Fidelity Global Small Cap Fund

Transcription

1 Fidelity Global Small Cap Fund Semi-Annual Management Report of Fund Performance September,

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 Semi-Annual Management Report of Fund Performance as at September, Fidelity Global Small Cap Fund This semi-annual management report of fund performance contains financial highlights but does not contain the complete semi-annual financial statements for the investment fund. You can get a copy of the semi-annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite, 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 Results of Operations Fidelity Global Small Cap Fund (Fund), Series B, returned 1.1%, after fees and expenses, for the six-month period ended September,. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. During the review period, global equities, as represented by the MSCI World Index, returned 7.1% (in Canadian dollar terms). Market overview: Encouraging corporate earnings and sustained developed market economic growth supported global equities, while continuing trade friction between the U.S. and its leading trading partners contributed to volatility. The U.S. imposed a fresh round of tariffs on Chinese imports, prompting measured retaliation by China. From a regional perspective, factors such as a reduction in corporate tax rates and higher oil prices enhanced corporate earnings in the U.S. and Canada, respectively. Meanwhile, the banking crisis in Turkey and political uncertainty in Italy and Spain hampered European equity market performance. Asia-Pacific (excluding Japan) equities also lost ground, mainly due to the escalation of the U.S.-China trade war and fears about its potential adverse impact on global trade. Among sectors, energy and health care companies advanced in view of higher oil prices and strong earnings expectations. A rally in the information technology sector continued to support market performance, but risks of regulatory scrutiny, rising competitive pressure and peaking valuations prompted some profit taking toward the end of the review period. Conversely, the financials sector declined on a mix of concerns about higher funding costs and slower lending growth. Meanwhile, the U.S. Federal Reserve (the Fed) raised its Fed funds target range of interest rates twice, to 2.% 2.25%, over the review period. This reflected a more confident outlook for the U.S. economy and supported investor optimism. Factors affecting performance: The Fund s benchmark, the MSCI ACWI (All Country World Index) Small Cap Index, returned 3.6% for the review period. The Fund underperformed its benchmark, primarily due to exposure to certain stocks in the consumer discretionary sector, where investments in U.K.-based online gaming software provider Playtech, South Africa-based automotive component producer Metair Investments and U.S.-based homebuilder Taylor Morrison Home detracted from relative returns. Investments in certain holdings in the energy sector also detracted from relative returns, such as investments in U.S.-based oil and gas producer RSP Permian and U.S.-based natural gas liquid extraction company Extraction Oil & Gas. Elsewhere, a holding in U.K.-based health care industry services provider UDG also detracted from relative returns. In contrast, exposure to certain stocks in the health care sector contributed to relative returns, with investments in U.S.-based biopharmaceutical company Sarepta Therapeutics, ophthalmic medical technology company Glaukos Corporation and U.S.-based developer of highly selective medicine for genetically defined cancer Loxo Oncology contributing. In addition, certain stocks in the consumer staples sector contributed to relative performance, such as an investment in U.S.-based consumer packaged goods company Post Holdings. At the end of the review period, the Fund had no exposure to RSP Permian. Portfolio changes: The portfolio manager increased the Fund s exposure to the consumer staples and financials sectors during the review period. In the consumer staples sector, a position was initiated in U.S.- based US Foods, due to its relatively attractive valuation. In the financials sector, the Fund initiated a position in Kearny Financial, given its potentially strong growth prospects. In contrast, the Fund s exposure to the materials sector declined, after a position in Frutarom, which produces and markets flavours and fine ingredients for the food and beverage industry, was closed. The portfolio managers opted to realize profits after the share price rallied and began to appear overvalued. In terms of country allocation, exposure to the U.S. was increased during the period, while exposures to Israel and Belgium were decreased. Changes in country allocation are a result of the portfolio manager s bottom-up stock selection process rather than top-down macro calls. Recent Developments Portfolio managers Shah Badkoubei and Robert Feldman remain optimistic about the potential of small-cap stocks to provide diversification and attractive returns. They believe the valuations of small-cap securities are more attractive than those of large-cap securities. The portfolio managers believe that the global small-cap segment is inefficient and under-researched; as a result, they believe it is possible, with sufficient research resources, to find attractively priced stocks in all parts of the market cycle. The portfolio managers also believe that small-cap companies are more exposed to local markets and local factors, and so may be insulated, to some degree, from broader market forces. As at September,, the Fund had its largest absolute exposure to the industrials sector, followed by the information technology sector. The Fund diverged the most from the benchmark sector weightings by having more exposure to the information technology sector and less exposure to the consumer staples sector. The predominant industry benchmark GICS (Global Industry Classification Standard) was adjusted after the close of business on September 28, in the following ways: 1

