Fidelity Far East Fund

Transcription

1 Fidelity Far East Fund Semi-Annual Report September 30, 2016 Notice to Readers The accompanying interim financial statements have not been reviewed by the external auditor of the Fund. The external auditor will be auditing the annual financial statements of the Fund in accordance with Canadian generally accepted auditing standards.

2 Fidelity Far East Fund Schedule of Investments September 30, 2016 (Unaudited) Showing Percentage of Net Assets Attributable to Holders of Redeemable Units (Net Assets) Equities 97.8% Shares Cost (000s) Market Value (000s) Australia 1.5% HEALTH CARE 1.5% Ramsay Health Care Ltd. 81,689 $ 3,426 $ 6,521 Bermuda 1.1% CONSUMER DISCRETIONARY 0.6% Yue Yuen Industrial (Holdings) Ltd. 520,000 2,381 2,819 INFORMATION TECHNOLOGY 0.5% Vtech Holdings Ltd. 142,700 2,248 2,141 TOTAL BERMUDA 4,629 4,960 Cayman Islands 20.4% CONSUMER DISCRETIONARY 4.0% Shenzhou International Group Holdings Ltd. 1,931,500 10,024 17,733 HEALTH CARE 0.9% Sino Biopharmaceutical Ltd. 4,413,000 3,303 3,916 INDUSTRIALS 1.3% CK Hutchison Holdings Ltd. 330,204 6,634 5,537 INFORMATION TECHNOLOGY 13.2% AAC Technology Holdings, Inc. 560,500 6,503 7,430 Alibaba Group Holding Ltd. sponsored ADR 45,700 4,462 6,343 Tencent Holdings Ltd. 1,229,600 11,314 44,850 TOTAL INFORMATION TECHNOLOGY 22,279 58,623 Real Estate 1.0% Cheung Kong Property Holdings Ltd. 467,204 3,938 4,509 TOTAL CAYMAN ISLANDS 46,178 90,318 China 11.3% FINANCIALS 7.9% China Construction Bank Corp. (H Shares) 10,619,000 9,240 10,463 China Merchants Bank Co. Ltd. (H Shares) 1,352,500 4,480 4,512 CITIC Securities Co. Ltd. (H Shares) 2,270,000 6,405 6,387 Industrial & Commercial Bank of China Ltd. (H Shares) 10,788,000 8,007 8,983 PICC Property & Casualty Co. Ltd. (H Shares) 2,062,000 3,550 4,536 TOTAL FINANCIALS 31,682 34,881 HEALTH CARE 2.1% Jiangsu Hengrui Medicine Co. Ltd. 1,065,751 7,730 9,241 UTILITIES 1.3% Huaneng Renewables Corp. Ltd. (H Shares) 13,080,000 5,718 6,033 TOTAL CHINA 45,130 50,155 Shares Cost (000s) Market Value (000s) Hong Kong 14.6% CONSUMER DISCRETIONARY 5.8% Techtronic Industries Co. Ltd. 4,946,000 $ 15,576 $ 25,419 FINANCIALS 6.5% AIA Group Ltd. 2,401,200 10,461 21,185 BOC Hong Kong (Holdings) Ltd. 1,711,500 8,096 7,640 TOTAL FINANCIALS 18,557 28,825 UTILITIES 2.3% Guangdong Investment Ltd. 4,882,000 5,006 10,232 TOTAL HONG KONG 39,139 64,476 India 2.4% FINANCIALS 2.0% HDFC Bank Ltd. 308,453 6,840 8,991 TELECOMMUNICATION SERVICES 0.4% Bharti Infratel Ltd. 231,753 1,698 1,674 TOTAL INDIA 8,538 10,665 Indonesia 4.5% CONSUMER DISCRETIONARY 0.7% PT ACE Hardware Indonesia Tbk 34,959,100 3,051 3,080 CONSUMER STAPLES 1.0% PT Unilever Indonesia Tbk 972,000 4,227 4,360 HEALTH CARE 1.3% PT Kalbe Farma Tbk 34,504,200 4,805 5,964 TELECOMMUNICATION SERVICES 1.5% PT Telkomunikasi Indonesia Tbk Series B 15,339,100 6,462 6,701 TOTAL INDONESIA 18,545 20,105 Korea (South) 18.6% CONSUMER STAPLES 7.9% AMOREPACIFIC Corp. 15,259 4,950 7,103 KT&G Corp. 94,357 11,927 14,104 LG Household & Health Care Ltd. 12,102 11,616 13,824 TOTAL CONSUMER STAPLES 28,493 35,031 INFORMATION TECHNOLOGY 7.7% LG Innotek Co. Ltd. 39,281 4,241 3,686 NCSOFT Corp. 25,806 6,698 9,137 Samsung Electronics Co. Ltd. 9,124 9,123 17,446 SK Hynix, Inc. 73,483 3,271 3,541 TOTAL INFORMATION TECHNOLOGY 23,333 33,810 UTILITIES 3.0% Korea Electric Power Corp. 206,594 8,783 13,284 TOTAL KOREA (SOUTH) 60,609 82,125 Luxembourg 0.8% CONSUMER DISCRETIONARY 0.8% Samsonite International SA 861,600 3,081 3,645 See accompanying notes which are an integral part of the financial statements. Semi-Annual Reportport 2

