Fidelity Global Real Estate Fund

Transcription

1 Fidelity Global Real Estate Fund Annual Management Report of Fund Performance March 31,

2 Caution Regarding Forward-looking Statements Certain portions of this report, including, but not limited to, Results of Operations and Recent Developments, may contain forward-looking statements about the Fund, including its strategy, risks, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as expects, anticipates, intends, plans, believes, estimates and similar forward-looking expressions or negative versions thereof. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. It should be stressed that the above-mentioned list of important factors is not exhaustive. You are encouraged to consider these and other factors carefully before making any investment decisions and you are urged to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance.

3 Annual Management Report of Fund Performance as at March 31, Fidelity Global Real Estate Fund This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund. Management Discussion of Fund Performance Investment Objective and Strategies Investment Objective: Fidelity Global Real Estate Fund (Fund) aims to achieve a high total investment return by investing in securities of companies anywhere in the world that participate in the real estate industry. Strategies: The Fund invests primarily in real estate investment trusts (REITs) and in equity securities of companies that invest or operate primarily in the real estate sector. This includes companies that own, manage, develop, finance and otherwise participate in the residential and commercial real estate industry. The Fund may invest in small, medium and large companies and REITs. It may hold cash and invest in fixedincome securities. Risk The risks associated with investing in the Fund remain as discussed in the prospectus. Any changes to the Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors wishing to add exposure of real estate securities to their portfolio and willing to accept a medium to high level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations The Fidelity Global Real Estate Fund (Fund), Series B, returned.5%, after fees and expenses for the one-year period ended March 31,. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. During the review period, global equities, as represented by the MSCI World Index, returned 18.3% (in Canadian dollar terms). Market overview: Global equities registered positive returns during the review period owing to the continued low interest rate environment around the world. The U.S. was the best performing market, driven by positive economic data and optimism surrounding the proposed policies of the new U.S. administration. Canadian markets performed well amid a recovery in commodity prices, especially metals and oil, and an improved economic environment. European markets lagged global markets as consequences of the U.K. decision to leave the European Union heightened investor concerns. Factors affecting performance: The Fund s benchmark, the FTSE EPRA/NAREIT Developed Index, returned 3.4% during the review period. The Fund underperformed its benchmark primarily due to its exposure to certain stocks in the diversified real estate industry. Investment in U.K.-based commercial property developer British Land Company, and lack of exposure to Hong Kong-based property holding company Wharf, detracted from relative returns. Among other industries, investment in U.K.-based property developer Great Portland Estates detracted from relative performance. At the end of the review period, the Fund did not have any exposure to Great Portland Estates. In contrast, exposure to certain stocks in the hotel industry such as U.S.-based hotel Host Hotels and Resorts, contributed to relative returns. Among other industries, investment in Austria-based real estate developer Buwog, Hong Kong-based property developer Sun Hung Kai Properties, and U.S.-based REIT Duke Realty REIT, contributed to relative returns. Portfolio changes: During the review period, global real estate portfolio manager, Steve Buller, increased exposure to diversified and office real estate securities, in particular to firms with strong net operating income growth that were trading below their net asset values. In contrast, exposure was reduced to retail securities. The portfolio manager believes that the retail industry faces a challenging environment given the shift away from storefront retailers towards online sales. The Fund held a larger-than-benchmark exposure to diversified and residential property securities. Conversely, retail and hotel property securities represented the Fund s lower-than-benchmark positions. On an absolute basis, diversified and residential property securities represented the Fund s largest exposures. Portfolio construction is based on the fundamentals of individual securities. Mr. Buller focuses on maintaining a balance between catalyst-driven ideas, economically sensitive ideas and defensive positions. 1