4 Fidelity Global Small Cap Fund Management Discussion of Fund Performance continued The Telecommunication Services sector was reconstituted and renamed as the Communication Services sector. The Media industry group moved from the Consumer Discretionary sector to the newly formed Communication Services sector, where it has been renamed Media & Entertainment. Internet companies which facilitate communication (i.e., search engines and social media) and gaming software companies moved from the Information Technology sector to the Communication Services sector. Online marketplaces for consumer goods and services moved from the Information Technology sector to the Consumer Discretionary sector. In light of the above changes, there is no impact on the Fund s objective and strategy. 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 FIAM LLC, 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 $85, for the period ended September,. 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 $12, for the period ended September,. 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 September,. 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 Global Small Cap Fund Series A Net assets, beginning of period B $ $ $ 15. $ 16.9 $ $ 11.8 Total revenue Total expenses (excluding distributions) (.25) (.47) (.45) (.45) (.4) (.36) Realized gains (losses) Unrealized gains (losses) (.67) (.9) (.5) (2.54) Total increase (decrease) from operations B (.7) From net investment income (excluding dividends) From dividends From capital gains (.54) (.9) Return of capital Total distributions B,C (.54) (.9) Net assets, end of period B $ 17.7 $ $ $ 15. $ 16.9 $ Net asset value (s) D $ 3,24 $ 3,59 $ 3,185 $ 3,738 $ 5,56 $ 6,271 Securities outstanding D 17,85 174,77 19,65 244, ,393 45,749 Management expense ratio E,F 2.51% 2.52% 2.56% 2.58% 2.64% 2.68% Management expense ratio before waivers or absorptions E,F 2.58% 2.57% 2.59% 2.64% 2.67% 2.68% Trading expense ratio G.4%.6%.%.5%.7%.% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% 22.34% 36.42% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Global Small Cap Fund Series B Net assets, beginning of period B $ $ $ $ $ 14.1 $ Total revenue Total expenses (excluding distributions) (.22) (.41) (.39) (.4) (.36) (.32) Realized gains (losses) Unrealized gains (losses) (.68) (.18) (.4) (2.75) Total increase (decrease) from operations B (.83) From net investment income (excluding dividends) From dividends From capital gains (.58) (.12) Return of capital Total distributions B,C (.58) (.12) Net assets, end of period B $ $ $ $ $ $ 14.1 Net asset value (s) D $ 4,487 $ 4,654 $ 4,318 $ 4,51 $ 5,741 $ 6,935 Securities outstanding D 25, ,76 255, ,55 353,7 496,474 Management expense ratio E,F 2.29% 2.31% 2.36% 2.39% 2.43% 2.45% Management expense ratio before waivers or absorptions E,F 2.36% 2.37% 2.4% 2.43% 2.44% 2.45% Trading expense ratio G.4%.6%.%.5%.7%.% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% 22.34% 36.42% Net asset value per security, end of period $ $ $ $ $ $

6 Financial Highlights continued Fidelity Global Small Cap Fund Series F Net assets, beginning of period B $ 18.8 $ 18. $ $ 17.5 $ $ Total revenue Total expenses (excluding distributions) (.14) (.27) (.25) (.24) (.21) (.18) Realized gains (losses) Unrealized gains (losses) (.73) (.17) (.1) (3.36) Total increase (decrease) from operations B (1.14) From net investment income (excluding dividends) From dividends From capital gains (.84) (.33) Return of capital Total distributions B,C (.84) (.33) Net assets, end of period B $ $ 18.8 $ 18. $ $ 17.5 $ Net asset value (s) D $ 749 $ 669 $ 56 $ 49 $ 728 $ 586 Securities outstanding D 39,156 35,438 28,1 24,911 42,665 4,335 Management expense ratio E,I 1.% 1.21% 1.23% 1.23% 1.% 1.22% Management expense ratio before waivers or absorptions E,I 1.22% 1.23% 1.23% 1.23% 1.% 1.22% Trading expense ratio G.4%.6%.%.5%.7%.% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% 22.34% 36.42% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Global Small Cap Fund Series O Net assets, beginning of period B $ $ 19. $ $ $ 15.7 $ Total revenue Total expenses (excluding distributions) (.3) (.5) (.5) (.4) (.3) (.3) Realized gains (losses) Unrealized gains (losses) (.79) (.23) (3.19) Total increase (decrease) from operations B (.76) From net investment income (excluding dividends) From dividends From capital gains (1.15) (.59) Return of capital Total distributions B,C (1.15) (.59) Net assets, end of period B $.4 $ $ 19. $ $ $ 15.7 Net asset value (s) D $ 3,394 $ 3,262 $ 2,839 $ 2,846 $ 2,346 $ 2,434 Securities outstanding D 165,6 163, ,42 158,132 1, ,245 Management expense ratio % % % % % % Management expense ratio before waivers or absorptions % % % % % % Trading expense ratio G.4%.6%.%.5%.7%.% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% 22.34% 36.42% Net asset value per security, end of period $.3996 $ $ $ $ $

