This
example
helps compare the cost of investing in the fund with the cost of investing in
other funds.
Let's say, hypothetically, that the annual return for shares
of the fund is 5% and that the fees and the annual operating expenses for shares
of the fund are exactly as described in the fee table. This example illustrates
the effect of fees and expenses, but is not meant to suggest actual or expected
fees and expenses or returns, all of which may vary. For every $10,000 you
invested, here's how much you would pay in total expenses if you sell all of
your shares at the end of each time period indicated:
|
1
year |
$ |
0 |
|
3
years |
$ |
0 |
|
5
years |
$ |
6 |
|
10
years |
$ |
28 |
Portfolio
Turnover
The
fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
annual operating expenses or in the example, affect the fund's performance.
During the most recent fiscal year, the fund's portfolio turnover rate
was 30%
of the average value of its portfolio.
Principal
Investment Strategies
- Normally
investing at least 80% of assets in floating rate loans, which are often
lower-quality debt securities (those of less than investment-grade quality,
also referred to as high yield debt securities or junk bonds), and other
floating rate securities.
- Investing
in companies in troubled or uncertain financial condition.
- Investing
in money market and investment-grade debt securities, and repurchase
agreements.
- Investing
in domestic and foreign issuers.
- Using
fundamental analysis of each issuer's financial condition and industry
position and market and economic conditions to select
investments.
Principal
Investment Risks
- Impairment
of Collateral.
A
floating rate loan may not be fully collateralized which may cause the floating
rate loan to decline significantly in value.
- Floating
Rate Loan Liquidity.
Floating
rate loans generally are subject to restrictions on resale. Floating rate loans
sometimes trade infrequently in the secondary market. As a result, valuing a
floating rate loan can be more difficult, and buying and selling a floating rate
loan at an acceptable price can be more difficult or delayed, including extended
trade settlement periods. Difficulty in selling a floating rate loan can result
in a loss.
Interest
rate increases can cause the price of a debt security to decrease.
Foreign
markets can be more volatile than the U.S. market due to increased risks of
adverse issuer, political, regulatory, market, or economic developments and can
perform differently from the U.S. market.
The
ability of an issuer of a debt security to repay principal prior to a security's
maturity can cause greater price volatility if interest rates change and can
limit the potential for gains when the credit quality of the issuer
improves.
The
value of an individual security or particular type of security can be more
volatile than, and can perform differently from, the market as a
whole.
Lower-quality
debt securities (those of less than investment-grade quality, also referred to
as high yield debt securities or junk bonds), including floating rate loans,
involve greater risk of default on interest and principal payments or price
changes due to changes in the credit quality of the issuer. The value of
lower-quality debt securities, including floating rate loans, can be more
volatile due to increased sensitivity to adverse issuer, political, regulatory,
market, or economic developments.
Investments
in covenant-lite loans carry more risk than traditional loans as they allow
issuers to engage in activities that would otherwise be difficult or impossible
under a traditional loan agreement. In the event of default, covenant-lite
obligations have lower recovery values as the lender may not have the
opportunity to negotiate with the borrower prior to default.
An
investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You
could lose money by investing in the fund.
Performance
The
following information is intended to help you understand the risks of investing
in the fund.
The
information illustrates the changes in the performance of the fund's shares from
year to year and compares the performance of the fund's shares to the
performance of a securities market index over various periods of
time.
The index description appears in the "Additional Index Information" section of
the prospectus.
Past performance (before and after taxes) is not an indication of future
performance.
Visit
www.fidelity.com for
more recent performance information.
Year-by-Year
Returns
|
|
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
|
|
6.52%
|
1.06%
|
-2.59%
|
10.33%
|
4.78%
|
1.34%
|
9.38%
|
2.52%
|
6.34%
|
0.49%
|
|
During
the periods shown in the chart: |
Returns |
Quarter
ended |
|
Highest
Quarter Return |
8.48% |
June
30, 2020 |
|
Lowest
Quarter Return |
-12.35% |
March
31, 2020 |
|
Year-to-Date
Return |
9.83% |
September
30, 2023 |
Average
Annual Returns
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates, but do not reflect the impact of state or local
taxes.
Actual after-tax returns may differ depending on your individual
circumstances.
The after-tax returns shown are not relevant if you hold your shares in a
retirement account or in another tax-deferred arrangement, such as an employee
benefit plan (profit sharing, 401(k), or 403(b)
plan).
