Fidelity Global Monthly Income Currency Neutral Fund

Transcription

1 Fidelity Global Monthly Income Currency Neutral Fund Semi-Annual Management Report of Fund Performance September 3,

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 3, Fidelity Global Monthly Income Currency Neutral 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 3, Toronto ON MG 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 Monthly Income Currency Neutral Fund (Fund) invests substantially all of its assets in units of Fidelity Global Monthly Income Fund (Underlying Fund). Fidelity Global Monthly Income Currency Neutral Fund Series B returned 3.4% after fees and expenses for the six-month period ended September 3,. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. Global equities, as measured by the MSCI ACWI (All Country World Index) Index Hedged CAD, returned 7.4% in Canadian dollar terms for the period under review. Global investment grade bonds, as represented by the Bloomberg Barclays Global Aggregate Bond Index Hedged CAD, returned 1.% for the review period. 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 regarding global economic growth and improved corporate earnings forecasts in the region boosted sentiment. U.S. markets lagged other global markets, with the S&P Index returning 1.%; 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. Global investment-grade bonds registered negative returns in Canadian dollar terms due to the Canadian dollar s appreciation during the review period. Positive returns in global investment-grade bonds were dampened slightly as yields rose after the U.S. Federal Reserve (Fed) increased interest rates in June from 1.% to 1.2%, the second rate increase in. Expectations that central banks globally would begin raising interest rates, or at least end accommodative monetary policies, in the near future increased following the Fed s decision to raise interest rates in the United States. In Europe, markets became more optimistic as election results in France reduced the political risks that had emerged in the first half of the year, leading to strong performance for European bonds during the period. Factors affecting performance: The Fund s benchmark index returned 4.6% for the period under review. The Fund s benchmark is a blend of 4.% MSCI ACWI (All Country World Index) Index Hedged CAD, 31.% Bloomberg Barclays Global Aggregate Bond Index Hedged CAD, 12.% The BofA Merrill Lynch Global High Yield Constrained Index Hedged CAD, 7.% FTSE EPRA/NAREIT Developed Index Hedged CAD,.% The BofA Merrill Lynch All US Convertibles Index Hedged CAD, and.% J.P. Morgan Emerging Markets Bond Index Global Diversified Index Hedged CAD. The Fund underperformed its benchmark after fees and expenses, primarily due to the Underlying Fund s exposure to U.S. convertible securities, U.S. TIPS, and high-yield CMBS. In addition, exposure to global equities detracted from relative performance. In contrast, the Underlying Fund s investments in global bonds and exposure to certain real estate stocks contributed to relative performance. The Underlying Fund s exposure to global bonds contributed to relative performance, primarily attributable to holdings in corporate bonds as this segment performed well during the review period. Global real estate investment trusts (REITs) made a contribution to relative performance, primarily driven by the Underlying Fund s underweight positioning in retail REITs and positive security selection in industrial REITs. Among the Underlying Fund s exposures to global equity securities, investments in the industrials and energy sectors contributed to relative performance. In the industrials sector, a lack of exposure to U.S.-based power generation and water technologies provider General Electric, as well as an investment in Hong Kong-based SITC International Holdings, contributed to relative performance. In the energy sector, higherthan-benchmark exposure to Canada-based integrated energy company, Suncor Energy, contributed to relative performance. In contrast, the Fund s holdings in health care and information technology detracted from relative performance. In the health care sector, exposure to Teva Pharmaceutical Industries and GlaxoSmithKline detracted from relative performance. In the information technology sector, a lack of 1

