Fidelity Emerging Markets Fund

Transcription

1 Fidelity Emerging Markets Fund Annual Management Report of Fund Performance March 31, 18

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, 18 Fidelity Emerging Markets 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 0, 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 Emerging Markets Fund (Fund) aims to achieve high total investment return by investing primarily in equity securities of companies in emerging market countries. Strategies: The Fund s investments are diversified across different emerging markets. When buying and selling securities for the Fund, the portfolio manager examines each company s potential for success in light of its current financial condition, industry position and economic and market conditions. The portfolio manager considers factors like growth potential, earnings estimates and quality of management. The Fund may invest in small, medium and large companies and may hold cash and invest in fixed-income securities. Risk The risks associated with investing in this Fund remain as discussed in the prospectus. Any changes to the Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors wanting to gain exposure to companies in emerging markets and who can handle the volatility generally associated with equity investments. To invest in this Fund, investors should be willing to accept a high level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity Emerging Markets Fund, Series B, returned 24.9%, after fees and expenses, for the one-year period ended March 31, 18. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. The MSCI World Index, broadly representative of global equities, returned 9.8%, in Canadian dollar terms, for the review period. Market overview: 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 fueled 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 benchmark, the MSCI Emerging Markets Index, returned 21.2% for the period under review. The Fund outperformed its benchmark, primarily due to its holdings in the consumer discretionary and financials sectors. In the consumer discretionary sector, the Fund s holdings in India-based jewellery company PC Jeweller and Brazil-based educational services company Estacio Participacoes contributed to relative performance. In the financials sector, exposures to South African bank holding company FirstRand, Brazilian reinsurance firm IRB Brasil RE and Sberbank of Russia also added to relative returns. In contrast, the Fund s holdings in the materials and real estate sectors detracted from relative performance. In materials, the Fund s exposures to D&L Industries, a Philippines-based manufacturer of industrial fats and oil, and Brazil-based mining company Vale hurt relative returns. In real estate, investments in property developer China Evergrande Group and Argentina-based shopping centre construction company Alto Palermo detracted from relative returns. At the end of the review period, the Fund did not have any exposure to these stocks. Geographically, the Fund s investments in China and India contributed to the outperformance, while higher-than-benchmark exposures to Mexico and holdings in South Korea detracted from relative returns. Portfolio changes: During the period, exposure to the financials sector was increased. Portfolio manager, Sammy Simnegar, initiated positions in China-based insurance and financial services provider Ping An Insurance and Brazil-based financial market infrastructure provider B3 SA Brasil Bolsa Balcao, owing to their attractive valuations and strong growth prospects. These companies are expected to benefit from increased demand for their products, restructuring and the greater efficiency of their balance sheets. In contrast, exposure to the consumer staples sector declined, after the portfolio manager sold off positions in India-based multi-business conglomerate ITC and Russian food retailer Magnit due to deteriorating fundamentals. Exposure was also reduced to the health care sector; the manager found more attractive investment opportunities elsewhere. At the country level, exposure to China and Japan was increased, while exposure to Mexico and the U.S. was reduced. Country-level allocations are a result of the portfolio manager s bottom-up stock selection process and are not driven by top-down macro calls. 1

