Annual Report and Accounts

Transcription

1 Société d investissement à capital variable Established in Luxembourg RCS Luxembourg B Annual Report and Accounts For the year ended 31 January 2015 Audited

2 This audited Annual Report of the Company does not constitute an offer of Shares. Shares are offered on the basis of the information contained in the current Prospectus (and the documents referred to within it) supplemented by the last available audited Annual Report of the Company and any subsequently published unaudited Semi-Annual Report. Copies of the current Prospectus, latest audited Annual and unaudited Semi- Annual Reports and Portfolio Changes for the Company are available free of charge from the registered office of the Company or from any of the companies registered as distributors of the Company, or for investors in Switzerland, from the Representative of the Company in Switzerland.

3 Contents Directors' Report 2 Directors and Supervisory Officers 5 Investment Manager s Report 6.. Schedule of Investments Currency Funds Australian Dollar Currency Fund 7 Euro Currency Fund 8 Sterling Currency Fund 9 US Dollar Currency Fund 10.. Statement of Net Assets 11 Statement of Net Asset Value per Share 12 Statement of Operations and Changes in Net Assets 14 Statement of Share Statistics 16 Notes to the Financial Statements 17 Audit Report 19 Unaudited Supplementary Information 20 Directory 21 1

4 Directors' Report. I Introduction Fidelity (the "Company") is an open-ended investment company established in Luxembourg as a société d'investissement à capital variable ("SICAV"). It has an umbrella structure and its assets are held in a number of different funds ("sub-funds"). Each sub-fund is a separate portfolio of securities managed in accordance with specific investment objectives. Shares of the Company (the "Shares") are authorised for sale in a number of jurisdictions and are listed on the Luxembourg Stock Exchange.. II Financial Statements The Board of Directors of the Company (the "Board") submits its Report and the audited financial statements for the year ended 31 January The audited financial statements are set out on pages 7 to 16 of this Annual Report, with results for the year appearing in the Statement of Operations and Changes in Net Assets on pages 14 and 15. A copy of the Annual Report may be obtained upon request from the offices of the companies registered as distributors or from the Registered Office of the Company. Comparative figures for the previous year can be found in the Annual Report of the Company for the year ended 31 January Alternatively, please go to III Activities during the year During the year, the Company followed the normal activities of an open-ended investment company. The Investment Manager's Report that follows gives an overview of performance. Assets under management as at 31 January 2015 exceeded USD 400 million (31 January 2014: USD 454 million). The Directors may from time to time close sub-funds as well as add further sub-funds with different investment objectives, subject to the approval of the Commission de Surveillance du Secteur Financier ("CSSF"). As at 31 January 2015, the Company consisted of 4 active sub-funds.. IV Board of Directors The Directors of the Company are listed on page 5. There are no service contracts proposed or in existence between any of the Directors and the Company.. V Management of the Company FIL Investment Management (Luxembourg) S.A. ("FIMLUX") as the Management Company is responsible for the investment management, administration and distribution functions of the Company. FIMLUX may delegate part or all of such functions to third parties, subject to overall control and supervision. With the consent of the Company, FIMLUX has delegated the investment management function to FIL Fund Management Limited ("FFML") and the distribution function to FIL Distributors ("FID"). The central administration function is being performed by FIMLUX. As such, FIMLUX processes subscriptions, redemptions, switches and transfers of Shares and enters these transactions in the Company's register of Shareholders. It provides services to the Company in connection with keeping the Company's accounts, determination of the Net Asset Value of Shares in each fund on each Valuation Date and despatch of dividend payments. FIMLUX is formally responsible for the Annual Report and Accounts of the Company for each financial year, which are required under general principles to give a true and fair view of the state of affairs of the Company. In accordance with those same principles, FIMLUX is responsible for: selecting suitable accounting policies and applying them consistently; preparing the Financial Statements on a going concern basis; maintaining proper accounting records which disclose at any time the financial position of the Company; and complying with both the Luxembourg Law of 10 August 1915 on commercial companies and part I of the Luxembourg Law of 17 December 2010, as amended, on undertakings for collective investment. Supervisory Officers FIMLUX has appointed three Supervisory Officers (the "SOs"), namely Mr. Stephan von Bismarck, Mr. Nishith Gandhi, and Mr. Charles Hutchinson. Supervisory Officers Responsibilities The SOs have a duty to ensure that the tasks of the General Distributor, the Investment Manager as well as the administrative functions carried out by the Management Company are performed in compliance with Luxembourg Law, the Company's Articles of Incorporation and the current Prospectus. Amongst other things, the SOs ensure compliance with the investment restrictions of the Company and oversee the implementation of the investment policy of each sub-fund by the appointed Investment Manager. The Management Company and/or the Supervisory Officers shall report to the Board on a quarterly basis and the Supervisory Officers shall inform the Management Company and the Board without delay of any materially adverse matters resulting from the actions of the Investment Manager, the General Distributor and of the Management Company in relation to the administrative functions.. 2

