Fidelity International Concentrated Equity Fund

Transcription

1 Fidelity International Concentrated Equity Fund Annual Management Report of Fund Performance March 31, 218

2 Caution Regarding Forward-looking Statements Certain portions of this report, including, but not limited to, Results of Operations and Recent Developments, may contain forward-looking statements about the Fund, including its strategy, risks, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as expects, anticipates, intends, plans, believes, estimates and similar forward-looking expressions or negative versions thereof. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. It should be stressed that the above-mentioned list of important factors is not exhaustive. You are encouraged to consider these and other factors carefully before making any investment decisions and you are urged to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance.

3 Annual Management Report of Fund Performance as at March 31, 218 Fidelity International Concentrated Equity Fund This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund. Management Discussion of Fund Performance Investment Objective and Strategies Investment Objective: Fidelity International Concentrated Equity Fund (Fund) aims to achieve long-term capital growth by investing in equity securities of companies located outside of the U.S. Strategies: When buying and selling securities for the Fund, the portfolio manager relies on fundamental analysis of each issuer and examines each company s potential for success in light of its current financial condition, earnings estimates, quality of management and industry position, as well as economic and market conditions. The portfolio manager aims to favour companies that show potential for above-average earnings or growth. The Fund may invest in small, medium and large companies, may hold cash and may invest in fixed-income securities. Risk The risks associated with investing in this Fund remain as discussed in the prospectus. Any changes in the Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors who wish to gain foreign equity exposure outside the U.S., can handle the volatility of returns generally associated with equity investments and are willing to accept a medium level of risk. The suitability of the Fund has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity International Concentrated Equity Fund, Series B, returned 13.7%, after fees and expenses, for the one-year period ended March 31, 218. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. Global equities, as broadly measured by the MSCI World Index, returned 9.8%, in Canadian dollar terms, during the review period. Market overview: Global equities, as measured by the MSCI World Index, advanced 9.8% in Canadian dollar terms over the one-year period ended March 31, 218. Global equities registered positive returns during the review period supported by strengthening economic and corporate data across the world. Towards the end of the review period, markets experienced higher volatility as heightened concerns of a potential global trade war, and faster interest rate hikes by the U.S. Federal Reserve (Fed), negatively impacted investor sentiment. The Fed increased the target federal funds rate three times during the review period against the backdrop of continued strength in the U.S. economy. U.S. equities registered healthy gains due to strong corporate earnings as deregulation and tax reforms fuelled business optimism. Canadian equities were weighed down by uncertainty over NAFTA renegotiation and high consumer-debt levels. European equities gained on economic recovery in the region and an accommodative monetary policy. However, the U.K. underperformed amid uncertainty around Brexit negotiations. Asian markets registered gains amid healthy economic data releases in China, as well as investor optimism towards global economic growth. Factors affecting performance: The Fund s current benchmark returned 13.7% for the one-year period under review. The Fund s current benchmark is the MSCI EAFE + Emerging Markets Index. Before July 1, 217, the Fund s benchmark was the MSCI EAFE Index. The Fund outperformed its benchmark, primarily due to exposures to certain stocks in the industrials and utilities sectors. In the industrials sector, investments in Sweden-based capital goods firm Indutrade and France-based capital goods firm Safran contributed to relative performance. Exposure to certain stocks in the utilities sector also contributed to relative returns, with China-based utilities firm ENN Energy Holdings making the primary contribution. Among other sectors, China-based online retailer Vipshop Holdings, Sweden-based online savings and investment solutions provider Avanza Bank and Japan-based electronic component manufacturer Tamura contributed to relative returns. At the end of the review period, the Fund had no exposure to Indutrade. In contrast, exposure to certain stocks in the consumer discretionary sectors and a lack of exposure to the energy sector detracted from relative performance. In the consumer discretionary sector, exposure to Australia-based child care centre operator G8 Education detracted from relative returns. Among other sectors, investments in Switzerland-based food, beverage and tobacco firm Aryzta, Mexico-based infrastructure company Promotora y Operadora de Infraestructura SAB and Hong Kong-based food and staples retailing firm Dairy Farm International detracted from performance. Portfolio changes: During the review period, portfolio manager Patrice Quirion increased the Fund s exposure to the consumer discretionary and information technology sectors. In the consumer discretionary sector, the Fund initiated positions in Denmark-based jewellery manufacturer and retailer Pandora. Mr. Quirion believes that Pandora has a strong cost advantage, an economic scale of production and a unique franchise model. The Fund also initiated positions in Brazil-based private education provider Kroton Educacional; the portfolio manager believes the company is well positioned to increase market share, and that it is attractively valued due to short-term headwinds. In the information technology sector, a position was initiated in Japan-based electronic component manufacturer Tamura; the portfolio manager believes the company has the potential to benefit from increasing demand for electric vehicles, even though its products are currently mostly used for other industrial products. 1