Return After Taxes on Distributions and Sale of Fund Shares may be higher than
other returns for the same period due to a tax benefit of realizing a capital
loss upon the sale of fund shares.
|
For
the periods ended December 31, 2022 |
Past
1
year |
Past
5
years |
Past
10
years |
|
Fidelity®
Series Floating Rate High Income Fund |
|
|
|
|
Return
Before Taxes |
0.49%
|
3.96%
|
3.94%
|
|
Return
After Taxes on Distributions |
-1.86%
|
1.68%
|
1.58%
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
0.27%
|
2.04%
|
1.96%
|
|
Morningstar®
LSTA® US Performing Loans
(reflects
no deduction for fees, expenses, or taxes) |
-0.77% |
3.43% |
3.89% |
|
|
|
|
|
Investment
Adviser
Fidelity
Management & Research Company LLC (FMR) (the Adviser) is the fund's manager.
Other investment advisers serve as sub-advisers for the fund.
Portfolio
Manager(s)
Eric
Mollenhauer (Co-Portfolio Manager) has managed the fund since 2011.
Kevin
Nielsen (Co-Portfolio Manager) has managed the fund since 2018.
Chandler
Perine (Co-Portfolio Manager) has managed the fund since 2022.
Purchase
and Sale of Shares
Shares
are offered only to certain other Fidelity®
funds, Fidelity managed 529 plans, and Fidelity managed collective investment
trusts.
The
price to sell one share is its net asset value per share (NAV). Shares will be
sold at the NAV next calculated after an order is received in proper
form.
The
fund is open for business each day the New York Stock Exchange (NYSE) is
open.
There
is no purchase minimum for fund shares.
Tax
Information
Distributions
you receive from the fund are subject to federal income tax and generally will
be taxed as ordinary income or capital gains, and may also be subject to state
or local taxes, unless you are investing through a tax-advantaged retirement
account (in which case you may be taxed later, upon withdrawal of your
investment from such account).
Payments
to Broker-Dealers and Other Financial Intermediaries
The
fund, the Adviser, Fidelity Distributors Company LLC (FDC), and/or their
affiliates may pay intermediaries, which may include banks, broker-dealers,
retirement plan sponsors, administrators, or service-providers (who may be
affiliated with the Adviser or FDC), for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing your
intermediary and your investment professional to recommend the fund over another
investment. Ask your investment professional or visit your intermediary's web
site for more information.
Fund
Basics
Investment
Objective
Fidelity®
Series Floating Rate High Income Fund seeks a high level of current
income.
Principal
Investment Strategies
The
Adviser normally invests at least 80% of the fund's assets in floating rate
loans and other floating rate securities. The Adviser defines floating rate
securities as floating rate loans, other floating rate debt securities, money
market securities of all types, repurchase agreements, and shares of money
market and short-term bond funds. Many floating rate loans are lower-quality
(those of less than investment-grade quality, also referred to as high yield
debt securities or junk bonds). The Adviser may invest in companies whose
financial condition is troubled or uncertain and that may be involved in
bankruptcy proceedings, reorganizations, or financial
restructurings.
The
Adviser may invest the fund's assets significantly in money market and
investment-grade debt securities, and repurchase agreements. The Adviser may
invest the fund's assets in these securities and repurchase agreements by
investing in other funds.
The
Adviser may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
In
buying and selling securities for the fund, the Adviser relies on fundamental
analysis of each issuer and its ability to pay principal and interest in light
of its current financial condition, its industry position, and economic and
market conditions. Factors considered include a security's structural features,
underlying collateral, and current price compared to its long-term value, and
the earnings potential, credit standing, and management of the security's
issuer. The Adviser expects that most floating rate loans purchased for the fund
will trade on a secondary market (e.g., floating rate loans of issuers that have
issued at least $100 million of floating rate loans and for which at least two
banks or dealers are willing to make a market).
If
the Adviser's strategies do not work as intended, the fund may not achieve its
objective.
Description
of Principal Security Types
Floating
rate loans
are debt securities issued by companies or other entities with floating interest
rates that reset periodically. Most floating rate loans are secured by specific
collateral of the borrower and are senior to most other securities of the
borrower (e.g.,
common stock or debt instruments) in the event of bankruptcy. Floating rate
loans are often issued in connection with recapitalizations, acquisitions,
leveraged buyouts, and refinancings. Floating rate loans are typically
structured and administered by a financial institution that acts as the agent of
the lenders participating in the floating rate loan. Floating rate loans may be
acquired directly through the agent, as an assignment from another lender who
holds a direct interest in the floating rate loan, or as a participation
interest in another lender's portion of the floating rate
loan.
Debt
securities
are used by issuers to borrow money. The issuer usually pays a fixed, variable,
or floating rate of interest, and must repay the amount borrowed, usually at the
maturity of the security. Some debt securities do not pay current interest but
are sold at a discount from their face values. Debt securities include all types
of debt instruments such as floating rate loans, corporate bonds, government
securities (including Treasury securities), repurchase agreements, mortgage and
other asset-backed securities, and other securities believed to have debt-like
characteristics, including hybrids and synthetic securities.