4 Fidelity Global Real Estate Fund Management Discussion of Fund Performance continued Recent Developments Global real estate portfolio manager, Steve Buller, believes the valuations of global REITs are favourable. He notes that the performance of property securities could be dependent on the broader equity markets in the near-term, as a continuation of the sentiment-based market rally following the U.S. election could be a headwind for REITs. On the margin, Mr. Buller has been focusing more on sector themes given the prevailing overhang from macro factors affecting REIT market performance. Independent Review Committee Effective February 28,, Helen M. Meyer retired from the Independent Review Committee and was replaced by James E. Cook as Chair. Also effective on that date, Frances Horodelski of Toronto, Ontario became a member of the Independent Review Committee. 2

5 Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader group of companies collectively known as Fidelity Investments. Fidelity provides or arranges for the provision of all general management and administrative services required by the Fund in its day to day operations, bookkeeping, record keeping and other administrative services for the Fund. Fidelity is the portfolio adviser to the Fund and it provides investment advisory services to the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including FMR Co., Inc., to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $995, for the period ended March 31,. Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges). The Fund pays an annual rate, which is calculated on a tiered basis, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $153, for the period ended March 31,. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Investments, including National Financial Services LLC, provided it determines that these affiliates trade execution abilities and costs are comparable to those of non affiliated, qualified brokerage firms, on an execution only basis. Commissions paid to brokerage firms that are affiliates of Fidelity Investments were $1, for the period ended March 31,. Fidelity receives standing instructions from the IRC in respect of policies and procedures governing best execution of transactions with affiliates, which includes brokers affiliated to Fidelity Investments, at least once per year. 3

6 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the period end of the years shown. This information is derived from the Fund s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund s annual or semi-annual financial statements. Fidelity Global Real Estate Fund Series A Periods ended March 31, Net assets, beginning of period B $ $ $ 1.25 $ 9.48 $ 7.92 Total revenue Total expenses (excluding distributions) (.4) (.41) (.36) (.33) (.22) Realized gains (losses) Unrealized gains (losses) (.5) (.6) 1.8 (.28) 1.5 Total increase (decrease) from operations B (.6) From net investment income (excluding dividends) (.31) (.1) (.2) From dividends (.3) From capital gains Return of capital Total distributions B,C (.31) (.1) (.2) (.3) Net assets, end of period B $ $ $ $ 1.25 $ 9.47 Net asset value (s) D $ 6,523 $ 8,529 $ 1,626 $ 9,833 $ 17,319 Securities outstanding D 482,39 62, ,35 958,397 1,826,411 Management expense ratio E,F 2.56% 2.57% 2.63% 2.67% 2.62% Management expense ratio before waivers or absorptions E,F 2.59% 2.64% 2.67% 2.67% 2.62% Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Real Estate Fund Series B Periods ended March 31, Net assets, beginning of period B $ $ $ 1.29 $ 9.52 $ 7.94 Total revenue Total expenses (excluding distributions) (.38) (.39) (.34) (.31) (.2) Realized gains (losses) Unrealized gains (losses) (.48) (.63) 1.83 (.3) 1.6 Total increase (decrease) from operations B From net investment income (excluding dividends) (.33) (.3) (.3) (.4) From dividends (.4) From capital gains Return of capital Total distributions B,C (.33) (.3) (.3) (.4) (.4) Net assets, end of period B $ $ $ $ 1.29 $ 9.51 Net asset value (s) D $ 27,4 $ 32,792 $ 35,642 $ 28,585 $ 26,729 Securities outstanding D 1,989,916 2,352,34 2,639,77 2,774,661 2,88,563 Management expense ratio E,F 2.37% 2.39% 2.43% 2.45% 2.42% Management expense ratio before waivers or absorptions E,F 2.41% 2.44% 2.46% 2.45% 2.42% Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $

7 Fidelity Global Real Estate Fund Series F Periods ended March 31, Net assets, beginning of period B $ $ $ 1.39 $ 9.61 $ 8.2 Total revenue Total expenses (excluding distributions) (.22) (.24) (.21) (.2) (.11) Realized gains (losses) Unrealized gains (losses) (.43) (.7) 2.1 (1.16) 1.14 Total increase (decrease) from operations B (.12) 1.78 From net investment income (excluding dividends) (.49) (.2) (.18) (.15) From dividends (.14) From capital gains Return of capital Total distributions B,C (.49) (.2) (.18) (.15) (.14) Net assets, end of period B $ 13.7 $ $ $ 1.39 $ 9.6 Net asset value (s) D $ 5,215 $ 6,497 $ 7,273 $ 2,49 $ 2,932 Securities outstanding D 38, ,82 534,982 24,295 35,5 Management expense ratio E,F 1.23% 1.24% 1.24% 1.31% 1.31% Management expense ratio before waivers or absorptions E,F 1.26% 1.31% 1.29% 1.31% 1.31% Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Real Estate Fund Series F5 Periods ended March 31, I Net assets, beginning of period B $ $ $ $ 2. Total revenue Total expenses (excluding distributions) (.38) (.45) (.39) (.31) Realized gains (losses) Unrealized gains (losses) (.64) (.25) Total increase (decrease) from operations B From net investment income (excluding dividends) (.82) (.34) (.31) (.28) From dividends From capital gains Return of capital (1.24) (1.4) (.98) (.91) Total distributions B,C (2.6) (1.39) (1.29) (1.19) Net assets, end of period B $ $ $ $ Net asset value (s) D $ 269 $ 24 $ 48 $ 26 Securities outstanding D 11,954 9,968 1,953 1,31 Management expense ratio E,F 1.24% 1.25% 1.31% 1.34% Management expense ratio before waivers or absorptions E,F 1.27% 1.32% 1.35% 1.34% Trading expense ratio G.11%.1%.16%.13% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% Net asset value per security, end of period $ $ $ $

8 Financial Highlights continued Fidelity Global Real Estate Fund Series F8 Periods ended March 31, I Net assets, beginning of period B $ $ $ 19.8 $ 2. Total revenue Total expenses (excluding distributions) (.34) (.4) (.4) (.28) Realized gains (losses) Unrealized gains (losses) (.72) (1.56) 6.4 (1.21) Total increase (decrease) from operations B From net investment income (excluding dividends) (.74) (.32) (.26) (.28) From dividends From capital gains Return of capital (1.83) (1.63) (1.57) (1.46) Total distributions B,C (2.57) (1.95) (1.83) (1.74) Net assets, end of period B $ 19.9 $ $ $ 19.8 Net asset value (s) D $ 96 $ 242 $ 59 $ 1 Securities outstanding D 4,842 9,213 2, Management expense ratio E,F 1.24% 1.24% 1.26% 1.27% Management expense ratio before waivers or absorptions E,F 1.27% 1.3% 1.33% 1.27% Trading expense ratio G.11%.1%.16%.13% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% Net asset value per security, end of period $ $ $ $ Fidelity Global Real Estate Fund Series O Periods ended March 31, Net assets, beginning of period B $ 14.4 $ $ 1.42 $ 9.64 $ 8.5 Total revenue Total expenses (excluding distributions) (.5) (.8) (.6) (.7) Realized gains (losses) Unrealized gains (losses) (.55) (.45) 1.91 (.23) 1.11 Total increase (decrease) from operations B From net investment income (excluding dividends) (.67) (.38) (.32) (.27) From dividends (.26) From capital gains Return of capital Total distributions B,C (.67) (.38) (.32) (.27) (.26) Net assets, end of period B $ $ 14.4 $ $ 1.42 $ 9.63 Net asset value (s) D $ 411,763 $ 557,767 $ 431,248 $ 222,553 $ 22,281 Securities outstanding D 3,36,832 39,562,47 31,57,199 21,355,884 22,848,94 Management expense ratio J.1% % % % % Management expense ratio before waivers or absorptions J.1% % % % % Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $

9 Fidelity Global Real Estate Fund Series T5 Periods ended March 31, Net assets, beginning of period B $ $ $ $ 12.8 $ 1.56 Total revenue Total expenses (excluding distributions) (.44) (.47) (.43) (.4) (.3) Realized gains (losses) Unrealized gains (losses) (.58) (.8) 2.15 (.31) 1.47 Total increase (decrease) from operations B (.9) From net investment income (excluding dividends) (.34) (.1) (.1) From dividends (.2) From capital gains Return of capital (.8) (.63) (.58) (.58) (.51) Total distributions B,C (1.14) (.65) (.59) (.58) (.53) Net assets, end of period B $ $ $ $ $ 12.7 Net asset value (s) D $ 218 $ 261 $ 43 $ 424 $ 197 Securities outstanding D 15,236 16,971 25,769 34,112 16,3 Management expense ratio E,F 2.54% 2.51% 2.66% 2.79% 2.75% Management expense ratio before waivers or absorptions E,F 2.58% 2.62% 2.72% 2.79% 2.75% Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Real Estate Fund Series T8 Periods ended March 31, Net assets, beginning of period B $ $ $ 9.67 $ 9.63 $ 8.71 Total revenue Total expenses (excluding distributions) (.33) (.37) (.34) (.33) (.25) Realized gains (losses) Unrealized gains (losses) (.33) (.5) 1.62 (.28) 1.36 Total increase (decrease) from operations B From net investment income (excluding dividends) (.23) (.1) From dividends (.2) From capital gains Return of capital (.95) (.75) (.68) (.68) (.73) Total distributions B,C (1.18) (.75) (.68) (.7) (.75) Net assets, end of period B $ 1.25 $ $ $ 9.67 $ 9.62 Net asset value (s) D $ 1,87 $ 2,443 $ 2,671 $ 2,249 $ 2,234 Securities outstanding D 182, ,6 224, , ,17 Management expense ratio E,F 2.64% 2.65% 2.74% 2.76% 2.74% Management expense ratio before waivers or absorptions E,F 2.67% 2.77% 2.82% 2.76% 2.74% Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $

10 Financial Highlights continued Fidelity Global Real Estate Fund Series S5 Periods ended March 31, Net assets, beginning of period B $ $ $ $ $ 1.62 Total revenue Total expenses (excluding distributions) (.42) (.46) (.41) (.38) (.28) Realized gains (losses) Unrealized gains (losses) (.66) (.7) 2.19 (.29) 1.32 Total increase (decrease) from operations B (.13) From net investment income (excluding dividends) (.35) (.2) (.3) (.3) From dividends (.5) From capital gains Return of capital (.8) (.63) (.57) (.58) (.51) Total distributions B,C (1.15) (.66) (.61) (.61) (.56) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 71 $ 653 $ 699 $ 622 $ 474 Securities outstanding D 49,368 45,944 44,558 49,738 38,972 Management expense ratio E,F 2.42% 2.43% 2.51% 2.57% 2.51% Management expense ratio before waivers or absorptions E,F 2.46% 2.53% 2.58% 2.57% 2.51% Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Real Estate Fund Series S8 Periods ended March 31, Net assets, beginning of period B $ $ $ 9.75 $ 9.7 $ 8.77 Total revenue Total expenses (excluding distributions) (.3) (.34) (.31) (.31) (.23) Realized gains (losses) Unrealized gains (losses) (.38) (.5) 1.75 (.4) 1.36 Total increase (decrease) from operations B From net investment income (excluding dividends) (.26) (.2) (.3) (.3) From dividends (.4) From capital gains Return of capital (.96) (.76) (.69) (.7) (.73) Total distributions B,C (1.22) (.78) (.72) (.73) (.77) Net assets, end of period B $ 1.33 $ $ $ 9.75 $ 9.69 Net asset value (s) D $ 1,893 $ 2,271 $ 2,498 $ 1,929 $ 2,262 Securities outstanding D 183, ,665 28,88 198, ,7 Management expense ratio E,F 2.37% 2.39% 2.47% 2.51% 2.53% Management expense ratio before waivers or absorptions E,F 2.41% 2.48% 2.53% 2.51% 2.53% Trading expense ratio G.11%.1%.16%.13%.12% Portfolio turnover rate H 4.95% 46.61% 79.% 85.89% 64.88% Net asset value per security, end of period $ $ $ $ $