4 Fidelity International Concentrated Equity Fund Management Discussion of Fund Performance continued In contrast, exposures were reduced to the industrials and consumer staples sectors. In the industrials sector, the position in Sweden-based capital goods firm Indutrade was exited after the portfolio manager opted to invest in other opportunities with relatively more attractive risk/reward characteristics. In the consumer staples sector, a position in China-based alcoholic beverage company Wuliangye Yibin was exited. The stock price had appreciated significantly, and the portfolio manager believed the valuation appeared extended. Recent Developments Portfolio manager Patrice Quirion continues to take a long-term approach to investing, focusing on companies that have sustainable quality and that are growing steadily and predictably, with limited cyclicality. He is generally cautious on commodity-related firms, where there are significant factors outside management s control. The portfolio manager is focusing on global leaders, multinationals and high-quality companies that can deliver good returns over the long term. He is also looking for companies that have characteristics similar to those of big leading multinationals, but are global leaders in niche areas. More recently, Mr. Quirion has been taking a closer look at U.K.-listed companies with significant international exposure; he believes many of these companies are trading at attractive valuations as the U.K. begins to see some signs of pressure on the economy. As at March 31, 218, the Fund s largest absolute exposure was to the consumer discretionary sector, followed by the industrials sector. The Fund also held larger-than-benchmark exposures to the consumer discretionary and industrials sectors. In contrast, the Fund held lower-than-benchmark exposures to the energy and real estate sectors. Geographically, the U.K. accounted for the largest absolute exposure, followed by Japan and France. Effective July 1, 217, the benchmark index for Fidelity International Concentrated Equity Fund was changed from the MSCI EAFE Index to the MSCI EAFE + Emerging Markets Index. The purpose of this change was to better reflect the investment universe by including emerging markets, which form a portion of the MSCI EAFE + Emerging Markets Index. Effective October 27, 217, the risk rating for the Fund was changed from medium to high risk to medium risk. The objective and strategies of the Fund remain the same. Fidelity regularly reviews the risk classification of its funds and occasionally makes changes based on a methodology that incorporates both quantitative and qualitative considerations. Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader collection of companies collectively known as Fidelity Investments. Fidelity provides or arranges for the provision of all general management and administrative services required by the Fund in its day to day operations, bookkeeping, record keeping and other administrative services for the Fund. Fidelity is the portfolio adviser to the Fund and it provides investment advisory services to the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity (Canada) Asset Management ULC, to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $1,231, for the period ended March 31, 218. Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges). The Fund pays an annual rate, which is calculated on a tiered basis, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $191, for the period ended March 31, 218. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity, provided it determines that these affiliates trade execution abilities and costs are comparable to those of non affiliated, qualified brokerage firms, on an execution only basis. Commissions paid to brokerage firms that are affiliates of Fidelity Investments were less than $5 for the period ended March 31, 218. Fidelity receives standing instructions from the IRC in respect of policies and procedures governing best execution of transactions with affiliates, which includes brokers affiliated to Fidelity Investments, at least once per year. 2

