Fidelity Prospectus for Hong Kong Investors

Transcription

1 Fidelity Funds Société d investissement à capital variable Established in Luxembourg Fidelity Prospectus for Hong Kong Investors A commitment to investment performance

2 Fidelity Funds Please Note: Fidelity Funds is an umbrella fund with funds investing in equities, debt, money market securities and/or other instruments, including derivatives. Some funds can invest in emerging market securities which may be more volatile and subject to greater political and economic risks. The funds which invest primarily in a single sector or market are subject to higher concentration risk. Some funds can invest in non-investment grade bonds which may be more volatile and subject to greater credit and liquidity risks. Some funds invest in derivative instruments and/or structured products such as assetbacked or mortgage-backed securities which can involve additional material risks such as counterparty risks or credit and liquidity risk which may lead to high risks of capital loss. Some derivative instruments and structured products may employ leverage which can cause greater volatility. In an extreme scenario, the value of the fund may be worth substantially less than the original amount you have invested and in the worst case could be worth nothing. FIL Investment Management (Hong Kong) Limited January 2017

3 FIL Investment Management (Hong Kong) Limited Level 21, Two Pacific Place, 88 Queensway Admiralty, Hong Kong Tel: (852) Fax: (852) THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Dear Shareholder, 29 December 2017 Unaudited Semi-Annual Report and Accounts of Fidelity Funds for the Period Ended 31 October 2017 We are pleased to inform you that the unaudited semi-annual report and accounts of Fidelity Funds (the Fund ) for the period ended 31 October 2017 is now available and accessible via the Fidelity Website* at Shareholders may request for printed copies of the unaudited semi-annual report and accounts free of charge. We would also like to take this opportunity to inform you of the below changes: Changes to Class Y Shares In light of MIFID II requirements, the eligibility criteria for Class Y Shares have been amended to clarify that Class Y Shares are eligible (i) to certain financial intermediaries or institutions for their investment services, which are exclusively remunerated by their clients, and either have separate fee based advisory arrangements with their clients or provide independent advice or discretionary portfolio management; and (ii) to other investors or intermediaries at the Board's, the Management Company's or their delegates' discretion. Consequently and to better reflect current market practice, the minimum investment amount for Class Y shares will be reduced from USD 1 million to USD 2,500 with effect from 31st January 2018 (or such later date as may be decided by the Board). The Fund s Hong Kong offering documents will be updated at the next available opportunity to reflect the above changes. If you have any questions related to the above or if you would like to request for a copy of the Hong Kong offering documents, the Articles of Incorporation, the latest audited annual report and accounts and unaudited semi-annual report and accounts of the Fund (which is also available at *) or other material agreements relating to the Fund, please contact your usual Financial Adviser or the Fidelity Investor Hotline^ at , or you can write to the Hong Kong Representative at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong. Any terms not defined herein shall have the same meaning as in the Fidelity Prospectus for Hong Kong Investors. Thank you for your continued support of Fidelity. Yours faithfully, Mark Talbot Managing Director, Asia Pacific Signed on behalf of FIL Investment Management (Hong Kong) Limited As the Hong Kong Representative of Fidelity Funds * The website has not been reviewed by the Hong Kong Securities and Futures Commission. ^ International Toll-free Number , available to calls from Australia, Canada, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and USA. Service may not be available for certain mobile carriers. The + sign represents the International Access Prefix. China Toll-free Number: The Fidelity Investor Hotline is available from 9am to 6pm, Monday to Friday (except Hong Kong public holidays). Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited.

4 Fidelity Funds Société d Investissement à Capital Variable 2a, rue Albert Borschette, L-1246 B.P. 2174, L-1021 Luxembourg R.C.S. Luxembourg B34036 Tél: (1) Fax: THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Important changes to information in the Fidelity Funds Prospectus Fidelity Funds - Asian Total Return Bond Fund Fidelity Funds - China High Yield Fund Fidelity Funds - Emerging Markets Focus Fund (the Sub-Funds ) Key Facts We intend to enhance the level of information provided in the Fidelity Funds Hong Kong Prospectus (the Prospectus ) to make it clearer where and how derivatives are used. This requires the following changes to the investment policies and objectives of the Sub-Funds that will take effect from 28 February 2018: Amendments to the definition of primarily or principally to clarify that investments may also be achieved indirectly through derivatives or other instruments; Enhanced description of the types of derivatives and the purposes for which they are used; and Clarification regarding the use of derivatives for investment purposes on a nonextensive basis. The above changes are not expected to change the current extent or usage of derivatives by, or change the existing risk profile of the Sub-Funds. 31 January 2018 Dear Shareholder, I am writing to notify you of a decision taken by the Board of Directors of Fidelity Funds (the Directors ) to amend certain disclosures in the Prospectus with respect to the use of financial derivative instruments. This decision has been taken to help investors more clearly understand the use of various investment instruments and techniques within the Sub-Funds of Fidelity Funds so that they, in turn, are better informed about the potential suitability of the Sub-Funds to their needs. The investment objectives of the relevant Sub-Funds of Fidelity Funds using the definition primarily or principally will be amended to clarify the use of derivative instruments. Where the objectives state that portfolios should be primarily or principally invested in specific asset classes, it will be made clear that this may be achieved through physical assets, derivatives or other such investment instruments. Please refer to Appendix 2 for further details on the amendments. The following enhancements will be applicable to funds within all categories in Fidelity Funds except for the Cash Funds and the Systematic Multi Asset Risk Targeted Funds. The improvements will be implemented by amending the general investment policies of the Sub-Funds as follows: 1) Introducing an enhanced description of the types of derivative instruments used and the purpose for which they are used. 1