3 Equities continued Shares Cost (000s) Market Value (000s) Philippines 6.1% CONSUMER DISCRETIONARY 2.2% Jollibee Food Corp. 1,437,100 $ 8,319 $ 9,652 MATERIALS 0.3% D&L Industries, Inc. 4,820,300 1,576 1,494 Real Estate 3.6% SM Prime Holdings, Inc. 20,833,800 11,305 15,985 TOTAL PHILIPPINES 21,200 27,131 Singapore 3.5% INDUSTRIALS 3.5% ComfortDelgro Corp. Ltd. 2,522,300 6,651 6,845 Singapore Technologies Engineering Ltd. 2,708,700 8,819 8,453 TOTAL INDUSTRIALS 15,470 15,298 Taiwan 11.2% INFORMATION TECHNOLOGY 11.2% Largan Precision Co. Ltd. 18,000 1,042 2,883 Taiwan Semiconductor Manufacturing Co. Ltd. 6,022,537 20,011 46,525 TOTAL INFORMATION TECHNOLOGY 21,053 49,408 Thailand 1.8% FINANCIALS 1.0% Kasikornbank PCL (For. Reg.) 626,200 4,420 4,457 HEALTH CARE 0.8% Bumrungrad Hospital PCL (For. Reg.) 554,100 2,777 3,666 TOTAL THAILAND 7,197 8,123 TOTAL EQUITIES 294, ,930 TOTAL INVESTMENT PORTFOLIO 97.8% $294, ,930 NET OTHER ASSETS (LIABILITIES) 2.2% 9,763 NET ASSETS 100% $ 442,693 Presentation Notes Cost amount includes broker commissions and other trading expenses, if any. Investment Valuation The following is a summary of the inputs used, as of September 30, 2016 and March 31, 2016, involving the Fund s assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. Valuation Inputs at September 30, 2016: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $ 62,348 $ $ 62,348 $ See accompanying notes which are an integral part of the financial statements. 3 Semi-Annual Report

4 Fidelity Far East Fund Schedule of Investments (Unaudited) continued Valuation Inputs at September 30, 2016: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Consumer Staples $ 39,391 $ $ 39,391 $ Financials 77,154 77,154 Health Care 29,308 29,308 Industrials 20,835 20,835 Information Technology 143,982 6, ,639 Materials 1,494 1,494 Real Estate 20,494 20,494 Telecommunication Services 8,375 8,375 Utilities 29,549 29,549 Total Investments in Securities: $432,930 $6,343 $426,587 $ Valuation Inputs at March 31, 2016: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $ 76,096 $ 76,096 $ $ Consumer Staples 37,695 37,695 Financials 98,454 70,688 27,766 Health Care 37,128 37,128 Industrials 15,522 15,522 Information Technology 101,752 30,131 71,621 Materials 12,221 12,221 Telecommunication Services 4,316 4,316 Utilities 29,009 12,826 16,183 Total Investments in Securities: $412,193 $296,623 $115,570 $ The following is a summary of transfers between Level 1 and Level 2 for the periods ended September 30, 2016 and March 31, Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: Total Transfers (000s) Level 1 to Level 2 $ 247,110 Level 2 to Level 1 $ 0 Total Transfers (000s) Level 1 to Level 2 $ 16,651 Level 2 to Level 1 $ 0 The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: (Amounts in thousands) Investments in Securities: Beginning Balance $ 11,980 Net Realized Gain (Loss) on Investment Securities 8,477 Net Unrealized Gain (Loss) on Investment Securities (5,448) Cost of Purchases Proceeds of Sales (15,009) Amortization/Accretion Transfers into Level 3 Transfers out of Level 3 Ending Balance $ The change in unrealized gain (loss) for the period attributable to Level 3 securities held at March 31, 2016 $ See accompanying notes which are an integral part of the financial statements. Semi-Annual Reportport 4

5 The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on Investments on the Statements of Comprehensive Income. See accompanying notes which are an integral part of the financial statements. 5 Semi-Annual Report

6 Financial Statements (Unaudited) Statements of Financial Position Amounts in thousands of Canadian Dollars /thousands of units (except per unit amounts) As at September 30, 2016 March 31, 2016 Assets (Note 3) Current assets Investments at fair value through profit or loss (Note 8) $ 432,930 $ 412,193 Cash 9,351 4,874 Receivable for investments sold 10,113 2,879 Accrued interest and dividends receivable 572 2,656 Receivable on sale of units , ,815 Liabilities (Note 3) Current liabilities Payable for investments purchased 8,978 1,318 Payable on redemption of units Distributions payable (Note 5) 2 1 Management and advisory fees payable (Note 4) Other payables to affiliates (Note 4) Other payables and accrued expenses (Note 4) ,459 3,060 Net assets attributable to holders of redeemable units (Notes 3 and 6) $ 442,693 $ 419,755 Net assets attributable to holders of redeemable units per Series and per unit (Note 6) Series A: ($26,047 / 570 units and $26,903 / 652 units, respectively) $ $ Series B: ($278,796 / 6,058 units and $277,488 / 6,692 units, respectively) $ $ Series F: ($43,673 / 912 units and $41,503 / 967 units, respectively) $ $ Series F5: ($133 / 6 units and $1 / units, respectively) $ $ Series F8: ($163 / 8 units and $79 / 4 units, respectively) $ $ Series O: ($53,785 / 1,094 units and $51,904 / 1,185 units, respectively) $ $ Series T5: ($88 / 4 units and $59 / 3 units, respectively) $ $ Series T8: ($62 / 3 units and $58 / 3 units, respectively) $ $ Series S5: ($9 / units and $5 / units, respectively) $ $ Series S8: ($28 / 1 units and $24 / 1 units, respectively) $ $ See accompanying notes which are an integral part of the financial statements. Semi-Annual Reportport 6

7 Statements of Financial Position continued Amounts in thousands of Canadian Dollars /thousands of units (except per unit amounts) As at September 30, 2016 March 31, 2016 Series E1: ($26,405 / 2,305 units and $12,984 / 1,259 units, respectively) $ $ Series E2: ($1,889 / 165 units and $488 / 47 units, respectively) $ $ Series E3: ($225 / 20 units and $26 / 2 units, respectively) $ $ Series E4: ($1 / units and $1 / units, respectively) $ $ Series P1: ($8,861 / 869 units and $6,947 / 761 units, respectively) $ $ Series P2: ($2,470 / 242 units and $1,276 / 140 units, respectively) $ $ Series P3: ($49 / 5 units and $1 / units, respectively) $ $ Series P4: ($9 / 1 units and $8 / 1 units, respectively) $ $ See accompanying notes which are an integral part of the financial statements. 7 Semi-Annual Report

