Fidelity Advisor® Emerging Markets Income Fund
Class A, Class M (formerly Class T), Class C and Class I
Semi-Annual Report June 30, 2017 |
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Contents
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For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Five Countries as of June 30, 2017
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| United States of America | 7.9 | 4.0 |
| Mexico | 7.0 | 9.5 |
| Turkey | 6.5 | 4.7 |
| Venezuela | 4.8 | 7.4 |
| Argentina | 4.7 | 3.5 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Top Five Holdings as of June 30, 2017
| (by issuer, excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| Petroleos Mexicanos | 6.6 | 7.5 |
| U.S. Treasury Obligations | 6.2 | 1.9 |
| Turkish Republic | 6.1 | 4.5 |
| Argentine Republic | 4.7 | 3.4 |
| Lebanese Republic | 4.5 | 5.5 |
| | 28.1 | |
Asset Allocation (% of fund's net assets)
| As of June 30, 2017 |
| | Corporate Bonds | 29.0% |
| | Government Obligations | 61.3% |
| | Stocks | 0.5% |
| | Preferred Securities | 0.2% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 9.0% |
| As of December 31, 2016 |
| | Corporate Bonds | 35.4% |
| | Government Obligations | 58.2% |
| | Stocks | 0.8% |
| | Preferred Securities | 0.3% |
| | Investment Companies | 0.3% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 5.0% |
Investments June 30, 2017 (Unaudited)
Showing Percentage of Net Assets
| Nonconvertible Bonds - 29.0% | | | |
| | | Principal Amount(a) | Value |
| Azerbaijan - 1.7% | | | |
| International Bank of Azerbaijan OJSC 5.625% 6/11/19 (Reg. S) | | $10,445,000 | $8,567,825 |
| Southern Gas Corridor CJSC 6.875% 3/24/26 (b) | | 59,820,000 | 64,755,150 |
| State Oil Co. of Azerbaijan Republic 6.95% 3/18/30 (Reg. S) | | 10,835,000 | 11,380,001 |
|
| TOTAL AZERBAIJAN | | | 84,702,976 |
|
| Brazil - 0.4% | | | |
| Banco Nacional de Desenvolvimento Economico e Social 6.5% 6/10/19 (b) | | 7,495,000 | 7,954,144 |
| Caixa Economica Federal: | | | |
| 4.25% 5/13/19 (b) | | 10,425,000 | 10,560,525 |
| 7.25% 7/23/24 (b)(c) | | 2,965,000 | 2,983,680 |
|
| TOTAL BRAZIL | | | 21,498,349 |
|
| British Virgin Islands - 0.3% | | | |
| 1MDB Global Investments Ltd. 4.4% 3/9/23 | | 17,600,000 | 16,287,850 |
| Canada - 0.4% | | | |
| Evraz, Inc. NA Canada 7.5% 11/15/19 (b) | | 2,000 | 2,045 |
| First Quantum Minerals Ltd.: | | | |
| 7% 2/15/21 (b) | | 1,460,000 | 1,496,500 |
| 7.25% 5/15/22 (b) | | 3,510,000 | 3,588,975 |
| 7.25% 4/1/23 (b) | | 4,675,000 | 4,569,813 |
| 7.5% 4/1/25 (b) | | 7,790,000 | 7,614,725 |
| Pacific Exploration and Production Corp. 10% 11/2/21 pay-in-kind (c) | | 4,500,000 | 5,068,125 |
|
| TOTAL CANADA | | | 22,340,183 |
|
| Cayman Islands - 0.2% | | | |
| Brazil Minas SPE 5.333% 2/15/28 (b) | | 6,985,000 | 6,792,913 |
| Odebrecht Finance Ltd. 4.375% 4/25/25 (b) | | 11,370,000 | 4,377,450 |
|
| TOTAL CAYMAN ISLANDS | | | 11,170,363 |
|
| Costa Rica - 0.2% | | | |
| Banco Nacional de Costa Rica 6.25% 11/1/23 (b) | | 2,755,000 | 2,892,750 |
| Instituto Costarricense de Electricidad: | | | |
| 6.375% 5/15/43 (b) | | 3,400,000 | 3,027,462 |
| 6.95% 11/10/21 (b) | | 3,639,000 | 3,904,647 |
|
| TOTAL COSTA RICA | | | 9,824,859 |
|
| Georgia - 0.8% | | | |
| Georgian Oil & Gas Corp. 6.75% 4/26/21 (b) | | 19,962,000 | 20,864,282 |
| JSC BGEO Group 6% 7/26/23 (b) | | 7,755,000 | 7,871,635 |
| JSC Georgian Railway 7.75% 7/11/22 (b) | | 9,770,000 | 10,727,968 |
|
| TOTAL GEORGIA | | | 39,463,885 |
|
| Indonesia - 1.3% | | | |
| PT Pertamina Persero: | | | |
| 5.625% 5/20/43 (b) | | 6,800,000 | 7,037,878 |
| 6% 5/3/42 (b) | | 30,041,000 | 32,429,320 |
| 6.5% 5/27/41 (b) | | 23,090,000 | 26,341,418 |
|
| TOTAL INDONESIA | | | 65,808,616 |
|
| Ireland - 1.7% | | | |
| Borets Finance DAC 6.5% 4/7/22 (b) | | 4,375,000 | 4,648,438 |
| Metalloinvest Finance Designated Activity Co. 4.85% 5/2/24 (b) | | 4,520,000 | 4,520,000 |
| RZD Capital Ltd. 5.7% 4/5/22 (Reg. S) | | 5,300,000 | 5,678,049 |
| SCF Capital Ltd. 5.375% 6/16/23 (b) | | 9,150,000 | 9,458,813 |
| Vnesheconombank Via VEB Finance PLC: | | | |
| 5.942% 11/21/23 (b) | | 13,140,000 | 14,090,232 |
| 6.025% 7/5/22 (b) | | 9,560,000 | 10,242,680 |
| 6.8% 11/22/25 (b) | | 9,000,000 | 9,969,480 |
| 6.902% 7/9/20 (b) | | 23,560,000 | 25,600,013 |
|
| TOTAL IRELAND | | | 84,207,705 |
|
| Israel - 0.1% | | | |
| Israel Electric Corp. Ltd. 7.75% 12/15/27 (Reg. S) | | 3,076,000 | 3,875,815 |
| Kazakhstan - 1.5% | | | |
| Development Bank of Kazakhstan JSC 4.125% 12/10/22 (b) | | 6,670,000 | 6,671,267 |
| Kazagro National Management Holding JSC 4.625% 5/24/23 (b) | | 10,555,000 | 10,506,447 |
| KazMunaiGaz Finance Sub BV: | | | |
| 3.875% 4/19/22 (b) | | 11,440,000 | 11,321,024 |
| 5.75% 4/19/47 (b) | | 13,725,000 | 12,959,145 |
| 6.375% 4/9/21 (b) | | 16,130,000 | 17,520,083 |
| 7% 5/5/20 (b) | | 15,135,000 | 16,439,334 |
| Samruk-Energy JSC 3.75% 12/20/17 (Reg. S) | | 1,955,000 | 1,945,577 |
|
| TOTAL KAZAKHSTAN | | | 77,362,877 |
|
| Luxembourg - 1.2% | | | |
| EVRAZ Group SA 5.375% 3/20/23 (b) | | 13,320,000 | 13,359,960 |
| Petrobras International Finance Co. Ltd. 8.375% 12/10/18 | | 26,891,000 | 28,749,706 |
| RSHB Capital SA 8.5% 10/16/23 (b) | | 2,460,000 | 2,842,520 |
| Rumo Luxembourg Sarl 7.375% 2/9/24 (b) | | 2,240,000 | 2,300,704 |
| Steel Capital SA LN Partner Net Program 3.85% 8/27/21 (b) | | 9,075,000 | 9,168,854 |
| VM Holding SA 5.375% 5/4/27 (b) | | 3,505,000 | 3,538,298 |
