Fidelity AsiaStar Fund

Transcription

1 Fidelity AsiaStar Fund Annual Report March 31, 2017

2 Fidelity AsiaStar Fund Schedule of Investments March 31, 2017 Showing Percentage of Net Assets Attributable to Securityholders (Net Assets) Equities 99.0% Shares / Units Cost Market Value Australia 11.8% CONSUMER DISCRETIONARY 2.2% Aristocrat Leisure Ltd. 30,929 $ 413 $ 565 realestate.com.au Ltd. 14, TOTAL CONSUMER DISCRETIONARY 1,111 1,417 ENERGY 1.1% Woodside Petroleum Ltd. 23, FINANCIALS 4.0% Australia & New Zealand Banking Group Ltd. 22, Challenger Ltd. 80, ,022 Macquarie Group Ltd. 4, QBE Insurance Group Ltd. 19, Westpac Banking Corp. 5, TOTAL FINANCIALS 2,000 2,582 HEALTH CARE 2.4% Cochlear Ltd. 1, CSL Ltd. 7, Ramsay Health Care Ltd. 6, TOTAL HEALTH CARE 938 1,587 MATERIALS 2.1% Amcor Ltd. 47, Rio Tinto Ltd. 10, TOTAL MATERIALS 1,063 1,361 TOTAL AUSTRALIA 5,791 7,701 Bermuda 0.3% MATERIALS 0.3% Nine Dragons Paper (Holdings) Ltd. 128, Cayman Islands 10.4% CONSUMER DISCRETIONARY 2.6% Sands China Ltd. 82, Shenzhou International Group Holdings Ltd. 140, ,175 TOTAL CONSUMER DISCRETIONARY 1,425 1,685 INFORMATION TECHNOLOGY 7.8% AAC Technology Holdings, Inc. 40, Alibaba Group Holding Ltd. sponsored ADR 2, ASM Pacific Technology Ltd. 7, Tencent Holdings Ltd. 101,700 1,379 3,899 TOTAL INFORMATION TECHNOLOGY 2,201 5,061 TOTAL CAYMAN ISLANDS 3,626 6,746 China 4.6% FINANCIALS 2.4% China Construction Bank Corp. (H Shares) 301, China Merchants Bank Co. Ltd. (H Shares) 113, Shares / Units Cost Market Value CITIC Securities Co. Ltd. (H Shares) 204,500 $ 577 $ 560 Industrial & Commercial Bank of China Ltd. (H Shares) 335, TOTAL FINANCIALS 1,519 1,572 HEALTH CARE 1.6% Jiangsu Hengrui Medicine Co. Ltd. (A Shares) 100, ,052 UTILITIES 0.6% Huaneng Renewables Corp. Ltd. (H Shares) 850, TOTAL CHINA 2,597 3,015 Hong Kong 7.4% CONSUMER DISCRETIONARY 3.3% Techtronic Industries Co. Ltd. 403,500 1,287 2,172 FINANCIALS 3.4% AIA Group Ltd. 199,600 1,088 1,674 BOC Hong Kong (Holdings) Ltd. 98, TOTAL FINANCIALS 1,548 2,206 UTILITIES 0.7% Guangdong Investment Ltd. 244, TOTAL HONG KONG 3,086 4,841 India 5.6% FINANCIALS 5.0% HDFC Bank Ltd. 72,534 1,444 2,187 Housing Development Finance Corp. Ltd. 34, ,077 TOTAL FINANCIALS 1,986 3,264 TELECOMMUNICATION SERVICES 0.6% Bharti Infratel Ltd. 59, TOTAL INDIA 2,312 3,663 Indonesia 1.5% CONSUMER DISCRETIONARY 0.5% PT ACE Hardware Indonesia Tbk 3,680, CONSUMER STAPLES 0.6% PT Unilever Indonesia Tbk 89, HEALTH CARE 0.4% PT Kalbe Farma Tbk 1,815, TOTAL INDONESIA Japan 37.7% CONSUMER DISCRETIONARY 10.1% Dentsu, Inc. 10, Don Quijote Holdings Co. Ltd. 16, Honda Motor Co. Ltd. 21, Marui Group Co. Ltd. 51, NGK Spark Plug Co. Ltd. 6, Nitori Holdings Co. Ltd. 2, See accompanying notes which are an integral part of the financial statements. Annual Reportport 2