4 Fidelity Global Monthly Income Currency Neutral Fund Management Discussion of Fund Performance continued exposure to Tencent Holdings, Alibaba Group and Facebook, and exposure to EOH Holdings detracted from relative performance. Other notable detractions from relative performance were made by British American Tobacco and Molson Coors Brewing Company. Consistent with the Fund s mandate, the lead portfolio managers maintained the Fund s asset allocation of equity and fixed-income securities broadly in line with the benchmark. Portfolio Changes: Global equity portfolio manager Ramona Persaud uses a risk/reward framework when evaluating each investment opportunity. During the review period, she increased exposure to the industrials and consumer staples sectors. In the industrials sector, she initiated positions in France-based construction and high-performance materials manufacturer Saint-Gobain. The portfolio manager believes the company is attractively valued and the French housing and construction industries are rebounding. In the consumer staples sector, the portfolio manager increased exposure to U.K.-based transnational consumer goods company Unilever. The portfolio manager believes Unilever trades at an attractive valuation with room for margin improvement driven by ongoing cost-cutting programs. In contrast, exposure to the information technology sector was reduced by selling off a position in Samsung Electronics; the risk-to-reward profile had become less attractive with the rising share price. Investors continued search for yield has created a challenging environment, with sentiment outweighing fundamentals. Nevertheless, Ms. Persaud remains committed to finding opportunities in high-quality companies with strong track records of capital allocation. The global investment-grade fixed-income portfolio managers Michael Foggin, Andrew Lewis, Curt Hollingsworth and Jeff Moore believe that, given prevailing market conditions, corporate bonds offer the best potential for active returns. Yield spreads have room to tighten and default rates are relatively low. The portfolio managers have therefore increased exposure to investment grade corporate bonds, especially from industrial, financial, and utilities issuers. Government bonds have also been increased, while the allocation to treasuries and high yield bonds was reduced during the review period. Global high-yield portfolio manager Michael Weaver reduced exposure to the food, beverage and tobacco industry, in favour of the chemicals industry, focusing on bottom-up security selection and unique investment opportunities. Global real estate portfolio manager Steve Buller increased exposure to industrial real estate securities, while reducing exposure to diversified real estate securities. Portfolio construction continues to be driven by Mr. Buller s investment strategies based on the fundamentals of individual securities. He focuses on maintaining a balance between catalyst-driven ideas and defensive positions. On the margin, he has been focusing more on sector themes. He is cautious about the retail sector because of the potential headwind created by e-commerce. He believes that specialty sectors such as logistics will benefit from increasing e-commerce. Recent Developments The Underlying Fund s lead portfolio managers Geoff Stein and David Wolf seek to maintain a strategic allocation of equities and fixedincome securities in line with the Fund s benchmark. They believe the economic cycle is approaching its later stages as central banks are beginning to raise interest rates and inflation risks are growing. Global equity portfolio manager Ramona Persaud has recently been finding compelling investment opportunities in the consumer staples sector. The recent shift toward cyclical, pro-growth industries has created a challenging environment in which the impact of investor sentiment has outweighed fundamentals. However, Ms. Persaud remains committed to finding high-quality value opportunities in companies with strong track records for capital allocation. Effective June 1,, Andrew Lewis and Michael Foggin assumed portfolio co-management responsibilities for the underlying Fidelity Global Bond Fund. The Underlying Fund s investment objective and strategy have not been affected by this change. Portfolio managers Michael Foggin, Andrew Lewis, Curt Hollingsworth and Jeff Moore are focused on maintaining a well-diversified and liquid bond portfolio that can adapt to changing market environments. They continue to emphasize bottom-up, fundamental security selection, capitalizing on unique investment opportunities. At the moment, they believe that global central bank actions will continue to dominate the fixed-income landscape. In addition, they continue to believe that corporate bonds offer the best potential for active returns. Global high-yield portfolio manager Michael Weaver continues to invest in companies with strong balance sheets and improving fundamental characteristics. He strives to uncover these companies through in-depth fundamental credit analysis. He aims to look for companies that have predictable businesses and good returns on capital, as well as policies that support credit improvement. Global real estate portfolio manager Steve Buller is positive on the valuation of global REITs. On the margin, Mr. Buller has been focusing more on sector themes, given the prevailing overhang from macro factors affecting REIT market performances. As at September 3,, in terms of asset allocation, the largest amount of the Underlying Fund s assets was invested in global equities followed by global bonds. 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 provides investment advice with respect to the Fund s investment portfolio and arranges for the 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 $44, for the period ended September 3,. 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, sebased on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $66, for the period ended September 3,. 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 Monthly Income Currency Neutral Fund Series A September 3, A Net assets, beginning of period C $ 1.9 $ 1. Total revenue.1.3 Total expenses (excluding distributions) (.13) (.19) Realized gains (losses).38.1 Unrealized gains (losses) (.7).33 Total increase (decrease) from operations C.33.4 From net investment income (excluding dividends) (.3) (.1) From dividends Return of capital Total distributions C,D (.3) (.1) Net assets, end of period C $ 1.9 $ 1.9 Net asset value (s) E $ 13,774 $ 8,23 Securities outstanding E 1,263,96 83,41 Management expense ratio F,G 2.47% 2.48% Management expense ratio before waivers or absorptions F,G 2.3% 2.4% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ 1.97 $ Fidelity Global Monthly Income Currency Neutral Fund Series B September 3, A Net assets, beginning of period C $ 1.9 $ 1. Total revenue.16.3 Total expenses (excluding distributions) (.12) (.18) Realized gains (losses).43.1 Unrealized gains (losses) (.13).27 Total increase (decrease) from operations C From net investment income (excluding dividends) (.4) (.1) From dividends Return of capital Total distributions C,D (.4) (.1) Net assets, end of period C $ 1.91 $ 1.9 Net asset value (s) E $ 28,789 $ 1,86 Securities outstanding E 2,61,94 1,37,88 Management expense ratio F,G 2.3% 2.3% Management expense ratio before waivers or absorptions F,G 2.3% 2.36% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