|
| TOTAL LUXEMBOURG | | | 59,960,042 |
|
| Mexico - 7.0% | | | |
| Comision Federal de Electricid: | | | |
| 4.75% 2/23/27 (b) | | 9,030,000 | 9,289,613 |
| 4.875% 1/15/24 (b) | | 10,990,000 | 11,608,188 |
| Petroleos Mexicanos: | | | |
| 4.625% 9/21/23 | | 7,340,000 | 7,428,080 |
| 4.875% 1/24/22 | | 21,340,000 | 21,984,681 |
| 4.875% 1/18/24 | | 5,785,000 | 5,859,627 |
| 4.8781% 3/11/22 (b)(c) | | 23,075,000 | 24,886,388 |
| 5.375% 3/13/22 (b) | | 2,280,000 | 2,400,270 |
| 5.5% 1/21/21 | | 13,345,000 | 13,998,905 |
| 5.5% 6/27/44 | | 7,160,000 | 6,329,440 |
| 5.625% 1/23/46 | | 14,958,000 | 13,260,267 |
| 6.375% 2/4/21 | | 22,900,000 | 24,784,670 |
| 6.375% 1/23/45 | | 33,210,000 | 32,379,750 |
| 6.5% 6/2/41 | | 96,795,000 | 96,117,435 |
| 6.75% 9/21/47 | | 27,910,000 | 28,185,751 |
| 6.875% 8/4/26 | | 46,420,000 | 51,433,360 |
|
| TOTAL MEXICO | | | 349,946,425 |
|
| Mongolia - 0.2% | | | |
| Trade and Development Bank of Mongolia LLC 9.375% 5/19/20 (Reg. S) | | 11,241,000 | 11,999,824 |
| Netherlands - 3.8% | | | |
| Dilijan Finance BV 12% 7/29/20 (b) | | 1,980,000 | 1,979,525 |
| Kazakhstan Temir Zholy Finance BV: | | | |
| 6.375% 10/6/20 (b) | | 3,505,000 | 3,765,754 |
| 6.95% 7/10/42 (b) | | 8,840,000 | 9,387,019 |
| Majapahit Holding BV 7.875% 6/29/37 (Reg. S) | | 4,700,000 | 6,133,500 |
| Petrobras Global Finance BV: | | | |
| 8.375% 5/23/21 | | 90,215,000 | 100,984,867 |
| 8.75% 5/23/26 | | 58,435,000 | 67,200,250 |
|
| TOTAL NETHERLANDS | | | 189,450,915 |
|
| Nigeria - 0.1% | | | |
| Zenith Bank PLC 7.375% 5/30/22 (b) | | 5,500,000 | 5,391,100 |
| Oman - 0.2% | | | |
| Oman Sovereign Sukuk SAOC 4.397% 6/1/24 (b) | | 11,475,000 | 11,354,513 |
| Peru - 0.3% | | | |
| Petroleos Del Peru Petroperu SA: | | | |
| 4.75% 6/19/32 (b) | | 6,795,000 | 6,744,038 |
| 5.625% 6/19/47 (b) | | 9,060,000 | 9,150,600 |
|
| TOTAL PERU | | | 15,894,638 |
|
| South Africa - 0.7% | | | |
| Eskom Holdings SOC Ltd.: | | | |
| 5.75% 1/26/21 (Reg. S) | | 13,600,000 | 13,736,000 |
| 6.75% 8/6/23 (b) | | 6,550,000 | 6,679,035 |
| 7.125% 2/11/25 (b) | | 7,015,000 | 7,155,300 |
| TransCanada PipeLines Ltd. 4% 7/26/22 (b) | | 6,075,000 | 5,913,927 |
|
| TOTAL SOUTH AFRICA | | | 33,484,262 |
|
| Sri Lanka - 0.1% | | | |
| National Savings Bank 8.875% 9/18/18 (b) | | 2,625,000 | 2,768,588 |
| Trinidad & Tobago - 0.3% | | | |
| Petroleum Co. of Trinidad & Tobago Ltd. 9.75% 8/14/19 (b) | | 16,895,000 | 17,477,878 |
| Tunisia - 0.4% | | | |
| Banque Centrale de Tunisie: | | | |
| 5.625% 2/17/24 (Reg. S) | EUR | 6,880,000 | 7,992,929 |
| 5.75% 1/30/25 (b) | | 11,055,000 | 10,598,981 |
|
| TOTAL TUNISIA | | | 18,591,910 |
|
| Turkey - 0.4% | | | |
| Akbank TAS/Ak Finansal Kiralama A/S 7.2% 3/16/27 (b)(c) | | 5,625,000 | 5,839,313 |
| Export Credit Bank of Turkey 5% 9/23/21 (b) | | 3,420,000 | 3,473,420 |
| Finansbank A/S 4.875% 5/19/22 (b) | | 6,795,000 | 6,726,235 |
| Turkiye Ihracat Kredi Bankasi A/S 5.375% 10/24/23 (b) | | 4,475,000 | 4,519,750 |
|
| TOTAL TURKEY | | | 20,558,718 |
|
| United Arab Emirates - 0.1% | | | |
| DP World Ltd. 6.85% 7/2/37 (Reg. S) | | 5,180,000 | 6,087,215 |
| United Kingdom - 0.9% | | | |
| Biz Finance PLC: | | | |
| 9.625% 4/27/22 (b) | | 33,485,000 | 34,489,550 |
| 9.75% 1/22/25 (b) | | 3,000,000 | 3,067,200 |
| Oschadbank Via SSB #1 PLC 9.625% 3/20/25 (b) | | 2,310,000 | 2,359,088 |
| SSB #1 PLC 9.375% 3/10/23 (b) | | 2,955,000 | 3,021,488 |
|
| TOTAL UNITED KINGDOM | | | 42,937,326 |
|
| United States of America - 1.7% | | | |
| Brazil Loan Trust 1 5.477% 7/24/23 (b) | | 2,564,753 | 2,583,988 |
| Pemex Project Funding Master Trust: | | | |
| 6.625% 6/15/35 | | 59,325,000 | 61,327,219 |
| 8.625% 2/1/22 | | 12,438,000 | 14,671,094 |
| Stillwater Mining Co. 7.125% 6/27/25 (b) | | 5,420,000 | 5,330,570 |
|
| TOTAL UNITED STATES OF AMERICA | | | 83,912,871 |
|
| Venezuela - 3.0% | | | |
| Petroleos de Venezuela SA: | | | |
| 5.375% 4/12/27 | | 57,475,000 | 20,691,000 |
| 5.5% 4/12/37 | | 68,595,000 | 24,522,713 |
| 6% 5/16/24 (b) | | 79,495,000 | 29,611,888 |
| 6% 11/15/26 (Reg. S) | | 91,480,000 | 33,847,600 |
| 8.5% 10/27/20 (Reg. S) | | 23,505,000 | 16,947,105 |
| 9% 11/17/21 (Reg. S) | | 16,225,000 | 7,909,688 |
| 9.75% 5/17/35 (b) | | 16,975,000 | 7,897,619 |
| 12.75% 2/17/22 (b) | | 11,435,000 | 6,403,600 |
|
| TOTAL VENEZUELA | | | 147,831,213 |
|
| TOTAL NONCONVERTIBLE BONDS | | | |
| (Cost $1,448,215,692) | | | 1,454,190,916 |
|
| Government Obligations - 61.3% | | | |
| Angola - 0.1% | | | |
| Angola Republic 9.5% 11/12/25 (b) | | 4,865,000 | 5,122,359 |
| Argentina - 4.7% | | | |
| Argentine Republic: | | | |
| 5.625% 1/26/22 | | 11,610,000 | 11,888,640 |
| 6.25% 4/22/19 | | 13,405,000 | 14,041,738 |
| 6.625% 7/6/28 | | 5,370,000 | 5,410,007 |
| 6.875% 4/22/21 | | 26,705,000 | 28,574,350 |
| 6.875% 1/26/27 | | 37,060,000 | 38,394,160 |
| 7.125% 6/28/17 (b) | | 37,535,000 | 34,063,013 |
| 7.125% 7/6/36 | | 10,460,000 | 10,381,550 |
| 7.5% 4/22/26 | | 49,075,000 | 52,878,313 |
| 7.82% 12/31/33 | EUR | 9,467,593 | 11,559,537 |
| 8.28% 12/31/33 | | 28,033,750 | 30,977,294 |
|
| TOTAL ARGENTINA | | | 238,168,602 |
|
| Armenia - 0.8% | | | |
| Republic of Armenia: | | | |
| 6% 9/30/20 (b) | | 25,740,000 | 26,969,857 |
| 7.15% 3/26/25 (b) | | 10,350,000 | 11,316,483 |
|
| TOTAL ARMENIA | | | 38,286,340 |
|
| Barbados - 0.4% | | | |
| Barbados Government: | | | |
| 7% 8/4/22 (b) | | 16,559,000 | 14,240,740 |