Some
of the debt securities in which the fund invests may be "covenant-lite," which
means these obligations lack or contain fewer or contingent financial covenants
or other financial protections for lenders and investors than other
obligations.
Money
market securities
are high-quality, short-term securities that pay a fixed, variable, or floating
interest rate. Securities are often specifically structured so that they are
eligible investments for a money market fund. For example, in order to satisfy
the maturity restrictions for a money market fund, some money market securities
have demand or put features, which have the effect of shortening the security's
maturity. Money market securities include bank certificates of deposit, bankers'
acceptances, bank time deposits, notes, commercial paper, and U.S. Government
securities. Certain issuers of U.S. Government securities, including Fannie
Mae, Freddie Mac, and the Federal Home Loan Banks, are sponsored or chartered by
Congress but their securities are neither issued nor guaranteed by the U.S.
Treasury.
A
repurchase agreement is
an agreement to buy a security at one price and a simultaneous agreement to sell
it back at an agreed-upon price.
Principal
Investment Risks
Many
factors affect the fund's performance. Developments that disrupt global
economies and financial markets, such as pandemics and epidemics, may magnify
factors that affect a fund's performance. The fund's share price and yield
change daily based on changes in market conditions and interest rates and in
response to other economic, political, or financial developments. The fund's
reaction to these developments will be affected by the types and maturities of
securities in which the fund invests, the financial condition, industry and
economic sector, and geographic location of an issuer, and the fund's level of
investment in the securities of that issuer. When you sell your shares they may
be worth more or less than what you paid for them, which means that you could
lose money by investing in the fund.
The
following factors can significantly affect the fund's performance:
Impairment
of Collateral. The
value of the collateral securing a floating rate loan can decline, be
insufficient to meet the obligations of the borrower, or be difficult to
liquidate. As a result, a floating rate loan may not be fully collateralized and
can decline significantly in value.
Floating
Rate Loan Liquidity. Floating
rate loans generally are subject to legal or contractual restrictions on resale.
The liquidity of floating rate loans, including the volume and frequency of
secondary market trading in such loans, varies significantly over time and among
individual floating rate loans. For example, if the credit quality of a floating
rate loan unexpectedly declines significantly, secondary market trading in that
floating rate loan can also decline for a period of time. During periods of
infrequent trading, valuing a floating rate loan can be more difficult, and
buying and selling a floating rate loan at an acceptable price can be more
difficult and delayed, including extended trade settlement periods. Difficulty
in selling a floating rate loan can result in a loss.
Interest
Rate Changes. In
general, the price of a debt security can fall when interest rates rise and can
rise when interest rates fall. Securities with floating interest rates can be
less sensitive to interest rate changes, but may decline in value if their
interest rates do not rise as much as interest rates in general. In market
environments where interest rates are rising, issuers may be less willing or
able to make principal and/or interest payments on securities when due. Although
the transition process away from certain benchmark rates, including London
Interbank Offered Rate (LIBOR) (an indicative measure of the average interest
rate at which major global banks could borrow from one another), has become
increasingly well-defined, any potential effects of the transition away from
LIBOR
and other benchmark rates on financial markets, a fund or the financial
instruments in which a fund invests can be difficult to ascertain and may
adversely impact a fund's performance.
Foreign
Exposure. Foreign
securities and securities issued by U.S. entities with substantial foreign
operations can involve additional risks relating to political, economic, or
regulatory conditions in foreign countries. These risks include fluctuations in
foreign exchange rates; withholding or other taxes; trading, settlement,
custodial, and other operational risks; and the less stringent investor
protection and disclosure standards of some foreign markets. All of these
factors can make foreign investments more volatile and potentially less liquid
than U.S. investments. In addition, foreign markets can perform differently from
the U.S. market.
Global
economies and financial markets are becoming increasingly interconnected, which
increases the possibilities that conditions in one country or region might
adversely impact issuers or providers in, or foreign exchange rates with, a
different country or region.
Prepayment.
Many types of debt securities, including floating rate loans, are subject to
prepayment risk. Prepayment risk occurs when the issuer of a security can repay
principal prior to the security's maturity. Securities subject to prepayment
risk can offer less potential for gains when the credit quality of the issuer
improves.
Issuer-Specific
Changes.
Changes in the financial condition of an issuer or counterparty, changes in
specific economic or political conditions that affect a particular type of
security or issuer, and changes in general economic or political conditions can
increase the risk of default by an issuer or counterparty, which can affect a
security's or instrument's credit quality or value and an issuer's or
counterparty's ability to pay interest and principal when due. Lower-quality
debt securities (those of less than investment-grade quality, also referred to
as high yield debt securities or junk bonds), including floating rate loans,
tend to be particularly sensitive to these changes.