8 Financial Statements (Unaudited) continued Statements of Comprehensive Income Amounts in thousands of Canadian Dollars (except per unit amounts) For the six-month periods ended September 30, Investment income (Note 3) Interest $ $ 6 Dividends 7,229 14,200 Net gain (loss) on Investments Net realized gain (loss) on investments (1,427) 20,397 Change in net unrealized appreciation (depreciation) on investments 44,249 (66,730) 42,822 (46,333) Net gain (loss) on Foreign Currencies Net realized gain (loss) on foreign currency transactions (138) 460 Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies 169 (121) Total investment income (loss) 50,082 (31,788) Operating expenses (Note 4) Management and advisory fees 3,167 3,699 Administration fees Independent Review Committee fees Commissions and other portfolio costs Sales tax Foreign taxes withheld (Note 5) Total operating expenses 5,009 5,891 Expenses waived (Note 4) (83) (109) Net operating expenses 4,926 5,782 Net increase (decrease) in net assets attributable to holders of redeemable units from operations $ 45,156 $ (37,570) Other information: Increase (decrease) in net assets attributable to holders of redeemable units from operations per Series (Note 3) Series A $ 2,631 $ (2,519) Series B $ 29,048 $ (24,284) Series F $ 4,564 $ (3,891) Series F5 $ 19 $ Series F8 $ 10 $ (6) Series O $ 6,032 $ (6,838) Series T5 $ 8 $ (6) Series T8 $ 5 $ (11) Series S5 $ 2 $ Series S8 $ 2 $ (15) Series E1 $ 1,582 $ Series E2 $ 100 $ Series E3 $ 5 $ Series E4 $ $ Series P1 $ 939 $ Series P2 $ 204 $ Series P3 $ 4 $ Series P4 $ 1 $ Increase (decrease) in net assets attributable to holders of redeemable units from operations per Series per unit (Note 3) Series A $ $ (3.1940) Series B $ $ (3.2588) Series F $ $ (3.4928) See accompanying notes which are an integral part of the financial statements. Semi-Annual Reportport 8

9 Statements of Comprehensive Income continued Amounts in thousands of Canadian Dollars (except per unit amounts) For the six-month periods ended September 30, Series F5 $ $ (1.5484) Series F8 $ $ (1.4276) Series O $ $ (2.9834) Series T5 $ $ (2.5084) Series T8 $ $ (1.2114) Series S5 $ $ (.0250) Series S8 $ $ (7.4636) Series E1 $ $ Series E2 $ $ Series E3 $.8759 $ Series E4 $ $ Series P1 $ $ Series P2 $ $ Series P3 $ $ Series P4 $ $ See accompanying notes which are an integral part of the financial statements. 9 Semi-Annual Report

10 Financial Statements (Unaudited) continued Statements of Changes in Net Assets Attributable to Holders of Redeemable Units Amounts in thousands of Canadian Dollars For the six-month period ended September 30, 2016 Fund Series A Series B Series F Series F5 Series F8 Net assets attributable to holders of redeemable units, beginning of period $ 419,755 $ 26,903 $ 277,488 $ 41,503 $ 1 $ 79 Distributions to holders of redeemable units (Note 5) Return of capital (16) (7) (4) Management fee reduction (14) (13) (1) (30) (13) (1) (7) (4) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 32, ,786 4, Reinvestment of distributions Amounts paid upon redemption of redeemable units (54,432) (4,434) (32,525) (6,557) (719) (22,188) (3,487) (27,727) (2,393) Increase (decrease) in net assets attributable to holders of redeemable units from operations 45,156 2,631 29,048 4, Net increase (decrease) in net assets attributable to holders of redeemable units 22,938 (856) 1,308 2, Net assets attributable to holders of redeemable units, end of period $ 442,693 $ 26,047 $ 278,796 $ 43,673 $ 133 $ 163 Amounts in thousands of Canadian Dollars For the six-month period ended September 30, 2016 Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to holders of redeemable units, beginning of period $ 51,904 $ 59 $ 58 $ 5 $ 24 Distributions to holders of redeemable units (Note 5) Return of capital (2) (2) (1) (2) (2) (1) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 1, Reinvestment of distributions 2 1 Amounts paid upon redemption of redeemable units (5,800) (4) (1) (4,151) Increase (decrease) in net assets attributable to holders of redeemable units from operations 6, Net increase (decrease) in net assets attributable to holders of redeemable units 1, Net assets attributable to holders of redeemable units, end of period $ 53,785 $ 88 $ 62 $ 9 $ 28 Amounts in thousands of Canadian Dollars For the six-month period ended September 30, 2016 Series E1 Series E2 Series E3 Series E4 Series P1 Net assets attributable to holders of redeemable units, beginning of period $ 12,984 $ 488 $ 26 $ 1 $ 6,947 Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 13,692 1, ,030 Amounts paid upon redemption of redeemable units (1,853) (162) (5) (2,055) 11,839 1, Increase (decrease) in net assets attributable to holders of redeemable units from operations 1, Net increase (decrease) in net assets attributable to holders of redeemable units 13,421 1, ,914 Net assets attributable to holders of redeemable units, end of period $ 26,405 $ 1,889 $ 225 $ 1 $ 8,861 See accompanying notes which are an integral part of the financial statements. Semi-Annual Reportport 10

11 Statements of Changes in Net Assets Attributable to Holders of Redeemable Units continued Amounts in thousands of Canadian Dollars For the six-month period ended September 30, 2016 Series P2 Series P3 Series P4 Net assets attributable to holders of redeemable units, beginning of period $ 1,276 $ 1 $ 8 Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 1, Amounts paid upon redemption of redeemable units (317) Increase (decrease) in net assets attributable to holders of redeemable units from operations Net increase (decrease) in net assets attributable to holders of redeemable units 1, Net assets attributable to holders of redeemable units, end of period $ 2,470 $ 49 $ 9 Amounts in thousands of Canadian Dollars For the six-month period ended September 30, 2015 Fund Series A Series B Series F Series F5 Series F8 Net assets attributable to holders of redeemable units, beginning of period $ 545,025 $ 37,380 $ 348,136 $ 49,356 $ 1 $ 90 Distributions to holders of redeemable units (Note 5) Return of capital (17) (3) Management fee reduction (16) (14) (2) (33) (14) (2) (3) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 35,602 2,776 8,110 12,751 Reinvestment of distributions Amounts paid upon redemption of redeemable units (51,842) (6,197) (27,666) (8,001) (16,219) (3,421) (19,542) 4,752 Increase (decrease) in net assets attributable to holders of redeemable units from operations (37,570) (2,519) (24,284) (3,891) (6) Net increase (decrease) in net assets attributable to holders of redeemable units (53,822) (5,940) (43,840) 859 (9) Net assets attributable to holders of redeemable units, end of period $ 491,203 $ 31,440 $ 304,296 $ 50,215 $ 1 $ 81 Amounts in thousands of Canadian Dollars For the six-month period ended September 30, 2015 Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to holders of redeemable units, beginning of period $ 109,666 $ 21 $ 67 $ 307 $ 1 Distributions to holders of redeemable units (Note 5) Return of capital (1) (9) (3) (1) (1) (9) (3) (1) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 10, Reinvestment of distributions Amounts paid upon redemption of redeemable units (8,799) (6) (541) (306) (326) 2, (299) 44 Increase (decrease) in net assets attributable to holders of redeemable units from operations (6,838) (6) (11) (15) Net increase (decrease) in net assets attributable to holders of redeemable units (4,651) 38 (5) (302) 28 Net assets attributable to holders of redeemable units, end of period $ 105,015 $ 59 $ 62 $ 5 $ 29 See accompanying notes which are an integral part of the financial statements. 11 Semi-Annual Report