| 7.25% 12/15/21 (b) | | 7,679,000 | 6,680,730 |
|
| TOTAL BARBADOS | | | 20,921,470 |
|
| Belarus - 0.4% | | | |
| Belarus Republic: | | | |
| 6.875% 2/28/23 (b) | | 9,060,000 | 9,250,260 |
| 7.625% 6/29/27 (b) | | 9,060,000 | 9,245,694 |
|
| TOTAL BELARUS | | | 18,495,954 |
|
| Bolivia - 0.3% | | | |
| Plurinational State of Bolivia 4.5% 3/20/28 (b) | | 14,020,000 | 13,704,550 |
| Brazil - 4.0% | | | |
| Brazilian Federative Republic: | | | |
| 2.625% 1/5/23 | | 11,500,000 | 10,651,875 |
| 4.25% 1/7/25 | | 24,460,000 | 24,031,950 |
| 4.875% 1/22/21 | | 13,130,000 | 13,760,240 |
| 5% 1/27/45 | | 19,355,000 | 16,935,625 |
| 5.625% 1/7/41 | | 16,205,000 | 15,597,313 |
| 5.625% 2/21/47 | | 9,775,000 | 9,335,125 |
| 6% 4/7/26 | | 16,390,000 | 17,684,810 |
| 7.125% 1/20/37 | | 13,195,000 | 15,075,288 |
| 8.25% 1/20/34 | | 38,250,000 | 47,812,500 |
| 8.75% 2/4/25 | | 3,120,000 | 3,962,400 |
| 8.875% 4/15/24 | | 4,005,000 | 5,036,288 |
| 10.125% 5/15/27 | | 6,670,000 | 9,454,725 |
| 12.25% 3/6/30 | | 6,915,000 | 11,202,300 |
|
| TOTAL BRAZIL | | | 200,540,439 |
|
| Cameroon - 0.4% | | | |
| Cameroon Republic 9.5% 11/19/25 (b) | | 18,885,000 | 22,284,300 |
| Colombia - 0.6% | | | |
| Colombian Republic 7.375% 9/18/37 | | 22,945,000 | 29,507,270 |
| Costa Rica - 0.5% | | | |
| Costa Rican Republic: | | | |
| 4.25% 1/26/23 (b) | | 4,825,000 | 4,698,344 |
| 4.375% 4/30/25 (b) | | 6,180,000 | 5,865,994 |
| 5.625% 4/30/43 (b) | | 4,500,000 | 4,037,850 |
| 7% 4/4/44 (b) | | 5,825,000 | 6,058,000 |
| 7.158% 3/12/45 (b) | | 4,845,000 | 5,087,250 |
|
| TOTAL COSTA RICA | | | 25,747,438 |
|
| Croatia - 0.7% | | | |
| Croatia Republic: | | | |
| 5.5% 4/4/23 (b) | | 5,890,000 | 6,441,245 |
| 6% 1/26/24 (b) | | 9,135,000 | 10,232,936 |
| 6.375% 3/24/21 (b) | | 9,725,000 | 10,796,539 |
| 6.625% 7/14/20 (b) | | 6,100,000 | 6,725,250 |
|
| TOTAL CROATIA | | | 34,195,970 |
|
| Dominican Republic - 1.8% | | | |
| Dominican Republic: | | | |
| 5.5% 1/27/25 (b) | | 8,000,000 | 8,260,000 |
| 5.875% 4/18/24 (b) | | 5,170,000 | 5,454,350 |
| 5.95% 1/25/27 (b) | | 21,645,000 | 22,619,025 |
| 6.6% 1/28/24 (b) | | 5,625,000 | 6,180,469 |
| 6.85% 1/27/45 (b) | | 11,990,000 | 12,769,350 |
| 6.875% 1/29/26 (b) | | 13,690,000 | 15,281,463 |
| 7.45% 4/30/44 (b) | | 8,495,000 | 9,684,300 |
| 7.5% 5/6/21 (b) | | 8,245,000 | 9,110,725 |
|
| TOTAL DOMINICAN REPUBLIC | | | 89,359,682 |
|
| Ecuador - 1.1% | | | |
| Ecuador Republic: | | | |
| 7.95% 6/20/24 (b) | | 10,540,000 | 9,854,900 |
| 8.75% 6/2/23 (b) | | 5,325,000 | 5,245,125 |
| 9.625% 6/2/27 (b) | | 5,415,000 | 5,415,000 |
| 9.65% 12/13/26 (b) | | 9,190,000 | 9,178,053 |
| 10.5% 3/24/20 (b) | | 12,040,000 | 12,642,000 |
| 10.75% 3/28/22 (b) | | 12,175,000 | 12,996,813 |
|
| TOTAL ECUADOR | | | 55,331,891 |
|
| Egypt - 1.5% | | | |
| Arab Republic 5.875% 6/11/25 (b) | | 9,090,000 | 8,885,475 |
| Arab Republic of Egypt: | | | |
| , yield at date of purchase 20.1483% to 20.3492% 9/19/17 to 12/26/17 | EGP | 138,725,000 | 7,155,739 |
| 6.125% 1/31/22 (b) | | 20,030,000 | 20,460,645 |
| 6.875% 4/30/40 (b) | | 3,170,000 | 3,001,724 |
| 7.5% 1/31/27 (b) | | 16,015,000 | 17,007,930 |
| 8.5% 1/31/47 (b) | | 15,875,000 | 17,112,425 |
|
| TOTAL EGYPT | | | 73,623,938 |
|
| El Salvador - 0.9% | | | |
| El Salvador Republic: | | | |
| 5.875% 1/30/25 (Reg.S) | | 7,722,000 | 6,924,317 |
| 6.375% 1/18/27 (b) | | 7,095,000 | 6,403,238 |
| 7.375% 12/1/19 | | 4,695,000 | 4,753,688 |
| 7.625% 2/1/41 (b) | | 9,085,000 | 8,403,625 |
| 7.65% 6/15/35 (Reg. S) | | 5,325,000 | 4,975,680 |
| 7.75% 1/24/23 (Reg. S) | | 2,995,000 | 3,028,844 |
| 8.25% 4/10/32 (Reg. S) | | 1,930,000 | 1,912,823 |
| 8.625% 2/28/29 (b) | | 8,875,000 | 9,230,000 |
|
| TOTAL EL SALVADOR | | | 45,632,215 |
|
| Ethiopia - 0.2% | | | |
| Federal Democratic Republic of Ethiopia 6.625% 12/11/24 (b) | | 8,495,000 | 8,410,050 |
| Gabon - 0.3% | | | |
| Gabonese Republic: | | | |
| 6.375% 12/12/24 (b) | | 9,835,000 | 9,575,946 |
| 6.95% 6/16/25 (b) | | 6,865,000 | 6,836,634 |
|
| TOTAL GABON | | | 16,412,580 |
|
| Ghana - 1.5% | | | |
| Ghana Republic: | | | |
| 7.875% 8/7/23 (Reg.S) | | 15,985,000 | 16,304,061 |
| 8.125% 1/18/26 (b) | | 11,750,000 | 11,982,885 |
| 9.25% 9/15/22 (b) | | 22,235,000 | 23,969,597 |
| 10.75% 10/14/30 (b) | | 18,875,000 | 23,369,138 |
|
| TOTAL GHANA | | | 75,625,681 |
|
| Guatemala - 0.2% | | | |
| Guatemalan Republic 4.375% 6/5/27 (b) | | 11,290,000 | 11,205,325 |
| Honduras - 0.2% | | | |
| Republic of Honduras 6.25% 1/19/27 | | 11,365,000 | 11,734,363 |
| Indonesia - 1.5% | | | |
| Indonesian Republic: | | | |
| 4.75% 1/8/26 (b) | | 6,660,000 | 7,148,538 |
| 5.875% 1/15/24 (b) | | 7,205,000 | 8,212,490 |
| 6.625% 2/17/37 | | 12,975,000 | 16,071,990 |
| 7.75% 1/17/38 (b) | | 12,890,000 | 17,783,843 |
| 8.5% 10/12/35 (b) | | 16,590,000 | 23,881,554 |
|
| TOTAL INDONESIA | | | 73,098,415 |
|
| Iraq - 0.6% | | | |
| Republic of Iraq 5.8% 1/15/28 (Reg. S) | | 31,530,000 | 27,972,092 |
| Ivory Coast - 0.7% | | | |
| Ivory Coast: | | | |
| 5.125% 6/15/25 (b) | EUR | 2,390,000 | 2,758,488 |
| 5.75% 12/31/32 | | 13,019,300 | 12,498,528 |
| 6.125% 6/15/33 (b) | | 13,085,000 | 12,561,600 |
| 6.375% 3/3/28 (b) | | 7,540,000 | 7,615,400 |
|
| TOTAL IVORY COAST | | | 35,434,016 |
|
| Jamaica - 0.6% | | | |
| Jamaican Government: | | | |
| 6.75% 4/28/28 | | 9,295,000 | 10,540,530 |
| 7.625% 7/9/25 | | 6,845,000 | 7,984,693 |
| 7.875% 7/28/45 | | 1,980,000 | 2,331,846 |