5 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the period end of the years shown. This information is derived from the Fund s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund s annual or semi-annual financial statements. Fidelity International Concentrated Equity Fund Series A Periods ended March 31, Net assets, beginning of period B $.44 $ 9.14 $.42 $ 9.63 $ 7.5 Total revenue Total expenses (excluding distributions) (.36) (.18) (.31) (.32) (.28) Realized gains (losses).78 (.11) Unrealized gains (losses) (1.75) (.2) 1.3 Total increase (decrease) from operations B (1.18) From net investment income (excluding dividends) (.7) (.11) (.2) From dividends From capital gains Return of capital Total distributions B,C (.7) (.11) (.2) Net assets, end of period B $ $.44 $ 9.14 $.42 $ 9.63 Net asset value (s) D $ 3,2 $ 2,242 $ 2,35 $ 2,889 $ 3,72 Securities outstanding D 2,56, , , , ,875 Management expense ratio E,F 2.54% 2.58% 2.6% 2.64% 2.66% Management expense ratio before waivers or absorptions E,F 2.6% 2.62% 2.66% 2.67% 2.66% Trading expense ratio G.48%.34%.17%.33%.39% Portfolio turnover rate H 54.23% 98.64% 7.31% 3.52% 93.5% Net asset value per security, end of period $ $.443 $ $.4173 $ Fidelity International Concentrated Equity Fund Series B Periods ended March 31, Net assets, beginning of period B $.49 $ 9.17 $.44 $ 9.65 $ 7.51 Total revenue Total expenses (excluding distributions) (.32) (.) (.28) (.3) (.27) Realized gains (losses).8 (.17) Unrealized gains (losses) (1.78) Total increase (decrease) from operations B (1.21) From net investment income (excluding dividends) (.) (.13) (.4) From dividends From capital gains Return of capital Total distributions B,C (.) (.13) (.4) Net assets, end of period B $ $.49 $ 9.17 $.44 $ 9.65 Net asset value (s) D $ 47,537 $ 6,434 $ 5,613 $ 6,922 $ 7,13 Securities outstanding D 3,996, , ,81 661, ,611 Management expense ratio E,F 2.31% 2.36% 2.38% 2.42% 2.43% Management expense ratio before waivers or absorptions E,F 2.37% 2.39% 2.42% 2.43% 2.43% Trading expense ratio G.48%.34%.17%.33%.39% Portfolio turnover rate H 54.23% 98.64% 7.31% 3.52% 93.5% Net asset value per security, end of period $ $.4913 $ $.4433 $

6 Financial Highlights continued Fidelity International Concentrated Equity Fund Series F Periods ended March 31, Net assets, beginning of period B $.61 $ 9.25 $.54 $ 9.74 $ 7.58 Total revenue Total expenses (excluding distributions) (.2) (.48) (.17) (.18) (.16) Realized gains (losses) Unrealized gains (losses) (1.68) Total increase (decrease) from operations B (1.) From net investment income (excluding dividends) (.9) (.22) (.24) (.15) From dividends From capital gains Return of capital Total distributions B,C (.9) (.22) (.24) (.15) Net assets, end of period B $ $.61 $ 9.25 $.54 $ 9.74 Net asset value (s) D $ 57,444 $ 7,23 $ 1,122 $ 1,294 $ 563 Securities outstanding D 4,699, ,156 12, ,741 59,749 Management expense ratio E,I 1.19% 1.23% 1.24% 1.2% 1.18% Management expense ratio before waivers or absorptions E,I 1.21% 1.23% 1.24% 1.2% 1.18% Trading expense ratio G.48%.34%.17%.33%.39% Portfolio turnover rate H 54.23% 98.64% 7.31% 3.52% 93.5% Net asset value per security, end of period $ $.692 $ $.5413 $ Fidelity International Concentrated Equity Fund Series O Periods ended March 31, Net assets, beginning of period B $.72 $ 9.35 $.66 $ 9.85 $ 7.67 Total revenue Total expenses (excluding distributions) (.).5 (.5) (.6) (.5) Realized gains (losses) 1.2 (.) Unrealized gains (losses) (.89) 1.4 (1.77) Total increase (decrease) from operations B (.97) From net investment income (excluding dividends) (.21) (.36) (.36) (.27) From dividends From capital gains Return of capital Total distributions B,C (.21) (.36) (.36) (.27) Net assets, end of period B $ $.72 $ 9.35 $.66 $ 9.85 Net asset value (s) D $ 9,286 $ 1 $ 1 $ 1 $ 2 Securities outstanding D 744, Management expense ratio % % % % % Management expense ratio before waivers or absorptions % % % % % Trading expense ratio G.48%.34%.17%.33%.39% Portfolio turnover rate H 54.23% 98.64% 7.31% 3.52% 93.5% Net asset value per security, end of period $ $.717 $ $.6557 $