5 Directors' Report VI Role of Investment Manager and Central Administrative Agent FFML provides day-to-day investment management of the Company, under the supervision and subject to the control of FIMLUX and its SOs. FFML is authorised to act on behalf of the Company and to select agents, brokers and dealers through whom to execute transactions and is required to provide FIMLUX and the Board with any reports they may require. FFML may receive investment advice from, and act upon the advice of, any company within the FIL Limited ("FIL") organisation, including affiliate companies of FFML, and may execute, transact and otherwise carry out its functions, duties and obligations with or through any of these Fidelity companies. FFML remains responsible for the proper performance by such companies of those responsibilities. The duties of the Investment Manager include the design, implementation and maintenance of controls and procedures to administer the assets of the Company and to manage its affairs properly. The system extends to operational and compliance controls and risk management. In addition, the Company and FIMLUX have appointed FIL to provide services in relation to the investments of the sub-funds including valuation, statistical, technical, reporting and other assistance.. VII Corporate Governance The Board applies a clear and transparent corporate governance framework for the management of the Company's affairs. 1. The Board has adopted the ALFI Code of Conduct issued in June 2013, which sets out the principles of good governance, and considers that the Company has been in compliance with it in all material respects throughout the financial year ended 31 January There are contractual arrangements in place governing the relationships with FIMLUX, FFML, FID and FIL as well as other third party suppliers to the Company. 3. The Directors take decisions in the interests of the Company and its Shareholders and refrain from taking part in any deliberation or decision which creates conflict between their personal interests and those of the Company and its Shareholders. 4. The Board meets at least twice a year. The Board requests and receives reports from FIMLUX and its SOs, FFML and FID on the various activities including compliance controls and risk management undertaken by the relevant FIL companies. Senior representatives of these companies attend meetings by invitation, thus enabling the Board to question the reports presented to it. 5. As part of the control framework within FIL, all FIL group employees are subject to a Code of Ethics, which, among other things, sets out procedures for personal account dealing in securities. The Board receives regular reports on the Code of Ethics to ensure that any conflicts of interest between personal accounts dealing by FIL group staff and the interests of the Company are properly managed. 6. The Board reviews the Annual Report, the external audit process, corporate governance issues, sub-custodian arrangements and the relationship with the external Auditor, including the recommendation to Shareholders of its appointment and level of fees. The Board meets with the external Auditor in the absence of representatives of FFML at least once a year. 7. The nomination of new Directors is considered by the Board and is subject to the approval of the CSSF and ultimately the approval of Shareholders at the Annual General Meeting. Directors, all of whom are affiliated with FFML or its holding company or its subsidiaries, have waived their fees for the year ended 31 January The Directors are committed to ensuring that Shareholders are kept informed of matters relevant to their investment and that all Shareholders are treated fairly. The maintenance and integrity of information concerning the Company on the FIL website is the responsibility of FIL. FIMLUX is responsible for the accuracy of translations of legal documents which may be available to investors in languages other than English. The Directors approve the English form of the Financial Statements presented to them at Board meetings. The external Auditor, PricewaterhouseCoopers, Société coopérative, being eligible, offers itself for re-election for the year from 1 February 2015 to 31 January VIII Other Information Commissions and Interfunding FFML uses supplemental research in the course of its work for the Company and other clients that are paid for or provided by brokers through whom the Investment Manager executes transactions for the Company and other clients. The Company participates in the Investment Manager's interfunding programme whereby FIL's traders, on occasion, identify situations where an account or sub-fund managed by FIL is buying the same security that another account or sub-fund is selling. If a trader can confirm that it would be in the interests of both accounts to execute a transaction between them rather than in the market then an interfund transaction is executed. Swiss investors Swiss investors are advised that the present sub-funds of the Company have been authorised by the Swiss Financial Market Supervisory Authority for distribution in Switzerland. 3

6 Directors' Report. IX Business of the Annual General Meeting The Board of Directors is proposing the following resolutions be put to the Shareholders at the Annual General Meeting of the Company to be held on 28 May 2015 at noon at 2a rue Albert Borschette, L-1246 Luxembourg: the presentation of the Report of the Board of Directors; the presentation of the Audit Report; the approval of the Statement of Net Assets and Statement of Operations and Changes in Net Assets for the year ended 31 January 2015; the discharge of the Board of Directors; the re-election of the Directors; the re-election of the external Auditor; and consideration of such other business that may properly come before the Annual General Meeting under the Articles of Association. BOARD OF DIRECTORS FIDELITY FUNDS II 2 April

7 Directors and Supervisory Officers Board of Directors of Fidelity Nishith Gandhi Charles Hutchinson Mike Nikou Director Director Director Grand Duchy of Luxembourg Grand Duchy of Luxembourg Singapore FIL (Luxembourg) S.A. Corporate Director Represented by Marc Wathelet Grand Duchy of Luxembourg Board of Directors of the Management Company Nicholas Clay Judy Marlinski Allan Pelvang Director Director Director Grand Duchy of Luxembourg Japan Bermuda Jon Skillman Director Grand Duchy of Luxembourg Marc Wathelet Director Grand Duchy of Luxembourg Supervisory Officers of the Management Company Stephan von Bismarck Nishith Gandhi Charles Hutchinson Supervisory Officer Supervisory Officer Supervisory Officer United Kingdom Grand Duchy of Luxembourg Grand Duchy of Luxembourg 5