| 8% 3/15/39 | | 6,405,000 | 7,557,900 |
|
| TOTAL JAMAICA | | | 28,414,969 |
|
| Jordan - 0.7% | | | |
| Jordanian Kingdom: | | | |
| 5.75% 1/31/27 (b) | | 19,655,000 | 19,537,070 |
| 6.125% 1/29/26 (b) | | 15,170,000 | 15,512,933 |
|
| TOTAL JORDAN | | | 35,050,003 |
|
| Kenya - 0.5% | | | |
| Republic of Kenya 6.875% 6/24/24 (b) | | 23,250,000 | 23,773,125 |
| Kuwait - 0.6% | | | |
| State of Kuwait 3.5% 3/20/27 (b) | | 28,170,000 | 28,778,472 |
| Lebanon - 4.5% | | | |
| Lebanese Republic: | | | |
| 4% 12/31/17 | | 13,197,750 | 13,141,858 |
| 5% 10/12/17 | | 19,205,000 | 19,205,000 |
| 5.15% 6/12/18 | | 59,975,000 | 60,188,751 |
| 5.15% 11/12/18 | | 7,020,000 | 7,055,732 |
| 5.45% 11/28/19 | | 30,050,000 | 30,136,905 |
| 6% 5/20/19 | | 17,825,000 | 18,037,831 |
| 6% 1/27/23 | | 4,565,000 | 4,535,875 |
| 6.1% 10/4/22 | | 16,230,000 | 16,234,869 |
| 6.375% 3/9/20 | | 8,185,000 | 8,348,700 |
| 6.6% 11/27/26 | | 8,975,000 | 8,975,000 |
| 6.65% 2/26/30 (Reg. S) | | 14,443,000 | 14,190,825 |
| 6.75% 11/29/27 (Reg. S) | | 6,300,000 | 6,286,140 |
| 7.05% 11/2/35(Reg. S) | | 4,040,000 | 4,004,981 |
| 8.25% 4/12/21 (Reg.S) | | 13,105,000 | 14,126,928 |
|
| TOTAL LEBANON | | | 224,469,395 |
|
| Mongolia - 0.6% | | | |
| Mongolian People's Republic: | | | |
| 5.125% 12/5/22 (Reg. S) | | 11,835,000 | 11,100,922 |
| 8.75% 3/9/24 (b) | | 12,515,000 | 13,698,569 |
| 10.875% 4/6/21 (b) | | 4,595,000 | 5,239,747 |
|
| TOTAL MONGOLIA | | | 30,039,238 |
|
| Namibia - 0.1% | | | |
| Republic of Namibia: | | | |
| 5.25% 10/29/25 (b) | | 4,620,000 | 4,753,749 |
| 5.5% 11/3/21 (b) | | 1,822,000 | 1,960,782 |
|
| TOTAL NAMIBIA | | | 6,714,531 |
|
| Netherlands - 0.1% | | | |
| Republic of Angola 7% 8/17/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S) | | 3,332,813 | 3,431,264 |
| Nigeria - 0.4% | | | |
| Republic of Nigeria: | | | |
| 6.375% 7/12/23 (b) | | 9,085,000 | 9,346,194 |
| 7.875% 2/16/32 (b) | | 11,550,000 | 12,520,085 |
|
| TOTAL NIGERIA | | | 21,866,279 |
|
| Oman - 1.2% | | | |
| Sultanate of Oman: | | | |
| 4.75% 6/15/26 (b) | | 13,740,000 | 13,513,290 |
| 5.375% 3/8/27 (b) | | 13,740,000 | 14,049,150 |
| 6.5% 3/8/47 (b) | | 33,910,000 | 34,605,562 |
|
| TOTAL OMAN | | | 62,168,002 |
|
| Pakistan - 0.6% | | | |
| Islamic Republic of Pakistan: | | | |
| 7.25% 4/15/19 (b) | | 5,445,000 | 5,742,079 |
| 8.25% 4/15/24 (b) | | 12,645,000 | 14,347,877 |
| 8.25% 9/30/25 (b) | | 6,835,000 | 7,825,631 |
|
| TOTAL PAKISTAN | | | 27,915,587 |
|
| Panama - 0.4% | | | |
| Panamanian Republic: | | | |
| 8.875% 9/30/27 | | 5,299,000 | 7,551,075 |
| 9.375% 4/1/29 | | 7,320,000 | 10,797,000 |
|
| TOTAL PANAMA | | | 18,348,075 |
|
| Paraguay - 0.3% | | | |
| Republic of Paraguay: | | | |
| 4.7% 3/27/27 (b) | | 5,535,000 | 5,680,294 |
| 5% 4/15/26 (b) | | 2,295,000 | 2,424,094 |
| 6.1% 8/11/44 (b) | | 5,350,000 | 5,925,125 |
|
| TOTAL PARAGUAY | | | 14,029,513 |
|
| Poland - 0.2% | | | |
| Polish Government 2.5% 7/25/27 | PLN | 50,025,000 | 12,560,080 |
| Qatar - 0.5% | | | |
| State of Qatar: | | | |
| 2.375% 6/2/21 | | 18,370,000 | 17,917,804 |
| 9.75% 6/15/30 (Reg. S) | | 4,135,000 | 6,495,754 |
|
| TOTAL QATAR | | | 24,413,558 |
|
| Romania - 0.3% | | | |
| Romanian Republic 5.85% 4/26/23 | RON | 45,900,000 | 13,206,651 |
| Russia - 3.5% | | | |
| Ministry of Finance Russian Federation 4.75% 5/27/26 (b) | | 17,200,000 | 17,952,500 |
| Russian Federation: | | | |
| 4.25% 6/23/27 (b) | | 22,600,000 | 22,528,584 |
| 4.875% 9/16/23 (b) | | 9,590,000 | 10,285,122 |
| 5.25% 6/23/47 (b) | | 46,800,000 | 47,126,290 |
| 5.625% 4/4/42 (b) | | 15,305,000 | 16,567,663 |
| 12.75% 6/24/28 (Reg. S) | | 35,894,000 | 62,683,128 |
|
| TOTAL RUSSIA | | | 177,143,287 |
|
| Rwanda - 0.2% | | | |
| Rwanda Rep 6.625% 5/2/23 (b) | | 8,185,000 | 8,419,959 |
| Saudi Arabia - 2.1% | | | |
| Saudi Arabia Kingdom of: | | | |
| 2.375% 10/26/21 (b) | | 22,335,000 | 21,977,640 |
| 4.5% 10/26/46 (b) | | 80,260,000 | 81,784,298 |
|
| TOTAL SAUDI ARABIA | | | 103,761,938 |
|
| Senegal - 0.3% | | | |
| Republic of Senegal: | | | |
| 6.25% 7/30/24 (b) | | 2,415,000 | 2,543,575 |
| 6.25% 5/23/33 (b) | | 6,705,000 | 6,803,791 |
| 8.75% 5/13/21 (b) | | 5,565,000 | 6,345,669 |
|
| TOTAL SENEGAL | | | 15,693,035 |
|
| South Africa - 0.8% | | | |
| South African Republic: | | | |
| 4.3% 10/12/28 | | 25,255,000 | 23,591,605 |
| 5.375% 7/24/44 | | 6,890,000 | 6,710,378 |
| 5.875% 9/16/25 | | 10,890,000 | 11,709,320 |
|
| TOTAL SOUTH AFRICA | | | 42,011,303 |
|
| Sri Lanka - 1.1% | | | |
| Democratic Socialist Republic of Sri Lanka: | | | |
| 5.125% 4/11/19 (b) | | 2,960,000 | 3,030,972 |
| 5.875% 7/25/22 (b) | | 3,225,000 | 3,339,339 |
| 6% 1/14/19 (b) | | 3,180,000 | 3,295,520 |
| 6.2% 5/11/27 (b) | | 9,795,000 | 9,779,406 |
| 6.25% 10/4/20 (b) | | 4,345,000 | 4,584,627 |
| 6.25% 7/27/21(b) | | 4,475,000 | 4,739,678 |
| 6.825% 7/18/26 (b) | | 6,000,000 | 6,320,550 |
| 6.85% 11/3/25 (b) | | 19,250,000 | 20,283,841 |
|
| TOTAL SRI LANKA | | | 55,373,933 |
|
| Suriname - 0.3% | | | |
| Republic of Suriname 9.25% 10/26/26 (b) | | 14,780,000 | 15,149,500 |
| Tanzania - 0.0% | | | |
| United Republic of Tanzania 7.421% 3/9/20 (c) | | 1,840,000 | 1,923,168 |
| Turkey - 6.1% | | | |
| Turkish Republic: | | | |
| 4.25% 4/14/26 | | 4,560,000 | 4,328,078 |
| 4.875% 10/9/26 | | 23,995,000 | 23,651,008 |
| 5.125% 3/25/22 | | 5,305,000 | 5,505,847 |
| 5.625% 3/30/21 | | 8,380,000 | 8,882,800 |
| 5.75% 3/22/24 | | 13,855,000 | 14,651,663 |