11 Fidelity Global Real Estate Fund Series E1 Periods ended March 31, 216 K Net assets, beginning of period B $ 1.3 $ 1. Total revenue.41.1 Total expenses (excluding distributions) (.28) (.5) Realized gains (losses).26.5 Unrealized gains (losses) (.46).7 Total increase (decrease) from operations B (.7).8 From net investment income (excluding dividends) (.25) From dividends From capital gains Return of capital Total distributions B,C (.25) Net assets, end of period B $ 1.9 $ 1.3 Net asset value (s) D $ 3,899 $ 2,378 Securities outstanding D 386, ,876 Management expense ratio E,L 2.31% 2.31% Management expense ratio before waivers or absorptions E,L 2.34% 2.35% Trading expense ratio G.11%.1% Portfolio turnover rate H 4.95% 46.61% Net asset value per security, end of period $ $ Fidelity Global Real Estate Fund Series E1T5 Periods ended March 31, 216 K Net assets, beginning of period B $ 2.41 $ 2. Total revenue Total expenses (excluding distributions) (.55) (.1) Realized gains (losses) Unrealized gains (losses) (2.8).38 Total increase (decrease) from operations B (1.44).58 From net investment income (excluding dividends) (.48) From dividends From capital gains Return of capital (1.5) (.18) Total distributions B,C (1.53) (.18) Net assets, end of period B $ $ 2.41 Net asset value (s) D $ 85 $ 1 Securities outstanding D 4,491 5 Management expense ratio E,L 2.34% 2.48% Management expense ratio before waivers or absorptions E,L 2.37% 2.48% Trading expense ratio G.11%.1% Portfolio turnover rate H 4.95% 46.61% Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Global Real Estate Fund Series E2 Periods ended March 31, 216 K Net assets, beginning of period B $ 1.3 $ 1. Total revenue.39.1 Total expenses (excluding distributions) (.26) (.5) Realized gains (losses).27.5 Unrealized gains (losses) (.26).73 Total increase (decrease) from operations B From net investment income (excluding dividends) (.26) From dividends From capital gains Return of capital Total distributions B,C (.26) Net assets, end of period B $ 1.9 $ 1.3 Net asset value (s) D $ 259 $ 286 Securities outstanding D 25,678 27,766 Management expense ratio E,L 2.21% 2.22% Management expense ratio before waivers or absorptions E,L 2.24% 2.26% Trading expense ratio G.11%.1% Portfolio turnover rate H 4.95% 46.61% Net asset value per security, end of period $ $ Fidelity Global Real Estate Fund Series E3 Periods ended March 31, 216 K Net assets, beginning of period B $ 1.3 $ 1. Total revenue.46.9 Total expenses (excluding distributions) (.27) (.3) Realized gains (losses).2.6 Unrealized gains (losses) (.75).18 Total increase (decrease) from operations B (.36).3 From net investment income (excluding dividends) (.28) From dividends From capital gains Return of capital Total distributions B,C (.28) Net assets, end of period B $ 1.9 $ 1.3 Net asset value (s) D $ 18 $ 1 Securities outstanding D 1,743 1 Management expense ratio E,L 2.4% 2.7% Management expense ratio before waivers or absorptions E,L 2.7% 2.44% Trading expense ratio G.11%.1% Portfolio turnover rate H 4.95% 46.61% Net asset value per security, end of period $ $