8 Investment Manager s Report* Performance Overview The monetary policies of major global central banks continued to diverge over the review period, highlighting the difference in economic momentum between regions. Economic data remained mixed, with the US and UK continuing to show steady recovery, while recessionary pressures in the eurozone lingered. As the year drew to a close, market participants prepared for the European Central Bank (ECB) to renew attempts to stimulate growth by announcing the purchase of government debt as soon as January. In the event, the ECB committed to a quantitative easing (QE) programme worth at least 1.1 trillion euros --- exceeding market expectations and driving core government bond yields lower. In the UK, the Bank of England (BoE) trimmed its growth forecast and validated market expectations that interest rates will stay lower for longer. Developments in Asia also caught the market's attention. The Bank of Japan (BoJ) unexpectedly increased the size of its QE programme in response to concerns that inflation will remain weak after accounting for April's sales tax hike. Meanwhile, China announced interest rate cuts amid rising expectations that it will lower its 2015 growth target to 7%. In Europe, the ECB unveiled a series of measures designed to ease monetary conditions. This included the introduction of negative deposit rates, a 0.2 percentage point reduction in the main refinancing rate to 0.5%, the launch of targeted long-term refinancing operations, an asset-backed securities and covered bond purchase programme and finally the QE programme that was unveiled in January In its final push to shore up inflation and improve credit conditions, the ECB pledged to buy 60 billion euros of mainly government bonds every month through September next year. The acquisitions comprise approximately 45 billion euros of sovereign debt, 5 billion euros of bonds issued by institutions and agencies and 10 billion euros under existing programmes for asset-backed securities and covered bonds. Economic growth in the eurozone remained uneven, with robust activity in Germany on the one hand and meagre growth in France on the other. Peripheral European economies continued to recover, with Spain in particular producing strong growth, while Ireland remained the fastest growing economy in the European Union (EU). Political concerns remained due to fears that anti-austerity party Syriza would win the national elections in Greece, which reignited fears that Greece may exit the EU. In currency markets, the euro weakened against all major currencies. In the US, the Federal Reserve (Fed) began a measured tapering of its bond buying programme at the beginning of the 2014, eventually ending it in October. However, the central bank attempted to prevent a rapid rise in interest rates, maintaining that official targets are likely to remain low for some time after the QE programme ends. It said that it "can be patient in beginning" to tighten the monetary policy. Meanwhile, economic growth accelerated over 2014 after a jittery start to the year due to weather-related issues. GDP grew at an annualised rate of 5% in the third quarter of 2014, the fastest pace in 11 years, driven by a substantial increase in private consumption. The unemployment rate fell to 5.6%, with 252,000 new jobs created in December --- the lowest reading since Forward looking indicators such as consumer confidence also trended upwards during the year, while the Purchasing Managers' Index (PMI) lost upward momentum over the second half, although it remained well above the 50-mark, indicating an expansion. More recent data, however, indicates a slight slowdown in the pace of growth. For instance, the fourth quarter annualised GDP growth estimate came in at 2.6%, trailing market expectations and significantly below the corresponding figure for the third quarter. Inflation levels rose over the first half of 2014, putting pressure on the Fed to raise rates as the economy recovered. However, the second half witnessed a sharp fall in the Consumer Price Index (CPI) due to a combination of falling crude oil prices and a strong dollar, giving the central bank ample headroom to continue its accommodative monetary policy. In currency markets, the US dollar strengthened against all major currencies. The UK economy remained on course to deliver the fastest growth among the Group of Seven nations in 2014, but a slower pace is expected this year. The boost from Payment Protection Insurance compensation and the government's "Help to Buy" housing scheme is fading. Slow growth in the eurozone, a slowdown in the housing market and election-related uncertainty are likely to restrict the UK's growth momentum. Against this backdrop, the BoE is favouring a more reactive approach to its monetary policy based on the evolution of economic data. Towards the end of the period, BoE governor Mark Carney presented weak inflation forecasts, which helped to calm fears of an earlier-than-expected interest rate hike. Carney also stressed that when the BoE eventually decides to raise rates, "it is expected to do so only gradually" and that rates are likely "to remain below average historical levels for some time to come". The official CPI came in below expectations at 0.5% in December (from 1.0% in November), remaining significantly below the BoE's 2% target rate. The 1 month Sterling London Interbank Offered Rate ended slightly higher at 0.50% from 0.48% at the beginning of the review period. In currency markets, sterling strengthened against the euro, but weakened against the US dollar. The Reserve Bank of Australia kept interest rates steady at 2.5% during the review period, with the aim to counter slow growth and weakening consumer demand. As per consensus estimates, the bank is expected to cut lending rates in the first quarter of 2015 to counter rising unemployment and reducing exports. Meanwhile, falling commodity prices and a slowdown in China weighed on GDP growth. Inflation was also recorded at the lowest level for the last two years, primarily due to declining oil prices. Furthermore, a fall in consumer and business confidence impacted business investment, raising concerns over the growth outlook for On a slightly positive note, the Services PMI, which is a leading indicator of activity in the services industry, improved towards the last quarter of Through the review period, the Australian dollar weakened against the US dollar and sterling, but strengthened against the euro. Performance** Sub Fund Name Currency One Year Five Year Since Launch Australian Dollar Currency Fund - A Shares (AUD) AUD 1.50% 13.75% % Euro Currency Fund - A Shares (EUR) EUR 0.02% 0.18% 78.62% Sterling Currency Fund - A Shares (GBP) GBP 0.05% 0.27% % US Dollar Currency Fund - A Shares (USD) USD 0.05% 0.25% 67.19% *The information stated in this report is historical and not necessarily indicative of future performance. **Returns are calculated from published Net Asset Value price to published Net Asset Value price. This calculation does not include any initial charge. In all instances annual fees and expenses are included. The calculation represents the true investment performance of the class of Shares, in the currency of the class. 6