7 Fidelity International Concentrated Equity Fund Series E1 Periods ended March 31, J Net assets, beginning of period B $ $ 9.97 $. Total revenue Total expenses (excluding distributions) (.35) (.44) (.4) Realized gains (losses) (.3) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ 9.97 Net asset value (s) D $ 13,688 $ 7 $ 383 Securities outstanding D 1,52,97 62,179 38,449 Management expense ratio E,K 2.22% 2.27% 2.3% Management expense ratio before waivers or absorptions E,K 2.28% 2.3% 2.34% Trading expense ratio G.48%.34%.17% Portfolio turnover rate H 54.23% 98.64% 7.31% Net asset value per security, end of period $ 13.3 $ $ Fidelity International Concentrated Equity Fund Series E2 Periods ended March 31, J Net assets, beginning of period B $ $ 9.98 $. Total revenue Total expenses (excluding distributions) (.36) (.18) (.4) Realized gains (losses) 1.2 (.8) (.1) Unrealized gains (losses) (.13) Total increase (decrease) from operations B (.12) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ 9.98 Net asset value (s) D $ 3,7 $ 6 $ 34 Securities outstanding D 284,841 9,312 3,421 Management expense ratio E,K 2.2% 2.28% 2.24% Management expense ratio before waivers or absorptions E,K 2.27% 2.31% 2.29% Trading expense ratio G.48%.34%.17% Portfolio turnover rate H 54.23% 98.64% 7.31% Net asset value per security, end of period $ $ $

8 Financial Highlights continued Fidelity International Concentrated Equity Fund Series E3 Periods ended March 31, J Net assets, beginning of period B $ $ 9.98 $. Total revenue Total expenses (excluding distributions) (.34) (.89) (.4) Realized gains (losses).91.8 (.3) Unrealized gains (losses) (.1) Total increase (decrease) from operations B (.2) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ 9.98 Net asset value (s) D $ 631 $ 11 $ 1 Securities outstanding D 48, Management expense ratio E,K 2.14% 2.18% 2.8% Management expense ratio before waivers or absorptions E,K 2.21% 2.25% 2.5% Trading expense ratio G.48%.34%.17% Portfolio turnover rate H 54.23% 98.64% 7.31% Net asset value per security, end of period $ $ $ Fidelity International Concentrated Equity Fund Series E4 Periods ended March 31, 218 L Net assets, beginning of period B $. Total revenue.13 Total expenses (excluding distributions) (.21) Realized gains (losses).11 Unrealized gains (losses) (.16) Total increase (decrease) from operations B (.13) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ Net asset value (s) D $ 113 Securities outstanding D,135 Management expense ratio E,M 2.9% Management expense ratio before waivers or absorptions E,M 2.15% Trading expense ratio G.48% Portfolio turnover rate H 54.23% Net asset value per security, end of period $