5 2) Where the use of derivatives is currently permitted for the generation of additional capital or income, it will be clarified that this also includes the use of derivatives for investment purposes on a non-extensive basis. This means that derivatives may be used to gain or increase exposure to an underlying asset (as distinct from hedging or risk reduction) but in such a way that it does not increase the level of risk that a fund can take in line with its investment objective. Please refer to Appendix 1 for the full text of the above enhancements. These changes will come into effect on 28 February 2018 or such later date as may be decided by the Directors (the Effective Date ). Upon the changes taking effect, exposure to the primary or principal investments of the Sub-Funds may be obtained through means that are both direct and indirect e.g. using derivatives to obtain exposure to the underlying assets. None of the amendments described above will change the existing risk profiles of the Sub- Funds as described in the Prospectus or change the manner in which the Sub-Funds are currently being managed. It is expected that the Sub-Funds will not use derivatives extensively for investment purposes as a result of the proposed changes as the current extent / usage of derivatives by such Sub-Funds are expected to remain unchanged. Furthermore, there will be no change to the current fee structure of the Sub-Funds as a result of the changes described here. Existing investors rights or interests will not be materially prejudiced as a result of the proposed changes outlined above. Any costs in connection with the proposed changes (e.g. costs associated with shareholder mailings) will be borne by the management company of Fidelity Funds. The Directors accept full responsibility for the accuracy of the information contained in this letter. They confirm that, having made all reasonable enquiries, to the best of their knowledge and belief, there are no other facts the omission of which would make any statement herein misleading. If you have any questions relating to these changes, or if you would like to request a copy of the Prospectus, the Product Key Facts Statement of any of the Sub-Funds, the Articles of Incorporation, the latest audited annual report and accounts and unaudited semi-annual report and accounts (which is also available at *) or other material agreements relating to Fidelity Funds, please contact your usual financial adviser or the Fidelity Investor Hotline^ at , or you can write to the Hong Kong Representative at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong. Yours faithfully, Nishith Gandhi Director, FIL (Luxembourg) S.A., Corporate Director, Fidelity Funds * This website has not been reviewed by the Hong Kong Securities and Futures Commission. ^ International Toll-free Number , available to calls from Australia, Canada, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and USA. Service may not be available for certain mobile carriers. The + sign represents the International Access Prefix. China Toll-free Number: The Fidelity Investor Hotline is available from 9am to 6pm, Monday to Friday (except Hong Kong public holidays). Fidelity, Fidelity International, the Fidelity International logo and the F symbol are trademarks of FIL Limited. 2

6 Appendix 1 Changes to Investment Policies The derivatives-related enhancements to the investment policy for each fund category as described in (1) and (2) of this letter will apply to the Sub-Funds: Fidelity Funds - Asian Total Return Bond Fund (Bond Funds) Fidelity Funds - China High Yield Fund (Bond Funds) Fidelity Funds - Emerging Markets Focus Fund (Equity Funds) 3

