Fidelity Funds Société d Investissement à Capital Variable 2a rue Albert Borschette, L-1246 B.P. 2174, L-1021 Luxembourg Tél: +352 250 404 1 Fax: +352 26 38 39 38 R.C.S. Luxembourg B 34036 Important changes to the pricing of share classes available in Fidelity Funds SICAV Key Points - We are making some changes to the fees and charges to a number of funds in the Fidelity Funds SICAV range. - In addition, we intend to simplify the pricing Punti principali of our Bond funds within the Fidelity Funds - This letter includes details of the changes being made. If you agree with the changes you do not need to take any action. Dear Shareholder, 12. September 2016 We are writing to notify you of a decision taken by the Board of Directors (the Directors ) of Fidelity Funds to make some changes to the fee structure for a number of our funds. We regularly review our fund pricing to ensure we continue to offer good value for our clients, and have decided to make some changes to the fees and charges to a number of funds in the Fidelity Funds SICAV. We believe that these changes are in the best interest of our shareholders, and will have no effect on the high level of service that you should continue to receive from Fidelity. Details of the changes are outlined below: General changes to funds in the Fidelity Funds SICAV 1. The ongoing charges figure (OCF) for some Y and W share classes will be reduced with effect from 3 rd January 2017 or such later date as may be decided by the Directors (the Effective Date ). This reduction reflects changes to both the annual management fee (AMF) and administrative fees. In some cases, the overall decrease in OCF will be the result of an increase in AMF being more than offset by a larger decrease in other fees such as administrative fees. Not all of the share classes will be impacted in this way and full details of the impacted share classes and their changes are detailed in Appendix 1 of this letter. The absolute maximum management fees and administration fees disclosed in the Prospectus are not changing. 2. We will remove the redemption/sales exit fee (with the exception of the Fidelity Funds - Fixed Term 2018 Fund Fidelity Laufzeit 2018). This will take place as of the Effective Date. 3. We will remove the initial sales charge on I share classes. This will take place as of the Effective Date. 4. We will increase the minimum investment amount for I share classes from USD 500,000 to USD 10,000,000, with effect at the date of this letter.
Additional changes to Bond, Cash and Balanced funds within the Fidelity Funds SICAV 5. We will simplify the pricing of our Y, W, A, E and I share classes so that funds invested in similar categories of bonds levy similar fees (i.e. AMF and OCFs). This will result in a decrease in the OCF of many Y, W, A, E and I share classes of Bond and Balanced funds. We are also changing fees for various Cash funds; but there will be some Bond, Cash and Balanced funds for which fees will not change or will increase. This will take place as of the Effective Date. 6. We will reinstate some of the waived fees in the Fidelity Funds Euro Cash Fund, with effect from 30 th September 2016. 7. We will reduce the initial sales charge for the Bond Funds A share classes from a maximum 5.25 of the net asset value to a maximum of 3.5. This will take place as of the Effective Date. Full details of all changes to the fees and charges are included in the appendices to this letter. The expenses associated with these changes, such as legal, regulatory and mailing charges will be borne by FIL Fund Management Limited as the Investment Manager of Fidelity Funds. The risk profiles of the funds will not alter as a result of these changes. For further information on the types of risk that apply to the funds, please refer to section 1.2. (Risk Factors) in the latest Fidelity Funds Prospectus (the Prospectus ). Next steps If you agree with the proposed changes, there is no need for you to take any action. If you do not agree with these changes, you may switch your investment into any other fund in the Fidelity Funds SICAV that is available to you. Alternatively, you may redeem your investment in the fund free of any redemption charge. If you wish to switch or redeem, you should contact either your financial adviser or your usual Fidelity Service Center. Redemptions or switches can be instructed on any Valuation Date until 13.00 CET (12.00 UK time) or 18.00 CET (17.00 UK time) on the Business Day before the Effective Date. You can find the cut off times in the Appendices. These will normally be dealt with at the next calculated Net Asset Value. Redemption proceeds will be paid directly to your bank account in accordance with the Prospectus and in the share class currency. Please note that the redemption or the switching of your holding may be deemed as a disposal for tax purposes. If you have any concerns about your tax position, we recommend that you seek independent tax advice. The Directors accept full responsibility for the accuracy of the information contained in this letter and confirm, having made all reasonable enquiries that to the best of their knowledge and belief, there are no other facts the omission of which would make any statement herein misleading. Any terms not defined in this letter shall have the same meaning as in the Prospectus. If you have any questions related to these changes, please contact your financial adviser or your usual Fidelity Service Centre. Yours sincerely, Jon Skillman Director CL16061402 *Please note that some distributors or other intermediaries may charge additional fees (such as switching or transaction fees) or expenses at their own discretion. For further information on these please contact your financial advisor or your usual contact at the distributor / intermediary whom you transact with.