9 Fidelity International Concentrated Equity Fund Series E5 Periods ended March 31, 218 N Net assets, beginning of period B $. Total revenue.8 Total expenses (excluding distributions) (.15) Realized gains (losses).51 Unrealized gains (losses).56 Total increase (decrease) from operations B 1. From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 11.3 Net asset value (s) D $ 1,479 Securities outstanding D 133,65 Management expense ratio E,O 2.2% Management expense ratio before waivers or absorptions E,O 2.9% Trading expense ratio G.48% Portfolio turnover rate H 54.23% Net asset value per security, end of period $ Fidelity International Concentrated Equity Fund Series P1 Periods ended March 31, P Net assets, beginning of period B $.26 $ 8.95 $. Total revenue Total expenses (excluding distributions) (.19) (.43) (.5) Realized gains (losses) (.1) Unrealized gains (losses) (.73) Total increase (decrease) from operations B (.7) From net investment income (excluding dividends) (.9) (.21) From dividends From capital gains Return of capital Total distributions B,C (.9) (.21) Net assets, end of period B $ $.26 $ 8.95 Net asset value (s) D $ 12,882 $ 513 $ 141 Securities outstanding D 1,113,254 54,3 15,747 Management expense ratio E,Q 1.% 1.13% 1.16% Management expense ratio before waivers or absorptions E,Q 1.12% 1.13% 1.16% Trading expense ratio G.48%.34%.17% Portfolio turnover rate H 54.23% 98.64% 7.31% Net asset value per security, end of period $ $.2629 $

10 Financial Highlights continued Fidelity International Concentrated Equity Fund Series P2 Periods ended March 31, R Net assets, beginning of period B $.99 $. Total revenue.21.4 Total expenses (excluding distributions) (.19) (.16) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $.99 Net asset value (s) D $ 4,428 $ 148 Securities outstanding D 35,156 13,469 Management expense ratio E,S 1.3% 1.1% Management expense ratio before waivers or absorptions E,S 1.5% 1.1% Trading expense ratio G.48%.34% Portfolio turnover rate H 54.23% 98.64% Net asset value per security, end of period $ $.9844 Fidelity International Concentrated Equity Fund Series P3 Periods ended March 31, R Net assets, beginning of period B $.99 $. Total revenue.21.4 Total expenses (excluding distributions) (.19) (.15) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $.99 Net asset value (s) D $ 3,399 $ 1 Securities outstanding D 268,433 Management expense ratio E,S.97%.79% Management expense ratio before waivers or absorptions E,S.99%.79% Trading expense ratio G.48%.34% Portfolio turnover rate H 54.23% 98.64% Net asset value per security, end of period $ $

11 Fidelity International Concentrated Equity Fund Series P4 Periods ended March 31, 218 N Net assets, beginning of period B $. Total revenue.15 Total expenses (excluding distributions) (.) Realized gains (losses).58 Unrealized gains (losses) (.25) Total increase (decrease) from operations B.38 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 11. Net asset value (s) D $ 1,9 Securities outstanding D 97,994 Management expense ratio E,O.93% Management expense ratio before waivers or absorptions E,O.95% Trading expense ratio G.48% Portfolio turnover rate H 54.23% Net asset value per security, end of period $ Fidelity International Concentrated Equity Fund Series P5 Periods ended March 31, 218 N Net assets, beginning of period B $. Total revenue.5 Total expenses (excluding distributions) (.7) Realized gains (losses).34 Unrealized gains (losses) 1.19 Total increase (decrease) from operations B 1.51 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ Net asset value (s) D $ 1 Securities outstanding D Management expense ratio E,O.89% Management expense ratio before waivers or absorptions E,O.91% Trading expense ratio G.48% Portfolio turnover rate H 54.23% Net asset value per security, end of period $