7 Fidelity Global Monthly Income Currency Neutral Fund Series F September 3, A Net assets, beginning of period C $ 1.6 $ 1. Total revenue Total expenses (excluding distributions) (.6) (.9) Realized gains (losses).43.8 Unrealized gains (losses) (.12).27 Total increase (decrease) from operations C.41.9 From net investment income (excluding dividends) (.11) (.23) From dividends (.1) Return of capital Total distributions C,D (.11) (.24) Net assets, end of period C $ 1.92 $ 1.6 Net asset value (s) E $ 9,32 $ 4,618 Securities outstanding E 98,8 436,18 Management expense ratio F,G 1.11% 1.12% Management expense ratio before waivers or absorptions F,G 1.13% 1.1% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ 1.62 Fidelity Global Monthly Income Currency Neutral Fund Series F September 3, A Net assets, beginning of period C $ 2.78 $ 2. Total revenue Total expenses (excluding distributions) (.12) (.17) Realized gains (losses) Unrealized gains (losses)..36 Total increase (decrease) from operations C From net investment income (excluding dividends) (.21) (.47) From dividends (.1) Return of capital (.29) (.42) Total distributions C,D (.) (.9) Net assets, end of period C $ 21.1 $ 2.78 Net asset value (s) E $ 6,83 $ 4,336 Securities outstanding E 289,97 28,717 Management expense ratio F,G 1.1% 1.1% Management expense ratio before waivers or absorptions F,G 1.11% 1.13% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ 21.1 $

8 Financial Highlights continued Fidelity Global Monthly Income Currency Neutral Fund Series F8 September 3, A Net assets, beginning of period C $ 2.32 $ 2. Total revenue.27.6 Total expenses (excluding distributions) (.12) (.18) Realized gains (losses)..23 Unrealized gains (losses).1.43 Total increase (decrease) from operations C From net investment income (excluding dividends) (.2) (.46) From dividends (.1) Return of capital (.6) (.87) Total distributions C,D (.8) (1.34) Net assets, end of period C $ 2.31 $ 2.32 Net asset value (s) E $ 2,21 $ 2,12 Securities outstanding E 19,146 16,2 Management expense ratio F,G 1.16% 1.16% Management expense ratio before waivers or absorptions F,G 1.17% 1.18% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ Fidelity Global Monthly Income Currency Neutral Fund Series T September 3, A Net assets, beginning of period C $ 2.9 $ 2. Total revenue Total expenses (excluding distributions) (.2) (.38) Realized gains (losses) Unrealized gains (losses) (.3).3 Total increase (decrease) from operations C From net investment income (excluding dividends) (.6) (.29) From dividends (.1) Return of capital (.43) (.8) Total distributions C,D (.49) (.88) Net assets, end of period C $ 2.76 $ 2.9 Net asset value (s) E $ 78 $ 191 Securities outstanding E 34,11 9,29 Management expense ratio F,G 2.47% 2.48% Management expense ratio before waivers or absorptions F,G 2.3% 2.% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

9 Fidelity Global Monthly Income Currency Neutral Fund Series T8 September 3, A Net assets, beginning of period C $ 2.12 $ 2. Total revenue Total expenses (excluding distributions) (.2) (.39) Realized gains (losses) Unrealized gains (losses) (.4).2 Total increase (decrease) from operations C..9 From net investment income (excluding dividends) (.6) (.29) From dividends (.1) Return of capital (.74) (1.2) Total distributions C,D (.8) (1.32) Net assets, end of period C $ $ 2.12 Net asset value (s) E $ 391 $ 11 Securities outstanding E 19,71,74 Management expense ratio F,G 2.1% 2.1% Management expense ratio before waivers or absorptions F,G 2.8% 2.6% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ Fidelity Global Monthly Income Currency Neutral Fund Series S September 3, A Net assets, beginning of period C $ 2.62 $ 2. Total revenue Total expenses (excluding distributions) (.23) (.3) Realized gains (losses).87 Unrealized gains (losses) (.28).27 Total increase (decrease) from operations C.67.4 From net investment income (excluding dividends) (.9) (.31) From dividends (.1) Return of capital (.41) (.6) Total distributions C,D (.) (.88) Net assets, end of period C $ 2.82 $ 2.62 Net asset value (s) E $ 91 $ 282 Securities outstanding E 4,74 13,693 Management expense ratio F,G 2.24% 2.23% Management expense ratio before waivers or absorptions F,G 2.29% 2.31% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