| 5.75% 5/11/47 | | 18,195,000 | 17,794,710 |
| 6% 3/25/27 | | 45,395,000 | 48,334,780 |
| 6% 1/14/41 | | 20,495,000 | 20,975,608 |
| 6.25% 9/26/22 | | 32,130,000 | 34,907,317 |
| 6.75% 5/30/40 | | 10,180,000 | 11,343,981 |
| 6.875% 3/17/36 | | 37,300,000 | 41,932,660 |
| 7% 6/5/20 | | 10,755,000 | 11,759,840 |
| 7.25% 3/5/38 | | 9,635,000 | 11,292,220 |
| 7.375% 2/5/25 | | 22,385,000 | 25,922,502 |
| 8% 2/14/34 | | 9,740,000 | 12,073,704 |
| 11.875% 1/15/30 | | 8,075,000 | 12,819,063 |
|
| TOTAL TURKEY | | | 306,175,781 |
|
| Ukraine - 3.4% | | | |
| Ukraine Government: | | | |
| 0% 5/31/40 (b)(c) | | 44,715,000 | 17,365,517 |
| 7.75% 9/1/19 (b) | | 42,093,000 | 43,461,023 |
| 7.75% 9/1/20 (b) | | 40,167,000 | 41,131,008 |
| 7.75% 9/1/21 (b) | | 26,022,000 | 26,429,244 |
| 7.75% 9/1/22 (b) | | 6,292,000 | 6,323,460 |
| 7.75% 9/1/23 (b) | | 7,322,000 | 7,248,780 |
| 7.75% 9/1/24 (b) | | 9,642,000 | 9,452,438 |
| 7.75% 9/1/25 (b) | | 7,352,000 | 7,182,669 |
| 7.75% 9/1/26 (b) | | 6,727,000 | 6,542,815 |
| 7.75% 9/1/27 (b) | | 6,292,000 | 6,094,431 |
|
| TOTAL UKRAINE | | | 171,231,385 |
|
| United States of America - 6.2% | | | |
| U.S. Treasury Bonds: | | | |
| 2.875% 11/15/46 | | 236,793,000 | 238,504,272 |
| 3% 5/15/47 | | 71,880,000 | 74,311,557 |
|
| TOTAL UNITED STATES OF AMERICA | | | 312,815,829 |
|
| Uruguay - 0.1% | | | |
| Uruguay Republic 9.875% 6/20/22 (b) | UYU | 130,890,000 | 4,696,303 |
| Venezuela - 1.8% | | | |
| Venezuelan Republic: | | | |
| oil recovery rights 4/15/20(d)(e) | | 211,320 | 845,280 |
| 6% 12/9/20 | | 9,510,000 | 4,279,500 |
| 7% 12/1/18 (Reg. S) | | 8,075,000 | 5,200,300 |
| 7% 3/31/38 | | 8,645,000 | 3,609,288 |
| 7.65% 4/21/25 | | 15,995,000 | 6,757,888 |
| 7.75% 10/13/19 (Reg. S) | | 13,260,000 | 6,729,450 |
| 8.25% 10/13/24 | | 14,155,000 | 6,086,650 |
| 9% 5/7/23 (Reg. S) | | 15,080,000 | 6,672,900 |
| 9.25% 9/15/27 | | 24,050,000 | 11,904,750 |
| 9.25% 5/7/28 (Reg. S) | | 24,655,000 | 10,909,838 |
| 9.375% 1/13/34 | | 10,515,000 | 4,758,038 |
| 11.75% 10/21/26 (Reg. S) | | 14,165,000 | 7,294,975 |
| 11.95% 8/5/31 (Reg. S) | | 18,410,000 | 9,297,050 |
| 12.75% 8/23/22 | | 8,195,000 | 4,404,813 |
| 13.625% 8/15/18 | | 5,105,000 | 3,856,828 |
|
| TOTAL VENEZUELA | | | 92,607,548 |
|
| Vietnam - 0.1% | | | |
| Vietnamese Socialist Republic 4.8% 11/19/24 (b) | | 5,440,000 | 5,717,059 |
| Zambia - 0.3% | | | |
| Republic of Zambia: | | | |
| 5.375% 9/20/22 (b) | | 3,870,000 | 3,624,216 |
| 8.5% 4/14/24 (b) | | 4,790,000 | 4,993,882 |
| 8.97% 7/30/27 (b) | | 6,215,000 | 6,620,218 |
|
| TOTAL ZAMBIA | | | 15,238,316 |
|
| TOTAL GOVERNMENT OBLIGATIONS | | | |
| (Cost $2,982,458,132) | | | 3,073,952,026 |
| | | Shares | Value |
|
| Common Stocks - 0.5% | | | |
| Canada - 0.0% | | | |
| First Quantum Minerals Ltd. | | 150,000 | 1,268,893 |
| Cayman Islands - 0.5% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (e) | | 173,500 | 24,446,150 |
| TOTAL COMMON STOCKS | | | |
| (Cost $21,382,082) | | | 25,715,043 |
| | | Principal Amount(a) | Value |
|
| Preferred Securities - 0.2% | | | |
| China - 0.1% | | | |
| Sinochem Group 5% (b)(c)(f) | | 3,040,000 | 3,140,783 |
| Ireland - 0.1% | | | |
| Alfa Bond Issuance PLC 8% (Reg. S) (c)(f) | | 4,650,000 | 4,964,954 |
| TOTAL PREFERRED SECURITIES | | | |
| (Cost $7,795,242) | | | 8,105,737 |
| | | Shares | Value |
|
| Money Market Funds - 8.2% | | | |
| Fidelity Cash Central Fund, 1.10% (g) | | | |
| (Cost $410,648,174) | | 410,587,404 | 410,669,522 |
| TOTAL INVESTMENT PORTFOLIO - 99.2% | | | |
| (Cost $4,870,499,322) | | | 4,972,633,244 |
| NET OTHER ASSETS (LIABILITIES) - 0.8% | | | 40,080,125 |
| NET ASSETS - 100% | | | $5,012,713,369 |
Currency Abbreviations
EGP – Egyptian pound
EUR – European Monetary Unit
PLN – Polish zloty (new)
RON – Romanian leu (new)
UYU – Uruguay peso
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Amount is stated in United States dollars unless otherwise noted.
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,052,270,713 or 40.9% of net assets.
(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(d) Quantity represents share amount.
(e) Non-income producing
(f) Security is perpetual in nature with no stated maturity date.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,195,641 |
| Fidelity Securities Lending Cash Central Fund | 44,279 |
| Total | $1,239,920 |
Investment Valuation
The following is a summary of the inputs used, as of June 30, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Information Technology | $24,446,150 | $24,446,150 | $-- | $-- |
| Materials | 1,268,893 | 1,268,893 | -- | -- |
| Corporate Bonds | 1,454,190,916 | -- | 1,454,190,916 | -- |
| Government Obligations | 3,073,952,026 | -- | 3,073,106,746 | 845,280 |
| Preferred Securities | 8,105,737 | -- | 8,105,737 | -- |
| Money Market Funds | 410,669,522 | 410,669,522 | -- | -- |
| Total Investments in Securities: | $4,972,633,244 | $436,384,565 | $4,535,403,399 | $845,280 |
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
| U.S. Government and U.S. Government Agency Obligations | 6.2% |
| AAA,AA,A | 3.4% |
| BBB | 17.2% |
| BB | 20.2% |
| B | 27.8% |
| CCC,CC,C | 11.0% |
| Not Rated | 4.7% |
| Equities | 0.5% |
| Short-Term Investments and Net Other Assets | 9.0% |
| | 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | June 30, 2017 (Unaudited) |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $4,459,851,148) | $4,561,963,722 | |
