UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4008
Fidelity Investment Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | October 31 |
|
|
Date of reporting period: | April 30, 2014 |
This report on Form N-CSR relates solely to the Registrant's Fidelity Canada Fund, Fidelity China Region Fund, Fidelity Emerging Asia Fund, Fidelity Emerging Markets Fund, Fidelity Emerging Markets Discovery Fund, Fidelity Europe Fund, Fidelity Japan Fund, Fidelity Japan Smaller Companies Fund, Fidelity Latin America Fund, Fidelity Nordic Fund, Fidelity Pacific Basin and Fidelity Total Emerging Markets Fund series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
Fidelity Advisor®
Canada Fund -
Class A, Class T, Class B, and Class C
Semiannual Report
April 30, 2014
Class A, Class T, Class B, and Class C are
classes of Fidelity® Canada Fund
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Canada Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.20 | $ 6.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.46 |
Class T | 1.59% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,054.80 | $ 8.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.91 | $ 7.95 |
Class B | 2.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.00 | $ 10.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.40 | $ 10.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.73 | $ 10.14 |
Canada | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,057.80 | $ 5.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.93 | $ 4.91 |
Institutional Class | .97% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.00 | $ 4.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.98 | $ 4.86 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Canada Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Canada | 95.2% |
| |
United States of America* | 4.8% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Canada | 92.8% |
| |
United States of America* | 7.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 96.9 | 99.0 |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1 | 1.0 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Royal Bank of Canada (Banks) | 7.9 | 7.8 |
The Toronto-Dominion Bank (Banks) | 7.8 | 7.4 |
Suncor Energy, Inc. (Oil, Gas & Consumable Fuels) | 4.1 | 4.1 |
Valeant Pharmaceuticals International (Canada) (Pharmaceuticals) | 3.9 | 4.4 |
Bank of Nova Scotia (Banks) | 3.9 | 4.9 |
Canadian National Railway Co. (Road & Rail) | 3.8 | 3.3 |
Canadian Natural Resources Ltd. (Oil, Gas & Consumable Fuels) | 3.7 | 2.0 |
Magna International, Inc. Class A (sub. vtg.) (Auto Components) | 3.0 | 2.6 |
Manulife Financial Corp. (Insurance) | 2.9 | 4.0 |
Enbridge, Inc. (Oil, Gas & Consumable Fuels) | 2.7 | 2.4 |
| 43.7 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 33.1 | 36.2 |
Energy | 25.0 | 18.4 |
Consumer Discretionary | 8.3 | 9.6 |
Industrials | 7.8 | 6.2 |
Materials | 7.6 | 5.9 |
Health Care | 4.5 | 7.0 |
Telecommunication Services | 4.2 | 4.2 |
Consumer Staples | 3.6 | 5.9 |
Information Technology | 2.8 | 5.6 |
Semiannual Report
Fidelity Canada Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 8.3% | |||
Auto Components - 3.0% | |||
Magna International, Inc. Class A (sub. vtg.) | 710,000 | $ 69,558,688 | |
Hotels, Restaurants & Leisure - 0.7% | |||
Starbucks Corp. | 150,000 | 10,593,000 | |
Tim Hortons, Inc. (Canada) | 110,300 | 6,050,122 | |
| 16,643,122 | ||
Household Durables - 0.1% | |||
Brookfield Residential Properties, Inc. (a) | 150,000 | 2,941,500 | |
Media - 1.4% | |||
CBS Corp. Class B | 90,000 | 5,198,400 | |
Cineplex, Inc. | 350,000 | 13,191,460 | |
Corus Entertainment, Inc. Class B (non-vtg.) | 250,000 | 5,615,620 | |
Quebecor, Inc. Class B (sub. vtg.) | 400,000 | 9,433,876 | |
| 33,439,356 | ||
Multiline Retail - 1.7% | |||
Canadian Tire Ltd. Class A (non-vtg.) | 130,000 | 12,768,122 | |
Dollarama, Inc. | 323,467 | 26,903,199 | |
| 39,671,321 | ||
Specialty Retail - 0.3% | |||
AutoCanada, Inc. | 100,000 | 6,386,570 | |
Textiles, Apparel & Luxury Goods - 1.1% | |||
Gildan Activewear, Inc. | 520,195 | 26,592,332 | |
TOTAL CONSUMER DISCRETIONARY | 195,232,889 | ||
CONSUMER STAPLES - 3.6% | |||
Food & Staples Retailing - 3.6% | |||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 1,995,600 | 56,242,036 | |
CVS Caremark Corp. | 100,000 | 7,272,000 | |
Jean Coutu Group, Inc. Class A (sub. vtg.) | 360,000 | 7,255,508 | |
Metro, Inc. Class A (sub. vtg.) | 229,165 | 14,125,621 | |
| 84,895,165 | ||
ENERGY - 25.0% | |||
Energy Equipment & Services - 0.7% | |||
Calfrac Well Services Ltd. (d) | 100,000 | 3,462,433 | |
Pason Systems, Inc. | 50,000 | 1,388,623 | |
Precision Drilling Corp. | 550,000 | 7,150,677 | |
Secure Energy Services, Inc. | 100,000 | 1,793,714 | |
ShawCor Ltd. Class A | 50,000 | 2,227,088 | |
| 16,022,535 | ||
Oil, Gas & Consumable Fuels - 24.3% | |||
ARC Resources Ltd. (d) | 700,000 | 20,769,126 | |
Canadian Natural Resources Ltd. | 2,150,000 | 87,604,580 | |
Cenovus Energy, Inc. | 1,050,000 | 31,278,226 | |
Crescent Point Energy Corp. (d) | 633,400 | 25,768,264 | |
Enbridge, Inc. | 1,287,800 | 62,142,915 | |
| |||
Shares | Value | ||
Encana Corp. | 800,000 | $ 18,532,001 | |
Enerplus Corp. | 150,000 | 3,326,947 | |
Imperial Oil Ltd. | 550,000 | 26,856,439 | |
Inter Pipeline Ltd. | 100,000 | 2,718,854 | |
Keyera Corp. | 302,302 | 20,106,579 | |
Painted Pony Petroleum Ltd. (a) | 50,000 | 516,400 | |
Painted Pony Petroleum Ltd. (a)(e) | 113,000 | 1,167,064 | |
Pembina Pipeline Corp. (d) | 450,000 | 17,683,044 | |
Peyto Exploration & Development Corp. | 600,000 | 22,121,254 | |
Suncor Energy, Inc. | 2,517,600 | 97,116,124 | |
Talisman Energy, Inc. | 500,000 | 5,168,560 | |
Tourmaline Oil Corp. (a) | 550,000 | 28,477,259 | |
Tourmaline Oil Corp. (a)(e) | 80,000 | 4,142,147 | |
TransCanada Corp. | 1,060,000 | 49,399,936 | |
Trilogy Energy Corp. (d) | 100,000 | 2,737,101 | |
Veresen, Inc. | 500,000 | 7,394,736 | |
Vermilion Energy, Inc. (d) | 400,000 | 26,615,574 | |
Whitecap Resources, Inc. | 550,000 | 7,256,056 | |
| 568,899,186 | ||
TOTAL ENERGY | 584,921,721 | ||
FINANCIALS - 33.1% | |||
Banks - 23.4% | |||
Bank of Montreal (d) | 900,000 | 62,036,403 | |
Bank of Nova Scotia | 1,500,000 | 91,145,477 | |
Canadian Imperial Bank of Commerce (d) | 204,600 | 18,241,423 | |
National Bank of Canada | 200,000 | 8,300,716 | |
Royal Bank of Canada (d) | 2,780,000 | 185,536,249 | |
The Toronto-Dominion Bank | 3,807,600 | 183,180,282 | |
| 548,440,550 | ||
Capital Markets - 0.4% | |||
CI Financial Corp. | 300,000 | 9,744,081 | |
Diversified Financial Services - 1.0% | |||
Element Financial Corp. (a) | 300,000 | 3,593,814 | |
Onex Corp. (sub. vtg.) | 350,000 | 19,989,964 | |
| 23,583,778 | ||
Insurance - 5.7% | |||
Industrial Alliance Insurance and Financial Services, Inc. | 100,000 | 4,128,461 | |
Intact Financial Corp. | 210,925 | 13,849,982 | |
Manulife Financial Corp. | 3,600,000 | 67,595,456 | |
Sun Life Financial, Inc. (d) | 1,400,000 | 47,388,349 | |
| 132,962,248 | ||
Real Estate Management & Development - 2.6% | |||
Brookfield Asset Management, Inc. Class A | 1,450,000 | 60,868,117 | |
TOTAL FINANCIALS | 775,598,774 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - 4.5% | |||
Biotechnology - 0.3% | |||
Amgen, Inc. | 60,000 | $ 6,705,000 | |
Health Care Providers & Services - 0.3% | |||
Catamaran Corp. (a) | 156,468 | 5,944,371 | |
Pharmaceuticals - 3.9% | |||
Valeant Pharmaceuticals International (Canada) (a) | 691,471 | 92,467,410 | |
TOTAL HEALTH CARE | 105,116,781 | ||
INDUSTRIALS - 7.8% | |||
Aerospace & Defense - 0.1% | |||
MacDonald Dettwiler & Associates Ltd. | 50,000 | 3,877,560 | |
Airlines - 0.5% | |||
Air Canada Class A (a) | 792,000 | 5,527,850 | |
Delta Air Lines, Inc. | 200,000 | 7,366,000 | |
| 12,893,850 | ||
Machinery - 0.2% | |||
ATS Automation Tooling System, Inc. (a) | 300,000 | 3,886,684 | |
Professional Services - 1.1% | |||
Stantec, Inc. | 430,000 | 25,484,969 | |
Road & Rail - 5.9% | |||
Canadian National Railway Co. | 1,500,000 | 87,860,955 | |
Canadian Pacific Railway Ltd. | 320,000 | 49,965,604 | |
| 137,826,559 | ||
TOTAL INDUSTRIALS | 183,969,622 | ||
INFORMATION TECHNOLOGY - 2.8% | |||
Electronic Equipment & Components - 0.2% | |||
Avigilon Corp. (a) | 140,000 | 3,296,747 | |
Internet Software & Services - 0.0% | |||
Halogen Software, Inc. | 89,500 | 775,740 | |
IT Services - 1.1% | |||
CGI Group, Inc. Class A (sub. vtg.) (a) | 550,800 | 19,860,057 | |
Davis + Henderson Corp. | 180,000 | 5,212,536 | |
| 25,072,593 | ||
Software - 1.5% | |||
Constellation Software, Inc. | 66,600 | 14,750,376 | |
Open Text Corp. | 315,814 | 15,573,876 | |
salesforce.com, Inc. (a) | 100,000 | 5,165,000 | |
| 35,489,252 | ||
TOTAL INFORMATION TECHNOLOGY | 64,634,332 | ||
| |||
Shares | Value | ||
MATERIALS - 7.6% | |||
Chemicals - 1.7% | |||
Methanex Corp. | 350,000 | $ 21,679,212 | |
Potash Corp. of Saskatchewan, Inc. | 500,000 | 18,073,993 | |
| 39,753,205 | ||
Containers & Packaging - 0.9% | |||
CCL Industries, Inc. Class B | 150,000 | 13,638,976 | |
Winpak Ltd. | 290,000 | 7,307,878 | |
| 20,946,854 | ||
Metals & Mining - 4.5% | |||
Agnico Eagle Mines Ltd. (Canada) | 316,000 | 9,332,530 | |
Barrick Gold Corp. | 900,000 | 15,708,225 | |
Eldorado Gold Corp. | 900,000 | 5,485,151 | |
First Quantum Minerals Ltd. | 360,000 | 7,170,111 | |
Franco-Nevada Corp. | 400,000 | 19,280,142 | |
Goldcorp, Inc. | 1,600,000 | 39,516,445 | |
Silver Wheaton Corp. | 400,000 | 8,871,858 | |
| 105,364,462 | ||
Paper & Forest Products - 0.5% | |||
Stella-Jones, Inc. | 150,000 | 4,100,178 | |
West Fraser Timber Co. Ltd. | 200,000 | 8,941,198 | |
| 13,041,376 | ||
TOTAL MATERIALS | 179,105,897 | ||
TELECOMMUNICATION SERVICES - 4.2% | |||
Diversified Telecommunication Services - 3.4% | |||
BCE, Inc. (d) | 1,000,000 | 44,523,516 | |
TELUS Corp. | 1,000,000 | 35,235,619 | |
| 79,759,135 | ||
Wireless Telecommunication Services - 0.8% | |||
Rogers Communications, Inc. Class B (non-vtg.) (d) | 450,000 | 17,871,904 | |
TOTAL TELECOMMUNICATION SERVICES | 97,631,039 | ||
TOTAL COMMON STOCKS (Cost $1,638,733,342) |
| ||
Money Market Funds - 11.5% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 60,396,152 | $ 60,396,152 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 209,524,852 | 209,524,852 | |
TOTAL MONEY MARKET FUNDS (Cost $269,921,004) |
| ||
TOTAL INVESTMENT PORTFOLIO - 108.4% (Cost $1,908,654,346) | 2,541,027,224 | ||
NET OTHER ASSETS (LIABILITIES) - (8.4)% | (196,398,728) | ||
NET ASSETS - 100% | $ 2,344,628,496 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $5,309,211 or 0.2% of net assets. |
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 | $ 25,533 |
Fidelity Securities Lending Cash Central Fund | 1,026,490 |
Total | $ 1,052,023 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Canada Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $200,148,612) - See accompanying schedule: Unaffiliated issuers (cost $1,638,733,342) | $ 2,271,106,220 |
|
Fidelity Central Funds (cost $269,921,004) | 269,921,004 |
|
Total Investments (cost $1,908,654,346) |
| $ 2,541,027,224 |
Foreign currency held at value (cost $1,802,837) | 1,802,057 | |
Receivable for investments sold | 48,189,258 | |
Receivable for fund shares sold | 907,035 | |
Dividends receivable | 2,868,443 | |
Distributions receivable from Fidelity Central Funds | 311,697 | |
Prepaid expenses | 1,011 | |
Other receivables | 3,374 | |
Total assets | 2,595,110,099 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 34,167,399 | |
Payable for fund shares redeemed | 4,836,586 | |
Accrued management fee | 1,352,731 | |
Distribution and service plan fees payable | 70,091 | |
Other affiliated payables | 488,254 | |
Other payables and accrued expenses | 41,690 | |
Collateral on securities loaned, at value | 209,524,852 | |
Total liabilities | 250,481,603 | |
|
|
|
Net Assets | $ 2,344,628,496 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,643,611,700 | |
Undistributed net investment income | 8,743,716 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 59,851,546 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 632,421,534 | |
Net Assets | $ 2,344,628,496 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 60.16 | |
|
|
|
Maximum offering price per share (100/94.25 of $60.16) | $ 63.83 | |
Class T: | $ 59.93 | |
|
|
|
Maximum offering price per share (100/96.50 of $59.93) | $ 62.10 | |
Class B: | $ 59.13 | |
|
|
|
Class C: | $ 58.88 | |
|
|
|
Canada: | $ 60.46 | |
|
|
|
Institutional Class: | $ 60.33 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 27,872,620 |
Income from Fidelity Central Funds |
| 1,052,023 |
Income before foreign taxes withheld |
| 28,924,643 |
Less foreign taxes withheld |
| (4,127,727) |
Total income |
| 24,796,916 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 8,297,977 | |
Performance adjustment | 305,908 | |
Transfer agent fees | 2,458,021 | |
Distribution and service plan fees | 442,161 | |
Accounting and security lending fees | 523,863 | |
Custodian fees and expenses | 17,681 | |
Independent trustees' compensation | 4,748 | |
Registration fees | 70,986 | |
Audit | 37,859 | |
Legal | 6,040 | |
Interest | 305 | |
Miscellaneous | 8,647 | |
Total expenses before reductions | 12,174,196 | |
Expense reductions | (18,668) | 12,155,528 |
Net investment income (loss) | 12,641,388 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 83,205,656 | |
Foreign currency transactions | (276,399) | |
Total net realized gain (loss) |
| 82,929,257 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 35,051,742 | |
Assets and liabilities in foreign currencies | 103,833 | |
Total change in net unrealized appreciation (depreciation) |
| 35,155,575 |
Net gain (loss) | 118,084,832 | |
Net increase (decrease) in net assets resulting from operations | $ 130,726,220 |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,641,388 | $ 38,579,360 |
Net realized gain (loss) | 82,929,257 | 314,796,773 |
Change in net unrealized appreciation (depreciation) | 35,155,575 | (148,474,588) |
Net increase (decrease) in net assets resulting from operations | 130,726,220 | 204,901,545 |
Distributions to shareholders from net investment income | (9,338,915) | (43,693,415) |
Distributions to shareholders from net realized gain | (13,503,099) | - |
Total distributions | (22,842,014) | (43,693,415) |
Share transactions - net increase (decrease) | (250,705,047) | (991,330,828) |
Redemption fees | 49,142 | 153,637 |
Total increase (decrease) in net assets | (142,771,699) | (829,969,061) |
|
|
|
Net Assets | ||
Beginning of period | 2,487,400,195 | 3,317,369,256 |
End of period (including undistributed net investment income of $8,743,716 and undistributed net investment income of $5,441,243, respectively) | $ 2,344,628,496 | $ 2,487,400,195 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.31 | $ 53.65 | $ 52.20 | $ 53.81 | $ 44.24 | $ 38.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .23 | .60 | .57 | .34 | .31 | .38 |
Net realized and unrealized gain (loss) | 2.97 | 3.63 | 1.50 | (1.17) | 9.64 | 5.72 |
Total from investment operations | 3.20 | 4.23 | 2.07 | (.83) | 9.95 | 6.10 |
Distributions from net investment income | (.03) | (.57) | (.33) | (.35) | (.39) | (.07) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.35) | (.57) | (.62) | (.79) | (.39) | (.07) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 60.16 | $ 57.31 | $ 53.65 | $ 52.20 | $ 53.81 | $ 44.24 |
Total Return B, C, D | 5.62% | 7.98% | 4.04% | (1.64)% | 22.62% | 16.08% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.29% A | 1.19% | 1.08% | 1.12% | 1.24% | 1.42% |
Expenses net of fee waivers, if any | 1.29% A | 1.19% | 1.08% | 1.12% | 1.24% | 1.42% |
Expenses net of all reductions | 1.29% A | 1.18% | 1.08% | 1.12% | 1.18% | 1.39% |
Net investment income (loss) | .80% A | 1.11% | 1.11% | .59% | .63% | .98% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 101,383 | $ 116,661 | $ 159,597 | $ 215,369 | $ 170,446 | $ 83,015 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.14 | $ 53.48 | $ 52.01 | $ 53.64 | $ 44.11 | $ 38.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .15 | .45 | .43 | .17 | .18 | .27 |
Net realized and unrealized gain (loss) | 2.96 | 3.63 | 1.49 | (1.16) | 9.60 | 5.73 |
Total from investment operations | 3.11 | 4.08 | 1.92 | (.99) | 9.78 | 6.00 |
Distributions from net investment income | - | (.42) | (.16) | (.21) | (.26) | - |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.32) | (.42) | (.45) | (.65) | (.26) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 59.93 | $ 57.14 | $ 53.48 | $ 52.01 | $ 53.64 | $ 44.11 |
Total Return B, C, D | 5.48% | 7.69% | 3.74% | (1.93)% | 22.27% | 15.77% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.59% A | 1.47% | 1.36% | 1.42% | 1.51% | 1.70% |
Expenses net of fee waivers, if any | 1.59% A | 1.47% | 1.36% | 1.42% | 1.51% | 1.70% |
Expenses net of all reductions | 1.59% A | 1.46% | 1.36% | 1.42% | 1.46% | 1.67% |
Net investment income (loss) | .50% A | .83% | .83% | .30% | .36% | .71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 22,123 | $ 23,751 | $ 29,626 | $ 34,323 | $ 31,522 | $ 17,727 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 56.53 | $ 52.89 | $ 51.37 | $ 53.03 | $ 43.68 | $ 37.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | .18 | .17 | (.11) | (.07) | .08 |
Net realized and unrealized gain (loss) | 2.92 | 3.60 | 1.49 | (1.14) | 9.50 | 5.68 |
Total from investment operations | 2.92 | 3.78 | 1.66 | (1.25) | 9.43 | 5.76 |
Distributions from net investment income | - | (.14) | - | (.01) | (.09) | - |
Distributions from net realized gain | (.32) | - | (.14) | (.41) | - | - |
Total distributions | (.32) | (.14) | (.14) | (.42) | (.09) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 59.13 | $ 56.53 | $ 52.89 | $ 51.37 | $ 53.03 | $ 43.68 |
Total Return B, C, D | 5.20% | 7.17% | 3.25% | (2.41)% | 21.64% | 15.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.08% A | 1.96% | 1.85% | 1.91% | 2.01% | 2.19% |
Expenses net of fee waivers, if any | 2.08% A | 1.96% | 1.85% | 1.91% | 2.01% | 2.19% |
Expenses net of all reductions | 2.08% A | 1.95% | 1.85% | 1.91% | 1.96% | 2.16% |
Net investment income (loss) | .01% A | .34% | .34% | (.20)% | (.14)% | .21% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,076 | $ 7,737 | $ 9,804 | $ 11,866 | $ 13,464 | $ 7,283 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 56.27 | $ 52.61 | $ 51.19 | $ 52.87 | $ 43.60 | $ 37.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .20 | .19 | (.08) | (.06) | .09 |
Net realized and unrealized gain (loss) | 2.91 | 3.58 | 1.46 | (1.14) | 9.48 | 5.66 |
Total from investment operations | 2.93 | 3.78 | 1.65 | (1.22) | 9.42 | 5.75 |
Distributions from net investment income | - | (.12) | - | (.03) | (.16) | - |
Distributions from net realized gain | (.32) | - | (.23) | (.44) | - | - |
Total distributions | (.32) | (.12) | (.23) | (.47) | (.16) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 58.88 | $ 56.27 | $ 52.61 | $ 51.19 | $ 52.87 | $ 43.60 |
Total Return B, C, D | 5.24% | 7.21% | 3.26% | (2.36)% | 21.68% | 15.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.03% A | 1.93% | 1.82% | 1.86% | 1.99% | 2.18% |
Expenses net of fee waivers, if any | 2.03% A | 1.92% | 1.82% | 1.86% | 1.99% | 2.18% |
Expenses net of all reductions | 2.03% A | 1.92% | 1.82% | 1.86% | 1.94% | 2.15% |
Net investment income (loss) | .06% A | .37% | .37% | (.15)% | (.12)% | .22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 41,318 | $ 46,040 | $ 66,500 | $ 87,990 | $ 54,052 | $ 24,848 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Canada
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.72 | $ 54.05 | $ 52.59 | $ 54.14 | $ 44.46 | $ 38.37 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 | .77 | .73 | .52 | .46 | .48 |
Net realized and unrealized gain (loss) | 2.98 | 3.66 | 1.51 | (1.18) | 9.68 | 5.74 |
Total from investment operations | 3.30 | 4.43 | 2.24 | (.66) | 10.14 | 6.22 |
Distributions from net investment income | (.24) | (.76) | (.49) | (.46) | (.47) | (.14) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.56) | (.76) | (.78) | (.90) | (.47) | (.14) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 60.46 | $ 57.72 | $ 54.05 | $ 52.59 | $ 54.14 | $ 44.46 |
Total Return B, C | 5.78% | 8.32% | 4.36% | (1.33)% | 22.97% | 16.40% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .87% | .77% | .82% | .94% | 1.17% |
Expenses net of fee waivers, if any | .98% A | .87% | .77% | .82% | .94% | 1.17% |
Expenses net of all reductions | .98% A | .86% | .77% | .82% | .89% | 1.13% |
Net investment income (loss) | 1.11% A | 1.42% | 1.42% | .90% | .93% | 1.24% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,141,979 | $ 2,262,380 | $ 2,992,597 | $ 3,778,765 | $ 3,953,693 | $ 3,149,791 |
Portfolio turnover rate F | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.57 | $ 53.91 | $ 52.44 | $ 54.02 | $ 44.39 | $ 38.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 | .78 | .74 | .51 | .46 | .49 |
Net realized and unrealized gain (loss) | 2.98 | 3.64 | 1.50 | (1.18) | 9.65 | 5.72 |
Total from investment operations | 3.30 | 4.42 | 2.24 | (.67) | 10.11 | 6.21 |
Distributions from net investment income | (.22) | (.76) | (.48) | (.48) | (.49) | (.14) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.54) | (.76) | (.77) | (.92) | (.49) | (.14) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 60.33 | $ 57.57 | $ 53.91 | $ 52.44 | $ 54.02 | $ 44.39 |
Total Return B, C | 5.80% | 8.34% | 4.38% | (1.35)% | 22.94% | 16.40% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .98% A | .86% | .76% | .82% | .95% | 1.17% |
Expenses net of fee waivers, if any | .97% A | .86% | .76% | .82% | .95% | 1.17% |
Expenses net of all reductions | .97% A | .85% | .76% | .82% | .90% | 1.14% |
Net investment income (loss) | 1.12% A | 1.43% | 1.42% | .89% | .92% | 1.23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 30,749 | $ 30,831 | $ 59,245 | $ 68,112 | $ 46,737 | $ 17,956 |
Portfolio turnover rate F | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Canada Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Canada and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 650,787,111 |
Gross unrealized depreciation | (32,323,414) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 618,463,697 |
|
|
Tax cost | $ 1,922,563,527 |
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 1.50% 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $631,265,482 and $941,439,361, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Canada as compared to its benchmark index, the S&P/TSX Composite Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 134,890 | $ 1,959 |
Class T | .25% | .25% | 56,534 | 1,370 |
Class B | .75% | .25% | 36,332 | 27,347 |
Class C | .75% | .25% | 214,405 | 11,725 |
|
|
| $ 442,161 | $ 42,401 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 6,336 |
Class T | 1,845 |
Class B* | 7,374 |
Class C* | 1,145 |
| $ 16,700 |
* When Class B and 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 140,839 | .26 |
Class T | 34,930 | .31 |
Class B | 10,909 | .30 |
Class C | 53,387 | .25 |
Canada | 2,191,496 | .20 |
Institutional Class | 26,460 | .19 |
| $ 2,458,021 |
|
* 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 $1,883 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 3,978,500 | .29% | $ 259 |
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 $2,229 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $1,026,490. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $2,911,000. The weighted average interest rate was .57%. The interest expense amounted to $46 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $2,622 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $16,046.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 53,142 | $ 1,637,055 |
Class T | - | 220,579 |
Class B | - | 25,159 |
Class C | - | 146,334 |
Canada | 9,173,811 | 40,860,360 |
Institutional Class | 111,962 | 803,928 |
Total | $ 9,338,915 | $ 43,693,415 |
From net realized gain |
|
|
Class A | $ 629,831 | $ - |
Class T | 130,152 | - |
Class B | 42,217 | - |
Class C | 256,584 | - |
Canada | 12,282,929 | - |
Institutional Class | 161,386 | - |
Total | $ 13,503,099 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 55,064 | 215,503 | $ 3,178,417 | $ 11,581,739 |
Reinvestment of distributions | 9,784 | 24,773 | 552,980 | 1,299,341 |
Shares redeemed | (415,276) | (1,179,795) | (23,969,148) | (63,487,281) |
Net increase (decrease) | (350,428) | (939,519) | $ (20,237,751) | $ (50,606,201) |
Class T |
|
|
|
|
Shares sold | 10,393 | 36,303 | $ 597,941 | $ 1,947,020 |
Reinvestment of distributions | 2,264 | 4,099 | 127,592 | 214,911 |
Shares redeemed | (59,115) | (178,697) | (3,395,440) | (9,595,838) |
Net increase (decrease) | (46,458) | (138,295) | $ (2,669,907) | $ (7,433,907) |
Class B |
|
|
|
|
Shares sold | 333 | 567 | $ 18,810 | $ 30,467 |
Reinvestment of distributions | 630 | 400 | 35,107 | 20,851 |
Shares redeemed | (18,164) | (49,457) | (1,034,019) | (2,648,974) |
Net increase (decrease) | (17,201) | (48,490) | $ (980,102) | $ (2,597,656) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class C |
|
|
|
|
Shares sold | 26,212 | 62,908 | $ 1,485,279 | $ 3,346,028 |
Reinvestment of distributions | 3,715 | 2,201 | 206,074 | 114,122 |
Shares redeemed | (146,310) | (510,875) | (8,252,433) | (27,051,390) |
Net increase (decrease) | (116,383) | (445,766) | $ (6,561,080) | $ (23,591,240) |
Canada |
|
|
|
|
Shares sold | 848,295 | 2,375,531 | $ 49,252,098 | $ 128,818,784 |
Reinvestment of distributions | 358,786 | 737,701 | 20,353,959 | 38,862,091 |
Shares redeemed | (4,976,034) | (19,289,279) | (288,483,774) | (1,044,400,607) |
Net increase (decrease) | (3,768,953) | (16,176,047) | $ (218,877,717) | $ (876,719,732) |
Institutional Class |
|
|
|
|
Shares sold | 161,922 | 144,801 | $ 9,458,455 | $ 7,839,112 |
Reinvestment of distributions | 3,804 | 11,985 | 215,319 | 629,694 |
Shares redeemed | (191,546) | (720,255) | (11,052,264) | (38,850,898) |
Net increase (decrease) | (25,820) | (563,469) | $ (1,378,490) | $ (30,382,092) |
12. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
ACAN-USAN-0614
1.843167.106
Fidelity Advisor®
Canada Fund -
Institutional Class
Semiannual Report
April 30, 2014
Institutional Class is a class of
Fidelity® Canada Fund
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Canada Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.20 | $ 6.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.46 |
Class T | 1.59% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,054.80 | $ 8.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.91 | $ 7.95 |
Class B | 2.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.00 | $ 10.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.40 | $ 10.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.73 | $ 10.14 |
Canada | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,057.80 | $ 5.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.93 | $ 4.91 |
Institutional Class | .97% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.00 | $ 4.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.98 | $ 4.86 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Canada Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Canada | 95.2% |
| |
United States of America* | 4.8% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Canada | 92.8% |
| |
United States of America* | 7.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 96.9 | 99.0 |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1 | 1.0 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Royal Bank of Canada (Banks) | 7.9 | 7.8 |
The Toronto-Dominion Bank (Banks) | 7.8 | 7.4 |
Suncor Energy, Inc. (Oil, Gas & Consumable Fuels) | 4.1 | 4.1 |
Valeant Pharmaceuticals International (Canada) (Pharmaceuticals) | 3.9 | 4.4 |
Bank of Nova Scotia (Banks) | 3.9 | 4.9 |
Canadian National Railway Co. (Road & Rail) | 3.8 | 3.3 |
Canadian Natural Resources Ltd. (Oil, Gas & Consumable Fuels) | 3.7 | 2.0 |
Magna International, Inc. Class A (sub. vtg.) (Auto Components) | 3.0 | 2.6 |
Manulife Financial Corp. (Insurance) | 2.9 | 4.0 |
Enbridge, Inc. (Oil, Gas & Consumable Fuels) | 2.7 | 2.4 |
| 43.7 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 33.1 | 36.2 |
Energy | 25.0 | 18.4 |
Consumer Discretionary | 8.3 | 9.6 |
Industrials | 7.8 | 6.2 |
Materials | 7.6 | 5.9 |
Health Care | 4.5 | 7.0 |
Telecommunication Services | 4.2 | 4.2 |
Consumer Staples | 3.6 | 5.9 |
Information Technology | 2.8 | 5.6 |
Semiannual Report
Fidelity Canada Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 8.3% | |||
Auto Components - 3.0% | |||
Magna International, Inc. Class A (sub. vtg.) | 710,000 | $ 69,558,688 | |
Hotels, Restaurants & Leisure - 0.7% | |||
Starbucks Corp. | 150,000 | 10,593,000 | |
Tim Hortons, Inc. (Canada) | 110,300 | 6,050,122 | |
| 16,643,122 | ||
Household Durables - 0.1% | |||
Brookfield Residential Properties, Inc. (a) | 150,000 | 2,941,500 | |
Media - 1.4% | |||
CBS Corp. Class B | 90,000 | 5,198,400 | |
Cineplex, Inc. | 350,000 | 13,191,460 | |
Corus Entertainment, Inc. Class B (non-vtg.) | 250,000 | 5,615,620 | |
Quebecor, Inc. Class B (sub. vtg.) | 400,000 | 9,433,876 | |
| 33,439,356 | ||
Multiline Retail - 1.7% | |||
Canadian Tire Ltd. Class A (non-vtg.) | 130,000 | 12,768,122 | |
Dollarama, Inc. | 323,467 | 26,903,199 | |
| 39,671,321 | ||
Specialty Retail - 0.3% | |||
AutoCanada, Inc. | 100,000 | 6,386,570 | |
Textiles, Apparel & Luxury Goods - 1.1% | |||
Gildan Activewear, Inc. | 520,195 | 26,592,332 | |
TOTAL CONSUMER DISCRETIONARY | 195,232,889 | ||
CONSUMER STAPLES - 3.6% | |||
Food & Staples Retailing - 3.6% | |||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 1,995,600 | 56,242,036 | |
CVS Caremark Corp. | 100,000 | 7,272,000 | |
Jean Coutu Group, Inc. Class A (sub. vtg.) | 360,000 | 7,255,508 | |
Metro, Inc. Class A (sub. vtg.) | 229,165 | 14,125,621 | |
| 84,895,165 | ||
ENERGY - 25.0% | |||
Energy Equipment & Services - 0.7% | |||
Calfrac Well Services Ltd. (d) | 100,000 | 3,462,433 | |
Pason Systems, Inc. | 50,000 | 1,388,623 | |
Precision Drilling Corp. | 550,000 | 7,150,677 | |
Secure Energy Services, Inc. | 100,000 | 1,793,714 | |
ShawCor Ltd. Class A | 50,000 | 2,227,088 | |
| 16,022,535 | ||
Oil, Gas & Consumable Fuels - 24.3% | |||
ARC Resources Ltd. (d) | 700,000 | 20,769,126 | |
Canadian Natural Resources Ltd. | 2,150,000 | 87,604,580 | |
Cenovus Energy, Inc. | 1,050,000 | 31,278,226 | |
Crescent Point Energy Corp. (d) | 633,400 | 25,768,264 | |
Enbridge, Inc. | 1,287,800 | 62,142,915 | |
| |||
Shares | Value | ||
Encana Corp. | 800,000 | $ 18,532,001 | |
Enerplus Corp. | 150,000 | 3,326,947 | |
Imperial Oil Ltd. | 550,000 | 26,856,439 | |
Inter Pipeline Ltd. | 100,000 | 2,718,854 | |
Keyera Corp. | 302,302 | 20,106,579 | |
Painted Pony Petroleum Ltd. (a) | 50,000 | 516,400 | |
Painted Pony Petroleum Ltd. (a)(e) | 113,000 | 1,167,064 | |
Pembina Pipeline Corp. (d) | 450,000 | 17,683,044 | |
Peyto Exploration & Development Corp. | 600,000 | 22,121,254 | |
Suncor Energy, Inc. | 2,517,600 | 97,116,124 | |
Talisman Energy, Inc. | 500,000 | 5,168,560 | |
Tourmaline Oil Corp. (a) | 550,000 | 28,477,259 | |
Tourmaline Oil Corp. (a)(e) | 80,000 | 4,142,147 | |
TransCanada Corp. | 1,060,000 | 49,399,936 | |
Trilogy Energy Corp. (d) | 100,000 | 2,737,101 | |
Veresen, Inc. | 500,000 | 7,394,736 | |
Vermilion Energy, Inc. (d) | 400,000 | 26,615,574 | |
Whitecap Resources, Inc. | 550,000 | 7,256,056 | |
| 568,899,186 | ||
TOTAL ENERGY | 584,921,721 | ||
FINANCIALS - 33.1% | |||
Banks - 23.4% | |||
Bank of Montreal (d) | 900,000 | 62,036,403 | |
Bank of Nova Scotia | 1,500,000 | 91,145,477 | |
Canadian Imperial Bank of Commerce (d) | 204,600 | 18,241,423 | |
National Bank of Canada | 200,000 | 8,300,716 | |
Royal Bank of Canada (d) | 2,780,000 | 185,536,249 | |
The Toronto-Dominion Bank | 3,807,600 | 183,180,282 | |
| 548,440,550 | ||
Capital Markets - 0.4% | |||
CI Financial Corp. | 300,000 | 9,744,081 | |
Diversified Financial Services - 1.0% | |||
Element Financial Corp. (a) | 300,000 | 3,593,814 | |
Onex Corp. (sub. vtg.) | 350,000 | 19,989,964 | |
| 23,583,778 | ||
Insurance - 5.7% | |||
Industrial Alliance Insurance and Financial Services, Inc. | 100,000 | 4,128,461 | |
Intact Financial Corp. | 210,925 | 13,849,982 | |
Manulife Financial Corp. | 3,600,000 | 67,595,456 | |
Sun Life Financial, Inc. (d) | 1,400,000 | 47,388,349 | |
| 132,962,248 | ||
Real Estate Management & Development - 2.6% | |||
Brookfield Asset Management, Inc. Class A | 1,450,000 | 60,868,117 | |
TOTAL FINANCIALS | 775,598,774 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - 4.5% | |||
Biotechnology - 0.3% | |||
Amgen, Inc. | 60,000 | $ 6,705,000 | |
Health Care Providers & Services - 0.3% | |||
Catamaran Corp. (a) | 156,468 | 5,944,371 | |
Pharmaceuticals - 3.9% | |||
Valeant Pharmaceuticals International (Canada) (a) | 691,471 | 92,467,410 | |
TOTAL HEALTH CARE | 105,116,781 | ||
INDUSTRIALS - 7.8% | |||
Aerospace & Defense - 0.1% | |||
MacDonald Dettwiler & Associates Ltd. | 50,000 | 3,877,560 | |
Airlines - 0.5% | |||
Air Canada Class A (a) | 792,000 | 5,527,850 | |
Delta Air Lines, Inc. | 200,000 | 7,366,000 | |
| 12,893,850 | ||
Machinery - 0.2% | |||
ATS Automation Tooling System, Inc. (a) | 300,000 | 3,886,684 | |
Professional Services - 1.1% | |||
Stantec, Inc. | 430,000 | 25,484,969 | |
Road & Rail - 5.9% | |||
Canadian National Railway Co. | 1,500,000 | 87,860,955 | |
Canadian Pacific Railway Ltd. | 320,000 | 49,965,604 | |
| 137,826,559 | ||
TOTAL INDUSTRIALS | 183,969,622 | ||
INFORMATION TECHNOLOGY - 2.8% | |||
Electronic Equipment & Components - 0.2% | |||
Avigilon Corp. (a) | 140,000 | 3,296,747 | |
Internet Software & Services - 0.0% | |||
Halogen Software, Inc. | 89,500 | 775,740 | |
IT Services - 1.1% | |||
CGI Group, Inc. Class A (sub. vtg.) (a) | 550,800 | 19,860,057 | |
Davis + Henderson Corp. | 180,000 | 5,212,536 | |
| 25,072,593 | ||
Software - 1.5% | |||
Constellation Software, Inc. | 66,600 | 14,750,376 | |
Open Text Corp. | 315,814 | 15,573,876 | |
salesforce.com, Inc. (a) | 100,000 | 5,165,000 | |
| 35,489,252 | ||
TOTAL INFORMATION TECHNOLOGY | 64,634,332 | ||
| |||
Shares | Value | ||
MATERIALS - 7.6% | |||
Chemicals - 1.7% | |||
Methanex Corp. | 350,000 | $ 21,679,212 | |
Potash Corp. of Saskatchewan, Inc. | 500,000 | 18,073,993 | |
| 39,753,205 | ||
Containers & Packaging - 0.9% | |||
CCL Industries, Inc. Class B | 150,000 | 13,638,976 | |
Winpak Ltd. | 290,000 | 7,307,878 | |
| 20,946,854 | ||
Metals & Mining - 4.5% | |||
Agnico Eagle Mines Ltd. (Canada) | 316,000 | 9,332,530 | |
Barrick Gold Corp. | 900,000 | 15,708,225 | |
Eldorado Gold Corp. | 900,000 | 5,485,151 | |
First Quantum Minerals Ltd. | 360,000 | 7,170,111 | |
Franco-Nevada Corp. | 400,000 | 19,280,142 | |
Goldcorp, Inc. | 1,600,000 | 39,516,445 | |
Silver Wheaton Corp. | 400,000 | 8,871,858 | |
| 105,364,462 | ||
Paper & Forest Products - 0.5% | |||
Stella-Jones, Inc. | 150,000 | 4,100,178 | |
West Fraser Timber Co. Ltd. | 200,000 | 8,941,198 | |
| 13,041,376 | ||
TOTAL MATERIALS | 179,105,897 | ||
TELECOMMUNICATION SERVICES - 4.2% | |||
Diversified Telecommunication Services - 3.4% | |||
BCE, Inc. (d) | 1,000,000 | 44,523,516 | |
TELUS Corp. | 1,000,000 | 35,235,619 | |
| 79,759,135 | ||
Wireless Telecommunication Services - 0.8% | |||
Rogers Communications, Inc. Class B (non-vtg.) (d) | 450,000 | 17,871,904 | |
TOTAL TELECOMMUNICATION SERVICES | 97,631,039 | ||
TOTAL COMMON STOCKS (Cost $1,638,733,342) |
| ||
Money Market Funds - 11.5% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 60,396,152 | $ 60,396,152 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 209,524,852 | 209,524,852 | |
TOTAL MONEY MARKET FUNDS (Cost $269,921,004) |
| ||
TOTAL INVESTMENT PORTFOLIO - 108.4% (Cost $1,908,654,346) | 2,541,027,224 | ||
NET OTHER ASSETS (LIABILITIES) - (8.4)% | (196,398,728) | ||
NET ASSETS - 100% | $ 2,344,628,496 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $5,309,211 or 0.2% of net assets. |
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 | $ 25,533 |
Fidelity Securities Lending Cash Central Fund | 1,026,490 |
Total | $ 1,052,023 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Canada Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $200,148,612) - See accompanying schedule: Unaffiliated issuers (cost $1,638,733,342) | $ 2,271,106,220 |
|
Fidelity Central Funds (cost $269,921,004) | 269,921,004 |
|
Total Investments (cost $1,908,654,346) |
| $ 2,541,027,224 |
Foreign currency held at value (cost $1,802,837) | 1,802,057 | |
Receivable for investments sold | 48,189,258 | |
Receivable for fund shares sold | 907,035 | |
Dividends receivable | 2,868,443 | |
Distributions receivable from Fidelity Central Funds | 311,697 | |
Prepaid expenses | 1,011 | |
Other receivables | 3,374 | |
Total assets | 2,595,110,099 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 34,167,399 | |
Payable for fund shares redeemed | 4,836,586 | |
Accrued management fee | 1,352,731 | |
Distribution and service plan fees payable | 70,091 | |
Other affiliated payables | 488,254 | |
Other payables and accrued expenses | 41,690 | |
Collateral on securities loaned, at value | 209,524,852 | |
Total liabilities | 250,481,603 | |
|
|
|
Net Assets | $ 2,344,628,496 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,643,611,700 | |
Undistributed net investment income | 8,743,716 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 59,851,546 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 632,421,534 | |
Net Assets | $ 2,344,628,496 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 60.16 | |
|
|
|
Maximum offering price per share (100/94.25 of $60.16) | $ 63.83 | |
Class T: | $ 59.93 | |
|
|
|
Maximum offering price per share (100/96.50 of $59.93) | $ 62.10 | |
Class B: | $ 59.13 | |
|
|
|
Class C: | $ 58.88 | |
|
|
|
Canada: | $ 60.46 | |
|
|
|
Institutional Class: | $ 60.33 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 27,872,620 |
Income from Fidelity Central Funds |
| 1,052,023 |
Income before foreign taxes withheld |
| 28,924,643 |
Less foreign taxes withheld |
| (4,127,727) |
Total income |
| 24,796,916 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 8,297,977 | |
Performance adjustment | 305,908 | |
Transfer agent fees | 2,458,021 | |
Distribution and service plan fees | 442,161 | |
Accounting and security lending fees | 523,863 | |
Custodian fees and expenses | 17,681 | |
Independent trustees' compensation | 4,748 | |
Registration fees | 70,986 | |
Audit | 37,859 | |
Legal | 6,040 | |
Interest | 305 | |
Miscellaneous | 8,647 | |
Total expenses before reductions | 12,174,196 | |
Expense reductions | (18,668) | 12,155,528 |
Net investment income (loss) | 12,641,388 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 83,205,656 | |
Foreign currency transactions | (276,399) | |
Total net realized gain (loss) |
| 82,929,257 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 35,051,742 | |
Assets and liabilities in foreign currencies | 103,833 | |
Total change in net unrealized appreciation (depreciation) |
| 35,155,575 |
Net gain (loss) | 118,084,832 | |
Net increase (decrease) in net assets resulting from operations | $ 130,726,220 |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,641,388 | $ 38,579,360 |
Net realized gain (loss) | 82,929,257 | 314,796,773 |
Change in net unrealized appreciation (depreciation) | 35,155,575 | (148,474,588) |
Net increase (decrease) in net assets resulting from operations | 130,726,220 | 204,901,545 |
Distributions to shareholders from net investment income | (9,338,915) | (43,693,415) |
Distributions to shareholders from net realized gain | (13,503,099) | - |
Total distributions | (22,842,014) | (43,693,415) |
Share transactions - net increase (decrease) | (250,705,047) | (991,330,828) |
Redemption fees | 49,142 | 153,637 |
Total increase (decrease) in net assets | (142,771,699) | (829,969,061) |
|
|
|
Net Assets | ||
Beginning of period | 2,487,400,195 | 3,317,369,256 |
End of period (including undistributed net investment income of $8,743,716 and undistributed net investment income of $5,441,243, respectively) | $ 2,344,628,496 | $ 2,487,400,195 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.31 | $ 53.65 | $ 52.20 | $ 53.81 | $ 44.24 | $ 38.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .23 | .60 | .57 | .34 | .31 | .38 |
Net realized and unrealized gain (loss) | 2.97 | 3.63 | 1.50 | (1.17) | 9.64 | 5.72 |
Total from investment operations | 3.20 | 4.23 | 2.07 | (.83) | 9.95 | 6.10 |
Distributions from net investment income | (.03) | (.57) | (.33) | (.35) | (.39) | (.07) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.35) | (.57) | (.62) | (.79) | (.39) | (.07) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 60.16 | $ 57.31 | $ 53.65 | $ 52.20 | $ 53.81 | $ 44.24 |
Total Return B, C, D | 5.62% | 7.98% | 4.04% | (1.64)% | 22.62% | 16.08% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.29% A | 1.19% | 1.08% | 1.12% | 1.24% | 1.42% |
Expenses net of fee waivers, if any | 1.29% A | 1.19% | 1.08% | 1.12% | 1.24% | 1.42% |
Expenses net of all reductions | 1.29% A | 1.18% | 1.08% | 1.12% | 1.18% | 1.39% |
Net investment income (loss) | .80% A | 1.11% | 1.11% | .59% | .63% | .98% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 101,383 | $ 116,661 | $ 159,597 | $ 215,369 | $ 170,446 | $ 83,015 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.14 | $ 53.48 | $ 52.01 | $ 53.64 | $ 44.11 | $ 38.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .15 | .45 | .43 | .17 | .18 | .27 |
Net realized and unrealized gain (loss) | 2.96 | 3.63 | 1.49 | (1.16) | 9.60 | 5.73 |
Total from investment operations | 3.11 | 4.08 | 1.92 | (.99) | 9.78 | 6.00 |
Distributions from net investment income | - | (.42) | (.16) | (.21) | (.26) | - |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.32) | (.42) | (.45) | (.65) | (.26) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 59.93 | $ 57.14 | $ 53.48 | $ 52.01 | $ 53.64 | $ 44.11 |
Total Return B, C, D | 5.48% | 7.69% | 3.74% | (1.93)% | 22.27% | 15.77% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.59% A | 1.47% | 1.36% | 1.42% | 1.51% | 1.70% |
Expenses net of fee waivers, if any | 1.59% A | 1.47% | 1.36% | 1.42% | 1.51% | 1.70% |
Expenses net of all reductions | 1.59% A | 1.46% | 1.36% | 1.42% | 1.46% | 1.67% |
Net investment income (loss) | .50% A | .83% | .83% | .30% | .36% | .71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 22,123 | $ 23,751 | $ 29,626 | $ 34,323 | $ 31,522 | $ 17,727 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 56.53 | $ 52.89 | $ 51.37 | $ 53.03 | $ 43.68 | $ 37.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | .18 | .17 | (.11) | (.07) | .08 |
Net realized and unrealized gain (loss) | 2.92 | 3.60 | 1.49 | (1.14) | 9.50 | 5.68 |
Total from investment operations | 2.92 | 3.78 | 1.66 | (1.25) | 9.43 | 5.76 |
Distributions from net investment income | - | (.14) | - | (.01) | (.09) | - |
Distributions from net realized gain | (.32) | - | (.14) | (.41) | - | - |
Total distributions | (.32) | (.14) | (.14) | (.42) | (.09) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 59.13 | $ 56.53 | $ 52.89 | $ 51.37 | $ 53.03 | $ 43.68 |
Total Return B, C, D | 5.20% | 7.17% | 3.25% | (2.41)% | 21.64% | 15.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.08% A | 1.96% | 1.85% | 1.91% | 2.01% | 2.19% |
Expenses net of fee waivers, if any | 2.08% A | 1.96% | 1.85% | 1.91% | 2.01% | 2.19% |
Expenses net of all reductions | 2.08% A | 1.95% | 1.85% | 1.91% | 1.96% | 2.16% |
Net investment income (loss) | .01% A | .34% | .34% | (.20)% | (.14)% | .21% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,076 | $ 7,737 | $ 9,804 | $ 11,866 | $ 13,464 | $ 7,283 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 56.27 | $ 52.61 | $ 51.19 | $ 52.87 | $ 43.60 | $ 37.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .20 | .19 | (.08) | (.06) | .09 |
Net realized and unrealized gain (loss) | 2.91 | 3.58 | 1.46 | (1.14) | 9.48 | 5.66 |
Total from investment operations | 2.93 | 3.78 | 1.65 | (1.22) | 9.42 | 5.75 |
Distributions from net investment income | - | (.12) | - | (.03) | (.16) | - |
Distributions from net realized gain | (.32) | - | (.23) | (.44) | - | - |
Total distributions | (.32) | (.12) | (.23) | (.47) | (.16) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 58.88 | $ 56.27 | $ 52.61 | $ 51.19 | $ 52.87 | $ 43.60 |
Total Return B, C, D | 5.24% | 7.21% | 3.26% | (2.36)% | 21.68% | 15.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.03% A | 1.93% | 1.82% | 1.86% | 1.99% | 2.18% |
Expenses net of fee waivers, if any | 2.03% A | 1.92% | 1.82% | 1.86% | 1.99% | 2.18% |
Expenses net of all reductions | 2.03% A | 1.92% | 1.82% | 1.86% | 1.94% | 2.15% |
Net investment income (loss) | .06% A | .37% | .37% | (.15)% | (.12)% | .22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 41,318 | $ 46,040 | $ 66,500 | $ 87,990 | $ 54,052 | $ 24,848 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Canada
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.72 | $ 54.05 | $ 52.59 | $ 54.14 | $ 44.46 | $ 38.37 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 | .77 | .73 | .52 | .46 | .48 |
Net realized and unrealized gain (loss) | 2.98 | 3.66 | 1.51 | (1.18) | 9.68 | 5.74 |
Total from investment operations | 3.30 | 4.43 | 2.24 | (.66) | 10.14 | 6.22 |
Distributions from net investment income | (.24) | (.76) | (.49) | (.46) | (.47) | (.14) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.56) | (.76) | (.78) | (.90) | (.47) | (.14) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 60.46 | $ 57.72 | $ 54.05 | $ 52.59 | $ 54.14 | $ 44.46 |
Total Return B, C | 5.78% | 8.32% | 4.36% | (1.33)% | 22.97% | 16.40% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .87% | .77% | .82% | .94% | 1.17% |
Expenses net of fee waivers, if any | .98% A | .87% | .77% | .82% | .94% | 1.17% |
Expenses net of all reductions | .98% A | .86% | .77% | .82% | .89% | 1.13% |
Net investment income (loss) | 1.11% A | 1.42% | 1.42% | .90% | .93% | 1.24% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,141,979 | $ 2,262,380 | $ 2,992,597 | $ 3,778,765 | $ 3,953,693 | $ 3,149,791 |
Portfolio turnover rate F | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.57 | $ 53.91 | $ 52.44 | $ 54.02 | $ 44.39 | $ 38.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 | .78 | .74 | .51 | .46 | .49 |
Net realized and unrealized gain (loss) | 2.98 | 3.64 | 1.50 | (1.18) | 9.65 | 5.72 |
Total from investment operations | 3.30 | 4.42 | 2.24 | (.67) | 10.11 | 6.21 |
Distributions from net investment income | (.22) | (.76) | (.48) | (.48) | (.49) | (.14) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.54) | (.76) | (.77) | (.92) | (.49) | (.14) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 60.33 | $ 57.57 | $ 53.91 | $ 52.44 | $ 54.02 | $ 44.39 |
Total Return B, C | 5.80% | 8.34% | 4.38% | (1.35)% | 22.94% | 16.40% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .98% A | .86% | .76% | .82% | .95% | 1.17% |
Expenses net of fee waivers, if any | .97% A | .86% | .76% | .82% | .95% | 1.17% |
Expenses net of all reductions | .97% A | .85% | .76% | .82% | .90% | 1.14% |
Net investment income (loss) | 1.12% A | 1.43% | 1.42% | .89% | .92% | 1.23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 30,749 | $ 30,831 | $ 59,245 | $ 68,112 | $ 46,737 | $ 17,956 |
Portfolio turnover rate F | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Canada Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Canada and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 650,787,111 |