9 Australian Dollar Currency Fund Schedule of Investments as at 31 January 2015 Country Code Ccy Shares or Nominal Year-end % Net Value AUD Assets Securities Admitted to or Dealt on Other Regulated Markets Securities Admitted to or Dealt on Other Regulated Markets Industrials SNCF 6.125% 23/02/2015 EMTN FR AUD 5,000,000 5,009, ,009, Financials Westpac Bank 4.085% FRN 08/07/2015 MTN AU AUD 5,000,000 5,025, HSBC Bank 6.75% 12/03/2015 GB AUD 4,918,000 4,937, Toyota Motor Credit Corp % 10/04/2015 EMTN US AUD 4,303,000 4,316, Kommunalbanken 6.00% 16/03/2015 EMTN NO AUD 3,900,000 3,914, GE Capital Australian Funding 6.00% 15/04/2015 MTN AU AUD 2,370,000 2,384, Bank Nederlandse 6.25% 16/07/2015 EMTN NL AUD 698, , ,287, Money Market Instruments Money Market Instruments Commonwealth Bank CD 3.765% FRN 21/07/2015 AU AUD 5,000,000 5,021, ANZ Banking Group CD 3.848% 08/05/2015 AU AUD 5,000,000 5,012, Credit Suisse London CD 1.39% 02/02/2015 GB AUD 5,000,000 4,999, Natixis CP 2.70% 04/02/2015 SG AUD 5,000,000 4,998, Credit Agricole (Australia) CP 2.74% 04/02/2015 AU AUD 5,000,000 4,998, Agence Centrale CP 2.839% 09/02/2015 FR AUD 5,000,000 4,996, BNP Paribas CD 2.674% 19/02/2015 FR AUD 5,000,000 4,993, DNB Bank CP 2.84% 19/02/2015 NO AUD 5,000,000 4,992, European Investment Bank CP 2.77% 20/02/2015 SU AUD 5,000,000 4,992, BFCM Paris CP 2.90% 23/02/2015 FR AUD 5,000,000 4,991, Credit Agricole (Australia) CP 2.71% 04/03/2015 AU AUD 5,000,000 4,989, Bank Tokyo Mitsubishi Sydney CD 2.718% 18/03/2015 AU AUD 5,000,000 4,982, Sumitomo Mitsui Bank Sydney CD 2.806% 14/04/2015 AU AUD 5,000,000 4,972, SCTH (Singapore) CP 2.85% 15/04/2015 SG AUD 5,000,000 4,971, Toronto CP 2.71% 22/04/2015 CA AUD 5,000,000 4,970, Rabobank Nederland (Aust.) CP 2.80% 05/05/2015 NL AUD 5,000,000 4,964, ,848, Fractions Total Investments (Cost AUD 106,145,614) 106,145, ,145, Bank Deposits Bank Deposits Barclays Bank TD 2.553% 04/02/2015 GB AUD 8,000,000 8,000, Barclays Bank TD 2.47% 02/02/2015 GB AUD 5,673,630 5,673, ,673, Total Investments (including Bank Deposits) 119,819, ,819, Other Assets and Liabilities (4,571,206) (3.96) Net Assets 115,248, ,248, GEOGRAPHICAL SPLIT Country Country Code % Net Assets Australia AU UK GB France FR Singapore SG 8.65 Norway NO 7.73 Netherlands NL 4.92 Supranational SU 4.33 Canada CA 4.31 USA US 3.75 Cash and other net liabilities (3.96) The accompanying notes to the financial statements form an integral part of these financial statements. The percentage of net assets in the schedule of investments and in the geographical split is subject to rounding. 7

10 Euro Currency Fund Schedule of Investments as at 31 January 2015 Country Code Ccy Shares or Nominal Year-end % Net Value EUR Assets Securities Admitted to or Dealt on Other Regulated Markets Securities Admitted to or Dealt on Other Regulated Markets Financials Rabobank 0.199% FRN 17/04/2015 NL EUR 1,500,000 1,500, GE Capital European Funding 2.00% 27/02/2015 EMTN IE EUR 1,190,000 1,191, BNP Paribas 0.328% FRN 03/04/2015 EMTN FR EUR 1,000,000 1,000, Fortis Bank Nederland 4.00% 03/02/2015 EMTN NL EUR 1,000,000 1,000, KfW 0.08% FRN 12/08/2015 EMTN DE EUR 600, , Svenska Handelsbanken 1.50% 06/07/2015 EMTN SE EUR 500, , BNP Paribas 0.326% FRN 03/02/2015 EMTN FR EUR 500, , BNZ International 2.375% 07/05/2015 EMTN NZ EUR 250, , ,547, Money Market Instruments Money Market Instruments Barclays Bank CP 0.058% 05/06/2015 GB EUR 2,500,000 2,500, La Banque Postale CD 0.00% 05/02/2015 FR EUR 1,500,000 1,500, Sumitomo Mitsui Banking CD 0.023% 04/02/2015 BE EUR 1,500,000 1,499, Societe Anonyme de Gestion CP 0.01% 27/02/2015 FR EUR 1,500,000 1,499, Standard Chartered Bank CP 0.01% 07/04/2015 GB EUR 1,500,000 1,499, DekaBank CP 0.03% 07/04/2015 DE EUR 1,500,000 1,499, Nordea Bank CP 0.12% 12/06/2015 SE EUR 1,450,000 1,449, MetLife Short Term Funding CP 0.03% 02/04/2015 US EUR 1,100,000 1,099, Mitsubishi UFJ T&B CP 0.08% 04/03/2015 GB EUR 1,100,000 1,099, HSBC (France) CD 0.15% 16/02/2015 GB EUR 1,000,000 1,000, Mitsubishi UFJ T&B CD 0.015% 02/02/2015 JP EUR 1,000, , Procter & Gamble CP 0.02% 02/03/2015 US EUR 1,000, , Mizuho Bank London CD 0.03% 19/03/2015 GB EUR 1,000, , Svenska Handelsbanken CP 0.065% 06/07/2015 SE EUR 1,000, , L'Oreal CP 0.025% 08/04/2015 FR EUR 800, , GDF Suez CP 0.06% 04/03/2015 FR EUR 800, , EDF CP 0.035% 16/03/2015 FR EUR 750, , L'Oreal CP 0.09% 08/04/2015 FR EUR 650, , EDF CP 0.04% 07/04/2015 FR EUR 600, , Mizuho Bank London CD 0.019% 13/04/2015 GB EUR 500, , Procter & Gamble CP 0.02% 06/05/2015 US EUR 500, , GDF Suez CP 0.03% 06/02/2015 FR EUR 400, , GDF Suez CP 0.015% 20/04/2015 FR EUR 300, , ,948, Fractions Total Investments (Cost EUR 30,495,834) 30,495, ,495, Bank Deposits Bank Deposits Natixis TD 0.136% 06/08/2015 FR EUR 2,000,000 2,000, ,000, Total Investments (including Bank Deposits) 32,495, ,495, Other Assets and Liabilities (392,352) (1.22) Net Assets 32,103, ,103, GEOGRAPHICAL SPLIT Country Country Code % Net Assets France FR UK GB Sweden SE 9.20 USA US 8.10 Netherlands NL 7.79 Germany DE 6.54 Belgium BE 4.67 Ireland IE 3.71 Japan JP 3.11 New Zealand NZ 0.78 Cash and other net liabilities (1.22) The accompanying notes to the financial statements form an integral part of these financial statements. The percentage of net assets in the schedule of investments and in the geographical split is subject to rounding. 8

