Fidelity Far East Fund

Transcription

1 Fidelity Far East Fund Annual Management Report of Fund Performance March 31, 18

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, 18 Fidelity Far East 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, 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 Far East Fund (Fund) aims to achieve long-term capital growth by investing primarily in equity securities of companies located or operating in Southeast Asia. These countries include Australia, Hong Kong, India, Indonesia, Malaysia, New Zealand, the People s Republic of China, the Philippines, Singapore, South Korea, Taiwan and Thailand. Strategies: When buying and selling securities for the Fund, the portfolio managers examine each company s potential for success in light of its current financial condition, its industry position and economic and market conditions. The portfolio managers consider factors such as growth potential, earnings estimates and quality of management. The Fund may invest in small, medium and large companies. The Fund may hold cash and invest in fixed-income securities. Risk The risks associated with investing in the Fund remain as discussed in the prospectus. Any changes to the Fund over the review period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors who want to gain exposure to Southeast Asian companies and who can handle the volatility of returns generally associated with equity investments. To invest in the Fund, an investor should be able to accept a high level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity Far East Fund, Series B, returned.%, after fees and expenses, for the one-year period ended March 31, 18. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. Global equities, as represented by the MSCI World Index, returned 9.8% (in Canadian dollar terms). Market overview: Asian markets benefited from healthy economic data releases across the region, particularly in China, as well as investor optimism towards global economic growth. Towards the end of the review period volatility increased as risks of faster interest rate hikes in the U.S. and a potential trade-war between the U.S. and China weighed on investor sentiments. Chinese equities gained from a combination of earnings beating market expectations, healthy economic data and a positive outlook towards state-owned enterprise reforms. Hong Kong market also advanced, driven by the prospects for major blue-chip companies improving faster than discounted by the market. Taiwan equities registered positive performance, supported by strength in the information technology sector due to an improved outlook for semiconductors and technology advances in smart phones. Indian equities advanced amid the announcement of a recapitalization plan for state-owned banks, along with an ambitious infrastructure spending program. Australian equity markets lagged amid weakness in banks stocks after a sustained period of outperformance, given concerns over the housing market and household debt. Factors affecting performance: The Fund s benchmark, the MSCI AC (All Country) Far East ex Japan Index, returned 23.9% for the one-year period under review. The Fund outperformed its benchmark, primarily due to its exposure to certain stocks in the information technology sector, with an investment in China-based provider of value-added Internet services Tencent Holdings contributing to relative returns. Robust sales and a strong domestic business buoyed shares of the company. Among other sectors, the Fund s investments in Chinabased pharmaceutical company CSPC Pharmaceutical and Hong Kong-based beer company China Resources Beer Holdings contributed to relative returns. CSPC Pharmaceutical s share prices rose on strong sales growth, favourable government policies and relative immunity to a U.S.-China trade war. China Resources Beer s shares benefited from continued strength in consumer spending across China and the trend towards premium products. In contrast, the Fund s exposure to the real estate and industrials sectors detracted from relative performance. Underperformance in Real Estate was a function of the fund maintaining a significant underweight in China; this positioning reflected conviction that opportunities elsewhere in China had more attractive risk/return profiles. Similarly, performance in industrials was largely driven by a significant underweight and poor relative performance from the fund s only industrial holding; Singapore based defence and engineering company Singapore Tech Engineering. At the end of the period, the Fund did not have any exposure to Singapore Tech Engineering. Among other sectors, investments in Chinese annuity provider China Life Insurance and Indonesian telecom provider Telekomunikasi Indonesia detracted from relative performance. Portfolio changes: During the review period, the Fund s exposure to the financials sector was increased; the portfolio manager believes the sector is currently attractively valued given the strong outperformance of growth over value stocks, will benefit from earnings expectations increasing as global rates rise and are benefiting from increased loan growth and decreasing provisions as economic activity continues to expand. In the financials sector, exposure was increased to China-based China Construction Bank and Singapore-based bank DBS Group, based on attractive valuations and favourable risk profiles. Exposure was also increased to South Korean financial company KB Financial Group, on favourable valuations. 1