7 Fidelity Global Small Cap Fund Series E1 J Net assets, beginning of period B $ 12.2 $ $.51 $. Total revenue Total expenses (excluding distributions) (.16) (.) (.28) (.4) Realized gains (losses) Unrealized gains (losses) (.45).1.95 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.4) (.9) Return of capital Total distributions B,C (.4) (.9) Net assets, end of period B $ $ 12.2 $ $.51 Net asset value (s) D $ 662 $ 813 $ 681 $ 575 Securities outstanding D 54,43 67,521 59,178 42,962 Management expense ratio E,K 2.27% 2.28% 2.31% 2.31% Management expense ratio before waivers or absorptions E,K 2.34% 2.33% 2.34% 2.35% Trading expense ratio G.4%.6%.%.5% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% Net asset value per security, end of period $ $ $ $.51 Fidelity Global Small Cap Fund Series E2 J Net assets, beginning of period B $ 12.4 $ $.52 $. Total revenue Total expenses (excluding distributions) (.14) (.28) (.26) (.4) Realized gains (losses) Unrealized gains (losses) (.) (.22) (.7).59 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.42) (.11) Return of capital Total distributions B,C (.42) (.11) Net assets, end of period B $ 12. $ 12.4 $ $.52 Net asset value (s) D $ 112 $ 122 $ 141 $ 6 Securities outstanding D 9,17,86 12, 5,7 Management expense ratio E,K 2.5% 2.11% 2.15% 2.24% Management expense ratio before waivers or absorptions E,K 2.12% 2.16% 2.18% 2.29% Trading expense ratio G.4%.6%.%.5% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% Net asset value per security, end of period $ $ $ $

8 Financial Highlights continued Fidelity Global Small Cap Fund Series E3 September, L Net assets, beginning of period B $. Total revenue. Total expenses (excluding distributions) (.11) Realized gains (losses).51 Unrealized gains (losses) (.57) Total increase (decrease) from operations B (.7) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $.4 Net asset value (s) D $ 1 Securities outstanding D Management expense ratio E,M 2.15% Management expense ratio before waivers or absorptions E,M 2.22% Trading expense ratio G.4% Portfolio turnover rate H 17.45% Net asset value per security, end of period $.376 Fidelity Global Small Cap Fund Series P1 N Net assets, beginning of period B $.39 $ 9.96 $ 9.9 $. Total revenue Total expenses (excluding distributions) (.7) (.14) (.13) (.4) Realized gains (losses) Unrealized gains (losses) (.36) (.25) (.2).53 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.47) (.19) Return of capital Total distributions B,C (.47) (.19) Net assets, end of period B $.58 $.39 $ 9.96 $ 9.9 Net asset value (s) D $ 293 $ 333 $ 9 $ 89 Securities outstanding D 27,679 31,931 9,21 9,791 Management expense ratio E,O 1.9% 1.% 1.13% 1.15% Management expense ratio before waivers or absorptions E,O 1.11% 1.12% 1.13% 1.15% Trading expense ratio G.4%.6%.%.5% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% Net asset value per security, end of period $.5847 $.4119 $ $