11 Sterling Currency Fund Schedule of Investments as at 31 January 2015 Country Code Ccy Shares or Nominal Year-end % Net Value GBP Assets Securities Admitted to or Dealt on Other Regulated Markets Securities Admitted to or Dealt on Other Regulated Markets Financials GE Capital UK Funding 5.125% 03/03/2015 EMTN IE GBP 2,800,000 2,810, ,810, Money Market Instruments Money Market Instruments Belgium CP 0.485% 06/02/2015 BE GBP 3,000,000 2,999, BFCM Paris CP 0.485% 27/02/2015 FR GBP 3,000,000 2,998, Standard Chartered Bank CP 0.52% 04/03/2015 GB GBP 3,000,000 2,998, La Banque Postale CD 0.534% 06/03/2015 FR GBP 3,000,000 2,998, FMS Wertmanagement CP 0.50% 23/03/2015 DE GBP 3,000,000 2,997, Credit Suisse London CD 0.531% 31/03/2015 GB GBP 3,000,000 2,997, Dexia Credit Local CP 0.58% 08/04/2015 FR GBP 3,000,000 2,996, Barclays Bank CP 0.543% 05/06/2015 GB GBP 2,500,000 2,500, BNP Paribas CD 0.55% 01/04/2015 FR GBP 2,500,000 2,497, Sumitomo Mitsui Banking CP 0.54% 02/02/2015 BE GBP 2,000,000 1,999, DekaBank CP 0.52% 10/02/2015 DE GBP 2,000,000 1,999, Nordea Bank CP 0.50% 01/04/2015 SE GBP 2,000,000 1,998, DZ Bank CP 0.57% 22/04/2015 DE GBP 2,000,000 1,997, HSBC (France) CD 0.481% 04/03/2015 FR GBP 1,500,000 1,499, Agence Centrale CP 0.51% 17/02/2015 FR GBP 1,500,000 1,499, DNB Bank CP 0.50% 04/03/2015 NO GBP 1,500,000 1,499, Agence Centrale CP 0.59% 20/07/2015 FR GBP 1,500,000 1,495, DZ Bank CP 0.53% 09/02/2015 DE GBP 1,000, , HSBC (France) CD 0.494% 10/02/2015 FR GBP 1,000, , DekaBank (A) CP 0.52% 10/02/2015 DE GBP 500, , Sumitomo Mitsui Banking CP 0.54% 23/02/2015 BE GBP 500, , BNP Paribas CD 0.493% 02/03/2015 FR GBP 500, , Sumitomo Mitsui Banking CP 0.54% 02/03/2015 BE GBP 500, , HSBC France Cd 0.562% 15/04/2015 FR GBP 500, , StadsHypotek CP 0.575% 16/04/2015 SE GBP 500, , Nordea Bank CP 0.62% 15/04/2015 SE GBP 500, , ,473, Fractions Total Investments (Cost GBP 48,283,583) 48,283, ,283, Bank Deposits Bank Deposits Mizuho Bank London TD 0.42% 02/02/2015 JP GBP 5,961,860 5,961, Credit Agricole Corporate TD 0.553% 05/03/2015 FR GBP 4,000,000 4,000, Natixis TD 0.553% 07/09/2015 FR GBP 2,000,000 2,000, Natixis TD 0.443% 15/12/2015 FR GBP 2,000,000 2,000, ,961, Total Investments (including Bank Deposits) 62,245, ,245, Other Assets and Liabilities 165, Net Assets 62,411, ,411, GEOGRAPHICAL SPLIT Country Country Code % Net Assets France FR UK GB Germany DE Belgium BE 9.61 Japan JP 9.55 Sweden SE 4.80 Ireland IE 4.50 Norway NO 2.40 Cash and other net assets 0.28 The accompanying notes to the financial statements form an integral part of these financial statements. The percentage of net assets in the schedule of investments and in the geographical split is subject to rounding. 9