4 Fidelity Far East Fund Management Discussion of Fund Performance continued In contrast, the Fund s exposure to the information technology sector was reduced, after the portfolio manager exited positions in Taiwan-based camera lens module supplier Largan Precision and South Korea-based consumer electronics company LG Innotek. The portfolio manager opted to realize profits on these positions, believing their valuations and earnings had peaked in this cycle. Additionally, the manager reduced exposure to South Korean electronics company Samsung Electronics, because of concerns that DRAM pricing would deteriorate as the supply/ demand balance changed unfavorably Recent Developments Portfolio manager Bruce MacDonald is less optimistic on the outlook for earnings growth in Asian markets, with the two biggest challenges being inflation and the potential impact of an escalating trade war. With the Chinese economy past its peak cycle, growth may not be as high, but it is better balanced. His focus on bottom-up stock selection should allow him to find opportunities in the region, especially where income growth and consumption are rising. Mr. MacDonald believes that growth is not evenly distributed across the region, and that stock selection is critical to generate alpha, because this is not an environment where beta will deliver outperformance. He is less positive on Indonesia, where he believes pressures on household debt will significantly reduce consumer spending. At the end of the review period, the Fund had its largest absolute exposure to the information technology sector, followed by the financials sector. The Fund diverged the most from the benchmark sector weightings by having more exposure to the financials sector and less exposure to the real estate sector. In terms of country exposure, the Fund had its largest absolute exposure to China and its lowest absolute exposures to the U.S., U.K. and Macau. Effective December 31, 17, portfolio manager Bruce Macdonald assumed portfolio management responsibilities for Fidelity Far East Fund, after Eileen Dibb stepped down from the Fund. Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader collection 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 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, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $7,242, for the period ended March 31, 18. 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 $969, for the period ended March 31, 18. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity, 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 $ for the period ended March 31, 18. 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. 2

5 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 Far East Fund Series A Periods ended March 31, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (1.65) (1.29) (1.31) (1.25) (1.35) Realized gains (losses) Unrealized gains (losses) (6.13) 5.97 (.5) Total increase (decrease) from operations B (3.25) From net investment income (excluding dividends) (.52) (.36) (.6) (.5) From dividends From capital gains (4.54) (.42) (1.68) (1.92) Return of capital Total distributions B,C (5.6) (.78) (1.74) (1.97) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 23,472 $,589 $ 26,874 $ 37,38 $ 41,788 Securities outstanding D 421, , , ,921 1,113,46 Management expense ratio E,F 2.51% 2.55% 2.56% 2.62% 2.66% Management expense ratio before waivers or absorptions E,F 2.57% 2.59% 2.63% 2.66% 2.66% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $ Fidelity Far East Fund Series B Periods ended March 31, Net assets, beginning of period B $ $ $ $ 37.7 $ Total revenue Total expenses (excluding distributions) (1.55) (1.) (1.21) (1.16) (1.26) Realized gains (losses) Unrealized gains (losses) (6.29) Total increase (decrease) from operations B (3.) From net investment income (excluding dividends) (.54) (.41) (.6) (.5) From dividends From capital gains (4.69) (.47) (1.78) (2.2) Return of capital Total distributions B,C (5.23) (.88) (1.84) (2.8) Net assets, end of period B $ 56.6 $ $ $ $ 37.7 Net asset value (s) D $ 4,413 $ 262,619 $ 277,526 $ 348,268 $ 311,6 Securities outstanding D 5,417,883 5,526,2 6,692,291 7,649,536 8,254,65 Management expense ratio E,F 2.% 2.34% 2.35% 2.39% 2.42% Management expense ratio before waivers or absorptions E,F 2.36% 2.38% 2.41% 2.42% 2.42% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $

6 Financial Highlights continued Fidelity Far East Fund Series F Periods ended March 31, Net assets, beginning of period B $ $ $ $ 39.8 $ Total revenue Total expenses (excluding distributions) (.99) (.76) (.74) (.75) (.87) Realized gains (losses) Unrealized gains (losses) (6.46) Total increase (decrease) from operations B (2.96) From net investment income (excluding dividends) (.64) (.13) (.68) (.8) (.7) From dividends From capital gains (5.55) (.78) (2.32) (2.56) Return of capital Total distributions B,C (6.19) (.13) (1.46) (2.39) (2.63) Net assets, end of period B $ $ $ $ $ 39.8 Net asset value (s) D $ 66,333 $ 43,775 $ 41,422 $ 49,296 $ 36,47 Securities outstanding D 1,134, , ,794 1,47, 933,328 Management expense ratio E,F 1.19% 1.22% 1.22% 1.27% 1.32% Management expense ratio before waivers or absorptions E,F 1.21% 1.25% 1.29% 1.32% 1.32% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $ Fidelity Far East Fund Series F5 Periods ended March 31, I Net assets, beginning of period B $ $ $ $ $. Total revenue Total expenses (excluding distributions) (.41) (.) (.34) (.4) (.61) Realized gains (losses) Unrealized gains (losses).95 (.25) (3.2) Total increase (decrease) from operations B (1.33) From net investment income (excluding dividends) (.27) (.5) (.32) (.4) (.3) From dividends From capital gains (2.38) (.37) (1.) (1.32) Return of capital (1.11) (1.11) (1.5) (.92) (.9) Total distributions B,C (3.76) (1.16) (1.74) (2.6) (2.25) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 1,196 $ $ 1 $ 1 $ 1 Securities outstanding D 48, Management expense ratio E,F 1.13% 1.22% 1.% 1.37% 1.35% Management expense ratio before waivers or absorptions E,F 1.16% 1.26% 1.% 1.37% 1.35% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $

7 Fidelity Far East Fund Series F8 Periods ended March 31, I Net assets, beginning of period B $ $ $ $ $. Total revenue Total expenses (excluding distributions) (.38) (.32) (.33) (.36) (.61) Realized gains (losses) Unrealized gains (losses) (2.84) Total increase (decrease) from operations B (1.25) From net investment income (excluding dividends) (.24) (.5) (.) (.4) (.3) From dividends From capital gains (2.12) (.34) (1.9) (1.) Return of capital (1.44) (1.37) (1.4) (1.47) (1.43) Total distributions B,C (3.8) (1.42) (2.4) (2.59) (2.76) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 53 $ 137 $ 79 $ 9 $ 75 Securities outstanding D 2,442 6,936 4,288 4,152 3,911 Management expense ratio E,F 1.18% 1.23% 1.23% 1.28% 1.32% Management expense ratio before waivers or absorptions E,F 1.% 1.25% 1.31% 1.32% 1.32% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $ Fidelity Far East Fund Series O Periods ended March 31, Net assets, beginning of period B $ 5.55 $ $ $ $ 39.4 Total revenue Total expenses (excluding distributions) (.33) (.21) (.18) (.22) (.36) Realized gains (losses) Unrealized gains (losses) (7.4) Total increase (decrease) from operations B (3.7) From net investment income (excluding dividends) (.74) (.69) (.98) (.) (.8) From dividends From capital gains (6.39) (1.13) (2.88) (3.18) Return of capital Total distributions B,C (7.13) (.69) (2.11) (2.98) (3.27) Net assets, end of period B $ $ 5.55 $ $ $ Net asset value (s) D $ 99,773 $ 54,35 $ 51,985 $ 1,94 $ 9,672 Securities outstanding D 1,67,11 1,68,33 1,185,219 2,279,175 2,27,572 Management expense ratio % % % % % Management expense ratio before waivers or absorptions % % % % % Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $

8 Financial Highlights continued Fidelity Far East Fund Series T5 Periods ended March 31, I Net assets, beginning of period B $ 21.5 $ $ 22.9 $ $. Total revenue Total expenses (excluding distributions) (.72) (.6) (.65) (.68) (.9) Realized gains (losses) Unrealized gains (losses) (3.84) Total increase (decrease) from operations B (2.41) From net investment income (excluding dividends) (.23) (.17) (.3) (.3) From dividends From capital gains (2.2) (.19) (.84) (1.) Return of capital (1.13) (1.12) (1.6) (.94) (.9) Total distributions B,C (3.38) (1.12) (1.42) (1.81) (1.92) Net assets, end of period B $ $ 21.5 $ $ 22.9 $ Net asset value (s) D $ 199 $ 89 $ 58 $ 21 $ 29 Securities outstanding D 8,2 4,167 2, ,461 Management expense ratio E,F 2.47% 2.48% 2.61% 2.79% 2.83% Management expense ratio before waivers or absorptions E,F 2.53% 2.51% 2.73% 2.83% 2.83% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $ Fidelity Far East Fund Series T8 Periods ended March 31, I Net assets, beginning of period B $ $ $ $ $. Total revenue Total expenses (excluding distributions) (.65) (.56) (.63) (.64) (.89) Realized gains (losses) Unrealized gains (losses) (3.9) 3.33 (.) Total increase (decrease) from operations B (1.82) From net investment income (excluding dividends) (.) (.16) (.3) (.3) From dividends From capital gains (1.77) (.18) (.81) (.99) Return of capital (1.48) (1.43) (1.45) (1.5) (1.44) Total distributions B,C (3.45) (1.43) (1.79) (2.34) (2.46) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 97 $ 47 $ 58 $ 67 $ 45 Securities outstanding D 4,547 2,416 3,156 3,118 2,342 Management expense ratio E,F 2.52% 2.6% 2.62% 2.71% 2.78% Management expense ratio before waivers or absorptions E,F 2.59% 2.64% 2.76% 2.79% 2.78% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $

9 Fidelity Far East Fund Series S5 Periods ended March 31, I Net assets, beginning of period B $ $ $ 22.9 $ $. Total revenue Total expenses (excluding distributions) (.69) (.59) (.7) (.62) (.84) Realized gains (losses) Unrealized gains (losses) (1.27) 2. (2.93) Total increase (decrease) from operations B (.5) From net investment income (excluding dividends) (.24) (.19) (.3) (.3) From dividends From capital gains (2.4) (.22) (.89) (1.8) Return of capital (1.12) (1.12) (1.5) (.93) (.9) Total distributions B,C (3.4) (1.12) (1.47) (1.86) (2.) Net assets, end of period B $ $ $ $ 22.9 $ Net asset value (s) D $ 1,381 $ 9 $ 5 $ 6 $ 2 Securities outstanding D 56, ,4 Management expense ratio E,F 2.26% 2.42% 2.43% 2.46% 2.47% Management expense ratio before waivers or absorptions E,F 2.32% 2.46% 2.56% 2.56% 2.47% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $ Fidelity Far East Fund Series S8 Periods ended March 31, I Net assets, beginning of period B $ $ $ $ $. Total revenue Total expenses (excluding distributions) (.58) (.55) (.58) (.58) (.82) Realized gains (losses) Unrealized gains (losses) (11.15) Total increase (decrease) from operations B (8.74) From net investment income (excluding dividends) (.21) (.) (.3) (.3) From dividends From capital gains (1.83) (.23) (.85) (1.6) Return of capital (1.47) (1.42) (1.44) (1.49) (1.44) Total distributions B,C (3.51) (1.42) (1.86) (2.37) (2.52) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 285 $ 71 $ 24 $ 1 $ 1 Securities outstanding D 13,291 3,634 1, Management expense ratio E,F 2.33% 2.41% 2.28% 2.46% 2.47% Management expense ratio before waivers or absorptions E,F 2.4% 2.44% 2.38% 2.54% 2.47% Trading expense ratio G.37%.29%.16%.32%.74% Portfolio turnover rate H 77.24% 51.97% 39.6% 59.21% % Net asset value per security, end of period $ $ $ $ $