Gross unrealized depreciation | (32,323,414) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 618,463,697 |
|
|
Tax cost | $ 1,922,563,527 |
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 1.50% 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $631,265,482 and $941,439,361, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Canada as compared to its benchmark index, the S&P/TSX Composite Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 134,890 | $ 1,959 |
Class T | .25% | .25% | 56,534 | 1,370 |
Class B | .75% | .25% | 36,332 | 27,347 |
Class C | .75% | .25% | 214,405 | 11,725 |
|
|
| $ 442,161 | $ 42,401 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 6,336 |
Class T | 1,845 |
Class B* | 7,374 |
Class C* | 1,145 |
| $ 16,700 |
* When Class B and 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 140,839 | .26 |
Class T | 34,930 | .31 |
Class B | 10,909 | .30 |
Class C | 53,387 | .25 |
Canada | 2,191,496 | .20 |
Institutional Class | 26,460 | .19 |
| $ 2,458,021 |
|
* 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 $1,883 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 3,978,500 | .29% | $ 259 |
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 $2,229 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $1,026,490. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $2,911,000. The weighted average interest rate was .57%. The interest expense amounted to $46 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $2,622 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $16,046.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 53,142 | $ 1,637,055 |
Class T | - | 220,579 |
Class B | - | 25,159 |
Class C | - | 146,334 |
Canada | 9,173,811 | 40,860,360 |
Institutional Class | 111,962 | 803,928 |
Total | $ 9,338,915 | $ 43,693,415 |
From net realized gain |
|
|
Class A | $ 629,831 | $ - |
Class T | 130,152 | - |
Class B | 42,217 | - |
Class C | 256,584 | - |
Canada | 12,282,929 | - |
Institutional Class | 161,386 | - |
Total | $ 13,503,099 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 55,064 | 215,503 | $ 3,178,417 | $ 11,581,739 |
Reinvestment of distributions | 9,784 | 24,773 | 552,980 | 1,299,341 |
Shares redeemed | (415,276) | (1,179,795) | (23,969,148) | (63,487,281) |
Net increase (decrease) | (350,428) | (939,519) | $ (20,237,751) | $ (50,606,201) |
Class T |
|
|
|
|
Shares sold | 10,393 | 36,303 | $ 597,941 | $ 1,947,020 |
Reinvestment of distributions | 2,264 | 4,099 | 127,592 | 214,911 |
Shares redeemed | (59,115) | (178,697) | (3,395,440) | (9,595,838) |
Net increase (decrease) | (46,458) | (138,295) | $ (2,669,907) | $ (7,433,907) |
Class B |
|
|
|
|
Shares sold | 333 | 567 | $ 18,810 | $ 30,467 |
Reinvestment of distributions | 630 | 400 | 35,107 | 20,851 |
Shares redeemed | (18,164) | (49,457) | (1,034,019) | (2,648,974) |
Net increase (decrease) | (17,201) | (48,490) | $ (980,102) | $ (2,597,656) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class C |
|
|
|
|
Shares sold | 26,212 | 62,908 | $ 1,485,279 | $ 3,346,028 |
Reinvestment of distributions | 3,715 | 2,201 | 206,074 | 114,122 |
Shares redeemed | (146,310) | (510,875) | (8,252,433) | (27,051,390) |
Net increase (decrease) | (116,383) | (445,766) | $ (6,561,080) | $ (23,591,240) |
Canada |
|
|
|
|
Shares sold | 848,295 | 2,375,531 | $ 49,252,098 | $ 128,818,784 |
Reinvestment of distributions | 358,786 | 737,701 | 20,353,959 | 38,862,091 |
Shares redeemed | (4,976,034) | (19,289,279) | (288,483,774) | (1,044,400,607) |
Net increase (decrease) | (3,768,953) | (16,176,047) | $ (218,877,717) | $ (876,719,732) |
Institutional Class |
|
|
|
|
Shares sold | 161,922 | 144,801 | $ 9,458,455 | $ 7,839,112 |
Reinvestment of distributions | 3,804 | 11,985 | 215,319 | 629,694 |
Shares redeemed | (191,546) | (720,255) | (11,052,264) | (38,850,898) |
Net increase (decrease) | (25,820) | (563,469) | $ (1,378,490) | $ (30,382,092) |
12. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
ACANI-USAN-0614
1.843160.106
Fidelity Advisor®
China Region Fund -
Class A, Class T, Class B, and Class C
Semiannual Report
April 30, 2014
Class A, Class T, Class B, and Class C are
classes of Fidelity® China Region Fund
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity China Region Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.37% |
|
|
|
Actual |
| $ 1,000.00 | $ 970.20 | $ 6.69 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.00 | $ 6.85 |
Class T | 1.66% |
|
|
|
Actual |
| $ 1,000.00 | $ 968.80 | $ 8.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.56 | $ 8.30 |
Class B | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 966.50 | $ 10.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.28 | $ 10.59 |
Class C | 2.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 966.70 | $ 10.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.43 | $ 10.44 |
China Region | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 972.00 | $ 4.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.74 | $ 5.11 |
Institutional Class | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 972.00 | $ 4.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.89 | $ 4.96 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Fidelity China Region Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Cayman Islands | 33.5% |
| |
China | 23.0% |
| |
Hong Kong | 15.2% |
| |
Taiwan | 13.0% |
| |
Bermuda | 6.5% |
| |
Korea (South) | 3.3% |
| |
Italy | 1.6% |
| |
Japan | 1.2% |
| |
United States of America* | 1.0% |
| |
Other | 1.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Cayman Islands | 24.1% |
| |
China | 20.9% |
| |
Hong Kong | 16.7% |
| |
Taiwan | 14.8% |
| |
Bermuda | 10.6% |
| |
United States of America* | 6.9% |
| |
Japan | 2.1% |
| |
Korea (South) | 1.7% |
| |
Italy | 1.5% |
| |
Other | 0.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 99.5 | 95.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5 | 4.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Tencent Holdings Ltd. (Internet Software & Services) | 8.4 | 6.8 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) | 8.1 | 5.7 |
AIA Group Ltd. (Insurance) | 5.5 | 5.1 |
China Construction Bank Corp. (H Shares) (Banks) | 3.6 | 3.7 |
Industrial & Commercial Bank of China Ltd. (H Shares) (Banks) | 3.5 | 3.7 |
Chongqing Changan Automobile Co. Ltd. (B Shares) (Automobiles) | 3.0 | 3.0 |
China Petroleum & Chemical Corp. (H Shares) (Oil, Gas & Consumable Fuels) | 2.5 | 0.0 |
Sands China Ltd. (Hotels, Restaurants & Leisure) | 2.4 | 1.6 |
China Pacific Insurance Group Co. Ltd. (H Shares) (Insurance) | 1.9 | 1.5 |
Techtronic Industries Co. Ltd. (Household Durables) | 1.8 | 1.3 |
| 40.7 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Information Technology | 27.7 | 24.8 |
Financials | 23.5 | 21.8 |
Consumer Discretionary | 23.2 | 25.7 |
Industrials | 7.1 | 7.6 |
Materials | 4.7 | 3.9 |
Health Care | 4.3 | 3.1 |
Energy | 4.2 | 3.2 |
Utilities | 2.4 | 3.0 |
Telecommunication Services | 1.2 | 1.6 |
Consumer Staples | 1.2 | 0.6 |
Semiannual Report
Fidelity China Region Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 23.2% | |||
Automobiles - 4.3% | |||
Brilliance China Automotive Holdings Ltd. | 11,364,000 | $ 17,559,860 | |
Chongqing Changan Automobile Co. Ltd. (B Shares) | 21,723,686 | 39,227,856 | |
| 56,787,716 | ||
Diversified Consumer Services - 1.4% | |||
Perfect Shape (PRC) Holdings Ltd. (e) | 75,000,000 | 19,057,262 | |
Hotels, Restaurants & Leisure - 8.5% | |||
500 Com Ltd. sponsored ADR Class A (d) | 304,350 | 9,647,895 | |
China Lodging Group Ltd. ADR (a) | 310,000 | 6,878,900 | |
Galaxy Entertainment Group Ltd. | 2,701,000 | 21,199,137 | |
Hotel Shilla Co. | 47,714 | 4,013,500 | |
Melco Crown Entertainment Ltd. sponsored ADR (d) | 473,400 | 16,180,812 | |
Melco International Development Ltd. | 7,009,000 | 21,471,021 | |
Sands China Ltd. | 4,341,800 | 31,697,080 | |
Shangri-La Asia Ltd. | 1,344,600 | 2,216,445 | |
| 113,304,790 | ||
Household Durables - 1.8% | |||
Techtronic Industries Co. Ltd. | 7,728,000 | 24,620,512 | |
Internet & Catalog Retail - 1.8% | |||
Ctrip.com International Ltd. sponsored ADR (a)(d) | 274,916 | 12,849,574 | |
E-Commerce China Dangdang, Inc. ADR (a)(d) | 500,000 | 5,395,000 | |
Qunar Cayman Islands Ltd. sponsored ADR (d) | 237,468 | 5,865,460 | |
| 24,110,034 | ||
Leisure Products - 0.7% | |||
Goodbaby International Holdings Ltd. (d) | 16,000,000 | 8,770,855 | |
Media - 0.4% | |||
CJ E&M Corp. (a) | 125,000 | 6,098,151 | |
Specialty Retail - 1.6% | |||
Baoxin Auto Group Ltd. (d) | 21,494,000 | 16,218,330 | |
Oriental Watch Holdings Ltd. | 23,615,000 | 5,330,390 | |
| 21,548,720 | ||
Textiles, Apparel & Luxury Goods - 2.7% | |||
ECLAT Textile Co. Ltd. | 656,140 | 7,177,942 | |
Prada SpA | 2,676,300 | 21,367,734 | |
Shenzhou International Group Holdings Ltd. | 2,046,000 | 7,046,118 | |
| 35,591,794 | ||
TOTAL CONSUMER DISCRETIONARY | 309,889,834 | ||
CONSUMER STAPLES - 1.2% | |||
Food Products - 1.2% | |||
China Mengniu Dairy Co. Ltd. | 3,000,000 | 15,419,937 | |
| |||
Shares | Value | ||
ENERGY - 4.2% | |||
Oil, Gas & Consumable Fuels - 4.2% | |||
China Petroleum & Chemical Corp. (H Shares) | 37,500,000 | $ 33,290,857 | |
Sinopec Kantons Holdings Ltd. (d) | 24,262,000 | 22,625,486 | |
| 55,916,343 | ||
FINANCIALS - 23.5% | |||
Banks - 7.9% | |||
China Construction Bank Corp. (H Shares) | 69,778,000 | 48,151,001 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 78,024,000 | 46,620,758 | |
Kweichow Moutai Co. Ltd. (A Shares) (BNP Paribas Warrant Program) warrants 7/9/15 (a) | 203,200 | 5,320,108 | |
Wuliangye Yibin Co. Ltd. A (BNP Paribas Warrant Program) warrants 8/7/15 (a) | 1,984,100 | 5,578,880 | |
| 105,670,747 | ||
Capital Markets - 0.9% | |||
Kweichow Moutai Co. Ltd. (A Shares) (UBS Warrant Programme) warrants 7/9/15 (a) | 277,900 | 7,275,876 | |
Shanghai Bestway Marine Engineering Design Co. Ltd. warrants 3/5/17 (a) | 1,767,600 | 4,970,126 | |
| 12,246,002 | ||
Diversified Financial Services - 0.8% | |||
Far East Horizon Ltd. | 16,000,000 | 10,834,586 | |
Insurance - 7.4% | |||
AIA Group Ltd. | 14,982,600 | 72,662,117 | |
China Pacific Insurance Group Co. Ltd. (H Shares) | 7,999,200 | 25,071,819 | |
| 97,733,936 | ||
Real Estate Investment Trusts - 0.5% | |||
Champion (REIT) | 15,000,000 | 7,061,828 | |
Real Estate Management & Development - 6.0% | |||
Great Eagle Holdings Ltd. | 2,150,000 | 7,695,458 | |
Greenland Hong Kong Holdings Ltd. | 15,000,000 | 6,829,658 | |
Hopson Development Holdings Ltd. (a) | 12,266,000 | 11,992,375 | |
Longfor Properties Co. Ltd. | 5,000,000 | 6,462,056 | |
Shimao Property Holdings Ltd. | 6,908,500 | 13,633,527 | |
Sun Hung Kai Properties Ltd. | 1,282,000 | 16,147,054 | |
Sun Hung Kai Properties Ltd. warrants 4/22/16 (a) | 106,833 | 71,930 | |
Wharf Holdings Ltd. | 2,348,000 | 16,429,746 | |
| 79,261,804 | ||
TOTAL FINANCIALS | 312,808,903 | ||
HEALTH CARE - 4.3% | |||
Life Sciences Tools & Services - 0.8% | |||
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 305,700 | 10,393,800 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 3.5% | |||
China Pharmaceutical Group Ltd. | 15,016,000 | $ 12,492,432 | |
Lee's Pharmaceutical Holdings Ltd. | 8,290,000 | 9,302,653 | |
Shanghai Fosun Pharmaceutical (Group) Co. Ltd. Class H | 958,500 | 3,239,115 | |
Sino Biopharmaceutical Ltd. | 12,388,000 | 9,698,909 | |
Tong Ren Tang Technologies Co. Ltd. (H Shares) | 4,351,000 | 12,542,948 | |
| 47,276,057 | ||
TOTAL HEALTH CARE | 57,669,857 | ||
INDUSTRIALS - 7.1% | |||
Commercial Services & Supplies - 0.3% | |||
Cleanaway Co. Ltd. | 818,000 | 4,637,019 | |
Construction & Engineering - 1.6% | |||
China State Construction International Holdings Ltd. | 10,482,000 | 17,494,899 | |
Paul Y. Engineering Group Ltd. (a)(d) | 4,337,500 | 4,307,876 | |
| 21,802,775 | ||
Electrical Equipment - 1.4% | |||
Harbin Electric Machinery Co. Ltd. (H Shares) | 17,000,000 | 9,932,993 | |
Shanghai Electric Group Co. Ltd. (H Shares) | 21,968,000 | 8,613,846 | |
| 18,546,839 | ||
Machinery - 1.2% | |||
Cimc Enric Holdings Ltd. | 4,700,000 | 6,801,798 | |
CSR Corp. Ltd. (H Shares) | 11,689,000 | 8,533,492 | |
| 15,335,290 | ||
Marine - 1.3% | |||
China Shipping Development Co. Ltd. (H Shares) (a)(d) | 31,444,000 | 17,196,365 | |
Trading Companies & Distributors - 1.3% | |||
Shanghai Waigaoqiao Free Trade Zone Development Co. Ltd. (B Shares) | 1,762,725 | 2,963,141 | |
Summit Ascent Holdings Ltd. (a)(d) | 9,272,000 | 13,992,403 | |
| 16,955,544 | ||
TOTAL INDUSTRIALS | 94,473,832 | ||
INFORMATION TECHNOLOGY - 27.7% | |||
Electronic Equipment & Components - 0.3% | |||
Tong Hsing Electronics Industries Ltd. | 666,000 | 3,576,669 | |
Internet Software & Services - 13.3% | |||
Baidu.com, Inc. sponsored ADR (a) | 85,000 | 13,077,250 | |
Naver Corp. | 34,000 | 24,288,065 | |
Qihoo 360 Technology Co. Ltd. ADR (a)(d) | 70,000 | 5,906,600 | |
| |||
Shares | Value | ||
SouFun Holdings Ltd. ADR | 810,000 | $ 9,533,700 | |
Tencent Holdings Ltd. | 1,802,200 | 112,321,508 | |
Yahoo!, Inc. (a) | 200,000 | 7,190,000 | |
Youku Tudou, Inc. ADR (a)(d) | 250,000 | 5,572,500 | |
| 177,889,623 | ||
Semiconductors & Semiconductor Equipment - 11.6% | |||
GCL-Poly Energy Holdings Ltd. (a)(d) | 60,973,000 | 18,245,617 | |
MediaTek, Inc. | 816,000 | 12,767,963 | |
Novatek Microelectronics Corp. | 2,674,000 | 12,365,882 | |
Seoul Semiconductor Co. Ltd. | 100,000 | 4,012,196 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 27,336,796 | 107,531,778 | |
| 154,923,436 | ||
Software - 1.1% | |||
China City Railway Transportation Technology Holdings Co. Ltd. (a) | 16,396,000 | 3,827,802 | |
Kingdee International Software Group Co. Ltd. (a) | 14,768,000 | 4,400,142 | |
WeMade Entertainment Co. Ltd. (a) | 146,519 | 6,367,925 | |
| 14,595,869 | ||
Technology Hardware, Storage & Peripherals - 1.4% | |||
Advantech Co. Ltd. | 2,854,000 | 18,449,222 | |
TOTAL INFORMATION TECHNOLOGY | 369,434,819 | ||
MATERIALS - 4.7% | |||
Chemicals - 0.5% | |||
Taiwan Fertilizer Co. Ltd. | 3,015,000 | 5,996,917 | |
Construction Materials - 2.7% | |||
Anhui Conch Cement Co. Ltd. (H Shares) | 4,372,500 | 16,242,592 | |
Asia Cement (China) Holdings Corp. | 6,409,500 | 4,662,687 | |
BBMG Corp. (H Shares) | 2,708,500 | 1,903,962 | |
China Shanshui Cement Group Ltd. | 35,000,000 | 13,498,088 | |
| 36,307,329 | ||
Containers & Packaging - 0.9% | |||
Greatview Aseptic Pack Co. Ltd. | 19,157,000 | 11,687,501 | |
Paper & Forest Products - 0.6% | |||
Lee & Man Paper Manufacturing Ltd. | 15,012,000 | 8,151,803 | |
TOTAL MATERIALS | 62,143,550 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Wireless Telecommunication Services - 1.2% | |||
SoftBank Corp. | 224,000 | 16,629,921 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - 2.4% | |||
Independent Power Producers & Energy Traders - 2.4% | |||
Beijing Jingneng Clean Energy Co. Ltd. (H Shares) (d) | 27,500,000 | $ 11,811,633 | |
Huadian Fuxin Energy Corp. Ltd. (H Shares) | 43,672,000 | 20,391,288 | |
| 32,202,921 | ||
TOTAL COMMON STOCKS (Cost $1,048,646,060) |
| ||
Money Market Funds - 5.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 10,974,542 | 10,974,542 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 61,273,705 | 61,273,705 | |
TOTAL MONEY MARKET FUNDS (Cost $72,248,247) |
| ||
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $1,120,894,307) | 1,398,838,164 | ||
NET OTHER ASSETS (LIABILITIES) - (4.9)% | (65,749,662) | ||
NET ASSETS - 100% | $ 1,333,088,502 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 16,904 |
Fidelity Securities Lending Cash Central Fund | 193,784 |
Total | $ 210,688 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Perfect Shape (PRC) Holdings Ltd. | $ - | $ 16,961,684 | $ - | $ - | $ 19,057,262 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 309,889,834 | $ 309,889,834 | $ - | $ - |
Consumer Staples | 15,419,937 | 15,419,937 | - | - |
Energy | 55,916,343 | 22,625,486 | 33,290,857 | - |
Financials | 312,808,903 | 243,043,155 | 69,765,748 | - |
Health Care | 57,669,857 | 57,669,857 | - | - |
Industrials | 94,473,832 | 94,473,832 | - | - |
Information Technology | 369,434,819 | 261,903,041 | 107,531,778 | - |
Materials | 62,143,550 | 62,143,550 | - | - |
Telecommunication Services | 16,629,921 | 16,629,921 | - | - |
Utilities | 32,202,921 | 32,202,921 | - | - |
Money Market Funds | 72,248,247 | 72,248,247 | - | - |
Total Investments in Securities: | $ 1,398,838,164 | $ 1,188,249,781 | $ 210,588,383 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 54,645,985 |
Level 2 to Level 1 | $ 23,598,535 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity China Region Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $58,334,624) - See accompanying schedule: Unaffiliated issuers (cost $1,031,684,376) | $ 1,307,532,655 |
|
Fidelity Central Funds (cost $72,248,247) | 72,248,247 |
|
Other affiliated issuers (cost $16,961,684) | 19,057,262 |
|
Total Investments (cost $1,120,894,307) |
| $ 1,398,838,164 |
Foreign currency held at value (cost $244,828) | 245,887 | |
Receivable for investments sold | 15,467,797 | |
Receivable for fund shares sold | 712,507 | |
Dividends receivable | 290,144 | |
Distributions receivable from Fidelity Central Funds | 81,164 | |
Prepaid expenses | 963 | |
Other receivables | 1,405 | |
Total assets | 1,415,638,031 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,140,545 | |
Payable for fund shares redeemed | 1,827,589 | |
Accrued management fee | 814,744 | |
Distribution and service plan fees payable | 14,198 | |
Other affiliated payables | 294,016 | |
Other payables and accrued expenses | 184,732 | |
Collateral on securities loaned, at value | 61,273,705 | |
Total liabilities | 82,549,529 | |
|
|
|
Net Assets | $ 1,333,088,502 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,004,956,352 | |
Accumulated net investment loss | (5,310,768) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 55,492,359 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 277,950,559 | |
Net Assets | $ 1,333,088,502 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 31.15 | |
|
|
|
Maximum offering price per share (100/94.25 of $31.15) | $ 33.05 | |
Class T: | $ 31.05 | |
|
|
|
Maximum offering price per share (100/96.50 of $31.05) | $ 32.18 | |
Class B: | $ 30.90 | |
|
|
|
Class C: | $ 30.69 | |
|
|
|
|
|
|
China Region: | $ 31.40 | |
|
|
|
Institutional Class: | $ 31.28 |
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.
Semiannual Report
Fidelity China Region Fund
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,069,209 |
Income from Fidelity Central Funds (including $193,784 from security lending) |
| 210,688 |
Income before foreign taxes withheld |
| 2,279,897 |
Less foreign taxes withheld |
| (51,048) |
Total income |
| 2,228,849 |
|
|
|
Expenses | ||
Management fee | $ 5,121,368 | |
Transfer agent fees | 1,468,880 | |
Distribution and service plan fees | 86,843 | |
Accounting and security lending fees | 332,878 | |
Custodian fees and expenses | 225,969 | |
Independent trustees' compensation | 2,909 | |
Registration fees | 80,138 | |
Audit | 37,081 | |
Legal | 3,306 | |
Interest | 1,179 | |
Miscellaneous | 193,686 | |
Total expenses before reductions | 7,554,237 | |
Expense reductions | (10,445) | 7,543,792 |
Net investment income (loss) | (5,314,943) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 61,527,361 | |
Foreign currency transactions | (85,766) | |
Total net realized gain (loss) |
| 61,441,595 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (93,888,557) | |
Assets and liabilities in foreign currencies | 11,759 | |
Total change in net unrealized appreciation (depreciation) |
| (93,876,798) |
Net gain (loss) | (32,435,203) | |
Net increase (decrease) in net assets resulting from operations | $ (37,750,146) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (5,314,943) | $ 18,038,729 |
Net realized gain (loss) | 61,441,595 | 182,630,699 |
Change in net unrealized appreciation (depreciation) | (93,876,798) | 120,639,628 |
Net increase (decrease) in net assets resulting from operations | (37,750,146) | 321,309,056 |
Distributions to shareholders from net investment income | (15,459,434) | (19,616,401) |
Distributions to shareholders from net realized gain | (136,131,549) | - |
Total distributions | (151,590,983) | (19,616,401) |
Share transactions - net increase (decrease) | 51,144,231 | (122,395,498) |
Redemption fees | 212,691 | 393,175 |
Total increase (decrease) in net assets | (137,984,207) | 179,690,332 |
|
|
|
Net Assets | ||
Beginning of period | 1,471,072,709 | 1,291,382,377 |
End of period (including accumulated net investment loss of $5,310,768 and undistributed net investment income of $15,463,609, respectively) | $ 1,333,088,502 | $ 1,471,072,709 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.56 | $ 28.53 | $ 27.28 | $ 31.61 | $ 26.47 | $ 16.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.18) | .30 | .36 | .33 | .25 | .30 |
Net realized and unrealized gain (loss) | (.62) | 7.06 | 1.42 | (4.33) | 5.15 | 9.63 |
Total from investment operations | (.80) | 7.36 | 1.78 | (4.00) | 5.40 | 9.93 |
Distributions from net investment income | (.30) | (.34) | (.19) | (.31) | (.20) | (.16) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.61) | (.34) | (.53) | (.34) | (.27) | (.16) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .03 |
Net asset value, end of period | $ 31.15 | $ 35.56 | $ 28.53 | $ 27.28 | $ 31.61 | $ 26.47 |
Total Return B, C, D | (2.98)% | 26.07% | 6.70% | (12.79)% | 20.54% | 60.41% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.37% A | 1.35% | 1.36% | 1.37% | 1.38% | 1.39% |
Expenses net of fee waivers, if any | 1.37% A | 1.35% | 1.36% | 1.37% | 1.38% | 1.39% |
Expenses net of all reductions | 1.37% A | 1.31% | 1.29% | 1.31% | 1.31% | 1.31% |
Net investment income (loss) | (1.06)% A | .94% | 1.35% | 1.07% | .91% | 1.27% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18,566 | $ 20,623 | $ 13,539 | $ 14,808 | $ 16,047 | $ 11,842 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.40 | $ 28.40 | $ 27.13 | $ 31.48 | $ 26.40 | $ 16.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.22) | .21 | .29 | .25 | .18 | .23 |
Net realized and unrealized gain (loss) | (.63) | 7.04 | 1.40 | (4.32) | 5.13 | 9.64 |
Total from investment operations | (.85) | 7.25 | 1.69 | (4.07) | 5.31 | 9.87 |
Distributions from net investment income | (.19) | (.26) | (.08) | (.27) | (.18) | (.14) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.50) | (.26) | (.42) | (.29) J | (.24) K | (.14) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 31.05 | $ 35.40 | $ 28.40 | $ 27.13 | $ 31.48 | $ 26.40 |
Total Return B, C, D | (3.12)% | 25.74% | 6.38% | (13.04)% | 20.27% | 59.92% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.66% A | 1.64% | 1.64% | 1.63% | 1.64% | 1.66% |
Expenses net of fee waivers, if any | 1.66% A | 1.64% | 1.64% | 1.63% | 1.64% | 1.66% |
Expenses net of all reductions | 1.66% A | 1.60% | 1.57% | 1.57% | 1.58% | 1.58% |
Net investment income (loss) | (1.35)% A | .65% | 1.06% | .81% | .64% | 1.00% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,860 | $ 5,965 | $ 4,349 | $ 5,281 | $ 6,070 | $ 3,139 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. J Total distributions of $.29 per share is comprised of distributions from net investment income of $.268 and distributions from net realized gain of $.025 per share. K Total distributions of $.24 per share is comprised of distributions from net investment income of $.177 and distributions from net realized gain of $.065 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.12 | $ 28.16 | $ 26.94 | $ 31.23 | $ 26.28 | $ 16.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.30) | .06 | .16 | .10 | .04 | .12 |
Net realized and unrealized gain (loss) | (.63) | 6.99 | 1.40 | (4.29) | 5.09 | 9.63 |
Total from investment operations | (.93) | 7.05 | 1.56 | (4.19) | 5.13 | 9.75 |
Distributions from net investment income | - | (.10) | - | (.08) | (.12) | (.10) |
Distributions from net realized gain | (3.29) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.29) | (.10) | (.34) | (.11) | (.19) | (.10) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 30.90 | $ 35.12 | $ 28.16 | $ 26.94 | $ 31.23 | $ 26.28 |
Total Return B, C, D | (3.35)% | 25.12% | 5.90% | (13.45)% | 19.63% | 59.16% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of fee waivers, if any | 2.12% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of all reductions | 2.12% A | 2.07% | 2.04% | 2.06% | 2.08% | 2.06% |
Net investment income (loss) | (1.82)% A | .19% | .59% | .32% | .14% | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,204 | $ 1,494 | $ 1,533 | $ 1,801 | $ 2,496 | $ 1,915 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 34.99 | $ 28.07 | $ 26.86 | $ 31.19 | $ 26.25 | $ 16.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.29) | .06 | .16 | .10 | .04 | .12 |
Net realized and unrealized gain (loss) | (.62) | 6.97 | 1.39 | (4.28) | 5.09 | 9.62 |
Total from investment operations | (.91) | 7.03 | 1.55 | (4.18) | 5.13 | 9.74 |
Distributions from net investment income | (.08) | (.12) | - | (.13) | (.13) | (.12) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.39) | (.12) | (.34) | (.16) | (.20) | (.12) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 30.69 | $ 34.99 | $ 28.07 | $ 26.86 | $ 31.19 | $ 26.25 |
Total Return B, C, D | (3.33)% | 25.14% | 5.88% | (13.46)% | 19.66% | 59.18% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.09% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of fee waivers, if any | 2.09% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of all reductions | 2.09% A | 2.07% | 2.04% | 2.06% | 2.07% | 2.07% |
Net investment income (loss) | (1.78)% A | .19% | .59% | .32% | .15% | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,578 | $ 6,957 | $ 4,515 | $ 5,230 | $ 5,938 | $ 3,806 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - China Region
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.83 | $ 28.73 | $ 27.49 | $ 31.81 | $ 26.55 | $ 16.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.12) | .41 | .45 | .44 | .34 | .33 |
Net realized and unrealized gain (loss) | (.62) | 7.11 | 1.42 | (4.37) | 5.18 | 9.68 |
Total from investment operations | (.74) | 7.52 | 1.87 | (3.93) | 5.52 | 10.01 |
Distributions from net investment income | (.38) | (.43) | (.29) | (.38) | (.21) | (.17) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.69) | (.43) | (.63) | (.40) I | (.27) J | (.17) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .01 | .02 |
Net asset value, end of period | $ 31.40 | $ 35.83 | $ 28.73 | $ 27.49 | $ 31.81 | $ 26.55 |
Total Return B, C | (2.80)% | 26.51% | 7.01% | (12.52)% | 20.97% | 60.77% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.02% A | 1.02% | 1.04% | 1.04% | 1.06% | 1.12% |
Expenses net of fee waivers, if any | 1.02% A | 1.02% | 1.04% | 1.04% | 1.06% | 1.12% |
Expenses net of all reductions | 1.02% A | .98% | .98% | .98% | 1.00% | 1.03% |
Net investment income (loss) | (.71)% A | 1.27% | 1.66% | 1.40% | 1.22% | 1.54% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,288,114 | $ 1,425,828 | $ 1,265,488 | $ 1,515,084 | $ 2,130,070 | $ 2,138,141 |
Portfolio turnover rate F | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.40 per share is comprised of distributions from net investment income of $.376 and distributions from net realized gain of $.025 per share. J Total distributions of $.27 per share is comprised of distributions from net investment income of $.209 and distributions from net realized gain of $.065 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.75 | $ 28.68 | $ 27.46 | $ 31.79 | $ 26.55 | $ 16.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.11) | .42 | .45 | .43 | .33 | .37 |
Net realized and unrealized gain (loss) | (.63) | 7.10 | 1.42 | (4.37) | 5.18 | 9.64 |
Total from investment operations | (.74) | 7.52 | 1.87 | (3.94) | 5.51 | 10.01 |
Distributions from net investment income | (.43) | (.46) | (.31) | (.37) | (.22) | (.18) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.73) J | (.46) | (.65) | (.40) | (.28) I | (.18) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .01 | .02 |
Net asset value, end of period | $ 31.28 | $ 35.75 | $ 28.68 | $ 27.46 | $ 31.79 | $ 26.55 |
Total Return B, C | (2.80)% | 26.58% | 7.02% | (12.56)% | 20.92% | 60.78% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .97% | 1.04% | 1.06% | 1.11% | 1.08% |
Expenses net of fee waivers, if any | .99% A | .97% | 1.04% | 1.06% | 1.11% | 1.08% |
Expenses net of all reductions | .99% A | .93% | .98% | 1.01% | 1.04% | 1.00% |
Net investment income (loss) | (.68)% A | 1.32% | 1.66% | 1.38% | 1.18% | 1.58% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 11,767 | $ 10,206 | $ 1,958 | $ 2,034 | $ 1,904 | $ 1,684 |
Portfolio turnover rate F | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.28 per share is comprised of distributions from net investment income of $.216 and distributions from net realized gain of $.065 per share. J Total distributions of $3.73 per share is comprised of distributions from net investment income of $.425 and distributions from net realized gain of $3.306 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® China Region Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, China Region and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 341,869,538 |
Gross unrealized depreciation | (68,233,494) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 273,636,044 |
|
|
Tax cost | $ 1,125,202,120 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $505,493,603 and $547,378,652, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 25,776 | $ 467 |
Class T | .25% | .25% | 15,268 | 145 |
Class B | .75% | .25% | 7,048 | 5,319 |
Class C | .75% | .25% | 38,751 | 11,855 |
|
|
| $ 86,843 | $ 17,786 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 12,453 |
Class T | 2,881 |
Class B* | 2,196 |
Class C* | 625 |
| $ 18,155 |
* When Class B and 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of |
Class A | $ 30,751 | .30 |
Class T | 10,360 | .34 |
Class B | 2,140 | .30 |
Class C | 10,300 | .27 |
China Region | 1,406,737 | .20 |
Institutional Class | 8,592 | .17 |
| $ 1,468,880 |
|
* 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 $2,294 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 14,128,000 | .29% | $ 1,153 |
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 $1,373 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. 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 and includes $2,716 from securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $1,623,000. The weighted average interest rate was .57%. The interest expense amounted to $26 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $10,445.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 180,108 | $ 161,788 |
Class T | 32,344 | 40,503 |
Class B | - | 4,993 |
Class C | 17,191 | 18,782 |
China Region | 15,122,632 | 19,344,002 |
Institutional Class | 107,159 | 46,333 |
Total | $ 15,459,434 | $ 19,616,401 |
From net realized gain |
|
|
Class A | $ 1,978,191 | $ - |
Class T | 554,033 | - |
Class B | 137,166 | - |
Class C | 701,626 | - |
China Region | 131,926,962 | - |
Institutional Class | 833,571 | - |
Total | $ 136,131,549 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 111,013 | 284,743 | $ 3,722,677 | $ 9,232,019 |
Reinvestment of distributions | 60,028 | 5,112 | 2,013,955 | 151,768 |
Shares redeemed | (154,927) | (184,522) | (5,124,654) | (5,803,916) |
Net increase (decrease) | 16,114 | 105,333 | $ 611,978 | $ 3,579,871 |
Class T |
|
|
|
|
Shares sold | 29,085 | 70,191 | $ 964,072 | $ 2,215,632 |
Reinvestment of distributions | 17,176 | 1,321 | 574,877 | 39,167 |
Shares redeemed | (26,030) | (56,116) | (866,500) | (1,759,294) |
Net increase (decrease) | 20,231 | 15,396 | $ 672,449 | $ 495,505 |
Class B |
|
|
|
|
Shares sold | 437 | 6,343 | $ 14,784 | $ 197,892 |
Reinvestment of distributions | 3,586 | 151 | 119,686 | 4,455 |
Shares redeemed | (7,618) | (18,382) | (250,305) | (569,584) |
Net increase (decrease) | (3,595) | (11,888) | $ (115,835) | $ (367,237) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class C |
|
|
|
|
Shares sold | 69,697 | 120,235 | $ 2,320,651 | $ 3,792,024 |
Reinvestment of distributions | 18,485 | 573 | 612,773 | 16,859 |
Shares redeemed | (40,082) | (82,838) | (1,304,397) | (2,577,162) |
Net increase (decrease) | 48,100 | 37,970 | $ 1,629,027 | $ 1,231,721 |
China Region |
|
|
|
|
Shares sold | 3,775,737 | 11,534,725 | $ 127,767,390 | $ 362,586,439 |
Reinvestment of distributions | 4,157,611 | 622,145 | 140,360,926 | 18,558,580 |
Shares redeemed | (6,699,206) | (16,406,195) | (222,736,022) | (515,921,780) |
Net increase (decrease) | 1,234,142 | (4,249,325) | $ 45,392,294 | $ (134,776,761) |
Institutional Class |
|
|
|
|
Shares sold | 283,369 | 333,624 | $ 9,454,844 | $ 11,106,364 |
Reinvestment of distributions | 23,866 | 1,452 | 802,629 | 43,199 |
Shares redeemed | (216,524) | (117,838) | (7,303,155) | (3,708,160) |
Net increase (decrease) | 90,711 | 217,238 | $ 2,954,318 | $ 7,441,403 |
12. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.,
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AHKC-USAN-0614
1.861461.105
Fidelity Advisor®
China Region Fund -
Institutional Class
Semiannual Report
April 30, 2014
Institutional Class is a class of
Fidelity® China Region Fund
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity China Region Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.37% |
|
|
|
Actual |
| $ 1,000.00 | $ 970.20 | $ 6.69 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.00 | $ 6.85 |
Class T | 1.66% |
|
|
|
Actual |
| $ 1,000.00 | $ 968.80 | $ 8.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.56 | $ 8.30 |
Class B | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 966.50 | $ 10.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.28 | $ 10.59 |
Class C | 2.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 966.70 | $ 10.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.43 | $ 10.44 |
China Region | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 972.00 | $ 4.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.74 | $ 5.11 |
Institutional Class | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 972.00 | $ 4.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.89 | $ 4.96 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Fidelity China Region Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Cayman Islands | 33.5% |
| |
China | 23.0% |
| |
Hong Kong | 15.2% |
| |
Taiwan | 13.0% |
| |
Bermuda | 6.5% |
| |
Korea (South) | 3.3% |
| |
Italy | 1.6% |
| |
Japan | 1.2% |
| |
United States of America* | 1.0% |
| |
Other | 1.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Cayman Islands | 24.1% |
| |
China | 20.9% |
| |
Hong Kong | 16.7% |
| |
Taiwan | 14.8% |
| |
Bermuda | 10.6% |
| |
United States of America* | 6.9% |
| |
Japan | 2.1% |
| |
Korea (South) | 1.7% |
| |
Italy | 1.5% |
| |
Other | 0.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 99.5 | 95.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5 | 4.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Tencent Holdings Ltd. (Internet Software & Services) | 8.4 | 6.8 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) | 8.1 | 5.7 |
AIA Group Ltd. (Insurance) | 5.5 | 5.1 |
China Construction Bank Corp. (H Shares) (Banks) | 3.6 | 3.7 |
Industrial & Commercial Bank of China Ltd. (H Shares) (Banks) | 3.5 | 3.7 |
Chongqing Changan Automobile Co. Ltd. (B Shares) (Automobiles) | 3.0 | 3.0 |
China Petroleum & Chemical Corp. (H Shares) (Oil, Gas & Consumable Fuels) | 2.5 | 0.0 |
Sands China Ltd. (Hotels, Restaurants & Leisure) | 2.4 | 1.6 |
China Pacific Insurance Group Co. Ltd. (H Shares) (Insurance) | 1.9 | 1.5 |
Techtronic Industries Co. Ltd. (Household Durables) | 1.8 | 1.3 |
| 40.7 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Information Technology | 27.7 | 24.8 |
Financials | 23.5 | 21.8 |
Consumer Discretionary | 23.2 | 25.7 |
Industrials | 7.1 | 7.6 |
Materials | 4.7 | 3.9 |
Health Care | 4.3 | 3.1 |
Energy | 4.2 | 3.2 |
Utilities | 2.4 | 3.0 |
Telecommunication Services | 1.2 | 1.6 |
Consumer Staples | 1.2 | 0.6 |
Semiannual Report
Fidelity China Region Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 23.2% | |||
Automobiles - 4.3% | |||
Brilliance China Automotive Holdings Ltd. | 11,364,000 | $ 17,559,860 | |
Chongqing Changan Automobile Co. Ltd. (B Shares) | 21,723,686 | 39,227,856 | |
| 56,787,716 | ||
Diversified Consumer Services - 1.4% | |||
Perfect Shape (PRC) Holdings Ltd. (e) | 75,000,000 | 19,057,262 | |
Hotels, Restaurants & Leisure - 8.5% | |||
500 Com Ltd. sponsored ADR Class A (d) | 304,350 | 9,647,895 | |
China Lodging Group Ltd. ADR (a) | 310,000 | 6,878,900 | |
Galaxy Entertainment Group Ltd. | 2,701,000 | 21,199,137 | |
Hotel Shilla Co. | 47,714 | 4,013,500 | |
Melco Crown Entertainment Ltd. sponsored ADR (d) | 473,400 | 16,180,812 | |
Melco International Development Ltd. | 7,009,000 | 21,471,021 | |
Sands China Ltd. | 4,341,800 | 31,697,080 | |
Shangri-La Asia Ltd. | 1,344,600 | 2,216,445 | |
| 113,304,790 | ||
Household Durables - 1.8% | |||
Techtronic Industries Co. Ltd. | 7,728,000 | 24,620,512 | |
Internet & Catalog Retail - 1.8% | |||
Ctrip.com International Ltd. sponsored ADR (a)(d) | 274,916 | 12,849,574 | |
E-Commerce China Dangdang, Inc. ADR (a)(d) | 500,000 | 5,395,000 | |
Qunar Cayman Islands Ltd. sponsored ADR (d) | 237,468 | 5,865,460 | |
| 24,110,034 | ||
Leisure Products - 0.7% | |||
Goodbaby International Holdings Ltd. (d) | 16,000,000 | 8,770,855 | |
Media - 0.4% | |||
CJ E&M Corp. (a) | 125,000 | 6,098,151 | |
Specialty Retail - 1.6% | |||
Baoxin Auto Group Ltd. (d) | 21,494,000 | 16,218,330 | |
Oriental Watch Holdings Ltd. | 23,615,000 | 5,330,390 | |
| 21,548,720 | ||
Textiles, Apparel & Luxury Goods - 2.7% | |||
ECLAT Textile Co. Ltd. | 656,140 | 7,177,942 | |
Prada SpA | 2,676,300 | 21,367,734 | |
Shenzhou International Group Holdings Ltd. | 2,046,000 | 7,046,118 | |
| 35,591,794 | ||
TOTAL CONSUMER DISCRETIONARY | 309,889,834 | ||
CONSUMER STAPLES - 1.2% | |||
Food Products - 1.2% | |||
China Mengniu Dairy Co. Ltd. | 3,000,000 | 15,419,937 | |
| |||
Shares | Value | ||
ENERGY - 4.2% | |||
Oil, Gas & Consumable Fuels - 4.2% | |||
China Petroleum & Chemical Corp. (H Shares) | 37,500,000 | $ 33,290,857 | |
Sinopec Kantons Holdings Ltd. (d) | 24,262,000 | 22,625,486 | |
| 55,916,343 | ||
FINANCIALS - 23.5% | |||
Banks - 7.9% | |||
China Construction Bank Corp. (H Shares) | 69,778,000 | 48,151,001 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 78,024,000 | 46,620,758 | |
Kweichow Moutai Co. Ltd. (A Shares) (BNP Paribas Warrant Program) warrants 7/9/15 (a) | 203,200 | 5,320,108 | |
Wuliangye Yibin Co. Ltd. A (BNP Paribas Warrant Program) warrants 8/7/15 (a) | 1,984,100 | 5,578,880 | |
| 105,670,747 | ||
Capital Markets - 0.9% | |||
Kweichow Moutai Co. Ltd. (A Shares) (UBS Warrant Programme) warrants 7/9/15 (a) | 277,900 | 7,275,876 | |
Shanghai Bestway Marine Engineering Design Co. Ltd. warrants 3/5/17 (a) | 1,767,600 | 4,970,126 | |
| 12,246,002 | ||
Diversified Financial Services - 0.8% | |||
Far East Horizon Ltd. | 16,000,000 | 10,834,586 | |
Insurance - 7.4% | |||
AIA Group Ltd. | 14,982,600 | 72,662,117 | |
China Pacific Insurance Group Co. Ltd. (H Shares) | 7,999,200 | 25,071,819 | |
| 97,733,936 | ||
Real Estate Investment Trusts - 0.5% | |||
Champion (REIT) | 15,000,000 | 7,061,828 | |
Real Estate Management & Development - 6.0% | |||
Great Eagle Holdings Ltd. | 2,150,000 | 7,695,458 | |
Greenland Hong Kong Holdings Ltd. | 15,000,000 | 6,829,658 | |
Hopson Development Holdings Ltd. (a) | 12,266,000 | 11,992,375 | |
Longfor Properties Co. Ltd. | 5,000,000 | 6,462,056 | |
Shimao Property Holdings Ltd. | 6,908,500 | 13,633,527 | |
Sun Hung Kai Properties Ltd. | 1,282,000 | 16,147,054 | |
Sun Hung Kai Properties Ltd. warrants 4/22/16 (a) | 106,833 | 71,930 | |
Wharf Holdings Ltd. | 2,348,000 | 16,429,746 | |
| 79,261,804 | ||
TOTAL FINANCIALS | 312,808,903 | ||
HEALTH CARE - 4.3% | |||
Life Sciences Tools & Services - 0.8% | |||
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 305,700 | 10,393,800 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 3.5% | |||
China Pharmaceutical Group Ltd. | 15,016,000 | $ 12,492,432 | |
Lee's Pharmaceutical Holdings Ltd. | 8,290,000 | 9,302,653 | |
Shanghai Fosun Pharmaceutical (Group) Co. Ltd. Class H | 958,500 | 3,239,115 | |
Sino Biopharmaceutical Ltd. | 12,388,000 | 9,698,909 | |
Tong Ren Tang Technologies Co. Ltd. (H Shares) | 4,351,000 | 12,542,948 | |
| 47,276,057 | ||
TOTAL HEALTH CARE | 57,669,857 | ||
INDUSTRIALS - 7.1% | |||
Commercial Services & Supplies - 0.3% | |||
Cleanaway Co. Ltd. | 818,000 | 4,637,019 | |
Construction & Engineering - 1.6% | |||
China State Construction International Holdings Ltd. | 10,482,000 | 17,494,899 | |
Paul Y. Engineering Group Ltd. (a)(d) | 4,337,500 | 4,307,876 | |
| 21,802,775 | ||
Electrical Equipment - 1.4% | |||
Harbin Electric Machinery Co. Ltd. (H Shares) | 17,000,000 | 9,932,993 | |
Shanghai Electric Group Co. Ltd. (H Shares) | 21,968,000 | 8,613,846 | |
| 18,546,839 | ||
Machinery - 1.2% | |||
Cimc Enric Holdings Ltd. | 4,700,000 | 6,801,798 | |
CSR Corp. Ltd. (H Shares) | 11,689,000 | 8,533,492 | |
| 15,335,290 | ||
Marine - 1.3% | |||
China Shipping Development Co. Ltd. (H Shares) (a)(d) | 31,444,000 | 17,196,365 | |
Trading Companies & Distributors - 1.3% | |||
Shanghai Waigaoqiao Free Trade Zone Development Co. Ltd. (B Shares) | 1,762,725 | 2,963,141 | |
Summit Ascent Holdings Ltd. (a)(d) | 9,272,000 | 13,992,403 | |
| 16,955,544 | ||
TOTAL INDUSTRIALS | 94,473,832 | ||
INFORMATION TECHNOLOGY - 27.7% | |||
Electronic Equipment & Components - 0.3% | |||
Tong Hsing Electronics Industries Ltd. | 666,000 | 3,576,669 | |
Internet Software & Services - 13.3% | |||
Baidu.com, Inc. sponsored ADR (a) | 85,000 | 13,077,250 | |
Naver Corp. | 34,000 | 24,288,065 | |
Qihoo 360 Technology Co. Ltd. ADR (a)(d) | 70,000 | 5,906,600 | |
| |||
Shares | Value | ||
SouFun Holdings Ltd. ADR | 810,000 | $ 9,533,700 | |
Tencent Holdings Ltd. | 1,802,200 | 112,321,508 | |
Yahoo!, Inc. (a) | 200,000 | 7,190,000 | |
Youku Tudou, Inc. ADR (a)(d) | 250,000 | 5,572,500 | |
| 177,889,623 | ||
Semiconductors & Semiconductor Equipment - 11.6% | |||
GCL-Poly Energy Holdings Ltd. (a)(d) | 60,973,000 | 18,245,617 | |
MediaTek, Inc. | 816,000 | 12,767,963 | |
Novatek Microelectronics Corp. | 2,674,000 | 12,365,882 | |
Seoul Semiconductor Co. Ltd. | 100,000 | 4,012,196 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 27,336,796 | 107,531,778 | |
| 154,923,436 | ||
Software - 1.1% | |||
China City Railway Transportation Technology Holdings Co. Ltd. (a) | 16,396,000 | 3,827,802 | |
Kingdee International Software Group Co. Ltd. (a) | 14,768,000 | 4,400,142 | |
WeMade Entertainment Co. Ltd. (a) | 146,519 | 6,367,925 | |
| 14,595,869 | ||
Technology Hardware, Storage & Peripherals - 1.4% | |||
Advantech Co. Ltd. | 2,854,000 | 18,449,222 | |
TOTAL INFORMATION TECHNOLOGY | 369,434,819 | ||
MATERIALS - 4.7% | |||
Chemicals - 0.5% | |||
Taiwan Fertilizer Co. Ltd. | 3,015,000 | 5,996,917 | |
Construction Materials - 2.7% | |||
Anhui Conch Cement Co. Ltd. (H Shares) | 4,372,500 | 16,242,592 | |
Asia Cement (China) Holdings Corp. | 6,409,500 | 4,662,687 | |
BBMG Corp. (H Shares) | 2,708,500 | 1,903,962 | |
China Shanshui Cement Group Ltd. | 35,000,000 | 13,498,088 | |
| 36,307,329 | ||
Containers & Packaging - 0.9% | |||
Greatview Aseptic Pack Co. Ltd. | 19,157,000 | 11,687,501 | |
Paper & Forest Products - 0.6% | |||
Lee & Man Paper Manufacturing Ltd. | 15,012,000 | 8,151,803 | |
TOTAL MATERIALS | 62,143,550 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Wireless Telecommunication Services - 1.2% | |||
SoftBank Corp. | 224,000 | 16,629,921 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - 2.4% | |||
Independent Power Producers & Energy Traders - 2.4% | |||
Beijing Jingneng Clean Energy Co. Ltd. (H Shares) (d) | 27,500,000 | $ 11,811,633 | |
Huadian Fuxin Energy Corp. Ltd. (H Shares) | 43,672,000 | 20,391,288 | |
| 32,202,921 | ||
TOTAL COMMON STOCKS (Cost $1,048,646,060) |
| ||
Money Market Funds - 5.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 10,974,542 | 10,974,542 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 61,273,705 | 61,273,705 | |
TOTAL MONEY MARKET FUNDS (Cost $72,248,247) |
| ||
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $1,120,894,307) | 1,398,838,164 | ||
NET OTHER ASSETS (LIABILITIES) - (4.9)% | (65,749,662) | ||
NET ASSETS - 100% | $ 1,333,088,502 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 16,904 |
Fidelity Securities Lending Cash Central Fund | 193,784 |
Total | $ 210,688 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Perfect Shape (PRC) Holdings Ltd. | $ - | $ 16,961,684 | $ - | $ - | $ 19,057,262 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 309,889,834 | $ 309,889,834 | $ - | $ - |
Consumer Staples | 15,419,937 | 15,419,937 | - | - |
Energy | 55,916,343 | 22,625,486 | 33,290,857 | - |
Financials | 312,808,903 | 243,043,155 | 69,765,748 | - |
Health Care | 57,669,857 | 57,669,857 | - | - |
Industrials | 94,473,832 | 94,473,832 | - | - |
Information Technology | 369,434,819 | 261,903,041 | 107,531,778 | - |
Materials | 62,143,550 | 62,143,550 | - | - |
Telecommunication Services | 16,629,921 | 16,629,921 | - | - |
Utilities | 32,202,921 | 32,202,921 | - | - |
Money Market Funds | 72,248,247 | 72,248,247 | - | - |
Total Investments in Securities: | $ 1,398,838,164 | $ 1,188,249,781 | $ 210,588,383 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 54,645,985 |
Level 2 to Level 1 | $ 23,598,535 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity China Region Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $58,334,624) - See accompanying schedule: Unaffiliated issuers (cost $1,031,684,376) | $ 1,307,532,655 |
|
Fidelity Central Funds (cost $72,248,247) | 72,248,247 |
|
Other affiliated issuers (cost $16,961,684) | 19,057,262 |
|
Total Investments (cost $1,120,894,307) |
| $ 1,398,838,164 |
Foreign currency held at value (cost $244,828) | 245,887 | |
Receivable for investments sold | 15,467,797 | |
Receivable for fund shares sold | 712,507 | |
Dividends receivable | 290,144 | |
Distributions receivable from Fidelity Central Funds | 81,164 | |
Prepaid expenses | 963 | |
Other receivables | 1,405 | |
Total assets | 1,415,638,031 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,140,545 | |
Payable for fund shares redeemed | 1,827,589 | |
Accrued management fee | 814,744 | |
Distribution and service plan fees payable | 14,198 | |
Other affiliated payables | 294,016 | |
Other payables and accrued expenses | 184,732 | |
Collateral on securities loaned, at value | 61,273,705 | |
Total liabilities | 82,549,529 | |
|
|
|
Net Assets | $ 1,333,088,502 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,004,956,352 | |
Accumulated net investment loss | (5,310,768) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 55,492,359 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 277,950,559 | |
Net Assets | $ 1,333,088,502 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 31.15 | |
|
|
|
Maximum offering price per share (100/94.25 of $31.15) | $ 33.05 | |
Class T: | $ 31.05 | |
|
|
|
Maximum offering price per share (100/96.50 of $31.05) | $ 32.18 | |
Class B: | $ 30.90 | |
|
|
|
Class C: | $ 30.69 | |
|
|
|
|
|
|
China Region: | $ 31.40 | |
|
|
|
Institutional Class: | $ 31.28 |
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.