12 Financial Statements (Unaudited) continued Statements of Cash Flows Amounts in thousands of Canadian Dollars For the six-month periods ended September 30, Cash, beginning of period $ 4,874 $ 5,345 Cash flows from (used in) operating activities: Purchases of investments (46,433) (85,306) Proceeds from sale and maturity of investments 68, ,571 Cash receipts from dividend income 8,754 14,869 Cash receipts from interest income 6 Cash paid for operating expenses (4,884) (5,223) Net cash from (used in) operating activities 26,271 28,917 Cash flows from (used in) financing activities: Distributions to holders of redeemable units net of reinvestments (12) (11) Proceeds from sales of units 32,254 35,683 Amounts paid upon redemption of units (54,177) (51,890) Net cash from (used in) financing activities (21,935) (16,218) Net change in cash 4,336 12,699 Foreign exchange gain (loss) on cash 141 (68) Cash, end of period $ 9,351 $ 17,976 See accompanying notes which are an integral part of the financial statements. Semi-Annual Reportport 12

13 Notes to Financial Statements (Unaudited) For the period ended September 30, 2016 (Unaudited) (Amounts in thousands of Canadian dollars/thousands of units (except per unit amounts)) 1. Formation of the Fund Fidelity Far East Fund (Fund) is an open end mutual fund trust formed under the laws of Ontario and governed by a Master Declaration of Trust dated September 17, 1991 (Inception Date), as amended thereafter from time to time. The Fund is authorized to issue an unlimited number of units. Fidelity Investments Canada ULC (Fidelity), as manager and trustee of the Fund, is responsible for the day-to-day operations and provides all general management and administrative services. The investment advisor is responsible for the investment management of the Fund s portfolio. On December 31, 2015, the investment advisor changed from FIAM LLC (formerly Pyramis Global Advisors, LLC) to Fidelity. The registered office of the Fund is located at 483 Bay Street, Suite 300, Toronto, Ontario, M5G 2N7. Currently, Fidelity mutual funds are offered in the following Series: Series A, Series B, Series C, Series D, Series F, Series F5, Series F8, Series I, Series I5, Series I8, Series O, Series T5, Series T8, Series S5, Series S8, Series E1, Series E1T5, Series E2, Series E2T5, Series E3, Series E3T5, Series E4, Series E4T5, Series E5, Series E5T5, Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P3T5, Series P4, Series P4T5, Series P5 and Series P5T5. Series A, Series C, Series T5 and Series T8 units are available to all investors in a deferred sales charge (DSC) option. Series A, Series T5 and Series T8 units will be converted to lower management and advisory fee Series B, Series S5 and Series S8 units, respectively, one year after completion of their redemption schedule. Series T5 and Series T8 units have substantially all the same attributes as the Series A units with the exception that Series T5 and Series T8 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series B, Series D, Series S5 and Series S8 units are available to all investors in an initial sales charge (ISC) option. Series S5 and Series S8 units have substantially all the same attributes as the Series B units with the exception that Series S5 and Series S8 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series C and Series D units are available to investors who have enrolled in the rebalancing service. Series F, Series F5 and Series F8 units are usually only available to investors who have fee based accounts with dealers who have signed an eligibility agreement with Fidelity. Series F5 and Series F8 units have substantially all the same attributes as the Series F units with the exception that Series F5 and Series F8 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series E1, Series E1T5, Series E2, Series E2T5, Series E3, Series E3T5, Series E4, Series E4T5, Series E5 and Series E5T5 units are available only to investors who initially hold Series B and/or Series S5 units and then become eligible to hold certain Series E units. Series E1, Series E1T5, Series E2, Series E2T5, Series E3, Series E3T5, Series E4, Series E4T5, Series E5 and Series E5T5 units have lower combined management and administration fees than Series B or Series S5 units. Series E1T5, Series E2T5, Series E3T5, Series E4T5 and Series E5T5 units have the same attributes as the other Series E units with the exception that Series E1T5, Series E2T5, Series E3T5, Series E4T5 and Series E5T5 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P3T5, Series P4, Series P4T5, Series P5 and Series P5T5 units are available only to investors who initially hold Series F and/or Series F5 units and then become eligible to hold certain Series P units. Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P3T5, Series P4, Series P4T5, Series P5 and Series P5T5 units have lower combined management and administration fees than Series F or Series F5 units. Series P1T5, Series P2T5, Series P3T5, Series P4T5 and Series P5T5 units have the same attributes as the other Series P units with the exception that Series P1T5, Series P2T5, Series P3T5, Series P4T5 and Series P5T5 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series O units are only available to selected investors who have been approved by Fidelity and have entered into a Series O Account Agreement with Fidelity. Series I, Series I5 and Series I8 units are available to all investors who have entered into a Series I Agreement with Fidelity and are available to all investors in an initial sales charge (ISC) option. Series I5 and Series I8 units have substantially all the same attributes as the Series I units with the exception that Series I5 and Series I8 units distribute an amount comprised of net income and/or return of capital monthly, if available.the Fund offers Series A, Series B, Series F, Series F5, Series F8, Series O, Series T5, Series T8, Series S5, Series S8, Series E1, Series E2, Series E3, Series E4, Series P1, Series P2, Series P3 and Series P4 units. The Fund commenced the offering of Series P1, Series P2, Series P3 and Series P4 units on December 4, 2015 and commenced the offering of Series E1, Series E2, Series E3 and Series E4 units on February 5, The Fund meets the definition of an investment entity and its purpose is to provide investment management services to its unitholders by investing its net assets for capital growth and/or investment income and by measuring its investment performance on a fair value basis. Refer to the Financial Instruments Risk note below for the Fund s investment objective. 2. Basis of Preparation Statement of Compliance - These interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) and as applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting. The accounting policies set out below have been applied consistently unless otherwise stated. The policies applied in these interim financial statements are based on IFRS issued as of November 8, 2016 which is the date on which the interim financial statements were authorized for issue by Fidelity s board of directors. Any subsequent changes to IFRS that are given effect in the Fund s annual financial statements for the period ending March 31, 2017 could result in restatement of these interim financial statements. 13 Semi-Annual Report