12 US Dollar Currency Fund Schedule of Investments as at 31 January 2015 Country Code Ccy Shares or Nominal Year-end % Net Value USD Assets Securities Admitted to or Dealt on Other Regulated Markets Securities Admitted to or Dealt on Other Regulated Markets Financials Commonwealth Bank Australia 1.95% 16/03/2015 US USD 3,440,000 3,446, ,446, Money Market Instruments Money Market Instruments Belgium CP 0.20% 06/02/2015 BE USD 8,500,000 8,499, Sumitomo Mitsui CD 0.228% 06/02/2015 JP USD 8,500,000 8,499, Sumitomo (Singapore) CP 0.28% 07/04/2015 BE USD 8,500,000 8,495, DekaBank CP 0.28% 08/04/2015 FR USD 8,500,000 8,495, Belgium CP 0.23% 15/04/2015 BE USD 7,500,000 7,496, Barclays Bank CP 0.226% 12/05/2015 GB USD 7,000,000 7,000, SCTH (Singapore) CP 0.23% 05/02/2015 SG USD 7,000,000 6,999, Rabobank Australia CP 0.24% 07/04/2015 AU USD 6,000,000 5,997, Agence Centrale CP 0.315% 03/08/2015 FR USD 6,000,000 5,990, DZ Bank CP 0.22% 04/02/2015 DE USD 5,500,000 5,499, BNP Paribas Sydney CP 0.19% 02/02/2015 AU USD 5,000,000 4,999, Agence Centrale CP 0.20% 02/02/2015 FR USD 5,000,000 4,999, BFCM Paris CP 0.18% 03/02/2015 FR USD 5,000,000 4,999, La Banque Postale CD 0.135% 03/02/2015 FR USD 5,000,000 4,999, SNCF CP 0.20% 04/03/2015 FR USD 5,000,000 4,999, Mitsubishi CP 0.26% 04/03/2015 GB USD 5,000,000 4,998, Bank Nederlandse CP 0.22% 21/04/2015 NL USD 5,000,000 4,997, DZ Bank CP 0.29% 22/04/2015 DE USD 5,000,000 4,996, Mizuho CD 0.281% 28/04/2015 HK USD 5,000,000 4,996, Nordea Bank CP 0.225% 07/04/2015 SE USD 4,500,000 4,498, DekaBank CP 0.22% 05/02/2015 DE USD 4,000,000 3,999, Bank Tokyo Mitsubishi Sydney CD 0.19% 04/02/2015 AU USD 3,500,000 3,499, BFCM PARIS CP 0.225% 04/03/2015 FR USD 3,500,000 3,499, Nordea Bank CP 0.25% 03/06/2015 SE USD 3,500,000 3,497, DZ Bank CP 0.22% 02/02/2015 DE USD 3,000,000 2,999, Mizuho Bank London CD 0.245% 03/03/2015 GB USD 3,000,000 2,999, Allianz CP 0.28% 05/03/2015 DE USD 2,500,000 2,499, Allianz CP 0.26% 24/03/2015 DE USD 500, , ,956, Fractions Total Investments (Cost USD 149,403,682) 149,403, ,403, Bank Deposits Bank Deposits Credit Agricole Corporate TD 0.346% 11/02/2015 FR USD 14,000,000 14,000, Natixis TD 0.266% 11/08/2015 FR USD 8,500,000 8,500, Pohjola Bank TD 0.13% 02/02/2015 FI USD 7,939,408 7,939, Natixis TD 0.161% 11/12/2015 FR USD 5,500,000 5,500, ,939, Total Investments (including Bank Deposits) 185,343, ,343, Other Assets and Liabilities (3,884,198) (2.14) Net Assets 181,458, ,458, GEOGRAPHICAL SPLIT Country Country Code % Net Assets France FR Belgium BE Germany DE UK GB 8.27 Australia AU 7.99 Japan JP 4.68 Sweden SE 4.41 Finland FI 4.38 Singapore SG 3.86 Netherlands NL 2.75 Hong Kong HK 2.75 USA US 1.90 Cash and other net liabilities (2.14) The accompanying notes to the financial statements form an integral part of these financial statements. The percentage of net assets in the schedule of investments and in the geographical split is subject to rounding. 10

13 Statement of Net Assets as at 31 January 2015 Currency Funds: NAME Combined Australian Dollar Currency Fund Euro Currency Fund Sterling Currency Fund US Dollar Currency Fund CURRENCY USD AUD EUR GBP USD ASSETS Investments in securities at market value 338,767, ,145,614 30,495,834 48,283, ,403,682 Bank deposits 69,789,341 13,673,630 2,000,000 13,961,860 35,939,408 Cash at banks and Brokers 75,810-67, Receivables on investments sold 3,693,442-1,499,934-1,999,987 Receivables on fund Shares issued 483, ,842 34,038 55, ,876 Dividends and interest receivable 1,265, , , , ,931 Total Assets 414,074, ,874,959 34,197,827 62,470, ,781,884 LIABILITIES Payables on investments purchased 12,164,948 4,989,483 2,039,951-5,989,465 Payables on fund Shares redeemed 599, ,182 25, ,651 Expenses payable 379, ,256 29,287 59, ,876 Total Liabilities 13,143,358 5,626,921 2,094,345 59,066 6,322,992 NET ASSETS as at ,930, ,248,038 32,103,482 62,411, ,458,892 NET ASSETS as at ,242, ,646,918 38,630,579 62,491, ,450,622 NET ASSETS as at ,358, ,770,998 32,422,148 71,603, ,309,318 COST OF INVESTMENTS 338,767, ,145,614 30,495,834 48,283, ,403,682 The accompanying notes to the financial statements form an integral part of these financial statements. 11

14 Statement of Net Asset Value per Share as at 31 January 2015 Name - Currency Shares outstanding as at : Net Asset Value per share as at : Net Asset Value per share as at : Net Asset Value per share as at : Currency Funds Australian Dollar Currency Fund - AUD - A Shares (AUD) 3,075, Euro Currency Fund - EUR - A Shares (EUR) 1,797, Sterling Currency Fund - GBP - A Shares (GBP) 2,888, US Dollar Currency Fund - USD - A Shares (USD) 5,426, The accompanying notes to the financial statements form an integral part of these financial statements. 12