Fidelity Funds Société d investissement á Capital Variable 2a rue Albert Borschette, B.P. 2174 L-1021 Luxembourg RCS Luxembourg B 34.036 Tél: +352 250 404 1 Fax: +352 26 38 39 38 [Client name] [Address 1] [Address 2] [Address 3] [Address 4] [Address 5] Important Changes to Fidelity Funds Key Points Fidelity Funds Fidelity Sélection Europe, which invests in European equities, will merge into Fidelity Funds - Fidelity Sélection Internationale, which invests in international equities, on 19 th September 2016. The Applicable Risk Factors are the same for both funds and the Synthetic Risk and Reward Rating Indicator for Fidelity Funds - Fidelity Sélection Internationale is slightly lower than for Fidelity Funds Fidelity Sélection Europe. The Ongoing Charges Figures for both funds are similar. This letter contains details of the merger. If you agree with the merger you do not need to take any further action. Dear Shareholder, 1 August 2016 Merger of Fidelity Funds Fidelity Sélection Europe into Fidelity Funds Fidelity Sélection Internationale We are writing to inform you that the Board of Directors of Fidelity Funds (the Board ) has taken the decision to merge Fidelity Funds - Fidelity Sélection Europe (the Merging Fund ) into Fidelity Funds - Fidelity Sélection Internationale (the Receiving Fund ) with effect from 19 th September 2016, or any later date as may be decided by the Board (the Effective Date ). Our records show that you are a shareholder (the Shareholders or you ) in one or both of these funds. For more information on the impacted share classes, please refer to the ISIN Codes listed in Appendix I. The Board has decided to take this action because the Merging Fund is too small to be managed and administered cost-effectively for its Shareholders. The Merging Fund had approximately 31 million assets under management on 31 st May 2016. Both funds have similar fee structures and the Board anticipates that the proposed merger (the Merger ) will not result in any dilution in the performance of the Receiving Fund. The Board believes that the proposed Merger is in the best interests of Shareholders. The Merger will be conducted in accordance with Article 21.bis of the Articles of Incorporation of Fidelity Funds (the Articles ) and Article 1 (20) a) and Chapter 8 of the Law of 17 th December 2010 on undertakings for collective investment. Shareholders should note that in the week prior to the Effective Date, the intention is that the portfolio of the Merging Fund be rebalanced to match the portfolio of the Receiving Fund and all
transaction costs arising from this rebalancing will be borne by the Merging Fund. From this point, the Merging Fund will follow the investment objective of the Receiving Fund. The exchange ratio for the conversion of the Shares in the Merging Fund into the corresponding Shares in the Receiving Fund will be determined on the basis of the last available Net Asset Value ( NAV ) of the share classes concerned on 16 th September 2016 as of close of business. The number of Shares of the Receiving Fund to be received by Shareholders of the Merging Fund may not be the same as the number of Shares they held in the Merging Fund. Shareholders of the Merging Fund will receive a written confirmation of the number of Shares which they will receive in the Receiving Fund post- Merger. Further details on the Merger are provided below and there is no need for you to take any action if you agree with the proposal. However, Shareholders who do not wish to participate in the Merger may either switch into another fund within Fidelity Funds that is available to them or sell their holdings. Both options are free of charge. Comparison of investment objectives, risk profiles and ongoing charges of the Merging Fund and the Receiving Fund The investment objective of the Merging Fund is as follows: Aims to achieve capital growth primarily through investment in European equities. The fund will suit those investors who are looking for the longer-term rewards of equity investment and are prepared to accept the higher risk associated with this type of investment. The investment objective of the Receiving Fund is as follows: Aims to achieve capital growth primarily through investment in international equities, at the same time adhering to the restriction of not investing more than 10 of its assets in emerging markets. The fund will suit those investors who are looking for the longer-term rewards of equity investment and are prepared to accept the higher risk associated with this type of investment. The risk profiles of the Merging Fund and of the Receiving Fund are described in the table below: Applicable Risk Factors* GENERAL RISKS THAT APPLY TO ALL FUNDS EQUITY RELATED RISK DERIVATIVES RELATED RISKS The Merging Fund The Receiving Fund * For further information on these risk categories, please refer to the section 1.2. Risk Factors in the latest Fidelity Funds Prospectus. Synthetic Risk and Reward Rating Indicator ( SRRI ) The SRRI for the Receiving Fund (5) is slightly lower than for the Merging Fund (6), meaning that shareholders will move to a product with a similar but slightly lower Synthetic Risk and Reward Indicator. Risk and Reward Profile of the Merging Fund Lower risk Higher risk Typically lower rewards Typically higher rewards 1 2 3 4 5 6 7
Risk and Reward Profile of the Receiving Fund Lower risk Higher risk Typically lower rewards Typically higher rewards 1 2 3 4 5 6 7 We enclose the Key Investor Information Document of the Receiving fund in Appendix II. Full Information can also be found in the Fidelity Funds Prospectus which is available at the registered office of Fidelity Funds or at www.fidelityinternational.com. Shareholders are required to read these documents. As at 30 th April 2015, the Ongoing Charges Figure (the OCF ) of the existing Share class in the Merging Fund and the corresponding Share class in the Receiving Fund were as follows: Class of Shares OCF 1 of Fidelity Sélection Europe Fund Share class to be merged to OCF 1 of Fidelity Sélection Internationale Fund A-EUR 2.42 A-EUR 2.40 The Board believes that the Merger will not trigger a dilution in the performance of the Receiving Fund. Costs of the Merger Expenses triggered by the Merger, such as audit and mailing charges will be borne by FIL Fund Management Limited, the Investment Manager of Fidelity Funds. The Merging Fund will bear the market-related transaction costs associated with the disposal of any investments that would not fit with the investment objective of the Receiving Fund. In addition, the proposed Merger will not result in any dilution in the performance of the Receiving Fund. There are no unamortised preliminary expenses outstanding in respect of the Merging Fund. Any additional liabilities attributable to the Merging Fund, accruing after 6.00 pm CET (5.00 pm UK time) on the Effective Date, will be borne by the Receiving Fund. Next Steps If you agree with these changes you do not need to take any action. The Merger will proceed as set out in the Articles and the Prospectus. All issues, switching