14 Notes to Financial Statements (Unaudited) continued (Amounts in thousands of Canadian dollars/thousands of units (except per unit amounts)) Functional and Presentation Currency These financial statements are presented in Canadian dollars, which is the Fund s functional currency. 3. Summary of Significant Accounting Policies Basis of Measurement These financial statements have been prepared on the historical cost basis except for investments which are measured at fair value in the Statements of Financial Position. Use of Estimates and Judgments Under IFRS, management is required to make certain estimates and judgments at the date of the financial statements. The principal financial statement components subject to significant accounting estimates and judgments include: Fair value measurements The Fund may invest in financial instruments that are not quoted in an active market. Where applicable, these instruments are categorized in Level 2 and Level 3 of the fair value hierarchy explained below. When current market prices or quotations are not readily available or reliable, valuation techniques will be applied in good faith and in accordance with procedures adopted by the manager. Factors used in determining fair value may include, but are not limited to, broker quotes from reputable pricing sources, market or security specific events, changes in interest rates and credit quality. Fair value models use observable data, to the extent practical; however, the manager is required from time to time to make estimates and assumptions that are based on the best information available at that particular time. Changes in these estimates could impact the fair values of the financial instruments, and the impact could be material. The aggregate fair value of investments measured by valuation techniques as at September 30, 2016 and March 31, 2016, is included at the end of the Fund s Schedule of Investments. Classification and measurement of financial instruments The Fund has made significant judgments when determining the classification and measurement of its financial instruments under IAS 39, Financial Instruments Recognition and Measurement (IAS 39). These judgments centre upon the determination that certain investments are held-for-trading and that the fair value measurement option can be applied to those that are not due to factors including performance evaluation and management of the Fund on a fair value basis. Presentation of financial instruments The Fund has made significant judgments when determining the classification of its redeemable units as financial liabilities in accordance with IAS 32 Financial Instruments Presentation (IAS 32). These judgments centre upon the determination that the Fund s redeemable units do not have identical features and their entitlements include a contractual obligation to distribute any net income and net realized capital gains at least annually in cash (at the request of the unitholder). Therefore, the ongoing redemption feature is not the units only contractual obligation. Investment Valuation Investments are designated at their fair value through profit or loss in accordance with IAS 39 and are carried at their fair value. The Fund categorizes the inputs to valuation techniques used to fair value its investments into a disclosure hierarchy consisting of three levels as shown below: Level 1 quoted prices in active markets for identical investments Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.) Level 3 unobservable inputs (including the Fund s own assumptions based on the best information available) Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Information on transfers between Level 1 and Level 2 for the period ended September 30, 2016 and March 31, 2016, is included at the end of the Fund s Schedule of Investments. The aggregate value of investments by input level, as at September 30, 2016 and March 31, 2016, as well as a roll forward of Level 3 securities, where applicable, is included at the end of the Fund s Schedule of Investments. The Fund did not hold any significant positions of Level 3 investments at the beginning of or end of the period. Valuation techniques used to value the Fund s investments by major category are as follows: Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last sales price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event that the last sales price or official closing price is not readily available, or is outside the bid-ask spread, the point within the bid ask spread that is most representative of fair value based on specific facts and circumstances will be used. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Cash Cash is comprised of cash on deposit and may include cash equivalents which are short-term debt instruments with terms to maturity of less than 90 days at acquisition which are held for the purpose of meeting short-term cash commitments. Foreign currencies are comprised Semi-Annual Reportport 14

