance is no guarantee of future results.

Watch a brief video to learn about using the new mutual fund library to evaluate funds

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Composition

Major Market Sectors for Equities

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AS OF 6/30/2014
Portfolio Weight S&P 500
Health Care 99.62% 13.32%
Materials 0.05% 3.51%
Consumer Staples 0.01% 9.51%
Energy 0.00% 10.86%
Industrials 0.00% 10.51%
Consumer Discretionary 0.00% 11.85%
Financials 0.00% 16.05%
Information Technology 0.00% 18.83%
Telecommunication Services 0.00% 2.41%
Utilities 0.00% 3.15%
Other 0.00% 0.00%

Asset Allocation

 6 More Information
AS OF 6/30/2014
Fund
Domestic Equities 96.70%
International Equities 2.98%
Developed Markets 2.98%
Emerging Markets 0.00%
Tax Advantaged Domiciles 0.00%
Bonds 0.00%
Cash & Net Other Assets 0.32%

"Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation.

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the Portfolio Composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

The percent of net assets invested in both domestic and foreign Equities (common stocks, preferred stocks, rights and warrants, convertible preferred stocks and stock index futures and options), Bond (all debt instruments, including investment grade, non-investment grade, non-rated securities and convertible bonds), and Cash & Net Other Assets (cash, repurchase agreements, receivables and payables).

Top 10 Holdings

 6 More Information
AS OF 6/30/2014

Equity StyleMap®*

AS OF 6/30/2014
Capitalization
LG
MD current
SM
Value Blend Growth
Style
Current
Historical

Mid-Cap Growth

Invest in companies with market values between $2 billion and $10 billion that fund managers believe are poised for growth. Growth can be based on a variety of factors, such as revenue or earnings growth. Growth funds are typically focused on generating capital gains rather than income.

*80.71%  Fund Assets Covered

Regional Diversification

 6 More Information
AS OF 6/30/2014
United States
97.02%
Europe
2.84%
Canada
0.08%
Asia Pacific ex Japan
0.06%
Japan
0.00%
Emerging Markets
0.00%
Other
0.00%

Country Diversification

 6 More Information
AS OF 6/30/2014
USA
97.03%
Ireland
1.87%

Currency Diversification

 6 More Information
AS OF 6/30/2014
US Dollar
99.14%
Danish Krone
0.40%
Swiss Franc
0.34%
European Monetary Unit (Euro)
0.12%

Fund Facts

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Fiscal Year End
February
Fund Inception
12/16/1985
Fund Number
42
Fund Symbol
FBIOX
Order Cutoff Time
04:00 PM EST

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

Browse Our Proxy Voting Results

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2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.

Fees and Distributions

Expenses & Fees

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0.76%
($7.60 per $1000)
4/29/2014
Distribution and/or service fee(12b-1) Fees
0.00%
Short-Term Redemption Fee
0.75%
Short-Term Redemption Period
30 Days
Small Balance Fee 8

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See prospectus for more information on Fees, Expenses & Loads.

Minimums

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Initial Investment
$2,500.00
Additional Investment
$0.00
Initial IRA Investment
$2,500.00
Additional IRA Investment
$0.00
Initial Group Retirement Investment 5
$500.00
Additional Group Retirement Investment
$0.00
Required Balance
$2,000.00
Direct Deposit
$0.00

Features

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Retirement Accounts
yes
Check Writing
no
Direct Deposit
yes
Automatic Account Builder
yes
Max Exchange Redemptions in a Year
yes
Simple IRA
yes

Distribution

Capital Gains History

Date Per Share Amount Reinvestment Price
12/06/13 $0.405 $178.44
4/12/13 $0.055 $139.24
12/07/12 $1.131 $109.29
4/13/12 $5.35 $91.80

Pricing

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AS OF 8/31/2014
NAV
$218.90
8/29/2014
12 Month Low-High
$159.81 - $228.64
Monthly Low-High
$192.65 - $219.38
On 8/31/2014
$218.90

Price History By Month

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Actual Values: Aug. 2014 to Aug. 2013

Close Low High
Aug $218.90 $192.65 $219.38
Jul $193.42 $182.57 $206.26
Jun $200.28 $185.29 $200.28
May $186.47 $173.36 $187.69
Apr $181.65 $171.96 $199.06
Mar $194.85 $188.77 $225.79
Feb $221.45 $196.24 $228.64
Jan $205.55 $179.46 $214.04
Dec $181.73 $170.72 $182.02
Nov $179.65 $159.81 $179.65
Oct $169.99 $160.66 $179.07
Sep $175.47 $164.55 $176.20
Aug $161.16 $154.78 $168.05

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

Commentary

Second Quarter 2014 Summary

Strategy Review:

  • Select Biotechnology Portfolio is an industry-based, equity-focused strategy that seeks to outperform the benchmark through active management.
  • Fundamental, bottom-up research leveraging Fidelity's deep and experienced global health care team is the primary source of idea generation. Our analysis is driven by a data and statistical approach that places an emphasis on valuation through free cash flow and the probability risk-adjusted net present value of future cash flows.
  • Our investment approach includes evaluating a company's drug pipeline, the size of its market opportunity and its valuation relative to other opportunities. The fund's holdings center around the following four major investment themes: long-term winners and strong pipelines, turnaround companies, breakthrough innovations, and early-stage firms with promising science.
  • Sector strategies could be used by investors as alternatives to individual stocks for either tactical or strategic allocation purposes.
  • While this review mainly outlines drivers for the past quarter, our buy and sell decisions are typically based on the longer-term prospects for stocks and not on short time periods.

Sector Review:

  • For the three months ending June 30, 2014, the biotechnology industry returned 6.53%, as measured by the MSCI® U.S. IMI Biotechnology 25-50 Index, outperforming the broadly based S&P 500® Index, which returned 5.23%. The biotechnology industry underwent a correction in the second half of the first quarter that carried into the beginning of the second quarter, as investor concerns that the group's multiyear rally had possibly reached its peak caused the stocks to sell off. However, investors' fears were assuaged when many companies reported better-than-expected financial results for the first quarter and the industry continued its steady climb.
  • The industry, known for its volatility and high risk / reward profile, saw a large dispersion in returns during the quarter, with some stocks posting triple-digit gains, while other stocks, mostly in the small- and mid-market capitalization range, underwent double-digit losses.
  • Shareholder-friendly capital allocation decisions, such as Celgene's share repurchase announcement, coupled with strides in drug development, such as Vertex Pharmaceuticals' encouraging results from the phase three studies on its cystic fibrosis therapy, helped propel the industry during the period.
  • Despite last quarter's Congressional inquiries into its drug pricing, Gilead Sciences saw its share price rise more the 10% over the course of the second quarter, driven largely by its new drug, SOVALDI®. After gaining U.S. and Canadian regulatory approval in late 2013 and European approval in 2014, first-quarter sales of the once-daily, all-oral hepatitis C drug came in at roughly twice consensus estimates.

Drivers of Fund Performance:

  • For the quarter ending June 30, 2014, Select Biotechnology Portfolio returned 2.79%, underperforming the 6.53% advance of its sector benchmark, the MSCI U.S. IMI Biotechnology 25-50 Index.
  • Security selection had an adverse affect on the fund's relative performance during the period. The largest single detractor was our overweighting in Intercept Pharmaceuticals. Shares of Intercept languished this quarter after the development-stage biopharmaceutical company conducted a secondary stock offering and investors awaited additional trial data. Intercept Pharmaceuticals' shares have been particularly susceptible to market noise and analyst commentary regarding the approval process of its experimental cirrhosis and hepatitis treatments. We maintained our position in Intercept during the period, as we remained optimistic on the company's promising new therapy for nonalcoholic liver cirrhosis.
  • A sizable underweighting in Celgene also was a drag on performance. Shares of the biotechnology company rose on news that management would be doubling the size of the company's existing share-repurchase program and authorizing a two-for-one stock split, the fourth in its history as a public company. Prior to these announcements, Celgene's share price had been suffering due to a patent dispute around its premier blood-cancer treatment REVLIMID®, which accounts for 65% of the company's sales. We reduced our position during the quarter, preferring other large cap stocks in the industry, and remained underweight at quarter-end.
  • Our timely selling of a large portion of our Amgen exposure during the quarter proved beneficial. Shares of the large-cap biotechnology firm sold off sharply in early April, swept up in the market's retreat from the entire industry that began the prior month. Amgen also reported first-quarter revenue below consensus estimates due to higher levels of inventory drawdowns among wholesalers than expected, which had a negative impact on the company's sales.
  • Overweighting InterMune added to relative performance, as shares of the biotechnology company rose more than 30% for the quarter. The company reported better-than-expected first-quarter results and upped its guidance for the fiscal year 2014. Sales in Europe of its drug Esbriet®, a treatment for pulmonary fibrosis, exceeded expectations. In addition, Esbriet® revenues increased in part due to a reduction in the manufacturer's rebate mandated in Germany. We added to our overweight during the quarter because we are positive on the U.S. launch of Esbriet and the drug's accelerated growth in Europe.