and redemptions of Shares in the Merging Fund will be suspended from 6.00 pm CET (5.00 pm UK time) on 9 th September 2016. Shareholders of the Merging Fund may deal in their newly issued Shares in the Receiving Fund from the opening of business on 20 th September 2016. Any accrued income on investments in the Merging Fund at the time of the Merger will be included in the final NAV per Share of the Merging Fund and such accrued income will be accounted for on an on-going basis after the Merger in the NAV per Share of the Receiving Fund. If Shareholders of the Merging Fund have not redeemed or switched their Shares by 9 th September 2016, their existing Shares will be automatically converted into Shares of the corresponding Share class in the Receiving Fund. Shareholders of the Merging Fund will receive a number of Shares of the Receiving Fund, the total value of which will correspond to the total value of their existing Shares in the Merging Fund. This will be determined by multiplying the number of Shares of the corresponding class of the Merging Fund by the exchange ratio. If you are not in agreement with these changes, we are offering you a free switch of your existing Shares in the Merging Fund and / or in the Receiving Fund into any other fund within Fidelity Funds available to you, or you may choose to redeem your existing Shares in the Merging Fund and / or in the Receiving Fund free of charge. If you wish to redeem or switch, you should contact either your financial adviser or usual Fidelity Service Centre, quoting reference ESEP0916. Fidelity will not charge any redemption fee or levy any switch fee if the instruction is received in the conditions set forth and in writing quoting the reference number above. 1 The OCF represents the charges taken from the fund over a year and are stated with reference to the NAV per Share. It is calculated at the fund's financial year end and may vary from year to year. For new Share classes, the OCF is estimated until the fund's financial year end. The types of charges included in the OCF are management fees, administration fees, custodian safekeeping and transaction charges, depositary charges, shareholder reporting costs, regulatory registration fees, Directors fees (where applicable) and bank charges. It excludes: performance fees (where applicable); portfolio transaction costs, except in the case of an entry/exit charge paid by the fund when buying or selling units in another collective investment undertaking.
Redemptions or switches free of charge can be instructed on any Valuation Date until 6.00 pm CET (5.00 pm UK time) on 9 th September 2016 starting from the receipt of this letter, and will normally be dealt with at the next calculated NAV. Different procedures may apply if dealing in Shares is made through Distributors. For further information on these please contact your usual contact. Upon request, copies of the audit report prepared by the approved statutory auditor of Fidelity Funds in relation to the Merger may be obtained free of charge at the registered office of Fidelity Funds. The proposed Merger will have no tax implications for the Merging Fund or the Receiving Fund in Luxembourg. Shareholders of the Merging Fund should note that the Merger may be treated for tax purposes as a disposal of Shares depending on personal circumstances and the tax legislation in the various jurisdictions where Shareholders reside. Equally, please note that the redemption or the switching of your holding may be deemed as a disposal for tax purposes. If you have any concerns about your tax position, we recommend that you seek independent tax advice as we are not authorised to provide such a service. Amounts which cannot be distributed due to out-of-date or incorrect Shareholder information will be held in escrow accounts by the Caisse de Consignation in Luxembourg. The Board accepts full responsibility for the accuracy of the content of this letter and confirms, having made all reasonable enquiries, that to the best of its knowledge and belief there are no other facts the omission of which would make any statement herein misleading. Any terms not defined in this letter shall have the same meaning as in the Prospectus. If you have any questions related to this proposal please contact your usual Financial Adviser or your usual Fidelity Service Centre. Yours sincerely, Jon Skillman Director CL16061404
Appendix I - List of ISIN Codes Classes of Shares FF - Fidelity Sélection Europe A-EUR FF - Fidelity Sélection Internationale A-EUR ISIN Codes LU0103194394 LU0103193743
Appendix II - Key Investor Information document of the Share class of the Receiving Fund
Fidelity Funds Société d investissement á Capital Variable 2a rue Albert Borschette, B.P. 2174 L-1021 Luxembourg RCS Luxembourg B 34.036 Tél: +352 250 404 1 Fax: +352 26 38 39 38 [Client name] [Address 1] [Address 2] [Address 3] [Address 4] [Address 5] [Client Residency code description] Fidelity Funds MoneyBuilder Europe Fund will merge into the Fidelity Funds European Growth Fund on 7 th November 2016 Shareholder Choices If you agree with the changes proposed in this letter, you do not need to take any action If you do not agree with the changes, you can either: o Switch your existing Shares in the Fidelity Funds MoneyBuilder Europe Fund and / or in the Fidelity Funds European Growth Fund into any other fund within Fidelity Funds available to you, or, o Redeem your existing Shares in the Fidelity Funds MoneyBuilder Europe Fund and / or in the Fidelity Funds European Growth Fund. Decisions must be effected by 28 th October 2016, and no charge will apply. Key Facts Fidelity Funds MoneyBuilder Europe Fund will merge into the Fidelity Funds European Growth Fund on 7 th November 2016. Both funds invest in European equities. The Applicable Risk Factors and Synthetic Risk and Reward Indicators for both funds are the same. The Ongoing Charges Figure of Fidelity Funds European Growth Fund is greater than that of the Fidelity Funds MoneyBuilder Europe Fund. Dear Shareholder, 12 th September 2016 I am writing to inform you that the Board of Directors of Fidelity Funds (the Board ) has taken the decision to merge Fidelity Funds - MoneyBuilder Europe Fund (the Merging Fund ) into Fidelity Funds European Growth Fund (the Receiving Fund ) with effect from 7 th November 2016, or any later date as may be decided by the Board (the Effective Date ). Our records show that you are a shareholder (the Shareholders or you ) in one or both of these funds. For more information on the impacted share classes, please refer to the ISIN Codes listed in Appendix I. The Board believes that the proposed Merger is in the best interests of Shareholders, as the Merging Fund is too small to be managed and administered cost-effectively for its Shareholders. The Merging Fund had approximately 9 million assets under management on 30 th June 2016. Both funds have similar fee structures and the Board anticipates that the proposed merger (the Merger ) will not result in any dilution in the performance of the Receiving Fund.
