Fidelity Global Financial Services Fund

Transcription

1 Fidelity Global Financial Services Fund Semi-Annual Management Report of Fund Performance September 30,

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 30, Fidelity Global Financial Services 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 300, 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 Financial Services Fund (Fund), Series B, returned 4.4%, after fees and expenses, for the six-month period ended September 30,. 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 broad global equity markets, as represented by the MSCI World Index, returned 2.3% (in Canadian dollar terms) for the period under review. Market overview: Global equities registered positive returns amid signs of stabilization in Europe and positive economic data in the U.S. European markets, as represented by the MSCI Europe Index, returned 7.2%, outperforming other global equity markets, with supportive economic data and solid corporate earnings lifting equities. European markets were also supported by the victory of a centrist candidate in the French presidential election. Asian equities gained during the review period, with the MSCI AC (All Country) Asia Pacific Index returning 4.4%, after optimism about global economic growth and improved corporate earnings forecasts in the region boosted sentiment. U.S. markets lagged other global markets, with the S&P 500 Index returning 1.0%; the impact of positive economic data was offset by concerns regarding geopolitical tensions in the Korean peninsula and the implications of hurricanes Harvey and Irma, as well as the Canadian dollar s appreciation against the U.S. dollar. Factors affecting performance: The Fund s benchmark, the MSCI ACWI (All Country World Index) Financials Index, returned 4.4% for the review period. The Fund marginally underperformed its benchmark, after fees and expenses; however, it outperformed before fees and expenses. The Fund s exposure to certain stocks in the banking and insurance industries contributed to relative performance. In the banking industry, the Fund s lack of exposure to Australia-based bank Commonwealth Bank of Australia and an investment in Italy-based bank Intesa Sanpaolo contributed to relative performance. In the insurance industry, the Fund s higher-than-benchmark exposure to Germany-based financial services company Allianz and China-based insurance company China Pacific Insurance contributed to relative performance. Among other industries, France-based investment management services provider Amundi contributed to relative performance. In contrast, exposure to certain diversified financial companies such as U.S.-based Discover Financial Services and U.S.-based Synchrony Financial detracted from relative performance. At the end of the review period, the Fund had no exposure to Synchrony Financial. In addition, the Fund s higher-than-benchmark exposure to Australia and New Zealand Banking Group detracted from relative performance. Positioning Changes: On a bottom-up basis, the Fund is positioned to profit from an improvement in interest rates and economic activity, less onerous interpretation of existing regulation and stabilization in some emerging market economies, as well as individual and restructuring stories. During the review period, the portfolio manager increased the Fund s exposure to the banking and diversified financials industries. In the banking industry, portfolio manager increased exposure to U.S.-based bank and financial services companies such as Bank of America, Citigroup, and initiated a position in U.K.-based bank and financial services company Barclays. In the diversified financial services industry, the portfolio manager initiated a position in U.S.-based diversified financial services company Ameriprise Financial and increased exposure to Francebased investment management services provider Amundi. Among other industries, the portfolio manager initiated a position in U.S.-based global advisory and insurance brokerage company Willis Towers Watson owing to the portfolio manager s confidence in management s ability to implement merger synergies and operational efficiencies, which should help to reduce costs. In contrast, the portfolio manager decreased exposure to real estate stocks, in keeping with risk considerations relative to the new benchmark index, while retaining the ability to have some off-benchmark exposure to the real estate sector on a bottom-up, stock-specific basis. Recent Developments Effective August 1,, the benchmark for the Fund was changed from the MSCI ACWI (All Country World Index) Financials and Real Estate Index Blend to the MSCI ACWI (All Country World Index) Financials Index. 1

4 Fidelity Global Financial Services Fund Management Discussion of Fund Performance continued The manager combines bottom-up stock selection with top-down country and sector analysis. He focuses on strong businesses and on companies with improving fundamentals that he believes should translate into higher returns on equity and assets. The manager prefers companies with strong assets that are likely to withstand periods of volatility and with good management that can create value and navigate through periods of uncertainty. Overall, he continues to focus on investing in quality businesses at the right valuation. At the end of the review period, the Fund had its largest absolute allocation to the banking industry, followed by the insurance industry. The Fund diverged the most from its benchmark by having a lower exposure to the diversified financial industry and a higher exposure to the insurance industry. 2