15 of cash amounts denominated in currencies other than Canadian dollars, which are on deposit with the custodian to facilitate the settlement of foreign denominated security transactions. Cash is carried at amortized cost which approximates its fair value. The Fund did not hold any cash equivalents as at September 30, 2016 and March 31, Impairment of Financial Assets At each reporting date, the Fund assesses whether there is objective evidence that a financial asset carried at amortized cost is impaired. If such impairment exists, the Fund recognizes the difference between the amortized cost of the financial assets and the present value of the estimated future cash flows, discounted using the instrument s original effective interest rate as an impairment loss on the Statements of Comprehensive Income. Such impairment losses are reversed in subsequent periods in the Statements of Comprehensive Income if the conditions that lead to the initial recognition of the loss diminish or cease to exist. Other Assets and Liabilities Other assets and liabilities may include amounts due to or from the custodian, affiliates or other counterparties for accrued income, investment transactions, unit transactions, accrued expenses and other unsettled transactions at period end. These amounts are classified as loans and receivables or financial liabilities and are carried at amortized cost, which approximates fair value due to their shortterm nature. Classification of redeemable units issued by the Fund In accordance with IAS 32, the Fund s redeemable units entitlements include a contractual obligation to distribute any net income and net realized capital gains at least annually in cash (at the request of the unitholder) and, therefore, the ongoing redemption feature is not the units only contractual obligation. In addition, each series of redeemable units are equally subordinated to each other, but have differing features as outlined in the notes below. Therefore, the Fund s redeemable units do not meet the criteria for classification as equity and have been classified as financial liabilities on the Statements of Financial Position. The Fund s obligation for net assets attributable to holders of redeemable units is recorded at the redemption amount. As at September 30, 2016 and March 31, 2016, the Fund s net asset value per Series per unit may differ by less than $0.01 from its net assets attributable to holders of redeemable units per Series per unit calculated in accordance with IFRS as a result of normal reporting period end procedures to close off the books and records. Investment Transactions, Income Recognition and Transaction Costs Regular way purchases and sales of financial assets are recognized at their trade date. The cost of investments is determined on an average cost basis, excluding commissions and other portfolio transaction costs. However, for presentation purposes, the Schedule of Investments includes broker commissions and other trading expenses. Income from investments is recognized on an accrual basis. Interest income is accrued as earned. Dividend income is recognized on the ex dividend date except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Distributions received from investment trusts are recorded as income, capital gains or a return of capital based on the best information available to the manager. Due to the nature of these investments, actual allocations could vary from this information. Distributions from investment trusts treated as a return of capital reduce the average cost of the underlying investment trust. Net realized gains and losses from the sale of investments and change in net unrealized appreciation (depreciation) on investments are calculated with reference to average cost of the related investment securities which exclude transaction costs and may include proceeds received from litigation. Transaction costs, such as brokerage commissions, incurred in the purchase and sale of securities by the Fund are recognized as Commissions and other portfolio costs in the Statements of Comprehensive Income. Foreign taxes are estimated based on the Fund s understanding of the tax rules and actual rates that exist in the foreign markets in which it invests. Investment income is recorded gross of foreign taxes withheld. Foreign Currency Translation Securities and other assets and liabilities denominated in a foreign currency are translated into Canadian dollars at the period-end exchange rates. Purchases and sales of securities, income and expenses denominated in foreign currencies are translated into Canadian dollars at the exchange rate on the date of the respective transaction. The effects of exchange rate fluctuations on investments are included in the Net realized gain (loss) and change in net unrealized appreciation (depreciation) on investments and exchange rate fluctuations on other foreign currency transactions are included in the Net realized gain (loss) on foreign currency transactions and Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies in the Statements of Comprehensive Income. Valuation of Series Separate net assets attributable to holders of redeemable units is calculated for each Series of units in the Fund. The net assets attributable to holders of redeemable units of a Series is computed by calculating the Series proportionate share of the assets and liabilities of the Fund common to all Series, adjusted for the assets and liabilities of the Fund attributable only to that Series. Expenses directly attributable to a Series are charged to that Series. Investment income and operating expenses are allocated proportionately to each Series based upon the relative net assets attributable to holders of redeemable units of each Series, except for items that can be specifically attributed to one or more Series. Per Unit from Operations - The increase (decrease) in net assets attributable to holders of redeemable units resulting from operations per unit in the Statements of Comprehensive Income represent the increase (decrease) in net assets attributable to holders of redeemable units resulting from operations for each Series of the Fund, divided by the weighted average units outstanding for each Series of the Fund during the period as follows: 15 Semi-Annual Report

16 Notes to Financial Statements (Unaudited) continued (Amounts in thousands of Canadian dollars/thousands of units (except per unit amounts)) Weighted Average Units Period ended September 30, 2016 Series A 610 Series B 6,474 Series F 933 Series F5 12 Series F8 5 Series O 1,141 Series T5 4 Series T8 3 Series S5 Series S8 1 Series E1 1,380 Series E2 77 Series E3 6 Series E4 Series P1 855 Series P2 180 Series P3 2 Series P4 1 Period ended September 30, 2015 Series A 789 Series B 7,451 Series F 1,113 Series F5 Series F8 4 Series O 2,292 Series T5 3 Series T8 10 Series S5 9 Series S8 2 Statements of Cash Flows When preparing the Statements of Cash Flows, the Fund nets the rollover activity of its short-term investments, and includes only the net cash flow impact in Purchases of investments or Proceeds from sale and maturity of investments, as applicable. Additionally, in accordance with IFRS, the Fund s Statements of Cash Flows excludes non-cash transactions from its operating and financing activities. Recent Accounting Pronouncements The final version of IFRS 9, Financial Instruments, was issued by the IASB in July 2014 and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces a model for classification and measurement, a single, forward-looking expected loss impairment model and a substantially reformed approach to hedge accounting. The new single, principle based approach for determining the classification of financial assets is driven by cash flow characteristics and the business model in which an asset is held. The new model also results in a single impairment model being applied to all financial instruments, which will require more timely recognition of expected credit losses. It also includes changes in respect of an entity s own credit risk in measuring liabilities elected to be measured at fair value, so that gains caused by the deterioration of an entity s own credit risk on such liabilities are no longer recognised in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, however is available for early adoption. In addition, the entity s own credit risk changes can be early applied in isolation without otherwise changing the accounting for financial instruments. The Fund is in the process of assessing the impact of IFRS 9 and has not yet determined when it will adopt the new standard. 4. Expenses and Other Related Party Transactions Management and Advisory Fees Fidelity serves as the manager and investment advisor of the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including FIAM LLC, to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services and the provision of key management personnel to the Fund, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity may reduce the management and advisory fee or fund expenses for certain investors by reducing the management and advisory fee it charges to the Fund or reducing the amount charged to the Fund for certain expenses and having the Fund pay out the amount of the reduction to the investors as a distribution. These distributions are disclosed as Management fee reduction in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. No management and Semi-Annual Reportport 16

17 advisory fees are charged with respect to the Series O units, but investors will be charged a negotiated management fee. The annual management and advisory fee rates for each Series were as follows: Annual Management and Advisory Fee Rate (%) Series A Series B Series F Series F Series F Series T Series T Series S Series S Series E Series E Series E Series E Series P Series P Series P Series P Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses and the provision of key management personnel to the Fund. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs, including the fees and expenses of the Independent Review Committee (IRC), taxes, brokerage commissions and interest charges. The administration fee is in addition to the management and advisory fee. No administration fees are charged with respect to the Series O units. The annual rate of the administration fee will fall under one of three tiers, depending on the net asset value of the Fund: Under $100 Million (Tier 1), $100 Million to $1 Billion (Tier 2) and Over $1 Billion (Tier 3). The administration fee is calculated as a fixed annual percentage, accrued daily and payable monthly, of the net asset value of each Series as follows: Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A Series B Series F Series F Series F Series T Series T Series S Series S Series E Series E Series E Series E Series P Series P Series P Series P Prior to October 29, 2015, the administration fee was calculated as a fixed annual percentage of the net asset value of each Series as follows (some or all Series administration fees may not have changed): 17 Semi-Annual Report