| Fidelity Central Funds (cost $410,648,174) | 410,669,522 | |
| Total Investments (cost $4,870,499,322) | | $4,972,633,244 |
| Cash | | 1,894 |
| Receivable for investments sold | | 13,197,750 |
| Receivable for fund shares sold | | 7,414,433 |
| Interest receivable | | 71,835,983 |
| Distributions receivable from Fidelity Central Funds | | 354,828 |
| Other receivables | | 7,864 |
| Total assets | | 5,065,445,996 |
| Liabilities | | |
| Payable for investments purchased | $30,081,417 | |
| Payable for fund shares redeemed | 7,591,210 | |
| Distributions payable | 11,413,452 | |
| Accrued management fee | 2,735,809 | |
| Distribution and service plan fees payable | 148,291 | |
| Other affiliated payables | 604,663 | |
| Other payables and accrued expenses | 157,785 | |
| Total liabilities | | 52,732,627 |
| Net Assets | | $5,012,713,369 |
| Net Assets consist of: | | |
| Paid in capital | | $4,857,888,681 |
| Undistributed net investment income | | 53,781,392 |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,096,998) |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 102,140,294 |
| Net Assets | | $5,012,713,369 |
| Calculation of Maximum Offering Price | | |
| Class A: | | |
| Net Asset Value and redemption price per share ($204,657,974 ÷ 14,309,731 shares) | | $14.30 |
| Maximum offering price per share (100/96.00 of $14.30) | | $14.90 |
| Class M: | | |
| Net Asset Value and redemption price per share ($68,869,467 ÷ 4,836,111 shares) | | $14.24 |
| Maximum offering price per share (100/96.00 of $14.24) | | $14.83 |
| Class C: | | |
| Net Asset Value and offering price per share ($109,237,486 ÷ 7,579,038 shares)(a) | | $14.41 |
| Class I: | | |
| Net Asset Value, offering price and redemption price per share ($4,629,948,442 ÷ 330,072,412 shares) | | $14.03 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | Six months ended June 30, 2017 (Unaudited) |
| Investment Income | | |
| Dividends | | $708,615 |
| Interest | | 154,214,592 |
| Income from Fidelity Central Funds | | 1,239,920 |
| Income before foreign taxes withheld | | 156,163,127 |
| Less foreign taxes withheld | | (8,969) |
| Total income | | 156,154,158 |
| Expenses | | |
| Management fee | $15,303,917 | |
| Transfer agent fees | 2,914,511 | |
| Distribution and service plan fees | 898,361 | |
| Accounting and security lending fees | 580,799 | |
| Custodian fees and expenses | 90,980 | |
| Independent trustees' fees and expenses | 8,936 | |
| Registration fees | 269,493 | |
| Audit | 61,416 | |
| Legal | 4,511 | |
| Miscellaneous | 61,794 | |
| Total expenses before reductions | 20,194,718 | |
| Expense reductions | (23,070) | 20,171,648 |
| Net investment income (loss) | | 135,982,510 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 8,616,728 | |
| Fidelity Central Funds | 7,850 | |
| Foreign currency transactions | (250,349) | |
| Total net realized gain (loss) | | 8,374,229 |
Change in net unrealized appreciation (depreciation) on:
Investment securities | 143,494,586 | |
| Assets and liabilities in foreign currencies | (50,996) | |
| Total change in net unrealized appreciation (depreciation) | | 143,443,590 |
| Net gain (loss) | | 151,817,819 |
| Net increase (decrease) in net assets resulting from operations | | $287,800,329 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | Six months ended June 30, 2017 (Unaudited) | Year ended December 31, 2016 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $135,982,510 | $232,774,374 |
| Net realized gain (loss) | 8,374,229 | 33,195,507 |
| Change in net unrealized appreciation (depreciation) | 143,443,590 | 201,966,084 |
| Net increase (decrease) in net assets resulting from operations | 287,800,329 | 467,935,965 |
| Distributions to shareholders from net investment income | (121,286,005) | (203,120,749) |
| Distributions to shareholders from net realized gain | – | (23,607,475) |
| Total distributions | (121,286,005) | (226,728,224) |
| Share transactions - net increase (decrease) | 672,944,429 | 780,211,915 |
| Redemption fees | 172,322 | 336,095 |
| Total increase (decrease) in net assets | 839,631,075 | 1,021,755,751 |
| Net Assets | | |
| Beginning of period | 4,173,082,294 | 3,151,326,543 |
| End of period | $5,012,713,369 | $4,173,082,294 |
| Other Information | | |
| Undistributed net investment income end of period | $53,781,392 | $39,084,887 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Income Fund Class A
| | Six months ended (Unaudited) June 30, | Years ended December 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.77 | $12.76 | $13.43 | $13.60 | $15.30 | $13.55 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .399 | .825 | .746 | .690 | .639 | .668 |
| Net realized and unrealized gain (loss) | .483 | .978 | (.783) | (.133) | (1.670) | 1.920 |
| Total from investment operations | .882 | 1.803 | (.037) | .557 | (1.031) | 2.588 |
| Distributions from net investment income | (.353) | (.717) | (.635) | (.602) | (.577) | (.603) |
| Distributions from net realized gain | – | (.077) | – | (.127) | (.095) | (.237) |
| Total distributions | (.353) | (.794) | (.635) | (.729) | (.672) | (.840) |
| Redemption fees added to paid in capitalA | .001 | .001 | .002 | .002 | .003 | .002 |
| Net asset value, end of period | $14.30 | $13.77 | $12.76 | $13.43 | $13.60 | $15.30 |
| Total ReturnB,C,D | 6.45% | 14.39% | (.34)% | 4.01% | (6.83)% | 19.54% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | 1.14%G | 1.14% | 1.16% | 1.16% | 1.17% | 1.18% |