The Merger will be conducted in accordance with Article 21.bis of the Articles of Incorporation of Fidelity Funds (the Articles ) and Article 1 (20) a) and Chapter 8 of the Law of 17 th December 2010 on undertakings for collective investment. Any terms not defined in this letter shall have the same meaning as in the Prospectus. Comparison of investment objectives, risk profiles and ongoing charges of the Merging Fund and the Receiving Fund The investment objective of the Merging Fund is as follows: The fund s investment objective is to achieve long-term capital growth primarily from a portfolio made up of shares of European companies. The portfolio is likely to have a bias towards medium-sized and small companies. The investment objective of the Receiving Fund is as follows: Invests principally in equity securities quoted on European stock exchanges. The risk profiles of the Merging Fund and of the Receiving Fund are described in the table below: Applicable Risk Factors* GENERAL RISKS THAT APPLY TO ALL FUNDS EQUITY RELATED RISKS DERIVATIVES RELATED RISKS The Merging Fund The Receiving Fund * For further information on these risk categories, please refer to the section 1.2. Risk Factors in the latest Fidelity Funds Prospectus. Synthetic Risk and Reward Indicator ( SRRI ) The SRRI for both funds is 6 meaning that shareholders will move to a product with the same Synthetic Risk and Reward Indicator. Risk and Reward Profile of the Merging Fund Risk and Reward Profile of the Receiving Fund Ongoing Charges Figure ( OCF ) As at 30 th April 2016, the OCF of the existing Share class in the Merging Fund and the corresponding Share class in the Receiving Fund were as follows: Class of Shares OCF 1 of the Merging Fund Share class to be merged to OCF 1 of the Receiving Fund 1 The OCF represents the charges taken from the fund over a year and are stated with reference to the NAV per Share. It is calculated at the fund's financial year end and may vary from year to year. For new share classes, the OCF is estimated until the fund's financial year end. The types of charges included in the OCF are management fees, administration fees, custodian safekeeping, transaction charges, depositary charges, shareholder reporting costs, regulatory registration fees, Directors fees (where applicable) and bank charges. It excludes: performance fees (where applicable); portfolio transaction costs, except in the case of an entry/exit charge paid by the fund when buying or selling units in another collective investment undertaking
A-EUR 1.70 A-EUR 1.89 The Board believes that the Merger will not trigger a dilution in the performance of the Receiving Fund. We enclose the Key Investor Information Document of the Receiving Fund in Appendix II. Full Information can also be found in the Fidelity Funds Prospectus which is available at the registered office of Fidelity Funds or at www.fidelityinternational.com. Shareholders are required to read these documents. Shareholder Choices 1. If you agree with these changes you do not need to take any action. The Merger will proceed as set out in the Articles and the Prospectus. All issues, switching and redemptions of Shares in the Merging Fund will be suspended from 6.00 pm CET (5.00 pm UK time) on 28 th October 2016. 2. If you are not in agreement with these changes, we are offering you a free switch of your existing Shares in the Merging Fund and / or in the Receiving Fund into any other fund within Fidelity Funds available to you, or, 3. You may choose to redeem your existing Shares in the Merging Fund and / or in the Receiving Fund free of charge. If you wish to redeem or switch, you should contact either your financial adviser or usual Fidelity Service Centre, quoting reference YIAGE1116. Fidelity will not charge any redemption fee or levy any switch fee if the instruction is received in the conditions set forth and in writing quoting the reference number above. Redemptions or switches free of charge can be instructed on any Valuation Date until 6.00 pm CET (5.00 pm UK time) on 28 th October 2016 starting from the receipt of this letter, and will normally be dealt with at the next calculated Net Asset Value ( NAV ). Different procedures may apply if dealing in Shares is made through Distributors. For further information on these please contact your usual contact. If you have not redeemed or switched your Shares by 28 th October 2016, your existing Shares will be automatically converted into Shares of the corresponding Share class in the Receiving Fund. Shareholders of the Merging Fund will receive a number of Shares of the Receiving Fund, the total value of which will correspond to the total value of their existing Shares in the Merging Fund. This will be determined by multiplying the number of Shares of the corresponding class of the Merging Fund by the exchange ratio. The exchange ratio for the conversion of the Shares in the Merging Fund into the corresponding Shares in the Receiving Fund will be determined on the basis of the last available NAV of the Share classes concerned on 4 th November 2016 as of close of business. The number of Shares of the Receiving Fund to be received by Shareholders of the Merging Fund may not be the same as the number of Shares they held in the Merging Fund. Shareholders of the Merging Fund will receive a written confirmation of the number of Shares which they will receive in the Receiving Fund post- Merger. Shareholders of the Merging Fund may deal in their newly issued Shares in the Receiving Fund from the opening of business on 8 th November 2016. Any accrued income on investments in the Merging Fund at the time of the Merger will be included in the final NAV per Share of the Merging Fund, and such accrued income will be accounted for on an on-going basis after the Merger in the NAV per Share of the Receiving Fund. The proposed Merger will have no tax implications for the Merging Fund or the Receiving Fund in Luxembourg. Shareholders of the Merging Fund should note that the Merger may be treated for tax purposes as a disposal of Shares depending on personal circumstances and the tax legislation in the various jurisdictions where Shareholders reside. Equally, please note that the redemption or the switching of your holding may be deemed as a disposal for tax purposes. If you have any concerns about your tax position, we recommend that you seek independent tax advice as we are not authorised to provide such a service. Expenses triggered by the Merger, such as audit and mailing charges will be borne by FIL Fund Management Limited, the Investment Manager of Fidelity Funds. The Merging Fund will bear the market-related transaction costs associated with the disposal of any investments that would not fit with the investment objective of the Receiving Fund. There are no unamortised preliminary expenses outstanding in respect of the Merging Fund. Any additional liabilities attributable to the Merging Fund, accruing after 6.00 pm CET (5.00pm UK time) on the Effective Date, will be borne by the Receiving Fund. Shareholders should note that in the week prior to the Effective Date, the intention is that the portfolio of the Merging Fund be rebalanced to match the portfolio of the Receiving Fund and all transaction costs arising from this rebalancing will be borne by the Merging Fund. From this point, the Merging Fund will follow the investment objective of the Receiving Fund.