10 Financial Highlights continued Fidelity Global Monthly Income Currency Neutral Fund Series S8 September 3, A Net assets, beginning of period C $ 2.16 $ 2. Total revenue.3.9 Total expenses (excluding distributions) (.23) (.3) Realized gains (losses).6.22 Unrealized gains (losses).2.39 Total increase (decrease) from operations C.74.8 From net investment income (excluding dividends) (.8) (.3) From dividends (.1) Return of capital (.72) (1.1) Total distributions C,D (.8) (1.32) Net assets, end of period C $ 2.3 $ 2.16 Net asset value (s) E $ 3,239 $ 48 Securities outstanding E 162,286 22,82 Management expense ratio F,G 2.32% 2.32% Management expense ratio before waivers or absorptions F,G 2.38% 2.38% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ Fidelity Global Monthly Income Currency Neutral Fund Series E1 September 3, A Net assets, beginning of period C $ 1.6 $ 1. Total revenue Total expenses (excluding distributions) (.12) (.17) Realized gains (losses).6.11 Unrealized gains (losses) (.34).23 Total increase (decrease) from operations C.3.48 From net investment income (excluding dividends) (.) (.16) From dividends Return of capital Total distributions C,D (.) (.16) Net assets, end of period C $ 1.91 $ 1.6 Net asset value (s) E $ 4,916 $ 1,63 Securities outstanding E 41,98 16,848 Management expense ratio F,G 2.23% 2.22% Management expense ratio before waivers or absorptions F,G 2.29% 2.28% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

11 Fidelity Global Monthly Income Currency Neutral Fund Series E1T September 3, J Net assets, beginning of period C $ 2.12 $ 2. Total revenue.27.9 Total expenses (excluding distributions) (.22) (.1) Realized gains (losses)..11 Unrealized gains (losses) Total increase (decrease) from operations C From net investment income (excluding dividends) (.9) From dividends Return of capital (.41) (.2) Total distributions C,D (.) (.2) Net assets, end of period C $ 2.3 $ 2.12 Net asset value (s) E $ 22 $ 218 Securities outstanding E 9,926 1,822 Management expense ratio F,K 2.16% 2.19% Management expense ratio before waivers or absorptions F,K 2.22% 2.24% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ Fidelity Global Monthly Income Currency Neutral Fund Series E2 September 3, J Net assets, beginning of period C $ 1.19 $ 1. Total revenue.17. Total expenses (excluding distributions) (.11) (.) Realized gains (losses).71.6 Unrealized gains (losses) (.2).13 Total increase (decrease) from operations C.2.19 From net investment income (excluding dividends) (.) From dividends Return of capital Total distributions C,D (.) Net assets, end of period C $ 1.49 $ 1.19 Net asset value (s) E $ 1,169 $ 249 Securities outstanding E 111,614 24,41 Management expense ratio F,K 2.16% 2.17% Management expense ratio before waivers or absorptions F,K 2.22% 2.22% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Global Monthly Income Currency Neutral Fund Series E2T September 3, J Net assets, beginning of period C $ 2.13 $ 2. Total revenue.27.1 Total expenses (excluding distributions) (.2) (.1) Realized gains (losses).9.12 Unrealized gains (losses)..24 Total increase (decrease) from operations C From net investment income (excluding dividends) (.11) From dividends Return of capital (.39) (.2) Total distributions C,D (.) (.2) Net assets, end of period C $ 2.33 $ 2.13 Net asset value (s) E $ 1 $ 1 Securities outstanding E 2 1 Management expense ratio F,K 1.98% 2.4% Management expense ratio before waivers or absorptions F,K 2.38% 2.46% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ Fidelity Global Monthly Income Currency Neutral Fund Series P1 September 3, A Net assets, beginning of period C $ 1.6 $ 1. Total revenue Total expenses (excluding distributions) (.6) (.8) Realized gains (losses) Unrealized gains (losses) (.6).13 Total increase (decrease) from operations C.42.6 From net investment income (excluding dividends) (.11) (.24) From dividends (.1) Return of capital Total distributions C,D (.11) (.2) Net assets, end of period C $ 1.92 $ 1.6 Net asset value (s) E $ 3,231 $ 1,372 Securities outstanding E 33, ,63 Management expense ratio F,G 1.% 1.% Management expense ratio before waivers or absorptions F,G 1.7% 1.6% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