7 EQUITY FUNDS The aim of the Equity funds is to provide investors with long-term capital growth from diversified and actively managed portfolios of securities. or related instruments, including financial derivative instruments. Unless otherwise specified in the investment objective, the income from these funds is expected to be low. The Equity funds will invest primarily (at least 70% in value) and principally (at least 70% and normally 75% in value) inin, or achieve exposure to equities in the markets and sectors reflected in the name of each individual fund and in companies established outside those markets but which derive a significant proportion of their earnings from those markets. For any remaining assets, the Investment Manager has the freedom to invest outside the fund s principal geographies, market sectors, currency or asset classes. In selecting securities for the funds, several factors are considered in the investment process; for example, consideration may include, but is not limited to, a company s financials, including revenue and profit growth, return on capital, cash flows and other financial measures. In addition, company management, industry and economic environment, and other factors may be considered in the investment process. All Equity funds may use financial derivative instruments provided (a) they are economically appropriate in that they are realised in a costeffective way, (b) they are entered into for one or more of (i) reduction of risk, (ii) reduction of costand, (iii) generation of additional capital or income for the Equity funds (including for investment purposes on a non-extensive basis) with a level of risk which is consistent with the risk profile of the relevant Equity fund(s) and the risk diversification rules laid down in Part V. (5.1, A. III) of the Prospectus, and (c) their risks are adequately captured by the risk management process of the Fund*. Financial derivative instruments such as futures, contracts for difference and equity swaps may includebe used to synthetically replicate the performance of a single stock, basket or index of equity securities. Options such as puts, calls and warrants may be used to afford funds the right or obligation to buy or sell equity at a predetermined value and thereby either generate capital growth, income, or reduce risk. Forwards, non-deliverable forwards and currency swaps may also be used to manage currency exposures within a fund. Financial derivative instruments may be over-the-counter ( OTC ) and/or exchange traded options, equity index and single stock futures, contracts for difference, forward contracts or a combination thereof.instruments. Certain Equity funds may in addition make extensive use of financial derivative instruments or use complex derivative instruments or strategies to meet the investment objectives of the funds. When an Equity fund has such extended derivative powers this will be mentioned in the investment objective of the relevant fund. Unless otherwise specified in the notes to a fund under the title Global Exposure, the method used to calculate the global exposure relating to financial derivative instruments is the commitment approach (please refer to Part V, 5.1., D. of the Prospectus for further details). While the judicious use of financial derivative instruments may be beneficial, financial derivative instruments also involve risks different from, and, in certain cases greater than the risks presented by more traditional investments. The use of financial derivative instruments may cause the Share price to be more volatile. For a further description of risks relating to the use of financial derivative instruments please refer to Risk Factors, Part I (1.2) of the Prospectus. Certain Equity funds will be referred herein as Equity Income funds. While pursuing the same investment policy, these funds will intend to provide higher income than the other Equity funds. For the funds that are specifically allowed by their investment objective to make direct investments in China A Shares, such investments may, in addition to the QFII quota, be made through any permissible means available to the funds under prevailing laws and regulations (including through the Stock Connect or any other eligible means). Investor Profile Equity funds may be suitable for investors who wish to participate in equity markets while being prepared to accept the risks described for each Equity fund under Risk Factors, Part I (1.2) of the Prospectus. Investment in an Equity fund should be regarded as a long-term investment. * The use of financial derivative instruments in line with these criteria is referred to as Efficient Portfolio Management under the Regulation of