Semiannual Report
Fidelity China Region Fund
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,069,209 |
Income from Fidelity Central Funds (including $193,784 from security lending) |
| 210,688 |
Income before foreign taxes withheld |
| 2,279,897 |
Less foreign taxes withheld |
| (51,048) |
Total income |
| 2,228,849 |
|
|
|
Expenses | ||
Management fee | $ 5,121,368 | |
Transfer agent fees | 1,468,880 | |
Distribution and service plan fees | 86,843 | |
Accounting and security lending fees | 332,878 | |
Custodian fees and expenses | 225,969 | |
Independent trustees' compensation | 2,909 | |
Registration fees | 80,138 | |
Audit | 37,081 | |
Legal | 3,306 | |
Interest | 1,179 | |
Miscellaneous | 193,686 | |
Total expenses before reductions | 7,554,237 | |
Expense reductions | (10,445) | 7,543,792 |
Net investment income (loss) | (5,314,943) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 61,527,361 | |
Foreign currency transactions | (85,766) | |
Total net realized gain (loss) |
| 61,441,595 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (93,888,557) | |
Assets and liabilities in foreign currencies | 11,759 | |
Total change in net unrealized appreciation (depreciation) |
| (93,876,798) |
Net gain (loss) | (32,435,203) | |
Net increase (decrease) in net assets resulting from operations | $ (37,750,146) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (5,314,943) | $ 18,038,729 |
Net realized gain (loss) | 61,441,595 | 182,630,699 |
Change in net unrealized appreciation (depreciation) | (93,876,798) | 120,639,628 |
Net increase (decrease) in net assets resulting from operations | (37,750,146) | 321,309,056 |
Distributions to shareholders from net investment income | (15,459,434) | (19,616,401) |
Distributions to shareholders from net realized gain | (136,131,549) | - |
Total distributions | (151,590,983) | (19,616,401) |
Share transactions - net increase (decrease) | 51,144,231 | (122,395,498) |
Redemption fees | 212,691 | 393,175 |
Total increase (decrease) in net assets | (137,984,207) | 179,690,332 |
|
|
|
Net Assets | ||
Beginning of period | 1,471,072,709 | 1,291,382,377 |
End of period (including accumulated net investment loss of $5,310,768 and undistributed net investment income of $15,463,609, respectively) | $ 1,333,088,502 | $ 1,471,072,709 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
| �� |
Net asset value, beginning of period | $ 35.56 | $ 28.53 | $ 27.28 | $ 31.61 | $ 26.47 | $ 16.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.18) | .30 | .36 | .33 | .25 | .30 |
Net realized and unrealized gain (loss) | (.62) | 7.06 | 1.42 | (4.33) | 5.15 | 9.63 |
Total from investment operations | (.80) | 7.36 | 1.78 | (4.00) | 5.40 | 9.93 |
Distributions from net investment income | (.30) | (.34) | (.19) | (.31) | (.20) | (.16) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.61) | (.34) | (.53) | (.34) | (.27) | (.16) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .03 |
Net asset value, end of period | $ 31.15 | $ 35.56 | $ 28.53 | $ 27.28 | $ 31.61 | $ 26.47 |
Total Return B, C, D | (2.98)% | 26.07% | 6.70% | (12.79)% | 20.54% | 60.41% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.37% A | 1.35% | 1.36% | 1.37% | 1.38% | 1.39% |
Expenses net of fee waivers, if any | 1.37% A | 1.35% | 1.36% | 1.37% | 1.38% | 1.39% |
Expenses net of all reductions | 1.37% A | 1.31% | 1.29% | 1.31% | 1.31% | 1.31% |
Net investment income (loss) | (1.06)% A | .94% | 1.35% | 1.07% | .91% | 1.27% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18,566 | $ 20,623 | $ 13,539 | $ 14,808 | $ 16,047 | $ 11,842 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.40 | $ 28.40 | $ 27.13 | $ 31.48 | $ 26.40 | $ 16.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.22) | .21 | .29 | .25 | .18 | .23 |
Net realized and unrealized gain (loss) | (.63) | 7.04 | 1.40 | (4.32) | 5.13 | 9.64 |
Total from investment operations | (.85) | 7.25 | 1.69 | (4.07) | 5.31 | 9.87 |
Distributions from net investment income | (.19) | (.26) | (.08) | (.27) | (.18) | (.14) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.50) | (.26) | (.42) | (.29) J | (.24) K | (.14) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 31.05 | $ 35.40 | $ 28.40 | $ 27.13 | $ 31.48 | $ 26.40 |
Total Return B, C, D | (3.12)% | 25.74% | 6.38% | (13.04)% | 20.27% | 59.92% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.66% A | 1.64% | 1.64% | 1.63% | 1.64% | 1.66% |
Expenses net of fee waivers, if any | 1.66% A | 1.64% | 1.64% | 1.63% | 1.64% | 1.66% |
Expenses net of all reductions | 1.66% A | 1.60% | 1.57% | 1.57% | 1.58% | 1.58% |
Net investment income (loss) | (1.35)% A | .65% | 1.06% | .81% | .64% | 1.00% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,860 | $ 5,965 | $ 4,349 | $ 5,281 | $ 6,070 | $ 3,139 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. J Total distributions of $.29 per share is comprised of distributions from net investment income of $.268 and distributions from net realized gain of $.025 per share. K Total distributions of $.24 per share is comprised of distributions from net investment income of $.177 and distributions from net realized gain of $.065 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.12 | $ 28.16 | $ 26.94 | $ 31.23 | $ 26.28 | $ 16.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.30) | .06 | .16 | .10 | .04 | .12 |
Net realized and unrealized gain (loss) | (.63) | 6.99 | 1.40 | (4.29) | 5.09 | 9.63 |
Total from investment operations | (.93) | 7.05 | 1.56 | (4.19) | 5.13 | 9.75 |
Distributions from net investment income | - | (.10) | - | (.08) | (.12) | (.10) |
Distributions from net realized gain | (3.29) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.29) | (.10) | (.34) | (.11) | (.19) | (.10) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 30.90 | $ 35.12 | $ 28.16 | $ 26.94 | $ 31.23 | $ 26.28 |
Total Return B, C, D | (3.35)% | 25.12% | 5.90% | (13.45)% | 19.63% | 59.16% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of fee waivers, if any | 2.12% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of all reductions | 2.12% A | 2.07% | 2.04% | 2.06% | 2.08% | 2.06% |
Net investment income (loss) | (1.82)% A | .19% | .59% | .32% | .14% | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,204 | $ 1,494 | $ 1,533 | $ 1,801 | $ 2,496 | $ 1,915 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 34.99 | $ 28.07 | $ 26.86 | $ 31.19 | $ 26.25 | $ 16.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.29) | .06 | .16 | .10 | .04 | .12 |
Net realized and unrealized gain (loss) | (.62) | 6.97 | 1.39 | (4.28) | 5.09 | 9.62 |
Total from investment operations | (.91) | 7.03 | 1.55 | (4.18) | 5.13 | 9.74 |
Distributions from net investment income | (.08) | (.12) | - | (.13) | (.13) | (.12) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.39) | (.12) | (.34) | (.16) | (.20) | (.12) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 30.69 | $ 34.99 | $ 28.07 | $ 26.86 | $ 31.19 | $ 26.25 |
Total Return B, C, D | (3.33)% | 25.14% | 5.88% | (13.46)% | 19.66% | 59.18% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.09% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of fee waivers, if any | 2.09% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of all reductions | 2.09% A | 2.07% | 2.04% | 2.06% | 2.07% | 2.07% |
Net investment income (loss) | (1.78)% A | .19% | .59% | .32% | .15% | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,578 | $ 6,957 | $ 4,515 | $ 5,230 | $ 5,938 | $ 3,806 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - China Region
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.83 | $ 28.73 | $ 27.49 | $ 31.81 | $ 26.55 | $ 16.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.12) | .41 | .45 | .44 | .34 | .33 |
Net realized and unrealized gain (loss) | (.62) | 7.11 | 1.42 | (4.37) | 5.18 | 9.68 |
Total from investment operations | (.74) | 7.52 | 1.87 | (3.93) | 5.52 | 10.01 |
Distributions from net investment income | (.38) | (.43) | (.29) | (.38) | (.21) | (.17) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.69) | (.43) | (.63) | (.40) I | (.27) J | (.17) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .01 | .02 |
Net asset value, end of period | $ 31.40 | $ 35.83 | $ 28.73 | $ 27.49 | $ 31.81 | $ 26.55 |
Total Return B, C | (2.80)% | 26.51% | 7.01% | (12.52)% | 20.97% | 60.77% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.02% A | 1.02% | 1.04% | 1.04% | 1.06% | 1.12% |
Expenses net of fee waivers, if any | 1.02% A | 1.02% | 1.04% | 1.04% | 1.06% | 1.12% |
Expenses net of all reductions | 1.02% A | .98% | .98% | .98% | 1.00% | 1.03% |
Net investment income (loss) | (.71)% A | 1.27% | 1.66% | 1.40% | 1.22% | 1.54% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,288,114 | $ 1,425,828 | $ 1,265,488 | $ 1,515,084 | $ 2,130,070 | $ 2,138,141 |
Portfolio turnover rate F | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.40 per share is comprised of distributions from net investment income of $.376 and distributions from net realized gain of $.025 per share. J Total distributions of $.27 per share is comprised of distributions from net investment income of $.209 and distributions from net realized gain of $.065 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.75 | $ 28.68 | $ 27.46 | $ 31.79 | $ 26.55 | $ 16.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.11) | .42 | .45 | .43 | .33 | .37 |
Net realized and unrealized gain (loss) | (.63) | 7.10 | 1.42 | (4.37) | 5.18 | 9.64 |
Total from investment operations | (.74) | 7.52 | 1.87 | (3.94) | 5.51 | 10.01 |
Distributions from net investment income | (.43) | (.46) | (.31) | (.37) | (.22) | (.18) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.73) J | (.46) | (.65) | (.40) | (.28) I | (.18) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .01 | .02 |
Net asset value, end of period | $ 31.28 | $ 35.75 | $ 28.68 | $ 27.46 | $ 31.79 | $ 26.55 |
Total Return B, C | (2.80)% | 26.58% | 7.02% | (12.56)% | 20.92% | 60.78% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .97% | 1.04% | 1.06% | 1.11% | 1.08% |
Expenses net of fee waivers, if any | .99% A | .97% | 1.04% | 1.06% | 1.11% | 1.08% |
Expenses net of all reductions | .99% A | .93% | .98% | 1.01% | 1.04% | 1.00% |
Net investment income (loss) | (.68)% A | 1.32% | 1.66% | 1.38% | 1.18% | 1.58% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 11,767 | $ 10,206 | $ 1,958 | $ 2,034 | $ 1,904 | $ 1,684 |
Portfolio turnover rate F | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.28 per share is comprised of distributions from net investment income of $.216 and distributions from net realized gain of $.065 per share. J Total distributions of $3.73 per share is comprised of distributions from net investment income of $.425 and distributions from net realized gain of $3.306 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® China Region Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, China Region and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 341,869,538 |
Gross unrealized depreciation | (68,233,494) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 273,636,044 |
|
|
Tax cost | $ 1,125,202,120 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $505,493,603 and $547,378,652, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 25,776 | $ 467 |
Class T | .25% | .25% | 15,268 | 145 |
Class B | .75% | .25% | 7,048 | 5,319 |
Class C | .75% | .25% | 38,751 | 11,855 |
|
|
| $ 86,843 | $ 17,786 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 12,453 |
Class T | 2,881 |
Class B* | 2,196 |
Class C* | 625 |
| $ 18,155 |
* When Class B and 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of |
Class A | $ 30,751 | .30 |
Class T | 10,360 | .34 |
Class B | 2,140 | .30 |
Class C | 10,300 | .27 |
China Region | 1,406,737 | .20 |
Institutional Class | 8,592 | .17 |
| $ 1,468,880 |
|
* 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 $2,294 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 14,128,000 | .29% | $ 1,153 |
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 $1,373 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. 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 and includes $2,716 from securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $1,623,000. The weighted average interest rate was .57%. The interest expense amounted to $26 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $10,445.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 180,108 | $ 161,788 |
Class T | 32,344 | 40,503 |
Class B | - | 4,993 |
Class C | 17,191 | 18,782 |
China Region | 15,122,632 | 19,344,002 |
Institutional Class | 107,159 | 46,333 |
Total | $ 15,459,434 | $ 19,616,401 |
From net realized gain |
|
|
Class A | $ 1,978,191 | $ - |
Class T | 554,033 | - |
Class B | 137,166 | - |
Class C | 701,626 | - |
China Region | 131,926,962 | - |
Institutional Class | 833,571 | - |
Total | $ 136,131,549 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 111,013 | 284,743 | $ 3,722,677 | $ 9,232,019 |
Reinvestment of distributions | 60,028 | 5,112 | 2,013,955 | 151,768 |
Shares redeemed | (154,927) | (184,522) | (5,124,654) | (5,803,916) |
Net increase (decrease) | 16,114 | 105,333 | $ 611,978 | $ 3,579,871 |
Class T |
|
|
|
|
Shares sold | 29,085 | 70,191 | $ 964,072 | $ 2,215,632 |
Reinvestment of distributions | 17,176 | 1,321 | 574,877 | 39,167 |
Shares redeemed | (26,030) | (56,116) | (866,500) | (1,759,294) |
Net increase (decrease) | 20,231 | 15,396 | $ 672,449 | $ 495,505 |
Class B |
|
|
|
|
Shares sold | 437 | 6,343 | $ 14,784 | $ 197,892 |
Reinvestment of distributions | 3,586 | 151 | 119,686 | 4,455 |
Shares redeemed | (7,618) | (18,382) | (250,305) | (569,584) |
Net increase (decrease) | (3,595) | (11,888) | $ (115,835) | $ (367,237) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class C |
|
|
|
|
Shares sold | 69,697 | 120,235 | $ 2,320,651 | $ 3,792,024 |
Reinvestment of distributions | 18,485 | 573 | 612,773 | 16,859 |
Shares redeemed | (40,082) | (82,838) | (1,304,397) | (2,577,162) |
Net increase (decrease) | 48,100 | 37,970 | $ 1,629,027 | $ 1,231,721 |
China Region |
|
|
|
|
Shares sold | 3,775,737 | 11,534,725 | $ 127,767,390 | $ 362,586,439 |
Reinvestment of distributions | 4,157,611 | 622,145 | 140,360,926 | 18,558,580 |
Shares redeemed | (6,699,206) | (16,406,195) | (222,736,022) | (515,921,780) |
Net increase (decrease) | 1,234,142 | (4,249,325) | $ 45,392,294 | $ (134,776,761) |
Institutional Class |
|
|
|
|
Shares sold | 283,369 | 333,624 | $ 9,454,844 | $ 11,106,364 |
Reinvestment of distributions | 23,866 | 1,452 | 802,629 | 43,199 |
Shares redeemed | (216,524) | (117,838) | (7,303,155) | (3,708,160) |
Net increase (decrease) | 90,711 | 217,238 | $ 2,954,318 | $ 7,441,403 |
12. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.,
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AHKCI-USAN-0614
1.861453.105
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets Discovery
Fund - Class A, Class T,
and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Class A, Class T, and
Class C are classes of
Fidelity® Emerging
Markets Discovery Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.70% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.50 | $ 8.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class T | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 976.60 | $ 9.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Class C | 2.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 974.20 | $ 11.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,012.65 | $ 12.23 |
Emerging Markets Discovery | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 978.90 | $ 7.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Institutional Class | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 979.00 | $ 7.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.60 | $ 7.25 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Unified-President Enterprises Corp. (Taiwan, Food Products) | 1.8 | 1.4 |
KEPCO Plant Service & Engineering Co. Ltd. (Korea (South), Commercial Services & Supplies) | 1.7 | 1.3 |
Yue Yuen Industrial (Holdings) Ltd. (Bermuda, Textiles, Apparel & Luxury Goods) | 1.7 | 1.2 |
Compania Cervecerias Unidas SA sponsored ADR (Chile, Beverages) | 1.7 | 1.4 |
LG Household & Health Care Ltd. (Korea (South), Household Products) | 1.6 | 1.4 |
| 8.5 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Industrials | 20.6 | 19.2 |
Consumer Discretionary | 16.8 | 15.1 |
Financials | 15.9 | 25.8 |
Consumer Staples | 14.2 | 16.9 |
Information Technology | 13.4 | 5.0 |
Top Five Countries as of April 30, 2014 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
India | 20.3 | 13.3 |
Taiwan | 16.6 | 11.8 |
Korea (South) | 14.8 | 9.9 |
Cayman Islands | 10.7 | 6.9 |
Bermuda | 5.8 | 6.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
Stocks 97.9% |
| Stocks 97.3% |
| ||||
Short-Term |
| Short-Term |
|
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value | ||
Bermuda - 5.8% | |||
Man Wah Holdings Ltd. | 264,400 | $ 433,110 | |
Texwinca Holdings Ltd. | 1,198,000 | 1,287,167 | |
Vtech Holdings Ltd. | 45,600 | 629,335 | |
Wilson Sons Ltd. unit | 81,055 | 1,181,427 | |
Yue Yuen Industrial (Holdings) Ltd. | 459,000 | 1,417,918 | |
TOTAL BERMUDA | 4,948,957 | ||
Brazil - 2.4% | |||
BHG SA (Brazil Hospitality Group) (a) | 77,400 | 482,503 | |
Fleury SA | 131,200 | 880,257 | |
Terna Participacoes SA unit | 71,800 | 642,408 | |
TOTAL BRAZIL | 2,005,168 | ||
Cayman Islands - 10.7% | |||
51job, Inc. sponsored ADR (a) | 9,300 | 627,192 | |
ENN Energy Holdings Ltd. | 122,000 | 852,888 | |
Ginko International Co. Ltd. | 30,000 | 504,218 | |
Goodbaby International Holdings Ltd. | 1,076,000 | 589,840 | |
Gourmet Master Co. Ltd. | 161,000 | 1,304,951 | |
Greatview Aseptic Pack Co. Ltd. | 1,284,000 | 783,356 | |
Hilong Holding Ltd. | 629,000 | 327,767 | |
Lifestyle International Holdings Ltd. | 338,000 | 661,792 | |
Mindray Medical International Ltd. sponsored ADR (d) | 16,100 | 532,266 | |
NetEase.com, Inc. sponsored ADR | 7,000 | 476,630 | |
Samson Holding Ltd. | 5,972,000 | 785,693 | |
Silergy Corp. | 48,000 | 397,805 | |
SITC International Holdings Co. Ltd. | 893,000 | 393,922 | |
Springland International Holdings Ltd. | 770,000 | 302,917 | |
Tao Heung Holdings Ltd. | 885,000 | 567,326 | |
TOTAL CAYMAN ISLANDS | 9,108,563 | ||
Chile - 5.4% | |||
Aguas Andinas SA | 1,421,003 | 876,645 | |
Compania Cervecerias Unidas SA sponsored ADR | 59,807 | 1,409,651 | |
Embotelladora Andina SA sponsored ADR | 31,353 | 759,370 | |
Inversiones La Construccion SA | 41,951 | 552,031 | |
Quinenco SA | 445,380 | 986,655 | |
TOTAL CHILE | 4,584,352 | ||
China - 1.8% | |||
China Communications Services Corp. Ltd. (H Shares) | 1,172,000 | 594,091 | |
Common Stocks - continued | |||
Shares | Value | ||
China - continued | |||
Shandong Weigao Medical Polymer Co. Ltd. (H Shares) | 464,000 | $ 466,816 | |
Tong Ren Tang Technologies Co. Ltd. (H Shares) | 165,000 | 475,658 | |
TOTAL CHINA | 1,536,565 | ||
Hong Kong - 1.2% | |||
Far East Horizon Ltd. | 800,000 | 541,729 | |
Techtronic Industries Co. Ltd. | 161,000 | 512,927 | |
TOTAL HONG KONG | 1,054,656 | ||
India - 20.3% | |||
CMC Ltd. | 26,650 | 633,211 | |
Container Corp. of India Ltd. | 64,655 | 1,045,387 | |
Credit Analysis & Research Ltd. (a) | 70,384 | 918,849 | |
Exide Industries Ltd. | 349,293 | 693,490 | |
Grasim Industries Ltd. | 15,437 | 681,938 | |
Havells India Ltd. | 45,271 | 699,087 | |
Hindalco Industries Ltd. | 287,589 | 640,358 | |
IDFC Ltd. | 500,814 | 946,533 | |
Iifl Holdings Ltd. | 330,979 | 438,726 | |
IL&FS Transportation Networks Ltd. | 319,199 | 699,893 | |
IL&FS Transportation Networks Ltd. rights (a) | 86,184 | 46,082 | |
Indian Hotels Co. Ltd. | 458,814 | 547,321 | |
Ipca Laboratories Ltd. | 44,957 | 639,642 | |
Jain Irrigation Systems Ltd. (a) | 542,770 | 735,212 | |
KPIT Cummins Infosystems Ltd. (a) | 216,721 | 620,717 | |
Lupin Ltd. | 41,649 | 710,677 | |
Mahindra Lifespace Developers Ltd. | 54,660 | 359,370 | |
Max India Ltd. | 192,492 | 682,012 | |
Prestige Estates Projects Ltd. | 323,670 | 912,544 | |
Punjab National Bank | 85,796 | 1,145,004 | |
Shriram Transport Finance Co. Ltd. | 77,148 | 939,872 | |
Tech Mahindra Ltd. (a) | 33,674 | 1,022,893 | |
Thermax Ltd. (a) | 52,384 | 637,701 | |
Tube Investments of India Ltd. | 260,671 | 822,876 | |
TOTAL INDIA | 17,219,395 | ||
Indonesia - 2.3% | |||
PT Astra Graphia Tbk | 4,757,900 | 823,059 | |
PT Hero Supermarket Tbk (a) | 2,541,300 | 573,697 | |
PT Tempo Scan Pacific Tbk | 2,155,200 | 540,594 | |
TOTAL INDONESIA | 1,937,350 | ||
Common Stocks - continued | |||
Shares | Value | ||
Israel - 0.6% | |||
NICE Systems Ltd. sponsored ADR | 11,400 | $ 492,480 | |
Kenya - 0.7% | |||
East African Breweries Ltd. | 167,900 | 565,391 | |
Korea (South) - 14.8% | |||
Binggrea Co. Ltd. | 8,634 | 785,593 | |
Daou Technology, Inc. | 33,160 | 462,205 | |
DGB Financial Group Co. Ltd. | 57,250 | 867,256 | |
DuzonBizon Co. Ltd. | 50,610 | 597,659 | |
E-Mart Co. Ltd. | 4,723 | 1,078,916 | |
JVM Co. Ltd. (a) | 14,966 | 789,514 | |
Kiwoom Securities Co. Ltd. | 16,991 | 833,843 | |
Korea Electric Terminal Co. Ltd. | 11,880 | 500,223 | |
KEPCO Plant Service & Engineering Co. Ltd. | 22,758 | 1,480,338 | |
KT Corp. | 19,470 | 620,709 | |
Leeno Industrial, Inc. | 18,759 | 540,200 | |
LG Corp. | 7,380 | 410,754 | |
LG Household & Health Care Ltd. | 3,016 | 1,377,942 | |
Samsung Fire & Marine Insurance Co. Ltd. | 2,907 | 689,396 | |
Shinsegae Food Co. Ltd. | 9,753 | 776,955 | |
TK Corp. (a) | 40,749 | 802,674 | |
TOTAL KOREA (SOUTH) | 12,614,177 | ||
Malaysia - 2.6% | |||
Oldtown Bhd | 1,261,375 | 804,187 | |
Top Glove Corp. Bhd | 342,400 | 503,761 | |
YTL Corp. Bhd | 1,816,700 | 896,517 | |
TOTAL MALAYSIA | 2,204,465 | ||
Mexico - 3.2% | |||
Banregio Grupo Financiero S.A.B. de CV | 134,400 | 776,747 | |
Bolsa Mexicana de Valores S.A.B. de CV | 345,400 | 708,608 | |
Consorcio ARA S.A.B. de CV (a) | 1,171,400 | 514,842 | |
Megacable Holdings S.A.B. de CV unit | 174,600 | 692,514 | |
TOTAL MEXICO | 2,692,711 | ||
Philippines - 1.0% | |||
Security Bank Corp. | 306,448 | 825,674 | |
Poland - 0.6% | |||
Telekomunikacja Polska SA | 158,100 | 539,942 | |
Russia - 0.8% | |||
Synergy Co. (a) | 42,951 | 695,535 | |
Common Stocks - continued | |||
Shares | Value | ||
Singapore - 0.6% | |||
Goodpack Ltd. | 274,000 | $ 524,527 | |
South Africa - 3.7% | |||
Adcorp Holdings Ltd. | 215,400 | 656,142 | |
African Bank Investments Ltd. | 589,315 | 698,518 | |
Astral Foods Ltd. | 124,100 | 1,126,520 | |
Zeder Investments Ltd. | 1,655,964 | 689,428 | |
TOTAL SOUTH AFRICA | 3,170,608 | ||
Sri Lanka - 0.7% | |||
John Keells Holdings Ltd. | 334,083 | 608,633 | |
Taiwan - 16.6% | |||
ASPEED Tech, Inc. | 56,000 | 484,527 | |
Chicony Electronics Co. Ltd. | 209,000 | 543,883 | |
China Life Insurance Co. Ltd. | 745,000 | 652,003 | |
Chroma ATE, Inc. | 415,000 | 1,068,953 | |
Cleanaway Co. Ltd. | 138,000 | 782,284 | |
CTCI Corp. | 454,000 | 725,425 | |
Edison Opto Corp. | 360,000 | 427,840 | |
EPISTAR Corp. | 244,000 | 533,046 | |
Everlight Electronics Co. Ltd. | 201,000 | 470,425 | |
Formosa Optical Technology Co. Ltd. | 191,000 | 652,169 | |
GeoVision, Inc. | 83,000 | 451,244 | |
Kd Holding Corp. | 130,000 | 754,173 | |
King Slide Works Co. Ltd. | 42,000 | 547,181 | |
Lextar Electronics Corp. | 418,000 | 408,085 | |
MJC Probe, Inc. | 299,000 | 733,487 | |
Pacific Hospital Supply Co. Ltd. | 305,700 | 790,459 | |
President Chain Store Corp. | 118,000 | 878,189 | |
St.Shine Optical Co. Ltd. | 23,000 | 487,212 | |
Transcend Information, Inc. | 136,000 | 449,043 | |
Unified-President Enterprises Corp. | 898,803 | 1,522,560 | |
Wowprime Corp. | 49,500 | 746,631 | |
TOTAL TAIWAN | 14,108,819 | ||
Thailand - 1.2% | |||
Erawan Group Public Co. Ltd. (The) | 4,209,800 | 496,954 | |
Thai Union Frozen Products PCL (For. Reg.) | 232,600 | 503,152 | |
TOTAL THAILAND | 1,000,106 | ||
Common Stocks - continued | |||
Shares | Value | ||
Turkey - 0.9% | |||
Enka Insaat ve Sanayi A/S | 253,057 | $ 767,003 | |
TOTAL COMMON STOCKS (Cost $80,778,963) |
| ||
Money Market Funds - 3.3% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 2,392,514 | 2,392,514 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 405,350 | 405,350 | |
TOTAL MONEY MARKET FUNDS (Cost $2,797,864) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $83,576,827) | 86,002,941 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (1,055,249) | ||
NET ASSETS - 100% | $ 84,947,692 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 601 |
Fidelity Securities Lending Cash Central Fund | 19,591 |
Total | $ 20,192 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 14,289,896 | $ 14,289,896 | $ - | $ - |
Consumer Staples | 12,080,703 | 12,080,703 | - | - |
Energy | 327,767 | 327,767 | - | - |
Financials | 13,496,131 | 11,404,594 | 2,091,537 | - |
Health Care | 6,531,560 | 5,181,241 | 1,350,319 | - |
Industrials | 17,381,973 | 16,290,504 | 1,091,469 | - |
Information Technology | 11,443,668 | 11,443,668 | - | - |
Materials | 2,630,179 | 1,948,241 | 681,938 | - |
Telecommunication Services | 1,754,742 | 1,134,033 | 620,709 | - |
Utilities | 3,268,458 | 3,268,458 | - | - |
Money Market Funds | 2,797,864 | 2,797,864 | - | - |
Total Investments in Securities: | $ 86,002,941 | $ 80,166,969 | $ 5,835,972 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 2,049,966 |
Level 2 to Level 1 | $ 0 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $400,026) - See accompanying schedule: Unaffiliated issuers (cost $80,778,963) | $ 83,205,077 |
|
Fidelity Central Funds (cost $2,797,864) | 2,797,864 |
|
Total Investments (cost $83,576,827) |
| $ 86,002,941 |
Receivable for investments sold | 119,928 | |
Receivable for fund shares sold | 177,957 | |
Dividends receivable | 191,106 | |
Distributions receivable from Fidelity Central Funds | 3,061 | |
Prepaid expenses | 142 | |
Other receivables | 8,551 | |
Total assets | 86,503,686 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 429,594 | |
Payable for fund shares redeemed | 194,991 | |
Accrued management fee | 61,696 | |
Distribution and service plan fees payable | 3,148 | |
Other affiliated payables | 19,062 | |
Other payables and accrued expenses | 442,153 | |
Collateral on securities loaned, at value | 405,350 | |
Total liabilities | 1,555,994 | |
|
|
|
Net Assets | $ 84,947,692 | |
Net Assets consist of: |
| |
Paid in capital | $ 87,215,622 | |
Accumulated net investment loss | (129,796) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,211,358) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,073,224 | |
Net Assets | $ 84,947,692 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.86 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.86) | $ 12.58 | |
Class T: | $ 11.84 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.84) | $ 12.27 | |
Class C: | $ 11.74 | |
|
|
|
Emerging Markets Discovery: | $ 11.88 | |
|
|
|
Institutional Class: | $ 11.92 |
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.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 621,138 |
Income from Fidelity Central Funds |
| 20,192 |
Income before foreign taxes withheld |
| 641,330 |
Less foreign taxes withheld |
| (56,104) |
Total income |
| 585,226 |
|
|
|
Expenses | ||
Management fee | $ 391,525 | |
Transfer agent fees | 104,297 | |
Distribution and service plan fees | 20,138 | |
Accounting and security lending fees | 23,898 | |
Custodian fees and expenses | 83,298 | |
Independent trustees' compensation | 189 | |
Registration fees | 30,971 | |
Audit | 48,052 | |
Legal | 237 | |
Miscellaneous | 15,885 | |
Total expenses before reductions | 718,490 | |
Expense reductions | (31,528) | 686,962 |
Net investment income (loss) | (101,736) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (2,808,674) | |
Foreign currency transactions | (98,656) | |
Total net realized gain (loss) |
| (2,907,330) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $133,337) | 253,981 | |
Assets and liabilities in foreign currencies | 591 | |
Total change in net unrealized appreciation (depreciation) |
| 254,572 |
Net gain (loss) | (2,652,758) | |
Net increase (decrease) in net assets resulting from operations | $ (2,754,494) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (101,736) | $ 931,481 |
Net realized gain (loss) | (2,907,330) | 2,316,300 |
Change in net unrealized appreciation (depreciation) | 254,572 | (864,876) |
Net increase (decrease) in net assets resulting from operations | (2,754,494) | 2,382,905 |
Distributions to shareholders from net investment income | (676,480) | (286,293) |
Distributions to shareholders from net realized gain | (2,520,609) | (914,866) |
Total distributions | (3,197,089) | (1,201,159) |
Share transactions - net increase (decrease) | (15,992,116) | 59,689,170 |
Redemption fees | 22,859 | 191,734 |
Total increase (decrease) in net assets | (21,920,840) | 61,062,650 |
|
|
|
Net Assets | ||
Beginning of period | 106,868,532 | 45,805,882 |
End of period (including accumulated net investment loss of $129,796 and undistributed net investment income of $648,420, respectively) | $ 84,947,692 | $ 106,868,532 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.49 | $ 11.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.03) | .08 | .12 |
Net realized and unrealized gain (loss) | (.24) | .75 | 1.76 |
Total from investment operations | (.27) | .83 | 1.88 |
Distributions from net investment income | (.06) | (.04) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.36) | (.25) K | (.01) |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.86 | $ 12.49 | $ 11.89 |
Total Return B,C,D | (2.25)% | 7.20% | 19.00% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.84% A | 1.87% | 3.49% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.70% |
Expenses net of all reductions | 1.70% A | 1.64% | 1.64% |
Net investment income (loss) | (.43)% A | .62% | 1.16% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 4,509 | $ 5,065 | $ 1,671 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
K Total distributions of $.25 per share is comprised of distributions from net investment income of $.044 and distributions from net realized gain of $.203 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.44 | $ 11.87 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.04) | .05 | .10 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.75 |
Total from investment operations | (.28) | .79 | 1.85 |
Distributions from net investment income | (.02) | (.03) | - J |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.32) | (.24) K | - J |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.84 | $ 12.44 | $ 11.87 |
Total Return B,C,D | (2.34)% | 6.87% | 18.75% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 2.12% A | 2.19% | 3.77% |
Expenses net of fee waivers, if any | 1.95% A | 1.95% | 1.95% |
Expenses net of all reductions | 1.95% A | 1.89% | 1.89% |
Net investment income (loss) | (.68)% A | .37% | .91% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 1,810 | $ 1,914 | $ 1,700 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
K Total distributions of $.24 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $.203 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.35 | $ 11.82 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.07) | (.02) | .04 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.76 |
Total from investment operations | (.31) | .72 | 1.80 |
Distributions from net investment income | - | (.01) | - |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.30) | (.21) | - |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.74 | $ 12.35 | $ 11.82 |
Total Return B,C,D | (2.58)% | 6.32% | 18.20% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 2.60% A | 2.70% | 4.32% |
Expenses net of fee waivers, if any | 2.45% A | 2.45% | 2.45% |
Expenses net of all reductions | 2.45% A | 2.39% | 2.39% |
Net investment income (loss) | (1.18)% A | (.13)% | .41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 1,751 | $ 2,082 | $ 1,474 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Emerging Markets Discovery
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.52 | $ 11.92 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.01) | .11 | .15 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.76 |
Total from investment operations | (.25) | .85 | 1.91 |
Distributions from net investment income | (.09) | (.07) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.39) | (.27) | (.01) |
Redemption fees added to paid in capital D | - I | .02 | .02 |
Net asset value, end of period | $ 11.88 | $ 12.52 | $ 11.92 |
Total Return B,C | (2.11)% | 7.37% | 19.35% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | 1.51% A | 1.57% | 3.02% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% |
Expenses net of all reductions | 1.45% A | 1.39% | 1.39% |
Net investment income (loss) | (.18)% A | .87% | 1.41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 76,559 | $ 96,731 | $ 39,135 |
Portfolio turnover rate F | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 1, 2011 (commencement of operations) to October 31, 2012.
H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.53 | $ 11.92 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.01) | .11 | .15 |
Net realized and unrealized gain (loss) | (.24) | .75 | 1.76 |
Total from investment operations | (.25) | .86 | 1.91 |
Distributions from net investment income | (.06) | (.07) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.36) | (.27) | (.01) |
Redemption fees added to paid in capital D | - I | .02 | .02 |
Net asset value, end of period | $ 11.92 | $ 12.53 | $ 11.92 |
Total Return B,C | (2.10)% | 7.45% | 19.35% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | 1.57% A | 1.60% | 3.21% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% |
Expenses net of all reductions | 1.45% A | 1.39% | 1.39% |
Net investment income (loss) | (.18)% A | .87% | 1.41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 319 | $ 1,076 | $ 1,825 |
Portfolio turnover rate F | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 1, 2011 (commencement of operations) to October 31, 2012.
H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Emerging Markets Discovery Fund (the Fund) is a non-diversified fund of Fidelity Investment Trust (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 T, Class C, Emerging Markets Discovery and Institutional Class 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 7,110,510 |
Gross unrealized depreciation | (5,115,253) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,995,257 |
|
|
Tax cost | $ 84,007,684 |
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 2.00% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $46,250,677 and $64,426,614, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .60% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .85% 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
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 5,894 | $ 2,002 |
Class T | .25% | .25% | 4,364 | 1,150 |
Class C | .75% | .25% | 9,880 | 4,455 |
|
|
| $ 20,138 | $ 7,607 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,326 |
Class T | 545 |
Class C* | 1,806 |
| $ 3,677 |
* 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 7,215 | .31 |
Class T | 2,926 | .34 |
Class C | 3,084 | .31 |
Emerging Markets Discovery | 90,177 | .22 |
Institutional Class | 895 | .26 |
| $ 104,297 |
|
* 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 $57 for the period.
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 $89 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $19,591. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2014. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.70% | $ 3,314 |
Class T | 1.95% | 1,476 |
Class C | 2.45% | 1,447 |
Emerging Markets Discovery | 1.45% | 23,327 |
Institutional Class | 1.45% | 398 |
|
| $ 29,962 |
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $1,566.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 23,688 | $ 7,274 |
Class T | 2,475 | 5,643 |
Class C | - | 1,195 |
Emerging Markets Discovery | 646,254 | 259,277 |
Institutional Class | 4,063 | 12,904 |
Total | $ 676,480 | $ 286,293 |
From net realized gain |
|
|
Class A | $ 122,525 | $ 33,559 |
Class T | 43,668 | 33,691 |
Class C | 51,356 | 30,324 |
Emerging Markets Discovery | 2,280,897 | 778,518 |
Institutional Class | 22,163 | 38,774 |
Total | $ 2,520,609 | $ 914,866 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 83,530 | 646,803 | $ 986,688 | $ 8,039,936 |
Reinvestment of distributions | 10,958 | 3,013 | 133,251 | 36,310 |
Shares redeemed | (119,917) | (384,660) | (1,409,035) | (4,712,072) |
Net increase (decrease) | (25,429) | 265,156 | $ (289,096) | $ 3,364,174 |
Class T |
|
|
|
|
Shares sold | 27,340 | 157,097 | $ 320,765 | $ 1,931,892 |
Reinvestment of distributions | 3,566 | 3,232 | 43,325 | 38,882 |
Shares redeemed | (31,884) | (149,702) | (378,271) | (1,831,906) |
Net increase (decrease) | (978) | 10,627 | $ (14,181) | $ 138,868 |
Class C |
|
|
|
|
Shares sold | 29,419 | 428,945 | $ 345,245 | $ 5,224,843 |
Reinvestment of distributions | 4,241 | 2,629 | 51,185 | 31,519 |
Shares redeemed | (53,065) | (387,768) | (614,487) | (4,776,955) |
Net increase (decrease) | (19,405) | 43,806 | $ (218,057) | $ 479,407 |
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Emerging Markets Discovery |
|
|
|
|
Shares sold | 1,392,709 | 12,245,350 | $ 16,470,868 | $ 152,132,821 |
Reinvestment of distributions | 205,996 | 72,226 | 2,506,974 | 871,750 |
Shares redeemed | (2,880,409) | (7,876,995) | (33,751,986) | (96,541,547) |
Net increase (decrease) | (1,281,704) | 4,440,581 | $ (14,774,144) | $ 56,463,024 |
Institutional Class |
|
|
|
|
Shares sold | 6,243 | 231,788 | $ 74,200 | $ 2,857,278 |
Reinvestment of distributions | 824 | 3,612 | 10,052 | 43,597 |
Shares redeemed | (66,194) | (302,585) | (780,890) | (3,657,178) |
Net increase (decrease) | (59,127) | (67,185) | $ (696,638) | $ (756,303) |
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, the investment adviser or its affiliates were the owners of record of 10% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
(Fidelity Investment logo)(registered trademark)
AEMD-USAN-0614 1.931252.102
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets Discovery
Fund - Institutional Class
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Institutional Class is
a class of Fidelity®
Emerging Markets
Discovery Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.70% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.50 | $ 8.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class T | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 976.60 | $ 9.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Class C | 2.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 974.20 | $ 11.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,012.65 | $ 12.23 |
Emerging Markets Discovery | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 978.90 | $ 7.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Institutional Class | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 979.00 | $ 7.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.60 | $ 7.25 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Unified-President Enterprises Corp. (Taiwan, Food Products) | 1.8 | 1.4 |
KEPCO Plant Service & Engineering Co. Ltd. (Korea (South), Commercial Services & Supplies) | 1.7 | 1.3 |
Yue Yuen Industrial (Holdings) Ltd. (Bermuda, Textiles, Apparel & Luxury Goods) | 1.7 | 1.2 |
Compania Cervecerias Unidas SA sponsored ADR (Chile, Beverages) | 1.7 | 1.4 |
LG Household & Health Care Ltd. (Korea (South), Household Products) | 1.6 | 1.4 |
| 8.5 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Industrials | 20.6 | 19.2 |
Consumer Discretionary | 16.8 | 15.1 |
Financials | 15.9 | 25.8 |
Consumer Staples | 14.2 | 16.9 |
Information Technology | 13.4 | 5.0 |
Top Five Countries as of April 30, 2014 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
India | 20.3 | 13.3 |
Taiwan | 16.6 | 11.8 |
Korea (South) | 14.8 | 9.9 |
Cayman Islands | 10.7 | 6.9 |
Bermuda | 5.8 | 6.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
Stocks 97.9% |
| Stocks 97.3% |
| ||||
Short-Term |
| Short-Term |
|
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value | ||
Bermuda - 5.8% | |||
Man Wah Holdings Ltd. | 264,400 | $ 433,110 | |
Texwinca Holdings Ltd. | 1,198,000 | 1,287,167 | |
Vtech Holdings Ltd. | 45,600 | 629,335 | |
Wilson Sons Ltd. unit | 81,055 | 1,181,427 | |
Yue Yuen Industrial (Holdings) Ltd. | 459,000 | 1,417,918 | |
TOTAL BERMUDA | 4,948,957 | ||
Brazil - 2.4% | |||
BHG SA (Brazil Hospitality Group) (a) | 77,400 | 482,503 | |
Fleury SA | 131,200 | 880,257 | |
Terna Participacoes SA unit | 71,800 | 642,408 | |
TOTAL BRAZIL | 2,005,168 | ||
Cayman Islands - 10.7% | |||
51job, Inc. sponsored ADR (a) | 9,300 | 627,192 | |
ENN Energy Holdings Ltd. | 122,000 | 852,888 | |
Ginko International Co. Ltd. | 30,000 | 504,218 | |
Goodbaby International Holdings Ltd. | 1,076,000 | 589,840 | |
Gourmet Master Co. Ltd. | 161,000 | 1,304,951 | |
Greatview Aseptic Pack Co. Ltd. | 1,284,000 | 783,356 | |
Hilong Holding Ltd. | 629,000 | 327,767 | |
Lifestyle International Holdings Ltd. | 338,000 | 661,792 | |
Mindray Medical International Ltd. sponsored ADR (d) | 16,100 | 532,266 | |
NetEase.com, Inc. sponsored ADR | 7,000 | 476,630 | |
Samson Holding Ltd. | 5,972,000 | 785,693 | |
Silergy Corp. | 48,000 | 397,805 | |
SITC International Holdings Co. Ltd. | 893,000 | 393,922 | |
Springland International Holdings Ltd. | 770,000 | 302,917 | |
Tao Heung Holdings Ltd. | 885,000 | 567,326 | |
TOTAL CAYMAN ISLANDS | 9,108,563 | ||
Chile - 5.4% | |||
Aguas Andinas SA | 1,421,003 | 876,645 | |
Compania Cervecerias Unidas SA sponsored ADR | 59,807 | 1,409,651 | |
Embotelladora Andina SA sponsored ADR | 31,353 | 759,370 | |
Inversiones La Construccion SA | 41,951 | 552,031 | |
Quinenco SA | 445,380 | 986,655 | |
TOTAL CHILE | 4,584,352 | ||
China - 1.8% | |||
China Communications Services Corp. Ltd. (H Shares) | 1,172,000 | 594,091 | |
Common Stocks - continued | |||
Shares | Value | ||
China - continued | |||
Shandong Weigao Medical Polymer Co. Ltd. (H Shares) | 464,000 | $ 466,816 | |
Tong Ren Tang Technologies Co. Ltd. (H Shares) | 165,000 | 475,658 | |
TOTAL CHINA | 1,536,565 | ||
Hong Kong - 1.2% | |||
Far East Horizon Ltd. | 800,000 | 541,729 | |
Techtronic Industries Co. Ltd. | 161,000 | 512,927 | |
TOTAL HONG KONG | 1,054,656 | ||
India - 20.3% | |||
CMC Ltd. | 26,650 | 633,211 | |
Container Corp. of India Ltd. | 64,655 | 1,045,387 | |
Credit Analysis & Research Ltd. (a) | 70,384 | 918,849 | |
Exide Industries Ltd. | 349,293 | 693,490 | |
Grasim Industries Ltd. | 15,437 | 681,938 | |
Havells India Ltd. | 45,271 | 699,087 | |
Hindalco Industries Ltd. | 287,589 | 640,358 | |
IDFC Ltd. | 500,814 | 946,533 | |
Iifl Holdings Ltd. | 330,979 | 438,726 | |
IL&FS Transportation Networks Ltd. | 319,199 | 699,893 | |
IL&FS Transportation Networks Ltd. rights (a) | 86,184 | 46,082 | |
Indian Hotels Co. Ltd. | 458,814 | 547,321 | |
Ipca Laboratories Ltd. | 44,957 | 639,642 | |
Jain Irrigation Systems Ltd. (a) | 542,770 | 735,212 | |
KPIT Cummins Infosystems Ltd. (a) | 216,721 | 620,717 | |
Lupin Ltd. | 41,649 | 710,677 | |
Mahindra Lifespace Developers Ltd. | 54,660 | 359,370 | |
Max India Ltd. | 192,492 | 682,012 | |
Prestige Estates Projects Ltd. | 323,670 | 912,544 | |
Punjab National Bank | 85,796 | 1,145,004 | |
Shriram Transport Finance Co. Ltd. | 77,148 | 939,872 | |
Tech Mahindra Ltd. (a) | 33,674 | 1,022,893 | |
Thermax Ltd. (a) | 52,384 | 637,701 | |
Tube Investments of India Ltd. | 260,671 | 822,876 | |
TOTAL INDIA | 17,219,395 | ||
Indonesia - 2.3% | |||
PT Astra Graphia Tbk | 4,757,900 | 823,059 | |
PT Hero Supermarket Tbk (a) | 2,541,300 | 573,697 | |
PT Tempo Scan Pacific Tbk | 2,155,200 | 540,594 | |
TOTAL INDONESIA | 1,937,350 | ||
Common Stocks - continued | |||
Shares | Value | ||
Israel - 0.6% | |||
NICE Systems Ltd. sponsored ADR | 11,400 | $ 492,480 | |
Kenya - 0.7% | |||
East African Breweries Ltd. | 167,900 | 565,391 | |
Korea (South) - 14.8% | |||
Binggrea Co. Ltd. | 8,634 | 785,593 | |
Daou Technology, Inc. | 33,160 | 462,205 | |
DGB Financial Group Co. Ltd. | 57,250 | 867,256 | |
DuzonBizon Co. Ltd. | 50,610 | 597,659 | |
E-Mart Co. Ltd. | 4,723 | 1,078,916 | |
JVM Co. Ltd. (a) | 14,966 | 789,514 | |
Kiwoom Securities Co. Ltd. | 16,991 | 833,843 | |
Korea Electric Terminal Co. Ltd. | 11,880 | 500,223 | |
KEPCO Plant Service & Engineering Co. Ltd. | 22,758 | 1,480,338 | |
KT Corp. | 19,470 | 620,709 | |
Leeno Industrial, Inc. | 18,759 | 540,200 | |
LG Corp. | 7,380 | 410,754 | |
LG Household & Health Care Ltd. | 3,016 | 1,377,942 | |
Samsung Fire & Marine Insurance Co. Ltd. | 2,907 | 689,396 | |
Shinsegae Food Co. Ltd. | 9,753 | 776,955 | |
TK Corp. (a) | 40,749 | 802,674 | |
TOTAL KOREA (SOUTH) | 12,614,177 | ||
Malaysia - 2.6% | |||
Oldtown Bhd | 1,261,375 | 804,187 | |
Top Glove Corp. Bhd | 342,400 | 503,761 | |
YTL Corp. Bhd | 1,816,700 | 896,517 | |
TOTAL MALAYSIA | 2,204,465 | ||
Mexico - 3.2% | |||
Banregio Grupo Financiero S.A.B. de CV | 134,400 | 776,747 | |
Bolsa Mexicana de Valores S.A.B. de CV | 345,400 | 708,608 | |
Consorcio ARA S.A.B. de CV (a) | 1,171,400 | 514,842 | |
Megacable Holdings S.A.B. de CV unit | 174,600 | 692,514 | |
TOTAL MEXICO | 2,692,711 | ||
Philippines - 1.0% | |||
Security Bank Corp. | 306,448 | 825,674 | |
Poland - 0.6% | |||
Telekomunikacja Polska SA | 158,100 | 539,942 | |
Russia - 0.8% | |||
Synergy Co. (a) | 42,951 | 695,535 | |
Common Stocks - continued | |||
Shares | Value | ||
Singapore - 0.6% | |||
Goodpack Ltd. | 274,000 | $ 524,527 | |
South Africa - 3.7% | |||
Adcorp Holdings Ltd. | 215,400 | 656,142 | |
African Bank Investments Ltd. | 589,315 | 698,518 | |
Astral Foods Ltd. | 124,100 | 1,126,520 | |
Zeder Investments Ltd. | 1,655,964 | 689,428 | |
TOTAL SOUTH AFRICA | 3,170,608 | ||
Sri Lanka - 0.7% | |||
John Keells Holdings Ltd. | 334,083 | 608,633 | |
Taiwan - 16.6% | |||
ASPEED Tech, Inc. | 56,000 | 484,527 | |
Chicony Electronics Co. Ltd. | 209,000 | 543,883 | |
China Life Insurance Co. Ltd. | 745,000 | 652,003 | |
Chroma ATE, Inc. | 415,000 | 1,068,953 | |
Cleanaway Co. Ltd. | 138,000 | 782,284 | |
CTCI Corp. | 454,000 | 725,425 | |
Edison Opto Corp. | 360,000 | 427,840 | |
EPISTAR Corp. | 244,000 | 533,046 | |
Everlight Electronics Co. Ltd. | 201,000 | 470,425 | |
Formosa Optical Technology Co. Ltd. | 191,000 | 652,169 | |
GeoVision, Inc. | 83,000 | 451,244 | |
Kd Holding Corp. | 130,000 | 754,173 | |
King Slide Works Co. Ltd. | 42,000 | 547,181 | |
Lextar Electronics Corp. | 418,000 | 408,085 | |
MJC Probe, Inc. | 299,000 | 733,487 | |
Pacific Hospital Supply Co. Ltd. | 305,700 | 790,459 | |
President Chain Store Corp. | 118,000 | 878,189 | |
St.Shine Optical Co. Ltd. | 23,000 | 487,212 | |
Transcend Information, Inc. | 136,000 | 449,043 | |
Unified-President Enterprises Corp. | 898,803 | 1,522,560 | |
Wowprime Corp. | 49,500 | 746,631 | |
TOTAL TAIWAN | 14,108,819 | ||
Thailand - 1.2% | |||
Erawan Group Public Co. Ltd. (The) | 4,209,800 | 496,954 | |
Thai Union Frozen Products PCL (For. Reg.) | 232,600 | 503,152 | |
TOTAL THAILAND | 1,000,106 | ||
Common Stocks - continued | |||
Shares | Value | ||
Turkey - 0.9% | |||
Enka Insaat ve Sanayi A/S | 253,057 | $ 767,003 | |
TOTAL COMMON STOCKS (Cost $80,778,963) |
| ||
Money Market Funds - 3.3% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 2,392,514 | 2,392,514 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 405,350 | 405,350 | |
TOTAL MONEY MARKET FUNDS (Cost $2,797,864) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $83,576,827) | 86,002,941 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (1,055,249) | ||
NET ASSETS - 100% | $ 84,947,692 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 601 |
Fidelity Securities Lending Cash Central Fund | 19,591 |
Total | $ 20,192 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 14,289,896 | $ 14,289,896 | $ - | $ - |
Consumer Staples | 12,080,703 | 12,080,703 | - | - |
Energy | 327,767 | 327,767 | - | - |
Financials | 13,496,131 | 11,404,594 | 2,091,537 | - |
Health Care | 6,531,560 | 5,181,241 | 1,350,319 | - |
Industrials | 17,381,973 | 16,290,504 | 1,091,469 | - |
Information Technology | 11,443,668 | 11,443,668 | - | - |
Materials | 2,630,179 | 1,948,241 | 681,938 | - |
Telecommunication Services | 1,754,742 | 1,134,033 | 620,709 | - |
Utilities | 3,268,458 | 3,268,458 | - | - |
Money Market Funds | 2,797,864 | 2,797,864 | - | - |
Total Investments in Securities: | $ 86,002,941 | $ 80,166,969 | $ 5,835,972 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 2,049,966 |
Level 2 to Level 1 | $ 0 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $400,026) - See accompanying schedule: Unaffiliated issuers (cost $80,778,963) | $ 83,205,077 |
|
Fidelity Central Funds (cost $2,797,864) | 2,797,864 |
|
Total Investments (cost $83,576,827) |
| $ 86,002,941 |
Receivable for investments sold | 119,928 | |
Receivable for fund shares sold | 177,957 | |
Dividends receivable | 191,106 | |
Distributions receivable from Fidelity Central Funds | 3,061 | |
Prepaid expenses | 142 | |
Other receivables | 8,551 | |
Total assets | 86,503,686 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 429,594 | |
Payable for fund shares redeemed | 194,991 | |
Accrued management fee | 61,696 | |
Distribution and service plan fees payable | 3,148 | |
Other affiliated payables | 19,062 | |
Other payables and accrued expenses | 442,153 | |
Collateral on securities loaned, at value | 405,350 | |
Total liabilities | 1,555,994 | |
|
|
|
Net Assets | $ 84,947,692 | |
Net Assets consist of: |
| |
Paid in capital | $ 87,215,622 | |
Accumulated net investment loss | (129,796) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,211,358) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,073,224 | |
Net Assets | $ 84,947,692 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.86 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.86) | $ 12.58 | |
Class T: | $ 11.84 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.84) | $ 12.27 | |
Class C: | $ 11.74 | |
|
|
|
Emerging Markets Discovery: | $ 11.88 | |
|
|
|
Institutional Class: | $ 11.92 |
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.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 621,138 |
Income from Fidelity Central Funds |
| 20,192 |
Income before foreign taxes withheld |
| 641,330 |
Less foreign taxes withheld |
| (56,104) |
Total income |
| 585,226 |
|
|
|
Expenses | ||
Management fee | $ 391,525 | |
Transfer agent fees | 104,297 | |
Distribution and service plan fees | 20,138 | |
Accounting and security lending fees | 23,898 | |
Custodian fees and expenses | 83,298 | |
Independent trustees' compensation | 189 | |
Registration fees | 30,971 | |
Audit | 48,052 | |
Legal | 237 | |
Miscellaneous | 15,885 | |
Total expenses before reductions | 718,490 | |
Expense reductions | (31,528) | 686,962 |
Net investment income (loss) | (101,736) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (2,808,674) | |
Foreign currency transactions | (98,656) | |
Total net realized gain (loss) |
| (2,907,330) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $133,337) | 253,981 | |
Assets and liabilities in foreign currencies | 591 | |
Total change in net unrealized appreciation (depreciation) |
| 254,572 |
Net gain (loss) | (2,652,758) | |
Net increase (decrease) in net assets resulting from operations | $ (2,754,494) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (101,736) | $ 931,481 |
Net realized gain (loss) | (2,907,330) | 2,316,300 |
Change in net unrealized appreciation (depreciation) | 254,572 | (864,876) |
Net increase (decrease) in net assets resulting from operations | (2,754,494) | 2,382,905 |
Distributions to shareholders from net investment income | (676,480) | (286,293) |
Distributions to shareholders from net realized gain | (2,520,609) | (914,866) |
Total distributions | (3,197,089) | (1,201,159) |
Share transactions - net increase (decrease) | (15,992,116) | 59,689,170 |
Redemption fees | 22,859 | 191,734 |
Total increase (decrease) in net assets | (21,920,840) | 61,062,650 |
|
|
|
Net Assets | ||
Beginning of period | 106,868,532 | 45,805,882 |
End of period (including accumulated net investment loss of $129,796 and undistributed net investment income of $648,420, respectively) | $ 84,947,692 | $ 106,868,532 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.49 | $ 11.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.03) | .08 | .12 |
Net realized and unrealized gain (loss) | (.24) | .75 | 1.76 |
Total from investment operations | (.27) | .83 | 1.88 |
Distributions from net investment income | (.06) | (.04) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.36) | (.25) K | (.01) |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.86 | $ 12.49 | $ 11.89 |
Total Return B,C,D | (2.25)% | 7.20% | 19.00% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.84% A | 1.87% | 3.49% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.70% |
Expenses net of all reductions | 1.70% A | 1.64% | 1.64% |
Net investment income (loss) | (.43)% A | .62% | 1.16% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 4,509 | $ 5,065 | $ 1,671 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
K Total distributions of $.25 per share is comprised of distributions from net investment income of $.044 and distributions from net realized gain of $.203 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.44 | $ 11.87 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.04) | .05 | .10 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.75 |
Total from investment operations | (.28) | .79 | 1.85 |
Distributions from net investment income | (.02) | (.03) | - J |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.32) | (.24) K | - J |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.84 | $ 12.44 | $ 11.87 |
Total Return B,C,D | (2.34)% | 6.87% | 18.75% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 2.12% A | 2.19% | 3.77% |
Expenses net of fee waivers, if any | 1.95% A | 1.95% | 1.95% |
Expenses net of all reductions | 1.95% A | 1.89% | 1.89% |
Net investment income (loss) | (.68)% A | .37% | .91% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 1,810 | $ 1,914 | $ 1,700 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
K Total distributions of $.24 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $.203 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.35 | $ 11.82 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.07) | (.02) | .04 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.76 |
Total from investment operations | (.31) | .72 | 1.80 |
Distributions from net investment income | - | (.01) | - |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.30) | (.21) | - |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.74 | $ 12.35 | $ 11.82 |
Total Return B,C,D | (2.58)% | 6.32% | 18.20% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 2.60% A | 2.70% | 4.32% |
Expenses net of fee waivers, if any | 2.45% A | 2.45% | 2.45% |
Expenses net of all reductions | 2.45% A | 2.39% | 2.39% |
Net investment income (loss) | (1.18)% A | (.13)% | .41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 1,751 | $ 2,082 | $ 1,474 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Emerging Markets Discovery
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.52 | $ 11.92 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.01) | .11 | .15 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.76 |
Total from investment operations | (.25) | .85 | 1.91 |
Distributions from net investment income | (.09) | (.07) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.39) | (.27) | (.01) |
Redemption fees added to paid in capital D | - I | .02 | .02 |
Net asset value, end of period | $ 11.88 | $ 12.52 | $ 11.92 |
Total Return B,C | (2.11)% | 7.37% | 19.35% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | 1.51% A | 1.57% | 3.02% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% |
Expenses net of all reductions | 1.45% A | 1.39% | 1.39% |
Net investment income (loss) | (.18)% A | .87% | 1.41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 76,559 | $ 96,731 | $ 39,135 |
Portfolio turnover rate F | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 1, 2011 (commencement of operations) to October 31, 2012.