3 Equities continued Shares / Units Cost Market Value Japan continued CONSUMER DISCRETIONARY continued Sony Corp. 17,900 $ 631 $ 803 Start Today Co. Ltd. 14, Toyota Motor Corp. 13, Yamaha Motor Co. Ltd. 17, TOTAL CONSUMER DISCRETIONARY 5,737 6,614 CONSUMER STAPLES 2.3% Ain Holdings, Inc. 1, Asahi Group Holdings 10, Calbee, Inc. 6, Kose Corp Seven & i Holdings Co. Ltd. 7, Sundrug Co. Ltd. 4, TOTAL CONSUMER STAPLES 1,468 1,516 ENERGY 0.4% INPEX Corp. 19, FINANCIALS 4.9% Mitsubishi UFJ Financial Group, Inc. 169,800 1,164 1,422 ORIX Corp. 57, ,134 The Suruga Bank Ltd. 21, TOTAL FINANCIALS 2,521 3,164 HEALTH CARE 2.6% Astellas Pharma, Inc. 27, PeptiDream, Inc. 3, Shionogi & Co. Ltd. 12, Sosei Group Corp. 1, TOTAL HEALTH CARE 1,523 1,664 INDUSTRIALS 7.2% Daikin Industries Ltd. 8, ,126 Fanuc Corp. 2, Makita Corp. 7, Misumi Group, Inc. 16, Mitsubishi Electric Corp. 26, MonotaRO Co. Ltd. 3, NGK Insulators Ltd. 10, Nidec Corp. 2, Nissha Printing Co. Ltd. 5, NSK Ltd. 33, Recruit Holdings Co. Ltd. 2, TOTAL INDUSTRIALS 3,395 4,720 INFORMATION TECHNOLOGY 4.1% Disco Corp. 1, Keyence Corp. 1, Nintendo Co. Ltd. 2, Square Enix Holdings Co. Ltd. 14, Tokyo Electron Ltd. 3, TOTAL INFORMATION TECHNOLOGY 1,763 2,669 MATERIALS 1.9% Hitachi Metals Ltd. 23, Sumitomo Chemical Co. Ltd. 46, Taiyo Nippon Sanso Corp. 31, TOTAL MATERIALS 1,182 1,267 Shares / Units Cost Market Value REAL ESTATE 1.9% Daito Trust Construction Co. Ltd. 1,400 $ 249 $ 256 Mitsubishi Estate Co. Ltd. 16, Mitsui Fudosan Co. Ltd. 21, TOTAL REAL ESTATE 1,269 1,240 TELECOMMUNICATION SERVICES 2.3% KDDI Corp. 29, ,042 SoftBank Corp. 5, TOTAL TELECOMMUNICATION SERVICES 1,170 1,514 TOTAL JAPAN 20,298 24,618 Korea (South) 6.5% CONSUMER STAPLES 1.8% AMOREPACIFIC Corp. 1, LG Household & Health Care Ltd TOTAL CONSUMER STAPLES 1,145 1,160 INFORMATION TECHNOLOGY 4.7% LG Innotek Co. Ltd. 1, NCSOFT Corp. 1, Samsung Electronics Co. Ltd ,474 1,905 SK Hynix, Inc. 5, TOTAL INFORMATION TECHNOLOGY 2,309 3,100 TOTAL KOREA (SOUTH) 3,454 4,260 New Zealand 2.6% HEALTH CARE 0.9% Ryman Healthcare Group Ltd. 70, INDUSTRIALS 0.3% Auckland International Airport Ltd. 31, MATERIALS 1.4% Nufarm Finance (NZ) Ltd. 0.00% 10, TOTAL NEW ZEALAND 1,342 1,663 Philippines 1.9% CONSUMER DISCRETIONARY 1.0% Jollibee Food Corp. 126, REAL ESTATE 0.9% SM Prime Holdings, Inc. 741, TOTAL PHILIPPINES 1,186 1,218 Singapore 1.6% INDUSTRIALS 1.6% Singapore Technologies Engineering Ltd. 296, ,052 See accompanying notes which are an integral part of the financial statements. 3 Annual Report