5 Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader group 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 FIL Limited 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 $453,000 for the period ended September 30,. 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 $66,000 for the period ended September 30,. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Investments, including National Financial Services LLC, 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 $0 for the period ended September 30,. 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. 3

6 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 Financial Services Fund Series A Six-months ended September 30, Periods ended March 31, The Series Net Assets per Security A Net assets, beginning of period B $ $ $ $ $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.43) (.75) (.71) (.62) (.56) (.37) Realized gains (losses) Unrealized gains (losses) (1.88) Total increase (decrease) from operations B (.92) Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ $ $ $ Ratios and Supplemental Data Net asset value (000s) D $ 13,831 $ 15,280 $ 14,779 $ 14,974 $ 13,282 $ 11,555 Securities outstanding D 478, , , , , ,720 Management expense ratio E,F 2.54% 2.58% 2.61% 2.66% 2.71% 2.67% Management expense ratio before waivers or absorptions E,F 2.59% 2.62% 2.68% 2.70% 2.71% 2.67% Trading expense ratio G.21%.20%.04%.12%.19%.23% Portfolio turnover rate H 35.80% 79.95% 30.19% 54.44% 82.61% 98.98% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Global Financial Services Fund Series B Six-months ended September 30, Periods ended March 31, The Series Net Assets per Security A Net assets, beginning of period B $ $ $ $ $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.41) (.71) (.67) (.58) (.52) (.34) Realized gains (losses) Unrealized gains (losses) (2.03) Total increase (decrease) from operations B (1.01) Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ $ $ $ Ratios and Supplemental Data Net asset value (000s) D $ 24,963 $ 25,164 $ 22,588 $ 23,897 $ 21,887 $ 17,357 Securities outstanding D 845, , , ,246 1,082,738 1,051,966 Management expense ratio E,F 2.35% 2.38% 2.39% 2.44% 2.47% 2.44% Management expense ratio before waivers or absorptions E,F 2.40% 2.41% 2.45% 2.46% 2.47% 2.44% Trading expense ratio G.21%.20%.04%.12%.19%.23% Portfolio turnover rate H 35.80% 79.95% 30.19% 54.44% 82.61% 98.98% Net asset value per security, end of period $ $ $ $ $ $

7 Fidelity Global Financial Services Fund Series F Six-months ended September 30, Periods ended March 31, The Series Net Assets per Security A Net assets, beginning of period B $ $ $ $ $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.27) (.48) (.41) (.37) (.32) (.19) Realized gains (losses) Unrealized gains (losses) (.07) 1.00 (2.53) Total increase (decrease) from operations B (1.16) Distributions: From net investment income (excluding dividends) (.15) From dividends (.09) (.03) From capital gains Return of capital Total distributions B,C (.24) (.03) Net assets, end of period B $ $ $ $ $ $ Ratios and Supplemental Data Net asset value (000s) D $ 5,037 $ 5,664 $ 3,336 $ 2,532 $ 1,708 $ 1,439 Securities outstanding D 153, , ,754 94,619 78,529 81,998 Management expense ratio E,F 1.22% 1.24% 1.23% 1.27% 1.31% 1.29% Management expense ratio before waivers or absorptions E,F 1.24% 1.26% 1.30% 1.31% 1.31% 1.29% Trading expense ratio G.21%.20%.04%.12%.19%.23% Portfolio turnover rate H 35.80% 79.95% 30.19% 54.44% 82.61% 98.98% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Global Financial Services Fund Series O Six-months ended September 30, Periods ended March 31, The Series Net Assets per Security A Net assets, beginning of period B $ $ $ $ $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.08) (.14) (.08) (.08) (.06) Realized gains (losses) Unrealized gains (losses) (.18).81 (3.34) Total increase (decrease) from operations B (1.49) Distributions: From net investment income (excluding dividends) (.42) (.04) From dividends (.25) (.20) (.24) From capital gains Return of capital Total distributions B,C (.67) (.24) (.24) Net assets, end of period B $ $ $ $ $ $ Ratios and Supplemental Data Net asset value (000s) D $ 10,600 $ 11,379 $ 6,745 $ 6,651 $ 5,639 $ 4,051 Securities outstanding D 294, , , , , ,507 Management expense ratio % % % % % % Management expense ratio before waivers or absorptions % % % % % % Trading expense ratio G.21%.20%.04%.12%.19%.23% Portfolio turnover rate H 35.80% 79.95% 30.19% 54.44% 82.61% 98.98% Net asset value per security, end of period $ $ $ $ $ $