H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.53 | $ 11.92 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.01) | .11 | .15 |
Net realized and unrealized gain (loss) | (.24) | .75 | 1.76 |
Total from investment operations | (.25) | .86 | 1.91 |
Distributions from net investment income | (.06) | (.07) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.36) | (.27) | (.01) |
Redemption fees added to paid in capital D | - I | .02 | .02 |
Net asset value, end of period | $ 11.92 | $ 12.53 | $ 11.92 |
Total Return B,C | (2.10)% | 7.45% | 19.35% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | 1.57% A | 1.60% | 3.21% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% |
Expenses net of all reductions | 1.45% A | 1.39% | 1.39% |
Net investment income (loss) | (.18)% A | .87% | 1.41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 319 | $ 1,076 | $ 1,825 |
Portfolio turnover rate F | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 1, 2011 (commencement of operations) to October 31, 2012.
H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Emerging Markets Discovery Fund (the Fund) is a non-diversified fund of Fidelity Investment Trust (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 T, Class C, Emerging Markets Discovery and Institutional Class 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 7,110,510 |
Gross unrealized depreciation | (5,115,253) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,995,257 |
|
|
Tax cost | $ 84,007,684 |
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 2.00% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $46,250,677 and $64,426,614, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .60% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .85% 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
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 5,894 | $ 2,002 |
Class T | .25% | .25% | 4,364 | 1,150 |
Class C | .75% | .25% | 9,880 | 4,455 |
|
|
| $ 20,138 | $ 7,607 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,326 |
Class T | 545 |
Class C* | 1,806 |
| $ 3,677 |
* 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 7,215 | .31 |
Class T | 2,926 | .34 |
Class C | 3,084 | .31 |
Emerging Markets Discovery | 90,177 | .22 |
Institutional Class | 895 | .26 |
| $ 104,297 |
|
* 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 $57 for the period.
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 $89 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $19,591. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2014. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.70% | $ 3,314 |
Class T | 1.95% | 1,476 |
Class C | 2.45% | 1,447 |
Emerging Markets Discovery | 1.45% | 23,327 |
Institutional Class | 1.45% | 398 |
|
| $ 29,962 |
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $1,566.
Semiannual Report
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 23,688 | $ 7,274 |
Class T | 2,475 | 5,643 |
Class C | - | 1,195 |
Emerging Markets Discovery | 646,254 | 259,277 |
Institutional Class | 4,063 | 12,904 |
Total | $ 676,480 | $ 286,293 |
From net realized gain |
|
|
Class A | $ 122,525 | $ 33,559 |
Class T | 43,668 | 33,691 |
Class C | 51,356 | 30,324 |
Emerging Markets Discovery | 2,280,897 | 778,518 |
Institutional Class | 22,163 | 38,774 |
Total | $ 2,520,609 | $ 914,866 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 83,530 | 646,803 | $ 986,688 | $ 8,039,936 |
Reinvestment of distributions | 10,958 | 3,013 | 133,251 | 36,310 |
Shares redeemed | (119,917) | (384,660) | (1,409,035) | (4,712,072) |
Net increase (decrease) | (25,429) | 265,156 | $ (289,096) | $ 3,364,174 |
Class T |
|
|
|
|
Shares sold | 27,340 | 157,097 | $ 320,765 | $ 1,931,892 |
Reinvestment of distributions | 3,566 | 3,232 | 43,325 | 38,882 |
Shares redeemed | (31,884) | (149,702) | (378,271) | (1,831,906) |
Net increase (decrease) | (978) | 10,627 | $ (14,181) | $ 138,868 |
Class C |
|
|
|
|
Shares sold | 29,419 | 428,945 | $ 345,245 | $ 5,224,843 |
Reinvestment of distributions | 4,241 | 2,629 | 51,185 | 31,519 |
Shares redeemed | (53,065) | (387,768) | (614,487) | (4,776,955) |
Net increase (decrease) | (19,405) | 43,806 | $ (218,057) | $ 479,407 |
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Emerging Markets Discovery |
|
|
|
|
Shares sold | 1,392,709 | 12,245,350 | $ 16,470,868 | $ 152,132,821 |
Reinvestment of distributions | 205,996 | 72,226 | 2,506,974 | 871,750 |
Shares redeemed | (2,880,409) | (7,876,995) | (33,751,986) | (96,541,547) |
Net increase (decrease) | (1,281,704) | 4,440,581 | $ (14,774,144) | $ 56,463,024 |
Institutional Class |
|
|
|
|
Shares sold | 6,243 | 231,788 | $ 74,200 | $ 2,857,278 |
Reinvestment of distributions | 824 | 3,612 | 10,052 | 43,597 |
Shares redeemed | (66,194) | (302,585) | (780,890) | (3,657,178) |
Net increase (decrease) | (59,127) | (67,185) | $ (696,638) | $ (756,303) |
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, the investment adviser or its affiliates were the owners of record of 10% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
FIL Investment Advisors
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
(Fidelity Investment logo)(registered trademark)
AEMDI-USAN-0614 1.931245.102
Fidelity®
Emerging Markets Discovery
Fund
and Fidelity®
Total Emerging Markets
Fund
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Fidelity® Emerging Markets Discovery Fund | ||
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the Financial Statements. | |
Fidelity Total Emerging Markets Fund | ||
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the Financial Statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
Semiannual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.70% |
|
|
|
Actual |
| $ 1,000.00 | $ 977.50 | $ 8.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.36 | $ 8.50 |
Class T | 1.95% |
|
|
|
Actual |
| $ 1,000.00 | $ 976.60 | $ 9.56 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Class C | 2.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 974.20 | $ 11.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,012.65 | $ 12.23 |
Emerging Markets Discovery | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 978.90 | $ 7.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.60 | $ 7.25 |
Institutional Class | 1.45% |
|
|
|
Actual |
| $ 1,000.00 | $ 979.00 | $ 7.11 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.60 | $ 7.25 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Unified-President Enterprises Corp. (Taiwan, Food Products) | 1.8 | 1.4 |
KEPCO Plant Service & Engineering Co. Ltd. (Korea (South), Commercial Services & Supplies) | 1.7 | 1.3 |
Yue Yuen Industrial (Holdings) Ltd. (Bermuda, Textiles, Apparel & Luxury Goods) | 1.7 | 1.2 |
Compania Cervecerias Unidas SA sponsored ADR (Chile, Beverages) | 1.7 | 1.4 |
LG Household & Health Care Ltd. (Korea (South), Household Products) | 1.6 | 1.4 |
| 8.5 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Industrials | 20.6 | 19.2 |
Consumer Discretionary | 16.8 | 15.1 |
Financials | 15.9 | 25.8 |
Consumer Staples | 14.2 | 16.9 |
Information Technology | 13.4 | 5.0 |
Top Five Countries as of April 30, 2014 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
India | 20.3 | 13.3 |
Taiwan | 16.6 | 11.8 |
Korea (South) | 14.8 | 9.9 |
Cayman Islands | 10.7 | 6.9 |
Bermuda | 5.8 | 6.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
Stocks 97.9% |
| Stocks 97.3% |
| ||||
Short-Term |
| Short-Term |
|
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value | ||
Bermuda - 5.8% | |||
Man Wah Holdings Ltd. | 264,400 | $ 433,110 | |
Texwinca Holdings Ltd. | 1,198,000 | 1,287,167 | |
Vtech Holdings Ltd. | 45,600 | 629,335 | |
Wilson Sons Ltd. unit | 81,055 | 1,181,427 | |
Yue Yuen Industrial (Holdings) Ltd. | 459,000 | 1,417,918 | |
TOTAL BERMUDA | 4,948,957 | ||
Brazil - 2.4% | |||
BHG SA (Brazil Hospitality Group) (a) | 77,400 | 482,503 | |
Fleury SA | 131,200 | 880,257 | |
Terna Participacoes SA unit | 71,800 | 642,408 | |
TOTAL BRAZIL | 2,005,168 | ||
Cayman Islands - 10.7% | |||
51job, Inc. sponsored ADR (a) | 9,300 | 627,192 | |
ENN Energy Holdings Ltd. | 122,000 | 852,888 | |
Ginko International Co. Ltd. | 30,000 | 504,218 | |
Goodbaby International Holdings Ltd. | 1,076,000 | 589,840 | |
Gourmet Master Co. Ltd. | 161,000 | 1,304,951 | |
Greatview Aseptic Pack Co. Ltd. | 1,284,000 | 783,356 | |
Hilong Holding Ltd. | 629,000 | 327,767 | |
Lifestyle International Holdings Ltd. | 338,000 | 661,792 | |
Mindray Medical International Ltd. sponsored ADR (d) | 16,100 | 532,266 | |
NetEase.com, Inc. sponsored ADR | 7,000 | 476,630 | |
Samson Holding Ltd. | 5,972,000 | 785,693 | |
Silergy Corp. | 48,000 | 397,805 | |
SITC International Holdings Co. Ltd. | 893,000 | 393,922 | |
Springland International Holdings Ltd. | 770,000 | 302,917 | |
Tao Heung Holdings Ltd. | 885,000 | 567,326 | |
TOTAL CAYMAN ISLANDS | 9,108,563 | ||
Chile - 5.4% | |||
Aguas Andinas SA | 1,421,003 | 876,645 | |
Compania Cervecerias Unidas SA sponsored ADR | 59,807 | 1,409,651 | |
Embotelladora Andina SA sponsored ADR | 31,353 | 759,370 | |
Inversiones La Construccion SA | 41,951 | 552,031 | |
Quinenco SA | 445,380 | 986,655 | |
TOTAL CHILE | 4,584,352 | ||
China - 1.8% | |||
China Communications Services Corp. Ltd. (H Shares) | 1,172,000 | 594,091 | |
Common Stocks - continued | |||
Shares | Value | ||
China - continued | |||
Shandong Weigao Medical Polymer Co. Ltd. (H Shares) | 464,000 | $ 466,816 | |
Tong Ren Tang Technologies Co. Ltd. (H Shares) | 165,000 | 475,658 | |
TOTAL CHINA | 1,536,565 | ||
Hong Kong - 1.2% | |||
Far East Horizon Ltd. | 800,000 | 541,729 | |
Techtronic Industries Co. Ltd. | 161,000 | 512,927 | |
TOTAL HONG KONG | 1,054,656 | ||
India - 20.3% | |||
CMC Ltd. | 26,650 | 633,211 | |
Container Corp. of India Ltd. | 64,655 | 1,045,387 | |
Credit Analysis & Research Ltd. (a) | 70,384 | 918,849 | |
Exide Industries Ltd. | 349,293 | 693,490 | |
Grasim Industries Ltd. | 15,437 | 681,938 | |
Havells India Ltd. | 45,271 | 699,087 | |
Hindalco Industries Ltd. | 287,589 | 640,358 | |
IDFC Ltd. | 500,814 | 946,533 | |
Iifl Holdings Ltd. | 330,979 | 438,726 | |
IL&FS Transportation Networks Ltd. | 319,199 | 699,893 | |
IL&FS Transportation Networks Ltd. rights (a) | 86,184 | 46,082 | |
Indian Hotels Co. Ltd. | 458,814 | 547,321 | |
Ipca Laboratories Ltd. | 44,957 | 639,642 | |
Jain Irrigation Systems Ltd. (a) | 542,770 | 735,212 | |
KPIT Cummins Infosystems Ltd. (a) | 216,721 | 620,717 | |
Lupin Ltd. | 41,649 | 710,677 | |
Mahindra Lifespace Developers Ltd. | 54,660 | 359,370 | |
Max India Ltd. | 192,492 | 682,012 | |
Prestige Estates Projects Ltd. | 323,670 | 912,544 | |
Punjab National Bank | 85,796 | 1,145,004 | |
Shriram Transport Finance Co. Ltd. | 77,148 | 939,872 | |
Tech Mahindra Ltd. (a) | 33,674 | 1,022,893 | |
Thermax Ltd. (a) | 52,384 | 637,701 | |
Tube Investments of India Ltd. | 260,671 | 822,876 | |
TOTAL INDIA | 17,219,395 | ||
Indonesia - 2.3% | |||
PT Astra Graphia Tbk | 4,757,900 | 823,059 | |
PT Hero Supermarket Tbk (a) | 2,541,300 | 573,697 | |
PT Tempo Scan Pacific Tbk | 2,155,200 | 540,594 | |
TOTAL INDONESIA | 1,937,350 | ||
Common Stocks - continued | |||
Shares | Value | ||
Israel - 0.6% | |||
NICE Systems Ltd. sponsored ADR | 11,400 | $ 492,480 | |
Kenya - 0.7% | |||
East African Breweries Ltd. | 167,900 | 565,391 | |
Korea (South) - 14.8% | |||
Binggrea Co. Ltd. | 8,634 | 785,593 | |
Daou Technology, Inc. | 33,160 | 462,205 | |
DGB Financial Group Co. Ltd. | 57,250 | 867,256 | |
DuzonBizon Co. Ltd. | 50,610 | 597,659 | |
E-Mart Co. Ltd. | 4,723 | 1,078,916 | |
JVM Co. Ltd. (a) | 14,966 | 789,514 | |
Kiwoom Securities Co. Ltd. | 16,991 | 833,843 | |
Korea Electric Terminal Co. Ltd. | 11,880 | 500,223 | |
KEPCO Plant Service & Engineering Co. Ltd. | 22,758 | 1,480,338 | |
KT Corp. | 19,470 | 620,709 | |
Leeno Industrial, Inc. | 18,759 | 540,200 | |
LG Corp. | 7,380 | 410,754 | |
LG Household & Health Care Ltd. | 3,016 | 1,377,942 | |
Samsung Fire & Marine Insurance Co. Ltd. | 2,907 | 689,396 | |
Shinsegae Food Co. Ltd. | 9,753 | 776,955 | |
TK Corp. (a) | 40,749 | 802,674 | |
TOTAL KOREA (SOUTH) | 12,614,177 | ||
Malaysia - 2.6% | |||
Oldtown Bhd | 1,261,375 | 804,187 | |
Top Glove Corp. Bhd | 342,400 | 503,761 | |
YTL Corp. Bhd | 1,816,700 | 896,517 | |
TOTAL MALAYSIA | 2,204,465 | ||
Mexico - 3.2% | |||
Banregio Grupo Financiero S.A.B. de CV | 134,400 | 776,747 | |
Bolsa Mexicana de Valores S.A.B. de CV | 345,400 | 708,608 | |
Consorcio ARA S.A.B. de CV (a) | 1,171,400 | 514,842 | |
Megacable Holdings S.A.B. de CV unit | 174,600 | 692,514 | |
TOTAL MEXICO | 2,692,711 | ||
Philippines - 1.0% | |||
Security Bank Corp. | 306,448 | 825,674 | |
Poland - 0.6% | |||
Telekomunikacja Polska SA | 158,100 | 539,942 | |
Russia - 0.8% | |||
Synergy Co. (a) | 42,951 | 695,535 | |
Common Stocks - continued | |||
Shares | Value | ||
Singapore - 0.6% | |||
Goodpack Ltd. | 274,000 | $ 524,527 | |
South Africa - 3.7% | |||
Adcorp Holdings Ltd. | 215,400 | 656,142 | |
African Bank Investments Ltd. | 589,315 | 698,518 | |
Astral Foods Ltd. | 124,100 | 1,126,520 | |
Zeder Investments Ltd. | 1,655,964 | 689,428 | |
TOTAL SOUTH AFRICA | 3,170,608 | ||
Sri Lanka - 0.7% | |||
John Keells Holdings Ltd. | 334,083 | 608,633 | |
Taiwan - 16.6% | |||
ASPEED Tech, Inc. | 56,000 | 484,527 | |
Chicony Electronics Co. Ltd. | 209,000 | 543,883 | |
China Life Insurance Co. Ltd. | 745,000 | 652,003 | |
Chroma ATE, Inc. | 415,000 | 1,068,953 | |
Cleanaway Co. Ltd. | 138,000 | 782,284 | |
CTCI Corp. | 454,000 | 725,425 | |
Edison Opto Corp. | 360,000 | 427,840 | |
EPISTAR Corp. | 244,000 | 533,046 | |
Everlight Electronics Co. Ltd. | 201,000 | 470,425 | |
Formosa Optical Technology Co. Ltd. | 191,000 | 652,169 | |
GeoVision, Inc. | 83,000 | 451,244 | |
Kd Holding Corp. | 130,000 | 754,173 | |
King Slide Works Co. Ltd. | 42,000 | 547,181 | |
Lextar Electronics Corp. | 418,000 | 408,085 | |
MJC Probe, Inc. | 299,000 | 733,487 | |
Pacific Hospital Supply Co. Ltd. | 305,700 | 790,459 | |
President Chain Store Corp. | 118,000 | 878,189 | |
St.Shine Optical Co. Ltd. | 23,000 | 487,212 | |
Transcend Information, Inc. | 136,000 | 449,043 | |
Unified-President Enterprises Corp. | 898,803 | 1,522,560 | |
Wowprime Corp. | 49,500 | 746,631 | |
TOTAL TAIWAN | 14,108,819 | ||
Thailand - 1.2% | |||
Erawan Group Public Co. Ltd. (The) | 4,209,800 | 496,954 | |
Thai Union Frozen Products PCL (For. Reg.) | 232,600 | 503,152 | |
TOTAL THAILAND | 1,000,106 | ||
Common Stocks - continued | |||
Shares | Value | ||
Turkey - 0.9% | |||
Enka Insaat ve Sanayi A/S | 253,057 | $ 767,003 | |
TOTAL COMMON STOCKS (Cost $80,778,963) |
| ||
Money Market Funds - 3.3% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 2,392,514 | 2,392,514 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 405,350 | 405,350 | |
TOTAL MONEY MARKET FUNDS (Cost $2,797,864) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $83,576,827) | 86,002,941 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (1,055,249) | ||
NET ASSETS - 100% | $ 84,947,692 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 601 |
Fidelity Securities Lending Cash Central Fund | 19,591 |
Total | $ 20,192 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 14,289,896 | $ 14,289,896 | $ - | $ - |
Consumer Staples | 12,080,703 | 12,080,703 | - | - |
Energy | 327,767 | 327,767 | - | - |
Financials | 13,496,131 | 11,404,594 | 2,091,537 | - |
Health Care | 6,531,560 | 5,181,241 | 1,350,319 | - |
Industrials | 17,381,973 | 16,290,504 | 1,091,469 | - |
Information Technology | 11,443,668 | 11,443,668 | - | - |
Materials | 2,630,179 | 1,948,241 | 681,938 | - |
Telecommunication Services | 1,754,742 | 1,134,033 | 620,709 | - |
Utilities | 3,268,458 | 3,268,458 | - | - |
Money Market Funds | 2,797,864 | 2,797,864 | - | - |
Total Investments in Securities: | $ 86,002,941 | $ 80,166,969 | $ 5,835,972 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 2,049,966 |
Level 2 to Level 1 | $ 0 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $400,026) - See accompanying schedule: Unaffiliated issuers (cost $80,778,963) | $ 83,205,077 |
|
Fidelity Central Funds (cost $2,797,864) | 2,797,864 |
|
Total Investments (cost $83,576,827) |
| $ 86,002,941 |
Receivable for investments sold | 119,928 | |
Receivable for fund shares sold | 177,957 | |
Dividends receivable | 191,106 | |
Distributions receivable from Fidelity Central Funds | 3,061 | |
Prepaid expenses | 142 | |
Other receivables | 8,551 | |
Total assets | 86,503,686 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 429,594 | |
Payable for fund shares redeemed | 194,991 | |
Accrued management fee | 61,696 | |
Distribution and service plan fees payable | 3,148 | |
Other affiliated payables | 19,062 | |
Other payables and accrued expenses | 442,153 | |
Collateral on securities loaned, at value | 405,350 | |
Total liabilities | 1,555,994 | |
|
|
|
Net Assets | $ 84,947,692 | |
Net Assets consist of: |
| |
Paid in capital | $ 87,215,622 | |
Accumulated net investment loss | (129,796) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,211,358) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,073,224 | |
Net Assets | $ 84,947,692 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.86 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.86) | $ 12.58 | |
Class T: | $ 11.84 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.84) | $ 12.27 | |
Class C: | $ 11.74 | |
|
|
|
Emerging Markets Discovery: | $ 11.88 | |
|
|
|
Institutional Class: | $ 11.92 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 621,138 |
Income from Fidelity Central Funds |
| 20,192 |
Income before foreign taxes withheld |
| 641,330 |
Less foreign taxes withheld |
| (56,104) |
Total income |
| 585,226 |
|
|
|
Expenses | ||
Management fee | $ 391,525 | |
Transfer agent fees | 104,297 | |
Distribution and service plan fees | 20,138 | |
Accounting and security lending fees | 23,898 | |
Custodian fees and expenses | 83,298 | |
Independent trustees' compensation | 189 | |
Registration fees | 30,971 | |
Audit | 48,052 | |
Legal | 237 | |
Miscellaneous | 15,885 | |
Total expenses before reductions | 718,490 | |
Expense reductions | (31,528) | 686,962 |
Net investment income (loss) | (101,736) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (2,808,674) | |
Foreign currency transactions | (98,656) | |
Total net realized gain (loss) |
| (2,907,330) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $133,337) | 253,981 | |
Assets and liabilities in foreign currencies | 591 | |
Total change in net unrealized appreciation (depreciation) |
| 254,572 |
Net gain (loss) | (2,652,758) | |
Net increase (decrease) in net assets resulting from operations | $ (2,754,494) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (101,736) | $ 931,481 |
Net realized gain (loss) | (2,907,330) | 2,316,300 |
Change in net unrealized appreciation (depreciation) | 254,572 | (864,876) |
Net increase (decrease) in net assets resulting from operations | (2,754,494) | 2,382,905 |
Distributions to shareholders from net investment income | (676,480) | (286,293) |
Distributions to shareholders from net realized gain | (2,520,609) | (914,866) |
Total distributions | (3,197,089) | (1,201,159) |
Share transactions - net increase (decrease) | (15,992,116) | 59,689,170 |
Redemption fees | 22,859 | 191,734 |
Total increase (decrease) in net assets | (21,920,840) | 61,062,650 |
|
|
|
Net Assets | ||
Beginning of period | 106,868,532 | 45,805,882 |
End of period (including accumulated net investment loss of $129,796 and undistributed net investment income of $648,420, respectively) | $ 84,947,692 | $ 106,868,532 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.49 | $ 11.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.03) | .08 | .12 |
Net realized and unrealized gain (loss) | (.24) | .75 | 1.76 |
Total from investment operations | (.27) | .83 | 1.88 |
Distributions from net investment income | (.06) | (.04) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.36) | (.25) K | (.01) |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.86 | $ 12.49 | $ 11.89 |
Total Return B,C,D | (2.25)% | 7.20% | 19.00% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 1.84% A | 1.87% | 3.49% |
Expenses net of fee waivers, if any | 1.70% A | 1.70% | 1.70% |
Expenses net of all reductions | 1.70% A | 1.64% | 1.64% |
Net investment income (loss) | (.43)% A | .62% | 1.16% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 4,509 | $ 5,065 | $ 1,671 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
K Total distributions of $.25 per share is comprised of distributions from net investment income of $.044 and distributions from net realized gain of $.203 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.44 | $ 11.87 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.04) | .05 | .10 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.75 |
Total from investment operations | (.28) | .79 | 1.85 |
Distributions from net investment income | (.02) | (.03) | - J |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.32) | (.24) K | - J |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.84 | $ 12.44 | $ 11.87 |
Total Return B,C,D | (2.34)% | 6.87% | 18.75% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 2.12% A | 2.19% | 3.77% |
Expenses net of fee waivers, if any | 1.95% A | 1.95% | 1.95% |
Expenses net of all reductions | 1.95% A | 1.89% | 1.89% |
Net investment income (loss) | (.68)% A | .37% | .91% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 1,810 | $ 1,914 | $ 1,700 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
K Total distributions of $.24 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $.203 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.35 | $ 11.82 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | (.07) | (.02) | .04 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.76 |
Total from investment operations | (.31) | .72 | 1.80 |
Distributions from net investment income | - | (.01) | - |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.30) | (.21) | - |
Redemption fees added to paid in capital E | - J | .02 | .02 |
Net asset value, end of period | $ 11.74 | $ 12.35 | $ 11.82 |
Total Return B,C,D | (2.58)% | 6.32% | 18.20% |
Ratios to Average Net Assets F,I |
|
|
|
Expenses before reductions | 2.60% A | 2.70% | 4.32% |
Expenses net of fee waivers, if any | 2.45% A | 2.45% | 2.45% |
Expenses net of all reductions | 2.45% A | 2.39% | 2.39% |
Net investment income (loss) | (1.18)% A | (.13)% | .41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 1,751 | $ 2,082 | $ 1,474 |
Portfolio turnover rate G | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Emerging Markets Discovery
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.52 | $ 11.92 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.01) | .11 | .15 |
Net realized and unrealized gain (loss) | (.24) | .74 | 1.76 |
Total from investment operations | (.25) | .85 | 1.91 |
Distributions from net investment income | (.09) | (.07) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.39) | (.27) | (.01) |
Redemption fees added to paid in capital D | - I | .02 | .02 |
Net asset value, end of period | $ 11.88 | $ 12.52 | $ 11.92 |
Total Return B,C | (2.11)% | 7.37% | 19.35% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | 1.51% A | 1.57% | 3.02% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% |
Expenses net of all reductions | 1.45% A | 1.39% | 1.39% |
Net investment income (loss) | (.18)% A | .87% | 1.41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 76,559 | $ 96,731 | $ 39,135 |
Portfolio turnover rate F | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 1, 2011 (commencement of operations) to October 31, 2012.
H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 12.53 | $ 11.92 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | (.01) | .11 | .15 |
Net realized and unrealized gain (loss) | (.24) | .75 | 1.76 |
Total from investment operations | (.25) | .86 | 1.91 |
Distributions from net investment income | (.06) | (.07) | (.01) |
Distributions from net realized gain | (.30) | (.20) | - |
Total distributions | (.36) | (.27) | (.01) |
Redemption fees added to paid in capital D | - I | .02 | .02 |
Net asset value, end of period | $ 11.92 | $ 12.53 | $ 11.92 |
Total Return B,C | (2.10)% | 7.45% | 19.35% |
Ratios to Average Net Assets E,H |
|
|
|
Expenses before reductions | 1.57% A | 1.60% | 3.21% |
Expenses net of fee waivers, if any | 1.45% A | 1.45% | 1.45% |
Expenses net of all reductions | 1.45% A | 1.39% | 1.39% |
Net investment income (loss) | (.18)% A | .87% | 1.41% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 319 | $ 1,076 | $ 1,825 |
Portfolio turnover rate F | 101% A | 179% | 83% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period November 1, 2011 (commencement of operations) to October 31, 2012.
H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Emerging Markets Discovery Fund (the Fund) is a non-diversified fund of Fidelity Investment Trust (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 T, Class C, Emerging Markets Discovery and Institutional Class 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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
Semiannual Report
3. Significant Accounting Policies - continued
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Semiannual Report
3. Significant Accounting Policies - continued
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 7,110,510 |
Gross unrealized depreciation | (5,115,253) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 1,995,257 |
|
|
Tax cost | $ 84,007,684 |
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 2.00% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $46,250,677 and $64,426,614, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .60% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .85% 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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 5,894 | $ 2,002 |
Class T | .25% | .25% | 4,364 | 1,150 |
Class C | .75% | .25% | 9,880 | 4,455 |
|
|
| $ 20,138 | $ 7,607 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,326 |
Class T | 545 |
Class C* | 1,806 |
| $ 3,677 |
* 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.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 7,215 | .31 |
Class T | 2,926 | .34 |
Class C | 3,084 | .31 |
Emerging Markets Discovery | 90,177 | .22 |
Institutional Class | 895 | .26 |
| $ 104,297 |
|
* 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 $57 for the period.
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 $89 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $19,591. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2014. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.70% | $ 3,314 |
Class T | 1.95% | 1,476 |
Class C | 2.45% | 1,447 |
Emerging Markets Discovery | 1.45% | 23,327 |
Institutional Class | 1.45% | 398 |
|
| $ 29,962 |
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $1,566.
Semiannual Report
Fidelity Emerging Markets Discovery Fund
Notes to Financial Statements (Unaudited) - continued
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 23,688 | $ 7,274 |
Class T | 2,475 | 5,643 |
Class C | - | 1,195 |
Emerging Markets Discovery | 646,254 | 259,277 |
Institutional Class | 4,063 | 12,904 |
Total | $ 676,480 | $ 286,293 |
From net realized gain |
|
|
Class A | $ 122,525 | $ 33,559 |
Class T | 43,668 | 33,691 |
Class C | 51,356 | 30,324 |
Emerging Markets Discovery | 2,280,897 | 778,518 |
Institutional Class | 22,163 | 38,774 |
Total | $ 2,520,609 | $ 914,866 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 83,530 | 646,803 | $ 986,688 | $ 8,039,936 |
Reinvestment of distributions | 10,958 | 3,013 | 133,251 | 36,310 |
Shares redeemed | (119,917) | (384,660) | (1,409,035) | (4,712,072) |
Net increase (decrease) | (25,429) | 265,156 | $ (289,096) | $ 3,364,174 |
Class T |
|
|
|
|
Shares sold | 27,340 | 157,097 | $ 320,765 | $ 1,931,892 |
Reinvestment of distributions | 3,566 | 3,232 | 43,325 | 38,882 |
Shares redeemed | (31,884) | (149,702) | (378,271) | (1,831,906) |
Net increase (decrease) | (978) | 10,627 | $ (14,181) | $ 138,868 |
Class C |
|
|
|
|
Shares sold | 29,419 | 428,945 | $ 345,245 | $ 5,224,843 |
Reinvestment of distributions | 4,241 | 2,629 | 51,185 | 31,519 |
Shares redeemed | (53,065) | (387,768) | (614,487) | (4,776,955) |
Net increase (decrease) | (19,405) | 43,806 | $ (218,057) | $ 479,407 |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Emerging Markets Discovery |
|
|
|
|
Shares sold | 1,392,709 | 12,245,350 | $ 16,470,868 | $ 152,132,821 |
Reinvestment of distributions | 205,996 | 72,226 | 2,506,974 | 871,750 |
Shares redeemed | (2,880,409) | (7,876,995) | (33,751,986) | (96,541,547) |
Net increase (decrease) | (1,281,704) | 4,440,581 | $ (14,774,144) | $ 56,463,024 |
Institutional Class |
|
|
|
|
Shares sold | 6,243 | 231,788 | $ 74,200 | $ 2,857,278 |
Reinvestment of distributions | 824 | 3,612 | 10,052 | 43,597 |
Shares redeemed | (66,194) | (302,585) | (780,890) | (3,657,178) |
Net increase (decrease) | (59,127) | (67,185) | $ (696,638) | $ (756,303) |
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, the investment adviser or its affiliates were the owners of record of 10% of the total outstanding shares of the Fund.
Semiannual Report
Fidelity Total Emerging Markets Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 999.90 | $ 8.18 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.61 | $ 8.25 |
Class T | 1.90% |
|
|
|
Actual |
| $ 1,000.00 | $ 999.20 | $ 9.42 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.37 | $ 9.49 |
Class C | 2.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 997.00 | $ 11.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,012.89 | $ 11.98 |
Total Emerging Markets | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.70 | $ 6.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.00 |
Institutional Class | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.20 | $ 6.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.00 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Total Emerging Markets Fund
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 3.1 | 3.6 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 2.6 | 2.4 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 1.7 | 1.6 |
Industrial & Commercial Bank of China Ltd. | 1.2 | 1.4 |
Hyundai Motor Co. Series 2 (Korea (South), Automobiles) | 1.0 | 0.5 |
| 9.6 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 20.1 | 21.9 |
Information Technology | 12.5 | 12.5 |
Energy | 11.9 | 11.4 |
Industrials | 6.7 | 6.3 |
Materials | 6.6 | 7.8 |
Top Five Countries as of April 30, 2014 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Korea (South) | 13.7 | 14.1 |
Brazil | 7.9 | 7.8 |
Cayman Islands | 6.5 | 6.8 |
Taiwan | 5.5 | 5.5 |
India | 5.2 | 5.3 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
Stocks and |
| Stocks and |
| ||||
Bonds 27.3% |
| Bonds 22.2% |
| ||||
Short-Term |
| Short-Term |
|
Semiannual Report
Fidelity Total Emerging Markets Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 62.4% | |||
Shares | Value | ||
Argentina - 0.2% | |||
Grupo Financiero Galicia SA sponsored ADR | 9,370 | $ 126,120 | |
YPF SA Class D sponsored ADR | 770 | 21,914 | |
TOTAL ARGENTINA | 148,034 | ||
Austria - 0.5% | |||
C.A.T. oil AG (Bearer) | 10,431 | 218,519 | |
Erste Group Bank AG | 4,235 | 142,127 | |
TOTAL AUSTRIA | 360,646 | ||
Bailiwick of Jersey - 0.1% | |||
Atrium European Real Estate Ltd. | 14,541 | 83,720 | |
Bermuda - 1.4% | |||
Aquarius Platinum Ltd.: | |||
rights 5/14/14 (a) | 185,042 | 19,769 | |
(Australia) (a) | 92,521 | 33,092 | |
BW Offshore Ltd. | 134,844 | 176,032 | |
Cosan Ltd. Class A | 8,663 | 105,082 | |
Golar LNG Ltd. (NASDAQ) | 2,600 | 114,920 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 76,222 | 126,481 | |
Shangri-La Asia Ltd. | 118,000 | 194,512 | |
Yue Yuen Industrial (Holdings) Ltd. | 76,500 | 236,320 | |
TOTAL BERMUDA | 1,006,208 | ||
Brazil - 3.2% | |||
Anhanguera Educacional Participacoes SA | 31,500 | 194,955 | |
BM&F BOVESPA SA | 41,200 | 210,642 | |
BR Properties SA | 21,980 | 175,564 | |
Cosan SA Industria e Comercio | 6,469 | 110,943 | |
Estacio Participacoes SA | 17,100 | 183,136 | |
Fibria Celulose SA (a) | 16,300 | 162,287 | |
Light SA | 9,864 | 78,744 | |
Localiza Rent A Car SA | 16,100 | 240,444 | |
Mills Estruturas e Servicos de Engenharia SA | 14,800 | 186,647 | |
Minerva SA (a) | 49,000 | 220,195 | |
Smiles SA | 12,400 | 234,959 | |
T4F Entretenimento SA (a) | 27,100 | 61,377 | |
Ultrapar Participacoes SA | 10,500 | 263,613 | |
TOTAL BRAZIL | 2,323,506 | ||
British Virgin Islands - 0.1% | |||
Luxoft Holding, Inc. | 3,300 | 89,067 | |
Common Stocks - continued | |||
Shares | Value | ||
Canada - 0.6% | |||
First Quantum Minerals Ltd. | 5,200 | $ 103,568 | |
Goldcorp, Inc. | 8,100 | 200,052 | |
Pan American Silver Corp. | 9,100 | 117,936 | |
Torex Gold Resources, Inc. (a) | 46,600 | 51,870 | |
TOTAL CANADA | 473,426 | ||
Cayman Islands - 5.5% | |||
58.com, Inc. ADR | 4,950 | 196,911 | |
Anta Sports Products Ltd. | 104,000 | 152,118 | |
Anton Oilfield Services Group | 102,000 | 67,492 | |
Bitauto Holdings Ltd. ADR (a) | 3,100 | 111,073 | |
Bloomage BioTechnology Corp. Ltd. | 17,500 | 47,063 | |
China Liansu Group Holdings Ltd. | 93,000 | 49,421 | |
Cimc Enric Holdings Ltd. | 94,000 | 136,036 | |
Eurasia Drilling Co. Ltd. GDR (Reg. S) | 12,434 | 306,498 | |
GCL-Poly Energy Holdings Ltd. (a) | 1,041,000 | 311,510 | |
Greatview Aseptic Pack Co. Ltd. | 353,000 | 215,362 | |
Haitian International Holdings Ltd. | 54,000 | 108,795 | |
Hengan International Group Co. Ltd. | 20,500 | 215,895 | |
Hilong Holding Ltd. | 260,000 | 135,484 | |
On-Bright Electronics, Inc. | 2,000 | 18,166 | |
Silergy Corp. | 6,000 | 49,726 | |
SINA Corp. (a) | 2,843 | 135,895 | |
Tencent Holdings Ltd. | 19,500 | 1,215,331 | |
Tingyi (Cayman Islands) Holding Corp. | 58,000 | 161,216 | |
Uni-President China Holdings Ltd. | 182,000 | 150,709 | |
Xueda Education Group sponsored ADR | 21,900 | 109,281 | |
Yingde Gases Group Co. Ltd. | 130,000 | 131,292 | |
TOTAL CAYMAN ISLANDS | 4,025,274 | ||
Chile - 1.1% | |||
Banco Santander Chile | 3,142,144 | 189,891 | |
Embotelladora Andina SA ADR | 1,700 | 32,844 | |
Empresa Nacional de Electricidad SA | 112,044 | 165,756 | |
Empresa Nacional de Telecomunicaciones SA (ENTEL) | 9,577 | 117,571 | |
Inversiones La Construccion SA | 11,137 | 146,551 | |
Vina Concha y Toro SA | 60,851 | 127,255 | |
TOTAL CHILE | 779,868 | ||
China - 4.7% | |||
Anhui Conch Cement Co. Ltd. (H Shares) | 42,500 | 157,875 | |
BBMG Corp. (H Shares) | 175,000 | 123,018 | |
China Communications Construction Co. Ltd. (H Shares) | 235,000 | 153,677 | |
Common Stocks - continued | |||
Shares | Value | ||
China - continued | |||
China Life Insurance Co. Ltd. (H Shares) | 135,600 | $ 352,771 | |
China Longyuan Power Grid Corp. Ltd. (H Shares) | 37,500 | 38,598 | |
China Pacific Insurance Group Co. Ltd. (H Shares) | 157,000 | 492,084 | |
China Petroleum & Chemical Corp. sponsored ADR (H Shares) | 1,700 | 151,079 | |
China Suntien Green Energy Corp. Ltd. (H Shares) | 267,000 | 90,229 | |
China Telecom Corp. Ltd. (H Shares) | 622,057 | 318,238 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 1,438,000 | 859,231 | |
Maanshan Iron & Steel Ltd. (H Shares) (a) | 558,000 | 116,596 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 197,900 | 260,873 | |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 32,560 | 240,852 | |
Sinopec Engineering Group Co. Ltd. (H Shares) (e) | 88,500 | 98,854 | |
TOTAL CHINA | 3,453,975 | ||
Colombia - 0.3% | |||
BanColombia SA sponsored ADR | 3,971 | 226,069 | |
Denmark - 1.0% | |||
Auriga Industries A/S Series B (a) | 3,681 | 136,156 | |
Vestas Wind Systems A/S (a) | 13,049 | 579,201 | |
TOTAL DENMARK | 715,357 | ||
France - 0.6% | |||
Technip SA | 3,829 | 430,816 | |
Hong Kong - 0.8% | |||
China Resources Power Holdings Co. Ltd. | 28,791 | 72,414 | |
China Unicom Ltd. | 186,200 | 285,451 | |
Far East Horizon Ltd. | 221,000 | 149,653 | |
Sinotruk Hong Kong Ltd. | 190,000 | 100,723 | |
TOTAL HONG KONG | 608,241 | ||
India - 5.2% | |||
Axis Bank Ltd. | 21,329 | 538,937 | |
Bharti Airtel Ltd. | 42,518 | 231,253 | |
Bharti Infratel Ltd. (a) | 88,869 | 317,742 | |
Coal India Ltd. | 26,915 | 130,235 | |
Eicher Motors Ltd. | 1,777 | 182,701 | |
Grasim Industries Ltd. | 3,629 | 160,313 | |
Hindalco Industries Ltd. | 53,254 | 118,578 | |
Indiabulls Real Estate Ltd. | 99,707 | 102,823 | |
ITC Ltd. | 71,786 | 405,556 | |
JK Cement Ltd. | 16,915 | 63,675 | |
Lupin Ltd. | 11,847 | 202,151 | |
Mundra Port and SEZ Ltd. | 73,373 | 228,945 | |
Common Stocks - continued | |||
Shares | Value | ||
India - continued | |||
Petronet LNG Ltd. | 98,003 | $ 235,279 | |
Phoenix Mills Ltd. (a) | 40,562 | 166,982 | |
Power Grid Corp. of India Ltd. | 83,004 | 145,599 | |
SREI Infrastructure Finance Ltd. | 313,747 | 174,261 | |
State Bank of India | 11,305 | 389,598 | |
TOTAL INDIA | 3,794,628 | ||
Indonesia - 1.6% | |||
PT AKR Corporindo Tbk | 246,200 | 101,576 | |
PT Bakrieland Development Tbk (a) | 19,207,200 | 83,065 | |
PT Bank Rakyat Indonesia Tbk | 361,900 | 309,892 | |
PT Bank Tabungan Negara Tbk | 1,117,700 | 111,659 | |
PT Kalbe Farma Tbk | 1,357,700 | 181,434 | |
PT Lippo Karawaci Tbk | 1,207,000 | 111,706 | |
PT Telkomunikasi Indonesia Tbk: | |||
Series B | 112,100 | 22,033 | |
sponsored ADR | 6,160 | 244,552 | |
TOTAL INDONESIA | 1,165,917 | ||
Israel - 0.2% | |||
Bezeq The Israeli Telecommunication Corp. Ltd. | 74,400 | 134,804 | |
Kenya - 0.2% | |||
Equity Bank Ltd. | 349,500 | 153,642 | |
Korea (South) - 11.9% | |||
AMOREPACIFIC Group, Inc. | 657 | 339,597 | |
Daewoo International Corp. | 13,656 | 479,170 | |
Daou Technology, Inc. | 5,880 | 81,959 | |
E-Mart Co. Ltd. | 1,535 | 350,654 | |
GS Retail Co. Ltd. | 7,940 | 220,577 | |
Hana Financial Group, Inc. | 14,920 | 524,966 | |
Hankook Shell Oil Co. Ltd. | 196 | 88,789 | |
Hyundai Industrial Development & Construction Co. | 6,250 | 178,770 | |
Hyundai Mobis | 1,248 | 356,365 | |
KB Financial Group, Inc. | 10,490 | 358,920 | |
Korea Electric Power Corp. | 6,357 | 243,106 | |
KEPCO Plant Service & Engineering Co. Ltd. | 2,367 | 153,966 | |
Korea Zinc Co. Ltd. | 449 | 147,986 | |
Korean Reinsurance Co. | 20,138 | 198,827 | |
KT&G Corp. | 3,246 | 260,158 | |
LG Chemical Ltd. | 1,314 | 334,510 | |
LG Corp. | 3,541 | 197,084 | |
Naver Corp. | 815 | 582,200 | |
Common Stocks - continued | |||
Shares | Value | ||
Korea (South) - continued | |||
Oci Co. Ltd. | 1,041 | $ 182,384 | |
Samsung C&T Corp. | 4,134 | 259,300 | |
Samsung Electronics Co. Ltd. | 1,766 | 2,295,740 | |
Seoul Semiconductor Co. Ltd. | 3,376 | 135,452 | |
Shinhan Financial Group Co. Ltd. | 11,720 | 511,659 | |
SK Hynix, Inc. (a) | 1,820 | 70,732 | |
SK Telecom Co. Ltd. sponsored ADR | 7,785 | 179,756 | |
TOTAL KOREA (SOUTH) | 8,732,627 | ||
Malaysia - 0.1% | |||
Petronas Dagangan Bhd | 10,000 | 92,874 | |
Mexico - 3.5% | |||
America Movil S.A.B. de CV Series L sponsored ADR | 20,043 | 402,463 | |
CEMEX S.A.B. de CV sponsored ADR | 20,108 | 254,165 | |
El Puerto de Liverpool S.A.B. de CV Class C | 18,400 | 189,489 | |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 3,350 | 304,080 | |
Gruma S.A.B. de CV Series B (a) | 19,000 | 167,856 | |
Grupo Comercial Chedraui S.A.B. de CV | 54,600 | 166,311 | |
Grupo Financiero Banorte S.A.B. de CV Series O | 58,700 | 389,142 | |
Grupo Televisa SA de CV (CPO) sponsored ADR | 17,400 | 570,894 | |
Macquarie Mexican (REIT) | 51,000 | 96,833 | |
TOTAL MEXICO | 2,541,233 | ||
Netherlands - 0.1% | |||
SBM Offshore NV (a) | 4,500 | 82,190 | |
Nigeria - 1.2% | |||
Guaranty Trust Bank PLC | 476,380 | 77,781 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 36,030 | 302,652 | |
Zenith Bank PLC | 3,761,199 | 531,461 | |
TOTAL NIGERIA | 911,894 | ||
Norway - 0.6% | |||
ElectroMagnetic GeoServices ASA (a) | 60,740 | 72,549 | |
Spectrum ASA | 7,281 | 57,569 | |
Statoil ASA | 4,200 | 128,039 | |
TGS Nopec Geophysical Co. ASA | 4,282 | 147,673 | |
TOTAL NORWAY | 405,830 | ||
Panama - 0.3% | |||
Copa Holdings SA Class A | 1,680 | 227,270 | |
Peru - 0.0% | |||
Alicorp SA Class C | 459 | 1,390 | |
Common Stocks - continued | |||
Shares | Value | ||
Philippines - 1.5% | |||
Alliance Global Group, Inc. | 323,600 | $ 226,139 | |
LT Group, Inc. | 381,500 | 156,623 | |
Metro Pacific Investments Corp. | 449,000 | 51,070 | |
Metropolitan Bank & Trust Co. | 147,334 | 279,959 | |
Robinsons Land Corp. | 804,400 | 402,426 | |
TOTAL PHILIPPINES | 1,116,217 | ||
Poland - 0.5% | |||
Cyfrowy Polsat SA | 23,500 | 159,505 | |
Powszechny Zaklad Ubezpieczen SA | 1,495 | 211,931 | |
TOTAL POLAND | 371,436 | ||
Portugal - 0.2% | |||
Banco Espirito Santo SA (Reg.) (a) | 62,800 | 111,172 | |
Puerto Rico - 0.1% | |||
Popular, Inc. (a) | 3,230 | 99,807 | |
Romania - 0.1% | |||
SNGN Romgaz SA GDR (e) | 6,769 | 73,105 | |
Russia - 1.6% | |||
Bashneft OJSC (a) | 813 | 48,376 | |
E.ON Russia JSC | 2,450,400 | 171,745 | |
Gazprom OAO sponsored: | |||
ADR | 18,332 | 132,357 | |
ADR (Reg. S) | 25,000 | 180,300 | |
LUKOIL Oil Co. sponsored ADR (United Kingdom) | 2,200 | 116,270 | |
Mobile TeleSystems OJSC | 27,726 | 201,184 | |
NOVATEK OAO GDR (Reg. S) | 1,400 | 144,620 | |
Sberbank (Savings Bank of the Russian Federation) | 84,050 | 171,049 | |
TOTAL RUSSIA | 1,165,901 | ||
Singapore - 0.9% | |||
Ezion Holdings Ltd. | 140,200 | 253,852 | |
First Resources Ltd. | 197,000 | 403,837 | |
TOTAL SINGAPORE | 657,689 | ||
South Africa - 3.4% | |||
Aspen Pharmacare Holdings Ltd. | 11,787 | 313,674 | |
Barclays Africa Group Ltd. | 11,602 | 169,831 | |
Bidvest Group Ltd. | 9,869 | 270,634 | |
Impala Platinum Holdings Ltd. (a) | 14,300 | 160,935 | |
JSE Ltd. | 10,950 | 100,440 | |
Life Healthcare Group Holdings Ltd. | 54,000 | 214,399 | |
Common Stocks - continued | |||
Shares | Value | ||
South Africa - continued | |||
MTN Group Ltd. (g) | 30,249 | $ 606,130 | |
Naspers Ltd. Class N | 7,000 | 660,045 | |
TOTAL SOUTH AFRICA | 2,496,088 | ||
Taiwan - 5.5% | |||
Cathay Financial Holding Co. Ltd. | 172,000 | 242,900 | |
Chipbond Technology Corp. | 44,000 | 75,265 | |
E.SUN Financial Holdings Co. Ltd. | 204,000 | 123,419 | |
E.SUN Financial Holdings Co. Ltd. rights 5/6/14 (a) | 18,582 | 2,002 | |
ECLAT Textile Co. Ltd. | 14,660 | 160,375 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 20,950 | 60,144 | |
King Slide Works Co. Ltd. | 300 | 3,908 | |
MediaTek, Inc. | 46,000 | 719,763 | |
Taiwan Fertilizer Co. Ltd. | 119,300 | 237,291 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 324,000 | 1,274,483 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 30,242 | 607,864 | |
Unified-President Enterprises Corp. | 169,739 | 287,536 | |
Universal Cement Corp. | 83,000 | 79,518 | |
Voltronic Power Technology Corp. | 1,000 | 6,514 | |
Yuanta Financial Holding Co. Ltd. | 297,300 | 148,327 | |
TOTAL TAIWAN | 4,029,309 | ||
Thailand - 1.0% | |||
Jasmine International Public Co. Ltd. | 462,800 | 118,703 | |
Kasikornbank PCL (For. Reg.) | 46,560 | 282,727 | |
Thai Union Frozen Products PCL (For. Reg.) | 117,900 | 255,037 | |
Total Access Communication PCL NVDR | 28,500 | 109,649 | |
TOTAL THAILAND | 766,116 | ||
Togo - 0.3% | |||
Ecobank Transnational, Inc. | 2,707,486 | 227,520 | |
Turkey - 0.9% | |||
Aygaz A/S | 4,650 | 19,159 | |
Tupras Turkiye Petrol Rafinelleri A/S | 14,000 | 314,935 | |
Turkiye Halk Bankasi A/S | 49,200 | 328,536 | |
TOTAL TURKEY | 662,630 | ||
United Arab Emirates - 0.2% | |||
First Gulf Bank PJSC | 23,177 | 109,482 | |
Common Stocks - continued | |||
Shares | Value | ||
United Kingdom - 0.1% | |||
John Wood Group PLC | 8 | $ 106 | |
Mondi PLC | 5,200 | 86,260 | |
TOTAL UNITED KINGDOM | 86,366 | ||
United States of America - 1.1% | |||
Cognizant Technology Solutions Corp. Class A (a) | 6,020 | 288,388 | |
Facebook, Inc. Class A (a) | 4,506 | 269,369 | |
InvenSense, Inc. (a) | 10,311 | 221,996 | |
TOTAL UNITED STATES OF AMERICA | 779,753 | ||
TOTAL COMMON STOCKS (Cost $38,477,937) |
| ||
Nonconvertible Preferred Stocks - 7.0% | |||
|
|
|
|
Brazil - 4.4% | |||
Ambev SA sponsored ADR | 27,400 | 198,650 | |
Banco do Estado Rio Grande do Sul SA | 38,320 | 214,994 | |
Braskem SA (PN-A) | 28,500 | 194,538 | |
Companhia Paranaense de Energia-Copel: | |||
(PN-B) | 415 | 5,947 | |
(PN-B) sponsored | 8,095 | 116,163 | |
Gerdau SA sponsored | 43,500 | 261,435 | |
Itau Unibanco Holding SA sponsored ADR | 45,520 | 744,707 | |
Petroleo Brasileiro SA - Petrobras: | |||
(PN) sponsored (non-vtg.) | 11,206 | 165,849 | |
sponsored ADR | 29,521 | 409,751 | |
Telefonica Brasil SA | 5,110 | 107,345 | |
TIM Participacoes SA sponsored ADR | 2,300 | 61,893 | |
Vale SA (PN-A) sponsored ADR | 62,300 | 739,501 | |
TOTAL BRAZIL | 3,220,773 | ||
Chile - 0.2% | |||
Embotelladora Andina SA Class A | 35,643 | 114,335 | |
Korea (South) - 1.8% | |||
Hyundai Motor Co. Series 2 | 5,326 | 747,527 | |
Samsung Electronics Co. Ltd. | 301 | 302,136 | |
Samsung Fire & Marine Insurance Co. Ltd. | 1,669 | 243,137 | |
TOTAL KOREA (SOUTH) | 1,292,800 | ||
Russia - 0.6% | |||
Bashneft OJSC (a) | 1,200 | 52,258 | |
Nonconvertible Preferred Stocks - continued | |||
Shares | Value | ||
Russia - continued | |||
Sberbank (Savings Bank of the Russian Federation) | 158,100 | $ 266,984 | |
Surgutneftegas | 213,550 | 148,661 | |
TOTAL RUSSIA | 467,903 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $5,120,455) |
|
Nonconvertible Bonds - 9.4% | ||||
| Principal Amount (c) |
| ||
Argentina - 0.1% | ||||
YPF SA 8.875% 12/19/18 (e) | $ 45,000 | 46,856 | ||
Canada - 0.6% | ||||
Pacific Rubiales Energy Corp. 7.25% 12/12/21 (e) | 400,000 | 437,000 | ||
Cayman Islands - 1.0% | ||||
Brazil Minas SPE 5.333% 2/15/28 (e) | 250,000 | 245,313 | ||
Odebrecht Finance Ltd. 7.5% (e)(f) | 475,000 | 486,875 | ||
TOTAL CAYMAN ISLANDS | 732,188 | |||
Costa Rica - 0.3% | ||||
Instituto Costarricense de Electricidad 6.95% 11/10/21 (e) | 200,000 | 209,500 | ||
Georgia - 0.4% | ||||
Georgia Bank Joint Stock Co. 7.75% 7/5/17 (e) | 300,000 | 319,500 | ||
Indonesia - 0.2% | ||||
PT Pertamina Persero 5.625% 5/20/43 (e) | 200,000 | 169,750 | ||
Kazakhstan - 1.1% | ||||
KazMunaiGaz Finance Sub BV 7% 5/5/20 (e) | 150,000 | 168,563 | ||
KazMunaiGaz National Co. 5.75% 4/30/43 (e) | 300,000 | 271,521 | ||
Zhaikmunai International BV 7.125% 11/13/19 (e) | 400,000 | 409,000 | ||
TOTAL KAZAKHSTAN | 849,084 | |||
Luxembourg - 0.3% | ||||
Millicom International Cellular SA 4.75% 5/22/20 (e) | 200,000 | 193,000 | ||
Mexico - 1.6% | ||||
America Movil S.A.B. de CV 6.45% 12/5/22 | MXN | 9,750,000 | 698,529 | |
Petroleos Mexicanos: | ||||
4.875% 1/18/24 | 275,000 | 284,556 | ||
6.375% 1/23/45 (e) | 175,000 | 192,185 | ||
TOTAL MEXICO | 1,175,270 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Morocco - 0.3% | ||||
OCP SA 6.875% 4/25/44 (e) | $ 200,000 | $ 200,020 | ||
Netherlands - 0.4% | ||||
Indosat Palapa Co. BV 7.375% 7/29/20 (e) | 100,000 | 108,000 | ||
Mozambique Ematum Finance 2020 6.305% 9/11/20 (Reg. S) | 200,000 | 192,800 | ||
TOTAL NETHERLANDS | 300,800 | |||
Nigeria - 0.3% | ||||
Zenith Bank PLC 6.25% 4/22/19 (e) | 200,000 | 200,000 | ||
Paraguay - 0.3% | ||||
Banco Regl Saeca 8.125% 1/24/19 (e) | 200,000 | 214,250 | ||
Trinidad & Tobago - 0.3% | ||||
Petroleum Co. of Trinidad & Tobago Ltd. 9.75% 8/14/19 (e) | 150,000 | 189,750 | ||