4 Fidelity AsiaStar Fund Schedule of Investments continued Equities continued Shares / Units Cost Market Value Taiwan 6.2% INFORMATION TECHNOLOGY 6.2% Largan Precision Co. Ltd. 2,000 $ 128 $ 419 Taiwan Semiconductor Manufacturing Co. Ltd. 437,000 1,623 3,640 TOTAL INFORMATION TECHNOLOGY 1,751 4,059 Thailand 0.9% FINANCIALS 0.3% Kasikornbank PCL (For. Reg.) 26, HEALTH CARE 0.6% Bumrungrad Hospital PCL (For. Reg.) 54, TOTAL THAILAND TOTAL EQUITIES 48,035 64,571 Short-Term Investments 0.6% Principal Amount Canada 0.6% Investments in reverse repurchase agreements in a joint trading account at 0.47%, dated 3/31/17 due 4/3/17 (Collateralized by Canadian Government Obligations) # $ TOTAL INVESTMENT PORTFOLIO 99.6% $48,440 64,976 NET OTHER ASSETS (LIABILITIES) 0.4% 281 NET ASSETS 100% $ 65,257 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 March 31, 2017 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 March 31, 2017: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $12,853 $ 8,019 $ 4,834 $ Consumer Staples 3,061 2, Energy 1, Financials 12,985 9,164 3,821 Health Care 5,526 4,211 1,315 Industrials 5,969 2,781 3,188 See accompanying notes which are an integral part of the financial statements. Annual Reportport 4

5 Valuation Inputs at March 31, 2017: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Information Technology $14,889 $ 6,238 $ 8,651 $ Materials 3,721 3, Real Estate 1, Telecommunication Services 1, ,514 Utilities Short-Term Investments Total Investments in Securities: $64,976 $38,796 $26,180 $ Valuation Inputs at March 31, 2016: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $13,197 $11,728 $ 1,469 $ Consumer Staples 5,586 5,586 Financials 12,857 10,816 2,041 Health Care 10,113 8,544 1,569 Industrials 4,587 3,580 1,007 Information Technology 9,860 4,330 5,530 Materials 3,900 3,900 Telecommunication Services 4,012 1,417 2,595 Utilities 2, ,178 Short-Term Investments Total Investments in Securities: $66,883 $50,809 $16,074 $ The following is a summary of transfers between Level 1 and Level 2 for the periods ended March 31, 2017 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: Transfers Level 1 to Level 2 $ 6,077 Level 2 to Level 1 $ 672 Transfers Level 1 to Level 2 $ 380 Level 2 to Level 1 $ 19,974 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 $ 515 Net Realized Gain (Loss) on Investment Securities 399 Net Unrealized Gain (Loss) on Investment Securities (260) Cost of Purchases Proceeds of Sales (654) 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 $ Total Total 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 Annual Report

6 Fidelity AsiaStar Fund Schedule of Investments continued Other Information # Additional information on each counterparty to the reverse repurchase agreement is as follows: Reverse Repurchase Agreement / Counterparty Value $405,000 due 4/03/17 at 0.47% Bank of Montreal $ 72 Royal Bank of Canada 117 Scotia Capital, Inc. 141 The Toronto-Dominion Bank 75 $ 405 See accompanying notes which are an integral part of the financial statements. Annual Reportport 6

7 Financial Statements Statements of Financial Position Amounts in thousands of Canadian Dollars (except per security amounts) As at March 31, 2017 March 31, 2016 Current assets (Note 3) Investments at fair value through profit or loss $ 64,976 $ 66,883 Cash Receivable for investments sold Accrued interest and dividends receivable Subscriptions receivable ,926 68,227 Current liabilities (Note 3) Payable for investments purchased Redemptions payable Management and advisory fees payable (Note 4) Other payables to affiliates (Note 4) Other payables and accrued expenses (Notes 4 and 5) Net assets attributable to securityholders (Notes 3 and 6) $ 65,257 $ 67,810 Net assets attributable to securityholders per Series and per security (Note 6) Series A: ($7,063 and $10,923, respectively) $ $ Series B: ($39,879 and $42,596, respectively) $ $ Series F: ($5,515 and $4,643, respectively) $ $ Series O: ($5,242 and $5,213, respectively) $ $ Series E1: ($5,067 and $3,370, respectively) $ $ Series E2: ($1,510 and $668, respectively) $ $ Series E3: ($8 and $7, respectively) $ $ Series E4: ($60 and $1, respectively) $ $ Series P1: ($906 and $387, respectively) $ $ 9.38 Series P2: ($6 and $1, respectively) $ $ 9.38 Series P3: ($1 and $1, respectively) $ $ 9.38 See accompanying notes which are an integral part of the financial statements. 7 Annual Report