Amounts which cannot be distributed due to out-of-date or incorrect Shareholder information will be held in escrow accounts by the Caisse de Consignation in Luxembourg. Upon request, copies of the audit report prepared by the approved statutory auditor of Fidelity Funds in relation to the Merger may be obtained free of charge at the registered office of Fidelity Funds. The Board accepts full responsibility for the accuracy of the content of this letter and confirms, having made all reasonable enquiries, that to the best of its knowledge and belief there are no other facts the omission of which would make any statement herein misleading. If you have any questions related to this proposal please contact your usual Financial Adviser or your usual Fidelity Service Centre. Yours sincerely, Jon Skillman Director CL16051403 Fidelity Funds is an open-ended Luxembourg based investment company. We recommend that you obtain detailed information before taking any investment decision. Investments should be made on the basis of the current prospectus and key investor information document, which are available along with the current annual and semi-annual reports free of charge from our distributors, from our European Service Centre in Luxembourg and from our legal representative in Switzerland BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich. Paying agent for Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich.
Appendix I - List of ISIN Codes Classes of Shares FF MoneyBuilder Europe Fund A-EUR FF European Growth Fund A-EUR FF European Growth Fund SR-ACC-EUR FF European Growth Fund Y-EUR FF European Growth Fund A-SGD FF European Growth Fund A-ACC-USD (hedged) FF European Growth Fund SR-ACC-SGD FF European Growth Fund Y-ACC-EUR FF European Growth Fund W-ACC-GBP FF European Growth Fund C-EUR FF European Growth Fund E-ACC-EUR FF European Growth Fund A-ACC-EUR ISIN Codes LU0215157958 LU0048578792 LU1235258925 LU0936577302 LU0550127509 LU0997586606 LU1235259576 LU0346388373 LU1235296263 LU0324710721 LU0115764192 LU0296857971
Appendix II - Key Investor Information Document of the A-EUR Share class of the Receiving Fund
Fidelity Funds Société d investissement á Capital Variable 2a rue Albert Borschette, B.P. 2174 L-1021 Luxembourg RCS Luxembourg B 34.036 Tél: +352 250 404 1 Fax: +352 26 38 39 38 [Client name] [Address 1] [Address 2] [Address 3] [Address 4] [Address 5] [Client Residency code description] Fidelity Funds MoneyBuilder European Bond Fund will merge into the Fidelity Funds Euro Bond Fund on 7 th November 2016 Shareholder Choices If you agree with the changes proposed in this letter, you do not need to take any action If you do not agree with the changes, you can either: o Switch your existing Shares in the Fidelity Funds MoneyBuilder European Bond Fund and / or in the Fidelity Funds Euro Bond Fund into any other fund within Fidelity Funds available to you, or, o Redeem your existing Shares in the Fidelity Funds MoneyBuilder European Bond Fund and / or in the Fidelity Funds Euro Bond Fund. Decisions must be effected by 28 th October 2016, and no charge will apply. Key Facts Fidelity Funds MoneyBuilder European Bond Fund will merge into the Fidelity Funds Euro Bond Fund on 7 th November 2016. Both funds invest primarily in European bonds. The Applicable Risk Factors and Synthetic Risk and Reward Indicators for both funds are the same. The Ongoing Charges Figures for both funds are similar. Dear Shareholder, 12 th September 2016 I am writing to inform you that the Board of Directors of Fidelity Funds (the Board ) has taken the decision to merge Fidelity Funds - MoneyBuilder European Bond Fund (the Merging Fund ) into Fidelity Funds Euro Bond Fund (the Receiving Fund ) with effect from 7 th November 2016, or any later date as may be decided by the Board (the Effective Date ). Our records show that you are a shareholder (the Shareholders or you ) in one or both of these funds. For more information on the impacted share classes, please refer to the ISIN Codes listed in Appendix I. The Board believes that the proposed Merger is in the best interests of Shareholders, as the Merging Fund is too small to be managed and administered cost-effectively for its Shareholders. The Merging Fund had approximately 10 million assets under management on 30 th June 2016. Both funds have similar fee structures and the Board anticipates that the proposed merger (the Merger ) will not result in any dilution in the performance of the Receiving Fund.