Turkey - 0.5% | ||||
Arcelik A/S 5% 4/3/23 (e) | 200,000 | 187,900 | ||
Finansbank A/S 5.5% 5/11/16 (Reg. S) | 200,000 | 202,500 | ||
TOTAL TURKEY | 390,400 | |||
Venezuela - 1.7% | ||||
Petroleos de Venezuela SA: | ||||
5.5% 4/12/37 | 500,000 | 278,000 | ||
6% 11/15/26 (Reg. S) | 700,000 | 412,125 | ||
8.5% 11/2/17 (e) | 250,000 | 225,000 | ||
9% 11/17/21 (Reg. S) | 150,000 | 122,438 | ||
9.75% 5/17/35 (e) | 300,000 | 228,900 | ||
TOTAL VENEZUELA | 1,266,463 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $6,909,931) |
| |||
Government Obligations - 18.0% | ||||
| ||||
Armenia - 0.6% | ||||
Republic of Armenia 6% 9/30/20 (e) | 400,000 | 409,500 | ||
Azerbaijan - 0.7% | ||||
Azerbaijan Rep 4.75% 3/18/24 (e) | 200,000 | 201,540 | ||
State Oil Co. of Azerbaijan Republic 4.75% 3/13/23 (Reg. S) | 325,000 | 313,381 | ||
TOTAL AZERBAIJAN | 514,921 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Barbados - 0.3% | ||||
Barbados Government 7% 8/4/22 (e) | $ 200,000 | $ 186,000 | ||
Belarus - 0.4% | ||||
Belarus Republic 8.75% 8/3/15 (Reg. S) | 325,000 | 326,359 | ||
Belize - 0.3% | ||||
Belize Government 5% 2/20/38 (d)(e) | 332,500 | 229,758 | ||
Bolivia - 0.3% | ||||
Plurinational State of Bolivia 4.875% 10/29/22 (e) | 200,000 | 199,250 | ||
Brazil - 0.3% | ||||
Brazilian Federative Republic 4.25% 1/7/25 | 250,000 | 248,125 | ||
Congo - 0.4% | ||||
Congo Republic 3.5% 6/30/29 (d) | 319,366 | 288,227 | ||
Costa Rica - 0.3% | ||||
Costa Rican Republic 7% 4/4/44 (e) | 200,000 | 199,000 | ||
Croatia - 0.3% | ||||
Croatia Republic 6% 1/26/24 (e) | 200,000 | 208,250 | ||
Dominican Republic - 0.5% | ||||
Dominican Republic: | ||||
5.875% 4/18/24 (e) | 150,000 | 149,250 | ||
7.45% 4/30/44 (e) | 200,000 | 201,471 | ||
TOTAL DOMINICAN REPUBLIC | 350,721 | |||
Ecuador - 0.6% | ||||
Ecuador Republic 9.375% 12/15/15 (e) | 386,000 | 412,538 | ||
El Salvador - 0.2% | ||||
El Salvador Republic 7.625% 2/1/41 (e) | 150,000 | 154,950 | ||
Ghana - 0.2% | ||||
Ghana Republic 7.875% 8/7/23 (Reg.S) | 200,000 | 185,000 | ||
Guatemala - 0.3% | ||||
Guatemalan Republic 4.875% 2/13/28 (e) | 200,000 | 194,000 | ||
Honduras - 0.3% | ||||
Republic of Honduras 7.5% 3/15/24 (e) | 200,000 | 198,500 | ||
Hungary - 1.3% | ||||
Hungarian Republic: | ||||
6.375% 3/29/21 | 508,000 | 565,150 | ||
7.625% 3/29/41 | 350,000 | 419,125 | ||
TOTAL HUNGARY | 984,275 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Indonesia - 0.6% | ||||
Indonesian Republic: | ||||
5.875% 1/15/24 (e) | $ 225,000 | $ 243,563 | ||
6.75% 1/15/44 (e) | 200,000 | 222,000 | ||
TOTAL INDONESIA | 465,563 | |||
Iraq - 0.6% | ||||
Republic of Iraq 5.8% 1/15/28 (Reg. S) | 500,000 | 446,250 | ||
Ivory Coast - 0.3% | ||||
Ivory Coast 7.7743% 12/31/32 (d) | 275,000 | 258,555 | ||
Jamaica - 0.2% | ||||
Jamaican Government 8% 6/24/19 | 150,000 | 157,875 | ||
Jordan - 0.4% | ||||
Jordanian Kingdom 3.875% 11/12/15 | 300,000 | 300,750 | ||
Lebanon - 0.4% | ||||
Lebanese Republic 11.625% 5/11/16 (Reg. S) | 250,000 | 286,250 | ||
Mongolia - 0.2% | ||||
Mongolian People's Republic 5.125% 12/5/22 (Reg. S) | 200,000 | 168,500 | ||
Morocco - 0.3% | ||||
Moroccan Kingdom 5.5% 12/11/42 (e) | 200,000 | 187,000 | ||
Namibia - 0.3% | ||||
Republic of Namibia 5.5% 11/3/21 (e) | 200,000 | 209,750 | ||
Netherlands - 0.4% | ||||
Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S) | 250,000 | 271,250 | ||
Pakistan - 0.3% | ||||
Islamic Republic of Pakistan 7.25% 4/15/19 (e) | 200,000 | 200,250 | ||
Panama - 0.2% | ||||
Panamanian Republic 4.3% 4/29/53 | 200,000 | 167,750 | ||
Peru - 0.4% | ||||
Peruvian Republic 8.75% 11/21/33 | 200,000 | 300,500 | ||
Philippines - 0.4% | ||||
Philippine Republic 10.625% 3/16/25 | 175,000 | 273,875 | ||
Romania - 0.6% | ||||
Romanian Republic: | ||||
6.125% 1/22/44 (e) | 200,000 | 219,250 | ||
6.75% 2/7/22 (e) | 190,000 | 224,913 | ||
TOTAL ROMANIA | 444,163 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Russia - 0.5% | ||||
Russian Federation 12.75% 6/24/28 (Reg. S) | $ 225,000 | $ 360,000 | ||
Senegal - 0.3% | ||||
Republic of Senegal 8.75% 5/13/21 (e) | 200,000 | 226,000 | ||
Serbia - 0.4% | ||||
Republic of Serbia 7.25% 9/28/21 (e) | 260,000 | 288,925 | ||
Slovenia - 0.6% | ||||
Republic of Slovenia: | ||||
4.75% 5/10/18 (e) | 200,000 | 211,750 | ||
5.85% 5/10/23 (e) | 200,000 | 217,500 | ||
TOTAL SLOVENIA | 429,250 | |||
Sri Lanka - 0.4% | ||||
Democratic Socialist Republic of Sri Lanka 6.25% 10/4/20 (e) | 300,000 | 311,625 | ||
Tanzania - 0.3% | ||||
United Republic of Tanzania 6.332% 3/9/20 (i) | 200,000 | 209,500 | ||
Turkey - 0.4% | ||||
Turkish Republic 11.875% 1/15/30 | 165,000 | 275,550 | ||
United States of America - 0.1% | ||||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.05% 5/8/14 to 6/19/14 (h) | 80,000 | 79,999 | ||
Venezuela - 1.6% | ||||
Venezuelan Republic: | ||||
7% 3/31/38 | 650,000 | 437,125 | ||
7.65% 4/21/25 | 600,000 | 444,000 | ||
8.25% 10/13/24 | 300,000 | 231,000 | ||
9% 5/7/23 (Reg. S) | 100,000 | 81,850 | ||
TOTAL VENEZUELA | 1,193,975 | |||
Vietnam - 0.3% | ||||
Vietnamese Socialist Republic 6.75% 1/29/20 (e) | 200,000 | 225,500 | ||
Zambia - 0.2% | ||||
Republic of Zambia 5.375% 9/20/22 (e) | 200,000 | 177,000 | ||
TOTAL GOVERNMENT OBLIGATIONS (Cost $12,770,155) |
|
Money Market Funds - 3.3% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 2,404,661 | $ 2,404,661 | |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $65,683,139) | 73,320,379 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (60,965) | ||
NET ASSETS - 100% | $ 73,259,414 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
11 NYSE E-mini MSCI Emerging Markets Index Contracts (United States) | June 2014 | $ 546,975 | $ (7,649) |
|
The face value of futures purchased as a percentage of net assets is 0.7% |
Currency Abbreviations | ||
MXN | - | Mexican peso |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Amount is stated in United States dollars unless otherwise noted. |
(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(e) 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 $10,983,875 or 15.0% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $49,999. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
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 | $ 728 |
Fidelity Securities Lending Cash Central Fund | 14 |
Total | $ 742 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 4,210,858 | $ 4,210,858 | $ - | $ - |
Consumer Staples | 4,540,311 | 4,540,311 | - | - |
Energy | 5,268,258 | 5,039,585 | 128,039 | 100,634 |
Financials | 13,449,855 | 10,826,335 | 2,623,520 | - |
Health Care | 911,658 | 709,507 | 202,151 | - |
Industrials | 4,169,775 | 4,169,775 | - | - |
Information Technology | 9,113,170 | 7,838,687 | 1,274,483 | - |
Materials | 4,637,025 | 4,476,712 | 160,313 | - |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Telecommunication Services | $ 3,458,767 | $ 2,833,045 | $ 625,722 | $ - |
Utilities | 1,057,231 | 814,125 | 243,106 | - |
Corporate Bonds | 6,893,831 | - | 6,893,831 | - |
Government Obligations | 13,204,979 | - | 13,204,979 | - |
Money Market Funds | 2,404,661 | 2,404,661 | - | - |
Total Investments in Securities: | $ 73,320,379 | $ 47,863,601 | $ 25,356,144 | $ 100,634 |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (7,649) | $ (7,649) | $ - | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 1,836,662 |
Level 2 to Level 1 | $ 0 |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (7,649) |
Total Value of Derivatives | $ - | $ (7,649) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
AAA,AA,A | 0.9% |
BBB | 7.7% |
BB | 7.5% |
B | 6.2% |
CCC,CC,C | 3.4% |
Not Rated | 1.6% |
Other Investments | 69.4% |
Short-Term Investments and Net Other Assets | 3.3% |
| 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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $63,278,478) | $ 70,915,718 |
|
Fidelity Central Funds (cost $2,404,661) | 2,404,661 |
|
Total Investments (cost $65,683,139) |
| $ 73,320,379 |
Cash |
| 115,817 |
Foreign currency held at value (cost $16,635) | 16,635 | |
Receivable for investments sold | 632,823 | |
Receivable for fund shares sold | 56,692 | |
Dividends receivable | 101,929 | |
Interest receivable | 354,516 | |
Distributions receivable from Fidelity Central Funds | 153 | |
Prepaid expenses | 50 | |
Receivable from investment adviser for expense reductions | 21,746 | |
Other receivables | 24,803 | |
Total assets | 74,645,543 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 959,693 | |
Delayed delivery | 38,966 | |
Payable for fund shares redeemed | 90,709 | |
Accrued management fee | 48,958 | |
Distribution and service plan fees payable | 12,137 | |
Payable for daily variation margin for derivative instruments | 1,485 | |
Other affiliated payables | 15,865 | |
Other payables and accrued expenses | 218,316 | |
Total liabilities | 1,386,129 | |
|
|
|
Net Assets | $ 73,259,414 | |
Net Assets consist of: |
| |
Paid in capital | $ 67,566,653 | |
Undistributed net investment income | 355,652 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,228,157) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 7,565,266 | |
Net Assets | $ 73,259,414 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.19 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.19) | $ 11.87 | |
Class T: | $ 11.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.19) | $ 11.60 | |
Class C: | $ 11.15 | |
|
|
|
Total Emerging Markets: | $ 11.22 | |
|
|
|
Institutional Class: | $ 11.21 |
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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 559,290 |
Interest |
| 643,409 |
Income from Fidelity Central Funds |
| 742 |
Income before foreign taxes withheld |
| 1,203,441 |
Less foreign taxes withheld |
| (59,635) |
Total income |
| 1,143,806 |
|
|
|
Expenses | ||
Management fee | $ 316,060 | |
Transfer agent fees | 82,389 | |
Distribution and service plan fees | 73,539 | |
Accounting and security lending fees | 20,450 | |
Custodian fees and expenses | 167,027 | |
Independent trustees' compensation | 161 | |
Registration fees | 29,057 | |
Audit | 56,585 | |
Legal | 204 | |
Miscellaneous | 3,357 | |
Total expenses before reductions | 748,829 | |
Expense reductions | (122,257) | 626,572 |
Net investment income (loss) | 517,234 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,333,309 | |
Foreign currency transactions | (27,292) | |
Futures contracts | (17,786) | |
Total net realized gain (loss) |
| 1,288,231 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $56,761) | (2,168,530) | |
Assets and liabilities in foreign currencies | 689 | |
Futures contracts | 1,358 | |
Total change in net unrealized appreciation (depreciation) |
| (2,166,483) |
Net gain (loss) | (878,252) | |
Net increase (decrease) in net assets resulting from operations | $ (361,018) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 517,234 | $ 1,900,179 |
Net realized gain (loss) | 1,288,231 | (1,878,240) |
Change in net unrealized appreciation (depreciation) | (2,166,483) | 1,872,247 |
Net increase (decrease) in net assets resulting from operations | (361,018) | 1,894,186 |
Distributions to shareholders from net investment income | (1,381,318) | (1,561,667) |
Distributions to shareholders from net realized gain | - | (137,352) |
Total distributions | (1,381,318) | (1,699,019) |
Share transactions - net increase (decrease) | (12,572,643) | (15,755,086) |
Redemption fees | 20,754 | 87,191 |
Total increase (decrease) in net assets | (14,294,225) | (15,472,728) |
|
|
|
Net Assets | ||
Beginning of period | 87,553,639 | 103,026,367 |
End of period (including undistributed net investment income of $355,652 and undistributed net investment income of $1,219,736, respectively) | $ 73,259,414 | $ 87,553,639 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.37 | $ 10.86 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .07 | .18 | .20 |
Net realized and unrealized gain (loss) | (.07) | .48 H | .68 |
Total from investment operations | - | .66 | .88 |
Distributions from net investment income | (.18) | (.15) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.18) | (.16) | (.02) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.19 | $ 11.37 | $ 10.86 |
Total Return B,C,D | (.01)% | 6.23% | 8.80% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 1.97% A | 1.89% | 1.87% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% |
Expenses net of all reductions | 1.65% A | 1.62% | 1.62% |
Net investment income (loss) | 1.25% A | 1.61% | 1.92% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 13,617 | $ 18,837 | $ 7,675 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.34 | $ 10.84 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .05 | .15 | .17 |
Net realized and unrealized gain (loss) | (.06) | .48 H | .68 |
Total from investment operations | (.01) | .63 | .85 |
Distributions from net investment income | (.14) | (.12) | (.01) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.14) | (.14) L | (.01) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.19 | $ 11.34 | $ 10.84 |
Total Return B,C,D | (.08)% | 5.93% | 8.56% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 2.30% A | 2.13% | 2.10% |
Expenses net of fee waivers, if any | 1.90% A | 1.90% | 1.90% |
Expenses net of all reductions | 1.90% A | 1.88% | 1.87% |
Net investment income (loss) | 1.00% A | 1.36% | 1.67% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 5,207 | $ 5,967 | $ 5,823 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
L Total distributions of $.14 per share is comprised of distributions from net investment income of $.124 and distributions from net realized gain of $.014 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.29 | $ 10.80 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .03 | .09 | .12 |
Net realized and unrealized gain (loss) | (.06) | .47 H | .69 |
Total from investment operations | (.03) | .56 | .81 |
Distributions from net investment income | (.11) | (.07) | (.01) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.11) | (.08) | (.01) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.15 | $ 11.29 | $ 10.80 |
Total Return B,C,D | (.30)% | 5.31% | 8.07% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 2.72% A | 2.65% | 2.63% |
Expenses net of fee waivers, if any | 2.40% A | 2.40% | 2.40% |
Expenses net of all reductions | 2.40% A | 2.37% | 2.37% |
Net investment income (loss) | .50% A | .86% | 1.17% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 8,590 | $ 7,436 | $ 5,824 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Total Emerging Markets
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.40 | $ 10.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .08 | .21 | .22 |
Net realized and unrealized gain (loss) | (.06) | .47 G | .69 |
Total from investment operations | .02 | .68 | .91 |
Distributions from net investment income | (.20) | (.17) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.20) | (.18) | (.02) |
Redemption fees added to paid in capital D | - J | .01 | - J |
Net asset value, end of period | $ 11.22 | $ 11.40 | $ 10.89 |
Total Return B,C | .17% | 6.44% | 9.15% |
Ratios to Average Net Assets E,I |
|
|
|
Expenses before reductions | 1.70% A | 1.56% | 1.60% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.38% | 1.38% |
Net investment income (loss) | 1.50% A | 1.85% | 2.16% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 42,091 | $ 49,959 | $ 81,416 |
Portfolio turnover rate F | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.40 | $ 10.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .08 | .20 | .22 |
Net realized and unrealized gain (loss) | (.07) | .48 G | .69 |
Total from investment operations | .01 | .68 | .91 |
Distributions from net investment income | (.20) | (.17) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.20) | (.18) | (.02) |
Redemption fees added to paid in capital D | - J | .01 | - J |
Net asset value, end of period | $ 11.21 | $ 11.40 | $ 10.89 |
Total Return B,C | .12% | 6.44% | 9.15% |
Ratios to Average Net Assets E,I |
|
|
|
Expenses before reductions | 1.69% A | 1.63% | 1.62% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.37% | 1.37% |
Net investment income (loss) | 1.49% A | 1.86% | 2.17% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 3,755 | $ 5,354 | $ 2,287 |
Portfolio turnover rate F | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Total Emerging Markets Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Total Emerging Markets and Institutional Class 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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. In accordance with valuation policies and procedures
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 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. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 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 April 30, 2014, including information on transfers between Levels 1 and 2, 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
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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 futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 9,992,601 |
Gross unrealized depreciation | (2,644,222) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 7,348,379 |
|
|
Tax cost | $ 65,972,000 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration |
|
Short-term | $ (2,949,184) |
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 1.50% 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.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Futures Contracts - continued
During the period the Fund recognized net realized gain (loss) of $(17,786) and a change in net unrealized appreciation (depreciation) of $1,358 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,228,990 and $49,654,155, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% 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 .80% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 19,924 | $ 10,041 |
Class T | .25% | .25% | 14,022 | 8,155 |
Class C | .75% | .25% | 39,593 | 35,369 |
|
|
| $ 73,539 | $ 53,565 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,959 |
Class T | 800 |
Class C* | 917 |
| $ 3,676 |
* 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 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 A | $ 16,716 | .21 |
Class T | 8,307 | .30 |
Class C | 8,632 | .22 |
Total Emerging Markets | 44,033 | .20 |
Institutional Class | 4,701 | .19 |
| $ 82,389 |
|
* 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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
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 $516 for the period.
7. 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 $76 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. 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. 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 $14. During the period, there were no securities loaned to FCM.
Semiannual Report
9. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2014. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.65% | $ 25,128 |
Class T | 1.90% | 11,065 |
Class C | 2.40% | 12,428 |
Total Emerging Markets | 1.40% | 66,128 |
Institutional Class | 1.40% | 7,352 |
|
| $ 122,101 |
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $156.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 298,475 | $ 104,565 |
Class T | 72,882 | 69,282 |
Class C | 71,691 | 35,970 |
Total Emerging Markets | 837,446 | 1,316,259 |
Institutional Class | 100,824 | 35,591 |
Total | $ 1,381,318 | $ 1,561,667 |
From net realized gain |
|
|
Class A | $ - | $ 10,027 |
Class T | - | 7,822 |
Class C | - | 7,516 |
Total Emerging Markets | - | 109,039 |
Institutional Class | - | 2,948 |
Total | $ - | $ 137,352 |
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 205,590 | 1,550,621 | $ 2,266,614 | $ 17,267,543 |
Reinvestment of distributions | 24,147 | 9,656 | 267,553 | 105,541 |
Shares redeemed | (670,399) | (609,546) | (7,319,781) | (6,666,165) |
Net increase (decrease) | (440,662) | 950,731 | $ (4,785,614) | $ 10,706,919 |
Class T |
|
|
|
|
Shares sold | 36,849 | 277,882 | $ 407,171 | $ 3,114,089 |
Reinvestment of distributions | 6,487 | 7,041 | 71,876 | 76,883 |
Shares redeemed | (104,259) | (295,695) | (1,136,301) | (3,268,261) |
Net increase (decrease) | (60,923) | (10,772) | $ (657,254) | $ (77,289) |
Class C |
|
|
|
|
Shares sold | 158,417 | 431,831 | $ 1,732,158 | $ 4,824,945 |
Reinvestment of distributions | 6,236 | 3,973 | 69,031 | 43,420 |
Shares redeemed | (52,735) | (316,804) | (574,763) | (3,521,280) |
Net increase (decrease) | 111,918 | 119,000 | $ 1,226,426 | $ 1,347,085 |
Total Emerging Markets |
|
|
|
|
Shares sold | 476,556 | 5,085,608 | $ 5,271,798 | $ 57,439,168 |
Reinvestment of distributions | 69,851 | 113,766 | 774,644 | 1,243,462 |
Shares redeemed | (1,177,597) | (8,294,710) | (12,948,433) | (89,232,029) |
Net increase (decrease) | (631,190) | (3,095,336) | $ (6,901,991) | $ (30,549,399) |
Institutional Class |
|
|
|
|
Shares sold | 99,056 | 491,268 | $ 1,096,301 | $ 5,357,985 |
Reinvestment of distributions | 8,910 | 3,526 | 98,814 | 38,539 |
Shares redeemed | (242,879) | (235,091) | (2,649,325) | (2,578,926) |
Net increase (decrease) | (134,913) | 259,703 | $ (1,454,210) | $ 2,817,598 |
12. 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
Semiannual Report
12. Other - continued
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, the investment adviser or its affiliates were the owners of record of 33% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management &
Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
EMD-TEK-USAN-0614 1.931239.102
Fidelity®
Emerging Markets
Fund -
Class K
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Emerging Markets Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management 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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Emerging Markets | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 988.10 | $ 5.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Class K | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 989.30 | $ 4.24 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.53 | $ 4.31 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Emerging Markets Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
India | 9.9% |
| |
Brazil | 9.5% |
| |
Korea (South) | 8.9% |
| |
Cayman Islands | 8.7% |
| |
South Africa | 7.6% |
| |
Indonesia | 5.8% |
| |
Mexico | 5.7% |
| |
Taiwan | 5.4% |
| |
Philippines | 4.2% |
| |
Other* | 34.3% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Brazil | 11.7% |
| |
India | 11.4% |
| |
Korea (South) | 8.1% |
| |
Cayman Islands | 7.6% |
| |
South Africa | 6.8% |
| |
Mexico | 6.1% |
| |
Indonesia | 5.5% |
| |
United States of America* | 4.2% |
| |
Russia | 3.9% |
| |
Other | 34.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 99.5 | 99.6 |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5 | 0.4 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 4.6 | 4.6 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.0 | 2.6 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.1 | 1.7 |
Hyundai Motor Co. (Korea (South), Automobiles) | 1.5 | 1.4 |
Itau Unibanco Holding SA sponsored ADR (Brazil, Banks) | 1.5 | 1.4 |
Naspers Ltd. Class N (South Africa, Media) | 1.4 | 1.2 |
Ambev SA sponsored ADR (Brazil, Beverages) | 1.3 | 0.0 |
MTN Group Ltd. (South Africa, Wireless Telecommunication Services) | 1.1 | 0.0 |
Housing Development Finance Corp. Ltd. (India, Thrifts & Mortgage Finance) | 1.0 | 1.0 |
Naver Corp. (Korea (South), Internet Software & Services) | 0.9 | 0.0 |
| 18.4 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 21.1 | 20.6 |
Financials | 20.9 | 26.7 |
Information Technology | 18.1 | 14.5 |
Industrials | 15.3 | 13.1 |
Consumer Staples | 10.3 | 11.2 |
Health Care | 6.1 | 3.9 |
Materials | 3.5 | 5.8 |
Telecommunication Services | 2.3 | 0.4 |
Energy | 1.3 | 2.9 |
Utilities | 0.6 | 0.5 |
Semiannual Report
Fidelity Emerging Markets Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.3% | |||
Shares | Value | ||
Australia - 1.0% | |||
iProperty Group Ltd. (a) | 3,505,485 | $ 8,467,149 | |
SEEK Ltd. | 575,079 | 8,932,633 | |
Sydney Airport unit | 2,285,696 | 8,960,797 | |
TOTAL AUSTRALIA | 26,360,579 | ||
Bailiwick of Jersey - 0.4% | |||
WPP PLC | 480,500 | 10,360,352 | |
Bermuda - 1.2% | |||
Brilliance China Automotive Holdings Ltd. | 8,460,000 | 13,072,547 | |
Credicorp Ltd. (United States) | 135,632 | 20,243,076 | |
TOTAL BERMUDA | 33,315,623 | ||
Brazil - 6.7% | |||
BB Seguridade Participacoes SA | 1,428,800 | 16,743,825 | |
CCR SA | 2,045,200 | 16,005,714 | |
Cielo SA | 1,174,760 | 20,810,862 | |
Estacio Participacoes SA | 1,285,400 | 13,766,275 | |
Iguatemi Empresa de Shopping Centers SA | 1,221,800 | 12,148,136 | |
Kroton Educacional SA | 634,100 | 13,582,068 | |
Linx SA | 420,700 | 9,180,967 | |
Multiplan Empreendimentos Imobiliarios SA | 552,567 | 12,212,356 | |
Odontoprev SA | 2,700,300 | 10,838,742 | |
Qualicorp SA (a) | 1,246,700 | 12,116,152 | |
Souza Cruz SA | 1,437,767 | 13,121,901 | |
Ultrapar Participacoes SA | 682,900 | 17,144,856 | |
Weg SA | 1,164,195 | 14,050,224 | |
TOTAL BRAZIL | 181,722,078 | ||
British Virgin Islands - 0.4% | |||
Mail.Ru Group Ltd. GDR (a)(e) | 418,300 | 11,365,211 | |
Canada - 0.4% | |||
Valeant Pharmaceuticals International (Canada) (a) | 71,600 | 9,574,757 | |
Cayman Islands - 8.7% | |||
51job, Inc. sponsored ADR (a)(d) | 159,991 | 10,789,793 | |
Airtac International Group | 973,000 | 10,466,874 | |
Autohome, Inc. ADR Class A (d) | 289,500 | 9,272,685 | |
Baidu.com, Inc. sponsored ADR (a) | 83,190 | 12,798,782 | |
Baoxin Auto Group Ltd. | 256,000 | 193,165 | |
Biostime International Holdings Ltd. | 1,596,000 | 10,601,642 | |
Bitauto Holdings Ltd. ADR (a) | 351,935 | 12,609,831 | |
Cimc Enric Holdings Ltd. | 6,858,000 | 9,924,836 | |
ENN Energy Holdings Ltd. | 2,154,000 | 15,058,371 | |
Ginko International Co. Ltd. | 340,000 | 5,714,475 | |
Greatview Aseptic Pack Co. Ltd. | 17,580,000 | 10,725,388 | |
Haitian International Holdings Ltd. | 4,435,000 | 8,935,270 | |
Melco Crown Entertainment Ltd. sponsored ADR | 259,800 | 8,879,964 | |
MGM China Holdings Ltd. | 2,595,600 | 9,039,295 | |
Sands China Ltd. | 1,427,000 | 10,417,738 | |
| |||
Shares | Value | ||
Shenzhou International Group Holdings Ltd. | 3,157,000 | $ 10,872,236 | |
SouFun Holdings Ltd. ADR | 881,565 | 10,376,020 | |
Tencent Holdings Ltd. | 918,700 | 57,257,668 | |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 289,922 | 9,857,348 | |
TOTAL CAYMAN ISLANDS | 233,791,381 | ||
Chile - 0.0% | |||
Quinenco SA | 19,344 | 42,853 | |
China - 1.7% | |||
China Pacific Insurance Group Co. Ltd. (H Shares) | 5,013,200 | 15,712,827 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 8,778,700 | 11,572,152 | |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 2,676,500 | 19,798,564 | |
TOTAL CHINA | 47,083,543 | ||
Colombia - 0.6% | |||
Grupo de Inversiones Suramerica SA | 777,755 | 15,172,965 | |
Denmark - 0.4% | |||
Novo Nordisk A/S Series B sponsored ADR | 225,799 | 10,249,017 | |
Finland - 0.4% | |||
Kone Oyj (B Shares) (d) | 252,940 | 10,815,241 | |
France - 1.6% | |||
Bureau Veritas SA | 337,500 | 10,301,074 | |
LVMH Moet Hennessy - Louis Vuitton SA | 52,724 | 10,368,536 | |
Pernod Ricard SA | 90,616 | 10,875,701 | |
Safran SA | 156,600 | 10,525,113 | |
TOTAL FRANCE | 42,070,424 | ||
Greece - 1.2% | |||
Folli Follie SA (a) | 311,552 | 10,805,792 | |
Greek Organization of Football Prognostics SA | 763,300 | 12,178,089 | |
Jumbo SA | 620,690 | 10,031,981 | |
TOTAL GREECE | 33,015,862 | ||
Hong Kong - 0.8% | |||
AIA Group Ltd. | 2,267,000 | 10,994,421 | |
Galaxy Entertainment Group Ltd. | 1,267,000 | 9,944,208 | |
TOTAL HONG KONG | 20,938,629 | ||
India - 9.9% | |||
Axis Bank Ltd. | 462,135 | 11,677,135 | |
Bajaj Auto Ltd. | 393,876 | 12,486,943 | |
Grasim Industries Ltd. | 196,409 | 8,676,471 | |
Havells India Ltd. | 632,375 | 9,765,300 | |
HCL Technologies Ltd. | 574,010 | 13,351,217 | |
HDFC Bank Ltd. | 1,760,985 | 22,036,410 | |
Housing Development Finance Corp. Ltd. | 1,849,886 | 27,540,498 | |
ITC Ltd. | 3,533,529 | 19,962,696 | |
Larsen & Toubro Ltd. | 704,714 | 15,120,126 | |
Common Stocks - continued | |||
Shares | Value | ||
India - continued | |||
Lupin Ltd. | 651,882 | $ 11,123,378 | |
Mahindra & Mahindra Ltd. | 852,522 | 15,183,273 | |
Mundra Port and SEZ Ltd. | 3,746,838 | 11,691,203 | |
Sun Pharmaceutical Industries Ltd. | 1,574,506 | 16,519,065 | |
Tata Consultancy Services Ltd. | 641,519 | 23,284,646 | |
Tata Motors Ltd. | 2,264,772 | 15,666,020 | |
Titan Co. Ltd. | 2,400,181 | 10,924,959 | |
Yes Bank Ltd. | 1,656,044 | 12,101,490 | |
Zee Entertainment Enterprises Ltd. | 2,396,184 | 10,432,528 | |
TOTAL INDIA | 267,543,358 | ||
Indonesia - 5.8% | |||
PT ACE Hardware Indonesia Tbk | 155,032,300 | 9,989,972 | |
PT Astra International Tbk | 27,785,700 | 17,844,468 | |
PT Bank Central Asia Tbk | 20,406,100 | 19,415,050 | |
PT Bank Rakyat Indonesia Tbk | 22,111,100 | 18,933,520 | |
PT Global Mediacom Tbk | 60,533,500 | 11,466,364 | |
PT Indocement Tunggal Prakarsa Tbk | 6,279,500 | 11,921,898 | |
PT Jasa Marga Tbk | 22,395,900 | 11,428,950 | |
PT Kalbe Farma Tbk | 94,006,400 | 12,562,374 | |
PT Media Nusantara Citra Tbk | 43,259,200 | 10,158,606 | |
PT Semen Gresik (Persero) Tbk | 9,880,800 | 12,691,249 | |
PT Surya Citra Media Tbk | 42,748,000 | 11,646,949 | |
PT Tower Bersama Infrastructure Tbk | 17,044,500 | 9,582,602 | |
TOTAL INDONESIA | 157,642,002 | ||
Italy - 0.7% | |||
Pirelli & C. S.p.A. | 510,300 | 8,552,214 | |
Prada SpA | 1,403,200 | 11,203,230 | |
TOTAL ITALY | 19,755,444 | ||
Japan - 0.8% | |||
Japan Tobacco, Inc. | 314,900 | 10,337,012 | |
SoftBank Corp. | 149,800 | 11,121,260 | |
TOTAL JAPAN | 21,458,272 | ||
Kenya - 1.2% | |||
East African Breweries Ltd. | 3,012,953 | 10,145,905 | |
Kenya Commercial Bank Ltd. | 16,474,900 | 9,277,900 | |
Safaricom Ltd. | 80,839,300 | 12,170,955 | |
TOTAL KENYA | 31,594,760 | ||
Korea (South) - 8.9% | |||
Grand Korea Leisure Co. Ltd. | 239,160 | 9,965,965 | |
Hotel Shilla Co. | 105,090 | 8,839,726 | |
Hyundai Mobis | 81,520 | 23,277,901 | |
Hyundai Motor Co. | 176,877 | 39,378,289 | |
KEPCO Plant Service & Engineering Co. Ltd. | 149,977 | 9,755,546 | |
Naver Corp. | 34,323 | 24,518,802 | |
Samsung Electronics Co. Ltd. | 96,524 | 125,478,398 | |
TOTAL KOREA (SOUTH) | 241,214,627 | ||
| |||
Shares | Value | ||
Luxembourg - 0.5% | |||
Brait SA | 2,327,865 | $ 12,539,338 | |
Malaysia - 0.9% | |||
Astro Malaysia Holdings Bhd | 9,376,500 | 9,570,497 | |
Public Bank Bhd | 2,352,800 | 14,524,258 | |
TOTAL MALAYSIA | 24,094,755 | ||
Mexico - 5.7% | |||
Alfa SA de CV Series A | 5,467,500 | 14,397,231 | |
Banregio Grupo Financiero S.A.B. de CV | 1,717,293 | 9,924,865 | |
El Puerto de Liverpool S.A.B. de CV Class C | 826,398 | 8,510,489 | |
Fomento Economico Mexicano S.A.B. de CV unit | 2,418,893 | 22,074,230 | |
Gruma S.A.B. de CV Series B (a) | 1,329,264 | 11,743,428 | |
Grupo Aeroportuario del Pacifico SA de CV Series B | 2,032,857 | 12,225,655 | |
Grupo Aeroportuario del Sureste SA de CV Series B | 990,200 | 12,116,047 | |
Grupo Aeroportuario Norte S.A.B. de CV | 2,165,900 | 7,958,175 | |
Grupo Financiero Banorte S.A.B. de CV Series O | 3,159,500 | 20,945,400 | |
Grupo Televisa SA de CV | 3,547,357 | 23,269,892 | |
Megacable Holdings S.A.B. de CV unit | 2,439,452 | 9,675,578 | |
TOTAL MEXICO | 152,840,990 | ||
Netherlands - 0.4% | |||
Yandex NV (a) | 374,303 | 9,919,030 | |
Nigeria - 1.2% | |||
Dangote Cement PLC | 6,694,667 | 9,418,373 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 1,480,077 | 12,432,647 | |
Nigerian Breweries PLC | 10,656,739 | 9,950,270 | |
TOTAL NIGERIA | 31,801,290 | ||
Panama - 0.4% | |||
Copa Holdings SA Class A | 77,776 | 10,521,537 | |
Philippines - 4.2% | |||
Alliance Global Group, Inc. | 19,043,100 | 13,307,741 | |
Ayala Corp. | 833,330 | 11,665,685 | |
DMCI Holdings, Inc. | 7,847,640 | 12,640,730 | |
GT Capital Holdings, Inc. | 511,680 | 9,952,363 | |
International Container Terminal Services, Inc. | 2,372,810 | 5,754,364 | |
LT Group, Inc. | 27,944,300 | 11,472,365 | |
Metropolitan Bank & Trust Co. | 6,127,968 | 11,644,170 | |
Security Bank Corp. | 4,411,880 | 11,887,084 | |
SM Investments Corp. | 801,592 | 13,037,671 | |
SM Prime Holdings, Inc. | 35,546,700 | 13,014,518 | |
TOTAL PHILIPPINES | 114,376,691 | ||
Russia - 2.4% | |||
Magnit OJSC GDR (Reg. S) | 425,734 | 20,030,785 | |
Common Stocks - continued | |||
Shares | Value | ||
Russia - continued | |||
NOVATEK OAO GDR (Reg. S) | 185,300 | $ 19,141,490 | |
Sberbank (Savings Bank of the Russian Federation) | 11,952,100 | 24,323,572 | |
TOTAL RUSSIA | 63,495,847 | ||
South Africa - 7.6% | |||
Aspen Pharmacare Holdings Ltd. | 693,290 | 18,449,732 | |
Bidvest Group Ltd. | 624,639 | 17,129,257 | |
Clicks Group Ltd. | 1,815,527 | 11,070,392 | |
Discovery Holdings Ltd. | 1,576,674 | 13,667,855 | |
Life Healthcare Group Holdings Ltd. | 3,722,564 | 14,779,858 | |
Mr Price Group Ltd. | 914,488 | 13,760,130 | |
MTN Group Ltd. | 1,497,400 | 30,004,933 | |
Nampak Ltd. | 3,615,100 | 13,470,075 | |
Naspers Ltd. Class N | 409,612 | 38,623,174 | |
Remgro Ltd. | 833,100 | 16,760,193 | |
Shoprite Holdings Ltd. | 995,658 | 16,627,266 | |
TOTAL SOUTH AFRICA | 204,342,865 | ||
Sweden - 0.7% | |||
Atlas Copco AB (A Shares) (d) | 351,000 | 10,159,361 | |
Investment AB Kinnevik (B Shares) | 239,300 | 8,409,469 | |
TOTAL SWEDEN | 18,568,830 | ||
Switzerland - 1.4% | |||
Compagnie Financiere Richemont SA Series A | 104,176 | 10,570,295 | |
Dufry AG (a)(d) | 49,980 | 8,257,121 | |
SGS SA (Reg.) | 4,100 | 10,225,543 | |
Swatch Group AG (Bearer) | 15,800 | 10,134,189 | |
TOTAL SWITZERLAND | 39,187,148 | ||
Taiwan - 5.4% | |||
Delta Electronics, Inc. | 2,585,000 | 15,853,376 | |
ECLAT Textile Co. Ltd. | 839,000 | 9,178,366 | |
Giant Manufacturing Co. Ltd. | 1,392,000 | 10,890,322 | |
HIWIN Technologies Corp. | 1,001,000 | 9,523,694 | |
Merida Industry Co. Ltd. | 1,653,000 | 11,069,135 | |
St.Shine Optical Co. Ltd. | 468,000 | 9,913,709 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 20,384,000 | 80,182,321 | |
TOTAL TAIWAN | 146,610,923 | ||
Thailand - 2.5% | |||
Airports of Thailand PCL (For. Reg.) | 2,138,700 | 12,887,716 | |
Bangkok Dusit Medical Service PCL (For. Reg.) | 22,949,000 | 10,495,834 | |
Central Pattana PCL (For. Reg.) | 8,216,100 | 11,488,830 | |
Kasikornbank PCL (For. Reg.) | 3,409,800 | 20,705,368 | |
Minor International PCL (For. Reg.) | 14,573,100 | 11,078,438 | |
TOTAL THAILAND | 66,656,186 | ||
| |||
Shares | Value | ||
Togo - 0.1% | |||
Ecobank Transnational, Inc. | 27,958,935 | $ 2,349,490 | |
Turkey - 2.0% | |||
Anadolu Hayat Sigorta A/S | 1,993,428 | 4,172,741 | |
Coca-Cola Icecek Sanayi A/S | 492,327 | 11,529,715 | |
Enka Insaat ve Sanayi A/S | 4,180,349 | 12,670,424 | |
TAV Havalimanlari Holding A/S | 1,612,000 | 12,901,802 | |
Tofas Turk Otomobil Fabrikasi A/S | 2,012,758 | 12,296,454 | |
TOTAL TURKEY | 53,571,136 | ||
United Arab Emirates - 0.4% | |||
First Gulf Bank PJSC | 2,112,578 | 9,979,234 | |
United Kingdom - 4.1% | |||
Aberdeen Asset Management PLC | 1,333,300 | 9,832,996 | |
Alabama Noor Hospitals Group PLC | 555,910 | 9,367,213 | |
British American Tobacco PLC (United Kingdom) | 195,700 | 11,300,695 | |
Burberry Group PLC | 401,000 | 10,054,169 | |
Diageo PLC | 325,297 | 9,967,041 | |
Intertek Group PLC | 209,818 | 10,294,700 | |
Johnson Matthey PLC | 168,934 | 9,335,518 | |
Meggitt PLC | 1,120,800 | 9,020,874 | |
Mondi PLC | 634,060 | 10,518,123 | |
Prudential PLC | 465,215 | 10,694,891 | |
Rolls-Royce Group PLC | 611,245 | 10,836,274 | |
TOTAL UNITED KINGDOM | 111,222,494 | ||
United States of America - 3.6% | |||
Colgate-Palmolive Co. | 171,428 | 11,537,104 | |
FMC Corp. | 141,524 | 10,897,348 | |
Google, Inc. Class C (a) | 16,950 | 8,926,887 | |
Kansas City Southern | 109,136 | 11,009,640 | |
MasterCard, Inc. Class A | 149,900 | 11,025,145 | |
Mead Johnson Nutrition Co. Class A | 130,188 | 11,490,393 | |
Philip Morris International, Inc. | 124,787 | 10,660,553 | |
Visa, Inc. Class A | 51,700 | 10,474,937 | |
Yahoo!, Inc. (a) | 320,000 | 11,504,000 | |
TOTAL UNITED STATES OF AMERICA | 97,526,007 | ||
TOTAL COMMON STOCKS (Cost $2,298,701,664) |
| ||
Nonconvertible Preferred Stocks - 3.2% | |||
|
|
|
|
Brazil - 2.8% | |||
Ambev SA sponsored ADR | 4,789,670 | 34,725,108 | |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 18,159 | 863,642 | |
Itau Unibanco Holding SA sponsored ADR | 2,405,126 | 39,347,861 | |
TOTAL BRAZIL | 74,936,611 | ||
Colombia - 0.4% | |||
Grupo Aval Acciones y Valores SA | 14,681,180 | 9,931,113 | |
Nonconvertible Preferred Stocks - continued | |||
Shares | Value | ||
United Kingdom - 0.0% | |||
Rolls-Royce Group PLC (C Shares) | 86,047,430 | $ 145,282 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $88,473,435) |
| ||
Money Market Funds - 1.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 21,013,404 | 21,013,404 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 17,454,405 | 17,454,405 | |
TOTAL MONEY MARKET FUNDS (Cost $38,467,809) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $2,425,642,908) | 2,718,171,584 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (22,997,138) | ||
NET ASSETS - 100% | $ 2,695,174,446 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $11,365,211 or 0.4% of net assets. |
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 | $ 8,034 |
Fidelity Securities Lending Cash Central Fund | 100,907 |
Total | $ 108,941 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 567,467,902 | $ 530,516,571 | $ 36,951,331 | $ - |
Consumer Staples | 280,087,844 | 258,820,108 | 21,267,736 | - |
Energy | 36,286,346 | 36,286,346 | - | - |
Financials | 565,774,266 | 521,365,830 | 44,408,436 | - |
Health Care | 161,561,654 | 150,438,276 | 11,123,378 | - |
Industrials | 406,275,265 | 406,275,265 | - | - |
Information Technology | 486,657,934 | 406,475,613 | 80,182,321 | - |
Materials | 97,654,443 | 88,977,972 | 8,676,471 | - |
Telecommunication Services | 62,879,750 | 62,879,750 | - | - |
Utilities | 15,058,371 | 15,058,371 | - | - |
Money Market Funds | 38,467,809 | 38,467,809 | - | - |
Total Investments in Securities: | $ 2,718,171,584 | $ 2,515,561,911 | $ 202,609,673 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 40,035,725 |
Level 2 to Level 1 | $ 9,972,223 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $16,469,030) - See accompanying schedule: Unaffiliated issuers (cost $2,387,175,099) | $ 2,679,703,775 |
|
Fidelity Central Funds (cost $38,467,809) | 38,467,809 |
|
Total Investments (cost $2,425,642,908) |
| $ 2,718,171,584 |
Foreign currency held at value (cost $1,027,451) | 1,020,520 | |
Receivable for investments sold | 34,889,643 | |
Receivable for fund shares sold | 1,598,667 | |
Dividends receivable | 5,599,165 | |
Distributions receivable from Fidelity Central Funds | 17,628 | |
Prepaid expenses | 1,706 | |
Other receivables | 1,764,032 | |
Total assets | 2,763,062,945 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 41,853,567 | |
Payable for fund shares redeemed | 1,300,905 | |
Accrued management fee | 1,585,020 | |
Other affiliated payables | 589,382 | |
Other payables and accrued expenses | 5,105,220 | |
Collateral on securities loaned, at value | 17,454,405 | |
Total liabilities | 67,888,499 | |
|
|
|
Net Assets | $ 2,695,174,446 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,483,403,201 | |
Undistributed net investment income | 5,239,757 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (80,891,857) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 287,423,345 | |
Net Assets | $ 2,695,174,446 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Emerging Markets: | $ 24.12 | |
|
|
|
Class K: | $ 24.13 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 23,958,483 |
Interest |
| 74 |
Income from Fidelity Central Funds |
| 108,941 |
Income before foreign taxes withheld |
| 24,067,498 |
Less foreign taxes withheld |
| (2,544,603) |
Total income |
| 21,522,895 |
|
|
|
Expenses | ||
Management fee | $ 9,364,559 | |
Transfer agent fees | 2,970,795 | |
Accounting and security lending fees | 582,454 | |
Custodian fees and expenses | 742,486 | |
Independent trustees' compensation | 5,318 | |
Registration fees | 49,313 | |
Audit | 65,257 | |
Legal | 6,193 | |
Interest | 1,559 | |
Miscellaneous | 96,497 | |
Total expenses before reductions | 13,884,431 | |
Expense reductions | (14,065) | 13,870,366 |
Net investment income (loss) | 7,652,529 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (26,972,719) | |
Foreign currency transactions | (1,018,763) | |
Total net realized gain (loss) |
| (27,991,482) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $3,290,254) | (17,462,012) | |
Assets and liabilities in foreign currencies | 249,702 | |
Total change in net unrealized appreciation (depreciation) |
| (17,212,310) |
Net gain (loss) | (45,203,792) | |
Net increase (decrease) in net assets resulting from operations | $ (37,551,263) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 7,652,529 | $ 24,555,630 |
Net realized gain (loss) | (27,991,482) | 275,022,620 |
Change in net unrealized appreciation (depreciation) | (17,212,310) | 15,366,762 |
Net increase (decrease) in net assets resulting from operations | (37,551,263) | 314,945,012 |
Distributions to shareholders from net investment income | (2,412,291) | (39,208,001) |
Share transactions - net increase (decrease) | (53,875,180) | (299,270,748) |
Redemption fees | 306,696 | 565,621 |
Total increase (decrease) in net assets | (93,532,038) | (22,968,116) |
|
|
|
Net Assets | ||
Beginning of period | 2,788,706,484 | 2,811,674,600 |
End of period (including undistributed net investment income of $5,239,757 and distributions in excess of net investment income of $481, respectively) | $ 2,695,174,446 | $ 2,788,706,484 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Emerging Markets
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.43 | $ 22.15 | $ 22.23 | $ 25.72 | $ 20.68 | $ 13.71 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .20 | .33 | .35 | .23 | .17 |
Net realized and unrealized gain (loss) | (.35) | 2.38 | (.11) | (3.48) | 5.05 | 7.03 |
Total from investment operations | (.29) | 2.58 | .22 | (3.13) | 5.28 | 7.20 |
Distributions from net investment income | (.02) | (.30) | (.30) | (.24) | (.12) | (.24) |
Distributions from net realized gain | - | - | - | (.13) | (.14) | - |
Total distributions | (.02) | (.30) | (.30) | (.37) | (.25) I | (.24) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 24.12 | $ 24.43 | $ 22.15 | $ 22.23 | $ 25.72 | $ 20.68 |
Total Return B, C | (1.19)% | 11.78% | 1.03% | (12.33)% | 25.76% | 53.95% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.08% A | 1.08% | 1.09% | 1.07% | 1.14% | 1.16% |
Expenses net of fee waivers, if any | 1.08% A | 1.08% | 1.09% | 1.07% | 1.14% | 1.16% |
Expenses net of all reductions | 1.08% A | 1.03% | 1.03% | 1.01% | 1.09% | 1.10% |
Net investment income (loss) | .53% A | .85% | 1.50% | 1.38% | 1.00% | 1.09% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $2,159,453 | $ 2,241,338 | $ 2,203,756 | $ 2,907,884 | $ 3,975,342 | $ 3,649,582 |
Portfolio turnover rate F | 98% A | 119% | 176% | 122% | 85% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.25 per share is comprised of distributions from net investment income of $.116 and distributions from net realized gain of $.135 per share. |
Financial Highlights - Class K
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.42 | $ 22.15 | $ 22.23 | $ 25.75 | $ 20.69 | $ 13.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .09 | .25 | .37 | .40 | .28 | .22 |
Net realized and unrealized gain (loss) | (.35) | 2.38 | (.10) | (3.48) | 5.05 | 7.02 |
Total from investment operations | (.26) | 2.63 | .27 | (3.08) | 5.33 | 7.24 |
Distributions from net investment income | (.03) | (.36) | (.35) | (.32) | (.15) | (.28) |
Distributions from net realized gain | - | - | - | (.13) | (.14) | - |
Total distributions | (.03) | (.36) | (.35) | (.45) | (.28) I | (.28) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 24.13 | $ 24.42 | $ 22.15 | $ 22.23 | $ 25.75 | $ 20.69 |
Total Return B, C | (1.07)% | 12.01% | 1.25% | (12.17)% | 26.03% | 54.44% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .86% A | .87% | .87% | .87% | .90% | .91% |
Expenses net of fee waivers, if any | .86% A | .87% | .87% | .87% | .90% | .91% |
Expenses net of all reductions | .86% A | .82% | .81% | .80% | .84% | .84% |
Net investment income (loss) | .75% A | 1.07% | 1.72% | 1.58% | 1.24% | 1.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 535,721 | $ 547,369 | $ 607,919 | $ 497,821 | $ 888,629 | $ 270,075 |
Portfolio turnover rate F | 98% A | 119% | 176% | 122% | 85% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.28 per share is comprised of distributions from net investment income of $.148 and distributions from net realized gain of $.135 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Emerging Markets Fund (the Fund) is a fund of Fidelity Investment Trust (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 Emerging Markets and Class K shares, each of which has equal rights as to assets and voting privileges. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 371,977,854 |
Gross unrealized depreciation | (93,366,465) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 278,611,389 |
|
|
Tax cost | $ 2,439,560,195 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (36,593,468) |
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,303,168,976 and $1,359,861,470, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% of the Fund's average net assets.
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 Emerging Markets. FIIOC receives an asset-based fee of Class K's average net assets. 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 |
Emerging Markets | $ 2,850,527 | .27 |
Class K | 120,268 | .05 |
| $ 2,970,795 |
|
* 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 $2,286 for the period.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 11,284,563 | .31% | $ 1,559 |
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 $2,493 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $100,907. 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 uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $132.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $13,933.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Emerging Markets | $ 1,743,197 | $ 29,610,169 |
Class K | 669,094 | 9,597,832 |
Total | $ 2,412,291 | $ 39,208,001 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Emerging Markets |
|
|
|
|
Shares sold | 10,818,352 | 23,439,766 | $ 256,057,724 | $ 534,752,122 |
Reinvestment of distributions | 57,239 | 1,145,115 | 1,363,275 | 25,804,455 |
Shares redeemed | (13,093,103) | (32,317,744) | (306,912,890) | (744,356,372) |
Net increase (decrease) | (2,217,512) | (7,732,863) | $ (49,491,891) | $ (183,799,795) |
Class K |
|
|
|
|
Shares sold | 3,524,529 | 6,249,509 | $ 83,751,528 | $ 144,545,998 |
Reinvestment of distributions | 28,063 | 426,903 | 669,094 | 9,597,831 |
Shares redeemed | (3,763,224) | (11,706,525) | (88,803,911) | (269,614,782) |
Net increase (decrease) | (210,632) | (5,030,113) | $ (4,383,289) | $ (115,470,953) |
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.