8 Financial Statements continued Statements of Comprehensive Income Amounts in thousands of Canadian Dollars (except per security amounts) For the periods ended March 31, (Note 1) (Note 1) Investment income (Note 3) Interest $ 1 $ 5 Dividends 1,343 1,889 Net gain (loss) on investments Net realized gain (loss) on investments 2,976 6,210 Change in net unrealized appreciation (depreciation) on investments 5,213 (10,942) 8,189 (4,732) Net gain (loss) on foreign currencies Net realized gain (loss) on foreign currency transactions (7) 84 Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies 9 (15) 2 69 Total investment income (loss) 9,535 (2,769) Operating expenses (Note 4) Management and advisory fees 1,077 1,256 Administration fees Independent Review Committee fees Commissions and other portfolio costs Foreign taxes withheld (Note 5) Sales tax Total operating expenses 1,624 1,935 Expenses waived (Note 4) (21) (41) Net operating expenses 1,603 1,894 Net increase (decrease) in net assets attributable to securityholders from operations $ 7,932 $ (4,663) Other information: Increase (decrease) in net assets attributable to securityholders from operations per Series (Note 3) Series A $ 1,043 $ (899) Series B $ 4,868 $ (3,250) Series F $ 644 $ (375) Series O $ 721 $ (251) Series E1 $ 476 $ 109 Series E2 $ 91 $ 22 Series E3 $ 4 $ Series E4 $ 5 $ Series P1 $ 80 $ (19) Series P2 $ $ Series P3 $ $ Increase (decrease) in net assets attributable to securityholders from operations per Series per security (Notes 3 and 6) Series A $ 1.87 $ (1.04) Series B $ 1.97 $ (1.07) Series F $ 2.26 $ (1.16) Series O $ 2.73 $ (.72) Series E1 $ 1.17 $.42 Series E2 $ 1.02 $.43 Series E3 $.86 $.39 Series E4 $ 3.03 $ See accompanying notes which are an integral part of the financial statements. Annual Reportport 8

9 Statements of Comprehensive Income continued Amounts in thousands of Canadian Dollars (except per security amounts) For the periods ended March 31, (Note 1) (Note 1) Series P1 $ 1.30 $ (.52) Series P2 $ 3.16 $ (.62) Series P3 $ 1.33 $ (.62) See accompanying notes which are an integral part of the financial statements. 9 Annual Report

10 Financial Statements continued Statements of Changes in Net Assets Attributable to Securityholders Amounts in thousands of Canadian Dollars For the period ended March 31, 2017 (Note 1) Total Series A Series B Series F Series O Series E1 Net assets attributable to securityholders, beginning of period $ 67,810 $ 10,923 $ 42,596 $ 4,643 $ 5,213 $ 3,370 Distributions to securityholders (Note 5) Management fee reduction (16) (2) (13) (1) (16) (2) (13) (1) Security transactions (Note 6) Proceeds from sale of securities 12, ,705 1, ,738 Reinvestment of distributions Amounts paid upon redemption of securities (22,699) (5,673) (12,290) (1,715) (1,173) (1,517) (10,469) (4,901) (7,572) 229 (692) 1,221 Increase (decrease) in net assets attributable to securityholders from operations 7,932 1,043 4, Net increase (decrease) in net assets attributable to securityholders (2,553) (3,860) (2,717) ,697 Net assets attributable to securityholders, end of period $ 65,257 $ 7,063 $ 39,879 $ 5,515 $ 5,242 $ 5,067 Amounts in thousands of Canadian Dollars For the period ended March 31, 2017 (Note 1) Series E2 Series E3 Series E4 Series P1 Series P2 Net assets attributable to securityholders, beginning of period $ 668 $ 7 $ 1 $ 387 $ 1 Distributions to securityholders (Note 5) Management fee reduction Security transactions (Note 6) Proceeds from sale of securities 1, Reinvestment of distributions Amounts paid upon redemption of securities (252) (54) (15) (10) 751 (3) Increase (decrease) in net assets attributable to securityholders from operations Net increase (decrease) in net assets attributable to securityholders Net assets attributable to securityholders, end of period $ 1,510 $ 8 $ 60 $ 906 $ 6 Amounts in thousands of Canadian Dollars For the period ended March 31, 2017 (Note 1) Series P3 Net assets attributable to securityholders, beginning of period $ 1 Distributions to securityholders (Note 5) Management fee reduction Security transactions (Note 6) Proceeds from sale of securities Reinvestment of distributions Amounts paid upon redemption of securities Increase (decrease) in net assets attributable to securityholders from operations Net increase (decrease) in net assets attributable to securityholders Net assets attributable to securityholders, end of period $ 1 See accompanying notes which are an integral part of the financial statements. Annual Reportport 10