8 BOND FUNDS The aim of the Bond funds is to provide investors with relatively high income with the possibility of capital gains. They may invest in bonds or debt instruments which, or achieve exposure to, bonds, debt instruments or elements of their return (such as credit, interest rate or foreign exchange elements). Such bonds or debt instruments can, among others, be issued by governments, agencies, supra-nationals, private or publicly quoted companies, special purpose or investment vehicles, or trusts, which are linked to the geographies, sectors, credit quality, currency and asset classes reflected in the investment objective of each individual fund. Power is reserved to invest up to 100% of the assets of any fund in securities issued or guaranteed by certain government and other public bodies as described more fully in Part V, section A of the Prospectus. For any remaining assets, the Investment Manager has the freedom to invest outside the fund s principal geographies, market sectors, credit quality, currency or asset classes (which may include, but are not limited to, securitized or structured debt instruments and loans). The Bond funds may pay fixed or variable coupons, whereby the variable element may be derived from prevailing market interest rates or the performance of other assets (e.g. asset-backed securities). Unless otherwise specified, asset-backed securities and mortgage-backed securities will not exceed 20% of the net assets of each fund, provided that such limit will not apply to investments in such securities issued or guaranteed by the United States government or United States government sponsored entities. The repayment of a bond may have a fixed date or may be subject to some issuer discretion (e.g. some mortgage bonds). Bonds can have conversion or subscription rights to other assets attached to them (e.g. convertible bonds). Not all bonds or debt instruments will have been rated by one or several rating agencies; some may have a below investment grade rating. Any reference in this section to investment grade securities shall mean securities with a rating of BBB- or higher from Standard & Poor s or equivalent rating from an internationally recognised rating agency. Any reference in this section to sub investment grade securities shall mean securities with a rating of BB+ or less from Standard & Poor s or equivalent rating from an internationally recognised rating agency. In selecting bond securities, several factors are considered in the investment process; for example, consideration may include, but is not limited to, a company s financials, including revenue and profit growth, balance sheet health and positioning, cash flows, and other financial measures. In addition, company management, industry and economic environment, and other factors may be considered in the investment process. Occasionally, investments for all Bond funds may be made in bonds issued in currencies other than the fund s Reference Currency. The Investment Manager may choose to hedge currency exposures through the use of instruments such as forward foreign exchange contracts. With due consideration given to the restrictions on investments required by applicable law and regulations and on an ancillary basis, the Bond funds may further hold cash and cash equivalents (including Money Market Instruments and time deposits) up to 49% of their net assets. This percentage may exceptionally be exceeded if the Directors consider this to be in the best interests of the Shareholders. The Bond funds may have non-material exposure to loans that comply with the criteria applicable to Money Market Instruments for the purposes of the Law of Some Bond funds may have a higher exposure to such instruments as further detailed in the notes to the relevant funds. All Bond funds may use financial derivative instruments provided (a) they are economically appropriate in that they are realised in a cost-effective way, (b) they are entered into for one or more of (i) reduction of risk, (ii) reduction of cost and (iii) generation of additional capital or income for the Bond funds (including for investment purposes on a non-extensive basis) with a level of risk which is consistent with the risk profile of the relevant Bond fund(s) and the risk diversification rules laid down in Part V. (5.1, A. III) of the Prospectus, and (c) their risks are adequately captured by the risk management process of the Fund*. Financial derivative instruments may include over-the-counter and/or exchange traded options, be used to (i) increase or reduce exposure to interest rate risk (including inflation) through the use of interest rate or bond futures, options, swaptions and interest rate, total return or inflation swaps (ii) buy or sell part or all of the credit risk relating to single issuer, or multiple issuers referenced in a basket or index through the use of options, credit default and total return swaps (single name and baskets), inflation index and (iii) to hedge, reduce or increase exposure to currencies through the use of forwards, including non-deliverable forwards and currency swaps, forward contract or a combination thereof.. Financial derivative instruments may also be used to replicate the performance of physically held securities. Other fixed income strategies may include positions that benefit from a decline in value or that give exposure to certain elements of returns of a particular issuer or asset in order to provide returns that are unrelated to those of the general market, or positions that would not have been available without the use of financial derivative instruments. Financial derivative instruments may be over-the-counter ( OTC ) and/or exchange traded instruments on underlying assets. Certain Bond funds may in addition make extensive use of financial derivative instruments or use complex derivative instruments or strategies to meet the investment objectives of the funds. When a Bond fund has such extended derivative powers this will be mentioned in the investment objective of the relevant fund. Unless otherwise specified in the notes to a fund under the title Global Exposure, the method used to calculate the global exposure relating to financial derivative instruments is the commitment approach (please refer to Part V, 5.1., D. of the Prospectus for further details). While the judicious use of financial derivative instruments may be beneficial, financial derivative instruments also involve risks different from, and, in certain cases greater than the risks presented by more traditional investments. The use of financial derivative instruments may cause the Share price to be more volatile. For a further description of risks relating to the use of financial derivative instruments please refer to Risk Factors, Part I (1.2) of in the Prospectus. For the funds that are specifically allowed by their investment objective to make direct investments in onshore China fixed income securities, such investments may, in addition to the QFII quota, be made through any permissible means available to the funds under prevailing laws and regulations. Investor Profile Bond funds may be suitable for investors who wish to participate in debt markets while being prepared to accept the risks described for each Bond fund under Risk Factors, Part I (1.2) of the Prospectus. Investment in a Bond fund should be regarded as a long-term investment. * The use of financial derivative instruments in line with these criteria is referred to as Efficient Portfolio Management under the Regulation of

9 Appendix 2 Change to Definitions The definition of primarily will change as follows: primarily Each time this word is used in the description of a fund or a class of Shares or a type of fund or class of Shares of the Fund, this means that at least 70% of the assets of the relevant fund are directly or indirectly as specifically provided for in the relevant investment objective, invested in the currency, the country, the type of security or other material element set out in the name of the fund, the fund s investment objective and the investment policy of the relevant fund s range. The definition of principally will change as follows: principally Each time this word is used in the description of a fund or a class of Shares or a type of fund or class of Shares of the Fund, this means that at least 70% (and normally 75%) of the assets of the relevant fund are directly or indirectly as specifically provided for in the relevant investment objective, invested in the currency, the country, the type of security or other material element set out in the name of the fund, the fund s investment objective and the investment policy of the relevant fund s range. 6