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16 Statement of Operations and Changes in Net Assets for the year ended 31 January 2015 Currency Funds: NAME Combined Australian Dollar Currency Fund Euro Currency Fund Sterling Currency Fund CURRENCY USD AUD EUR GBP INVESTMENT INCOME Net dividend and interest income 3,257,425 3,054,431 53, ,231 Net income 3,257,425 3,054,431 53, ,231 EXPENSES Investment management fee 3,991,113 1,126, , ,638 Administration expenses 399, ,622 32,661 58,863 Government taxes 38,569 10,878 3,159 5,677 Custody fees 99,180 33,557 13,903 13,899 Other expenses 436, ,959 35,784 64,012 Total expenses 4,964,278 1,406, , ,089 Fees waived (105,835) (30,239) (8,882) (15,276) Expense reimbursement (3,035,681) - (353,267) (445,129) Net expenses 1,822,762 1,376,007 49, ,684 NET INVESTMENT INCOME / (LOSS) 1,434,663 1,678,424 3,444 29,547 Net realised gain / (loss) on securities 5, ,381 RESULTS OF OPERATIONS 1,439,724 1,678,424 4,357 30,928 CAPITAL SHARE TRANSACTIONS Proceeds from fund Shares issued 283,830,272 58,669,533 15,933,632 47,808,570 Payment for fund Shares redeemed (310,424,534) (54,772,055) (22,465,030) (47,921,422) Equalisation 20,180 25,218 (56) 1,776 Increase / (decrease) derived from capital share transactions (26,574,082) 3,922,696 (6,531,454) (111,076) NET INCREASE / (DECREASE) (25,134,358) 5,601,120 (6,527,097) (80,148) NET ASSETS Beginning of year 426,065,092* 109,646,918 38,630,579 62,491,466 End of year 400,930,734** 115,248,038 32,103,482 62,411,318 *The combined net assets total at the beginning of the year has been translated at the foreign exchange rates as of 31 January 2015, recalculated from an original amount of USD 454,242,907 using the foreign exchange rates as of 31 January **For comparison purposes, the combined net assets total as at 31 January 2015, translated in EUR at the foreign exchange rate as of 31 January 2015, is EUR 355,113,933. The accompanying notes to the financial statements form an integral part of these financial statements. 14

17 US Dollar Currency Fund USD 375, ,436 1,863, ,376 18,029 36, ,292 2,309,031 (49,384) (1,967,962) 291,685 83,751 1,955 85, ,467,911 (170,543,350) (1,997) (22,077,436) (21,991,730) 203,450, ,458,892 15

18 Statement of Share Statistics as at 31 January 2015 Name - Currency Shares outstanding - beginning of year Shares Issued Shares Redeemed Net increase / (decrease) in Shares Shares outstanding - end of year Currency Funds Australian Dollar Currency Fund - AUD - A Shares (AUD) 2,969,539 1,587,837 (1,482,296) 105,541 3,075,080 Euro Currency Fund - EUR - A Shares (EUR) 2,163, ,162 (1,257,877) (365,715) 1,797,286 Sterling Currency Fund - GBP - A Shares (GBP) 2,893,362 2,213,496 (2,218,777) (5,281) 2,888,081 US Dollar Currency Fund - USD - A Shares (USD) 6,087,378 4,442,201 (5,102,722) (660,521) 5,426,857 The accompanying notes to the financial statements form an integral part of these financial statements. 16