Lower-quality
debt securities involve greater risk of default on interest and principal
payments or price changes due to changes in the credit quality of the issuer.
The value of lower-quality debt securities often fluctuates in response to
company, political, or economic developments and can decline significantly over
short as well as long periods of time or during periods of general or regional
economic difficulty. The default rate for lower-quality debt securities is
likely to be higher during economic recessions or periods of high interest
rates.
Covenant-lite
obligations are obligations that lack or contain fewer or contingent financial
covenants and other financial protections for lenders and investors than other
obligations, and may not include terms that allow the lender to monitor the
performance of the borrower and declare a default if certain criteria are
breached. Covenant-lite obligations carry more risk than traditional loans as
they allow issuers to engage in activities that would otherwise be difficult or
impossible under a traditional loan agreement. In the event of default,
covenant-lite obligations have lower recovery values as the lender may not have
the opportunity to negotiate with the borrower prior to default. A fund may
receive less or less frequent financial information from a borrower under a
covenant-lite obligation than under a traditional loan, which may result in more
limited access to financial information, difficulty evaluating a borrower's
financial performance over time and delays in exercising rights and remedies in
event of the borrower's significant financial decline. As a result, a fund's
investments in or exposure to covenant-lite obligations are generally subject to
more risk than investments that contain traditional financial maintenance
covenants and financial reporting requirements.
In
response to market, economic, political, or other conditions such as inadequate
supply of floating rate loans, a fund may temporarily use a different investment
strategy for defensive purposes. If the fund does so, different factors could
affect its performance and the fund may not achieve its investment
objective.
Other
Investment Strategies
In
addition to the principal investment strategies discussed above, the Adviser may
use various techniques, such as buying and selling futures contracts, swaps, and
exchange traded funds, to increase or decrease the fund's exposure to changing
security prices, interest rates, or other factors that affect security
values.
The
Adviser may invest the fund's assets in securities of private or newly public
companies.
Non-Fundamental
Investment Policies
The
fund's investment objective is non-fundamental and may be changed without
shareholder approval.
Shareholder
Notice
The
following is subject to change only upon 60 days' prior notice to
shareholders:
Fidelity®
Series Floating Rate High Income Fund normally
invests at least 80% of its assets in floating rate loans and other floating
rate securities.
The
fund is open for business each day the NYSE is open.
The
NAV is the value of a single share. Fidelity normally calculates NAV as of the
close of business of the NYSE, normally 4:00 p.m. Eastern time. The fund's
assets normally are valued as of this time for the purpose of computing
NAV.
NAV
is not calculated and the fund will not process purchase and redemption requests
submitted on days when the fund is not open for business. The time at which
shares are priced and until which purchase and redemption orders are accepted
may be changed as permitted by the Securities and Exchange Commission
(SEC).
To
the extent that the fund's assets are traded in other markets on days when the
fund is not open for business, the value of the fund's assets may be affected on
those days. In addition, trading in some of the fund's assets may not occur on
days when the fund is open for business.
NAV
is calculated using the values of other open-end funds, if any, in which the
fund invests (referred to as underlying funds). Shares of underlying funds are
valued at their respective NAVs. Other assets are valued primarily on the basis
of market quotations, official closing prices, or information furnished by a
pricing service. Certain short-term securities are valued on the basis of
amortized cost. If market quotations, official closing prices, or information
furnished by a pricing service are not readily available or, in the Adviser's
opinion, are deemed unreliable for a security, then that security will be fair
valued in good faith by the Adviser in accordance with applicable fair value
pricing policies. For example, if, in the Adviser's opinion, a security's value
has been materially affected by events occurring before a fund's pricing time
but after the close of the exchange or market on which the security is
principally traded, then that security will be fair valued in good faith by the
Adviser in accordance with applicable fair value pricing policies. Fair value
pricing will be used for high yield debt securities when available pricing
information is determined to be stale or for other reasons not to accurately
reflect fair value.
Arbitrage
opportunities may exist when trading in a portfolio security or securities is
halted and does not resume before a fund calculates its NAV. These arbitrage
opportunities may enable short-term traders to dilute the NAV of long-term
investors. Securities trading in overseas markets, if applicable, present
time zone arbitrage opportunities when events affecting portfolio security
values occur after the close of the overseas markets but prior to the close of
the U.S. market. Fair valuation of a fund's portfolio securities can serve to
reduce arbitrage opportunities available to short-term traders, but there is no
assurance that fair value pricing policies will prevent dilution of NAV by
short-term traders.
Fair
value pricing is based on subjective judgments and it is possible that the fair
value of a security may differ materially from the value that would be realized
if the security were sold.
Shareholder
Information
Additional
Information about the Purchase and Sale of Shares
As
used in this prospectus, the term "shares" generally refers to the shares
offered through this prospectus.