End-Of-Quarter Positioning

  • Despite the recent volatility in biotechnology stocks, we continue to be optimistic about the longer-term opportunity in biotechnology, where we believe advances in basic research and diagnostics tools, improved access to capital, and increased outsourcing of research and development by large pharmaceuticals companies provide tailwinds to the industry and drug development.
  • We have positioned the fund to take advantage of select small- and mid-cap stocks that we believe have promising science and were attractively priced following the first-quarter correction. At the end of the quarter, we had a small-cap bias relative to the benchmark. We continue to overweighted selective large-cap companies that we believe have reasonable valuations, exciting new product cycles and undervalued drug pipelines. Also, as the larger pharmaceuticals companies go through patent expirations, the larger biotechnology companies have become more-attractive acquisition targets.
  • The fund continued to emphasize a combination of attractively valued, cash-generative large-cap businesses with sound capital allocation practices, as well as several smaller- and mid-cap companies with emerging portfolios of drugs.
Finally, we remain committed to a disciplined investment process in pursuit of strong long-term results for our shareholders.

Fund Manager(s)

More Information
Rajiv Kaul since 10/12/2005

Strategy & Objective

Objective

Seeks capital appreciation.

Strategy

Investing primarily in companies engaged in the research, development, manufacture, and distribution of various biotechnological products, services, and processes and companies that benefit significantly from scientific and technological advances in biotechnology. Normally investing at least 80% of assets in securities of companies principally engaged in these activities. Normally investing primarily in common stocks.

Watch a brief video to learn about using the new mutual fund library to evaluate funds

The "Mutual Funds" area at the top of each page allows access to mutual fund holdings with individual and joint Fidelity non-retirement accounts. Individual stock positions, ETFs and 529 funds are not available through this view. For the full list of your holdings visit Portfolio Summary.

Mutual Funds are priced as of the previous business day's market close when the market is open. Mutual fund positions are priced as of the official market close (typically 4p.m.) and prices are generally available between 5 p.m. and 6p.m.

1. No Transaction Fee Fidelity funds are available without paying a trading fee to Fidelity or a sales load to the fund. However, the fund may charge a short-term trading or redemption fee to protect the interests of long-term shareholders of the fund. Shares are subject to the fund's management and operating expenses. See Expenses & Fees for more information.

2. Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Life of fund figures are reported as of the commencement date to the period indicated and are cumulative if the fund is less than one year old. Total returns do not reflect the fund's [%] sales charge. If sales charges were included, total returns would have been lower.

3. The Morningstar Category Average is the average return for the peer group based on the returns of each individual fund within the group, for the period shown. This average assumes reinvestment of dividends.

4. This chart illustrates the performance of a hypothetical $10,000 investment made in this investment product (and a benchmark or category average, if shown) from the beginning date shown or on the inception date of the product (whichever is later). The inception date used for products with underlying funds, or multiple shares classes, or are offered as a separate account, strategy or sub account, may be the inception date of the underlying fund, the earliest share class of the product, or the date composite performance for the product was first made available. The product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Benchmark returns include reinvestment of capital gains and dividends, if any, but do not reflect any fees or expenses. It is not possible to invest in an index. Past performance is no guarantee of future results. This chart is not intended to imply any future performance of the investment product.

5. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts are $500 or higher. There is no minimum for additional investments in any type of Fidelity fund you already own.

6. Any holdings, asset allocation, diversification breakdowns or other composition data shown are as of the date indicated and are subject to change at any time. They may not be representative of the fund's current or future investments. The Top Ten holdings do not include money market instruments or futures contracts, if any. Depository receipts are normally combined with the underlying security. Some breakdowns may be intentionally limited to a particular asset class or other subset of the fund's entire portfolio, particularly in multi-asset class funds where the attributes of the equity and fixed income portions are different.

Under the asset allocation section, international (or foreign) assets may be reported differently depending on how an investment option reports its holdings. Some do not report international (or foreign) holdings here, but instead report them in a "Regional Diversification" section. Some report them in this section in addition to the equity, bond and other allocation shown. Others report international (or foreign) holding as a subset of the equity and bond allocations shown. If the allocation without the foreign component equals (or rounds to) 100%, then international (or foreign) is a subset of the equity and bond percentage shown.

7. Percent Rank in Category is the fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. % Rank in Category is based on total returns which include reinvested dividends and capital gains, if any, and exclude sales charges.

8. Fidelity may deduct a small balance maintenance fee of $12.00 from a fund balance with a value less than $2,000. Fund positions opened after September 30 will not be subject to the fee for that calendar year. This fee will not be deducted from fund positions opened after January 1 of that calendar year if those positions use regular investment plans. Refer to the fund prospectus for details.

Generally, data on Fidelity mutual funds is provided by FMR, LLC, Morningstar ratings and data on non-Fidelity mutual funds is provided by Morningstar, Inc. and data on non-mutual fund products is provided by the product's investment manager, trustee or issuer or the plan sponsor whose plan is offering the product to participants. Although Fidelity believes the data gathered from these third-party sources is reliable, it does not review such information and cannot warrant it to be accurate, complete or timely. Fidelity is not responsible for any damages or losses arising from any use of this third-party information.

Before investing, consider the investment objectives, risks, charges and expenses of the fund or annuity and its investment options. Contact Fidelity for a free prospectus and, if available, summary prospectus containing this information. Read it carefully.