9 Fidelity Global Small Cap Fund Series P2 N Net assets, beginning of period B $.41 $ 9.96 $ 9. $. Total revenue Total expenses (excluding distributions) (.7) (.11) (.12) (.2) Realized gains (losses) Unrealized gains (losses) (.) (.4).41 (1.7) Total increase (decrease) from operations B (.9) From net investment income (excluding dividends) From dividends From capital gains (.49) (.) Return of capital Total distributions B,C (.49) (.) Net assets, end of period B $.61 $.41 $ 9.96 $ 9. Net asset value (s) D $ 9 $ 1 $ 1 $ 1 Securities outstanding D Management expense ratio E,O 1.4%.81% 1.6%.9% Management expense ratio before waivers or absorptions E,O 1.6%.81% 1.6%.9% Trading expense ratio G.4%.6%.%.5% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% Net asset value per security, end of period $.685 $.4322 $ $ Fidelity Global Small Cap Fund Series P3 N Net assets, beginning of period B $.41 $ 9.97 $ 9. $. Total revenue Total expenses (excluding distributions) (.7) (.11) (.11) (.2) Realized gains (losses) Unrealized gains (losses) (.37) (.6) (.3) (1.7) Total increase (decrease) from operations B (.9) From net investment income (excluding dividends) From dividends From capital gains (.51) (.22) Return of capital Total distributions B,C (.51) (.22) Net assets, end of period B $.61 $.41 $ 9.97 $ 9. Net asset value (s) D $ 1 $ 1 $ 1 $ 1 Securities outstanding D Management expense ratio E,O.75%.78%.86%.9% Management expense ratio before waivers or absorptions E,O.75%.78%.86%.9% Trading expense ratio G.4%.6%.%.5% Portfolio turnover rate H 17.45% 37.92% 33.28% 27.% Net asset value per security, end of period $.6139 $.4234 $ $

10 Financial Highlights continued Financial Highlights Footnotes A This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, follow International Financial Reporting Standards (IFRS) and periods prior to January 1, follow Canadian Generally Accepted Accounting Principles (Canadian GAAP). 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,, 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,, 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, (commencement of sale of securities) to March 31,. K 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. L For the period April, (commencement of sale of securities) to September,. M Effective April 24,, 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 December 4, (commencement of sale of securities) to March 31,. O Effective December 8,, 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. 8

11 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.% 72.1% 27.99% 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 P1.825%.% Series P2.8%.% Series P3.775%.% 9

12 Fidelity Global Small Cap 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. For each Series in the Yearby-Year Returns table below, the most recent returns stated are for the current six month period. Series A Series O Commencement of Operations is April 4, 11 Series B Commencement of Operations is April 4, 11 Series E Commencement of Operations is April 4, 11 Series F Commencement of Operations is February 5, Series E Commencement of Operations is April 4, 11 Commencement of Operations is February 5,

13 Series E3 Series P Commencement of Operations is April, Commencement of Operations is December 4, Series P Commencement of Operations is December 4, Series P Commencement of Operations is December 4, 11

14 Fidelity Global Small Cap Fund Summary of Investment Portfolio as at September, Sector Mix % of Fund s Net Assets as at 9//18 % of Fund s Net Assets as at 3/31/18 Industrials Information Technology Consumer Discretionary Financials Health Care Real Estate Materials Energy Consumer Staples Utilities Others (Individually Less Than 1%).9.8 Cash and Cash Equivalents Net Other Assets (Liabilities).7 (.1) Market Capitalization % of Fund s Net Assets as at 9//18 % of Fund s Net Assets as at 3/31/18 Large Mid Small Market Capitalization is a measure of the size of a company. It is calculated by multiplying the current share price by the number of outstanding common shares of the company. The Fund defines small cap as less than $2 billion, mid cap as between $2 billion and $ billion, and large cap as over $ billion in capitalization. Geographic Mix % of Fund s Net Assets as at 9//18 % of Fund s Net Assets as at 3/31/18 United States of America Japan United Kingdom France Germany Finland Hong Kong Ireland Canada Taiwan Spain Korea (South) Mexico Luxembourg Netherlands China Norway Bailiwick of Jersey 1..8 Austria Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities).7 (.1) 12

15 Top Issuers % of Fund s Net Assets 1. Sarepta Therapeutics, Inc United Drug PLC Dah Sing Financial Holdings Ltd Loxo Oncology, Inc OBIC Co. Ltd Miura Co. Ltd Glaukos Corp B&M European Value Retail S.A Post Holdings, Inc Shenzhen Expressway Co ITT, Inc Lundin Mining Corp Meitec Corp. 1.2 % of Fund s Net Assets 14. Brunswick Corp Sartorius Stedim Biotech SpareBank 1 SR-Bank ASA Cramo Oyj BankUnited, Inc Centennial Resource Development, Inc John Wood Group PLC First Foundation, Inc Mimecast Ltd Gibraltar Industries, Inc Ashland Global Holdings, Inc Wienerberger AG 1. Total Fund Net Assets $12,724,.2 Where applicable, the information in the above tables includes the Fund s pro-rata share of the investment in any Fidelity managed underlying fund. 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, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 13

16 Fidelity Investments Canada ULC 483 Bay Street, Suite Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 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-GSC-MRFPS-1118