Frequent
Purchases and Redemptions
The
fund may reject for any reason, or cancel as permitted or required by law, any
purchase orders, including transactions deemed to represent excessive trading,
at any time.
Excessive
trading of fund shares can harm shareholders in various ways, including reducing
the returns to long-term shareholders by increasing costs to the fund (such as
brokerage commissions or spreads paid to dealers who sell money market
instruments), disrupting portfolio management strategies, and diluting the value
of the shares in cases in which fluctuations in markets are not fully priced
into the fund's NAV.
Because
the fund is offered only for investment to certain other Fidelity®
funds, Fidelity managed 529 plans, and Fidelity managed collective
investment trusts, the potential for excessive or short-term disruptive
purchases and sales is reduced. Accordingly, the Board of Trustees has not
adopted policies and procedures designed to discourage excessive trading of fund
shares and the fund accommodates frequent trading.
The
fund has no limit on purchase transactions but may in its discretion restrict,
reject, or cancel any purchases that, in the Adviser's opinion, may be
disruptive to the management of the fund or otherwise not be in the fund's
interests.
The
fund reserves the right at any time to restrict purchases or impose conditions
that are more restrictive on excessive trading than those stated in this
prospectus.
The
fund has no exchange privilege with any other fund.
Buying
Shares
Eligibility
Shares
are generally available only to investors residing in the United
States.
Shares
are offered only to certain other Fidelity®
funds, Fidelity managed 529 plans, and Fidelity managed collective investment
trusts.
There
is no minimum balance or purchase minimum for fund shares.
Price
to Buy
The
price to buy one share is its NAV. Shares are sold without a sales
charge.
Shares
will be bought at the NAV next calculated after an order is received in proper
form.
If
applicable, orders by funds of funds for which Fidelity serves as investment
manager will be treated as received by the fund at the same time that the
corresponding orders are received in proper form by the funds of
funds.
The
fund may stop offering shares completely or may offer shares only on a limited
basis, for a period of time or permanently.
When
you place an order to buy shares, note the following:
- All
wires must be received in proper form by Fidelity at the fund's designated
wire bank before the close of the Federal Reserve Wire System on the day of
purchase or you could be liable for any losses or fees the fund or Fidelity
has incurred or for interest and penalties.
- Under
applicable anti-money laundering rules and other regulations, purchase orders
may be suspended, restricted, or canceled and the monies may be
withheld.
Selling
Shares
The
price to sell one share is its NAV.
Shares
will be sold at the NAV next calculated after an order is received in proper
form.
Normally,
redemptions will be processed by the next business day, but it may take up to
seven days to pay the redemption proceeds if making immediate payment would
adversely affect the fund.
If
applicable, orders by funds of funds for which Fidelity serves as investment
manager will be treated as received by the fund at the same time that the
corresponding orders are received in proper form by the funds of
funds.
See
"Policies Concerning the Redemption of Fund Shares" below for additional
redemption information.
When
you place an order to sell shares, note the following:
- Redemptions
may be suspended or payment dates postponed when the NYSE is closed (other
than weekends or holidays), when trading on the NYSE is restricted, or as
permitted by the SEC.
- Redemption
proceeds may be paid in securities or other property rather than in cash if
the Adviser determines it is in the best interests of the fund.
- Under
applicable anti-money laundering rules and other regulations, redemption
requests may be suspended, restricted, canceled, or processed and the proceeds
may be withheld.
Policies
Concerning the Redemption of Fund Shares
If
your account is held directly with a fund,
the length of time that a fund typically expects to pay redemption proceeds
depends on the method you have elected to receive such proceeds. A fund
typically expects to make payment of redemption proceeds by wire, automated
clearing house (ACH) or by issuing a check by the next business day following
receipt of a redemption order in proper form. Proceeds from the periodic and
automatic sale of shares of a Fidelity®
money
market fund that are used to buy shares of another Fidelity®
fund
are settled simultaneously.
If
your account is held through an intermediary,
the length of time that a fund typically expects to pay redemption proceeds
depends, in part, on the terms of the agreement in place between the
intermediary and a fund. For redemption proceeds that are paid either directly
to you from a fund or to your intermediary for transmittal to you, a fund
typically expects to make payments by wire, by ACH or by issuing a check on the
next business day following receipt of a redemption order in proper form from
the intermediary by a fund. Redemption orders that are processed through
investment professionals that utilize the National Securities Clearing
Corporation will generally settle one to three business days following receipt
of a redemption order in proper form.
As
noted elsewhere, payment of redemption proceeds may take longer than the time a
fund typically expects and may take up to seven days from the date of receipt of
the redemption order as permitted by applicable law.