8 Financial Highlights continued Fidelity Global Financial Services Fund Series E1 Six-months ended September 30, Periods ended March 31, 2016 I The Series Net Assets per Security A Net assets, beginning of period B $ $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.17) (.31) (.05) Realized gains (losses) Unrealized gains (losses) (.09) Total increase (decrease) from operations B Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ Ratios and Supplemental Data Net asset value (000s) D $ 4,749 $ 3,377 $ 1,133 Securities outstanding D 375, , ,171 Management expense ratio E,J 2.28% 2.31% 2.32% Management expense ratio before waivers or absorptions E,J 2.33% 2.34% 2.37% Trading expense ratio G.21%.20%.04% Portfolio turnover rate H 35.80% 79.95% 30.19% Net asset value per security, end of period $ $ $ Fidelity Global Financial Services Fund Series E2 Six-months ended September 30, Periods ended March 31, 2016 I The Series Net Assets per Security A Net assets, beginning of period B $ $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.17) (.31) (.04) Realized gains (losses) Unrealized gains (losses) (.07) (.09).47 Total increase (decrease) from operations B Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ Ratios and Supplemental Data Net asset value (000s) D $ 340 $ 191 $ 69 Securities outstanding D 26,888 15,790 6,754 Management expense ratio E,J 2.22% 2.24% 2.24% Management expense ratio before waivers or absorptions E,J 2.27% 2.27% 2.29% Trading expense ratio G.21%.20%.04% Portfolio turnover rate H 35.80% 79.95% 30.19% Net asset value per security, end of period $ $ $

9 Fidelity Global Financial Services Fund Series E3 Six-months ended September 30, Periods ended March 31, 2016 I The Series Net Assets per Security A Net assets, beginning of period B $ $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.16) (.32) (.04) Realized gains (losses) Unrealized gains (losses) (.06) (.03).16 Total increase (decrease) from operations B Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ Ratios and Supplemental Data Net asset value (000s) D $ 164 $ 315 $ 1 Securities outstanding D 12,921 25, Management expense ratio E,J 2.16% 2.18% 2.06% Management expense ratio before waivers or absorptions E,J 2.20% 2.21% 2.47% Trading expense ratio G.21%.20%.04% Portfolio turnover rate H 35.80% 79.95% 30.19% Net asset value per security, end of period $ $ $ Fidelity Global Financial Services Fund Series E4 Six-months ended September 30, Periods ended March 31, K The Series Net Assets per Security A Net assets, beginning of period B $ $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.15) (.06) Realized gains (losses) Unrealized gains (losses).43 (.02) Total increase (decrease) from operations B Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ Ratios and Supplemental Data Net asset value (000s) D $ 22 $ 191 Securities outstanding D 1,994 18,477 Management expense ratio E,L 2.13% 2.13% Management expense ratio before waivers or absorptions E,L 2.15% 2.15% Trading expense ratio G.21%.20% Portfolio turnover rate H 35.80% 79.95% Net asset value per security, end of period $ $