11 Statements of Changes in Net Assets Attributable to Securityholders continued Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 (Note 1) Total Series A Series B Series F Series O Series E1 Net assets attributable to securityholders, beginning of period $ 82,561 $ 16,640 $ 53,447 $ 6,347 $ 6,127 $ Distributions to securityholders (Note 5) Management fee reduction (16) (4) (11) (1) (16) (4) (11) (1) Security transactions (Note 6) Proceeds from sale of securities 17,570 1,282 5,301 4,281 2,304 3,328 Reinvestment of distributions Amounts paid upon redemption of securities (27,658) (6,100) (12,902) (5,610) (2,967) (67) (10,072) (4,814) (7,590) (1,328) (663) 3,261 Increase (decrease) in net assets attributable to securityholders from operations (4,663) (899) (3,250) (375) (251) 109 Net increase (decrease) in net assets attributable to securityholders (14,751) (5,717) (10,851) (1,704) (914) 3,370 Net assets attributable to securityholders, end of period $ 67,810 $ 10,923 $ 42,596 $ 4,643 $ 5,213 $ 3,370 Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 (Note 1) Series E2 Series E3 Series E4 Series P1 Series P2 Net assets attributable to securityholders, beginning of period $ $ $ $ $ Distributions to securityholders (Note 5) Management fee reduction Security transactions (Note 6) Proceeds from sale of securities Reinvestment of distributions Amounts paid upon redemption of securities (11) (1) Increase (decrease) in net assets attributable to securityholders from operations 22 (19) Net increase (decrease) in net assets attributable to securityholders Net assets attributable to securityholders, end of period $ 668 $ 7 $ 1 $ 387 $ 1 Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 (Note 1) Series P3 Net assets attributable to securityholders, beginning of period $ Distributions to securityholders (Note 5) Management fee reduction Security transactions (Note 6) Proceeds from sale of securities 1 Reinvestment of distributions Amounts paid upon redemption of securities 1 Increase (decrease) in net assets attributable to securityholders from operations Net increase (decrease) in net assets attributable to securityholders 1 Net assets attributable to securityholders, end of period $ 1 See accompanying notes which are an integral part of the financial statements. 11 Annual Report

12 Financial Statements continued Statements of Cash Flows Amounts in thousands of Canadian Dollars 2017 (Note 1) 2016 (Note 1) For the periods ended March 31, Cash flows from (used in) operating activities: Purchases of investments $ (28,045) $ (41,556) Proceeds from sale and maturity of investments 38,439 51,689 Cash receipts from dividend income 1,372 1,647 Cash receipts from interest income 2 7 Cash paid for operating expenses (1,525) (1,744) Net cash from (used in) operating activities 10,243 10,043 Cash flows from (used in) financing activities: Proceeds from sales of securities 2,858 17,703 Amounts paid upon redemption of securities (13,296) (27,648) Net cash from (used in) financing activities (10,438) (9,945) Net change in cash (195) 98 Foreign exchange gain (loss) on cash 6 (9) Cash, beginning of period Cash, end of period $ 454 $ 643 See accompanying notes which are an integral part of the financial statements. Annual Reportport 12