10 Fidelity Funds Société d Investissement à Capital Variable 2a, rue Albert Borschette, L-1246 B.P. 2174, L-1021 Luxembourg R.C.S. Luxembourg B34036 Tél: (1) Fax: THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Important Changes to Fidelity Funds Global High Grade Income Fund Key Facts We are changing the name of Fidelity Funds - Global High Grade Income Fund to Fidelity Funds - Global Short Duration Income Fund. The Fund s investment objective and risk profile will change. Due to the expanded investment universe of the new strategy, we are increasing the annual management charge on A shares to 0.75%. Shareholder Choices If you agree with the change you do not need to take any action. If you do not agree with the changes this letter sets out the options available to you. 7 November 2017 Dear Shareholder, We are writing to notify you of the decision taken by the board of directors of Fidelity Funds (the Board ) to 1) change the name of Fidelity Funds Global High Grade Income Fund (the Fund ) to Fidelity Funds - Global Short Duration Income Fund with effect from 7 December 2017 or such later date as may be decided by the Board (the Effective Date ); 2) change the investment objective of the Fund on the Effective Date, as described in Appendix 1; and 3) to increase the Annual Management Fee charged on the Fund. On A shares the fee will increase from 0.50% to 0.75%, with effect on 2 April 2018 or such later date as may be decided by the Board. Our records show that you are a shareholder in the Fund (the Shareholders or you ). For more information on the impacted classes of Shares and the corresponding ISIN Codes, please refer to Appendix 2. Any terms not defined herein shall have the same meaning as in the Fidelity Prospectus for Hong Kong Investors (the Prospectus ). Change of Name and Investment objective The Fund will change its name and investment objective in response to significant appetite for Fidelity to develop a short duration fixed income product that seeks to deliver attractive income to investors whilst demonstrating low sensitivity to changes in interest rates. Bonds that exhibit low price sensitivity to interest rates are referred to as short duration bonds. After the Effective Date, the Fund will be based upon a similar investment process and strategic asset allocation to that of another fund within Fidelity Funds, namely Fidelity Funds Global Income Fund, but with a shorter duration profile. 1

11 The proposed changes to the strategy will result in the Fund investing across a broader fixed income universe. It will have greater flexibility to invest in investment grade corporate bonds and up to 50% of its assets in high yield bonds, including high yielding debt securities, which normally carry sub-investment grade ratings. As a result of the change to its investment objective, the Fund will change its name to better reflect the Fund s duration profile, which will cap duration at three years. In view of the proposed revised investment objectives and the enhanced investment flexibility, the Fund may be subject to additional / increased investment risks including but not limited to risks relating to investments in emerging markets, below investment grade / unrated and high yielding debt instruments, Renminbi currency risk and China fixed income instruments. Increase of Annual Management Fees The new strategy results in a high degree of active management within the portfolio, including having a wider asset mix and increased investment flexibility, as well as the ability to invest in high yield and other bonds that require a greater degree of research intensity. Today, the rate of the annual management fee per annum on the Fund stands at 0.50% for class A share classes. Due to the manner in which the Fund will be managed going forward the Board believe that it would be appropriate to increase the annual management fee to a rate of 0.75% per annum on A share classes. The effective date for the increase in annual management fees will be 2 April 2018 or such later date as may be decided by the Board. Apart from the proposed increase of the annual management fees, there are no other impacts that may materially prejudice the existing investors rights or interests as a result of the proposed changes outlined above. Costs Charges associated with the changes such as legal, regulatory and mailing charges will be borne by FIL Fund Management Limited as the Investment Manager of Fidelity Funds. The Fund will bear the market-related transaction costs associated with the rebalancing of the Fund s investment portfolio. Next Steps If you agree with the proposed changes, you do not need to take any action. If you are not in agreement with these changes, we are offering you a free switch into any other fund of Fidelity Funds available to you, or you may choose to redeem your assets from the Fund free of redemption charge. Redemptions or switches can be instructed on any valuation day until 17:00 HK time #, either on 6 December 2017 in respect of the Change of Name and Investment objective of the Fund (which will come into effect on the Effective Date) or on 30 March 2018 in respect of the Increase of Annual Management Fees (which will come into effect on 2 April 2018 or such later date as may be decided by the Board), and will normally be dealt with at the next calculated Net Asset Value. Please note, the redemption or switching of your holding may be deemed as a disposal for tax purposes. If you have any concerns about your tax position, we recommend that you seek independent tax advice. The change will be reflected in the next update to the Prospectus and the Product Key Facts Statement ( KFS ) of the Fund. The Board accepts full responsibility for the accuracy of the information contained in this letter and confirms, having made all reasonable enquiries that to the best of its knowledge and belief there are no other facts the omission of which would make any statement herein misleading. # Please note that some distributors or other intermediaries may charge additional fees (such as switching or transaction fees) or expenses at their own discretion. For further information on these please contact your financial adviser or your usual contact at the distributor / intermediary whom you transact with. 2

12 Any terms not defined herein shall have the same meaning as in the prospectus of Fidelity Funds. If you have any questions related to the changes or if you would like to request for a copy of the current Prospectus, the KFS of the Fund, the Articles of Incorporation, the latest audited annual report and accounts and unaudited semi-annual report and accounts of Fidelity Funds (which is also available at or other material agreements relating to Fidelity Funds, please contact your usual Financial Adviser or the Fidelity Investor Hotline^ at , or you can write to the Hong Kong Representative at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong. I would like to thank you for your investment and I look forward to helping you with future requests. If you have any questions related to these changes please contact your usual Financial Adviser or your usual Fidelity Service Centre. Yours faithfully, Jon Skillman Director * This website has not been reviewed by the Securities and Futures Commission (SFC) in Hong Kong. ^ International Toll-free Number , available to calls from Australia, Canada, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and USA. Service may not be available for certain mobile carriers. The + sign represents the International Access Prefix. China Toll-free Number: The Fidelity Investor Hotline is available from 9am to 6pm, Monday to Friday (except Hong Kong public holidays). Fidelity, Fidelity International, the Fidelity International logo and the F symbol are trademarks of FIL Limited. 3