The Merger will be conducted in accordance with Article 21.bis of the Articles of Incorporation of Fidelity Funds (the Articles ) and Article 1 (20) a) and Chapter 8 of the Law of 17 th December 2010 on undertakings for collective investment. Any terms not defined in this letter shall have the same meaning as in the Prospectus. Comparison of investment objectives, risk profiles and ongoing charges of the Merging Fund and the Receiving Fund The investment objective of the Merging Fund is as follows: The fund aims to provide an income with the possibility of capital growth primarily in investments in fixed income securities denominated in Euro. The investment objective of the Receiving Fund is as follows: Invests primarily in bonds denominated in Euro. The risk profiles of the Merging Fund and of the Receiving Fund are described in the table below: Applicable Risk Factors* GENERAL RISKS THAT APPLY TO ALL FUNDS FIXED INCOME RELATED RISKS DERIVATIVES RELATED RISKS The Merging Fund The Receiving Fund * For further information on these risk categories, please refer to the section 1.2. Risk Factors in the latest Fidelity Funds Prospectus. Synthetic Risk and Reward Indicator ( SRRI ) The SRRI for both funds is 3 meaning that shareholders will move to a product with the same Synthetic Risk and Reward Indicator. Risk and Reward Profile of the Merging Fund Risk and Reward Profile of the Receiving Fund 1 2 3 4 5 6 7 1 2 3 4 5 6 7 Ongoing Charges Figure ( OCF ) As at 30 th April 2016, the OCF of the existing Share class in the Merging Fund and the corresponding Share class in the Receiving Fund were as follows: Class of Shares OCF 1 of the Merging Share class to be merged OCF 1 of the Fund to Receiving Fund A-EUR 1.07 A-EUR 1.05 The Board believes that the Merger will not trigger a dilution in the performance of the Receiving Fund. 1 The OCF represents the charges taken from the fund over a year and are stated with reference to the NAV per Share. It is calculated at the fund's financial year end and may vary from year to year. For new share classes, the OCF is estimated until the fund's financial year end. The types of charges included in the OCF are management fees, administration fees, custodian safekeeping, transaction charges, depositary charges, shareholder reporting costs, regulatory registration fees, Directors fees (where applicable) and bank charges. It excludes: performance fees (where applicable); portfolio transaction costs, except in the case of an entry/exit charge paid by the fund when buying or selling units in another collective investment undertaking
We enclose the Key Investor Information Document of the Receiving Fund in Appendix II. Full Information can also be found in the Fidelity Funds Prospectus which is available at the registered office of Fidelity Funds or at www.fidelityinternational.com. Shareholders are required to read these documents. Shareholder Choices 1. If you agree with these changes you do not need to take any action. The Merger will proceed as set out in the Articles and the Prospectus. All issues, switching and redemptions of Shares in the Merging Fund will be suspended from 6.00 pm CET (5.00 pm UK time) on 28 th October 2016. 2. If you are not in agreement with these changes, we are offering you a free switch of your existing Shares in the Merging Fund and / or in the Receiving Fund into any other fund within Fidelity Funds available to you, or, 3. You may choose to redeem your existing Shares in the Merging Fund and / or in the Receiving Fund free of charge. If you wish to redeem or switch, you should contact either your financial adviser or usual Fidelity Service Centre, quoting reference MBED1116. Fidelity will not charge any redemption fee or levy any switch fee if the instruction is received in the conditions set forth and in writing quoting the reference number above. Redemptions or switches free of charge can be instructed on any Valuation Date until 6.00 pm CET (5.00 pm UK time) on 28 th October 2016 starting from the receipt of this letter, and will normally be dealt with at the next calculated Net Asset Value ( NAV ). Different procedures may apply if dealing in Shares is made through Distributors. For further information on these please contact your usual contact. If you have not redeemed or switched your Shares by 28 th October 2016, your existing Shares will be automatically converted into Shares of the corresponding Share class in the Receiving Fund. Shareholders of the Merging Fund will receive a number of Shares of the Receiving Fund, the total value of which will correspond to the total value of their existing Shares in the Merging Fund. This will be determined by multiplying the number of Shares of the corresponding class of the Merging Fund by the exchange ratio. The exchange ratio for the conversion of the Shares in the Merging Fund into the corresponding Shares in the Receiving Fund will be determined on the basis of the last available NAV of the Share classes concerned on 4 th November 2016 as of close of business. The number of Shares of the Receiving Fund to be received by Shareholders of the Merging Fund may not be the same as the number of Shares they held in the Merging Fund. Shareholders of the Merging Fund will receive a written confirmation of the number of Shares which they will receive in the Receiving Fund post- Merger. Shareholders of the Merging Fund may deal in their newly issued Shares in the Receiving Fund from the opening of business on 8 th November 2016. Any accrued income on investments in the Merging Fund at the time of the Merger will be included in the final NAV per Share of the Merging Fund, and such accrued income will be accounted for on an on-going basis after the Merger in the NAV per Share of the Receiving Fund. The proposed Merger will have no tax implications for the Merging Fund or the Receiving Fund in Luxembourg. Shareholders of the Merging Fund should note that the Merger may be treated for tax purposes as a disposal of Shares depending on personal circumstances and the tax legislation in the various jurisdictions where Shareholders reside. Equally, please note that the redemption or the switching of your holding may be deemed as a disposal for tax purposes. If you have any concerns about your tax position, we recommend that you seek independent tax advice as we are not authorised to provide such a service. Expenses triggered by the Merger, such as audit and mailing charges will be borne by FIL Fund Management Limited, the Investment Manager of Fidelity Funds. The Merging Fund will bear the market-related transaction costs associated with the disposal of any investments that would not fit with the investment objective of the Receiving Fund. There are no unamortised preliminary expenses outstanding in respect of the Merging Fund. Any additional liabilities attributable to the Merging Fund, accruing after 6.00 pm CET (5.00pm UK time) on the Effective Date, will be borne by the Receiving Fund. Shareholders should note that in the week prior to the Effective Date, the intention is that the portfolio of the Merging Fund be rebalanced to match the portfolio of the Receiving Fund and all transaction costs arising from this rebalancing will be borne by the Merging Fund. From this point, the Merging Fund will follow the investment objective of the Receiving Fund. Amounts which cannot be distributed due to out-of-date or incorrect Shareholder information will be held in escrow accounts by the Caisse de Consignation in Luxembourg.