13 Fidelity Global Monthly Income Currency Neutral Fund Series P1T September 3, J Net assets, beginning of period C $ 2.17 $ 2. Total revenue.28.1 Total expenses (excluding distributions) (.1) (.) Realized gains (losses).63.3 Unrealized gains (losses) (.2).3 Total increase (decrease) from operations C From net investment income (excluding dividends) (.21) (.) From dividends Return of capital (.29) (.2) Total distributions C,D (.) (.2) Net assets, end of period C $ 2.47 $ 2.17 Net asset value (s) E $ 4,284 $ 3,433 Securities outstanding E 29,212 17,2 Management expense ratio F,K 1.2% 1.% Management expense ratio before waivers or absorptions F,K 1.4% 1.% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ Fidelity Global Monthly Income Currency Neutral Fund Series P2 September 3, J Net assets, beginning of period C $ 1.18 $ 1. Total revenue.1.4 Total expenses (excluding distributions) (.) (.2) Realized gains (losses).27.4 Unrealized gains (losses)..1 Total increase (decrease) from operations C From net investment income (excluding dividends) (.11) (.3) From dividends Return of capital Total distributions C,D (.11) (.3) Net assets, end of period C $ 1.49 $ 1.18 Net asset value (s) E $ 646 $ 426 Securities outstanding E 61,661 41,931 Management expense ratio F,K.97%.99% Management expense ratio before waivers or absorptions F,K.98%.99% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Global Monthly Income Currency Neutral Fund Series P2T September 3, J Net assets, beginning of period C $ 2.18 $ 2. Total revenue.3.24 Total expenses (excluding distributions) (.1) (.4) Realized gains (losses).47 Unrealized gains (losses).23.1 Total increase (decrease) from operations C.9.3 From net investment income (excluding dividends) (.22) (.) From dividends Return of capital (.28) (.2) Total distributions C,D (.) (.2) Net assets, end of period C $ 2.49 $ 2.18 Net asset value (s) E $ 2,77 $ 788 Securities outstanding E 11,324 39,26 Management expense ratio F,K.93% 1.2% Management expense ratio before waivers or absorptions F,K.9% 1.2% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $ Fidelity Global Monthly Income Currency Neutral Fund Series P3 September 3, L Net assets, beginning of period C $ 1.21 $ 1. Total revenue.13. Total expenses (excluding distributions) (.) (.2) Realized gains (losses).46.6 Unrealized gains (losses) (.21).14 Total increase (decrease) from operations C From net investment income (excluding dividends) (.11) (.3) From dividends Return of capital Total distributions C,D (.11) (.3) Net assets, end of period C $ 1.1 $ 1.21 Net asset value (s) E $ 182 $ 398 Securities outstanding E 17,324 39,13 Management expense ratio F,M.91%.93% Management expense ratio before waivers or absorptions F,M.92%.93% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ 1.88 $

15 Fidelity Global Monthly Income Currency Neutral Fund Series P3T September 3, J Net assets, beginning of period C $ 2.17 $ 2. Total revenue.2.1 Total expenses (excluding distributions) (.9) (.4) Realized gains (losses) Unrealized gains (losses) (.3).2 Total increase (decrease) from operations C From net investment income (excluding dividends) (.22) (.6) From dividends Return of capital (.28) (.19) Total distributions C,D (.) (.2) Net assets, end of period C $ 2. $ 2.17 Net asset value (s) E $ 1 $ 1,11 Securities outstanding E 2,12 Management expense ratio F,K.92%.94% Management expense ratio before waivers or absorptions F,K.92%.94% Portfolio turnover rate I 4.84% 2.37% Net asset value per security, end of period $ $

16 Financial Highlights continued Financial Highlights Footnotes A For the period April 22, 216 (inception date) to. B C D E F G H I 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. 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 June 3, 216, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. 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 1% 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. J For the period January 6, (commencement of sale of securities) to. K Effective January 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. L For the period January 26, (commencement of sale of securities) to. M Effective January 3,, 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. 14