13 Appendix 1 - Investment objective changes From: Fund Name Investment Objective Notes Fidelity Funds Global High Grade Income Fund This fund seeks to provide an attractive current income by investing primarily in a worldwide diversified portfolio of high quality and short-dated bonds that are issued and denominated in approximately 10 chosen markets/currencies. High quality bonds are considered bonds that are issued by governments, quasigovernment and supranational entities with investment grade credit ratings. Reference Ccy: USD To: Fund Name Investment Objective Notes Fidelity Funds Global Short Duration Income Fund This fund seeks to deliver an attractive income whilst maintaining an average duration of investments that does not exceed three years. The fund primarily invests in a portfolio of global fixed income securities, including, but not limited to, investment grade corporate bonds and government bonds of varying maturities, and high yield bonds and emerging market debt denominated in various currencies. Emerging market debt may include investments within, although not limited to, Latin America, South East Asia, Africa, Eastern Europe (including Russia) and the Middle East. The fund may invest into Money Market Instruments and/or other short term debt instruments including certificates of deposit, commercial paper and floating rate notes, as well as in cash and cash equivalents. The fund may invest its net assets directly in onshore China fixed income securities listed or traded on any Eligible Market in China. The portfolio seeks to maintain an overall average credit rating of investment grade, but the fund may invest up to 50% of its assets in high yield bonds. Portfolio information: The average credit rating is the weighted average of all fixed income securities credit ratings in the fund (including investments through derivatives) and excluding cash. At least 50% of the portfolio will be invested in investment grade fixed income securities, with the balance invested in, but not limited to, high yielding debt securities, which normally carry sub-investment grade ratings and emerging market debt. Such balance will not be required to meet minimum credit rating standards. Not all securities will be rated for creditworthiness by an internationally recognized rating agency. The manager is not restricted in his choice of companies either by region or country, and will choose bonds largely determined by the availability of attractive investment opportunities. Onshore China fixed income securities are listed or traded on any Eligible Market in China, and are issued by a variety of issuers such as government, quasigovernment, banks, financial institutions or other corporate entities established or incorporated in China or corporate entities with commercial activities in China. Reference Ccy: USD The fund can directly invest in onshore China fixed income securities listed or traded on any Eligible Market in China through the QFII quota of FIL Investment Management (Hong Kong) Limited. The fund may invest up to 10% of its net assets directly in onshore China fixed income securities (with aggregate exposure including direct and indirect investments up to 30% of its assets). Eligible Market in China refers to the Shanghai Stock Exchange, the Shenzhen Stock Exchange or the mainland China interbank bond market, as the case may be. This fund may invest up to 10% of its net assets in loans that comply with the criteria applicable to Money Market Instruments for the purposes of the Law of 2010 (within the 10% limit as set out under Part V, A. I 2. of the Prospectus). As rated by internationally recognised rating agencies. 4

14 Appendix 2 - List of ISIN Codes Classes of Shares ISIN Codes FF - Global High Grade Income Fund A-ACC-EUR LU FF - Global High Grade Income Fund A-ACC-USD LU FF - Global High Grade Income Fund A-MDIST-USD LU

15 Fidelity Funds Société d Investissement à Capital Variable 2a, rue Albert Borschette, L-1246 B.P. 2174, L-1021 Luxembourg R.C.S. Luxembourg B34036 Tél: (1) Fax: THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Important changes to Fidelity Funds EURO STOXX 50 TM Fund Key Facts A clarification is being made to the wording of the investment objective of Fidelity Funds EURO STOXX 50 Fund. There will be no change to the way in which the Fund is managed. The clarification will lead to a 0.05% reduction in the ongoing charges that you currently pay. Shareholder Choices If you agree with the changes proposed in this letter, you do not need to take any action. If you do not agree with the changes, this letter sets out the options available to you. 7 November 2017 Dear Shareholder, I am writing to inform you of a clarification to the wording of the investment objective of Fidelity Funds EURO STOXX 50 Fund (the Fund ) and the reduction of the ongoing charges figures (the OCF ) of the share classes within the Fund (collectively, the Changes ). The Changes will take effect from 1 January 2018 or such later date as may be decided by the board of directors (the Board ) of Fidelity Funds (the Effective Date ). Our records show that you are a shareholder in the Fund (the Shareholders or you ). For more information on the impacted class of Shares and the corresponding ISIN Code, please refer to the Appendix enclosed herein. Any terms not defined herein shall have the same meaning as in the Fidelity Prospectus for Hong Kong Investors (the Prospectus ). Rationale for and Impact of the Changes This investment objective clarification will enable the Fund to qualify for an exemption from the annual Luxembourg subscription tax of 0.05%. Consequently, and while there is no change to the way in which the Fund is managed, the Ongoing Charges Figures (OCF) for the Fund will be reduced from the Effective Date. Details of the current and revised OCF fees are shown in the table below. 1