12 Financial Highlights continued Financial Highlights Footnotes A This information is derived from the Fund s audited annual and/or unaudited interim financial statements. The net assets attributable to securityholders per security presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. An explanation of these differences can be found in the notes to financial statements. For reporting periods ending after January 1, 217 per security comparative figures (except for net asset value per security, end of period) have been conformed to the current rounding presentation of two decimal places. As a result, reporting periods ending prior to January 1, 217 may not foot due to this rounding change. B Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of securities outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per security. C Distributions were paid in cash or reinvested in additional securities of the Fund, or both, and excludes any applicable distributions of management fee reduction to securityholders. Distributions are presented based on management s best estimate of the tax character. D This information is provided as at period end of the year shown. E Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset values during the period, including the Fund s pro-rata share of estimated expenses incurred in any underlying investment fund, if applicable. F Effective November 1, 214, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. G The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period, including the Fund s pro-rata share of estimated trading costs incurred in any underlying investment fund, if applicable. H The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher the Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high portfolio turnover rate and the performance of the Fund. The portfolio turnover rate is calculated based on the lesser of purchases or sales of securities divided by the weighted average market value of the portfolio securities, excluding short-term securities. For periods greater than six months, but less than a full fiscal year, the portfolio turnover rate is annualized. I Effective October 1, 215, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. J For the period February 5, 216 (commencement of sale of securities) to March 31, 216. K Effective February 9, 216, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. L For the period April 21, 217 (commencement of sale of securities) to March 31, 218. M Effective April 25, 217, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. N For the period September 22, 217 (commencement of sale of securities) to March 31, 218. O Effective September 26, 217, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. P For the period December 4, 215 (commencement of sale of securities) to March 31, 216. Q Effective December 8, 215, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. R For the period January 6, 217 (commencement of sale of securities) to March 31, 217. S Effective January, 217, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated.

13 Management and Advisory Fees Fidelity serves as manager and investment advisor of the Fund. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for the general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed % of the fees earned by Fidelity during the period. For new Funds or Series the amounts presented may not be indicative of longer term operating periods. Management Fees Dealer Compensation Investment management, administration and other Series A 2.% 14.12% -4.12% Series B 1.85% 54.5% 45.95% Series F.85%.% Series E % 54.79% 45.21% Series E2 1.8% 55.56% 44.44% Series E % 56.34% 43.66% Series E % 57.97% 42.3% Series E % 59.7% 4.3% Series P1.825%.% Series P2.8%.% Series P3.775%.% Series P4.725%.% Series P5.675%.% 11

14 Fidelity International Concentrated Equity Fund Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. The performance data shown for the period occurring prior to the commencement of operations of a series P or E is that of the corresponding series F or F5 (for series P) or B or S5 (for series E). Series F, F5, B and S5 have higher combined management and administration fees than the applicable series P and E. Had a series P or E existed since the commencement of operations of series F, F5, B or S5, the returns of the applicable series P or E would have been higher. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. Series A Series O Series B Series E Series F Commencement of Operations is February 5, Series E Commencement of Operations is February 5,

15 Series E3 Series P Commencement of Operations is February 5, 216 Series E4 Commencement of Operations is January 6, 217 Series P Commencement of Operations is April 21, 217 Series E5 Commencement of Operations is January 6, 217 Series P Commencement of Operations is September 22, 217 Series P1 Commencement of Operations is September 22, 217 Series P Commencement of Operations is December 4, 215 Commencement of Operations is September 22,