10 Financial Highlights continued Fidelity Far East Fund Series E1 Periods ended March 31, J Net assets, beginning of period B $ $.31 $. Total revenue Total expenses (excluding distributions) (.38) (.) (.4) Realized gains (losses) (.5) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.14) From dividends From capital gains (1.18) Return of capital Total distributions B,C (1.32) Net assets, end of period B $ $ $.31 Net asset value (s) D $ 57,571 $ 28,433 $ 12,981 Securities outstanding D 4,114,499 2,398,776 1,259,114 Management expense ratio E,K 2.22% 2.26% 2.28% Management expense ratio before waivers or absorptions E,K 2.28% 2.29% 2.33% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $ $.96 Fidelity Far East Fund Series E2 Periods ended March 31, J Net assets, beginning of period B $ $.32 $. Total revenue Total expenses (excluding distributions) (.37) (.) (.4) Realized gains (losses) (.5) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.14) From dividends From capital gains (1.18) Return of capital Total distributions B,C (1.32) Net assets, end of period B $ $ $.32 Net asset value (s) D $ 8,765 $ 3,353 $ 488 Securities outstanding D 627, ,525 47,277 Management expense ratio E,K 2.19% 2.24% 2.23% Management expense ratio before waivers or absorptions E,K 2.24% 2.27% 2.27% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $ $

11 Fidelity Far East Fund Series E3 Periods ended March 31, J Net assets, beginning of period B $ $.32 $. Total revenue Total expenses (excluding distributions) (.36) (.29) (.3) Realized gains (losses) (.5) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.14) From dividends From capital gains (1.21) Return of capital Total distributions B,C (1.35) Net assets, end of period B $ $ $.32 Net asset value (s) D $ 1,716 $ 563 $ 26 Securities outstanding D 122,444 47,57 2,48 Management expense ratio E,K 2.6% 2.9% 2.17% Management expense ratio before waivers or absorptions E,K 2.12% 2.12% 2.23% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $ $.3143 Fidelity Far East Fund Series E4 Periods ended March 31, J Net assets, beginning of period B $ $.32 $. Total revenue Total expenses (excluding distributions) (.35) (.32) (.3) Realized gains (losses) (.4) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.14) From dividends From capital gains (1.) Return of capital Total distributions B,C (1.34) Net assets, end of period B $ $ $.32 Net asset value (s) D $ 51 $ 39 $ 1 Securities outstanding D 3,614 3,284 Management expense ratio E,K 2.9% 2.% 2.6% Management expense ratio before waivers or absorptions E,K 2.14% 2.14% 2.47% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $ $

12 Financial Highlights continued Fidelity Far East Fund Series P1 Periods ended March 31, L Net assets, beginning of period B $.54 $ 9.13 $. Total revenue Total expenses (excluding distributions) (.) (.16) (.5) Realized gains (losses) Unrealized gains (losses) (.6) Total increase (decrease) from operations B (.36) From net investment income (excluding dividends) (.14) (.3) (.14) From dividends From capital gains (1.19) (.17) Return of capital Total distributions B,C (1.33) (.3) (.31) Net assets, end of period B $ $.54 $ 9.13 Net asset value (s) D $,385 $ 11,192 $ 6,946 Securities outstanding D 1,635,64 1,61, ,127 Management expense ratio E,M 1.12% 1.15% 1.15% Management expense ratio before waivers or absorptions E,M 1.14% 1.17% 1.% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $.5397 $ Fidelity Far East Fund Series P1T5 Periods ended March 31, N Net assets, beginning of period B $ 22.2 $. Total revenue.98.3 Total expenses (excluding distributions) (.37) (.13) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.28) From dividends From capital gains (2.43) Return of capital (1.4) (.25) Total distributions B,C (3.75) (.25) Net assets, end of period B $ $ 22.2 Net asset value (s) D $ 1 $ 1 Securities outstanding D 12,93 51 Management expense ratio E,O 1.5% 1.15% Management expense ratio before waivers or absorptions E,O 1.8% 1.15% Trading expense ratio G.37%.29% Portfolio turnover rate H 77.24% 51.97% Net asset value per security, end of period $ $ 22.2