13 Fidelity Global Real Estate Fund Series E4 Periods ended March 31, M Net assets, beginning of period B $ 1. Total revenue.6 Total expenses (excluding distributions) (.5) Realized gains (losses).8 Unrealized gains (losses) (.2) Total increase (decrease) from operations B.7 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 1.7 Net asset value (s) D $ 13 Securities outstanding D 1,325 Management expense ratio E,N 2.1% Management expense ratio before waivers or absorptions E,N 2.3% Trading expense ratio G.11% Portfolio turnover rate H 4.95% Net asset value per security, end of period $ Fidelity Global Real Estate Fund Series P1 Periods ended March 31, 216 O Net assets, beginning of period B $ 1.1 $ 1. Total revenue Total expenses (excluding distributions) (.16) (.6) Realized gains (losses) Unrealized gains (losses) (.52) (.17) Total increase (decrease) from operations B (.5).9 From net investment income (excluding dividends) (.36) (.14) From dividends From capital gains Return of capital Total distributions B,C (.36) (.14) Net assets, end of period B $ 9.8 $ 1.1 Net asset value (s) D $ 1,97 $ 799 Securities outstanding D 111,963 79,884 Management expense ratio E,P 1.16% 1.17% Management expense ratio before waivers or absorptions E,P 1.18% 1.22% Trading expense ratio G.11%.1% Portfolio turnover rate H 4.95% 46.61% Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Global Real Estate Fund Series P1T5 Periods ended March 31, M Net assets, beginning of period B $ 2. Total revenue.16 Total expenses (excluding distributions) (.8) Realized gains (losses).14 Unrealized gains (losses) (.4) Total increase (decrease) from operations B.18 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.25) Total distributions B,C (.25) Net assets, end of period B $ Net asset value (s) D $ 1 Securities outstanding D 51 Management expense ratio E,N 1.24% Management expense ratio before waivers or absorptions E,N 1.25% Trading expense ratio G.11% Portfolio turnover rate H 4.95% Net asset value per security, end of period $ Fidelity Global Real Estate Fund Series P2 Periods ended March 31, 216 O Net assets, beginning of period B $ 1.1 $ 1. Total revenue.43.2 Total expenses (excluding distributions) (.15) (.6) Realized gains (losses) Unrealized gains (losses) (.46) 1.6 Total increase (decrease) from operations B From net investment income (excluding dividends) (.37) (.14) From dividends From capital gains Return of capital Total distributions B,C (.37) (.14) Net assets, end of period B $ 9.8 $ 1.1 Net asset value (s) D $ 419 $ 52 Securities outstanding D 42,727 5,191 Management expense ratio E,P 1.7% 1.7% Management expense ratio before waivers or absorptions E,P 1.9% 1.11% Trading expense ratio G.11%.1% Portfolio turnover rate H 4.95% 46.61% Net asset value per security, end of period $ $

15 Fidelity Global Real Estate Fund Series P2T5 Periods ended March 31, M Net assets, beginning of period B $ 2. Total revenue.16 Total expenses (excluding distributions) (.6) Realized gains (losses).15 Unrealized gains (losses) (.6) Total increase (decrease) from operations B.19 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.25) Total distributions B,C (.25) Net assets, end of period B $ Net asset value (s) D $ 1,15 Securities outstanding D 55,436 Management expense ratio E,N 1.6% Management expense ratio before waivers or absorptions E,N 1.6% Trading expense ratio G.11% Portfolio turnover rate H 4.95% Net asset value per security, end of period $ Fidelity Global Real Estate Fund Series P3 Periods ended March 31, 216 O Net assets, beginning of period B $ 1.1 $ 1. Total revenue Total expenses (excluding distributions) (.1) (.4) Realized gains (losses) Unrealized gains (losses).45 (.12) Total increase (decrease) from operations B From net investment income (excluding dividends) (.4) (.14) From dividends From capital gains Return of capital Total distributions B,C (.4) (.14) Net assets, end of period B $ 9.81 $ 1.1 Net asset value (s) D $ 248 $ 1 Securities outstanding D 25, Management expense ratio E,P.89%.84% Management expense ratio before waivers or absorptions E,P.89%.84% Trading expense ratio G.11%.1% Portfolio turnover rate H 4.95% 46.61% Net asset value per security, end of period $ $