13 Notes to Financial Statements For the periods ended March 31, 2017 and 2016 (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) 1. Formation of the Fund Fidelity AsiaStar Fund (Fund) is an open end mutual fund trust formed under the laws of Ontario and governed by a Master Declaration of Trust dated April 24, 2006 (Inception Date), as amended thereafter from time to time. The Fund is authorized to issue an unlimited number of securities. 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 C, Series T5 and Series T8 securities are available to all investors in a deferred sales charge (DSC) option. Series A, Series T5 and Series T8 securities will be converted to lower management and advisory fee Series B, Series S5 and Series S8 securities, respectively, one year after completion of their redemption schedule. Series B, Series D, Series S5 and Series S8 securities are available to all investors in an initial sales charge (ISC) option. Series C and Series D securities are available to investors who have enrolled in the rebalancing service. Series F, Series F5 and Series F8 securities are usually only available to investors who have fee based accounts with dealers who have signed an eligibility agreement with Fidelity. Series E1, Series E1T5, Series E2, Series E2T5, Series E3, Series E3T5, Series E4, Series E4T5, Series E5 and Series E5T5 securities are available only to investors who initially hold Series B and/or Series S5 securities and then become eligible to hold certain Series E securities. Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P3T5, Series P4, Series P4T5, Series P5 and Series P5T5 securities are available only to investors who initially hold Series F and/or Series F5 securities and then become eligible to hold certain Series P securities. Series O securities 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 securities 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. In addition, Series F5, Series F8, Series I5, Series I8, Series T5, Series T8, Series S5, Series S8, Series E1T5, Series E2T5, Series E3T5, Series E4T5, Series E5T5, Series P1T5, Series P2T5, Series P3T5, Series P4T5, and Series P5T5 securities 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 O, Series E1, Series E2, Series E3, Series E4, Series P1, Series P2 and Series P3 securities. The Fund commenced the offering of Series P1, Series P2 and Series P3 securities on December 4, 2015 and commenced the offering of Series E1, Series E2, Series E3 and Series E4 securities on February 5, The Fund meets the definition of an investment entity and its purpose is to provide investment management services to its securityholders 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 financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). The accounting policies set out below have been applied consistently unless otherwise stated. The financial statements were authorized for issue by Fidelity s board of directors on June 8, Functional and Presentation Currency These financial statements are presented in Canadian dollars, which is the Fund s functional currency. Comparative Figures- Per security comparative figures have been conformed to the current rounding presentation of two decimal places. 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 March 31, 2017 and March 31, 2016, is included at the end of the Fund s Schedule of Investments. 13 Annual Report

14 Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) 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 securities as financial liabilities in accordance with IAS 32 Financial Instruments Presentation (IAS 32). These judgments centre upon the determination that the Fund s redeemable securities 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 securityholder). Therefore, the ongoing redemption feature is not the securities 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 March 31, 2017 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 March 31, 2017 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 equity securities and Exchange-traded funds (ETFs) 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, 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 equity 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. Short-term securities for which quotations are not readily available are valued at amortized cost, which approximates fair value and are categorized as Level 2 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 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 March 31, 2017 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, Fund s security 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 short-term nature. Classification of redeemable securities issued by the Fund In accordance with IAS 32, the Fund s redeemable securities 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 securityholder) and, therefore, the ongoing redemption feature is not the securities only contractual obligation. In addition, each series of redeemable Annual Reportport 14

15 securities are equally subordinated to each other, but have differing features as outlined in the notes below. Therefore, the Fund s redeemable securities 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 securityholders is recorded at the redemption amount. As at March 31, 2017 and March 31, 2016, the Fund s net asset value per Series per security may differ by less than $0.01 from its net assets attributable to securityholders per Series per securities 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. Net realized gains and losses from the sale of investments (which may include proceeds received from litigation) and change in net unrealized appreciation (depreciation) on investments are calculated with reference to average cost of the related investment securities. 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. 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. Transaction costs, such as brokerage commissions, incurred in the purchase and sale of investment securities by the Fund are recognized as Commissions and other portfolio costs in the Statements of Comprehensive Income. 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. Reverse Repurchase Agreements Uninvested cash balances may be transferred into one or more joint trading accounts where these balances are invested in reverse repurchase transactions. In reverse repurchase transactions, U.S. or Canadian Government securities are purchased from a counterparty who agrees to repurchase the securities at a higher price at a specified future date. The difference in price is reported as interest income. Credit risk arises from the potential for a counterparty to default on its obligation to repurchase the security. The risk is managed by the use of counterparties acceptable to Fidelity and by the receipt of the securities as collateral. The value of the collateral must be at least 102% of the daily fair value of the cash invested. Any reverse repurchase agreements open at period end are included in the Schedule of Investments. March 31, 2017 Collateral Description Interest Rate (%) Maturity Date % of Collateral Collateral Value as a % of CAD Cash Invested Canada Housing Trust /15/2017 6/15/ Canadian Treasury Bonds /1/2018 6/1/ March 31, 2016 Collateral Description Interest Rate (%) Maturity Date % of Collateral Collateral Value as a % of CAD Cash Invested Canadian Treasury Bonds /1/ /1/ Valuation of Series Separate net assets attributable to securityholders is calculated for each Series of securities of the Fund. The net assets attributable to securityholders 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 securityholders of each Series, except for items that can be specifically attributed to one or more Series. Per Security from Operations - The increase (decrease) in net assets attributable to securityholders resulting from operations per security in the Statements of Comprehensive Income represent the operational increase (decrease) for each Series of the Fund, divided by the relevant weighted average securities outstanding during the period. Refer to the Security Transactions Note for the Fund s weighted average securities outstanding. 15 Annual Report