13 Fidelity Far East Fund Series P2 Periods ended March 31, L Net assets, beginning of period B $.54 $ 9.13 $. Total revenue Total expenses (excluding distributions) (.) (.15) (.5) Realized gains (losses) Unrealized gains (losses) (.64) Total increase (decrease) from operations B (.4) From net investment income (excluding dividends) (.14) (.4) (.14) From dividends From capital gains (1.) (.17) Return of capital Total distributions B,C (1.34) (.4) (.31) Net assets, end of period B $ $.54 $ 9.13 Net asset value (s) D $ 9,953 $ 3,239 $ 1,276 Securities outstanding D 798,819 7,6 139,812 Management expense ratio E,M 1.5% 1.8% 1.7% Management expense ratio before waivers or absorptions E,M 1.8% 1.% 1.12% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $.549 $ Fidelity Far East Fund Series P2T5 Periods ended March 31, P Net assets, beginning of period B $ $. Total revenue.8 Total expenses (excluding distributions) (.35) (.6) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.27) From dividends From capital gains (2.37) Return of capital (1.3) (.25) Total distributions B,C (3.67) (.25) Net assets, end of period B $ 24.3 $ Net asset value (s) D $ 51 $ 81 Securities outstanding D 2,118 3,819 Management expense ratio E,Q.96%.99% Management expense ratio before waivers or absorptions E,Q.99%.99% Trading expense ratio G.37%.29% Portfolio turnover rate H 77.24% 51.97% Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Far East Fund Series P3 Periods ended March 31, L Net assets, beginning of period B $.54 $ 9.13 $. Total revenue Total expenses (excluding distributions) (.18) (.14) (.5) Realized gains (losses) Unrealized gains (losses) (.68) Total increase (decrease) from operations B (.54) From net investment income (excluding dividends) (.14) (.5) (.14) From dividends From capital gains (1.21) (.17) Return of capital Total distributions B,C (1.35) (.5) (.31) Net assets, end of period B $ $.54 $ 9.13 Net asset value (s) D $ 1,379 $ 61 $ 1 Securities outstanding D 1,627 5,757 3 Management expense ratio E,M.99% 1.2%.98% Management expense ratio before waivers or absorptions E,M 1.2% 1.4% 1.4% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $.5454 $ Fidelity Far East Fund Series P3T5 Periods ended March 31, P Net assets, beginning of period B $ $. Total revenue.74.8 Total expenses (excluding distributions) (.36) (.4) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.28) From dividends From capital gains (2.39) Return of capital (1.3) (.25) Total distributions B,C (3.7) (.25) Net assets, end of period B $ 24.4 $ Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio E,Q.92%.8% Management expense ratio before waivers or absorptions E,Q.92%.8% Trading expense ratio G.37%.29% Portfolio turnover rate H 77.24% 51.97% Net asset value per security, end of period $ 24.7 $