16 On the Effective Date, the Fund s investment objective in the Prospectus will be changed as follows: From: Fund Name Fidelity Funds EURO STOXX 50 Fund Investment Objective Aims to track the performance of the EURO STOXX 50 TM Index as far as this is reasonably and legally practicable. The fund manager s policy for achieving this objective is by the utilisation of replication methodology. The fund manager will aim to hold mainly all securities that represent the EURO STOXX 50 TM Index. In order to achieve the investment objective, the fund manager will utilise stock index futures. Reference Ccy: Euro EURO STOXX 50 is a mark of STOXX LIMITED and has been licensed for certain purposes by Fidelity Funds. EURO STOXX 50 Index is owned by STOXX LIMITED. The name of the index is a service mark of STOXX LIMITED and has been licensed for certain purposes by Fidelity Funds by STOXX LIMITED. All rights reserved. This fund will be managed by Geode Capital Management, LLC as from 3 January 2017 or such later date as decided by the Investment Manager. In the latter case the Prospectus will be amended accordingly. For further information please refer to 1.4. Additional Information. To: Fund Name Fidelity Funds EURO STOXX 50 Fund Investment Objective The fund aims to track the performance of the EURO STOXX 50 Index (before fees and expenses) thereby seeking to achieve long term capital growth. The fund uses an index tracking (also known as passive ) investment management approach whereby it aims to replicate the composition of the index. However, for reasons such as liquidity or excessive cost, it may not always be practical for the fund to invest in every company share in the index or at its weighting within the index. In order to manage the cash position, the fund may invest in collective investment schemes (such as liquidity funds), including those managed by FIL Group, in addition to money market instruments, cash and deposits. As well as investing directly in company shares, the fund will also achieve exposure indirectly through the use of derivatives for efficient portfolio management purposes, for example, at the time of cash inflows to remain fully invested or to reduce transaction costs. EURO STOXX 50 is a registered trademark of STOXX Limited and has been licensed for certain purposes by Fidelity Funds. The fund described herein is neither sponsored nor promoted, distributed or in any other manner supported by STOXX Limited and STOXX Limited does not assume any liability with respect thereto. This fund is managed by Geode Capital Management, LLC. For further information please refer to 1.4. Additional Information. 2

17 Consequently, the OCF for the Fund will be reduced from the Effective Date as shown below: Share Class (ISIN) A-Euro (LU ) A-ACC-Euro (LU ) Current Fees Fees from 1 January 2018 OCF% OCF% (Estimated) I am taking the occasion of this letter to inform you that a new contractual obligation requires the name of the Fund to read Fidelity Funds - Euro STOXX 50 Fund instead of Fidelity Funds EURO STOXX 50 Fund and that the Notes column for the Fund has also been amended accordingly. Shareholder Choices 1. If you agree with the Changes you do not need to take any action. 2. You may redeem your existing Shares in the Fund free of charge. If you wish to switch or redeem, you should contact either your financial adviser or usual Fidelity Service Centre. Any instruction to switch or redeem should be made in writing before 5.00pm HK time on 29 December Instructions will normally be dealt at the next calculated net asset value. Different procedures may apply if dealing is made through a financial adviser or other fund distributor #. For further information on these arrangements, please contact your financial adviser or your usual Fidelity Service Centre. Mailing charges associated with the changes will be borne by FIL Fund Management Limited as the Investment Manager of Fidelity Funds. The Changes will be reflected in the next update to the Prospectus and the Product Key Facts Statement ( KFS ) of the Fund. The Board accepts full responsibility for the accuracy of the content of this letter and confirms, having made all reasonable enquiries, that to the best of its knowledge and belief there are no other facts the omission of which would make any statement herein misleading. I would like to thank you for your investment and I look forward to helping you with future requests. If you have any questions related to this proposal or if you would like to request for a copy of the Prospectus, the KFS of the Fund, the Articles of Incorporation, the latest audited annual report and accounts and unaudited semi-annual report and accounts of Fidelity Funds (which is also available at or other material agreements relating to Fidelity Funds, please contact your usual Financial Adviser or the Fidelity Investor Hotline^ at , or you can write to the Hong Kong Representative at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong. Yours faithfully, Nishith Gandhi Director, FIL (Luxembourg) S.A. Corporate Director, Fidelity Funds CL # Please note that some distributors or other intermediaries may charge additional fees (such as transaction fees) or expenses at their own discretion. For further information on these please contact your financial adviser or your usual contact at the distributor / intermediary whom you transact with. * This website has not been reviewed by the Securities and Futures Commission (SFC) in Hong Kong. ^ International Toll-free Number , available to calls from Australia, Canada, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and USA. Service may not be available for certain mobile carriers. The + sign represents the International Access Prefix. China Toll-free Number: The Fidelity Investor Hotline is available from 9am to 6pm, Monday to Friday (except Hong Kong public holidays). Fidelity, Fidelity International, the Fidelity International logo and the F symbol are trademarks of FIL Limited. 3