17 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 1% 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 1.9% 91.28% 8.72% Series B 1.8%.6% 44.44% Series F.8% 1.% Series F.8% 1.% Series F8.8% 1.% Series T 1.9% % % Series T8 1.9% 27.% 73.% Series S 1.8%.6% 44.44% Series S8 1.8%.6% 44.44% Series E1 1.77% 6.34% 43.66% Series E1T 1.77% 6.34% 43.66% Series E2 1.7% 7.14% 42.86% Series E2T 1.7% 7.14% 42.86% Series P1.77% 1.% Series P1T.77% 1.% Series P2.7% 1.% Series P2T.7% 1.% Series P3.72% 1.% Series P3T.72% 1.% 1

18 Fidelity Global Monthly Income Currency Neutral 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 F Commencement of Operations is June 28, 216 Commencement of Operations is June 28, 216 Series B Series F Commencement of Operations is June 28, 216 Commencement of Operations is June 28, 216 Series F Series T Commencement of Operations is June 28, 216 Commencement of Operations is June 28,

19 Series T8 Series E1T Commencement of Operations is June 28, 216 Commencement of Operations is January 6, Series S Series E Commencement of Operations is June 28, 216 Commencement of Operations is January 6, Series S8 Series E2T Commencement of Operations is June 28, 216 Commencement of Operations is January 6, Series E1 Series P Commencement of Operations is June 28, 216 Commencement of Operations is June 28,

20 Fidelity Global Monthly Income Currency Neutral Fund Past Performance continued Series P1T Series P3T Commencement of Operations is January 6, Commencement of Operations is January 6, Series P Commencement of Operations is January 6, Series P2T Commencement of Operations is January 6, Series P Commencement of Operations is January 26, 18

21 Fidelity Global Monthly Income Currency Neutral Fund Summary of Investment Portfolio as at September 3, Asset Mix % of Fund s Net Assets as at 9/3/17 % of Fund s Net Assets as at 3/31/17 Foreign Equities Foreign Bonds Foreign Preferred Securities Canadian Equities Canadian Bonds Exchange Traded Funds Cash and Cash Equivalents Net Other Assets (Liabilities) (.6) 4. Derivative Exposure % of Fund s Net Assets as at 9/3/17 % of Fund s Net Assets as at 3/31/17 Forward Foreign Currency Contracts.2 (.4) Forward Foreign Currency Contracts percentage is calculated by dividing the net unrealized gain/loss of all contracts held by total net assets. Geographic Mix % of Fund s Net Assets as at 9/3/17 % of Fund s Net Assets as at 3/31/17 United States of America United Kingdom Japan Netherlands Canada Germany Ireland Switzerland France Luxembourg Italy 1.2. Sweden 1.1. Mexico Argentina Belgium 1.. Spain Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) (.6) 4. Maturity Diversification Years % of Fund s Net Assets as at 9/3/17 % of Fund s Net Assets as at 3/31/ Over Quality Diversification % of Fund s Net Assets as at 9/3/17 % of Fund s Net Assets as at 3/31/17 AAA AA.6.7 A 4.3. BBB BB and Below Not Rated Equities Short-Term Investments and Net Other Assets We have used ratings from Moody s Investors Service, Inc. Where Moody s ratings are not available, we have used S&P ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Top Issuers % of Fund s Net Assets 1. Fidelity Global Dividend Investment Trust Series O Fidelity Global Bond Fund Series O Fidelity Global High Yield Investment Trust Series O Fidelity Global Real Estate Fund Series O 6.. Fidelity Emerging Markets Debt Investment Trust Series O.1 6. Fidelity Convertible Securities Investment Trust Series O. 7. ishares Barclays TIPS Bond ETF Fidelity High Income Commercial Real Estate Investment Trust Series O Fidelity Global Intrinsic Value Investment Trust Series O Fidelity Floating Rate High Income Investment Trust Series O 1. Total Fund Net Assets $83,, Where applicable, the information in the above tables includes the Fund s pro-rata share of the investment in any Fidelity Underlying Fund

22 Summary of Investment Portfolio as at September 3, continued The Fund uses derivatives to try to minimize the exposure to currency fluctuations between foreign currencies in developed markets and the Canadian dollar. The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite 3, Toronto ON MG 2N7 or by visiting our web site at or SEDAR at 2

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24 Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario MG 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario MG 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-HGMI-MRFPS-1117