15 Fidelity Far East Fund Series P4 Periods ended March 31, L Net assets, beginning of period B $.54 $ 9.13 $. Total revenue Total expenses (excluding distributions) (.18) (.14) (.4) Realized gains (losses) Unrealized gains (losses) (1.25).82 (.65) Total increase (decrease) from operations B (.34) From net investment income (excluding dividends) (.14) (.5) (.14) From dividends From capital gains (1.22) (.17) Return of capital Total distributions B,C (1.36) (.5) (.31) Net assets, end of period B $ $.54 $ 9.13 Net asset value (s) D $ 95 $ 1 $ 8 Securities outstanding D 72, Management expense ratio E,M.92%.96%.97% Management expense ratio before waivers or absorptions E,M.95%.98%.97% Trading expense ratio G.37%.29%.16% Portfolio turnover rate H 77.24% 51.97% 39.6% Net asset value per security, end of period $ $.5397 $

16 Financial Highlights continued Financial Highlights Footnotes A This information is derived from the Fund s audited annual and/or unaudited interim financial statements. The net assets attributable to securityholders per security presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. An explanation of these differences can be found in the notes to financial statements. For reporting periods ending after January 1, 17 per security comparative figures (except for net asset value per security, end of period) have been conformed to the current rounding presentation of two decimal places. As a result, reporting periods ending prior to January 1, 17 may not foot due to this rounding change. B 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. C 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. D This information is provided as at period end of the year shown. E 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. F Effective November 1, 14, 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. G 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. H The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its portfolio investments. A portfolio turnover rate of % 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, 13 (commencement of sale of securities) to March 31, 14. J For the period February 5, 16 (commencement of sale of securities) to March 31, 16. K Effective February 9, 16, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. L For the period December 4, 15 (commencement of sale of securities) to March 31, 16. M Effective December 8, 15, 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. N For the period January 6, 17 (commencement of sale of securities) to March 31, 17. O Effective January, 17, 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. P For the period January 26, 17 (commencement of sale of securities) to March 31, 17. Q Effective January, 17, 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 % 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.% 55.48% 44.52% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% % % Series T8 2.% % % Series S5 1.85% 54.5% 45.95% Series S8 1.85% 54.5% 45.95% Series E % 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%.% Series P1T5.825%.% Series P2.8%.% Series P2T5.8%.% Series P3.775%.% Series P3T5.775%.% Series P4.725%.% 15

18 Fidelity Far East 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. The performance data shown for the period occurring prior to the commencement of operations of a series P or E is that of the corresponding series F or F5 (for series P) or B or S5 (for series E). Series F, F5, B and S5 have higher combined management and administration fees than the applicable series P and E. Had a series P or E existed since the commencement of operations of series F, F5, B or S5, the returns of the applicable series P or E would have been higher. 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 Commencement of Operations is April 17, 13 Series O

19 Series T5 Series E Commencement of Operations is April 17, 13 Series T8 Commencement of Operations is February 5, 16 Series E Commencement of Operations is April 17, 13 Series S5 Commencement of Operations is February 5, 16 Series E Commencement of Operations is April 17, 13 Series S8 Commencement of Operations is February 5, 16 Series E Commencement of Operations is April 17, 13 Commencement of Operations is February 5, 16 17

20 Fidelity Far East Fund Past Performance continued Series P1 Series P Commencement of Operations is December 4, 15 Commencement of Operations is December 4, 15 Series P1T5 Series P3T Commencement of Operations is January 6, 17 Commencement of Operations is January 26, 17 Series P2 Series P Commencement of Operations is December 4, 15 Commencement of Operations is December 4, 15 Series P2T Commencement of Operations is January 26, 17 18