18 Appendix Share classes and ISIN codes: Fidelity Funds - EURO STOXX 50 Fund A-Euro (LU ) Fidelity Funds - EURO STOXX 50 Fund A-ACC-Euro (LU ) 4

19 FIL Investment Management (Hong Kong) Limited Level 21, Two Pacific Place, 88 Queensway Admiralty, Hong Kong Tel: (852) Fax: (852) Fidelity Funds (the Fund ) Fidelity Funds EURO STOXX 50 TM Fund (the Sub-Fund ) 23 June 2017 Dear Shareholder, The Securities and Futures Commission (the SFC ) requires all SFC-authorised index funds (including the Sub-Fund) to disclose the up-to-date weightings of the top 10 largest constituent securities of the underlying index (being the EURO STOXX 50 TM Index, in the case of the Sub-Fund) in both the Product Key Facts Statement ( KFS ) and the Hong Kong Prospectus ( Prospectus ) within a month of the date of publication. We have become aware that the above disclosure requirements have not been fully addressed in the current Fund Prospectus and KFS previously issued in respect of the Sub-Fund. Investors should note that as at 31 May 2017, the top 10 largest constituent securities of the EURO STOXX 50 TM Index were: Rank Company ICB Super-Sector* Weighting (as % of Index) 1. TOTAL OIL & GAS SIEMENS INDUSTRIAL GOODS & SERVICES SANOFI HEALTH CARE BAYER CHEMICALS SAP TECHNOLOGY BANCO SANTANDER BANKS UNILEVER PERSONAL & HOUSEHOLD GOODS ALLIANZ INSURANCE ANHEUSER-BUSCH INBEV FOOD & BEVERAGE BASF CHEMICALS 3.19 Investors may obtain the latest index information and other important news of the Index at the website of the index provider, This website has not been reviewed by the SFC. We apologise for any inconvenience this issue may have caused, and wish to assure you that neither you nor the Sub-Fund have been adversely affected as a result of this matter, and that the Sub-Fund has always been managed in accordance with its investment objective and policy. Our internal product documentation process has been enhanced to prevent similar incidents in the future. If you have any questions concerning this matter, please contact the Fidelity Investor Hotline^ at Yours faithfully, Mark Talbot Managing Director, Asia Pacific Signed on behalf of FIL Investment Management (Hong Kong) Limited as Hong Kong Representative of Fidelity Funds * This is determined by the Industry Classification Benchmark ( ICB ), which is an industry classification taxonomy used to segregate markets into sectors within the macroeconomy. ^ International Toll-free Number , available to calls from Australia, Canada, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and USA. Service may not be available for certain mobile carriers. The + sign represents the International Access Prefix. China Toll-free Number: The Fidelity Investor Hotline is available from 9am to 6pm, Monday to Friday (except Hong Kong public holidays). Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited.

20 Fidelity Funds Société d Investissement à Capital Variable 2a, rue Albert Borschette, L-1246 B.P. 2174, L-1021 Luxembourg R.C.S. Luxembourg B34036 Tél: (1) Fax: THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Change to Fidelity Funds Fidelity Funds - Asian Aggressive Fund name change Key Facts We are changing the name of Fidelity Funds - Asian Aggressive Fund to Fidelity Funds - Asia Pacific Opportunities Fund. The change does not affect the manner in which the Fund is managed. The risk profile of the Fund and the risk factors applicable to the Fund will remain unchanged. There will be no change to the level of fees that you currently pay. This letter is for information only and you do not need to take any action as this change will automatically enter into effect on 10 July May 2017 Dear Shareholder, As part of the ongoing process whereby Fidelity regularly reviews its range of funds to ensure that they are clearly labelled, I am writing to notify you of the decision taken by the board of directors of Fidelity Funds (the Board ) to change the name of Fidelity Funds - Asian Aggressive Fund (the Fund ) to Fidelity Funds - Asia Pacific Opportunities Fund. The Change will take effect on 10 July 2017 or such later date as may be decided by the Board (the Effective Date ). Our records show that you are a shareholder in the Fund (the Shareholders or you ). For more information on the impacted class of Shares and the corresponding ISIN Code, please refer to the Appendix enclosed herein. Any terms not defined herein shall have the same meaning as in the Fidelity Prospectus for Hong Kong Investors (the Prospectus ). On the Effective Date the name of the Fund will be amended as follows (the Change ): From: Fidelity Funds - Asian Aggressive Fund To: Fidelity Funds - Asia Pacific Opportunities Fund The Investment Objective, the Notes section and the reference currency for the Fund remain unchanged - please refer to the Prospectus. 1