16 Financial Highlights continued Financial Highlights Footnotes A This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 213 follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 213 follow Canadian Generally Accepted Accounting Principles (Canadian GAAP). The net assets attributable to securityholders per security presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. An explanation of these differences can be found in the notes to financial statements. For reporting periods ending after January 1, per security comparative figures (except for net asset value per security, end of period) have been conformed to the current rounding presentation of two decimal places. As a result, prior period figures in the tables above may not foot due to this rounding change. B C D E F G H Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of securities outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per security. Distributions were paid in cash or reinvested in additional securities of the Fund, or both, and excludes any applicable distributions of management fee reduction to securityholders. Distributions are presented based on management s best estimate of the tax character. This information is provided as at period end of the year shown. Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset values during the period, including the Fund s pro-rata share of estimated expenses incurred in any underlying investment fund, if applicable. Effective November 1, 214, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period, including the Fund s pro-rata share of estimated trading costs incurred in any underlying investment fund, if applicable. The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its portfolio investments. A portfolio turnover rate of 1% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher the Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high portfolio turnover rate and the performance of the Fund. The portfolio turnover rate is calculated based on the lesser of purchases or sales of securities divided by the weighted average market value of the portfolio securities, excluding short-term securities. For periods greater than six months, but less than a full fiscal year, the portfolio turnover rate is annualized. I For the period April 17, 213 (commencement of sale of securities) to March 31, 214. J Included in the management expense ratio above are tax related costs (:.1%, 216: %, 215: %, 214: %, 213: %). K For the period February 5, 216 (commencement of sale of securities) to March 31, 216. L Effective February 9, 216, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. M For the period January 6, (commencement of sale of securities) to March 31,. N Effective January 1,, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. O For the period December 4, 215 (commencement of sale of securities) to March 31, 216. P Effective December 8, 215, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. 14

17 Management and Advisory Fees Fidelity serves as manager and investment advisor of the Fund. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for the general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed 1% of the fees earned by Fidelity during the period. For new Funds or Series the amounts presented may not be indicative of longer term operating periods. Management Fees Dealer Compensation Investment management, administration and other Series A 2.% 46.43% 53.57% Series B 1.85% 54.5% 45.95% Series F.85% 1.% Series F5.85% 1.% Series F8.85% 1.% Series T5 2.% 26.48% 73.52% Series T8 2.% 23.67% 76.33% Series S5 1.85% 54.5% 45.95% Series S8 1.85% 54.5% 45.95% Series E % 54.79% 45.21% Series E1T % 54.79% 45.21% Series E2 1.8% 55.56% 44.44% Series E % 56.34% 43.66% Series E % 57.97% 42.3% Series P1.825% 1.% Series P1T5.825% 1.% Series P2.8% 1.% Series P2T5.8% 1.% Series P3.775% 1.% 15

18 Fidelity Global Real Estate Fund Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. Series A Series F Series B Commencement of Operations is April 17, Series F Series F -1 Commencement of Operations is April 17, Series O

19 Series T5 Series E Series T8 Commencement of Operations is February 5, Series E1T Series S5-1 Commencement of Operations is February 5, Series E Series S Commencement of Operations is February 5, Series E Commencement of Operations is February 5,

20 Fidelity Global Real Estate Fund Past Performance continued Series E4 Series P Commencement of Operations is January 6, Commencement of Operations is December 4, 215 Series P1 Series P2T Commencement of Operations is December 4, 215 Commencement of Operations is January 6, Series P1T5 Series P Commencement of Operations is January 6, Commencement of Operations is December 4, 215 Annual Compound Returns This table shows the Fund s historical annual compound total returns for the periods indicated, compared with a broad-based benchmark, the MSCI World Index, and the Fund s benchmark, the FTSE EPRA/NAREIT Developed Index. 18