Semiannual Report
Investments
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
FIL Investments (Japan) Limited
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodians
JPMorgan Chase Bank
New York, NY
Fidelity's International Equity Funds
Fidelity Canada Fund
Fidelity China Region Fund
Fidelity Diversified International Fund
Fidelity Emerging Asia Fund
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
Fidelity Emerging Markets Fund
Fidelity Europe Capital Appreciation Fund
Fidelity Europe Fund
Fidelity Global Balanced Fund
Fidelity Global Commodity Stock Fund
Fidelity International Capital Appreciation Fund
Fidelity International Discovery Fund
Fidelity International Growth Fund
Fidelity International Small Cap Fund
Fidelity International Small Cap Opportunities Fund
Fidelity International Value Fund
Fidelity Japan Fund
Fidelity Japan Smaller Companies Fund
Fidelity Latin America Fund
Fidelity Nordic Fund
Fidelity Overseas Fund
Fidelity Pacific Basin Fund
Fidelity Total International Equity Fund
Fidelity Worldwide Fund
Corporate Headquarters
245 Summer St.,
Boston, MA 02210
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
EMF-K-USAN-0614 1.863017.105
Fidelity Advisor®
Europe Fund -
Class A, Class T, Class B and Class C
Semiannual Report
April 30, 2014
Class A, Class T, Class B, and Class C are classes of Fidelity® Europe Fund
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Distributions |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Europe Fund
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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014) for Europe, and for the period (March 18, 2014 to April 30, 2014) for Class A, Class T, Class B, Class C and Institutional Class. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.50 | $ 1.57 C |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.46 D |
Class T | 1.57% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.00 | $ 1.91 C |
HypotheticalA |
| $ 1,000.00 | $ 1,017.01 | $ 7.85 D |
Class B | 2.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.50 | $ 2.50 C |
HypotheticalA |
| $ 1,000.00 | $ 1,014.63 | $ 10.24 D |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.50 | $ 2.47 C |
HypotheticalA |
| $ 1,000.00 | $ 1,014.73 | $ 10.14 D |
Europe | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,077.80 | $ 4.95 C |
HypotheticalA |
| $ 1,000.00 | $ 1,020.03 | $ 4.81 D |
Institutional Class | .95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.80 | $ 1.16 C |
HypotheticalA |
| $ 1,000.00 | $ 1,020.08 | $ 4.76 D |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Actual 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) for Europe, and multiplied by 44/365 (to reflect the period March 18, 2014 to April 30, 2014) for Class A, Class T, Class B, Class C and Institutional Class.
D Hypothetical 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).
Semiannual Report
Fidelity Europe Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
United Kingdom | 30.4% |
| |
Germany | 14.5% |
| |
France | 13.4% |
| |
Switzerland | 11.7% |
| |
United States of America* | 4.2% |
| |
Sweden | 3.4% |
| |
Ireland | 3.0% |
| |
Italy | 2.9% |
| |
Belgium | 2.9% |
| |
Other | 13.6% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
United Kingdom | 30.5% |
| |
France | 14.7% |
| |
Germany | 13.2% |
| |
Switzerland | 12.8% |
| |
United States of America* | 4.7% |
| |
Italy | 3.5% |
| |
Finland | 3.0% |
| |
Ireland | 2.9% |
| |
Belgium | 2.8% |
| |
Other | 11.9% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 97.2 | 97.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 2.8 | 2.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Nestle SA (Switzerland, Food Products) | 3.7 | 3.6 |
Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 3.2 | 3.3 |
Total SA (France, Oil, Gas & Consumable Fuels) | 2.8 | 2.5 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 2.2 | 2.2 |
GlaxoSmithKline PLC (United Kingdom, Pharmaceuticals) | 2.1 | 2.1 |
Bayer AG (Germany, Pharmaceuticals) | 1.8 | 1.7 |
BHP Billiton PLC (United Kingdom, Metals & Mining) | 1.7 | 1.5 |
BASF AG (Germany, Chemicals) | 1.7 | 1.7 |
Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.7 | 1.6 |
Royal Dutch Shell PLC Class B (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 1.6 | 1.8 |
| 22.5 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 22.1 | 19.9 |
Consumer Staples | 13.8 | 15.9 |
Consumer Discretionary | 13.5 | 14.9 |
Industrials | 13.5 | 15.1 |
Health Care | 12.3 | 11.5 |
Materials | 8.5 | 6.5 |
Energy | 7.9 | 6.9 |
Telecommunication Services | 3.0 | 3.5 |
Information Technology | 1.6 | 2.3 |
Utilities | 1.0 | 0.8 |
Semiannual Report
Fidelity Europe Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
Austria - 1.1% | |||
Andritz AG | 137,700 | $ 8,546,089 | |
Erste Group Bank AG | 248,647 | 8,344,593 | |
TOTAL AUSTRIA | 16,890,682 | ||
Bailiwick of Jersey - 0.3% | |||
Informa PLC | 578,372 | 4,709,772 | |
Belgium - 2.9% | |||
Anheuser-Busch InBev SA NV | 240,100 | 26,169,914 | |
KBC Groupe SA | 176,345 | 10,742,680 | |
UCB SA | 106,800 | 8,755,305 | |
TOTAL BELGIUM | 45,667,899 | ||
British Virgin Islands - 0.1% | |||
Mail.Ru Group Ltd. GDR (Reg. S) (a) | 36,485 | 991,297 | |
Canada - 0.9% | |||
First Quantum Minerals Ltd. | 212,900 | 4,240,324 | |
Suncor Energy, Inc. | 253,700 | 9,786,448 | |
TOTAL CANADA | 14,026,772 | ||
Denmark - 2.5% | |||
Coloplast A/S Series B | 101,200 | 8,491,019 | |
Novo Nordisk A/S Series B | 548,300 | 24,885,154 | |
Vestas Wind Systems A/S (a) | 143,800 | 6,382,796 | |
TOTAL DENMARK | 39,758,969 | ||
Finland - 2.2% | |||
Amer Group PLC (A Shares) | 299,800 | 6,189,002 | |
Kesko Oyj | 147,300 | 6,016,260 | |
Raisio Group PLC (V Shares) | 744,500 | 4,864,875 | |
Rakentajain Konevuokraamo Oyj (B Shares) | 313,690 | 6,984,925 | |
Sampo Oyj (A Shares) (d) | 215,700 | 10,710,207 | |
TOTAL FINLAND | 34,765,269 | ||
France - 13.4% | |||
Atos Origin SA | 92,211 | 7,961,017 | |
AXA SA | 646,600 | 16,842,311 | |
BNP Paribas SA | 321,916 | 24,166,076 | |
Bureau Veritas SA | 346,800 | 10,584,926 | |
Christian Dior SA (d) | 106,595 | 21,909,100 | |
GDF Suez | 641,150 | 16,166,653 | |
Ipsos SA | 181,300 | 7,027,652 | |
Kering SA (d) | 52,800 | 11,676,382 | |
Legrand SA | 187,650 | 12,105,635 | |
Numericable Group SA (a) | 99,200 | 4,734,304 | |
Publicis Groupe SA | 130,891 | 11,149,726 | |
Rexel SA | 374,252 | 9,449,777 | |
Technip SA | 109,400 | 12,309,041 | |
Total SA (a) | 624,600 | 44,686,517 | |
TOTAL FRANCE | 210,769,117 | ||
| |||
Shares | Value | ||
Germany - 13.1% | |||
adidas AG | 95,900 | $ 10,235,295 | |
BASF AG | 233,733 | 27,053,803 | |
Bayer AG (d) | 206,700 | 28,676,525 | |
Beiersdorf AG | 78,200 | 7,839,543 | |
CompuGroup Medical AG | 259,600 | 6,918,598 | |
Continental AG (d) | 54,600 | 12,790,271 | |
CTS Eventim AG | 120,897 | 7,698,644 | |
Daimler AG (Germany) | 267,562 | 24,770,319 | |
Deutsche Boerse AG | 131,800 | 9,652,796 | |
Deutsche Post AG | 367,777 | 13,845,238 | |
Deutsche Wohnen AG (a) | 390,089 | 8,171,969 | |
GEA Group AG | 183,375 | 8,203,299 | |
HeidelbergCement Finance AG | 124,334 | 10,784,373 | |
KION Group AG | 168,478 | 7,963,452 | |
Linde AG | 77,700 | 16,110,276 | |
MLP AG | 866,000 | 5,887,081 | |
TOTAL GERMANY | 206,601,482 | ||
Ireland - 3.0% | |||
Actavis PLC (a) | 33,000 | 6,742,890 | |
CRH PLC | 426,700 | 12,422,772 | |
DCC PLC (United Kingdom) | 149,700 | 7,666,013 | |
Greencore Group PLC | 1,417,530 | 6,249,057 | |
Kingspan Group PLC (United Kingdom) | 387,000 | 7,275,055 | |
Ryanair Holdings PLC sponsored ADR (a) | 125,900 | 6,733,132 | |
TOTAL IRELAND | 47,088,919 | ||
Israel - 0.4% | |||
Teva Pharmaceutical Industries Ltd. sponsored ADR | 138,300 | 6,757,338 | |
Italy - 2.9% | |||
Astaldi SpA | 747,500 | 8,088,944 | |
Azimut Holding SpA | 191,200 | 5,955,117 | |
Banca Popolare dell'Emilia Romagna (a)(d) | 328,100 | 3,771,245 | |
MARR SpA | 448,069 | 8,671,718 | |
Prada SpA | 636,500 | 5,081,853 | |
Prysmian SpA | 296,800 | 7,716,485 | |
World Duty Free SpA (a) | 485,624 | 6,504,868 | |
TOTAL ITALY | 45,790,230 | ||
Netherlands - 2.5% | |||
ING Groep NV (Certificaten Van Aandelen) (a) | 1,119,000 | 15,995,955 | |
Koninklijke Philips Electronics NV | 409,600 | 13,112,603 | |
Royal DSM NV | 133,300 | 9,557,377 | |
TOTAL NETHERLANDS | 38,665,935 | ||
Norway - 1.4% | |||
DNB ASA | 578,600 | 10,230,113 | |
Telenor ASA | 522,800 | 12,268,997 | |
TOTAL NORWAY | 22,499,110 | ||
Common Stocks - continued | |||
Shares | Value | ||
South Africa - 0.4% | |||
Naspers Ltd. Class N | 63,700 | $ 6,006,407 | |
Spain - 1.8% | |||
Criteria CaixaCorp SA | 2,006,638 | 12,221,362 | |
Hispania Activos Inmobiliarios SA (a) | 356,700 | 5,017,959 | |
Repsol YPF SA | 439,967 | 11,841,532 | |
TOTAL SPAIN | 29,080,853 | ||
Sweden - 3.4% | |||
AF AB (B Shares) | 186,388 | 6,736,363 | |
Investment AB Kinnevik (B Shares) | 213,500 | 7,502,807 | |
Nordea Bank AB | 1,169,800 | 16,902,388 | |
Svenska Handelsbanken AB (A Shares) | 262,700 | 13,183,078 | |
Swedish Match Co. AB | 262,200 | 8,988,401 | |
TOTAL SWEDEN | 53,313,037 | ||
Switzerland - 11.7% | |||
Aryzta AG | 112,960 | 10,428,360 | |
Baloise Holdings AG | 66,620 | 8,099,466 | |
Nestle SA | 751,836 | 58,105,107 | |
Partners Group Holding AG | 30,301 | 8,290,513 | |
Roche Holding AG (participation certificate) | 170,679 | 50,068,052 | |
Schindler Holding AG (participation certificate) | 52,076 | 8,059,029 | |
Syngenta AG (Switzerland) | 34,489 | 13,657,356 | |
UBS AG | 247,396 | 5,174,010 | |
UBS AG (NY Shares) | 705,900 | 14,760,369 | |
Vontobel Holdings AG | 200,247 | 7,838,324 | |
TOTAL SWITZERLAND | 184,480,586 | ||
United Kingdom - 30.4% | |||
Aberdeen Asset Management PLC | 1,324,157 | 9,765,567 | |
Associated British Foods PLC | 189,286 | 9,495,033 | |
AstraZeneca PLC sponsored ADR | 73,100 | 5,778,555 | |
Babcock International Group PLC | 408,200 | 8,229,106 | |
Babcock International Group PLC rights 5/6/14 (a) | 157,000 | 1,060,315 | |
Barclays PLC | 5,754,420 | 24,571,658 | |
BG Group PLC | 1,088,700 | 22,021,170 | |
BHP Billiton PLC | 838,806 | 27,231,323 | |
Brit PLC (a) | 1,544,900 | 5,549,391 | |
British American Tobacco PLC (United Kingdom) | 601,000 | 34,704,739 | |
BT Group PLC | 2,593,900 | 16,192,809 | |
Bunzl PLC | 330,000 | 9,366,061 | |
Compass Group PLC | 823,400 | 13,095,953 | |
Dechra Pharmaceuticals PLC | 515,500 | 6,005,554 | |
Diageo PLC | 674,607 | 20,669,835 | |
Elementis PLC | 1,483,000 | 6,943,307 | |
Exova Group Ltd. PLC (a) | 100 | 372 | |
| |||
Shares | Value | ||
Galliford Try PLC | 293,110 | $ 5,879,257 | |
GlaxoSmithKline PLC | 1,172,741 | 32,403,494 | |
HSBC Holdings PLC (United Kingdom) | 967,294 | 9,883,445 | |
ICAP PLC | 1,157,901 | 8,095,655 | |
IMI PLC | 280,638 | 7,107,438 | |
ITV PLC | 3,296,200 | 10,128,853 | |
Jazztel PLC (a) | 589,100 | 9,039,204 | |
Kingfisher PLC | 1,598,500 | 11,284,132 | |
London Stock Exchange Group PLC | 265,700 | 8,128,775 | |
Meggitt PLC | 959,097 | 7,719,391 | |
Mondi PLC | 402,400 | 6,675,225 | |
Next PLC | 95,000 | 10,457,950 | |
Prudential PLC | 994,030 | 22,851,892 | |
Rolls-Royce Group PLC | 813,401 | 14,420,136 | |
Royal & Sun Alliance Insurance Group PLC | 5,731,825 | 9,498,578 | |
Royal Dutch Shell PLC Class B (United Kingdom) | 591,435 | 25,112,928 | |
Schroders PLC | 176,500 | 7,616,946 | |
SIG PLC | 1,842,708 | 5,958,002 | |
Smith & Nephew PLC | 651,032 | 10,151,641 | |
Spectris PLC | 183,400 | 6,889,769 | |
St. James's Place Capital PLC | 469,300 | 6,101,219 | |
Taylor Wimpey PLC | 2,604,174 | 4,621,129 | |
Unite Group PLC | 1,184,916 | 8,452,586 | |
Vodafone Group PLC | 2,682,825 | 10,185,644 | |
William Hill PLC | 88 | 527 | |
TOTAL UNITED KINGDOM | 479,344,564 | ||
United States of America - 1.4% | |||
Colgate-Palmolive Co. | 99,525 | 6,698,033 | |
Oracle Corp. | 214,600 | 8,772,848 | |
Philip Morris International, Inc. | 77,300 | 6,603,739 | |
TOTAL UNITED STATES OF AMERICA | 22,074,620 | ||
TOTAL COMMON STOCKS (Cost $1,239,006,129) |
| ||
Nonconvertible Preferred Stocks - 1.4% | |||
|
|
|
|
Germany - 1.4% | |||
Volkswagen AG | 80,500 | 21,677,413 | |
United Kingdom - 0.0% | |||
Rolls Royce Group PLC (C Shares) | 269,473,203 | 454,978 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $16,673,784) |
| ||
Money Market Funds - 8.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 43,502,701 | $ 43,502,701 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 83,829,030 | 83,829,030 | |
TOTAL MONEY MARKET FUNDS (Cost $127,331,731) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $1,383,011,644) | 1,658,746,980 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (82,997,688) | ||
NET ASSETS - 100% | $ 1,575,749,292 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 15,748 |
Fidelity Securities Lending Cash Central Fund | 388,772 |
Total | $ 404,520 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the tables 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: | ||||
Consumer Discretionary | $ 211,749,552 | $ 211,749,552 | $ - | $ - |
Consumer Staples | 215,504,614 | 75,855,019 | 139,649,595 | - |
Energy | 125,757,636 | 55,958,191 | 69,799,445 | - |
Financials | 349,976,131 | 271,499,171 | 78,476,960 | - |
Health Care | 195,634,125 | 78,125,784 | 117,508,341 | - |
Industrials | 209,648,817 | 196,536,214 | 13,112,603 | - |
Information Technology | 24,614,931 | 24,614,931 | - | - |
Materials | 134,676,136 | 81,364,685 | 53,311,451 | - |
Telecommunication Services | 47,686,654 | 21,308,201 | 26,378,453 | - |
Utilities | 16,166,653 | 16,166,653 | - | - |
Money Market Funds | 127,331,731 | 127,331,731 | - | - |
Total Investments in Securities: | $ 1,658,746,980 | $ 1,160,510,132 | $ 498,236,848 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 31,518,838 |
Level 2 to Level 1 | $ 0 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Europe Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $79,696,282) - See accompanying schedule: Unaffiliated issuers (cost $1,255,679,913) | $ 1,531,415,249 |
|
Fidelity Central Funds (cost $127,331,731) | 127,331,731 |
|
Total Investments (cost $1,383,011,644) |
| $ 1,658,746,980 |
Foreign currency held at value (cost $125,928) | 125,986 | |
Receivable for investments sold | 3,904,010 | |
Receivable for fund shares sold | 1,765,000 | |
Dividends receivable | 7,562,476 | |
Distributions receivable from Fidelity Central Funds | 195,061 | |
Prepaid expenses | 694 | |
Receivable from investment adviser for expense reductions | 853 | |
Other receivables | 17,057 | |
Total assets | 1,672,318,117 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 10,843,567 | |
Payable for fund shares redeemed | 545,254 | |
Distributions payable | 13 | |
Accrued management fee | 910,224 | |
Distribution and service plan fees payable | 14,670 | |
Other affiliated payables | 294,516 | |
Other payables and accrued expenses | 131,551 | |
Collateral on securities loaned, at value | 83,829,030 | |
Total liabilities | 96,568,825 | |
|
|
|
Net Assets | $ 1,575,749,292 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,510,428,232 | |
Undistributed net investment income | 17,752,343 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (228,243,331) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 275,812,048 | |
Net Assets | $ 1,575,749,292 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 40.26 | |
|
|
|
Maximum offering price per share (100/94.25 of $40.26) | $ 42.72 | |
Class T: | $ 40.24 | |
|
|
|
Maximum offering price per share (100/96.50 of $40.24) | $ 41.70 | |
Class B: | $ 40.22 | |
|
|
|
Class C: | $ 40.22 | |
|
|
|
Europe: | $ 40.28 | |
|
|
|
Institutional Class: | $ 40.27 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 19,433,154 |
Special dividends |
| 6,523,242 |
Income from Fidelity Central Funds |
| 404,520 |
Income before foreign taxes withheld |
| 26,360,916 |
Less foreign taxes withheld |
| (1,755,969) |
Total income |
| 24,604,947 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 3,970,775 | |
Performance adjustment | (2,811) | |
Transfer agent fees | 1,023,716 | |
Distribution and service plan fees | 18,816 | |
Accounting and security lending fees | 262,594 | |
Custodian fees and expenses | 61,610 | |
Independent trustees' compensation | 2,736 | |
Registration fees | 53,559 | |
Audit | 53,218 | |
Legal | 5,508 | |
Miscellaneous | 27,322 | |
Total expenses before reductions | 5,477,043 | |
Expense reductions | (31,513) | 5,445,530 |
Net investment income (loss) | 19,159,417 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 31,175,144 | |
Foreign currency transactions | 57,066 | |
Total net realized gain (loss) |
| 31,232,210 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 43,025,048 | |
Assets and liabilities in foreign currencies | 61,361 | |
Total change in net unrealized appreciation (depreciation) |
| 43,086,409 |
Net gain (loss) | 74,318,619 | |
Net increase (decrease) in net assets resulting from operations | $ 93,478,036 |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 19,159,417 | $ 13,406,222 |
Net realized gain (loss) | 31,232,210 | 36,524,479 |
Change in net unrealized appreciation (depreciation) | 43,086,409 | 135,845,543 |
Net increase (decrease) in net assets resulting from operations | 93,478,036 | 185,776,244 |
Distributions to shareholders from net investment income | (13,272,490) | (14,113,486) |
Distributions to shareholders from net realized gain | (612,576) | (241,945) |
Total distributions | (13,885,066) | (14,355,431) |
Share transactions - net increase (decrease) | 539,097,228 | 183,087,632 |
Redemption fees | 10,705 | 19,946 |
Total increase (decrease) in net assets | 618,700,903 | 354,528,391 |
|
|
|
Net Assets | ||
Beginning of period | 957,048,389 | 602,519,998 |
End of period (including undistributed net investment income of $17,752,343 and undistributed net investment income of $11,865,416, respectively) | $ 1,575,749,292 | $ 957,048,389 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .20 |
Net realized and unrealized gain (loss) | .61 |
Total from investment operations | .81 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.26 |
Total Return B, C, D | 2.05% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 1.29% A |
Expenses net of fee waivers, if any | 1.29% A |
Expenses net of all reductions | 1.28% A |
Net investment income (loss) | 4.34% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 19,873 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .19 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .79 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.24 |
Total Return B, C, D | 2.00% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 1.57% A |
Expenses net of fee waivers, if any | 1.57% A |
Expenses net of all reductions | 1.56% A |
Net investment income (loss) | 4.06% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 8,971 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .17 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .77 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.22 |
Total Return B, C, D | 1.95% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 2.05% A |
Expenses net of fee waivers, if any | 2.05% A |
Expenses net of all reductions | 2.05% A |
Net investment income (loss) | 3.57% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 847 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .17 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .77 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.22 |
Total Return B, C, D | 1.95% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 2.03% A |
Expenses net of fee waivers, if any | 2.03% A |
Expenses net of all reductions | 2.02% A |
Net investment income (loss) | 3.60% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 7,725 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Europe
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 37.92 | $ 30.15 | $ 27.67 | $ 30.83 | $ 28.52 | $ 23.57 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .65 K | .61 | .64 | .48 | .33 | .52 |
Net realized and unrealized gain (loss) | 2.25 | 7.87 | 2.45 | (2.97) | 2.50 | 5.16 |
Total from investment operations | 2.90 | 8.48 | 3.09 | (2.49) | 2.83 | 5.68 |
Distributions from net investment income | (.52) | (.70) | (.60) | (.67) | (.52) | (.73) |
Distributions from net realized gain | (.02) | (.01) | (.02) | - | - | - |
Total distributions | (.54) | (.71) | (.61) J | (.67) | (.52) | (.73) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 40.28 | $ 37.92 | $ 30.15 | $ 27.67 | $ 30.83 | $ 28.52 |
Total Return B, C | 7.78% | 28.71% | 11.53% | (8.32)% | 10.01% | 25.36% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .96% A | 1.06% | .83% | 1.10% | 1.12% | 1.09% |
Expenses net of fee waivers, if any | .96% A | 1.05% | .83% | 1.10% | 1.12% | 1.09% |
Expenses net of all reductions | .95% A | 1.02% | .80% | 1.06% | 1.04% | 1.04% |
Net investment income (loss) | 3.37% A, K | 1.82% | 2.33% | 1.56% | 1.15% | 2.22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,530,029 | $ 957,048 | $ 602,520 | $ 621,778 | $ 802,527 | $ 2,845,423 |
Portfolio turnover rate F | 42% A, H | 59% | 127% | 117% | 136% | 135% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J Total distributions of $.61 per share is comprised of distributions from net investment income of $.595 and distributions from net realized gain of $.017 per share. K Investment income per share reflects a large, non-recurring dividend recorded on February 24, 2014 which amounted to $.22 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.23%. |
Financial Highlights - Institutional Class
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) D | .22 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .82 |
Redemption fees added to paid in capital D, J | - |
Net asset value, end of period | $ 40.27 |
Total Return B, C | 2.08% |
Ratios to Average Net Assets E, H |
|
Expenses before reductions | .96% A |
Expenses net of fee waivers, if any | .95% A |
Expenses net of all reductions | .95% A |
Net investment income (loss) | 4.67% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 8,303 |
Portfolio turnover rate F | 42% A, I |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Europe Fund (the Fund) is a fund of Fidelity Investment Trust (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 launched shares of Class A, Class T, Class B, Class C and Institutional Class shares and the existing class was designated Europe on March 18, 2014. Each class has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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 and may include proceeds received from litigation. 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 287,427,388 |
Gross unrealized depreciation | (14,703,900) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 272,723,488 |
Tax cost | $ 1,386,023,492 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of period end and is subject to adjustment.
Fiscal year of expiration |
|
2016 | $ (93,431,388) |
2017 | (258,236,120) |
Total | $ (351,667,508) |
The Fund acquired $249,261,426 of capital loss carryforwards from Fidelity Europe Capital Appreciation Fund and $15,642,563 of capital loss carryforwards from Fidelity Advisor Europe Capital Appreciation Fund when they merged into the Fund in March 2014. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $13,187,073 and $1,543,568 per year, respectively. As a result, at least $171,472,601 of the Fund's capital loss carryforward will expire unused and is not included in the capital loss carryforward amounts disclosed above.
In addition, due to large redemptions in a prior period, $258,236,120 of capital losses that existed in the Fund prior to the mergers will be limited to approximately $32,029,274 per year.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $707,563,948 and $240,954,830, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Europe as compared to its benchmark index, the MSCI Europe Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .70% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 5,149 | $ 104 |
Class T | .25% | .25% | 4,708 | 4,708 |
Class B | .75% | .25% | 931 | 931 |
Class C | .75% | .25% | 8,028 | 8,028 |
|
|
| $ 18,816 | $ 13,771 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,017 |
Class T | 286 |
Class B* | 1 |
Class C* | 139 |
| $ 1,443 |
* When Class B and 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 A | $ 5,579 | .26 |
Class T | 2,891 | .30 |
Class B | 286 | .30 |
Class C | 2,245 | .27 |
Europe | 1,011,103 | .18 |
Institutional Class | 1,612 | .17 |
| $ 1,023,716 |
|
* 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 $86 for the period.
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 $948 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 $388,772. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $22,233 for the period.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $9,274.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Europe | $ 13,272,490 | $ 14,113,486 |
From net realized gain |
|
|
Europe | $ 612,576 | $ 241,945 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 22,165 | - | $ 878,312 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 483,084 | - | 18,719,498 | - |
Shares redeemed | (11,600) | - | (457,962) | - |
Net increase (decrease) | 493,649 | - | $ 19,139,848 | $ - |
Class T |
|
|
|
|
Shares sold | 6,629 | - | $ 261,625 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 218,383 | - | 8,462,341 | - |
Shares redeemed | (2,091) | - | (82,897) | - |
Net increase (decrease) | 222,921 | - | $ 8,641,069 | $ - |
Class B |
|
|
|
|
Shares sold | 2,631 | - | $ 103,799 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 19,997 | - | 774,699 | - |
Shares redeemed | (1,562) | - | (61,281) | - |
Net increase (decrease) | 21,066 | - | $ 817,217 | $ - |
Class C |
|
|
|
|
Shares sold | 13,179 | - | $ 523,189 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 183,082 | - | 7,092,587 | - |
Shares redeemed | (4,186) | - | (166,237) | - |
Net increase (decrease) | 192,075 | - | $ 7,449,539 | $ - |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Europe |
|
|
|
|
Shares sold | 6,344,620 | 9,813,431 | $ 246,559,501 | $ 335,694,105 |
Issued in exchange for shares of Fidelity Europe Capital Appreciation Fund | 9,559,313 | - | 370,423,391 | - |
Reinvestment of distributions | 358,728 | 448,718 | 13,351,865 | 13,676,925 |
Shares redeemed | (3,513,438) | (5,011,867) | (135,264,987) | (166,283,398) |
Net increase (decrease) | 12,749,223 | 5,250,282 | $ 495,069,770 | $ 183,087,632 |
Institutional Class |
|
|
|
|
Shares sold | 4,544 | - | $ 179,538 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 214,439 | - | 8,309,529 | - |
Shares redeemed | (12,823) | - | (509,282) | - |
Net increase (decrease) | 206,160 | - | $ 7,979,785 | $ - |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period March 18, 2014 (commencement of sale of shares) to April 30, 2014.
11. Merger Information.
On March 21, 2014, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Europe Capital Appreciation Fund and Fidelity Advisor Europe Capital Appreciation Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on September 18, 2013. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. In addition, the Board approved the creation of additional classes of shares that commenced sale of shares on March 18, 2014. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective and lower expenses. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $370,423,391, including securities of $369,430,411 and unrealized depreciation of $56,486,181 for Fidelity Europe Capital Appreciation Fund; and net assets of $43,358,654, including securities of $43,267,919 and unrealized appreciation of $4,301,890 for Fidelity Advisor Europe Capital Appreciation Fund; were combined with the Fund's net assets of $1,103,858,646 for total net assets after the acquisition of $1,517,640,691.
Pro forma results of operations of the combined entity for the entire period ended April 30, 2014, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition dates), are as follows:
Net investment income (loss) | $ 23,581,742 |
Total net realized gain (loss) | 40,592,255 |
Total change in net unrealized appreciation (depreciation) | 43,775,564 |
Net increase (decrease) in net assets resulting from operations | $ 107,949,561 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisitions were completed, it is not practicable to separate the amounts of revenue and earnings of the acquired funds that have been included in the Fund's accompanying Statement of Operations since March 21, 2014.
12. 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.
Semiannual Report
Distributions (Unaudited)
The Board of Trustees of Advisor Europe Capital Appreciation Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains |
Class A | 03/18/14 | 03/17/14 | $0.123 | $0.000 |
|
|
|
|
|
Class T | 03/18/14 | 03/17/14 | $0.115 | $0.000 |
|
|
|
|
|
Class B | 03/18/14 | 03/17/14 | $0.098 | $0.000 |
|
|
|
|
|
Class C | 03/18/14 | 03/17/14 | $0.098 | $0.000 |
Class A designates 3% and 1%; Class T designates 4% and 1%; Class B designates 27% and 1%; and Class C designates 6% and 1%; of the dividends distributed in December, 2013 and March, 2014, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
Class A, Class T, Class B, and Class C designates 100% of the dividends distributed in December, 2013 and March, 2014, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
| Pay Date | Income | Taxes |
Class A | 12/09/13 | $0.1316 | $0.0136 |
| 03/18/14 | $0.0589 | $0.0047 |
Class T | 12/09/13 | $0.0946 | $0.0136 |
| 03/18/14 | $0.0552 | $0.0047 |
Class B | 12/09/13 | $0.0156 | $0.0136 |
| 03/18/14 | $0.0474 | $0.0047 |
Class C | 12/09/13 | $0.0696 | $0.0136 |
| 03/18/14 | $0.0474 | $0.0047 |
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (U.K.) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AEUF-USAN-0614
1.9585994.100
Fidelity Advisor®
Europe Fund -
Institutional Class
Semiannual Report
April 30, 2014
Institutional Class is a class
of Fidelity® Europe Fund
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Distributions |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Europe Fund
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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014) for Europe, and for the period (March 18, 2014 to April 30, 2014) for Class A, Class T, Class B, Class C and Institutional Class. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.50 | $ 1.57 C |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.46 D |
Class T | 1.57% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.00 | $ 1.91 C |
HypotheticalA |
| $ 1,000.00 | $ 1,017.01 | $ 7.85 D |
Class B | 2.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.50 | $ 2.50 C |
HypotheticalA |
| $ 1,000.00 | $ 1,014.63 | $ 10.24 D |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.50 | $ 2.47 C |
HypotheticalA |
| $ 1,000.00 | $ 1,014.73 | $ 10.14 D |
Europe | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,077.80 | $ 4.95 C |
HypotheticalA |
| $ 1,000.00 | $ 1,020.03 | $ 4.81 D |
Institutional Class | .95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.80 | $ 1.16 C |
HypotheticalA |
| $ 1,000.00 | $ 1,020.08 | $ 4.76 D |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Actual 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) for Europe, and multiplied by 44/365 (to reflect the period March 18, 2014 to April 30, 2014) for Class A, Class T, Class B, Class C and Institutional Class.
D Hypothetical 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).
Semiannual Report
Fidelity Europe Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
United Kingdom | 30.4% |
| |
Germany | 14.5% |
| |
France | 13.4% |
| |
Switzerland | 11.7% |
| |
United States of America* | 4.2% |
| |
Sweden | 3.4% |
| |
Ireland | 3.0% |
| |
Italy | 2.9% |
| |
Belgium | 2.9% |
| |
Other | 13.6% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
United Kingdom | 30.5% |
| |
France | 14.7% |
| |
Germany | 13.2% |
| |
Switzerland | 12.8% |
| |
United States of America* | 4.7% |
| |
Italy | 3.5% |
| |
Finland | 3.0% |
| |
Ireland | 2.9% |
| |
Belgium | 2.8% |
| |
Other | 11.9% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 97.2 | 97.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 2.8 | 2.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Nestle SA (Switzerland, Food Products) | 3.7 | 3.6 |
Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 3.2 | 3.3 |
Total SA (France, Oil, Gas & Consumable Fuels) | 2.8 | 2.5 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 2.2 | 2.2 |
GlaxoSmithKline PLC (United Kingdom, Pharmaceuticals) | 2.1 | 2.1 |
Bayer AG (Germany, Pharmaceuticals) | 1.8 | 1.7 |
BHP Billiton PLC (United Kingdom, Metals & Mining) | 1.7 | 1.5 |
BASF AG (Germany, Chemicals) | 1.7 | 1.7 |
Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.7 | 1.6 |
Royal Dutch Shell PLC Class B (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 1.6 | 1.8 |
| 22.5 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 22.1 | 19.9 |
Consumer Staples | 13.8 | 15.9 |
Consumer Discretionary | 13.5 | 14.9 |
Industrials | 13.5 | 15.1 |
Health Care | 12.3 | 11.5 |
Materials | 8.5 | 6.5 |
Energy | 7.9 | 6.9 |
Telecommunication Services | 3.0 | 3.5 |
Information Technology | 1.6 | 2.3 |
Utilities | 1.0 | 0.8 |
Semiannual Report
Fidelity Europe Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
Austria - 1.1% | |||
Andritz AG | 137,700 | $ 8,546,089 | |
Erste Group Bank AG | 248,647 | 8,344,593 | |
TOTAL AUSTRIA | 16,890,682 | ||
Bailiwick of Jersey - 0.3% | |||
Informa PLC | 578,372 | 4,709,772 | |
Belgium - 2.9% | |||
Anheuser-Busch InBev SA NV | 240,100 | 26,169,914 | |
KBC Groupe SA | 176,345 | 10,742,680 | |
UCB SA | 106,800 | 8,755,305 | |
TOTAL BELGIUM | 45,667,899 | ||
British Virgin Islands - 0.1% | |||
Mail.Ru Group Ltd. GDR (Reg. S) (a) | 36,485 | 991,297 | |
Canada - 0.9% | |||
First Quantum Minerals Ltd. | 212,900 | 4,240,324 | |
Suncor Energy, Inc. | 253,700 | 9,786,448 | |
TOTAL CANADA | 14,026,772 | ||
Denmark - 2.5% | |||
Coloplast A/S Series B | 101,200 | 8,491,019 | |
Novo Nordisk A/S Series B | 548,300 | 24,885,154 | |
Vestas Wind Systems A/S (a) | 143,800 | 6,382,796 | |
TOTAL DENMARK | 39,758,969 | ||
Finland - 2.2% | |||
Amer Group PLC (A Shares) | 299,800 | 6,189,002 | |
Kesko Oyj | 147,300 | 6,016,260 | |
Raisio Group PLC (V Shares) | 744,500 | 4,864,875 | |
Rakentajain Konevuokraamo Oyj (B Shares) | 313,690 | 6,984,925 | |
Sampo Oyj (A Shares) (d) | 215,700 | 10,710,207 | |
TOTAL FINLAND | 34,765,269 | ||
France - 13.4% | |||
Atos Origin SA | 92,211 | 7,961,017 | |
AXA SA | 646,600 | 16,842,311 | |
BNP Paribas SA | 321,916 | 24,166,076 | |
Bureau Veritas SA | 346,800 | 10,584,926 | |
Christian Dior SA (d) | 106,595 | 21,909,100 | |
GDF Suez | 641,150 | 16,166,653 | |
Ipsos SA | 181,300 | 7,027,652 | |
Kering SA (d) | 52,800 | 11,676,382 | |
Legrand SA | 187,650 | 12,105,635 | |
Numericable Group SA (a) | 99,200 | 4,734,304 | |
Publicis Groupe SA | 130,891 | 11,149,726 | |
Rexel SA | 374,252 | 9,449,777 | |
Technip SA | 109,400 | 12,309,041 | |
Total SA (a) | 624,600 | 44,686,517 | |
TOTAL FRANCE | 210,769,117 | ||
| |||
Shares | Value | ||
Germany - 13.1% | |||
adidas AG | 95,900 | $ 10,235,295 | |
BASF AG | 233,733 | 27,053,803 | |
Bayer AG (d) | 206,700 | 28,676,525 | |
Beiersdorf AG | 78,200 | 7,839,543 | |
CompuGroup Medical AG | 259,600 | 6,918,598 | |
Continental AG (d) | 54,600 | 12,790,271 | |
CTS Eventim AG | 120,897 | 7,698,644 | |
Daimler AG (Germany) | 267,562 | 24,770,319 | |
Deutsche Boerse AG | 131,800 | 9,652,796 | |
Deutsche Post AG | 367,777 | 13,845,238 | |
Deutsche Wohnen AG (a) | 390,089 | 8,171,969 | |
GEA Group AG | 183,375 | 8,203,299 | |
HeidelbergCement Finance AG | 124,334 | 10,784,373 | |
KION Group AG | 168,478 | 7,963,452 | |
Linde AG | 77,700 | 16,110,276 | |
MLP AG | 866,000 | 5,887,081 | |
TOTAL GERMANY | 206,601,482 | ||
Ireland - 3.0% | |||
Actavis PLC (a) | 33,000 | 6,742,890 | |
CRH PLC | 426,700 | 12,422,772 | |
DCC PLC (United Kingdom) | 149,700 | 7,666,013 | |
Greencore Group PLC | 1,417,530 | 6,249,057 | |
Kingspan Group PLC (United Kingdom) | 387,000 | 7,275,055 | |
Ryanair Holdings PLC sponsored ADR (a) | 125,900 | 6,733,132 | |
TOTAL IRELAND | 47,088,919 | ||
Israel - 0.4% | |||
Teva Pharmaceutical Industries Ltd. sponsored ADR | 138,300 | 6,757,338 | |
Italy - 2.9% | |||
Astaldi SpA | 747,500 | 8,088,944 | |
Azimut Holding SpA | 191,200 | 5,955,117 | |
Banca Popolare dell'Emilia Romagna (a)(d) | 328,100 | 3,771,245 | |
MARR SpA | 448,069 | 8,671,718 | |
Prada SpA | 636,500 | 5,081,853 | |
Prysmian SpA | 296,800 | 7,716,485 | |
World Duty Free SpA (a) | 485,624 | 6,504,868 | |
TOTAL ITALY | 45,790,230 | ||
Netherlands - 2.5% | |||
ING Groep NV (Certificaten Van Aandelen) (a) | 1,119,000 | 15,995,955 | |
Koninklijke Philips Electronics NV | 409,600 | 13,112,603 | |
Royal DSM NV | 133,300 | 9,557,377 | |
TOTAL NETHERLANDS | 38,665,935 | ||
Norway - 1.4% | |||
DNB ASA | 578,600 | 10,230,113 | |
Telenor ASA | 522,800 | 12,268,997 | |
TOTAL NORWAY | 22,499,110 | ||
Common Stocks - continued | |||
Shares | Value | ||
South Africa - 0.4% | |||
Naspers Ltd. Class N | 63,700 | $ 6,006,407 | |
Spain - 1.8% | |||
Criteria CaixaCorp SA | 2,006,638 | 12,221,362 | |
Hispania Activos Inmobiliarios SA (a) | 356,700 | 5,017,959 | |
Repsol YPF SA | 439,967 | 11,841,532 | |
TOTAL SPAIN | 29,080,853 | ||
Sweden - 3.4% | |||
AF AB (B Shares) | 186,388 | 6,736,363 | |
Investment AB Kinnevik (B Shares) | 213,500 | 7,502,807 | |
Nordea Bank AB | 1,169,800 | 16,902,388 | |
Svenska Handelsbanken AB (A Shares) | 262,700 | 13,183,078 | |
Swedish Match Co. AB | 262,200 | 8,988,401 | |
TOTAL SWEDEN | 53,313,037 | ||
Switzerland - 11.7% | |||
Aryzta AG | 112,960 | 10,428,360 | |
Baloise Holdings AG | 66,620 | 8,099,466 | |
Nestle SA | 751,836 | 58,105,107 | |
Partners Group Holding AG | 30,301 | 8,290,513 | |
Roche Holding AG (participation certificate) | 170,679 | 50,068,052 | |
Schindler Holding AG (participation certificate) | 52,076 | 8,059,029 | |
Syngenta AG (Switzerland) | 34,489 | 13,657,356 | |
UBS AG | 247,396 | 5,174,010 | |
UBS AG (NY Shares) | 705,900 | 14,760,369 | |
Vontobel Holdings AG | 200,247 | 7,838,324 | |
TOTAL SWITZERLAND | 184,480,586 | ||
United Kingdom - 30.4% | |||
Aberdeen Asset Management PLC | 1,324,157 | 9,765,567 | |
Associated British Foods PLC | 189,286 | 9,495,033 | |
AstraZeneca PLC sponsored ADR | 73,100 | 5,778,555 | |
Babcock International Group PLC | 408,200 | 8,229,106 | |
Babcock International Group PLC rights 5/6/14 (a) | 157,000 | 1,060,315 | |
Barclays PLC | 5,754,420 | 24,571,658 | |
BG Group PLC | 1,088,700 | 22,021,170 | |
BHP Billiton PLC | 838,806 | 27,231,323 | |
Brit PLC (a) | 1,544,900 | 5,549,391 | |
British American Tobacco PLC (United Kingdom) | 601,000 | 34,704,739 | |
BT Group PLC | 2,593,900 | 16,192,809 | |
Bunzl PLC | 330,000 | 9,366,061 | |
Compass Group PLC | 823,400 | 13,095,953 | |
Dechra Pharmaceuticals PLC | 515,500 | 6,005,554 | |
Diageo PLC | 674,607 | 20,669,835 | |
Elementis PLC | 1,483,000 | 6,943,307 | |
Exova Group Ltd. PLC (a) | 100 | 372 | |
| |||
Shares | Value | ||
Galliford Try PLC | 293,110 | $ 5,879,257 | |
GlaxoSmithKline PLC | 1,172,741 | 32,403,494 | |
HSBC Holdings PLC (United Kingdom) | 967,294 | 9,883,445 | |
ICAP PLC | 1,157,901 | 8,095,655 | |
IMI PLC | 280,638 | 7,107,438 | |
ITV PLC | 3,296,200 | 10,128,853 | |
Jazztel PLC (a) | 589,100 | 9,039,204 | |
Kingfisher PLC | 1,598,500 | 11,284,132 | |
London Stock Exchange Group PLC | 265,700 | 8,128,775 | |
Meggitt PLC | 959,097 | 7,719,391 | |
Mondi PLC | 402,400 | 6,675,225 | |
Next PLC | 95,000 | 10,457,950 | |
Prudential PLC | 994,030 | 22,851,892 | |
Rolls-Royce Group PLC | 813,401 | 14,420,136 | |
Royal & Sun Alliance Insurance Group PLC | 5,731,825 | 9,498,578 | |
Royal Dutch Shell PLC Class B (United Kingdom) | 591,435 | 25,112,928 | |
Schroders PLC | 176,500 | 7,616,946 | |
SIG PLC | 1,842,708 | 5,958,002 | |
Smith & Nephew PLC | 651,032 | 10,151,641 | |
Spectris PLC | 183,400 | 6,889,769 | |
St. James's Place Capital PLC | 469,300 | 6,101,219 | |
Taylor Wimpey PLC | 2,604,174 | 4,621,129 | |
Unite Group PLC | 1,184,916 | 8,452,586 | |
Vodafone Group PLC | 2,682,825 | 10,185,644 | |
William Hill PLC | 88 | 527 | |
TOTAL UNITED KINGDOM | 479,344,564 | ||
United States of America - 1.4% | |||
Colgate-Palmolive Co. | 99,525 | 6,698,033 | |
Oracle Corp. | 214,600 | 8,772,848 | |
Philip Morris International, Inc. | 77,300 | 6,603,739 | |
TOTAL UNITED STATES OF AMERICA | 22,074,620 | ||
TOTAL COMMON STOCKS (Cost $1,239,006,129) |
| ||
Nonconvertible Preferred Stocks - 1.4% | |||
|
|
|
|
Germany - 1.4% | |||
Volkswagen AG | 80,500 | 21,677,413 | |
United Kingdom - 0.0% | |||
Rolls Royce Group PLC (C Shares) | 269,473,203 | 454,978 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $16,673,784) |
| ||
Money Market Funds - 8.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 43,502,701 | $ 43,502,701 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 83,829,030 | 83,829,030 | |
TOTAL MONEY MARKET FUNDS (Cost $127,331,731) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $1,383,011,644) | 1,658,746,980 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (82,997,688) | ||
NET ASSETS - 100% | $ 1,575,749,292 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 15,748 |
Fidelity Securities Lending Cash Central Fund | 388,772 |
Total | $ 404,520 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the tables 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: | ||||
Consumer Discretionary | $ 211,749,552 | $ 211,749,552 | $ - | $ - |
Consumer Staples | 215,504,614 | 75,855,019 | 139,649,595 | - |
Energy | 125,757,636 | 55,958,191 | 69,799,445 | - |
Financials | 349,976,131 | 271,499,171 | 78,476,960 | - |
Health Care | 195,634,125 | 78,125,784 | 117,508,341 | - |
Industrials | 209,648,817 | 196,536,214 | 13,112,603 | - |
Information Technology | 24,614,931 | 24,614,931 | - | - |
Materials | 134,676,136 | 81,364,685 | 53,311,451 | - |
Telecommunication Services | 47,686,654 | 21,308,201 | 26,378,453 | - |
Utilities | 16,166,653 | 16,166,653 | - | - |
Money Market Funds | 127,331,731 | 127,331,731 | - | - |
Total Investments in Securities: | $ 1,658,746,980 | $ 1,160,510,132 | $ 498,236,848 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 31,518,838 |
Level 2 to Level 1 | $ 0 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Europe Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $79,696,282) - See accompanying schedule: Unaffiliated issuers (cost $1,255,679,913) | $ 1,531,415,249 |
|
Fidelity Central Funds (cost $127,331,731) | 127,331,731 |
|
Total Investments (cost $1,383,011,644) |
| $ 1,658,746,980 |
Foreign currency held at value (cost $125,928) | 125,986 | |
Receivable for investments sold | 3,904,010 | |
Receivable for fund shares sold | 1,765,000 | |
Dividends receivable | 7,562,476 | |
Distributions receivable from Fidelity Central Funds | 195,061 | |
Prepaid expenses | 694 | |
Receivable from investment adviser for expense reductions | 853 | |
Other receivables | 17,057 | |
Total assets | 1,672,318,117 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 10,843,567 | |
Payable for fund shares redeemed | 545,254 | |
Distributions payable | 13 | |
Accrued management fee | 910,224 | |
Distribution and service plan fees payable | 14,670 | |
Other affiliated payables | 294,516 | |
Other payables and accrued expenses | 131,551 | |
Collateral on securities loaned, at value | 83,829,030 | |
Total liabilities | 96,568,825 | |
|
|
|
Net Assets | $ 1,575,749,292 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,510,428,232 | |
Undistributed net investment income | 17,752,343 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (228,243,331) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 275,812,048 | |
Net Assets | $ 1,575,749,292 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 40.26 | |
|
|
|
Maximum offering price per share (100/94.25 of $40.26) | $ 42.72 | |
Class T: | $ 40.24 | |
|
|
|
Maximum offering price per share (100/96.50 of $40.24) | $ 41.70 | |
Class B: | $ 40.22 | |
|
|
|
Class C: | $ 40.22 | |
|
|
|
Europe: | $ 40.28 | |
|
|
|
Institutional Class: | $ 40.27 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 19,433,154 |
Special dividends |
| 6,523,242 |
Income from Fidelity Central Funds |
| 404,520 |
Income before foreign taxes withheld |
| 26,360,916 |
Less foreign taxes withheld |
| (1,755,969) |
Total income |
| 24,604,947 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 3,970,775 | |
Performance adjustment | (2,811) | |
Transfer agent fees | 1,023,716 | |
Distribution and service plan fees | 18,816 | |
Accounting and security lending fees | 262,594 | |
Custodian fees and expenses | 61,610 | |
Independent trustees' compensation | 2,736 | |
Registration fees | 53,559 | |
Audit | 53,218 | |
Legal | 5,508 | |
Miscellaneous | 27,322 | |
Total expenses before reductions | 5,477,043 | |
Expense reductions | (31,513) | 5,445,530 |
Net investment income (loss) | 19,159,417 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 31,175,144 | |
Foreign currency transactions | 57,066 | |
Total net realized gain (loss) |
| 31,232,210 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 43,025,048 | |
Assets and liabilities in foreign currencies | 61,361 | |
Total change in net unrealized appreciation (depreciation) |
| 43,086,409 |
Net gain (loss) | 74,318,619 | |
Net increase (decrease) in net assets resulting from operations | $ 93,478,036 |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 19,159,417 | $ 13,406,222 |
Net realized gain (loss) | 31,232,210 | 36,524,479 |
Change in net unrealized appreciation (depreciation) | 43,086,409 | 135,845,543 |
Net increase (decrease) in net assets resulting from operations | 93,478,036 | 185,776,244 |
Distributions to shareholders from net investment income | (13,272,490) | (14,113,486) |
Distributions to shareholders from net realized gain | (612,576) | (241,945) |
Total distributions | (13,885,066) | (14,355,431) |
Share transactions - net increase (decrease) | 539,097,228 | 183,087,632 |
Redemption fees | 10,705 | 19,946 |
Total increase (decrease) in net assets | 618,700,903 | 354,528,391 |
|
|
|
Net Assets | ||
Beginning of period | 957,048,389 | 602,519,998 |
End of period (including undistributed net investment income of $17,752,343 and undistributed net investment income of $11,865,416, respectively) | $ 1,575,749,292 | $ 957,048,389 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .20 |
Net realized and unrealized gain (loss) | .61 |
Total from investment operations | .81 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.26 |
Total Return B, C, D | 2.05% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 1.29% A |
Expenses net of fee waivers, if any | 1.29% A |
Expenses net of all reductions | 1.28% A |
Net investment income (loss) | 4.34% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 19,873 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .19 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .79 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.24 |
Total Return B, C, D | 2.00% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 1.57% A |
Expenses net of fee waivers, if any | 1.57% A |
Expenses net of all reductions | 1.56% A |
Net investment income (loss) | 4.06% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 8,971 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .17 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .77 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.22 |
Total Return B, C, D | 1.95% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 2.05% A |
Expenses net of fee waivers, if any | 2.05% A |
Expenses net of all reductions | 2.05% A |
Net investment income (loss) | 3.57% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 847 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .17 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .77 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.22 |
Total Return B, C, D | 1.95% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 2.03% A |
Expenses net of fee waivers, if any | 2.03% A |
Expenses net of all reductions | 2.02% A |
Net investment income (loss) | 3.60% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 7,725 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Europe
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 37.92 | $ 30.15 | $ 27.67 | $ 30.83 | $ 28.52 | $ 23.57 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .65 K | .61 | .64 | .48 | .33 | .52 |
Net realized and unrealized gain (loss) | 2.25 | 7.87 | 2.45 | (2.97) | 2.50 | 5.16 |
Total from investment operations | 2.90 | 8.48 | 3.09 | (2.49) | 2.83 | 5.68 |
Distributions from net investment income | (.52) | (.70) | (.60) | (.67) | (.52) | (.73) |
Distributions from net realized gain | (.02) | (.01) | (.02) | - | - | - |
Total distributions | (.54) | (.71) | (.61) J | (.67) | (.52) | (.73) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 40.28 | $ 37.92 | $ 30.15 | $ 27.67 | $ 30.83 | $ 28.52 |
Total Return B, C | 7.78% | 28.71% | 11.53% | (8.32)% | 10.01% | 25.36% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .96% A | 1.06% | .83% | 1.10% | 1.12% | 1.09% |
Expenses net of fee waivers, if any | .96% A | 1.05% | .83% | 1.10% | 1.12% | 1.09% |
Expenses net of all reductions | .95% A | 1.02% | .80% | 1.06% | 1.04% | 1.04% |
Net investment income (loss) | 3.37% A, K | 1.82% | 2.33% | 1.56% | 1.15% | 2.22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,530,029 | $ 957,048 | $ 602,520 | $ 621,778 | $ 802,527 | $ 2,845,423 |
Portfolio turnover rate F | 42% A, H | 59% | 127% | 117% | 136% | 135% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J Total distributions of $.61 per share is comprised of distributions from net investment income of $.595 and distributions from net realized gain of $.017 per share. K Investment income per share reflects a large, non-recurring dividend recorded on February 24, 2014 which amounted to $.22 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.23%. |
Financial Highlights - Institutional Class
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) D | .22 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .82 |
Redemption fees added to paid in capital D, J | - |
Net asset value, end of period | $ 40.27 |
Total Return B, C | 2.08% |
Ratios to Average Net Assets E, H |
|
Expenses before reductions | .96% A |
Expenses net of fee waivers, if any | .95% A |
Expenses net of all reductions | .95% A |
Net investment income (loss) | 4.67% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 8,303 |
Portfolio turnover rate F | 42% A, I |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Europe Fund (the Fund) is a fund of Fidelity Investment Trust (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 launched shares of Class A, Class T, Class B, Class C and Institutional Class shares and the existing class was designated Europe on March 18, 2014. Each class has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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 and may include proceeds received from litigation. 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 287,427,388 |
Gross unrealized depreciation | (14,703,900) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 272,723,488 |
Tax cost | $ 1,386,023,492 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of period end and is subject to adjustment.
Fiscal year of expiration |
|
2016 | $ (93,431,388) |
2017 | (258,236,120) |
Total | $ (351,667,508) |
The Fund acquired $249,261,426 of capital loss carryforwards from Fidelity Europe Capital Appreciation Fund and $15,642,563 of capital loss carryforwards from Fidelity Advisor Europe Capital Appreciation Fund when they merged into the Fund in March 2014. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $13,187,073 and $1,543,568 per year, respectively. As a result, at least $171,472,601 of the Fund's capital loss carryforward will expire unused and is not included in the capital loss carryforward amounts disclosed above.