16 Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) 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 does not plan to adopt the new standard early. 4. Expenses and Other Related Party Transactions Management and Advisory Fees Fidelity serves as the manager and investment advisor of the Fund. Fidelity is part of a broader group of companies collectively known as Fidelity Investments. 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 Securityholders. No management and advisory fees are charged with respect to the Series O securities, 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 E Series E Series E Series E Series P Series P Series P Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable and administrative expenses, including the provision of key administrative 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, 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 securities. 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: Annual Reportport 16

17 Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A Series B Series F Series E Series E Series E Series E Series P Series P Series P Prior to November 1, 2016, 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): Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A Series B Series F Series E Series E Series E Series E 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): Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A Series B Series F Independent Review Committee Fees - The Independent Review Committee (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 securities. 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 GST/HST liability or refund is calculated using the residency of securityholders 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 securityholders 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. Expenses Waived - Fidelity may absorb or waive certain expenses at its sole discretion and can terminate the absorption or waiver at any time. Fidelity waived a portion of its administration fee which is disclosed as Expenses waived in the Statements of Comprehensive Income. Commissions and Other Portfolio Costs - Commissions and other portfolio costs paid for security transactions during the period were $95 (March 31, 2016: $103), of which $- (March 31, 2016: $-) were paid to brokerage firms that are affiliates of Fidelity Investments. 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 $1 (March 31, 2016: $24) 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 $34 (March 31, 2016: $42). 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 17 Annual Report

18 Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) 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 securityholders 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. Foreign withholding taxes are imposed by certain countries on investment income and are estimated based on the tax rules and actual rates that exist in the foreign markets. Investment income is recorded gross of foreign taxes withheld. Foreign 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 securityholders 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 securities outstanding. 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 $5,935 of capital losses available to be carried forward. Non capital losses may be carried forward for up to 20 tax years to reduce future taxable income, but expire in December of the year noted. As at the last taxation year-end, the Fund had the following non capital losses available to be carried forward. Expiration Date of Non Capital Losses ($) Capital Risk Management Securities 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 securities of equal value, with no par value. All securities in a series of the Fund rank equally with respect to distributions. A securityholder of the Fund is entitled to one vote for each one dollar in value of securities owned. Fractional securities are proportionately entitled to these rights. The Fund generally has no restrictions or specific capital requirements on the subscriptions and redemptions of securities other than minimum subscription requirements; although, on rare occasions, Fidelity may temporarily suspend securityholders right to redeem securities and postpone paying sale proceeds. The relevant movements attributable to securityholders are shown in the Statements of Changes in Net Assets Attributable to Securityholders. 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. Security Transactions - Security transactions and weighted average securities for each Series were as follows: Annual Reportport 18

19 Securities Outstanding, Beginning of Period Issued Reinvested Redeemed Securities Outstanding, End of Period Weighted Average Securities Period ended March 31, 2017 Series A (343) Series B 2, (731) 2,245 2,466 Series F (95) Series O (60) Series E (143) Series E (24) Series E3 1 5 (5) 1 4 Series E Series P (1) Series P2 1 1 Series P3 Period ended March 31, 2016 Series A 1, (378) Series B 3, (803) 2,696 3,045 Series F (317) Series O (154) Series E1 344 (7) Series E2 68 (1) Series E Series E4 Series P Series P2 Series P3 Affiliated Ownership - As at March 31, 2017, Fidelity and its affiliates held approximately 8% of the Fund. As at March 31, 2016, Fidelity and its affiliates held approximately 8% 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. Derivative financial instruments may be used to moderate certain risk exposures. 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. The Fund aims to achieve long-term capital growth by investing primarily in equity securities of companies located in the Asia Pacific region and in companies that derive a significant portion of their revenues from that region. The Fund s benchmark is the MSCI AC (All Country) Asia Pacific 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, both indirect and 19 Annual Report