Upon request, copies of the audit report prepared by the approved statutory auditor of Fidelity Funds in relation to the Merger may be obtained free of charge at the registered office of Fidelity Funds. The Board accepts full responsibility for the accuracy of the content of this letter and confirms, having made all reasonable enquiries, that to the best of its knowledge and belief there are no other facts the omission of which would make any statement herein misleading. If you have any questions related to this proposal please contact your usual Financial Adviser or your usual Fidelity Service Centre. Yours sincerely, Jon Skillman Director CL16051404 Fidelity Funds is an open-ended Luxembourg based investment company. We recommend that you obtain detailed information before taking any investment decision. Investments should be made on the basis of the current prospectus and key investor information document, which are available along with the current annual and semi-annual reports free of charge from our distributors, from our European Service Centre in Luxembourg and from our legal representative in Switzerland BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich. Paying agent for Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich.
Appendix I - List of ISIN Codes Classes of Shares FF MoneyBuilder European Bond Fund A-EUR FF Euro Bond Fund A-EUR FF Euro Bond Fund A-ACC-USD (hedged) FF Euro Bond Fund Y-ACC-USD FF Euro Bond Fund Y-ACC-USD (hedged) FF Euro Bond Fund Y-EUR FF Euro Bond Fund I-ACC-EUR FF Euro Bond Fund A-MDIST-EUR FF Euro Bond Fund Y-ACC-EUR FF Euro Bond Fund E-ACC-EUR FF Euro Bond Fund A-ACC-EUR FF Euro Bond Fund A-ACC-HUF (hedged) ISIN Codes LU0215156984 LU0048579097 LU1046421522 LU1295424383 LU1261431172 LU0949332349 LU1322386183 LU0168050333 LU0346390197 LU0238209513 LU0251130638 LU1295422171
Appendix II - Key Investor Information Document of the A-EUR Share class of the Receiving Fund
Fidelity Funds Société d investissement á Capital Variable 2a rue Albert Borschette, B.P. 2174 L-1021 Luxembourg RCS Luxembourg B 34.036 Tél: +352 250 404 1 Fax: +352 26 38 39 38 [Client name] [Address 1] [Address 2] [Address 3] [Address 4] [Address 5] [Client Residency code description] Fidelity Funds MoneyBuilder Global Fund will merge into the Fidelity Funds International Fund on 7 th November 2016 Shareholder Choices If you agree with the changes proposed in this letter, you do not need to take any action If you do not agree with the changes, you can either: o Switch your existing Shares in the Fidelity Funds MoneyBuilder Global Fund and / or in the Fidelity Funds International Fund into any other fund within Fidelity Funds available to you, or, o Redeem your existing Shares in the Fidelity Funds MoneyBuilder Global Fund and / or in the Fidelity Funds International Fund. Decisions must be effected by 28 th October 2016, and no charge will apply. Key Facts Fidelity Funds MoneyBuilder Global Fund will merge into the Fidelity Funds International Fund on 7 th November 2016. Both funds invest in global equities. The Applicable Risk Factors and Synthetic Risk and Reward Indicators for both funds are the same. The Ongoing Charges Figure of Fidelity Funds International Fund is greater than that of the Fidelity Funds MoneyBuilder Global Fund. Dear Shareholder, 12 th September 2016 I am writing to inform you that the Board of Directors of Fidelity Funds (the Board ) has taken the decision to merge Fidelity Funds - MoneyBuilder Global Fund (the Merging Fund ) into Fidelity Funds International Fund (the Receiving Fund ) with effect from 7 th November 2016, or any later date as may be decided by the Board (the Effective Date ). Our records show that you are a shareholder (the Shareholders or you ) in one or both of these funds. For more information on the impacted share classes, please refer to the ISIN Codes listed in Appendix I. The Board believes that the proposed Merger is in the best interests of Shareholders, as the Merging Fund is too small to be managed and administered cost-effectively for its Shareholders. The Merging Fund had approximately 20 million assets under management on 30 th June 2016. Both funds have similar fee structures and the Board anticipates that the proposed merger (the Merger ) will not result in any dilution in the performance of the Receiving Fund.