Redemption
Methods Available. Generally
a fund expects to pay redemption proceeds in cash. To do so, a fund typically
expects to satisfy redemption requests either by using available cash (or cash
equivalents) or by selling portfolio securities. On a less regular basis, a fund
may also satisfy redemption requests by utilizing one or more of the following
sources, if permitted: borrowing from another Fidelity®
fund;
drawing on an available line or lines of credit from a bank or banks; or using
reverse repurchase agreements. These methods may be used during both normal and
stressed market conditions.
In
addition to paying redemption proceeds in cash, a fund reserves the right to pay
part or all of your redemption proceeds in readily marketable securities instead
of cash (redemption in-kind). Redemption in-kind proceeds will typically be made
by delivering the selected securities to the redeeming shareholder within seven
days after the receipt of the redemption order in proper form by a
fund.
Fidelity
will send monthly account statements detailing fund balances and all
transactions completed during the prior month.
You
may be asked to provide additional information in order for Fidelity to verify
your identity in accordance with requirements under anti-money laundering
regulations. Accounts may be restricted and/or closed, and the monies withheld,
pending verification of this information or as otherwise required under these
and other federal regulations.
Dividends
and Capital Gain Distributions
The
fund earns interest, dividends, and other income from its investments, and
distributes this income (less expenses) to shareholders as dividends. The fund
also realizes capital gains from its investments, and distributes these gains
(less any losses) to shareholders as capital gain distributions.
The
fund normally declares dividends and pays capital gain distributions per the
tables below:
|
Fund
Name |
|
Dividends
Paid |
|
Fidelity®
Series Floating Rate High Income Fund |
|
Declares
daily and pays monthly |
|
Fund
Name |
|
Capital
Gains Paid |
|
Fidelity®
Series Floating Rate High Income Fund |
|
December |
Earning
Dividends
The
fund processes purchase and redemption requests only on days it is open for
business.
Shares
generally begin to earn dividends on the first business day following the day of
purchase.
Shares
generally earn dividends until, but not including, the next business day
following the day of redemption.
Any
dividends and capital gain distributions may be reinvested in additional shares
or paid in cash.
As
with any investment, your investment in the fund could have tax consequences for
you (for non-retirement accounts).
Taxes
on Distributions
Distributions
you receive from the fund are subject to federal income tax, and may also be
subject to state or local taxes.
For
federal tax purposes, certain distributions, including dividends and
distributions of short-term capital gains, are taxable to you as ordinary
income, while certain distributions, including distributions of long-term
capital gains, are taxable to you generally as capital gains. Because the fund's
income is primarily derived from interest, dividends from the fund generally
will not qualify for the long-term capital gains tax rates available to
individuals.
If
you buy shares when a fund has realized but not yet distributed income or
capital gains, you will be "buying a dividend" by paying the full price for the
shares and then receiving a portion of the price back in the form of a taxable
distribution.
Any
taxable distributions you receive from the fund will normally be taxable to you
when you receive them; however, you will receive certain December distributions
in January, but those distributions will be taxable as if you received them on
December 31.
Taxes
on Transactions
Your
redemptions may result in a capital gain or loss for federal tax purposes. A
capital gain or loss on your investment in the fund generally is the difference
between the cost of your shares and the price you receive when you sell
them.
Fund
Services
The
fund is a mutual fund, an investment that pools shareholders' money and invests
it toward a specified goal.
Adviser
FMR.
The
Adviser is the fund's manager. The address of the Adviser is 245 Summer Street,
Boston, Massachusetts 02210.
As
of December 31, 2022, the Adviser had approximately $3.1 trillion in
discretionary assets under management, and approximately $3.9 trillion when
combined with all of its affiliates' assets under management.
As
the manager, the Adviser has overall responsibility for directing the fund's
investments and handling its business affairs.
Sub-Adviser(s)
FMR
Investment Management (UK) Limited (FMR UK),
at 1 St. Martin's Le Grand, London, EC1A 4AS, United Kingdom, serves as a
sub-adviser for the fund. As of December 31, 2022, FMR UK had approximately
$14.7 billion in discretionary assets under management. FMR UK is an affiliate
of the Adviser.
FMR
UK may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Fidelity
Management & Research (Hong Kong) Limited (FMR H.K.),
at Floor 19, 41 Connaught Road Central, Hong Kong, serves as a sub-adviser for
the fund. As of December 31, 2022, FMR H.K. had approximately $21.4 billion in
discretionary assets under management. FMR H.K. is an affiliate of the
Adviser.
FMR
H.K. may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Fidelity
Management & Research (Japan) Limited (FMR Japan),
at Kamiyacho Prime Place, 1-17, Toranomon-4-Chome, Minato-ku, Tokyo, Japan,
serves as a sub-adviser for the fund. As of March 31, 2023, FMR Japan had
approximately $2.9 billion in discretionary assets under management. FMR Japan
is an affiliate of the Adviser.