20 Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) direct, in the case of financial assets are considered, where applicable, in determining the fair value of financial assets and financial liabilities. 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 March 31, 2017 and March 31, Collateralized reverse repurchase agreements may result in credit exposure in the event that the counterparty to the transaction is unable to fulfill its contractual obligations. The risk is managed by the receipt of the underlying securities as collateral and use of counterparties whose credit worthiness is considered sufficient based on Fidelity s independent review. Other than outlined above, there were no significant concentrations of credit risk to counterparties as at March 31, 2017 and March 31, Concentration Risk - The Fund may be exposed to risk based on the concentration levels of its financial instruments in various sectors, geographic regions, asset weightings and market capitalization, as applicable. Fidelity analyzes and monitors these concentration risks regularly. The following tables summarize the investment concentration risks that are relevant for the Fund. Sector Mix % of Fund s Net Assets as at 3/31/17 % of Fund s Net Assets as at 3/31/16 Information Technology Financials Consumer Discretionary Industrials Health Care Materials Consumer Staples Telecommunication Services Real Estate Energy Utilities Cash and Short-Term Investments Net Other Assets (Liabilities) (0.3) 0.4 Geographic Mix % of Fund s Net Assets as at 3/31/17 % of Fund s Net Assets as at 3/31/16 Japan Australia Cayman Islands Hong Kong Korea (South) Taiwan India China New Zealand Philippines Singapore Indonesia Others (Individually Less Than 1%) Cash and Short-Term Investments Net Other Assets (Liabilities) (0.3) 0.4 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 its redeemable securities. Redeemable securities are redeemed on demand at the securityholder s option based on the Fund s net asset value per security (NAVPS) at the time of redemption. The Fund may be exposed to indirect liquidity risk through its investments. 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 Annual Reportport 20

21 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 liquidity position is monitored on a daily basis. As at March 31, 2017 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 financial instruments present a risk of loss of capital. This risk is moderated 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. 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 March 31, 2017 and March 31, 2016, with all other variables held constant, the net assets attributable to securityholders of the Fund would have increased or decreased by approximately $2,989 (March 31, 2016: $3,177). 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 directly or indirectly 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 may be invested in short-term investments at market interest rates. The majority of the Fund s financial instrument exposure is non-interest bearing. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of 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 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. Foreign exchange exposure relating to non-monetary assets and liabilities is considered 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 Annual Report

22 Management Report and Independent Auditor s Report Management Responsibility for Financial Reporting To the Securityholders and Trustee of Fidelity AsiaStar Fund (Fund) The accompanying financial statements have been prepared by Fidelity Investments Canada ULC (Fidelity), as manager of the Fund. Fidelity is responsible for the information and representations contained in these financial statements. The Board of Directors of Fidelity is responsible for reviewing and approving the financial statements. Fidelity maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have been prepared in accordance with International Financial Reporting Standards and include certain amounts and disclosures that are based on estimates and judgments. The significant accounting policies, which management believes are appropriate for the Fund, are described in Note 3 to the financial statements. PricewaterhouseCoopers LLP is the external auditor of the Fund. They have audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express to the securityholders their opinion on the financial statements. Their report is set out below. Brock Dunlop Vice President and Fund Treasurer Fidelity Investments Canada ULC June 8, 2017 Independent Auditor s Report To the Securityholders and Trustee of Fidelity AsiaStar Fund (Fund) We have audited the accompanying financial statements of the Fund, which comprise the statements of financial position as at March 31, 2017 and 2016 and the statements of comprehensive income, changes in net assets attributable to securityholders and cash flows for the years ended March 31, 2017 and 2016, and the related notes, which comprise a summary of significant accounting policies and other explanatory information. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2017 and 2016 and its financial performance and its cash flows for the years ended March 31, 2017 and 2016 in accordance with International Financial Reporting Standards. PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario June 8, 2017 Annual Reportport 22

23 23 Annual Report

24 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 securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund or Fidelity U.S. Money Market Fund will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of FMR LLC E FICL-ASF-ANN-0617