18 Notes to Financial Statements (Unaudited) continued (Amounts in thousands of Canadian dollars/thousands of units (except per unit amounts)) Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A Series B Series F Series F Series F Series T Series T Series S Series S Independent Review Committee Fees - The IRC, as required under National Instrument , reviews conflict of interest matters referred to it by the manager and provides recommendations or approves actions, as appropriate, that are in the best interest of the funds. There are currently four members of the IRC who are independent of Fidelity and its affiliates. IRC members are compensated by way of an annual retainer fee and a per meeting attendance fee, as well as reimbursed for expenses associated with IRC duties. These costs are allocated among the individual funds proportionately by assets. No IRC fees are charged with respect to the Series O units. Sales Tax - Certain provinces have harmonized their Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST). The Harmonized Sales Tax (HST) combines the GST rate of 5% with the PST rate of certain provinces. The Provincial HST liability or refund is calculated using the residency of unitholders and the value of their interests in the Fund as at specific times, rather than the physical location of the Fund. The effective GST/HST rate charged to each Series of the Fund is based on the unitholders proportionate investments by province, using each province s HST rate or GST rate in the case of non-participating provinces. All amounts are included in the Statements of Comprehensive Income as Sales tax. Commissions and Other Portfolio Costs - Commissions and other portfolio costs paid for security transactions during the period were $323 (September 30, 2015: $204), of which $- (September 30, 2015: $-) were paid to brokerage firms that are affiliates of Fidelity. The Fund may execute certain portfolio trades with brokers who reimbursed a portion of their commissions to the Fund. Reimbursement estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Commissions reimbursed under this arrangement were $7 (September 30, 2015: $206) and are included in Commissions and other portfolio costs in the Statements of Comprehensive Income. In addition, a portion of commissions may be paid for research. The total of such payments was $93 (September 30, 2015: $94). Amounts paid for research provided to the Fund by executing brokers are estimates made by Fidelity. Fidelity has established procedures to assist them in making a good faith determination that the Fund received a reasonable benefit considering the value of research goods and services and the amount of brokerage commissions paid. 5. Taxation and Distributions The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada). For tax purposes, the Fund has a December year end. In each tax year, the Fund declares and credits as due and payable sufficient net investment income and net realized capital gains to unitholders such that the Fund will not be subject to income taxes. As a result, the Fund does not record income taxes under IAS 12 Income Taxes (IAS 12) and accordingly does not recognize the deferred tax benefit associated with tax loss carry forwards and other taxable temporary differences. The Fund is subject to foreign withholding taxes imposed by certain countries on investment income. Withholding taxes are accrued for in conjunction with the accrual for the related investment income and are included in Foreign taxes withheld on the Statements of Comprehensive Income and Other payables and accrued expenses on the Statements of Financial Position. Distributions are taxable in unitholders hands. At the end of each tax year, the character of the distributions is determined for tax purposes. Under the terms of the Declaration of Trust, the trustee may capitalize any distribution amount without any increase in the number of units outstanding. For Series F5, Series F8, Series T5, Series T8, Series S5 and Series S8, the Fund will make monthly distributions of an amount that will generally be comprised of a return of capital and/or net investment income, if available. Distributions, if any, are declared separately for each Series. Capital losses may be carried forward indefinitely to reduce future realized capital gains. As at the last taxation year-end, the Fund had no capital losses available to be carried forward. Non capital losses may be carried forward for up to 20 tax years to reduce future taxable income, but expire in December of the year noted. As at the last taxation year-end, the Fund had no non capital losses available to be carried forward. Semi-Annual Reportport 18

19 6. Capital Risk Management Units issued and outstanding are considered to be the capital of the Fund. The capital of each series of the Fund is divided into an unlimited number of units of equal value, with no par value. All units in a series of the Fund rank equally with respect to distributions. A unitholder of the Fund is entitled to one vote for each one dollar in value of units owned. Fractional units are proportionately entitled to these rights. The Fund generally has no restrictions or specific capital requirements on the subscriptions and redemptions of units other than minimum subscription requirements; although, on rare occasions, Fidelity may temporarily suspend unitholders right to redeem units and postpone paying sale proceeds. The relevant movements attributable to unitholders are shown in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. In accordance with the objectives and the risk management policies outlined in the Financial Instruments Risk notes, the Fund endeavors to invest the subscriptions received in appropriate investments while maintaining sufficient liquidity to meet redemptions. Such liquidity is managed by investing the majority of assets in investments that can be readily disposed and via the Fund s ability to borrow up to 5% of its net asset value. Unit Transactions - Unit transactions for each Series were as follows: Units Outstanding, Beginning of Period Issued Reinvested Redeemed Units Outstanding, End of Period Period ended September 30, 2016 Series A (105) 570 Series B 6, (746) 6,058 Series F (149) 912 Series F5 40 (34) 6 Series F Series O 1, (128) 1,094 Series T Series T8 3 3 Series S5 Series S8 1 1 Series E1 1,259 1,223 (177) 2,305 Series E (16) 165 Series E Series E4 Series P (218) 869 Series P (35) 242 Series P3 5 5 Series P4 1 1 Period ended September 30, 2015 Series A (137) 750 Series B 7, (612) 7,214 Series F 1, (171) 1,143 Series F5 Series F8 4 4 Series O 2, (182) 2,327 Series T Series T (24) 3 Series S5 13 (13) Series S8 17 (15) 2 Affiliated Ownership - As at September 30, 2016, Fidelity and its affiliates held approximately 10% of the Fund. As at March 31, 2016, Fidelity and its affiliates held approximately 10% of the Fund. 7. Financial Instruments Risk The Fund s activities expose it to a variety of financial instruments risks: credit risk, liquidity risk, other price risk, interest rate risk and currency risk. Fidelity seeks to minimize potential adverse effects of these performance risks by employing professional, experienced portfolio advisors, by daily monitoring of positions and market events, and by diversifying the investment portfolio within the constraints of the investment mandate. The Fund may use derivative financial instruments to moderate certain risk exposures. 19 Semi-Annual Report