4 Fidelity Emerging Markets Fund Management Discussion of Fund Performance continued Recent Developments Portfolio manager, Sammy Simnegar, continues to focus on companies with potential for growth, good management teams, dominant market share, and that operate in industries with high barriers to entry. He believes that emerging markets will remain volatile in the near term as a result of lower prices for commodities and uncertainty regarding global growth. He currently favours countries, such as India and the Philippines, which are embarking on significant structural reforms. He is also positive on Brazil, believing the economic environment is getting better with rising consumer confidence. The portfolio manager has less exposure than the benchmark to China, due to a lower-than-benchmark allocation to large state-owned enterprises (SOEs), which are run for national interest rather than for shareholders. However, he remains positive on China and believes we will continue to see mid-single-digit GDP growth and a gradual shift from fixed-asset investment to consumption-led GDP growth. Following recent volatility in 18, Mr. Simnegar plans to take advantage of market dislocations to increase the Fund s allocation to the best long-term growth structural growth stories in emerging markets such as India and cyclical growth countries such as Brazil. At the sector level, the Fund had its largest exposure to the information technology sector, followed by the financials sector. The Fund diverged most from the benchmark sector weightings by having less exposure to financials and more exposure to consumer staples. 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 FMR Co., Inc., 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 $859,000 for the period ended March 31, 18. 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 $107,000 for the period ended March 31, 18. 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 $7,000 for the period ended March 31, 18. 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 Emerging Markets Fund Series A Periods ended March 31, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.55) (.45) (.45) (.54) (.46) Realized gains (losses) 2.07 (.37) (.39) (.01).11 Unrealized gains (losses) (.99) Total increase (decrease) from operations B (1.59) 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 (000s) D $ 11,829 $ 5,722 $ 7,873 $ 11,869 $ 15,097 Securities outstanding D 605, , , ,8 1,1,986 Management expense ratio E,F 2.49% 2.54% 2.56% 2.62% 2.67% Management expense ratio before waivers or absorptions E,F 2.55% 2.58% 2.63% 2.66% 2.67% Trading expense ratio G.32%.34%.52%.65%.70% Portfolio turnover rate H 92.61% 76.67% 88.88% % % Net asset value per security, end of period $ $ $ $ $ Fidelity Emerging Markets Fund Series B Periods ended March 31, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.52) (.42) (.42) (.52) (.44) Realized gains (losses) 2.04 (.34) (.) (.03).08 Unrealized gains (losses) (.99) Total increase (decrease) from operations B (1.57) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $.06 $ $ $ $ Net asset value (000s) D $ 34,967 $ 23,037 $ 22,985 $,241 $,190 Securities outstanding D 1,741,661 1,429,447 1,647,800 1,958,279 2,216,760 Management expense ratio E,F 2.% 2.34% 2.36% 2.% 2.44% Management expense ratio before waivers or absorptions E,F 2.35% 2.38% 2.41% 2.43% 2.44% Trading expense ratio G.32%.34%.52%.65%.70% Portfolio turnover rate H 92.61% 76.67% 88.88% % % Net asset value per security, end of period $.08 $ $ $ $

6 Financial Highlights continued Fidelity Emerging Markets Fund Series F Periods ended March 31, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.37) (.) (.) (.41) (.31) Realized gains (losses) 2.59 (.37) (.47) (.03).08 Unrealized gains (losses) (1.06) Total increase (decrease) from operations B (1.55) From net investment income (excluding dividends) (.06) (.13) From dividends From capital gains Return of capital Total distributions B,C (.06) (.13) Net assets, end of period B $ $ $ $ $ Net asset value (000s) D $ 9,511 $ 2,682 $ 1,935 $ 2,349 $ 2,549 Securities outstanding D 4, , , , ,762 Management expense ratio E,F 1.18% 1.23% 1.23% 1.28% 1.31% Management expense ratio before waivers or absorptions E,F 1.% 1.25% 1.% 1.31% 1.31% Trading expense ratio G.32%.34%.52%.65%.70% Portfolio turnover rate H 92.61% 76.67% 88.88% % % Net asset value per security, end of period $ $ $ $ $ Fidelity Emerging Markets Fund Series O Periods ended March 31, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.09) (.07) (.09) (.17) (.12) Realized gains (losses) 1.91 (.28) (.49) (.15) Unrealized gains (losses) (.) Total increase (decrease) from operations B (.57) From net investment income (excluding dividends) (.27) (.27) (.15) (.07) (.10) From dividends From capital gains Return of capital Total distributions B,C (.27) (.27) (.15) (.07) (.10) Net assets, end of period B $ $ $ $ $ Net asset value (000s) D $ 1,245,8 $ 990,8 $ 619,463 $ 262,2 $ 48,3 Securities outstanding D 65,263,182 65,127,666 54,038,014 18,254,697 3,900,412 Management expense ratio % % % 1.31% % Management expense ratio before waivers or absorptions % % % 1.31% % Trading expense ratio G.32%.34%.52%.65%.70% Portfolio turnover rate H 92.61% 76.67% 88.88% % % Net asset value per security, end of period $ $ $ $ $