FMR
Japan may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Portfolio
Manager(s)
Eric
Mollenhauer is Co-Portfolio Manager of Fidelity®
Series Floating Rate High Income Fund, which he has managed since 2011. He also
manages other funds. Since joining Fidelity Investments in 1993, Mr. Mollenhauer
has worked as a sales representative, research analyst, director of High Yield
Research, and portfolio manager.
Kevin
Nielsen is Co-Portfolio Manager of Fidelity®
Series Floating Rate High Income Fund, which he has managed since 2018. He also
manages other funds. Since joining Fidelity Investments in 2006, Mr. Nielsen has
worked as a research analyst and portfolio manager.
Chandler
Perine is Co-Portfolio Manager of Fidelity®
Series Floating Rate High Income Fund, which he has managed since 2022. He also
manages other funds. Since joining Fidelity Investments in 2008, Mr. Perine has
worked as a research analyst and portfolio manager.
The
Statement of Additional Information (SAI) provides additional information about
the compensation of, any other accounts managed by, and any fund shares held by
the portfolio manager(s).
From
time to time a manager, analyst, or other Fidelity employee may express views
regarding a particular company, security, industry, or market sector. The views
expressed by any such person are the views of only that individual as of the
time expressed and do not necessarily represent the views of Fidelity or any
other person in the Fidelity organization. Any such views are subject to change
at any time based upon market or other conditions and Fidelity disclaims any
responsibility to update such views. These views may not be relied on as
investment advice and, because investment decisions for a fund are based on
numerous factors, may not be relied on as an indication of trading intent on
behalf of any fund.
Advisory
Fee(s)
The
fund does not pay a management fee to the Adviser.
The
Adviser receives no fee from the fund for handling the business affairs of the
fund and pays the expenses of the fund with certain exceptions.
The
Adviser or an affiliate pays FMR UK, FMR H.K., and FMR Japan for providing
sub-advisory services.
The
basis for the Board of Trustees approving the management contract and
sub-advisory agreements for the fund is available in the fund's annual report
for the fiscal period ended September 30, 2023.
From
time to time, the Adviser or its affiliates may agree to reimburse or waive
certain fund expenses while retaining the ability to be repaid if expenses fall
below the specified limit prior to the end of the fiscal year.
Reimbursement
or waiver arrangements can decrease expenses and boost performance.
Distribution
and Service Plan(s)
The
fund has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under
the Investment Company Act of 1940 (1940 Act) with respect to its shares that
recognizes that the Adviser may use its management fee revenues, as well as its
past profits or its resources from any other source, to pay FDC for expenses
incurred in connection with providing services intended to result in the sale of
shares of the fund and/or shareholder support services. The Adviser, directly or
through FDC, may pay significant amounts to intermediaries that provide those
services. Currently, the Board of Trustees of the fund has authorized such
payments for shares of the fund.
If
payments made by the Adviser to FDC or to intermediaries under the Distribution
and Service Plan were considered to be paid out of the fund's assets on an
ongoing basis, they might increase the cost of your investment and might cost
you more than paying other types of sales charges.
No
dealer, sales representative, or any other person has been authorized to give
any information or to make any representations, other than those contained in
this prospectus and in the related SAI, in connection with the offer contained
in this prospectus. If given or made, such other information or representations
must not be relied upon as having been authorized by the fund or FDC. This
prospectus and the related SAI do not constitute an offer by the fund or by FDC
to sell shares of the fund to, or to buy shares of the fund from, any person to
whom it is unlawful to make such offer.
Appendix
Financial
Highlights are intended to help you understand the financial history of fund
shares for the past 5 years (or, if shorter, the period of operations). Certain
information reflects financial results for a single share. The total returns in
the table represent the rate that an investor would have earned (or lost) on an
investment in shares (assuming reinvestment of all dividends and distributions).
The annual information has been audited by Deloitte & Touche LLP,
independent registered public accounting firm, whose report, along with
fund financial statements, is included in the annual report. Annual reports are
available for free upon request.