| Expenses net of fee waivers, if any | 1.14%G | 1.14% | 1.16% | 1.16% | 1.17% | 1.18% |
| Expenses net of all reductions | 1.14%G | 1.13% | 1.15% | 1.16% | 1.17% | 1.18% |
| Net investment income (loss) | 5.64%G | 6.08% | 5.60% | 4.88% | 4.45% | 4.59% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $204,658 | $236,324 | $238,065 | $289,083 | $348,952 | $480,718 |
| Portfolio turnover rateH | 50%G | 80% | 105% | 143% | 138% | 87% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Income Fund Class M
| | Six months ended (Unaudited) June 30, | Years ended December 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.71 | $12.70 | $13.37 | $13.54 | $15.24 | $13.50 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .395 | .815 | .736 | .681 | .635 | .662 |
| Net realized and unrealized gain (loss) | .484 | .979 | (.781) | (.130) | (1.668) | 1.914 |
| Total from investment operations | .879 | 1.794 | (.045) | .551 | (1.033) | 2.576 |
| Distributions from net investment income | (.350) | (.708) | (.627) | (.596) | (.575) | (.601) |
| Distributions from net realized gain | – | (.077) | – | (.127) | (.095) | (.237) |
| Total distributions | (.350) | (.785) | (.627) | (.723) | (.670) | (.838) |
| Redemption fees added to paid in capitalA | .001 | .001 | .002 | .002 | .003 | .002 |
| Net asset value, end of period | $14.24 | $13.71 | $12.70 | $13.37 | $13.54 | $15.24 |
| Total ReturnB,C,D | 6.45% | 14.38% | (.40)% | 3.99% | (6.87)% | 19.51% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | 1.17%G | 1.18% | 1.20% | 1.20% | 1.19% | 1.20% |
| Expenses net of fee waivers, if any | 1.17%G | 1.18% | 1.20% | 1.20% | 1.19% | 1.20% |
| Expenses net of all reductions | 1.17%G | 1.18% | 1.20% | 1.19% | 1.19% | 1.20% |
| Net investment income (loss) | 5.61%G | 6.04% | 5.56% | 4.85% | 4.44% | 4.57% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $68,869 | $79,513 | $78,114 | $87,301 | $89,378 | $138,448 |
| Portfolio turnover rateH | 50%G | 80% | 105% | 143% | 138% | 87% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Income Fund Class C
| | Six months ended (Unaudited) June 30, | Years ended December 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.87 | $12.86 | $13.52 | $13.70 | $15.40 | $13.64 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .347 | .728 | .651 | .588 | .536 | .564 |
| Net realized and unrealized gain (loss) | .494 | .977 | (.774) | (.147) | (1.675) | 1.925 |
| Total from investment operations | .841 | 1.705 | (.123) | .441 | (1.139) | 2.489 |
| Distributions from net investment income | (.302) | (.619) | (.539) | (.496) | (.469) | (.494) |
| Distributions from net realized gain | – | (.077) | – | (.127) | (.095) | (.237) |
| Total distributions | (.302) | (.696) | (.539) | (.623) | (.564) | (.731) |
| Redemption fees added to paid in capitalA | .001 | .001 | .002 | .002 | .003 | .002 |
| Net asset value, end of period | $14.41 | $13.87 | $12.86 | $13.52 | $13.70 | $15.40 |
| Total ReturnB,C,D | 6.10% | 13.47% | (.97)% | 3.14% | (7.48)% | 18.59% |
| Ratios to Average Net AssetsE,F | | | | | | |
| Expenses before reductions | 1.90%G | 1.89% | 1.91% | 1.91% | 1.92% | 1.92% |
| Expenses net of fee waivers, if any | 1.90%G | 1.89% | 1.91% | 1.91% | 1.92% | 1.92% |
| Expenses net of all reductions | 1.90%G | 1.89% | 1.90% | 1.91% | 1.92% | 1.92% |
| Net investment income (loss) | 4.88%G | 5.33% | 4.85% | 4.13% | 3.71% | 3.84% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $109,237 | $101,193 | $98,757 | $130,015 | $151,747 | $213,626 |
| Portfolio turnover rateH | 50%G | 80% | 105% | 143% | 138% | 87% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Emerging Markets Income Fund Class I
| | Six months ended (Unaudited) June 30, | Years ended December 31, | | | | |
| | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | | |
| Net asset value, beginning of period | $13.50 | $12.51 | $13.17 | $13.35 | $15.03 | $13.33 |
| Income from Investment Operations | | | | | | |
| Net investment income (loss)A | .410 | .850 | .766 | .713 | .663 | .701 |
| Net realized and unrealized gain (loss) | .487 | .959 | (.768) | (.132) | (1.633) | 1.881 |
| Total from investment operations | .897 | 1.809 | (.002) | .581 | (.970) | 2.582 |
| Distributions from net investment income | (.368) | (.743) | (.660) | (.636) | (.618) | (.647) |
| Distributions from net realized gain | – | (.077) | – | (.127) | (.095) | (.237) |
| Total distributions | (.368) | (.820) | (.660) | (.763) | (.713) | (.884) |
| Redemption fees added to paid in capitalA | .001 | .001 | .002 | .002 | .003 | .002 |
| Net asset value, end of period | $14.03 | $13.50 | $12.51 | $13.17 | $13.35 | $15.03 |
| Total ReturnB,C | 6.69% | 14.74% | (.07)% | 4.27% | (6.54)% | 19.84% |
| Ratios to Average Net AssetsD,E | | | | | | |
| Expenses before reductions | .83%F | .84% | .87% | .89% | .89% | .89% |
| Expenses net of fee waivers, if any | .83%F | .84% | .87% | .89% | .89% | .89% |
| Expenses net of all reductions | .83%F | .83% | .86% | .88% | .89% | .89% |
| Net investment income (loss) | 5.95%F | 6.38% | 5.89% | 5.16% | 4.74% | 4.88% |
| Supplemental Data | | | | | | |
| Net assets, end of period (000 omitted) | $4,629,948 | $3,756,052 | $2,732,680 | $2,136,089 | $1,495,712 | $1,376,278 |
| Portfolio turnover rateG | 50%F | 80% | 105% | 143% | 138% | 87% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended June 30, 2017