In addition, due to large redemptions in a prior period, $258,236,120 of capital losses that existed in the Fund prior to the mergers will be limited to approximately $32,029,274 per year.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $707,563,948 and $240,954,830, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Europe as compared to its benchmark index, the MSCI Europe Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .70% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 5,149 | $ 104 |
Class T | .25% | .25% | 4,708 | 4,708 |
Class B | .75% | .25% | 931 | 931 |
Class C | .75% | .25% | 8,028 | 8,028 |
|
|
| $ 18,816 | $ 13,771 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,017 |
Class T | 286 |
Class B* | 1 |
Class C* | 139 |
| $ 1,443 |
* When Class B and 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 A | $ 5,579 | .26 |
Class T | 2,891 | .30 |
Class B | 286 | .30 |
Class C | 2,245 | .27 |
Europe | 1,011,103 | .18 |
Institutional Class | 1,612 | .17 |
| $ 1,023,716 |
|
* 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 $86 for the period.
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 $948 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 $388,772. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $22,233 for the period.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $9,274.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Europe | $ 13,272,490 | $ 14,113,486 |
From net realized gain |
|
|
Europe | $ 612,576 | $ 241,945 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 22,165 | - | $ 878,312 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 483,084 | - | 18,719,498 | - |
Shares redeemed | (11,600) | - | (457,962) | - |
Net increase (decrease) | 493,649 | - | $ 19,139,848 | $ - |
Class T |
|
|
|
|
Shares sold | 6,629 | - | $ 261,625 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 218,383 | - | 8,462,341 | - |
Shares redeemed | (2,091) | - | (82,897) | - |
Net increase (decrease) | 222,921 | - | $ 8,641,069 | $ - |
Class B |
|
|
|
|
Shares sold | 2,631 | - | $ 103,799 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 19,997 | - | 774,699 | - |
Shares redeemed | (1,562) | - | (61,281) | - |
Net increase (decrease) | 21,066 | - | $ 817,217 | $ - |
Class C |
|
|
|
|
Shares sold | 13,179 | - | $ 523,189 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 183,082 | - | 7,092,587 | - |
Shares redeemed | (4,186) | - | (166,237) | - |
Net increase (decrease) | 192,075 | - | $ 7,449,539 | $ - |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Europe |
|
|
|
|
Shares sold | 6,344,620 | 9,813,431 | $ 246,559,501 | $ 335,694,105 |
Issued in exchange for shares of Fidelity Europe Capital Appreciation Fund | 9,559,313 | - | 370,423,391 | - |
Reinvestment of distributions | 358,728 | 448,718 | 13,351,865 | 13,676,925 |
Shares redeemed | (3,513,438) | (5,011,867) | (135,264,987) | (166,283,398) |
Net increase (decrease) | 12,749,223 | 5,250,282 | $ 495,069,770 | $ 183,087,632 |
Institutional Class |
|
|
|
|
Shares sold | 4,544 | - | $ 179,538 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 214,439 | - | 8,309,529 | - |
Shares redeemed | (12,823) | - | (509,282) | - |
Net increase (decrease) | 206,160 | - | $ 7,979,785 | $ - |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period March 18, 2014 (commencement of sale of shares) to April 30, 2014.
11. Merger Information.
On March 21, 2014, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Europe Capital Appreciation Fund and Fidelity Advisor Europe Capital Appreciation Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on September 18, 2013. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. In addition, the Board approved the creation of additional classes of shares that commenced sale of shares on March 18, 2014. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective and lower expenses. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $370,423,391, including securities of $369,430,411 and unrealized depreciation of $56,486,181 for Fidelity Europe Capital Appreciation Fund; and net assets of $43,358,654, including securities of $43,267,919 and unrealized appreciation of $4,301,890 for Fidelity Advisor Europe Capital Appreciation Fund; were combined with the Fund's net assets of $1,103,858,646 for total net assets after the acquisition of $1,517,640,691.
Pro forma results of operations of the combined entity for the entire period ended April 30, 2014, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition dates), are as follows:
Net investment income (loss) | $ 23,581,742 |
Total net realized gain (loss) | 40,592,255 |
Total change in net unrealized appreciation (depreciation) | 43,775,564 |
Net increase (decrease) in net assets resulting from operations | $ 107,949,561 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisitions were completed, it is not practicable to separate the amounts of revenue and earnings of the acquired funds that have been included in the Fund's accompanying Statement of Operations since March 21, 2014.
12. 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.
Semiannual Report
Distributions (Unaudited)
The Board of Trustees of Advisor Europe Capital Appreciation Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains |
Institutional Class | 03/18/14 | 03/17/14 | $0.131 | $0.000 |
Institutional Class designates 3% and 1%; of the dividends distributed in December, 2013 and March, 2014, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
Institutional Class designates 100% of the dividends distributed in December, 2013 and March, 2014, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
| Pay Date | Income | Taxes |
Institutional Class | 12/09/13 | $0.1576 | $0.0136 |
| 03/18/14 | $0.0626 | $0.0047 |
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
FIL Investment Advisors
FIL Investment Advisors (U.K.) Limited
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AEUFI-USAN-0614
1.9586003.100
Fidelity Advisor®
Japan
Fund - Class A, Class T, Class B, and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Class A, Class T, Class B, and Class C are
classes of Fidelity® Japan Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Japan Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 928.60 | $ 5.98 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.60 | $ 6.26 |
Class T | 1.55% |
|
|
|
Actual |
| $ 1,000.00 | $ 927.90 | $ 7.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class B | 2.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 925.00 | $ 9.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.78 | $ 10.09 |
Class C | 1.94% |
|
|
|
Actual |
| $ 1,000.00 | $ 925.70 | $ 9.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.17 | $ 9.69 |
Japan | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 929.80 | $ 4.35 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.28 | $ 4.56 |
Institutional Class | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 930.60 | $ 4.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.33 | $ 4.51 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Japan Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Japan | 98.3% |
| |
United States of America* | 1.2% |
| |
Korea (South) | 0.5% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Japan | 97.1% |
| |
United States of America* | 2.9% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.8 | 97.1 |
Short-Term Investments and Net Other Assets (Liabilities) | 1.2 | 2.9 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Japan Tobacco, Inc. (Tobacco) | 5.8 | 0.0 |
Rakuten, Inc. (Internet & Catalog Retail) | 4.2 | 0.0 |
East Japan Railway Co. (Road & Rail) | 4.1 | 0.0 |
Astellas Pharma, Inc. (Pharmaceuticals) | 4.0 | 0.0 |
Honda Motor Co. Ltd. (Automobiles) | 4.0 | 3.8 |
Hoya Corp. (Electronic Equipment & Components) | 3.8 | 0.0 |
Mitsubishi UFJ Financial Group, Inc. (Banks) | 3.5 | 4.9 |
SoftBank Corp. (Wireless Telecommunication Services) | 3.4 | 0.0 |
Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) | 3.2 | 0.0 |
Mitsui & Co. Ltd. (Trading Companies & Distributors) | 3.0 | 0.0 |
| 39.0 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 21.9 | 25.4 |
Financials | 18.8 | 20.3 |
Industrials | 16.4 | 13.0 |
Information Technology | 12.0 | 12.8 |
Telecommunication Services | 8.5 | 3.2 |
Consumer Staples | 7.5 | 2.1 |
Health Care | 6.7 | 7.4 |
Materials | 3.7 | 11.5 |
Energy | 1.7 | 0.0 |
Utilities | 1.6 | 1.4 |
Semiannual Report
Fidelity Japan Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 21.9% | |||
Auto Components - 1.6% | |||
Bridgestone Corp. | 208,200 | $ 7,453,534 | |
Automobiles - 9.7% | |||
Honda Motor Co. Ltd. | 557,800 | 18,510,415 | |
Mazda Motor Corp. | 1,633,000 | 7,299,663 | |
Suzuki Motor Corp. | 383,000 | 9,871,424 | |
Toyota Motor Corp. | 176,800 | 9,552,179 | |
| 45,233,681 | ||
Household Durables - 1.1% | |||
Iida Group Holdings Co. Ltd. (a) | 339,400 | 5,046,100 | |
Internet & Catalog Retail - 4.2% | |||
Rakuten, Inc. | 1,496,900 | 19,356,402 | |
Leisure Products - 0.9% | |||
Sega Sammy Holdings, Inc. | 213,800 | 4,299,631 | |
Media - 0.8% | |||
Fuji Media Holdings, Inc. | 221,700 | 3,732,046 | |
Multiline Retail - 3.6% | |||
Don Quijote Holdings Co. Ltd. | 139,300 | 7,330,503 | |
Ryohin Keikaku Co. Ltd. | 83,600 | 9,387,470 | |
| 16,717,973 | ||
TOTAL CONSUMER DISCRETIONARY | 101,839,367 | ||
CONSUMER STAPLES - 7.5% | |||
Food & Staples Retailing - 1.7% | |||
Seven & i Holdings Co., Ltd. | 199,100 | 7,850,268 | |
Tobacco - 5.8% | |||
Japan Tobacco, Inc. | 821,300 | 26,960,266 | |
TOTAL CONSUMER STAPLES | 34,810,534 | ||
ENERGY - 1.7% | |||
Energy Equipment & Services - 0.4% | |||
Modec, Inc. (d) | 90,200 | 1,993,955 | |
Oil, Gas & Consumable Fuels - 1.3% | |||
INPEX Corp. | 395,700 | 5,759,296 | |
TOTAL ENERGY | 7,753,251 | ||
FINANCIALS - 18.8% | |||
Banks - 6.1% | |||
Mitsubishi UFJ Financial Group, Inc. | 3,069,200 | 16,326,602 | |
Mizuho Financial Group, Inc. | 6,206,700 | 12,156,493 | |
| 28,483,095 | ||
Capital Markets - 0.9% | |||
Daiwa Securities Group, Inc. | 558,000 | 4,175,380 | |
Consumer Finance - 1.9% | |||
ACOM Co. Ltd. (a)(d) | 2,630,900 | 8,955,379 | |
| |||
Shares | Value | ||
Diversified Financial Services - 3.0% | |||
Japan Exchange Group, Inc. | 80,500 | $ 1,588,976 | |
ORIX Corp. | 860,800 | 12,436,070 | |
| 14,025,046 | ||
Insurance - 2.2% | |||
Tokio Marine Holdings, Inc. | 341,500 | 10,057,774 | |
Real Estate Management & Development - 4.7% | |||
AEON Mall Co. Ltd. | 282,700 | 6,730,491 | |
Mitsui Fudosan Co. Ltd. | 507,000 | 14,981,631 | |
| 21,712,122 | ||
TOTAL FINANCIALS | 87,408,796 | ||
HEALTH CARE - 6.7% | |||
Health Care Providers & Services - 2.7% | |||
Message Co. Ltd. (d) | 243,700 | 7,806,695 | |
Miraca Holdings, Inc. | 104,100 | 4,510,813 | |
| 12,317,508 | ||
Pharmaceuticals - 4.0% | |||
Astellas Pharma, Inc. | 1,679,000 | 18,672,891 | |
TOTAL HEALTH CARE | 30,990,399 | ||
INDUSTRIALS - 16.4% | |||
Construction & Engineering - 1.2% | |||
Toshiba Plant Systems & Services Corp. | 386,100 | 5,676,219 | |
Electrical Equipment - 3.1% | |||
Mitsubishi Electric Corp. | 641,000 | 7,291,857 | |
Sumitomo Electric Industries Ltd. | 505,100 | 6,971,156 | |
| 14,263,013 | ||
Machinery - 3.4% | |||
Komatsu Ltd. | 358,700 | 7,897,243 | |
Makita Corp. | 142,400 | 7,549,352 | |
| 15,446,595 | ||
Road & Rail - 4.1% | |||
East Japan Railway Co. | 262,400 | 19,129,136 | |
Trading Companies & Distributors - 4.6% | |||
Mitsui & Co. Ltd. | 985,900 | 13,973,386 | |
Sumitomo Corp. | 571,000 | 7,411,522 | |
| 21,384,908 | ||
TOTAL INDUSTRIALS | 75,899,871 | ||
INFORMATION TECHNOLOGY - 12.0% | |||
Electronic Equipment & Components - 9.0% | |||
Azbil Corp. | 207,200 | 4,695,871 | |
Hitachi Ltd. | 1,616,000 | 11,491,485 | |
Hoya Corp. | 599,300 | 17,668,022 | |
Shimadzu Corp. | 902,000 | 7,702,313 | |
| 41,557,691 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.4% | |||
Kakaku.com, Inc. | 627,200 | $ 8,926,258 | |
Naver Corp. | 3,266 | 2,333,084 | |
| 11,259,342 | ||
Technology Hardware, Storage & Peripherals - 0.6% | |||
Wacom Co. Ltd. (d) | 409,400 | 2,679,010 | |
TOTAL INFORMATION TECHNOLOGY | 55,496,043 | ||
MATERIALS - 3.7% | |||
Chemicals - 2.7% | |||
JSR Corp. | 289,800 | 4,748,031 | |
Shin-Etsu Chemical Co., Ltd. | 134,800 | 7,908,548 | |
| 12,656,579 | ||
Metals & Mining - 1.0% | |||
Nippon Steel & Sumitomo Metal Corp. | 1,777,000 | 4,658,248 | |
TOTAL MATERIALS | 17,314,827 | ||
TELECOMMUNICATION SERVICES - 8.5% | |||
Diversified Telecommunication Services - 2.2% | |||
Nippon Telegraph & Telephone Corp. | 180,400 | 10,010,897 | |
Wireless Telecommunication Services - 6.3% | |||
KDDI Corp. | 252,800 | 13,456,621 | |
SoftBank Corp. | 212,300 | 15,761,305 | |
| 29,217,926 | ||
TOTAL TELECOMMUNICATION SERVICES | 39,228,823 | ||
| |||
Shares | Value | ||
UTILITIES - 1.6% | |||
Electric Utilities - 1.6% | |||
Kansai Electric Power Co., Inc. (a) | 867,400 | $ 7,262,624 | |
TOTAL COMMON STOCKS (Cost $475,026,329) |
| ||
Money Market Funds - 2.9% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 185,092 | 185,092 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 13,411,903 | 13,411,903 | |
TOTAL MONEY MARKET FUNDS (Cost $13,596,995) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $488,623,324) | 471,601,530 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (7,799,458) | ||
NET ASSETS - 100% | $ 463,802,072 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 1,958 |
Fidelity Securities Lending Cash Central Fund | 18,514 |
Total | $ 20,472 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 101,839,367 | $ 73,776,773 | $ 28,062,594 | $ - |
Consumer Staples | 34,810,534 | 34,810,534 | - | - |
Energy | 7,753,251 | 7,753,251 | - | - |
Financials | 87,408,796 | 58,925,701 | 28,483,095 | - |
Health Care | 30,990,399 | 30,990,399 | - | - |
Industrials | 75,899,871 | 68,002,628 | 7,897,243 | - |
Information Technology | 55,496,043 | 55,496,043 | - | - |
Materials | 17,314,827 | 17,314,827 | - | - |
Telecommunication Services | 39,228,823 | 29,217,926 | 10,010,897 | - |
Utilities | 7,262,624 | 7,262,624 | - | - |
Money Market Funds | 13,596,995 | 13,596,995 | - | - |
Total Investments in Securities: | $ 471,601,530 | $ 397,147,701 | $ 74,453,829 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 126,926,560 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Japan Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,564,430) - See accompanying schedule: Unaffiliated issuers (cost $475,026,329) | $ 458,004,535 |
|
Fidelity Central Funds (cost $13,596,995) | 13,596,995 |
|
Total Investments (cost $488,623,324) |
| $ 471,601,530 |
Receivable for investments sold | 2,245,924 | |
Receivable for fund shares sold | 198,348 | |
Dividends receivable | 4,223,884 | |
Distributions receivable from Fidelity Central Funds | 6,035 | |
Prepaid expenses | 502 | |
Other receivables | 10,471 | |
Total assets | 478,286,694 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 663,120 | |
Accrued management fee | 235,087 | |
Distribution and service plan fees payable | 17,167 | |
Other affiliated payables | 100,576 | |
Other payables and accrued expenses | 56,769 | |
Collateral on securities loaned, at value | 13,411,903 | |
Total liabilities | 14,484,622 | |
|
|
|
Net Assets | $ 463,802,072 | |
Net Assets consist of: |
| |
Paid in capital | $ 679,475,444 | |
Undistributed net investment income | 2,200,058 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (200,835,017) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (17,038,413) | |
Net Assets | $ 463,802,072 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.06 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.06) | $ 11.73 | |
Class T: | $ 11.05 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.05) | $ 11.45 | |
Class B: | $ 11.10 | |
|
|
|
Class C: | $ 11.04 | |
|
|
|
Japan: | $ 11.08 | |
|
|
|
Institutional Class: | $ 11.07 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,165,951 |
Income from Fidelity Central Funds |
| 20,472 |
Income before foreign taxes withheld |
| 5,186,423 |
Less foreign taxes withheld |
| (515,819) |
Total income |
| 4,670,604 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 1,799,032 | |
Performance adjustment | (238,894) | |
Transfer agent fees | 501,133 | |
Distribution and service plan fees | 105,349 | |
Accounting and security lending fees | 132,617 | |
Custodian fees and expenses | 34,741 | |
Independent trustees' compensation | 1,055 | |
Registration fees | 68,740 | |
Audit | 36,802 | |
Legal | 1,222 | |
Interest | 1,495 | |
Miscellaneous | 13,989 | |
Total expenses before reductions | 2,457,281 | |
Expense reductions | (1,146) | 2,456,135 |
Net investment income (loss) | 2,214,469 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (2,455,489) | |
Foreign currency transactions | (227,828) | |
Total net realized gain (loss) |
| (2,683,317) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (36,094,909) | |
Assets and liabilities in foreign currencies | (24,795) | |
Total change in net unrealized appreciation (depreciation) |
| (36,119,704) |
Net gain (loss) | (38,803,021) | |
Net increase (decrease) in net assets resulting from operations | $ (36,588,552) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,214,469 | $ 5,017,815 |
Net realized gain (loss) | (2,683,317) | 22,342,026 |
Change in net unrealized appreciation (depreciation) | (36,119,704) | 92,633,788 |
Net increase (decrease) in net assets resulting from operations | (36,588,552) | 119,993,629 |
Distributions to shareholders from net investment income | (4,561,447) | (5,641,978) |
Distributions to shareholders from net realized gain | (402,380) | (3,106,863) |
Total distributions | (4,963,827) | (8,748,841) |
Share transactions - net increase (decrease) | (34,104,465) | 51,180,009 |
Redemption fees | 78,244 | 461,366 |
Total increase (decrease) in net assets | (75,578,600) | 162,886,163 |
|
|
|
Net Assets | ||
Beginning of period | 539,380,672 | 376,494,509 |
End of period (including undistributed net investment income of $2,200,058 and undistributed net investment income of $4,547,036, respectively) | $ 463,802,072 | $ 539,380,672 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.00 | $ 9.30 | $ 9.54 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .03 | .08 | .09 | .09 |
Net realized and unrealized gain (loss) | (.88) | 2.80 | (.15) | (1.39) |
Total from investment operations | (.85) | 2.88 | (.06) | (1.30) |
Distributions from net investment income | (.08) | (.11) | (.13) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.09) | (.19) | (.18) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.06 | $ 12.00 | $ 9.30 | $ 9.54 |
Total Return B, C, D | (7.14)% | 31.58% | (.64)% | (11.91)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.25% A | 1.26% | 1.42% | 1.20% A |
Expenses net of fee waivers, if any | 1.25% A | 1.26% | 1.38% | 1.20% A |
Expenses net of all reductions | 1.25% A | 1.25% | 1.36% | 1.16% A |
Net investment income (loss) | .57% A | .75% | .94% | 1.02% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 19,368 | $ 20,520 | $ 9,495 | $ 13,208 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.96 | $ 9.28 | $ 9.51 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .02 | .05 | .06 | .07 |
Net realized and unrealized gain (loss) | (.88) | 2.78 | (.13) | (1.40) |
Total from investment operations | (.86) | 2.83 | (.07) | (1.33) |
Distributions from net investment income | (.04) | (.08) | (.11) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.05) | (.16) | (.16) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.05 | $ 11.96 | $ 9.28 | $ 9.51 |
Total Return B, C, D | (7.21)% | 31.04% | (.75)% | (12.19)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.55% A | 1.55% | 1.70% | 1.48% A |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.66% | 1.48% A |
Expenses net of all reductions | 1.55% A | 1.53% | 1.64% | 1.44% A |
Net investment income (loss) | .27% A | .46% | .66% | .74% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,500 | $ 5,357 | $ 3,934 | $ 4,643 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.00 | $ 9.26 | $ 9.47 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | (.01) | - K | .02 | .02 |
Net realized and unrealized gain (loss) | (.89) | 2.80 | (.14) | (1.39) |
Total from investment operations | (.90) | 2.80 | (.12) | (1.37) |
Distributions from net investment income | - | - | (.04) | - |
Distributions from net realized gain | - | (.07) | (.05) | - |
Total distributions | - | (.07) | (.09) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.10 | $ 12.00 | $ 9.26 | $ 9.47 |
Total Return B, C, D | (7.50)% | 30.52% | (1.24)% | (12.56)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 2.02% A | 2.02% | 2.17% | 1.95% A |
Expenses net of fee waivers, if any | 2.02% A | 2.02% | 2.13% | 1.95% A |
Expenses net of all reductions | 2.02% A | 2.01% | 2.11% | 1.91% A |
Net investment income (loss) | (.20)% A | (.02)% | .19% | .27% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 528 | $ 874 | $ 1,012 | $ 1,458 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.96 | $ 9.25 | $ 9.48 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | (.01) | - K | .02 | .03 |
Net realized and unrealized gain (loss) | (.88) | 2.79 | (.14) | (1.39) |
Total from investment operations | (.89) | 2.79 | (.12) | (1.36) |
Distributions from net investment income | (.03) | (.01) | (.06) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.03) L | (.09) | (.11) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.04 | $ 11.96 | $ 9.25 | $ 9.48 |
Total Return B, C, D | (7.43)% | 30.55% | (1.27)% | (12.47)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.94% A | 1.97% | 2.15% | 1.92% A |
Expenses net of fee waivers, if any | 1.94% A | 1.97% | 2.11% | 1.92% A |
Expenses net of all reductions | 1.94% A | 1.95% | 2.09% | 1.88% A |
Net investment income (loss) | (.12)% A | .04% | .21% | .30% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,631 | $ 11,824 | $ 7,015 | $ 8,750 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. L Total distributions of $.03 per share is comprised of distributions from net investment income of $.025 and distributions from net realized gain of $.009 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Japan
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.03 | $ 9.34 | $ 9.57 | $ 10.57 | $ 10.03 | $ 9.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .12 | .12 | .15 | .10 | .08 |
Net realized and unrealized gain (loss) | (.89) | 2.79 | (.14) | (.75) | .61 | 1.04 |
Total from investment operations | (.84) | 2.91 | (.02) | (.60) | .71 | 1.12 |
Distributions from net investment income | (.11) | (.15) | (.16) | (.20) | (.07) | (.11) |
Distributions from net realized gain | (.01) | (.08) | (.05) | (.21) | (.10) | (.01) |
Total distributions | (.11) J | (.23) | (.21) | (.41) | (.17) | (.12) |
Redemption fees added to paid in capital D | - I | .01 | - I | .01 | - I | - I |
Net asset value, end of period | $ 11.08 | $ 12.03 | $ 9.34 | $ 9.57 | $ 10.57 | $ 10.03 |
Total Return B, C | (7.02)% | 31.92% | (.19)% | (6.00)% | 7.12% | 12.84% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .91% A | .93% | 1.09% | .86% | .93% | .90% |
Expenses net of fee waivers, if any | .91% A | .93% | 1.06% | .84% | .93% | .90% |
Expenses net of all reductions | .91% A | .91% | 1.04% | .80% | .93% | .89% |
Net investment income (loss) | .91% A | 1.08% | 1.26% | 1.38% | .97% | .90% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 410,968 | $ 480,773 | $ 353,550 | $ 450,417 | $ 649,316 | $ 944,902 |
Portfolio turnover rate F | 195% A | 68% | 52% | 134% H | 43% | 73% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J Total distributions of $.11 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.009 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.02 | $ 9.33 | $ 9.57 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .05 | .13 | .12 | .13 |
Net realized and unrealized gain (loss) | (.88) | 2.78 | (.14) | (1.40) |
Total from investment operations | (.83) | 2.91 | (.02) | (1.27) |
Distributions from net investment income | (.12) | (.15) | (.17) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.12) K | (.23) | (.22) | - |
Redemption fees added to paid in capital D | - J | .01 | - J | .01 |
Net asset value, end of period | $ 11.07 | $ 12.02 | $ 9.33 | $ 9.57 |
Total Return B, C | (6.94)% | 32.04% | (.18)% | (11.63)% |
Ratios to Average Net Assets E, H |
|
|
|
|
Expenses before reductions | .90% A | .90% | 1.03% | .79% A |
Expenses net of fee waivers, if any | .90% A | .90% | 1.01% | .79% A |
Expenses net of all reductions | .90% A | .88% | .99% | .75% A |
Net investment income (loss) | .92% A | 1.11% | 1.31% | 1.43% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 15,808 | $ 20,033 | $ 1,488 | $ 2,715 |
Portfolio turnover rate F | 195% A | 68% | 52% | 134% I |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.009 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Japan Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Japan and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 10,885,232 |
Gross unrealized depreciation | (34,415,329) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (23,530,097) |
|
|
Tax cost | $ 495,131,627 |
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2016 | $ (3,870,588) |
2017 | (60,951,366) |
2018 | (26,887,863) |
2019 | (98,806,037) |
Total with expiration | $ (190,515,854) |
Due to large redemptions in a prior period, $161,303,179 of capital losses that will be available to offset future capital gains of the Fund will be limited to approximately $18,885,324 per year.
The Fund acquired $5,487,891 of its capital loss carryforward as part of a merger in a prior period. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $1,371,973 per year.
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $495,051,433 and $522,491,570, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Japan as compared to its benchmark index, the TOPIX, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .61% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 25,693 | $ 8,492 |
Class T | .25% | .25% | 12,724 | 2,568 |
Class B | .75% | .25% | 3,516 | 2,963 |
Class C | .75% | .25% | 63,416 | 46,458 |
|
|
| $ 105,349 | $ 60,481 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 19,058 |
Class T | 765 |
Class B* | 3,797 |
Class C* | 4,617 |
| $ 28,237 |
* When Class B and 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 applicable class were as follows:
| Amount | % of |
Class A | $ 28,366 | .28 |
Class T | 8,313 | .33 |
Class B | 1,049 | .30 |
Class C | 13,937 | .22 |
Japan | 433,688 | .19 |
Institutional Class | 15,780 | .18 |
| $ 501,133 |
|
* 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.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 42,055,500 | .32% | $ 1,495 |
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 $491 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
on the next business day. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $18,514. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $1,146.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 141,802 | $ 106,946 |
Class T | 19,055 | 32,766 |
Class C | 25,435 | 8,397 |
Class B | - | - |
Japan | 4,169,355 | 5,470,176 |
Institutional Class | 205,800 | 23,693 |
Total | $ 4,561,447 | $ 5,641,978 |
From net realized gain |
|
|
Class A | $ 15,756 | $ 79,705 |
Class T | 3,988 | 33,186 |
Class B | - | 6,644 |
Class C | 9,157 | 55,283 |
Japan | 357,373 | 2,919,891 |
Institutional Class | 16,106 | 12,154 |
Total | $ 402,380 | $ 3,106,863 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 429,589 | 1,327,321 | $ 5,038,956 | $ 15,043,376 |
Reinvestment of distributions | 11,439 | 17,701 | 136,237 | 165,861 |
Shares redeemed | (399,903) | (655,691) | (4,640,800) | (7,373,829) |
Net increase (decrease) | 41,125 | 689,331 | $ 534,393 | $ 7,835,408 |
Class T |
|
|
|
|
Shares sold | 38,505 | 195,003 | $ 450,793 | $ 2,164,942 |
Reinvestment of distributions | 1,875 | 6,834 | 22,328 | 64,034 |
Shares redeemed | (80,770) | (178,171) | (929,510) | (1,988,129) |
Net increase (decrease) | (40,390) | 23,666 | $ (456,389) | $ 240,847 |
Class B |
|
|
|
|
Shares sold | 818 | 14,757 | $ 10,000 | $ 173,151 |
Reinvestment of distributions | - | 463 | - | 4,366 |
Shares redeemed | (26,123) | (51,705) | (303,943) | (551,755) |
Net increase (decrease) | (25,305) | (36,485) | $ (293,943) | $ (374,238) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class C |
|
|
|
|
Shares sold | 336,840 | 526,927 | $ 3,934,750 | $ 5,994,932 |
Reinvestment of distributions | 2,168 | 5,172 | 25,821 | 48,618 |
Shares redeemed | (183,182) | (302,151) | (2,103,942) | (3,208,131) |
Net increase (decrease) | 155,826 | 229,948 | $ 1,856,629 | $ 2,835,419 |
Japan |
|
|
|
|
Shares sold | 2,507,308 | 14,062,957 | $ 29,518,071 | $ 157,503,214 |
Reinvestment of distributions | 370,099 | 872,770 | 4,407,882 | 8,177,855 |
Shares redeemed | (5,767,251) | (12,837,219) | (66,699,043) | (141,848,609) |
Net increase (decrease) | (2,889,844) | 2,098,508 | $ (32,773,090) | $ 23,832,460 |
Institutional Class |
|
|
|
|
Shares sold | 422,686 | 1,891,907 | $ 4,885,972 | $ 21,220,551 |
Reinvestment of distributions | 13,570 | 2,940 | 161,488 | 27,514 |
Shares redeemed | (674,553) | (387,518) | (8,019,525) | (4,437,952) |
Net increase (decrease) | (238,297) | 1,507,329 | $ (2,972,065) | $ 16,810,113 |
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, Strategic Advisers International Fund was the owner of record of approximately 40% of the total outstanding shares of the Fund. Mutual Funds managed by the investment adviser or its affiliates were the owners of record, in the aggregate, of approximately 42% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AJPNA-USAN-0614
1.917400.103
Fidelity Advisor®
Japan
Fund - Institutional Class
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Institutional Class is a class of
Fidelity® Japan Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Japan Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 928.60 | $ 5.98 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.60 | $ 6.26 |
Class T | 1.55% |
|
|
|
Actual |
| $ 1,000.00 | $ 927.90 | $ 7.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class B | 2.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 925.00 | $ 9.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.78 | $ 10.09 |
Class C | 1.94% |
|
|
|
Actual |
| $ 1,000.00 | $ 925.70 | $ 9.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.17 | $ 9.69 |
Japan | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 929.80 | $ 4.35 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.28 | $ 4.56 |
Institutional Class | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 930.60 | $ 4.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.33 | $ 4.51 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Japan Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Japan | 98.3% |
| |
United States of America* | 1.2% |
| |
Korea (South) | 0.5% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Japan | 97.1% |
| |
United States of America* | 2.9% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.8 | 97.1 |
Short-Term Investments and Net Other Assets (Liabilities) | 1.2 | 2.9 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Japan Tobacco, Inc. (Tobacco) | 5.8 | 0.0 |
Rakuten, Inc. (Internet & Catalog Retail) | 4.2 | 0.0 |
East Japan Railway Co. (Road & Rail) | 4.1 | 0.0 |
Astellas Pharma, Inc. (Pharmaceuticals) | 4.0 | 0.0 |
Honda Motor Co. Ltd. (Automobiles) | 4.0 | 3.8 |
Hoya Corp. (Electronic Equipment & Components) | 3.8 | 0.0 |
Mitsubishi UFJ Financial Group, Inc. (Banks) | 3.5 | 4.9 |
SoftBank Corp. (Wireless Telecommunication Services) | 3.4 | 0.0 |
Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) | 3.2 | 0.0 |
Mitsui & Co. Ltd. (Trading Companies & Distributors) | 3.0 | 0.0 |
| 39.0 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 21.9 | 25.4 |
Financials | 18.8 | 20.3 |
Industrials | 16.4 | 13.0 |
Information Technology | 12.0 | 12.8 |
Telecommunication Services | 8.5 | 3.2 |
Consumer Staples | 7.5 | 2.1 |
Health Care | 6.7 | 7.4 |
Materials | 3.7 | 11.5 |
Energy | 1.7 | 0.0 |
Utilities | 1.6 | 1.4 |
Semiannual Report
Fidelity Japan Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 21.9% | |||
Auto Components - 1.6% | |||
Bridgestone Corp. | 208,200 | $ 7,453,534 | |
Automobiles - 9.7% | |||
Honda Motor Co. Ltd. | 557,800 | 18,510,415 | |
Mazda Motor Corp. | 1,633,000 | 7,299,663 | |
Suzuki Motor Corp. | 383,000 | 9,871,424 | |
Toyota Motor Corp. | 176,800 | 9,552,179 | |
| 45,233,681 | ||
Household Durables - 1.1% | |||
Iida Group Holdings Co. Ltd. (a) | 339,400 | 5,046,100 | |
Internet & Catalog Retail - 4.2% | |||
Rakuten, Inc. | 1,496,900 | 19,356,402 | |
Leisure Products - 0.9% | |||
Sega Sammy Holdings, Inc. | 213,800 | 4,299,631 | |
Media - 0.8% | |||
Fuji Media Holdings, Inc. | 221,700 | 3,732,046 | |
Multiline Retail - 3.6% | |||
Don Quijote Holdings Co. Ltd. | 139,300 | 7,330,503 | |
Ryohin Keikaku Co. Ltd. | 83,600 | 9,387,470 | |
| 16,717,973 | ||
TOTAL CONSUMER DISCRETIONARY | 101,839,367 | ||
CONSUMER STAPLES - 7.5% | |||
Food & Staples Retailing - 1.7% | |||
Seven & i Holdings Co., Ltd. | 199,100 | 7,850,268 | |
Tobacco - 5.8% | |||
Japan Tobacco, Inc. | 821,300 | 26,960,266 | |
TOTAL CONSUMER STAPLES | 34,810,534 | ||
ENERGY - 1.7% | |||
Energy Equipment & Services - 0.4% | |||
Modec, Inc. (d) | 90,200 | 1,993,955 | |
Oil, Gas & Consumable Fuels - 1.3% | |||
INPEX Corp. | 395,700 | 5,759,296 | |
TOTAL ENERGY | 7,753,251 | ||
FINANCIALS - 18.8% | |||
Banks - 6.1% | |||
Mitsubishi UFJ Financial Group, Inc. | 3,069,200 | 16,326,602 | |
Mizuho Financial Group, Inc. | 6,206,700 | 12,156,493 | |
| 28,483,095 | ||
Capital Markets - 0.9% | |||
Daiwa Securities Group, Inc. | 558,000 | 4,175,380 | |
Consumer Finance - 1.9% | |||
ACOM Co. Ltd. (a)(d) | 2,630,900 | 8,955,379 | |
| |||
Shares | Value | ||
Diversified Financial Services - 3.0% | |||
Japan Exchange Group, Inc. | 80,500 | $ 1,588,976 | |
ORIX Corp. | 860,800 | 12,436,070 | |
| 14,025,046 | ||
Insurance - 2.2% | |||
Tokio Marine Holdings, Inc. | 341,500 | 10,057,774 | |
Real Estate Management & Development - 4.7% | |||
AEON Mall Co. Ltd. | 282,700 | 6,730,491 | |
Mitsui Fudosan Co. Ltd. | 507,000 | 14,981,631 | |
| 21,712,122 | ||
TOTAL FINANCIALS | 87,408,796 | ||
HEALTH CARE - 6.7% | |||
Health Care Providers & Services - 2.7% | |||
Message Co. Ltd. (d) | 243,700 | 7,806,695 | |
Miraca Holdings, Inc. | 104,100 | 4,510,813 | |
| 12,317,508 | ||
Pharmaceuticals - 4.0% | |||
Astellas Pharma, Inc. | 1,679,000 | 18,672,891 | |
TOTAL HEALTH CARE | 30,990,399 | ||
INDUSTRIALS - 16.4% | |||
Construction & Engineering - 1.2% | |||
Toshiba Plant Systems & Services Corp. | 386,100 | 5,676,219 | |
Electrical Equipment - 3.1% | |||
Mitsubishi Electric Corp. | 641,000 | 7,291,857 | |
Sumitomo Electric Industries Ltd. | 505,100 | 6,971,156 | |
| 14,263,013 | ||
Machinery - 3.4% | |||
Komatsu Ltd. | 358,700 | 7,897,243 | |
Makita Corp. | 142,400 | 7,549,352 | |
| 15,446,595 | ||
Road & Rail - 4.1% | |||
East Japan Railway Co. | 262,400 | 19,129,136 | |
Trading Companies & Distributors - 4.6% | |||
Mitsui & Co. Ltd. | 985,900 | 13,973,386 | |
Sumitomo Corp. | 571,000 | 7,411,522 | |
| 21,384,908 | ||
TOTAL INDUSTRIALS | 75,899,871 | ||
INFORMATION TECHNOLOGY - 12.0% | |||
Electronic Equipment & Components - 9.0% | |||
Azbil Corp. | 207,200 | 4,695,871 | |
Hitachi Ltd. | 1,616,000 | 11,491,485 | |
Hoya Corp. | 599,300 | 17,668,022 | |
Shimadzu Corp. | 902,000 | 7,702,313 | |
| 41,557,691 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.4% | |||
Kakaku.com, Inc. | 627,200 | $ 8,926,258 | |
Naver Corp. | 3,266 | 2,333,084 | |
| 11,259,342 | ||
Technology Hardware, Storage & Peripherals - 0.6% | |||
Wacom Co. Ltd. (d) | 409,400 | 2,679,010 | |
TOTAL INFORMATION TECHNOLOGY | 55,496,043 | ||
MATERIALS - 3.7% | |||
Chemicals - 2.7% | |||
JSR Corp. | 289,800 | 4,748,031 | |
Shin-Etsu Chemical Co., Ltd. | 134,800 | 7,908,548 | |
| 12,656,579 | ||
Metals & Mining - 1.0% | |||
Nippon Steel & Sumitomo Metal Corp. | 1,777,000 | 4,658,248 | |
TOTAL MATERIALS | 17,314,827 | ||
TELECOMMUNICATION SERVICES - 8.5% | |||
Diversified Telecommunication Services - 2.2% | |||
Nippon Telegraph & Telephone Corp. | 180,400 | 10,010,897 | |
Wireless Telecommunication Services - 6.3% | |||
KDDI Corp. | 252,800 | 13,456,621 | |
SoftBank Corp. | 212,300 | 15,761,305 | |
| 29,217,926 | ||
TOTAL TELECOMMUNICATION SERVICES | 39,228,823 | ||
| |||
Shares | Value | ||
UTILITIES - 1.6% | |||
Electric Utilities - 1.6% | |||
Kansai Electric Power Co., Inc. (a) | 867,400 | $ 7,262,624 | |
TOTAL COMMON STOCKS (Cost $475,026,329) |
| ||
Money Market Funds - 2.9% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 185,092 | 185,092 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 13,411,903 | 13,411,903 | |
TOTAL MONEY MARKET FUNDS (Cost $13,596,995) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $488,623,324) | 471,601,530 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (7,799,458) | ||
NET ASSETS - 100% | $ 463,802,072 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 1,958 |
Fidelity Securities Lending Cash Central Fund | 18,514 |
Total | $ 20,472 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 101,839,367 | $ 73,776,773 | $ 28,062,594 | $ - |
Consumer Staples | 34,810,534 | 34,810,534 | - | - |
Energy | 7,753,251 | 7,753,251 | - | - |
Financials | 87,408,796 | 58,925,701 | 28,483,095 | - |
Health Care | 30,990,399 | 30,990,399 | - | - |
Industrials | 75,899,871 | 68,002,628 | 7,897,243 | - |
Information Technology | 55,496,043 | 55,496,043 | - | - |
Materials | 17,314,827 | 17,314,827 | - | - |
Telecommunication Services | 39,228,823 | 29,217,926 | 10,010,897 | - |
Utilities | 7,262,624 | 7,262,624 | - | - |
Money Market Funds | 13,596,995 | 13,596,995 | - | - |
Total Investments in Securities: | $ 471,601,530 | $ 397,147,701 | $ 74,453,829 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 126,926,560 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Japan Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,564,430) - See accompanying schedule: Unaffiliated issuers (cost $475,026,329) | $ 458,004,535 |
|
Fidelity Central Funds (cost $13,596,995) | 13,596,995 |
|
Total Investments (cost $488,623,324) |
| $ 471,601,530 |
Receivable for investments sold | 2,245,924 | |
Receivable for fund shares sold | 198,348 | |
Dividends receivable | 4,223,884 | |
Distributions receivable from Fidelity Central Funds | 6,035 | |
Prepaid expenses | 502 | |
Other receivables | 10,471 | |
Total assets | 478,286,694 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 663,120 | |
Accrued management fee | 235,087 | |
Distribution and service plan fees payable | 17,167 | |
Other affiliated payables | 100,576 | |
Other payables and accrued expenses | 56,769 | |
Collateral on securities loaned, at value | 13,411,903 | |
Total liabilities | 14,484,622 | |
|
|
|
Net Assets | $ 463,802,072 | |
Net Assets consist of: |
| |
Paid in capital | $ 679,475,444 | |
Undistributed net investment income | 2,200,058 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (200,835,017) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (17,038,413) | |
Net Assets | $ 463,802,072 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.06 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.06) | $ 11.73 | |
Class T: | $ 11.05 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.05) | $ 11.45 | |
Class B: | $ 11.10 | |
|
|
|
Class C: | $ 11.04 | |
|
|
|
Japan: | $ 11.08 | |
|
|
|
Institutional Class: | $ 11.07 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,165,951 |
Income from Fidelity Central Funds |
| 20,472 |
Income before foreign taxes withheld |
| 5,186,423 |
Less foreign taxes withheld |
| (515,819) |
Total income |
| 4,670,604 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 1,799,032 | |
Performance adjustment | (238,894) | |
Transfer agent fees | 501,133 | |
Distribution and service plan fees | 105,349 | |
Accounting and security lending fees | 132,617 | |
Custodian fees and expenses | 34,741 | |
Independent trustees' compensation | 1,055 | |
Registration fees | 68,740 | |
Audit | 36,802 | |
Legal | 1,222 | |
Interest | 1,495 | |
Miscellaneous | 13,989 | |
Total expenses before reductions | 2,457,281 | |
Expense reductions | (1,146) | 2,456,135 |
Net investment income (loss) | 2,214,469 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (2,455,489) | |
Foreign currency transactions | (227,828) | |
Total net realized gain (loss) |
| (2,683,317) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (36,094,909) | |
Assets and liabilities in foreign currencies | (24,795) | |
Total change in net unrealized appreciation (depreciation) |
| (36,119,704) |
Net gain (loss) | (38,803,021) | |
Net increase (decrease) in net assets resulting from operations | $ (36,588,552) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,214,469 | $ 5,017,815 |
Net realized gain (loss) | (2,683,317) | 22,342,026 |
Change in net unrealized appreciation (depreciation) | (36,119,704) | 92,633,788 |
Net increase (decrease) in net assets resulting from operations | (36,588,552) | 119,993,629 |
Distributions to shareholders from net investment income | (4,561,447) | (5,641,978) |
Distributions to shareholders from net realized gain | (402,380) | (3,106,863) |
Total distributions | (4,963,827) | (8,748,841) |
Share transactions - net increase (decrease) | (34,104,465) | 51,180,009 |
Redemption fees | 78,244 | 461,366 |
Total increase (decrease) in net assets | (75,578,600) | 162,886,163 |
|
|
|
Net Assets | ||
Beginning of period | 539,380,672 | 376,494,509 |
End of period (including undistributed net investment income of $2,200,058 and undistributed net investment income of $4,547,036, respectively) | $ 463,802,072 | $ 539,380,672 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.00 | $ 9.30 | $ 9.54 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .03 | .08 | .09 | .09 |
Net realized and unrealized gain (loss) | (.88) | 2.80 | (.15) | (1.39) |
Total from investment operations | (.85) | 2.88 | (.06) | (1.30) |
Distributions from net investment income | (.08) | (.11) | (.13) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.09) | (.19) | (.18) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.06 | $ 12.00 | $ 9.30 | $ 9.54 |
Total Return B, C, D | (7.14)% | 31.58% | (.64)% | (11.91)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.25% A | 1.26% | 1.42% | 1.20% A |
Expenses net of fee waivers, if any | 1.25% A | 1.26% | 1.38% | 1.20% A |
Expenses net of all reductions | 1.25% A | 1.25% | 1.36% | 1.16% A |
Net investment income (loss) | .57% A | .75% | .94% | 1.02% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 19,368 | $ 20,520 | $ 9,495 | $ 13,208 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.96 | $ 9.28 | $ 9.51 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .02 | .05 | .06 | .07 |
Net realized and unrealized gain (loss) | (.88) | 2.78 | (.13) | (1.40) |
Total from investment operations | (.86) | 2.83 | (.07) | (1.33) |
Distributions from net investment income | (.04) | (.08) | (.11) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.05) | (.16) | (.16) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.05 | $ 11.96 | $ 9.28 | $ 9.51 |
Total Return B, C, D | (7.21)% | 31.04% | (.75)% | (12.19)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.55% A | 1.55% | 1.70% | 1.48% A |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.66% | 1.48% A |
Expenses net of all reductions | 1.55% A | 1.53% | 1.64% | 1.44% A |
Net investment income (loss) | .27% A | .46% | .66% | .74% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,500 | $ 5,357 | $ 3,934 | $ 4,643 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.00 | $ 9.26 | $ 9.47 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | (.01) | - K | .02 | .02 |
Net realized and unrealized gain (loss) | (.89) | 2.80 | (.14) | (1.39) |
Total from investment operations | (.90) | 2.80 | (.12) | (1.37) |
Distributions from net investment income | - | - | (.04) | - |
Distributions from net realized gain | - | (.07) | (.05) | - |
Total distributions | - | (.07) | (.09) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.10 | $ 12.00 | $ 9.26 | $ 9.47 |
Total Return B, C, D | (7.50)% | 30.52% | (1.24)% | (12.56)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 2.02% A | 2.02% | 2.17% | 1.95% A |
Expenses net of fee waivers, if any | 2.02% A | 2.02% | 2.13% | 1.95% A |
Expenses net of all reductions | 2.02% A | 2.01% | 2.11% | 1.91% A |
Net investment income (loss) | (.20)% A | (.02)% | .19% | .27% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 528 | $ 874 | $ 1,012 | $ 1,458 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.96 | $ 9.25 | $ 9.48 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | (.01) | - K | .02 | .03 |
Net realized and unrealized gain (loss) | (.88) | 2.79 | (.14) | (1.39) |
Total from investment operations | (.89) | 2.79 | (.12) | (1.36) |
Distributions from net investment income | (.03) | (.01) | (.06) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.03) L | (.09) | (.11) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.04 | $ 11.96 | $ 9.25 | $ 9.48 |
Total Return B, C, D | (7.43)% | 30.55% | (1.27)% | (12.47)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.94% A | 1.97% | 2.15% | 1.92% A |
Expenses net of fee waivers, if any | 1.94% A | 1.97% | 2.11% | 1.92% A |
Expenses net of all reductions | 1.94% A | 1.95% | 2.09% | 1.88% A |
Net investment income (loss) | (.12)% A | .04% | .21% | .30% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,631 | $ 11,824 | $ 7,015 | $ 8,750 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. L Total distributions of $.03 per share is comprised of distributions from net investment income of $.025 and distributions from net realized gain of $.009 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Japan
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.03 | $ 9.34 | $ 9.57 | $ 10.57 | $ 10.03 | $ 9.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .12 | .12 | .15 | .10 | .08 |
Net realized and unrealized gain (loss) | (.89) | 2.79 | (.14) | (.75) | .61 | 1.04 |
Total from investment operations | (.84) | 2.91 | (.02) | (.60) | .71 | 1.12 |
Distributions from net investment income | (.11) | (.15) | (.16) | (.20) | (.07) | (.11) |
Distributions from net realized gain | (.01) | (.08) | (.05) | (.21) | (.10) | (.01) |
Total distributions | (.11) J | (.23) | (.21) | (.41) | (.17) | (.12) |
Redemption fees added to paid in capital D | - I | .01 | - I | .01 | - I | - I |
Net asset value, end of period | $ 11.08 | $ 12.03 | $ 9.34 | $ 9.57 | $ 10.57 | $ 10.03 |
Total Return B, C | (7.02)% | 31.92% | (.19)% | (6.00)% | 7.12% | 12.84% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .91% A | .93% | 1.09% | .86% | .93% | .90% |
Expenses net of fee waivers, if any | .91% A | .93% | 1.06% | .84% | .93% | .90% |
Expenses net of all reductions | .91% A | .91% | 1.04% | .80% | .93% | .89% |
Net investment income (loss) | .91% A | 1.08% | 1.26% | 1.38% | .97% | .90% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 410,968 | $ 480,773 | $ 353,550 | $ 450,417 | $ 649,316 | $ 944,902 |
Portfolio turnover rate F | 195% A | 68% | 52% | 134% H | 43% | 73% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J Total distributions of $.11 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.009 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.02 | $ 9.33 | $ 9.57 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .05 | .13 | .12 | .13 |
Net realized and unrealized gain (loss) | (.88) | 2.78 | (.14) | (1.40) |
Total from investment operations | (.83) | 2.91 | (.02) | (1.27) |
Distributions from net investment income | (.12) | (.15) | (.17) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.12) K | (.23) | (.22) | - |
Redemption fees added to paid in capital D | - J | .01 | - J | .01 |
Net asset value, end of period | $ 11.07 | $ 12.02 | $ 9.33 | $ 9.57 |
Total Return B, C | (6.94)% | 32.04% | (.18)% | (11.63)% |
Ratios to Average Net Assets E, H |
|
|
|
|
Expenses before reductions | .90% A | .90% | 1.03% | .79% A |
Expenses net of fee waivers, if any | .90% A | .90% | 1.01% | .79% A |
Expenses net of all reductions | .90% A | .88% | .99% | .75% A |
Net investment income (loss) | .92% A | 1.11% | 1.31% | 1.43% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 15,808 | $ 20,033 | $ 1,488 | $ 2,715 |
Portfolio turnover rate F | 195% A | 68% | 52% | 134% I |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.009 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Japan Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Japan and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 10,885,232 |
Gross unrealized depreciation | (34,415,329) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (23,530,097) |
|
|
Tax cost | $ 495,131,627 |
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2016 | $ (3,870,588) |
2017 | (60,951,366) |
2018 | (26,887,863) |
2019 | (98,806,037) |
Total with expiration | $ (190,515,854) |
Due to large redemptions in a prior period, $161,303,179 of capital losses that will be available to offset future capital gains of the Fund will be limited to approximately $18,885,324 per year.
The Fund acquired $5,487,891 of its capital loss carryforward as part of a merger in a prior period. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $1,371,973 per year.