21 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 MSCI AC (All Country) Far East ex Japan Index. Total fund returns are calculated through the last business day of the period on which Canadian markets were open, which was March 29, 18. Average Annual Total Returns Fidelity Far East Fund Series A 29.7% 11.2% 13.4% 8.7% n/a Fidelity Far East Fund Series B.% 11.4% 13.6% 8.9% n/a Fidelity Far East Fund Series F 31.4% 12.7% 14.9%.2% n/a Fidelity Far East Fund Series F5 31.5% 12.7% n/a n/a 15.3% Fidelity Far East Fund Series F8 31.4% 12.6% n/a n/a 15.3% Fidelity Far East Fund Series O 33.% 14.% 16.3% 11.5% n/a Fidelity Far East Fund Series T5 29.8% 11.2% n/a n/a 13.7% Fidelity Far East Fund Series T8 29.7% 11.1% n/a n/a 13.7% Fidelity Far East Fund Series S5.% 11.4% n/a n/a 14.% Fidelity Far East Fund Series S8.% 11.4% n/a n/a 14.% Fidelity Far East Fund Series E1.1% 11.5% 13.7% 9.% n/a Fidelity Far East Fund Series E2.2% 11.5% 13.7% 9.% n/a Fidelity Far East Fund Series E3.3% 11.6% 13.8% 9.% n/a Fidelity Far East Fund Series E4.3% 11.6% 13.8% 9.% n/a Fidelity Far East Fund Series P1 31.6% 12.7% 15.%.2% n/a Fidelity Far East Fund Series P1T5 31.5% 12.7% n/a n/a 15.3% Fidelity Far East Fund Series P2 31.6% 12.8% 15.%.2% n/a Fidelity Far East Fund Series P2T5 31.7% 12.7% n/a n/a 15.3% Fidelity Far East Fund Series P3 31.7% 12.8% 15.%.2% n/a Fidelity Far East Fund Series P3T5 31.8% 12.8% n/a n/a 15.3% Fidelity Far East Fund Series P4 31.8% 12.9% 15.%.2% n/a MSCI AC (All Country) Far East ex Japan Index 23.9%.8% 13.9% 8.6% 14.3% MSCI World Index 9.8% 8.6% 15.1% 8.3% 15.1% A discussion of the performance of the Fund can be found in the Results of Operations section of this report. The MSCI AC (All Country) Far East ex Japan Index is a free float-adjusted, market capitalization- weighted index that is designed to measure the equity market performance of the Far East, excluding Japan. 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. Past 1 year Past 3 years Past 5 years Past years Since Inception 19

22 Fidelity Far East Fund Summary of Investment Portfolio as at March 31, 18 Sector Mix % of Fund s Net Assets as at 3/31/18 % of Fund s Net Assets as at 3/31/17 Information Technology Financials Consumer Staples Materials Health Care Consumer Discretionary Utilities Telecommunication Services Energy 1.5. Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities).3 (.1) Geographic Mix % of Fund s Net Assets as at 3/31/18 % of Fund s Net Assets as at 3/31/17 Cayman Islands China Hong Kong Korea (South) Taiwan Thailand Indonesia Philippines Singapore India Bermuda 2.3. Others (Individually Less Than 1%).3. Cash and Cash Equivalents Net Other Assets (Liabilities).3 (.1) Top Issuers % of Fund s Net Assets 1. Tencent Holdings Ltd Taiwan Semiconductor Manufacturing Co. Ltd Alibaba Group Holding Ltd Industrial & Commercial Bank of China Ltd CSPC Pharmaceutical Group Ltd Samsung Electronics Co. Ltd China Construction Bank Corp AIA Group Ltd Cash and Cash Equivalents 3.7. C.P. ALL PCL China Resources Beer Holdings Co. Ltd DBS Group Holdings Ltd China Life Insurance Co. Ltd KB Financial Group, Inc Sunny Optical Technology Group Co. Ltd Bank of China Ltd Shangri-La Asia Ltd Catcher Technology Co. Ltd Ping An Insurance (Group) Co. of China Ltd HDFC Bank Ltd PT Bank Central Asia Tbk Hang Seng Bank Ltd LG Chemical Ltd PT Telekomunikasi Indonesia Tbk PT Unilever Indonesia Tbk 1.7 Total Fund Net Assets $597,36, 82.6 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, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at

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24 Fidelity Investments Canada ULC 483 Bay Street, Suite Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 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, Fidelity U.S. Money Market Fund or Fidelity U.S. Money Market Investment Trust will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC E FICL-FE-MRFPA-618