20 Notes to Financial Statements (Unaudited) continued (Amounts in thousands of Canadian dollars/thousands of units (except per unit amounts)) Risk, as defined by Fidelity, is the mismatch of certain risk factors, such as the market capitalization, beta, common factors such as size, priceearnings ratio, price-to-book ratio and industry exposures, between a portfolio and its benchmark. Such mismatches may result in divergence of returns relative to the benchmark. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1 indicates that the security s price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security s price will be more volatile than the market. For example, if a stock s beta is 1.2, it s theoretically 20% more volatile than the market. Fidelity s objective is to provide consistent value-added return over the benchmark. Unsystematic risk is mitigated primarily through investments in a diverse portfolio of securities across many sectors, styles or regions of the market. Fidelity s qualitative fundamental security selection is also well diversified across many analysts. Rather than relying on a single valuation process or quantitative model that implicitly assumes that past value-added returns of some sectors or styles will persist into the future, Fidelity s analysts select securities based on their own unique valuation processes. This Fund aims to achieve long-term capital growth by investing primarily in equity securities of companies located or operating in Southeast Asia. These countries include Australia, Hong Kong, India, Indonesia, Malaysia, New Zealand, the People s Republic of China, the Philippines, Singapore, South Korea, Taiwan and Thailand. The Fund does not invest in Japan. The Fund s benchmark is the MSCI AC (All Country) Far East ex Japan Index. Portfolio risk is monitored daily and reviewed monthly by an investment compliance group. In addition, there is a formal quarterly review of each fund. The investment compliance group, portfolio managers and the senior analysts attend a quarterly portfolio review. Portfolios within each strategy are reviewed relative to each other and to their benchmark. Active industry and security allocations are analyzed. Credit Risk - Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund. The Fund s own credit risk in the case of financial liabilities and a counterparty s credit risk in the case of financial assets are considered, where applicable, in determining the fair value of financial assets and financial liabilities. The Fund may be exposed to indirect credit risk through its investments in any Underlying Fund. In addition, as part of its cash management, the Fund limits its direct exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of investments and other assets represents the maximum credit risk exposure as at September 30, 2016 and March 31, Other than outlined above, there were no significant concentrations of credit risk to counterparties as at September 30, 2016 and March 31, Concentration Risk - Fidelity analyzes credit concentration based on the counterparty, industry and/or geographical location of the financial assets that the Fund holds. The following tables summarize the investment concentration risks that are relevant for the Fund based on its investment objective. Sector Mix % of Fund s Net Assets as at 9/30/16 % of Fund s Net Assets as at 3/31/16 Information Technology Financials Consumer Discretionary Consumer Staples Utilities Health Care Industrials Real Estate Telecommunication Services Others (Individually Less Than 1%) Cash and Short-Term Investments Net Other Assets (Liabilities) Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. Geographic Mix % of Fund s Net Assets as at 9/30/16 % of Fund s Net Assets as at 3/31/16 Cayman Islands Korea (South) Semi-Annual Reportport 20

21 % of Fund s Net Assets as at 9/30/16 % of Fund s Net Assets as at 3/31/16 Hong Kong China Taiwan Philippines Indonesia Singapore India Thailand Australia Bermuda Others (Individually Less Than 1%) Cash and Short-Term Investments Net Other Assets (Liabilities) Fidelity regularly monitors the relative weights of individual securities, sectors, countries, and also monitors the market capitalization and trading liquidity of each holding. Liquidity Risk - Liquidity risk is defined as the risk that the Fund may not be able to settle or meet its obligations on time or at a reasonable price. The Fund is exposed to daily cash redemptions of redeemable units. Redeemable units are redeemed on demand at the unitholder s option based on the Fund s net asset value per unit (NAVPU) at the time of redemption. In accordance with securities regulations, investment funds must maintain at least 90% of assets in liquid investments; investments that are traded in an active market and can be readily disposed of. In addition, the Fund aims to retain sufficient cash and short-term investments to maintain liquidity, and has the ability to borrow up to 5% of its net asset value from the custodian for the purpose of funding redemptions. The Fund may, from time to time, invest in securities that are not traded in an active market and may be illiquid. Private and/or restricted securities held, if any, are identified in the Fund s Schedule of Investments as at their respective period ends. The liquidity position of the Fund is monitored on a daily basis. As at September 30, 2016 and March 31, 2016, the Fund did not have financial liabilities with maturities greater than 3 months. Other Price Risk - Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk on monetary instruments), whether caused by factors specific to an individual investment, its issuer, or other factors affecting all instruments traded in a market or market segment. All securities present a risk of loss of capital. The Fund moderates this risk through a careful selection of securities and other financial instruments within the parameters of the investment strategy. The maximum risk resulting from financial instruments is equivalent to their fair value. The Fund s investments are susceptible to other price risk arising from uncertainties about future prices of the instruments. If the benchmark had increased or decreased by 5% on September 30, 2016 and March 31, 2016, with all other variables held constant, the net assets attributable to holders of redeemable units of the Fund would have increased or decreased by approximately $19,049 (March 31, 2016: $18,755). This change is estimated using the Fund s beta which is calculated based on the historical correlation between the return of the Fund as compared to the return of the benchmark. In practice, the actual trading results may differ from this sensitivity analysis and the difference could be material. Interest Rate Risk - Interest rate risk arises on interest-bearing financial instruments held in the investment portfolio such as bonds. The Fund is exposed to the risk that the fair value or the future cash flows of interest-bearing financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. Any excess cash and cash equivalents are invested in short-term investments at market interest rates. Currency Risk - Currency risk arises from financial instruments that are denominated in a currency other than Canadian dollar, which is the Fund s functional currency. The Fund is exposed to the risk that the value of financial instruments denominated in other currencies will fluctuate due to changes in exchange rates. Currency risk is not considered to arise from financial instruments that are non-monetary items such as equity investments, or forward foreign exchange contracts related to such non-monetary items. The Fund considers the foreign exchange exposure relating to nonmonetary assets and liabilities to be a component of other price risk, not foreign currency risk. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in exchange rates. 21 Semi-Annual Report

22 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 Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Custodian State Street Trust Company of Canada Toronto, Ontario Auditor PricewaterhouseCoopers LLP 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 units 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 FMR LLC E FICL-FE-SANN-1116