|
Fidelity®
Series Floating Rate High Income Fund |
|
|
|
Years
ended September 30, |
|
2023
|
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
Selected
Per-Share Data |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of period |
$ |
8.70 |
$ |
9.30 |
$ |
8.86 |
$ |
9.29 |
$ |
9.52 |
|
Income
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) A,B |
|
.777
|
|
.457
|
|
.388
|
|
.463
|
|
.547
|
|
Net
realized and unrealized gain (loss) |
|
.328
|
|
(.607)
|
|
.435
|
|
(.439)
|
|
(.131)
|
|
Total
from investment operations |
|
1.105
|
|
(.150)
|
|
.823
|
|
.024
|
|
.416
|
|
Distributions
from net investment income |
|
(.775)
|
|
(.450)
|
|
(.383)
|
|
(.454)
|
|
(.646)
|
|
Total
distributions |
|
(.775)
|
|
(.450)
|
|
(.383)
|
|
(.454)
|
|
(.646)
|
|
Net
asset value, end of period |
$ |
9.03 |
$ |
8.70 |
$ |
9.30 |
$ |
8.86 |
$ |
9.29 |
|
Total
Return C |
|
13.20%
|
|
(1.69)%
|
|
9.44%
|
|
.37%
|
|
4.61%
|
|
Ratios
to Average Net Assets B,D,E |
|
|
|
|
|
|
|
|
|
|
|
Expenses
before reductions |
|
.03%
|
|
.03%
|
|
.01%
|
|
.01%
|
|
.01%
|
|
Expenses
net of fee waivers, if any |
|
-%
F |
|
-%
F |
|
-%
F |
|
.01%
|
|
.01%
|
|
Expenses
net of all reductions |
|
-%
F |
|
-%
F |
|
-%
F |
|
.01%
|
|
.01%
|
|
Net
investment income (loss) |
|
8.74%
|
|
5.02%
|
|
4.24%
|
|
5.22%
|
|
5.87%
|
|
Supplemental
Data |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$ |
224,717 |
$ |
217,347 |
$ |
285,534 |
$ |
269,060 |
$ |
264,583 |
|
Portfolio
turnover rate G |
|
30%
|
|
28%
|
|
45%
|
|
37%
|
|
33%
|
ACalculated
based on average shares outstanding during the period.
BNet
investment income (loss) is affected by the timing of the declaration of
dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net
investment income (loss) of any mutual funds or ETFs is not included in the
Fund's net investment income (loss) ratio.
CTotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
DFees
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.
EExpense
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.
FAmount
represents less than .005%.
GAmount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
Additional
Index Information
Morningstar®
LSTA®
US Performing Loans is
a market value-weighted index designed to represent the performance of U.S.
dollar-denominated institutional leveraged performing loan portfolios (excluding
loans in payment default) using current market weightings, spreads, and interest
payments.
|
IMPORTANT
INFORMATION ABOUT OPENING A NEW ACCOUNT |
|
To
help the government fight the funding of terrorism and money laundering
activities, the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA
PATRIOT ACT), requires all financial institutions to obtain, verify, and
record information that identifies each person or entity that opens an
account.
For
investors other than individuals:
When you open an account, you will be asked for the name of the entity,
its principal place of business and taxpayer identification number (TIN).
You will be asked to provide information about the entity's control person
and beneficial owners, and person(s) with authority over the account,
including name, address, date of birth and social security number. You may
also be asked to provide documents, such as drivers' licenses, articles of
incorporation, trust instruments or partnership agreements and other
information that will help Fidelity identify the
entity. |
You
can obtain additional information about the fund. A description of the fund's
policies and procedures for disclosing its holdings is available in its
Statement of Additional Information (SAI) and on Fidelity's web sites. The SAI
also includes more detailed information about the fund and its investments. The
SAI is incorporated herein by reference (legally forms a part of the
prospectus). The fund's annual and semi-annual reports also include additional
information. The fund's annual report includes a discussion of the fund's
holdings and recent market conditions and the fund's investment strategies that
affected performance.
For
a free copy of any of these documents or to request other information or ask
questions about the fund, call Fidelity at 1-800-544-8544. In addition, you may
visit Fidelity's web site at www.fidelity.com for a free copy of a prospectus,
SAI, or annual or semi-annual report or to request other
information.
The
SAI, the fund's annual and semi-annual reports and other related materials
are available from the Electronic Data Gathering, Analysis, and Retrieval
(EDGAR) Database on the SEC's web site (http://www.sec.gov). You can
obtain copies of this information, after paying a duplicating fee, by
sending a request by e-mail to [email protected] or by writing the Public
Reference Section of the SEC, Washington, D.C. 20549-1520. You can also
review and copy information about the fund, including the fund's SAI, at
the SEC's Public Reference Room in Washington, D.C. Call 1-202-551-8090
for information on the operation of the SEC's Public Reference
Room. |
|
Investment
Company Act of 1940, File Number(s), 811-02737 |
Fidelity
Distributors Company LLC (FDC) is a member of the Securities Investor Protection
Corporation (SIPC). You may obtain information about SIPC, including the SIPC
brochure, by visiting www.sipc.org or calling SIPC at 202-371-8300.
Fidelity,
the Fidelity Investments Logo and all other Fidelity trademarks or service marks
used herein are trademarks or service marks of FMR LLC. Any third-party marks
that are used herein are trademarks or service marks of their respective owners.
© 2023 FMR LLC. All rights reserved.
|
1.924287.114 |
SFR-PRO-1123 |