21 Past 1 year Past 3 years Past 5 years Past 1 years Since Inception Average Annual Total Returns Fidelity Global Real Estate Fund Series A.3% 1.6% 11.9%.8% n/a Fidelity Global Real Estate Fund Series B.5% 1.8% 12.2% 1.% n/a Fidelity Global Real Estate Fund Series F 1.6% 12.1% 13.5% 2.1% n/a Fidelity Global Real Estate Fund Series F5 1.6% 12.% n/a n/a 1.3% Fidelity Global Real Estate Fund Series F8 1.6% 12.% n/a n/a 1.3% Fidelity Global Real Estate Fund Series O 2.8% 13.5% 14.9% 3.4% n/a Fidelity Global Real Estate Fund Series T5.3% 1.6% 11.9%.7% n/a Fidelity Global Real Estate Fund Series T8.2% 1.5% 11.8%.7% n/a Fidelity Global Real Estate Fund Series S5.4% 1.7% 12.1%.9% n/a Fidelity Global Real Estate Fund Series S8.5% 1.8% 12.1% 1.% n/a Fidelity Global Real Estate Fund Series E1.5% n/a n/a n/a 3.% Fidelity Global Real Estate Fund Series E1T5.5% n/a n/a n/a 3.% Fidelity Global Real Estate Fund Series E2.6% n/a n/a n/a 3.1% Fidelity Global Real Estate Fund Series E3.9% n/a n/a n/a 3.4% Fidelity Global Real Estate Fund Series P1 1.7% n/a n/a n/a 2.3% Fidelity Global Real Estate Fund Series P2 1.8% n/a n/a n/a 2.5% Fidelity Global Real Estate Fund Series P3 2.% n/a n/a n/a 2.7% FTSE EPRA/NAREIT Developed Index 3.4% 12.% 13.7% 2.8% 1.3% MSCI World Index 18.3% 12.4% 15.9% 5.7% 16.5% The period used for the since inception FTSE EPRA/NAREIT Developed Index and MSCI World Index returns are based on Series F5 which has been in existence the longest compared to all Series with less than 1 years of operations. A discussion of the performance of the Fund can be found in the Results of Operation section of this report. The FTSE EPRA/NAREIT Developed Index was developed by the European Public Real Estate Association (EPRA), a common interest group aiming to promote, develop and represent the European public real estate sector, and the North American Association of Real Estate Investment Trusts (NAREIT), the representative voice of the US REIT industry. The index series is designed to reflect the stock performance of companies engaged in specific aspects of the North American, European and Asian Real Estate markets. The MSCI World Index is a market capitalization weighted index composed of companies representative of the market structure of Developed Market countries in North America, Europe and the Asia/Pacific Region. Each Series will have different returns due to differences in management fees and expenses. 19

22 Fidelity Global Real Estate Fund Summary of Investment Portfolio as at March 31, Sector Mix as of March 31, % of Fund s Net Assets Real Estate 96.8 Cash and Cash Equivalents 2.1 Others (Individually Less Than 1%).2 Net Other Assets (Liabilities).9 Geographic Mix as of March 31, % of Fund s Net Assets United States of America 54.5 Japan 1.4 Australia 5.2 Hong Kong 5. United Kingdom 4.5 Germany 3.7 Singapore 3.2 France 2.6 Spain 2.3 Ireland 2. Sweden 2. Austria 1.4 Cash and Cash Equivalents 2.1 Others (Individually Less Than 1%).2 Net Other Assets (Liabilities).9 Top 25 Issuers % of Fund s Net Assets 1. Duke Realty Corp Public Storage Prologis, Inc UDR, Inc Ventas, Inc Sun Hung Kai Properties Ltd Mitsubishi Estate Co. Ltd Boston Properties, Inc Sino Land Ltd LEG Immobilien AG Simon Property Group, Inc Cash and Cash Equivalents Welltower, Inc Mitsui Fudosan Co. Ltd Castellum AB Equity Lifestyle Properties, Inc Digital Realty Trust, Inc DCT Industrial Trust, Inc British Land Co. PLC AvalonBay Communities, Inc Unibail-Rodamco Vonovia SE VEREIT, Inc Stockland Corp. Ltd Hispania Activos Inmobiliarios Sa Total Fund Net Assets $463,598, The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 2

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24 Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada Toronto, Ontario Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Visit us online at or call Fidelity Client Services at Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund or Fidelity U.S. Money Market Fund will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of FMR LLC E FICL-GRE-MRFPA-617