The Merger will be conducted in accordance with Article 21.bis of the Articles of Incorporation of Fidelity Funds (the Articles ) and Article 1 (20) a) and Chapter 8 of the Law of 17 th December 2010 on undertakings for collective investment. Any terms not defined in this letter shall have the same meaning as in the Prospectus. Comparison of investment objectives, risk profiles and ongoing charges of the Merging Fund and the Receiving Fund The investment objective of the Merging Fund is as follows: The fund s investment objective is to achieve long-term capital growth primarily from a portfolio made up of shares of worldwide companies. The portfolio is likely to have a bias towards medium-sized and small companies. The investment objective of the Receiving Fund is as follows: Invests principally in equity securities in markets throughout the world including major markets and smaller emerging markets. The risk profiles of the Merging Fund and of the Receiving Fund are described in the table below: Applicable Risk Factors* GENERAL RISKS THAT APPLY TO ALL FUNDS EQUITY RELATED RISKS SPECIFIC INSTRUMENT RELATED RISKS The Merging Fund The Receiving Fund DERIVATIVES RELATED RISKS * For further information on these risk categories, please refer to the section 1.2. Risk Factors in the latest Fidelity Funds Prospectus. Synthetic Risk and Reward Indicator ( SRRI ) The SRRI for both funds is 6 meaning that shareholders will move to a product with the same Synthetic Risk and Reward Indicator. Risk and Reward Profile of the Merging Fund Risk and Reward Profile of the Receiving Fund Ongoing Charges Figure ( OCF ) As at 30 th April 2016, the OCF of the existing Share class in the Merging Fund and the corresponding Share class in the Receiving Fund were as follows: Class of Shares OCF 1 of the Merging Fund Share class to be merged to OCF 1 of the Receiving Fund 1 The OCF represents the charges taken from the fund over a year and are stated with reference to the NAV per Share. It is calculated at the fund's financial year end and may vary from year to year. For new share classes, the OCF is estimated until the fund's financial year end. The types of charges included in the OCF are management fees, administration fees, custodian safekeeping, transaction charges, depositary charges, shareholder reporting costs, regulatory registration fees, Directors fees (where applicable) and bank charges. It excludes: performance fees (where applicable); portfolio transaction costs, except in the case of an entry/exit charge paid by the fund when buying or selling units in another collective investment undertaking
A-EUR 1.70 A-EUR 1.91 The Board believes that the Merger will not trigger a dilution in the performance of the Receiving Fund. We enclose the Key Investor Information Document of the Receiving Fund in Appendix II. Full Information can also be found in the Fidelity Funds Prospectus which is available at the registered office of Fidelity Funds or at www.fidelityinternational.com. Shareholders are required to read these documents. Shareholder Choices 1. If you agree with these changes you do not need to take any action. The Merger will proceed as set out in the Articles and the Prospectus. All issues, switching and redemptions of Shares in the Merging Fund will be suspended from 6.00 pm CET (5.00 pm UK time) on 28 th October 2016. 2. If you are not in agreement with these changes, we are offering you a free switch of your existing Shares in the Merging Fund and / or in the Receiving Fund into any other fund within Fidelity Funds available to you, or, 3. You may choose to redeem your existing Shares in the Merging Fund and / or in the Receiving Fund free of charge. If you wish to redeem or switch, you should contact either your financial adviser or usual Fidelity Service Centre, quoting reference YINT1116. Fidelity will not charge any redemption fee or levy any switch fee if the instruction is received in the conditions set forth and in writing quoting the reference number above. Redemptions or switches free of charge can be instructed on any Valuation Date until 6.00 pm CET (5.00 pm UK time) on 28 th October 2016 starting from the receipt of this letter, and will normally be dealt with at the next calculated Net Asset Value ( NAV ). Different procedures may apply if dealing in Shares is made through Distributors. For further information on these please contact your usual contact. If you have not redeemed or switched your Shares by 28 th October 2016, your existing Shares will be automatically converted into Shares of the corresponding Share class in the Receiving Fund. Shareholders of the Merging Fund will receive a number of Shares of the Receiving Fund, the total value of which will correspond to the total value of their existing Shares in the Merging Fund. This will be determined by multiplying the number of Shares of the corresponding class of the Merging Fund by the exchange ratio. The exchange ratio for the conversion of the Shares in the Merging Fund into the corresponding Shares in the Receiving Fund will be determined on the basis of the last available NAV of the Share classes concerned on 4 th November 2016 as of close of business. The number of Shares of the Receiving Fund to be received by Shareholders of the Merging Fund may not be the same as the number of Shares they held in the Merging Fund. Shareholders of the Merging Fund will receive a written confirmation of the number of Shares which they will receive in the Receiving Fund post- Merger. Shareholders of the Merging Fund may deal in their newly issued Shares in the Receiving Fund from the opening of business on 8 th November 2016. Any accrued income on investments in the Merging Fund at the time of the Merger will be included in the final NAV per Share of the Merging Fund, and such accrued income will be accounted for on an on-going basis after the Merger in the NAV per Share of the Receiving Fund. The proposed Merger will have no tax implications for the Merging Fund or the Receiving Fund in Luxembourg. Shareholders of the Merging Fund should note that the Merger may be treated for tax purposes as a disposal of Shares depending on personal circumstances and the tax legislation in the various jurisdictions where Shareholders reside. Equally, please note that the redemption or the switching of your holding may be deemed as a disposal for tax purposes. If you have any concerns about your tax position, we recommend that you seek independent tax advice as we are not authorised to provide such a service. Expenses triggered by the Merger, such as audit and mailing charges will be borne by FIL Fund Management Limited, the Investment Manager of Fidelity Funds. The Merging Fund will bear the market-related transaction costs associated with the disposal of any investments that would not fit with the investment objective of the Receiving Fund. There are no unamortised preliminary expenses outstanding in respect of the Merging Fund. Any additional liabilities attributable to the Merging Fund, accruing after 6.00 pm CET (5.00pm UK time) on the Effective Date, will be borne by the Receiving Fund. Shareholders should note that in the week prior to the Effective Date, the intention is that the portfolio of the Merging Fund be rebalanced to match the portfolio of the Receiving Fund and all transaction costs arising from this rebalancing will be borne by the Merging Fund. From this point, the Merging Fund will follow the investment objective of the Receiving Fund.