7 Fidelity Emerging Markets Fund Series E1 Periods ended March 31, 18 I Net assets, beginning of period B $ $ $ Total revenue Total expenses (excluding distributions) (.37) (.) (.05) Realized gains (losses) 1.58 (.19) (.08) 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 $ $ $ Net asset value (000s) D $ 6,546 $ 2,836 $ 1,371 Securities outstanding D 441, , ,755 Management expense ratio E,J 2.% 2.26% 2.28% Management expense ratio before waivers or absorptions E,J 2.26% 2.29% 2.33% Trading expense ratio G.32%.34%.52% Portfolio turnover rate H 92.61% 76.67% 88.88% Net asset value per security, end of period $ $ $ Fidelity Emerging Markets Fund Series E2 Periods ended March 31, 18 I Net assets, beginning of period B $ $ $ Total revenue Total expenses (excluding distributions) (.37) (.29) (.05) Realized gains (losses) 1. (.19) (.08) 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 $ $ $ Net asset value (000s) D $ 1,119 $ 453 $ 110 Securities outstanding D 75,347 38,775 10,679 Management expense ratio E,J 2.17% 2.22% 2.22% Management expense ratio before waivers or absorptions E,J 2.22% 2.25% 2.27% Trading expense ratio G.32%.34%.52% Portfolio turnover rate H 92.61% 76.67% 88.88% Net asset value per security, end of period $ $ $

8 Financial Highlights continued Fidelity Emerging Markets Fund Series E3 Periods ended March 31, 18 I Net assets, beginning of period B $ $ $ Total revenue Total expenses (excluding distributions) (.36) (.28) (.04) Realized gains (losses) 1.58 (.14) (.08) 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 $ $ $ Net asset value (000s) D $ 663 $ 73 $ 1 Securities outstanding D 44,547 6, Management expense ratio E,J 2.12% 2.17% 2.06% Management expense ratio before waivers or absorptions E,J 2.18% 2.% 2.48% Trading expense ratio G.32%.34%.52% Portfolio turnover rate H 92.61% 76.67% 88.88% Net asset value per security, end of period $ $ $ Fidelity Emerging Markets Fund Series E4 Periods ended March 31, 18 I Net assets, beginning of period B $ $ $ Total revenue Total expenses (excluding distributions) (.37) (.27) (.04) Realized gains (losses) 1.98 (.23) (.08) Unrealized gains (losses) (.24) Total increase (decrease) from operations B From net investment income (excluding dividends) (.01) From dividends From capital gains Return of capital Total distributions B,C (.01) Net assets, end of period B $ $ $ Net asset value (000s) D $ 64 $ 1 $ 1 Securities outstanding D 4, Management expense ratio E,J 2.07% 1.91% 2.06% Management expense ratio before waivers or absorptions E,J 2.13% 2.19% 2.48% Trading expense ratio G.32%.34%.52% Portfolio turnover rate H 92.61% 76.67% 88.88% Net asset value per security, end of period $ $ $

9 Fidelity Emerging Markets Fund Series P1 Periods ended March 31, 18 K Net assets, beginning of period B $ $ 9.73 $ Total revenue Total expenses (excluding distributions) (.22) (.16) (.06) Realized gains (losses) 1.70 (.18) (.15) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.05) (.09) From dividends From capital gains Return of capital Total distributions B,C (.05) (.09) Net assets, end of period B $ $ $ 9.73 Net asset value (000s) D $ 2,474 $ 582 $ 295 Securities outstanding D 174,933 55,560 23,870 Management expense ratio E,L 1.09% 1.14% 1.14% Management expense ratio before waivers or absorptions E,L 1.12% 1.16% 1.19% Trading expense ratio G.32%.34%.52% Portfolio turnover rate H 92.61% 76.67% 88.88% Net asset value per security, end of period $ $ $ 9.73 Fidelity Emerging Markets Fund Series P2 Periods ended March 31, 18 K Net assets, beginning of period B $ $ 9.73 $ Total revenue Total expenses (excluding distributions) (.21) (.15) (.06) Realized gains (losses) 1.21 (.15) (.17) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.06) (.09) From dividends From capital gains Return of capital Total distributions B,C (.06) (.09) Net assets, end of period B $ $ $ 9.73 Net asset value (000s) D $ 538 $ 155 $ 68 Securities outstanding D 37,975 13,793 7,022 Management expense ratio E,L 1.03% 1.07% 1.08% Management expense ratio before waivers or absorptions E,L 1.06% 1.09% 1.12% Trading expense ratio G.32%.34%.52% Portfolio turnover rate H 92.61% 76.67% 88.88% Net asset value per security, end of period $ $ $