19 . Fidelity Notes to the Financial Statements 1. General The Company is an open-ended investment company constituted in Bermuda on 1 November 1991 and redomiciled in Luxembourg as a SICAV on 31 July The Company is governed under part I of the Luxembourg Law of 17 December 2010, as amended, relating to undertakings for collective investment, which implements Directive 2009/65/EC ("UCITS IV Directive"). The Company comprises various sub-funds each relating to a separate investment portfolio of securities, cash and other assets. 2. Significant Accounting Policies The financial statements are prepared in accordance with the Luxembourg legal and regulatory requirements relating to undertakings for collective investments. Security Valuation. The valuation of short-dated debt transferable securities and money market instruments is determined by means of the amortised cost method to the extent this does not materially deviate from market value. Under this method, amortised cost is determined by valuing the security at original cost and thereafter accreting (amortising) the discount (premium) to its nominal value at a constant rate until maturity. All other assets are valued in such manner as the Directors of the Company consider appropriate. As at 31 January 2015, all securities in all sub-funds were valued at amortised cost. All holdings owned by the Company are quoted on a regulated market, except where otherwise distinguished in a sub-fund's Schedule of Investments. Fair Value Adjustments Policy. Fair value adjustments may be implemented to protect the interests of the Company's Shareholders against market timing practices. Accordingly if a sub-fund invests in markets that are closed for business at the time the sub-fund is valued, the Directors may, by derogation from the provisions above under security valuation, allow for the securities included in a particular portfolio to be adjusted to reflect more accurately the fair value of the sub-fund's investments at the point of valuation. As at 31 January 2015, no sub-funds were impacted by this fair value adjustment policy. Bank Deposits and Cash at Banks and Brokers. All bank deposits and cash at bank and brokers amounts are carried at face value. Investment Security Transactions. Investment security transactions are accounted for on the date securities are purchased or sold. The computation of the cost of sales of securities is made on the basis of average cost. Foreign Exchange. The Directors determine the designated currency of each sub-fund. Assets and liabilities as at 31 January 2015, have been translated at the prevailing exchange rates on that date. All transactions denominated in foreign currencies during the year are translated into the sub-fund's designated currency at the exchange rate prevailing on the day of transaction. Fund Share Transactions. The issue and redemption price per Share of each sub-fund is the Net Asset Value per Share on the date of trade. Income. Interest income is accounted for on an accrual basis. Zero Coupon Disclosure. Zero coupon bonds and zero coupon money market instruments are disclosed in the Schedule of Investments at a rate reflecting the actual return. Combined Accounts. The combined financial statements have been presented in USD and represent the total financial statements of the different sub-funds. Sub-funds stated in currencies other than USD have been translated at exchange rates ruling at the year-end. 3. Investment Management Fees and Other Transactions with the Investment Manager or its Affiliates HEADER Pursuant to WITH the Investment BACKGROUND Management Agreement dated 1 June 2012, FFML is entitled to a monthly management fee, accrued daily and based on the average total Net Assets of each sub-fund, at an annual rate of up to 1.00%. During the year ended 31 January 2015 the investment management fee was USD 3,991,113. FIL and its affiliates may waive any or all of their fees and limit the maximum level of expenses (with certain exceptions) that the sub-funds would be paying. The fees waived by FIL and its affiliates during the year ended 31 January 2015 were USD 105,835 as disclosed in the Statement of Operations and Changes in Net Assets under "Fees waived". These waivers are voluntary and may be revised or stopped at any time, in which case the Company would bear such fees up to the amount permitted by the Prospectus. FIL and FIMLUX provide valuation, record keeping and administrative services to the Company and earned, before fees waived, USD 399,107 in fees for these services during the year ended 31 January Certain officers and Directors of the Company are also directors, officers or employees of FIL or its affiliates. There were no transactions through connected brokers during the year and hence no commissions were paid to connected brokers. 4. Transaction Fees HEADER WITH BACKGROUND No transaction fees relating to the purchase or sale of securities were charged to any of the sub-funds during the year ended 31 January Directors Fees All Directors are affiliated with FIL and have waived their fees for the year ended 31 January 2015, so no Directors' fees were charged for the year. 6. Taxation The Company is not liable to any Luxembourg taxes on income or on realised or unrealised capital gains, nor to any Luxembourg withholding tax. The sub-funds are subject to an annual subscription tax of 0.01%, calculated and payable quarterly on the net assets of the sub-fund on the last day of each calendar quarter. Capital gains, dividends and interest may be subject to capital gain and withholding taxes or other taxes imposed by the country of origin concerned and such taxes may not be recoverable by the Company or its Shareholders. 17

20 Notes to the Financial Statements - continued 7. Global Risk Exposure The global risk exposure is analysed for each sub-fund, and utilising the commitment approach it has been determined that the total derivative exposure is zero for the year ended 31 January Statement of Changes in Investments A list for each sub-fund, specifying for each investment the total purchases and sales which occurred during the year under review, may be obtained free of charge upon request from the Registered Office of the Company or from any of the companies registered as Distributors of the Company. It is possible to receive information about the full holdings of the sub-funds in which you invest, at any point in time during the year. This is available upon request by contacting your usual Fidelity Representative. 9. Rates of Exchange The USD exchange rates as at 31 January 2015 are noted below: Currency Exchange rate Australian Dollar (AUD) Euro (EUR) Pound Sterling (GBP)

21 Audit Report To the Shareholders of Fidelity We have audited the accompanying financial statements of Fidelity and of each of its sub-funds, which comprise the statement of net assets and the schedule of investments as at 31 January 2015 and the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SICAV for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the "Réviseur d'entreprises agréé" Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the "Commission de Surveillance du Secteur Financier". Those standards require that we comply with ethical requirements and plan and perform the audit 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 judgment of the "Réviseur d'entreprises agréé", 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 "Réviseur d'entreprises agréé" 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 the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Fidelity and of each of its sub-funds as of 31 January 2015, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matters Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Société coopérative Luxembourg, 2 April 2015 Represented by Steven Libby PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU

22 Unaudited Supplementary Information The European Directive on Savings Income 2003/48/EC The EU Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments (hereinafter the "Directive") provides that from 1 July 2005, paying agents established in a member state of the EU or certain dependent or associated territories of member states who make certain savings income payments to individuals resident in another member state or to residual entities within the sense of the Directive (and, depending on the home state of the paying agent, possibly also to individuals and residual entities within the sense of the Directive resident in certain dependent or associated territories of member states) will be obliged, depending on the jurisdiction of establishment of the paying agent, either to report details of the payment and payee to fiscal authorities or to withhold tax from it. The amended law of 21 June 2005 (the "Law") has implemented into Luxembourg law the Directive. Pursuant to the Law and in accordance with the letter of the Directive, the withholding tax applicable in Luxembourg is set at 35% since 1 July Article 9 of the Law provides however that no withholding tax will be withheld if the Beneficiary explicitly authorises the paying agent in writing to proceed to an Exchange of Information or if the Beneficiary provides the paying agent with an exemption certificate drawn up in the name of the Beneficiary by the competent authority in their country of residence. Dividends distributed by the Company will fall into the scope of the Directive if more than 15% of the relevant sub-fund's assets are invested in debt claims (as defined in the Law). Redemption proceeds realised by Shareholders on the disposal of Shares will fall into the scope of the Directive if more than 25% of the relevant subfund's assets are invested in debt claims. The Company falls within the application of the Directive as follows: Sub-fund name Status period Distributions Redemptions Establishing status Australian Dollar Currency Fund 01/06/14-31/05/15 IN IN Asset test Euro Currency Fund 01/06/14-31/05/15 IN IN Asset test Sterling Currency Fund 01/06/14-31/05/15 IN IN Asset test US Dollar Currency Fund 01/06/14-31/05/15 IN IN Asset test IN = In scope of the Law. 20