10 Financial Highlights continued Fidelity Global Financial Services Fund Series P1 Six-months ended September 30, Periods ended March 31, 2016 M The Series Net Assets per Security A Net assets, beginning of period B $ $ 9.04 $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.09) (.17) (.05) Realized gains (losses) Unrealized gains (losses) (.14).21 (.94) Total increase (decrease) from operations B (.78) Distributions: From net investment income (excluding dividends) (.06) From dividends (.03) From capital gains Return of capital Total distributions B,C (.09) Net assets, end of period B $ $ $ 9.04 Ratios and Supplemental Data Net asset value (000s) D $ 2,073 $ 1,125 $ 58 Securities outstanding D 182, ,090 6,424 Management expense ratio E,N 1.10% 1.12% 1.13% Management expense ratio before waivers or absorptions E,N 1.12% 1.13% 1.18% Trading expense ratio G.21%.20%.04% Portfolio turnover rate H 35.80% 79.95% 30.19% Net asset value per security, end of period $ $ $ Fidelity Global Financial Services Fund Series P2 Six-months ended September 30, Periods ended March 31, 2016 M The Series Net Assets per Security A Net assets, beginning of period B $ $ 9.05 $ Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) (.08) (.12) (.03) Realized gains (losses) Unrealized gains (losses) (1.13) Total increase (decrease) from operations B (.95) Distributions: From net investment income (excluding dividends) (.08) From dividends (.04) From capital gains Return of capital Total distributions B,C (.12) Net assets, end of period B $ $ $ 9.05 Ratios and Supplemental Data Net asset value (000s) D $ 90 $ 1 $ 1 Securities outstanding D 7, Management expense ratio E,N 1.05%.84%.89% Management expense ratio before waivers or absorptions E,N 1.07%.89% 1.02% Trading expense ratio G.21%.20%.04% Portfolio turnover rate H 35.80% 79.95% 30.19% Net asset value per security, end of period $ $ $

11 Financial Highlights Footnotes A B C D E F G H This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 2013 follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 2013 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. 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. 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. This information is provided as at period end of the year shown. 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. Effective November 1, 2014, 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. 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. 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, 2016 (commencement of sale of securities) to March 31, J Effective February 9, 2016, 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 January 6, (commencement of sale of securities) to March 31,. L Effective January 10,, 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 December 4, 2015 (commencement of sale of securities) to March 31, N Effective December 8, 2015, 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% 27.58% 72.42% Series B 1.850% 54.05% 45.95% Series F 0.850% % 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 % % 10

13 Fidelity Global Financial Services 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. 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 Year-by-Year Returns table below, the most recent returns stated are for the current six month period. Series A Series O Fiscal Years Fiscal Years (%) (%) Series B Series E1 Fiscal Years Fiscal Years 2016 (%) (%) Series F Commencement of Operations is February 5, 2016 Fiscal Years Series E2 (%) Fiscal Years (%) Commencement of Operations is February 5,

14 Fidelity Global Financial Services Fund Past Performance continued Series E3 Series P2 Fiscal Years 2016 Fiscal Years 2016 (%) (%) Commencement of Operations is February 5, 2016 Commencement of Operations is December 4, 2015 Series E4 Fiscal Years (%) Commencement of Operations is January 6, Series P1 Fiscal Years 2016 (%) Commencement of Operations is December 4,

15 Fidelity Global Financial Services Fund Summary of Investment Portfolio as at September 30, Sector Mix % of Fund s Net Assets as at 9/30/17 % of Fund s Net Assets as at 3/31/17 Banks Insurance Capital Markets Real Estate Management & Development Diversified Financial Services Consumer Finance Thrifts & Mortgage Finance IT Services Others (Individually Less Than 1%) Equity Real Estate Investment Trusts (REITs) Cash and Cash Equivalents Net Other Assets (Liabilities) 0.0 (0.3) Geographic Mix % of Fund s Net Assets as at 9/30/17 % of Fund s Net Assets as at 3/31/17 United States of America United Kingdom France Japan Germany Canada Australia China Bermuda Hong Kong Spain Switzerland Thailand Korea (South) India Italy Netherlands Russia Singapore Malaysia Romania Brazil Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) 0.0 (0.3) Top Issuers % of Fund s Net Assets 1. JPMorgan Chase & Co Bank of America Corp Citigroup, Inc Allianz SE Wells Fargo & Co BNP Paribas SA Societe Generale CaixaBank SA Ameriprise Financial, Inc AIA Group Ltd Morgan Stanley Berkshire Hathaway, Inc Credit Suisse Group AG Willis Group Holdings PLC Goldman Sachs Group, Inc Australia & New Zealand Banking Group Ltd Prudential PLC Intesa Sanpaolo SpA Mitsubishi UFJ Financial Group, Inc MetLife, Inc Barclays PLC Essent Group Ltd CME Group, Inc Allstate Corp Amundi SA 1.4 Total Fund Net Assets $61,818,

16 Summary of Investment Portfolio as at September 30, continued 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 300, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 14

17

18

19

20 Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 300 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 or Fidelity U.S. Money Market Fund 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-FFS-MRFPS-1117