16 Fidelity International Concentrated Equity Fund Past Performance continued Annual Compound Returns This table shows the Fund s historical annual compound total returns for the periods indicated, compared with a broad-based benchmark, the MSCI World Index, and the Fund s benchmark, the MSCI EAFE + Emerging Markets Index. Total fund returns are calculated through the last business day of the period on which Canadian markets were open, which was March 29, 218. Average Annual Total Returns Fidelity International Concentrated Equity Fund Series A 13.5% 4.6%.% 3.% Fidelity International Concentrated Equity Fund Series B 13.7% 4.9%.2% 3.3% Fidelity International Concentrated Equity Fund Series F 14.9% 6.% 11.5% 4.5% Fidelity International Concentrated Equity Fund Series O 16.3% 7.3% 12.9% 5.7% Fidelity International Concentrated Equity Fund Series E1 13.8% 4.9%.3% 3.3% Fidelity International Concentrated Equity Fund Series E2 13.8% 5.%.3% 3.3% Fidelity International Concentrated Equity Fund Series E3 13.8% 5.%.3% 3.3% Fidelity International Concentrated Equity Fund Series E4 13.9% 4.9%.3% 3.3% Fidelity International Concentrated Equity Fund Series E5 13.8% 4.9%.3% 3.3% Fidelity International Concentrated Equity Fund Series P1 15.% 6.1% 11.6% 4.5% Fidelity International Concentrated Equity Fund Series P2 15.1% 6.1% 11.6% 4.5% Fidelity International Concentrated Equity Fund Series P3 15.2% 6.2% 11.6% 4.5% Fidelity International Concentrated Equity Fund Series P4 15.1% 6.1% 11.6% 4.5% Fidelity International Concentrated Equity Fund Series P5 15.2% 6.1% 11.6% 4.5% MSCI EAFE + Emerging Markets Index 13.7% 6.9% 12.2% 5.3% MSCI World Index 9.8% 8.6% 15.1% 8.3% A discussion of the performance of the Fund can be found in the Results of Operations section of this report. Effective July 1, 217, the benchmark for the Fidelity International Concentrated Equity Fund changed from the MSCI EAFE Index to the MSCI EAFE + Emerging Markets (EM) Index. The purpose of this change was to better align with the Fund s investment strategy focus. From the Fund s inception to June 3, 217, the MSCI EAFE Index was used. From July 1, 217 onwards, the Fund s current index, the MSCI EAFE + EM Index is used. The MSCI EAFE + EM Index is a free float-adjusted market capitalization weighted index designed to measure developed and emerging markets equity performance. The MSCI EAFE + EM Index is composed of companies representative of the market structure of 21 Developed Market countries and 23 Emerging Market countries. The MSCI World Index is a market capitalization weighted index composed of companies representative of the market structure of Developed Market countries in North America, Europe and the Asia/Pacific Region. Each Series will have different returns due to differences in management fees and expenses. Past 1 year Past 3 years Past 5 years Past years 14

17 Fidelity International Concentrated Equity Fund Summary of Investment Portfolio as at March 31, 218 Sector Mix % of Fund s Net Assets as at 3/31/18 % of Fund s Net Assets as at 3/31/17 Consumer Discretionary Industrials Information Technology Health Care Financials Consumer Staples Telecommunication Services Materials Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) Geographic Mix % of Fund s Net Assets as at 3/31/18 % of Fund s Net Assets as at 3/31/17 United Kingdom Japan.7.8 France Germany Cayman Islands Switzerland Sweden Australia Netherlands Luxembourg Denmark 2.6. Brazil 2.4. Taiwan Bailiwick of Jersey Korea (South) Bermuda Isle of Man Mexico India British Virgin Islands 1.3. South Africa Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) Top Issuers % of Fund s Net Assets 1. Cash and Cash Equivalents Vipshop Holdings Ltd Avanza Bank Holding AB Compass Group PLC Brenntag AG Julius Baer Group Ltd Samsonite International SA Pandora A/S Bunzl PLC 2.5. Continental AG Safran SA BT Group PLC The Weir Group PLC Kroton Educacional SA Bridgestone Corp SAP SE Advantech Co. Ltd Tamura Corp Wolseley PLC Publicis Groupe SA Olympus Corp Hyundai Mobis Dairy Farm International Holdings Ltd Meggitt PLC SCSK Corp. 2.2 Total Fund Net Assets $185,749, 69.7 The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 15

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20 Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada Toronto, Ontario Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Visit us online at or call Fidelity Client Services at Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund, Fidelity U.S. Money Market Fund or Fidelity U.S. Money Market Investment Trust will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC E FICL-FIV-MRFPA-618