1. Organization.
Fidelity Advisor Emerging Markets Income Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M (formerly Class T), Class C and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period January 1, 2016 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, foreign government and government agency obligations, preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. For foreign debt securities, when significant market or security specific events arise, valuations may be determined in good faith in accordance with procedures adopted by the Board. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of June 30, 2017 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $214,305,607 |
| Gross unrealized depreciation | (83,544,038) |
| Net unrealized appreciation (depreciation) on securities | $130,761,569 |
| Tax cost | $4,841,871,675 |
The Fund elected to defer to its next fiscal year approximately $3,459,643 of capital losses recognized during the period November 1, 2016 to December 31, 2016.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $1,278,592,274 and $1,071,361,541, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .66% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| | Distribution
Fee | Service
Fee | Total Fees | Retained
by FDC |
| Class A | -% | .25% | $265,428 | $– |
| Class M | -% | .25% | 103,874 | – |
| Class C | .75% | .25% | 529,059 | 69,151 |
| | | | $898,361 | $69,151 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
| Class A | $15,484 |
| Class M | 2,892 |
| Class C(a) | 4,631 |
| | $23,007 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| | Amount | % of
Class-Level Average
Net Assets(a) |
| Class A | $188,989 | .18 |
| Class M | 84,057 | .20 |
| Class C | 92,758 | .18 |
| Class I | 2,548,707 | .12 |
| | $2,914,511 | |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $550 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $7,289 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $44,279. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $10,614.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $12,456.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Six months ended June 30, 2017 | Year ended December 31, 2016 |
| From net investment income | | |
| Class A | $5,291,864 | $13,406,987 |
| Class M | 2,059,941 | 4,172,153 |
| Class B | – | 77,237 |
| Class C | 2,229,837 | 4,602,578 |
| Class I | 111,704,363 | 180,861,794 |
| Total | $121,286,005 | $203,120,749 |
| From net realized gain | | |
| Class A | $– | $1,402,334 |
| Class M | – | 447,040 |
| Class C | – | 563,333 |
| Class I | – | 21,194,768 |
| Total | $– | $23,607,475 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Six months ended June 30, 2017 | Year ended December 31, 2016 | Six months ended June 30, 2017 | Year ended December 31, 2016 |
| Class A | | | | |
| Shares sold | 2,907,072 | 6,850,648 | $41,286,036 | $92,442,812 |
| Reinvestment of distributions | 359,733 | 1,039,428 | 5,118,667 | 14,127,179 |
| Shares redeemed | (6,122,725) | (9,382,201) | (86,686,740) | (127,169,706) |
| Net increase (decrease) | (2,855,920) | (1,492,125) | $(40,282,037) | $(20,599,715) |
| Class M | | | | |
| Shares sold | 1,037,180 | 980,582 | $14,596,279 | $13,402,207 |
| Reinvestment of distributions | 138,668 | 320,467 | 1,966,444 | 4,334,814 |
| Shares redeemed | (2,140,089) | (1,649,229) | (30,613,097) | (22,176,771) |
| Net increase (decrease) | (964,241) | (348,180) | $(14,050,374) | $(4,439,750) |
| Class B | | | | |
| Shares sold | – | 2,123 | $– | $28,937 |
| Reinvestment of distributions | – | 4,700 | – | 61,972 |
| Shares redeemed | – | (294,005) | – | (4,010,487) |
| Net increase (decrease) | – | (287,182) | $– | $(3,919,578) |
| Class C | | | | |
| Shares sold | 918,010 | 1,151,875 | $13,166,721 | $15,959,770 |
| Reinvestment of distributions | 143,369 | 340,783 | 2,057,545 | 4,664,662 |
| Shares redeemed | (775,957) | (1,880,112) | (11,110,163) | (25,622,380) |
| Net increase (decrease) | 285,422 | (387,454) | $4,114,103 | $(4,997,948) |
| Class I | | | | |
| Shares sold | 79,401,039 | 110,030,439 | $1,105,752,214 | $1,479,387,095 |
| Reinvestment of distributions | 3,014,711 | 5,904,621 | 42,128,117 | 78,847,213 |
| Shares redeemed | (30,513,730) | (56,118,643) | (424,717,594) | (744,065,402) |
| Net increase (decrease) | 51,902,020 | 59,816,417 | $723,162,737 | $814,168,906 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, one otherwise unaffiliated shareholder was the owner of record of 65% of the total outstanding shares of the Fund.
12. Credit Risk.
The Fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income they generate, as well as the Fund's ability to repatriate such amounts.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2017 to June 30, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | Annualized Expense Ratio-A | Beginning
Account Value
January 1, 2017 | Ending
Account Value
June 30, 2017 | Expenses Paid
During Period-B
January 1, 2017
to June 30, 2017 |
| Class A | 1.14% | | | |
| Actual | | $1,000.00 | $1,064.50 | $5.84 |
| Hypothetical-C | | $1,000.00 | $1,019.14 | $5.71 |
| Class M | 1.17% | | | |
| Actual | | $1,000.00 | $1,064.50 | $5.99 |
| Hypothetical-C | | $1,000.00 | $1,018.99 | $5.86 |
| Class C | 1.90% | | | |
| Actual | | $1,000.00 | $1,061.00 | $9.71 |
| Hypothetical-C | | $1,000.00 | $1,015.37 | $9.49 |
| Class I | .83% | | | |
| Actual | | $1,000.00 | $1,066.90 | $4.25 |
| Hypothetical-C | | $1,000.00 | $1,020.68 | $4.16 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
EMI-SANN-0817
1.705745.119