10 Financial Highlights continued Fidelity Emerging Markets Fund Series P3 Periods ended March 31, 18 M Net assets, beginning of period B $ Total revenue.23 Total expenses (excluding distributions) (.17) Realized gains (losses) 1.52 Unrealized gains (losses).09 Total increase (decrease) from operations B 1.67 From net investment income (excluding dividends) (.06) From dividends From capital gains Return of capital Total distributions B,C (.06) Net assets, end of period B $ Net asset value (000s) D $ 922 Securities outstanding D 75,734 Management expense ratio E,N.97% Management expense ratio before waivers or absorptions E,N 1.00% Trading expense ratio G.32% Portfolio turnover rate H 92.61% Net asset value per security, end of period $

11 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, 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, 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, 14, 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 100% 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 For the period February 5, (commencement of sale of securities) to March 31,. J Effective February 9,, 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. K For the period December 4, 15 (commencement of sale of securities) to March 31,. L Effective December 8, 15, 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. M For the period April 21, (commencement of sale of securities) to March 31, 18. N Effective April 25,, 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. 9

12 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 100% 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 2.000% 86.79% 13.21% Series B 1.8% 54.05% 45.95% Series F 0.8% % Series E % 54.79% 45.21% Series E % 55.56% 44.44% Series E % 56.34% 43.66% Series E % 57.97% 42.03% Series P % % Series P % % Series P % % 10

13 Fidelity Emerging Markets 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, 11

14 Fidelity Emerging Markets Fund Past Performance continued Series E3 Series P Commencement of Operations is February 5, Series E4 Commencement of Operations is December 4, 15 Series P Commencement of Operations is February 5, Commencement of Operations is April 21, Series P Commencement of Operations is December 4, 15 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 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,

15 Average Annual Total Returns Fidelity Emerging Markets Fund Series A 24.7% 9.0% 8.5% 1.7% Fidelity Emerging Markets Fund Series B 24.9% 9.2% 8.7% 1.9% Fidelity Emerging Markets Fund Series F 26.4% 10.4% 9.9% 3.1% Fidelity Emerging Markets Fund Series O 27.8% 11.8% 11.3% 4.5% Fidelity Emerging Markets Fund Series E1 25.0% 9.3% 8.7% 2.0% Fidelity Emerging Markets Fund Series E2 25.1% 9.3% 8.8% 2.0% Fidelity Emerging Markets Fund Series E3 25.2% 9.4% 8.8% 2.0% Fidelity Emerging Markets Fund Series E4 25.4% 9.5% 8.9% 2.0% Fidelity Emerging Markets Fund Series P1 26.4% 10.5% 10.0% 3.1% Fidelity Emerging Markets Fund Series P2 26.5% 10.6% 10.0% 3.1% Fidelity Emerging Markets Fund Series P3 26.6% 10.5% 10.0% 3.1% MSCI Emerging Markets Index 21.2% 9.9% 10.5% 5.7% 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. The MSCI Emerging Markets Index is a free float-adjusted, market capitalization-weighted index that is designed to measure equity market performance of emerging markets. 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 10 years 13

16 Fidelity Emerging Markets Fund Summary of Investment Portfolio as at March 31, 18 Sector Mix % of Fund s Net Assets as at 3/31/18 % of Fund s Net Assets as at 3/31/17 Information Technology Financials Consumer Discretionary Industrials Consumer Staples Materials Health Care Real Estate Energy Telecommunication Services Utilities 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 Cayman Islands India Brazil China United States of America Korea (South) South Africa Taiwan Mexico Hong Kong Philippines France United Kingdom Japan Turkey Indonesia Thailand Russia Germany Netherlands Argentina Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) Top Issuers % of Fund s Net Assets 1. Tencent Holdings Ltd Samsung Electronics Co. Ltd Alibaba Group Holding Ltd Taiwan Semiconductor Manufacturing Co. Ltd Naspers Ltd Itau Unibanco Holding SA Ping An Insurance (Group) Co. of China Ltd Sberbank of Russia Housing Development Finance Corp. Ltd Reliance Industries Ltd Ambev SA JD.com, Inc BM&F Bovespa SA FirstRand Ltd LG Chemical Ltd C.P. ALL PCL CSPC Pharmaceutical Group Ltd Itausa-Investimentos Itau SA Credicorp Ltd PT Bank Central Asia Tbk Yum China Holdings, Inc Fomento Economico Mexicano S.A.B. de CV Maruti Suzuki India Ltd LG Household & Health Care Ltd China Merchants Bank Co. Ltd. 0.8 Total Fund Net Assets $1,315,264, 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 0, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 14

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20 Fidelity Investments Canada ULC 483 Bay Street, Suite 0 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 0 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-EMP-MRFPA-0618