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $495,051,433 and $522,491,570, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Japan as compared to its benchmark index, the TOPIX, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .61% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 25,693 | $ 8,492 |
Class T | .25% | .25% | 12,724 | 2,568 |
Class B | .75% | .25% | 3,516 | 2,963 |
Class C | .75% | .25% | 63,416 | 46,458 |
|
|
| $ 105,349 | $ 60,481 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 19,058 |
Class T | 765 |
Class B* | 3,797 |
Class C* | 4,617 |
| $ 28,237 |
* When Class B and 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 applicable class were as follows:
| Amount | % of |
Class A | $ 28,366 | .28 |
Class T | 8,313 | .33 |
Class B | 1,049 | .30 |
Class C | 13,937 | .22 |
Japan | 433,688 | .19 |
Institutional Class | 15,780 | .18 |
| $ 501,133 |
|
* 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.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 42,055,500 | .32% | $ 1,495 |
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 $491 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
on the next business day. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $18,514. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $1,146.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 141,802 | $ 106,946 |
Class T | 19,055 | 32,766 |
Class C | 25,435 | 8,397 |
Class B | - | - |
Japan | 4,169,355 | 5,470,176 |
Institutional Class | 205,800 | 23,693 |
Total | $ 4,561,447 | $ 5,641,978 |
From net realized gain |
|
|
Class A | $ 15,756 | $ 79,705 |
Class T | 3,988 | 33,186 |
Class B | - | 6,644 |
Class C | 9,157 | 55,283 |
Japan | 357,373 | 2,919,891 |
Institutional Class | 16,106 | 12,154 |
Total | $ 402,380 | $ 3,106,863 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 429,589 | 1,327,321 | $ 5,038,956 | $ 15,043,376 |
Reinvestment of distributions | 11,439 | 17,701 | 136,237 | 165,861 |
Shares redeemed | (399,903) | (655,691) | (4,640,800) | (7,373,829) |
Net increase (decrease) | 41,125 | 689,331 | $ 534,393 | $ 7,835,408 |
Class T |
|
|
|
|
Shares sold | 38,505 | 195,003 | $ 450,793 | $ 2,164,942 |
Reinvestment of distributions | 1,875 | 6,834 | 22,328 | 64,034 |
Shares redeemed | (80,770) | (178,171) | (929,510) | (1,988,129) |
Net increase (decrease) | (40,390) | 23,666 | $ (456,389) | $ 240,847 |
Class B |
|
|
|
|
Shares sold | 818 | 14,757 | $ 10,000 | $ 173,151 |
Reinvestment of distributions | - | 463 | - | 4,366 |
Shares redeemed | (26,123) | (51,705) | (303,943) | (551,755) |
Net increase (decrease) | (25,305) | (36,485) | $ (293,943) | $ (374,238) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class C |
|
|
|
|
Shares sold | 336,840 | 526,927 | $ 3,934,750 | $ 5,994,932 |
Reinvestment of distributions | 2,168 | 5,172 | 25,821 | 48,618 |
Shares redeemed | (183,182) | (302,151) | (2,103,942) | (3,208,131) |
Net increase (decrease) | 155,826 | 229,948 | $ 1,856,629 | $ 2,835,419 |
Japan |
|
|
|
|
Shares sold | 2,507,308 | 14,062,957 | $ 29,518,071 | $ 157,503,214 |
Reinvestment of distributions | 370,099 | 872,770 | 4,407,882 | 8,177,855 |
Shares redeemed | (5,767,251) | (12,837,219) | (66,699,043) | (141,848,609) |
Net increase (decrease) | (2,889,844) | 2,098,508 | $ (32,773,090) | $ 23,832,460 |
Institutional Class |
|
|
|
|
Shares sold | 422,686 | 1,891,907 | $ 4,885,972 | $ 21,220,551 |
Reinvestment of distributions | 13,570 | 2,940 | 161,488 | 27,514 |
Shares redeemed | (674,553) | (387,518) | (8,019,525) | (4,437,952) |
Net increase (decrease) | (238,297) | 1,507,329 | $ (2,972,065) | $ 16,810,113 |
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, Strategic Advisers International Fund was the owner of record of approximately 40% of the total outstanding shares of the Fund. Mutual Funds managed by the investment adviser or its affiliates were the owners of record, in the aggregate, of approximately 42% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investments (Japan) Limited
FIL Investment Advisors (UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AJPNI-USAN-0614
1.917383.103
Fidelity Advisor®
Latin America Fund -
Class A, Class T, Class B, and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Class A, Class T, Class B, and Class C are
classes of Fidelity® Latin America Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Latin America Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.38% |
|
|
|
Actual |
| $ 1,000.00 | $ 947.50 | $ 6.66 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.95 | $ 6.90 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 946.20 | $ 7.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.61 | $ 8.25 |
Class B | 2.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 943.90 | $ 10.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.23 | $ 10.64 |
Class C | 2.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 944.00 | $ 10.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.23 | $ 10.64 |
Latin America | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 948.70 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Institutional Class | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 949.50 | $ 5.03 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.64 | $ 5.21 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Fidelity Latin America Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Brazil | 48.1% |
| |
Mexico | 20.6% |
| |
Chile | 12.0% |
| |
Colombia | 9.5% |
| |
Peru | 3.5% |
| |
United States of America* | 2.2% |
| |
Spain | 1.2% |
| |
France | 0.9% |
| |
Panama | 0.8% |
| |
Other | 1.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Brazil | 50.1% |
| |
Mexico | 19.3% |
| |
Chile | 14.0% |
| |
Colombia | 8.8% |
| |
Peru | 3.3% |
| |
United States of America* | 2.7% |
| |
Spain | 0.9% |
| |
France | 0.5% |
| |
Panama | 0.2% |
| |
Other | 0.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.7 | 99.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 1.3 | 0.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Itau Unibanco Holding SA (Brazil, Banks) | 6.6 | 5.9 |
America Movil S.A.B. de CV Series L (Mexico, Wireless Telecommunication Services) | 5.5 | 7.7 |
Ambev SA sponsored ADR (Brazil, Beverages) | 5.0 | 0.0 |
Petroleo Brasileiro SA - Petrobras (PN) (non-vtg.) (Brazil, Oil, Gas & Consumable Fuels) | 4.7 | 6.4 |
Grupo de Inversiones Suramerica SA (Colombia, Diversified Financial Services) | 3.2 | 2.7 |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR (Mexico, Beverages) | 3.1 | 3.1 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil, Food & Staples Retailing) | 2.7 | 1.2 |
Compania de Minas Buenaventura SA sponsored ADR (Peru, Metals & Mining) | 2.6 | 2.6 |
Inversiones Argos SA (Colombia, Construction Materials) | 2.5 | 2.5 |
Petroleo Brasileiro SA - Petrobras (Brazil, Oil, Gas & Consumable Fuels) | 2.5 | 3.8 |
| 38.4 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 26.9 | 22.8 |
Consumer Staples | 23.5 | 24.5 |
Telecommunication Services | 11.7 | 13.5 |
Materials | 10.0 | 10.8 |
Energy | 9.1 | 12.6 |
Industrials | 6.1 | 5.4 |
Consumer Discretionary | 4.9 | 5.1 |
Information Technology | 3.1 | 1.0 |
Utilities | 2.4 | 3.6 |
Health Care | 1.0 | 0.0 |
Semiannual Report
Fidelity Latin America Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 67.3% | |||
Shares | Value | ||
Brazil - 18.3% | |||
Banco Bradesco SA | 364,500 | $ 5,598,890 | |
BB Seguridade Participacoes SA | 1,320,400 | 15,473,507 | |
BTG Pactual Participations Ltd. unit | 1,286,800 | 17,561,307 | |
CCR SA | 2,007,400 | 15,709,891 | |
Cielo SA | 1,510,900 | 26,765,579 | |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 960,500 | 9,097,773 | |
Cyrela Brazil Realty SA | 478,500 | 2,901,366 | |
Embraer SA | 153,400 | 1,326,405 | |
Estacio Participacoes SA | 1,616,000 | 17,306,909 | |
Fleury SA | 1,261,700 | 8,465,089 | |
Hypermarcas SA | 615,300 | 4,533,862 | |
Industrias Romi SA | 2,256,600 | 5,110,811 | |
M. Dias Branco SA | 244,100 | 10,551,119 | |
Multiplus SA | 807,700 | 10,334,648 | |
Petroleo Brasileiro SA - Petrobras (ON) | 619,728 | 4,344,141 | |
Souza Cruz SA | 2,994,000 | 27,324,992 | |
TIM Participacoes SA | 1,933,395 | 10,491,795 | |
Tractebel Energia SA | 417,675 | 6,211,505 | |
Vale SA sponsored ADR | 544,093 | 7,192,909 | |
TOTAL BRAZIL | 206,302,498 | ||
Chile - 10.8% | |||
Aguas Andinas SA | 8,409,186 | 5,187,792 | |
Banco de Chile | 65,951,092 | 8,473,924 | |
Banco de Chile sponsored ADR | 114,754 | 8,878,517 | |
Banco Santander Chile sponsored ADR (d) | 422,409 | 10,251,866 | |
CAP SA | 554,946 | 8,320,428 | |
Compania Cervecerias Unidas SA | 1,912,232 | 22,570,407 | |
Empresa Nacional de Telecomunicaciones SA (ENTEL) | 1,853,521 | 22,754,499 | |
Inversiones La Construccion SA | 927,850 | 12,209,526 | |
LATAM Airlines Group SA | 270,677 | 4,130,276 | |
LATAM Airlines Group SA sponsored ADR (d) | 907,712 | 13,915,225 | |
Sociedad Matriz SAAM SA | 58,746,810 | 4,747,596 | |
TOTAL CHILE | 121,440,056 | ||
Colombia - 9.1% | |||
Bolsa de Valores de Colombia | 586,230,591 | 6,266,204 | |
Cemex Latam Holdings SA (a) | 831,972 | 7,681,427 | |
Ecopetrol SA | 7,209,273 | 13,420,306 | |
Empresa de Telecomunicaciones de Bogota | 40,032,169 | 9,157,534 | |
Grupo Aval Acciones y Valores SA | 2,710,997 | 1,840,859 | |
Grupo de Inversiones Suramerica SA | 1,833,342 | 35,766,062 | |
Inversiones Argos SA | 2,562,204 | 28,207,629 | |
TOTAL COLOMBIA | 102,340,021 | ||
France - 0.9% | |||
Carrefour SA (d) | 254,146 | 9,883,082 | |
| |||
Shares | Value | ||
Mexico - 20.6% | |||
America Movil S.A.B. de CV: | |||
Series L | 5,073,400 | $ 5,103,357 | |
Series L sponsored ADR | 2,843,973 | 57,106,978 | |
CEMEX S.A.B. de CV sponsored ADR (d) | 82,891 | 1,047,742 | |
Consorcio ARA S.A.B. de CV (a) | 23,993,705 | 10,545,474 | |
Controladora Commercial Mexicana S.A.B. de CV unit | 1,738,815 | 6,467,351 | |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 379,405 | 34,438,592 | |
Gruma S.A.B. de CV Series B (a) | 1,236,609 | 10,924,864 | |
Grupo Aeroportuario del Pacifico SA de CV sponsored ADR | 115,800 | 6,982,740 | |
Grupo Financiero Inbursa S.A.B. de CV Series O | 10,637,219 | 27,205,392 | |
Grupo Financiero Santander Mexico S.A.B. de CV | 3,772,955 | 8,971,862 | |
Grupo Televisa SA de CV (CPO) sponsored ADR | 185,400 | 6,082,974 | |
Industrias Penoles SA de CV | 302,213 | 7,034,677 | |
Infraestructura Energetica Nova S.A.B. de CV (d) | 1,223,900 | 6,372,671 | |
Medica Sur SA de CV | 724,471 | 2,464,234 | |
Megacable Holdings S.A.B. de CV unit | 2,272,829 | 9,014,702 | |
Qualitas Controladora S.A.B. de CV | 2,101,200 | 6,005,149 | |
Wal-Mart de Mexico SA de CV Series V (d) | 10,513,248 | 26,582,962 | |
TOTAL MEXICO | 232,351,721 | ||
Panama - 0.8% | |||
Banco Latinoamericano de Comercio Exterior SA Series E | 330,370 | 8,497,116 | |
Peru - 3.5% | |||
Alicorp SA Class C | 3,514,904 | 10,641,740 | |
Compania de Minas Buenaventura SA sponsored ADR | 2,247,036 | 29,211,468 | |
TOTAL PERU | 39,853,208 | ||
Puerto Rico - 0.7% | |||
EVERTEC, Inc. | 336,774 | 7,927,660 | |
Spain - 1.2% | |||
Banco Bilbao Vizcaya Argentaria SA | 647,764 | 7,978,992 | |
Prosegur Compania de Seguridad SA (Reg.) | 896,154 | 6,005,039 | |
TOTAL SPAIN | 13,984,031 | ||
Switzerland - 0.2% | |||
ABB Ltd. (Reg.) | 96,120 | 2,314,194 | |
United Kingdom - 0.3% | |||
Cable & Wireless PLC | 3,534,400 | 3,150,830 | |
Common Stocks - continued | |||
Shares | Value | ||
United States of America - 0.9% | |||
BPZ Energy, Inc. (a)(d) | 3,060,350 | $ 8,262,945 | |
First Cash Financial Services, Inc. (a) | 43,966 | 2,144,222 | |
TOTAL UNITED STATES OF AMERICA | 10,407,167 | ||
TOTAL COMMON STOCKS (Cost $643,864,591) |
| ||
Nonconvertible Preferred Stocks - 31.4% | |||
|
|
|
|
Brazil - 29.8% | |||
Ambev SA sponsored ADR | 7,703,247 | 55,848,541 | |
Banco Bradesco SA (PN) | 1,262,417 | 18,791,174 | |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar: | |||
(PN) | 329,225 | 15,577,189 | |
sponsored ADR | 308,170 | 14,656,565 | |
Embraer SA sponsored ADR | 268,634 | 9,241,010 | |
Forjas Taurus SA | 1,098,900 | 512,549 | |
Itau Unibanco Holding SA | 3,919,750 | 64,691,920 | |
Itau Unibanco Holding SA sponsored ADR | 589,925 | 9,651,173 | |
Itausa-Investimentos Itau SA (PN) | 4,599,921 | 20,217,166 | |
Petroleo Brasileiro SA - Petrobras: | |||
(PN) (non-vtg.) | 7,115,471 | 52,877,387 | |
sponsored ADR (d) | 1,700,586 | 23,604,134 | |
Telefonica Brasil SA | 1,177,413 | 24,733,726 | |
Vale SA: | |||
(PN-A) | 1,777,600 | 21,062,537 | |
(PN-A) sponsored ADR | 323,775 | 3,843,209 | |
TOTAL BRAZIL | 335,308,280 | ||
Chile - 1.2% | |||
Embotelladora Andina SA: | |||
Class A | 1,321,447 | 4,238,897 | |
Class B | 2,207,046 | 8,878,954 | |
TOTAL CHILE | 13,117,851 | ||
| |||
Shares | Value | ||
Colombia - 0.4% | |||
Grupo Aval Acciones y Valores SA | 2,897,449 | $ 1,959,985 | |
Grupo de Inversiones Suramerica SA | 161,141 | 3,178,594 | |
TOTAL COLOMBIA | 5,138,579 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $210,828,951) |
| ||
Money Market Funds - 3.7% | |||
|
| �� |
|
Fidelity Cash Central Fund, 0.11% (b) | 6,453,651 | 6,453,651 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 34,759,555 | 34,759,555 | |
TOTAL MONEY MARKET FUNDS (Cost $41,213,206) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $895,906,748) | 1,153,229,500 | ||
NET OTHER ASSETS (LIABILITIES) - (2.4)% | (26,568,110) | ||
NET ASSETS - 100% | $ 1,126,661,390 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 2,966 |
Fidelity Securities Lending Cash Central Fund | 119,649 |
Total | $ 122,615 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 56,186,073 | $ 56,186,073 | $ - | $ - |
Consumer Staples | 263,119,117 | 263,119,117 | - | - |
Energy | 102,508,913 | 102,508,913 | - | - |
Financials | 301,613,407 | 293,634,415 | 7,978,992 | - |
Health Care | 10,929,323 | 10,929,323 | - | - |
Industrials | 69,995,736 | 67,681,542 | 2,314,194 | - |
Information Technology | 34,693,239 | 34,693,239 | - | - |
Materials | 113,602,026 | 113,602,026 | - | - |
Telecommunication Services | 132,498,719 | 132,498,719 | - | - |
Utilities | 26,869,741 | 26,869,741 | - | - |
Money Market Funds | 41,213,206 | 41,213,206 | - | - |
Total Investments in Securities: | $ 1,153,229,500 | $ 1,142,936,314 | $ 10,293,186 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Latin America Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $33,288,931) - See accompanying schedule: Unaffiliated issuers (cost $854,693,542) | $ 1,112,016,294 |
|
Fidelity Central Funds (cost $41,213,206) | 41,213,206 |
|
Total Investments (cost $895,906,748) |
| $ 1,153,229,500 |
Cash |
| 967,488 |
Foreign currency held at value (cost $755,488) | 755,440 | |
Receivable for investments sold | 8,236,342 | |
Receivable for fund shares sold | 674,290 | |
Dividends receivable | 3,752,972 | |
Distributions receivable from Fidelity Central Funds | 32,714 | |
Other receivables | 8,199 | |
Total assets | 1,167,656,945 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,602,035 | |
Payable for fund shares redeemed | 1,304,652 | |
Accrued management fee | 657,943 | |
Distribution and service plan fees payable | 25,937 | |
Other affiliated payables | 275,656 | |
Other payables and accrued expenses | 369,777 | |
Collateral on securities loaned, at value | 34,759,555 | |
Total liabilities | 40,995,555 | |
|
|
|
Net Assets | $ 1,126,661,390 | |
Net Assets consist of: |
| |
Paid in capital | $ 800,425,138 | |
Undistributed net investment income | 10,478,331 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 58,556,276 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 257,201,645 | |
Net Assets | $ 1,126,661,390 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 31.58 | |
|
|
|
Maximum offering price per share (100/94.25 of $31.58) | $ 33.51 | |
Class T: | $ 31.64 | |
|
|
|
Maximum offering price per share (100/96.50 of $31.64) | $ 32.79 | |
Class B: | $ 31.85 | |
|
|
|
Class C: | $ 31.76 | |
|
|
|
Latin America: | $ 31.56 | |
|
|
|
Institutional Class: | $ 31.56 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 24,775,226 |
Income from Fidelity Central Funds |
| 122,615 |
Income before foreign taxes withheld |
| 24,897,841 |
Less foreign taxes withheld |
| (3,249,838) |
Total income |
| 21,648,003 |
|
|
|
Expenses | ||
Management fee | $ 4,050,940 | |
Transfer agent fees | 1,467,258 | |
Distribution and service plan fees | 159,294 | |
Accounting and security lending fees | 272,103 | |
Custodian fees and expenses | 374,664 | |
Independent trustees' compensation | 2,373 | |
Registration fees | 53,185 | |
Audit | 39,614 | |
Legal | 3,401 | |
Interest | 1,108 | |
Miscellaneous | 4,419 | |
Total expenses before reductions | 6,428,359 | |
Expense reductions | (21,544) | 6,406,815 |
Net investment income (loss) | 15,241,188 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 60,405,238 | |
Foreign currency transactions | (900,481) | |
Total net realized gain (loss) |
| 59,504,757 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $45,220) | (156,985,650) | |
Assets and liabilities in foreign currencies | 240,947 | |
Total change in net unrealized appreciation (depreciation) |
| (156,744,703) |
Net gain (loss) | (97,239,946) | |
Net increase (decrease) in net assets resulting from operations | $ (81,998,758) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 15,241,188 | $ 36,522,207 |
Net realized gain (loss) | 59,504,757 | 270,423,636 |
Change in net unrealized appreciation (depreciation) | (156,744,703) | (468,204,656) |
Net increase (decrease) in net assets resulting from operations | (81,998,758) | (161,258,813) |
Distributions to shareholders from net investment income | (23,599,176) | (45,716,095) |
Distributions to shareholders from net realized gain | (209,492,273) | (164,648,488) |
Total distributions | (233,091,449) | (210,364,583) |
Share transactions - net increase (decrease) | 30,666,042 | (626,013,705) |
Redemption fees | 88,767 | 218,753 |
Total increase (decrease) in net assets | (284,335,398) | (997,418,348) |
|
|
|
Net Assets | ||
Beginning of period | 1,410,996,788 | 2,408,415,136 |
End of period (including undistributed net investment income of $10,478,331 and undistributed net investment income of $18,836,319, respectively) | $ 1,126,661,390 | $ 1,410,996,788 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.71 | $ 48.95 | $ 52.38 | $ 57.48 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .37 | .72 | .92 | 1.15 | .02 |
Net realized and unrealized gain (loss) | (2.68) | (4.73) | (3.66) | (5.87) | 2.79 |
Total from investment operations | (2.31) | (4.01) | (2.74) | (4.72) | 2.81 |
Distributions from net investment income | (.57) | (.79) | (.70) | (.19) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.82) | (4.24) | (.70) | (.39) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.58 | $ 40.71 | $ 48.95 | $ 52.38 | $ 57.48 |
Total Return B, C, D | (5.25)% | (8.93)% | (5.23)% | (8.26)% | 5.14% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.38% A | 1.37% | 1.35% | 1.34% | 1.37% A |
Expenses net of fee waivers, if any | 1.38% A | 1.37% | 1.35% | 1.34% | 1.37% A |
Expenses net of all reductions | 1.38% A | 1.35% | 1.35% | 1.34% | 1.34% A |
Net investment income (loss) | 2.37% A | 1.66% | 1.80% | 2.05% | .39% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 39,580 | $ 48,464 | $ 69,654 | $ 91,407 | $ 115,626 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.68 | $ 48.88 | $ 52.27 | $ 57.47 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .33 | .61 | .78 | .99 | .01 |
Net realized and unrealized gain (loss) | (2.69) | (4.74) | (3.65) | (5.85) | 2.79 |
Total from investment operations | (2.36) | (4.13) | (2.87) | (4.86) | 2.80 |
Distributions from net investment income | (.43) | (.63) | (.53) | (.15) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.68) | (4.08) | (.53) | (.35) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.64 | $ 40.68 | $ 48.88 | $ 52.27 | $ 57.47 |
Total Return B, C, D | (5.38)% | (9.17)% | (5.49)% | (8.50)% | 5.12% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.65% A | 1.63% | 1.61% | 1.61% | 1.63% A |
Expenses net of fee waivers, if any | 1.65% A | 1.63% | 1.61% | 1.61% | 1.63% A |
Expenses net of all reductions | 1.64% A | 1.61% | 1.61% | 1.61% | 1.60% A |
Net investment income (loss) | 2.11% A | 1.40% | 1.54% | 1.78% | .13% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,482 | $ 12,705 | $ 19,334 | $ 26,020 | $ 36,820 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.63 | $ 48.72 | $ 52.06 | $ 57.44 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .26 | .40 | .53 | .72 | (.02) |
Net realized and unrealized gain (loss) | (2.69) | (4.74) | (3.63) | (5.84) | 2.79 |
Total from investment operations | (2.43) | (4.34) | (3.10) | (5.12) | 2.77 |
Distributions from net investment income | (.10) | (.31) | (.25) | (.07) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.35) | (3.76) | (.25) | (.27) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.85 | $ 40.63 | $ 48.72 | $ 52.06 | $ 57.44 |
Total Return B, C, D | (5.61)% | (9.60)% | (5.95)% | (8.94)% | 5.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.12% | 2.10% | 2.10% | 2.12% A |
Expenses net of fee waivers, if any | 2.13% A | 2.12% | 2.10% | 2.10% | 2.12% A |
Expenses net of all reductions | 2.13% A | 2.10% | 2.10% | 2.10% | 2.10% A |
Net investment income (loss) | 1.62% A | .91% | 1.05% | 1.29% | (.36)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,969 | $ 4,764 | $ 9,492 | $ 14,114 | $ 20,392 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.59 | $ 48.73 | $ 52.05 | $ 57.44 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .26 | .40 | .54 | .73 | (.02) |
Net realized and unrealized gain (loss) | (2.68) | (4.74) | (3.64) | (5.84) | 2.79 |
Total from investment operations | (2.42) | (4.34) | (3.10) | (5.11) | 2.77 |
Distributions from net investment income | (.16) | (.36) | (.23) | (.09) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.41) | (3.81) | (.23) | (.29) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.76 | $ 40.59 | $ 48.73 | $ 52.05 | $ 57.44 |
Total Return B, C, D | (5.60)% | (9.62)% | (5.94)% | (8.93)% | 5.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.12% | 2.10% | 2.08% | 2.09% A |
Expenses net of fee waivers, if any | 2.13% A | 2.12% | 2.10% | 2.08% | 2.09% A |
Expenses net of all reductions | 2.13% A | 2.10% | 2.10% | 2.08% | 2.07% A |
Net investment income (loss) | 1.62% A | .91% | 1.06% | 1.31% | (.34)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,781 | $ 15,185 | $ 27,405 | $ 35,203 | $ 48,329 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Latin America
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 40.80 | $ 49.09 | $ 52.48 | $ 57.50 | $ 47.29 | $ 28.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .42 | .87 | 1.09 | 1.34 | 1.07 | .72 |
Net realized and unrealized gain (loss) | (2.70) | (4.74) | (3.67) | (5.88) | 11.00 | 18.32 |
Total from investment operations | (2.28) | (3.87) | (2.58) | (4.54) | 12.07 | 19.04 |
Distributions from net investment income | (.71) | (.98) | (.82) | (.29) | (1.49) | (.46) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | (.39) | - |
Total distributions | (6.96) | (4.43) | (.82) | (.49) | (1.88) | (.46) |
Redemption fees added to paid in capital D | - I | .01 | .01 | .01 | .02 | .02 |
Net asset value, end of period | $ 31.56 | $ 40.80 | $ 49.09 | $ 52.48 | $ 57.50 | $ 47.29 |
Total Return B, C | (5.13)% | (8.63)% | (4.91)% | (7.96)% | 25.91% | 67.88% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.08% A | 1.04% | 1.02% | 1.00% | 1.03% | 1.07% |
Expenses net of fee waivers, if any | 1.08% A | 1.04% | 1.02% | 1.00% | 1.03% | 1.07% |
Expenses net of all reductions | 1.08% A | 1.03% | 1.02% | 1.00% | 1.01% | 1.05% |
Net investment income (loss) | 2.67% A | 1.99% | 2.14% | 2.39% | 2.10% | 2.04% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,057,005 | $ 1,324,748 | $ 2,274,601 | $ 2,884,301 | $ 4,283,462 | $ 4,043,748 |
Portfolio turnover rate F | 26% A | 23% | 23% | 11% | 56% H | 52% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.79 | $ 49.07 | $ 52.51 | $ 57.49 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .43 | .87 | 1.08 | 1.32 | .03 |
Net realized and unrealized gain (loss) | (2.68) | (4.74) | (3.67) | (5.88) | 2.79 |
Total from investment operations | (2.25) | (3.87) | (2.59) | (4.56) | 2.82 |
Distributions from net investment income | (.73) | (.97) | (.86) | (.23) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.98) | (4.42) | (.86) | (.43) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.56 | $ 40.79 | $ 49.07 | $ 52.51 | $ 57.49 |
Total Return B, C, D | (5.05)% | (8.63)% | (4.93)% | (7.98)% | 5.15% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.04% A | 1.03% | 1.04% | 1.04% | 1.08% A |
Expenses net of fee waivers, if any | 1.04% A | 1.03% | 1.04% | 1.04% | 1.08% A |
Expenses net of all reductions | 1.04% A | 1.01% | 1.04% | 1.04% | 1.06% A |
Net investment income (loss) | 2.71% A | 2.00% | 2.12% | 2.35% | .68% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,845 | $ 5,131 | $ 7,928 | $ 9,603 | $ 12,868 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Latin America Fund (the Fund) is a non-diversified fund of Fidelity Investment Trust (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 T, Class C, Latin America and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014 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 and may include proceeds received from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets and Liabilities.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 352,843,675 |
Gross unrealized depreciation | (95,735,869) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 257,107,806 |
|
|
Tax cost | $ 896,121,694 |
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $153,218,021 and $344,847,341, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 50,201 | $ 15,850 |
Class T | .25% | .25% | 27,008 | 9,118 |
Class B | .75% | .25% | 17,560 | 15,046 |
Class C | .75% | .25% | 64,525 | 19,345 |
|
|
| $ 159,294 | $ 59,359 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 8,568 |
Class T | 1,580 |
Class B* | 4,192 |
Class C* | 961 |
| $ 15,301 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 A | $ 59,941 | .30 |
Class T | 17,016 | .32 |
Class B | 5,244 | .30 |
Class C | 19,210 | .30 |
Latin America | 1,361,727 | .25 |
Institutional Class | 4,120 | .21 |
| $ 1,467,258 |
|
* 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 $6,208 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 5,153,200 | .30% | $ 429 |
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 $1,123 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $119,649. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $6,039,286. The weighted average interest rate was .58%. The interest expense amounted to $679 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $16,373 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $5,171.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 667,095 | $ 1,098,761 |
Class T | 136,327 | 245,683 |
Class B | 12,098 | 57,649 |
Class C | 60,991 | 192,218 |
Latin America | 22,631,305 | 43,971,155 |
Institutional Class | 91,360 | 150,629 |
Total | $ 23,599,176 | $ 45,716,095 |
From net realized gain |
|
|
Class A | $ 7,249,224 | $ 4,828,947 |
Class T | 1,918,455 | 1,341,152 |
Class B | 684,975 | 641,573 |
Class C | 2,282,110 | 1,868,040 |
Latin America | 196,577,505 | 155,430,816 |
Institutional Class | 780,004 | 537,960 |
Total | $ 209,492,273 | $ 164,648,488 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended April 30, | Year ended | |
Class A |
|
|
|
|
Shares sold | 150,966 | 232,318 | $ 4,630,848 | $ 10,075,611 |
Reinvestment of distributions | 229,379 | 119,230 | 7,071,806 | 5,315,278 |
Shares redeemed | (317,483) | (584,100) | (9,905,785) | (25,288,174) |
Net increase (decrease) | 62,862 | (232,552) | $ 1,796,869 | $ (9,897,285) |
Class T |
|
|
|
|
Shares sold | 20,679 | 46,221 | $ 649,525 | $ 2,015,673 |
Reinvestment of distributions | 65,609 | 34,933 | 2,028,651 | 1,559,775 |
Shares redeemed | (67,332) | (164,385) | (2,064,637) | (7,142,972) |
Net increase (decrease) | 18,956 | (83,231) | $ 613,539 | $ (3,567,524) |
Class B |
|
|
|
|
Shares sold | 860 | 1,849 | $ 26,800 | $ 84,642 |
Reinvestment of distributions | 18,939 | 13,236 | 590,702 | 592,836 |
Shares redeemed | (43,864) | (92,657) | (1,377,702) | (4,084,874) |
Net increase (decrease) | (24,065) | (77,572) | $ (760,200) | $ (3,407,396) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended April 30, | Year ended | |
Class C |
|
|
|
|
Shares sold | 65,258 | 46,994 | $ 2,036,104 | $ 2,021,869 |
Reinvestment of distributions | 69,412 | 42,623 | 2,158,721 | 1,907,392 |
Shares redeemed | (106,356) | (277,980) | (3,352,868) | (12,111,471) |
Net increase (decrease) | 28,314 | (188,363) | $ 841,957 | $ (8,182,210) |
Latin America |
|
|
|
|
Shares sold | 2,278,196 | 3,510,227 | $ 71,284,559 | $ 154,033,223 |
Reinvestment of distributions | 6,820,938 | 4,304,957 | 209,950,213 | 191,785,822 |
Shares redeemed | (8,083,044) | (21,678,292) | (252,974,033) | (945,202,869) |
Net increase (decrease) | 1,016,090 | (13,863,108) | $ 28,260,739 | $ (599,383,824) |
Institutional Class |
|
|
|
|
Shares sold | 70,610 | 62,065 | $ 2,214,205 | $ 2,723,553 |
Reinvestment of distributions | 21,472 | 11,511 | 660,491 | 512,716 |
Shares redeemed | (96,043) | (109,367) | (2,961,558) | (4,811,735) |
Net increase (decrease) | (3,961) | (35,791) | $ (86,862) | $ (1,575,466) |
12. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
FALAA-USAN-0614
1.917420.103
Fidelity Advisor®
Latin America Fund -
Institutional Class
(Fidelity Cover Art)
Semiannual Report
April 30, 2014
Institutional Class is a class of
Fidelity® Latin America Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Latin America Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.38% |
|
|
|
Actual |
| $ 1,000.00 | $ 947.50 | $ 6.66 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.95 | $ 6.90 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 946.20 | $ 7.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.61 | $ 8.25 |
Class B | 2.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 943.90 | $ 10.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.23 | $ 10.64 |
Class C | 2.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 944.00 | $ 10.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.23 | $ 10.64 |
Latin America | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 948.70 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Institutional Class | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 949.50 | $ 5.03 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.64 | $ 5.21 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Fidelity Latin America Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Brazil | 48.1% |
| |
Mexico | 20.6% |
| |
Chile | 12.0% |
| |
Colombia | 9.5% |
| |
Peru | 3.5% |
| |
United States of America* | 2.2% |
| |
Spain | 1.2% |
| |
France | 0.9% |
| |
Panama | 0.8% |
| |
Other | 1.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Brazil | 50.1% |
| |
Mexico | 19.3% |
| |
Chile | 14.0% |
| |
Colombia | 8.8% |
| |
Peru | 3.3% |
| |
United States of America* | 2.7% |
| |
Spain | 0.9% |
| |
France | 0.5% |
| |
Panama | 0.2% |
| |
Other | 0.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.7 | 99.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 1.3 | 0.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Itau Unibanco Holding SA (Brazil, Banks) | 6.6 | 5.9 |
America Movil S.A.B. de CV Series L (Mexico, Wireless Telecommunication Services) | 5.5 | 7.7 |
Ambev SA sponsored ADR (Brazil, Beverages) | 5.0 | 0.0 |
Petroleo Brasileiro SA - Petrobras (PN) (non-vtg.) (Brazil, Oil, Gas & Consumable Fuels) | 4.7 | 6.4 |
Grupo de Inversiones Suramerica SA (Colombia, Diversified Financial Services) | 3.2 | 2.7 |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR (Mexico, Beverages) | 3.1 | 3.1 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil, Food & Staples Retailing) | 2.7 | 1.2 |
Compania de Minas Buenaventura SA sponsored ADR (Peru, Metals & Mining) | 2.6 | 2.6 |
Inversiones Argos SA (Colombia, Construction Materials) | 2.5 | 2.5 |
Petroleo Brasileiro SA - Petrobras (Brazil, Oil, Gas & Consumable Fuels) | 2.5 | 3.8 |
| 38.4 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 26.9 | 22.8 |
Consumer Staples | 23.5 | 24.5 |
Telecommunication Services | 11.7 | 13.5 |
Materials | 10.0 | 10.8 |
Energy | 9.1 | 12.6 |
Industrials | 6.1 | 5.4 |
Consumer Discretionary | 4.9 | 5.1 |
Information Technology | 3.1 | 1.0 |
Utilities | 2.4 | 3.6 |
Health Care | 1.0 | 0.0 |
Semiannual Report
Fidelity Latin America Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 67.3% | |||
Shares | Value | ||
Brazil - 18.3% | |||
Banco Bradesco SA | 364,500 | $ 5,598,890 | |
BB Seguridade Participacoes SA | 1,320,400 | 15,473,507 | |
BTG Pactual Participations Ltd. unit | 1,286,800 | 17,561,307 | |
CCR SA | 2,007,400 | 15,709,891 | |
Cielo SA | 1,510,900 | 26,765,579 | |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 960,500 | 9,097,773 | |
Cyrela Brazil Realty SA | 478,500 | 2,901,366 | |
Embraer SA | 153,400 | 1,326,405 | |
Estacio Participacoes SA | 1,616,000 | 17,306,909 | |
Fleury SA | 1,261,700 | 8,465,089 | |
Hypermarcas SA | 615,300 | 4,533,862 | |
Industrias Romi SA | 2,256,600 | 5,110,811 | |
M. Dias Branco SA | 244,100 | 10,551,119 | |
Multiplus SA | 807,700 | 10,334,648 | |
Petroleo Brasileiro SA - Petrobras (ON) | 619,728 | 4,344,141 | |
Souza Cruz SA | 2,994,000 | 27,324,992 | |
TIM Participacoes SA | 1,933,395 | 10,491,795 | |
Tractebel Energia SA | 417,675 | 6,211,505 | |
Vale SA sponsored ADR | 544,093 | 7,192,909 | |
TOTAL BRAZIL | 206,302,498 | ||
Chile - 10.8% | |||
Aguas Andinas SA | 8,409,186 | 5,187,792 | |
Banco de Chile | 65,951,092 | 8,473,924 | |
Banco de Chile sponsored ADR | 114,754 | 8,878,517 | |
Banco Santander Chile sponsored ADR (d) | 422,409 | 10,251,866 | |
CAP SA | 554,946 | 8,320,428 | |
Compania Cervecerias Unidas SA | 1,912,232 | 22,570,407 | |
Empresa Nacional de Telecomunicaciones SA (ENTEL) | 1,853,521 | 22,754,499 | |
Inversiones La Construccion SA | 927,850 | 12,209,526 | |
LATAM Airlines Group SA | 270,677 | 4,130,276 | |
LATAM Airlines Group SA sponsored ADR (d) | 907,712 | 13,915,225 | |
Sociedad Matriz SAAM SA | 58,746,810 | 4,747,596 | |
TOTAL CHILE | 121,440,056 | ||
Colombia - 9.1% | |||
Bolsa de Valores de Colombia | 586,230,591 | 6,266,204 | |
Cemex Latam Holdings SA (a) | 831,972 | 7,681,427 | |
Ecopetrol SA | 7,209,273 | 13,420,306 | |
Empresa de Telecomunicaciones de Bogota | 40,032,169 | 9,157,534 | |
Grupo Aval Acciones y Valores SA | 2,710,997 | 1,840,859 | |
Grupo de Inversiones Suramerica SA | 1,833,342 | 35,766,062 | |
Inversiones Argos SA | 2,562,204 | 28,207,629 | |
TOTAL COLOMBIA | 102,340,021 | ||
France - 0.9% | |||
Carrefour SA (d) | 254,146 | 9,883,082 | |
| |||
Shares | Value | ||
Mexico - 20.6% | |||
America Movil S.A.B. de CV: | |||
Series L | 5,073,400 | $ 5,103,357 | |
Series L sponsored ADR | 2,843,973 | 57,106,978 | |
CEMEX S.A.B. de CV sponsored ADR (d) | 82,891 | 1,047,742 | |
Consorcio ARA S.A.B. de CV (a) | 23,993,705 | 10,545,474 | |
Controladora Commercial Mexicana S.A.B. de CV unit | 1,738,815 | 6,467,351 | |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 379,405 | 34,438,592 | |
Gruma S.A.B. de CV Series B (a) | 1,236,609 | 10,924,864 | |
Grupo Aeroportuario del Pacifico SA de CV sponsored ADR | 115,800 | 6,982,740 | |
Grupo Financiero Inbursa S.A.B. de CV Series O | 10,637,219 | 27,205,392 | |
Grupo Financiero Santander Mexico S.A.B. de CV | 3,772,955 | 8,971,862 | |
Grupo Televisa SA de CV (CPO) sponsored ADR | 185,400 | 6,082,974 | |
Industrias Penoles SA de CV | 302,213 | 7,034,677 | |
Infraestructura Energetica Nova S.A.B. de CV (d) | 1,223,900 | 6,372,671 | |
Medica Sur SA de CV | 724,471 | 2,464,234 | |
Megacable Holdings S.A.B. de CV unit | 2,272,829 | 9,014,702 | |
Qualitas Controladora S.A.B. de CV | 2,101,200 | 6,005,149 | |
Wal-Mart de Mexico SA de CV Series V (d) | 10,513,248 | 26,582,962 | |
TOTAL MEXICO | 232,351,721 | ||
Panama - 0.8% | |||
Banco Latinoamericano de Comercio Exterior SA Series E | 330,370 | 8,497,116 | |
Peru - 3.5% | |||
Alicorp SA Class C | 3,514,904 | 10,641,740 | |
Compania de Minas Buenaventura SA sponsored ADR | 2,247,036 | 29,211,468 | |
TOTAL PERU | 39,853,208 | ||
Puerto Rico - 0.7% | |||
EVERTEC, Inc. | 336,774 | 7,927,660 | |
Spain - 1.2% | |||
Banco Bilbao Vizcaya Argentaria SA | 647,764 | 7,978,992 | |
Prosegur Compania de Seguridad SA (Reg.) | 896,154 | 6,005,039 | |
TOTAL SPAIN | 13,984,031 | ||
Switzerland - 0.2% | |||
ABB Ltd. (Reg.) | 96,120 | 2,314,194 | |
United Kingdom - 0.3% | |||
Cable & Wireless PLC | 3,534,400 | 3,150,830 | |
Common Stocks - continued | |||
Shares | Value | ||
United States of America - 0.9% | |||
BPZ Energy, Inc. (a)(d) | 3,060,350 | $ 8,262,945 | |
First Cash Financial Services, Inc. (a) | 43,966 | 2,144,222 | |
TOTAL UNITED STATES OF AMERICA | 10,407,167 | ||
TOTAL COMMON STOCKS (Cost $643,864,591) |
| ||
Nonconvertible Preferred Stocks - 31.4% | |||
|
|
|
|
Brazil - 29.8% | |||
Ambev SA sponsored ADR | 7,703,247 | 55,848,541 | |
Banco Bradesco SA (PN) | 1,262,417 | 18,791,174 | |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar: | |||
(PN) | 329,225 | 15,577,189 | |
sponsored ADR | 308,170 | 14,656,565 | |
Embraer SA sponsored ADR | 268,634 | 9,241,010 | |
Forjas Taurus SA | 1,098,900 | 512,549 | |
Itau Unibanco Holding SA | 3,919,750 | 64,691,920 | |
Itau Unibanco Holding SA sponsored ADR | 589,925 | 9,651,173 | |
Itausa-Investimentos Itau SA (PN) | 4,599,921 | 20,217,166 | |
Petroleo Brasileiro SA - Petrobras: | |||
(PN) (non-vtg.) | 7,115,471 | 52,877,387 | |
sponsored ADR (d) | 1,700,586 | 23,604,134 | |
Telefonica Brasil SA | 1,177,413 | 24,733,726 | |
Vale SA: | |||
(PN-A) | 1,777,600 | 21,062,537 | |
(PN-A) sponsored ADR | 323,775 | 3,843,209 | |
TOTAL BRAZIL | 335,308,280 | ||
Chile - 1.2% | |||
Embotelladora Andina SA: | |||
Class A | 1,321,447 | 4,238,897 | |
Class B | 2,207,046 | 8,878,954 | |
TOTAL CHILE | 13,117,851 | ||
| |||
Shares | Value | ||
Colombia - 0.4% | |||
Grupo Aval Acciones y Valores SA | 2,897,449 | $ 1,959,985 | |
Grupo de Inversiones Suramerica SA | 161,141 | 3,178,594 | |
TOTAL COLOMBIA | 5,138,579 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $210,828,951) |
| ||
Money Market Funds - 3.7% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 6,453,651 | 6,453,651 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 34,759,555 | 34,759,555 | |
TOTAL MONEY MARKET FUNDS (Cost $41,213,206) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $895,906,748) | 1,153,229,500 | ||
NET OTHER ASSETS (LIABILITIES) - (2.4)% | (26,568,110) | ||
NET ASSETS - 100% | $ 1,126,661,390 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 2,966 |
Fidelity Securities Lending Cash Central Fund | 119,649 |
Total | $ 122,615 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 56,186,073 | $ 56,186,073 | $ - | $ - |
Consumer Staples | 263,119,117 | 263,119,117 | - | - |
Energy | 102,508,913 | 102,508,913 | - | - |
Financials | 301,613,407 | 293,634,415 | 7,978,992 | - |
Health Care | 10,929,323 | 10,929,323 | - | - |
Industrials | 69,995,736 | 67,681,542 | 2,314,194 | - |
Information Technology | 34,693,239 | 34,693,239 | - | - |
Materials | 113,602,026 | 113,602,026 | - | - |
Telecommunication Services | 132,498,719 | 132,498,719 | - | - |
Utilities | 26,869,741 | 26,869,741 | - | - |
Money Market Funds | 41,213,206 | 41,213,206 | - | - |
Total Investments in Securities: | $ 1,153,229,500 | $ 1,142,936,314 | $ 10,293,186 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Latin America Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $33,288,931) - See accompanying schedule: Unaffiliated issuers (cost $854,693,542) | $ 1,112,016,294 |
|
Fidelity Central Funds (cost $41,213,206) | 41,213,206 |
|
Total Investments (cost $895,906,748) |
| $ 1,153,229,500 |
Cash |
| 967,488 |
Foreign currency held at value (cost $755,488) | 755,440 | |
Receivable for investments sold | 8,236,342 | |
Receivable for fund shares sold | 674,290 | |
Dividends receivable | 3,752,972 | |
Distributions receivable from Fidelity Central Funds | 32,714 | |
Other receivables | 8,199 | |
Total assets | 1,167,656,945 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,602,035 | |
Payable for fund shares redeemed | 1,304,652 | |
Accrued management fee | 657,943 | |
Distribution and service plan fees payable | 25,937 | |
Other affiliated payables | 275,656 | |
Other payables and accrued expenses | 369,777 | |
Collateral on securities loaned, at value | 34,759,555 | |
Total liabilities | 40,995,555 | |
|
|
|
Net Assets | $ 1,126,661,390 | |
Net Assets consist of: |
| |
Paid in capital | $ 800,425,138 | |
Undistributed net investment income | 10,478,331 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 58,556,276 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 257,201,645 | |
Net Assets | $ 1,126,661,390 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 31.58 | |
|
|
|
Maximum offering price per share (100/94.25 of $31.58) | $ 33.51 | |
Class T: | $ 31.64 | |
|
|
|
Maximum offering price per share (100/96.50 of $31.64) | $ 32.79 | |
Class B: | $ 31.85 | |
|
|
|
Class C: | $ 31.76 | |
|
|
|
Latin America: | $ 31.56 | |
|
|
|
Institutional Class: | $ 31.56 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 24,775,226 |
Income from Fidelity Central Funds |
| 122,615 |
Income before foreign taxes withheld |
| 24,897,841 |
Less foreign taxes withheld |
| (3,249,838) |
Total income |
| 21,648,003 |
|
|
|
Expenses | ||
Management fee | $ 4,050,940 | |
Transfer agent fees | 1,467,258 | |
Distribution and service plan fees | 159,294 | |
Accounting and security lending fees | 272,103 | |
Custodian fees and expenses | 374,664 | |
Independent trustees' compensation | 2,373 | |
Registration fees | 53,185 | |
Audit | 39,614 | |
Legal | 3,401 | |
Interest | 1,108 | |
Miscellaneous | 4,419 | |
Total expenses before reductions | 6,428,359 | |
Expense reductions | (21,544) | 6,406,815 |
Net investment income (loss) | 15,241,188 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 60,405,238 | |
Foreign currency transactions | (900,481) | |
Total net realized gain (loss) |
| 59,504,757 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $45,220) | (156,985,650) | |
Assets and liabilities in foreign currencies | 240,947 | |
Total change in net unrealized appreciation (depreciation) |
| (156,744,703) |
Net gain (loss) | (97,239,946) | |
Net increase (decrease) in net assets resulting from operations | $ (81,998,758) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 15,241,188 | $ 36,522,207 |
Net realized gain (loss) | 59,504,757 | 270,423,636 |
Change in net unrealized appreciation (depreciation) | (156,744,703) | (468,204,656) |
Net increase (decrease) in net assets resulting from operations | (81,998,758) | (161,258,813) |
Distributions to shareholders from net investment income | (23,599,176) | (45,716,095) |
Distributions to shareholders from net realized gain | (209,492,273) | (164,648,488) |
Total distributions | (233,091,449) | (210,364,583) |
Share transactions - net increase (decrease) | 30,666,042 | (626,013,705) |
Redemption fees | 88,767 | 218,753 |
Total increase (decrease) in net assets | (284,335,398) | (997,418,348) |
|
|
|
Net Assets | ||
Beginning of period | 1,410,996,788 | 2,408,415,136 |
End of period (including undistributed net investment income of $10,478,331 and undistributed net investment income of $18,836,319, respectively) | $ 1,126,661,390 | $ 1,410,996,788 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.71 | $ 48.95 | $ 52.38 | $ 57.48 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .37 | .72 | .92 | 1.15 | .02 |
Net realized and unrealized gain (loss) | (2.68) | (4.73) | (3.66) | (5.87) | 2.79 |
Total from investment operations | (2.31) | (4.01) | (2.74) | (4.72) | 2.81 |
Distributions from net investment income | (.57) | (.79) | (.70) | (.19) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.82) | (4.24) | (.70) | (.39) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.58 | $ 40.71 | $ 48.95 | $ 52.38 | $ 57.48 |
Total Return B, C, D | (5.25)% | (8.93)% | (5.23)% | (8.26)% | 5.14% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.38% A | 1.37% | 1.35% | 1.34% | 1.37% A |
Expenses net of fee waivers, if any | 1.38% A | 1.37% | 1.35% | 1.34% | 1.37% A |
Expenses net of all reductions | 1.38% A | 1.35% | 1.35% | 1.34% | 1.34% A |
Net investment income (loss) | 2.37% A | 1.66% | 1.80% | 2.05% | .39% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 39,580 | $ 48,464 | $ 69,654 | $ 91,407 | $ 115,626 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.68 | $ 48.88 | $ 52.27 | $ 57.47 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .33 | .61 | .78 | .99 | .01 |
Net realized and unrealized gain (loss) | (2.69) | (4.74) | (3.65) | (5.85) | 2.79 |
Total from investment operations | (2.36) | (4.13) | (2.87) | (4.86) | 2.80 |
Distributions from net investment income | (.43) | (.63) | (.53) | (.15) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.68) | (4.08) | (.53) | (.35) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.64 | $ 40.68 | $ 48.88 | $ 52.27 | $ 57.47 |
Total Return B, C, D | (5.38)% | (9.17)% | (5.49)% | (8.50)% | 5.12% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.65% A | 1.63% | 1.61% | 1.61% | 1.63% A |
Expenses net of fee waivers, if any | 1.65% A | 1.63% | 1.61% | 1.61% | 1.63% A |
Expenses net of all reductions | 1.64% A | 1.61% | 1.61% | 1.61% | 1.60% A |
Net investment income (loss) | 2.11% A | 1.40% | 1.54% | 1.78% | .13% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,482 | $ 12,705 | $ 19,334 | $ 26,020 | $ 36,820 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.63 | $ 48.72 | $ 52.06 | $ 57.44 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .26 | .40 | .53 | .72 | (.02) |
Net realized and unrealized gain (loss) | (2.69) | (4.74) | (3.63) | (5.84) | 2.79 |
Total from investment operations | (2.43) | (4.34) | (3.10) | (5.12) | 2.77 |
Distributions from net investment income | (.10) | (.31) | (.25) | (.07) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.35) | (3.76) | (.25) | (.27) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.85 | $ 40.63 | $ 48.72 | $ 52.06 | $ 57.44 |
Total Return B, C, D | (5.61)% | (9.60)% | (5.95)% | (8.94)% | 5.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.12% | 2.10% | 2.10% | 2.12% A |
Expenses net of fee waivers, if any | 2.13% A | 2.12% | 2.10% | 2.10% | 2.12% A |
Expenses net of all reductions | 2.13% A | 2.10% | 2.10% | 2.10% | 2.10% A |
Net investment income (loss) | 1.62% A | .91% | 1.05% | 1.29% | (.36)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,969 | $ 4,764 | $ 9,492 | $ 14,114 | $ 20,392 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.59 | $ 48.73 | $ 52.05 | $ 57.44 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .26 | .40 | .54 | .73 | (.02) |
Net realized and unrealized gain (loss) | (2.68) | (4.74) | (3.64) | (5.84) | 2.79 |
Total from investment operations | (2.42) | (4.34) | (3.10) | (5.11) | 2.77 |
Distributions from net investment income | (.16) | (.36) | (.23) | (.09) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.41) | (3.81) | (.23) | (.29) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.76 | $ 40.59 | $ 48.73 | $ 52.05 | $ 57.44 |
Total Return B, C, D | (5.60)% | (9.62)% | (5.94)% | (8.93)% | 5.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.12% | 2.10% | 2.08% | 2.09% A |
Expenses net of fee waivers, if any | 2.13% A | 2.12% | 2.10% | 2.08% | 2.09% A |
Expenses net of all reductions | 2.13% A | 2.10% | 2.10% | 2.08% | 2.07% A |
Net investment income (loss) | 1.62% A | .91% | 1.06% | 1.31% | (.34)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,781 | $ 15,185 | $ 27,405 | $ 35,203 | $ 48,329 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Latin America
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 40.80 | $ 49.09 | $ 52.48 | $ 57.50 | $ 47.29 | $ 28.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .42 | .87 | 1.09 | 1.34 | 1.07 | .72 |
Net realized and unrealized gain (loss) | (2.70) | (4.74) | (3.67) | (5.88) | 11.00 | 18.32 |
Total from investment operations | (2.28) | (3.87) | (2.58) | (4.54) | 12.07 | 19.04 |
Distributions from net investment income | (.71) | (.98) | (.82) | (.29) | (1.49) | (.46) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | (.39) | - |
Total distributions | (6.96) | (4.43) | (.82) | (.49) | (1.88) | (.46) |
Redemption fees added to paid in capital D | - I | .01 | .01 | .01 | .02 | .02 |
Net asset value, end of period | $ 31.56 | $ 40.80 | $ 49.09 | $ 52.48 | $ 57.50 | $ 47.29 |
Total Return B, C | (5.13)% | (8.63)% | (4.91)% | (7.96)% | 25.91% | 67.88% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.08% A | 1.04% | 1.02% | 1.00% | 1.03% | 1.07% |
Expenses net of fee waivers, if any | 1.08% A | 1.04% | 1.02% | 1.00% | 1.03% | 1.07% |
Expenses net of all reductions | 1.08% A | 1.03% | 1.02% | 1.00% | 1.01% | 1.05% |
Net investment income (loss) | 2.67% A | 1.99% | 2.14% | 2.39% | 2.10% | 2.04% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,057,005 | $ 1,324,748 | $ 2,274,601 | $ 2,884,301 | $ 4,283,462 | $ 4,043,748 |
Portfolio turnover rate F | 26% A | 23% | 23% | 11% | 56% H | 52% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.79 | $ 49.07 | $ 52.51 | $ 57.49 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .43 | .87 | 1.08 | 1.32 | .03 |
Net realized and unrealized gain (loss) | (2.68) | (4.74) | (3.67) | (5.88) | 2.79 |
Total from investment operations | (2.25) | (3.87) | (2.59) | (4.56) | 2.82 |
Distributions from net investment income | (.73) | (.97) | (.86) | (.23) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.98) | (4.42) | (.86) | (.43) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.56 | $ 40.79 | $ 49.07 | $ 52.51 | $ 57.49 |
Total Return B, C, D | (5.05)% | (8.63)% | (4.93)% | (7.98)% | 5.15% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.04% A | 1.03% | 1.04% | 1.04% | 1.08% A |
Expenses net of fee waivers, if any | 1.04% A | 1.03% | 1.04% | 1.04% | 1.08% A |
Expenses net of all reductions | 1.04% A | 1.01% | 1.04% | 1.04% | 1.06% A |
Net investment income (loss) | 2.71% A | 2.00% | 2.12% | 2.35% | .68% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,845 | $ 5,131 | $ 7,928 | $ 9,603 | $ 12,868 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Latin America Fund (the Fund) is a non-diversified fund of Fidelity Investment Trust (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 T, Class C, Latin America and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014 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 and may include proceeds received from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets and Liabilities.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 352,843,675 |
Gross unrealized depreciation | (95,735,869) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 257,107,806 |
|
|
Tax cost | $ 896,121,694 |
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $153,218,021 and $344,847,341, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 50,201 | $ 15,850 |
Class T | .25% | .25% | 27,008 | 9,118 |
Class B | .75% | .25% | 17,560 | 15,046 |
Class C | .75% | .25% | 64,525 | 19,345 |
|
|
| $ 159,294 | $ 59,359 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 8,568 |
Class T | 1,580 |
Class B* | 4,192 |
Class C* | 961 |
| $ 15,301 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 A | $ 59,941 | .30 |
Class T | 17,016 | .32 |
Class B | 5,244 | .30 |
Class C | 19,210 | .30 |
Latin America | 1,361,727 | .25 |
Institutional Class | 4,120 | .21 |
| $ 1,467,258 |
|
* 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 $6,208 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 5,153,200 | .30% | $ 429 |
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 $1,123 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $119,649. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $6,039,286. The weighted average interest rate was .58%. The interest expense amounted to $679 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $16,373 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $5,171.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 667,095 | $ 1,098,761 |
Class T | 136,327 | 245,683 |
Class B | 12,098 | 57,649 |
Class C | 60,991 | 192,218 |
Latin America | 22,631,305 | 43,971,155 |
Institutional Class | 91,360 | 150,629 |
Total | $ 23,599,176 | $ 45,716,095 |
From net realized gain |
|
|
Class A | $ 7,249,224 | $ 4,828,947 |
Class T | 1,918,455 | 1,341,152 |
Class B | 684,975 | 641,573 |
Class C | 2,282,110 | 1,868,040 |
Latin America | 196,577,505 | 155,430,816 |
Institutional Class | 780,004 | 537,960 |
Total | $ 209,492,273 | $ 164,648,488 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended April 30, | Year ended | |
Class A |
|
|
|
|
Shares sold | 150,966 | 232,318 | $ 4,630,848 | $ 10,075,611 |
Reinvestment of distributions | 229,379 | 119,230 | 7,071,806 | 5,315,278 |
Shares redeemed | (317,483) | (584,100) | (9,905,785) | (25,288,174) |
Net increase (decrease) | 62,862 | (232,552) | $ 1,796,869 | $ (9,897,285) |
Class T |
|
|
|
|
Shares sold | 20,679 | 46,221 | $ 649,525 | $ 2,015,673 |
Reinvestment of distributions | 65,609 | 34,933 | 2,028,651 | 1,559,775 |
Shares redeemed | (67,332) | (164,385) | (2,064,637) | (7,142,972) |
Net increase (decrease) | 18,956 | (83,231) | $ 613,539 | $ (3,567,524) |
Class B |
|
|
|
|
Shares sold | 860 | 1,849 | $ 26,800 | $ 84,642 |
Reinvestment of distributions | 18,939 | 13,236 | 590,702 | 592,836 |
Shares redeemed | (43,864) | (92,657) | (1,377,702) | (4,084,874) |
Net increase (decrease) | (24,065) | (77,572) | $ (760,200) | $ (3,407,396) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended April 30, | Year ended | |
Class C |
|
|
|
|
Shares sold | 65,258 | 46,994 | $ 2,036,104 | $ 2,021,869 |
Reinvestment of distributions | 69,412 | 42,623 | 2,158,721 | 1,907,392 |
Shares redeemed | (106,356) | (277,980) | (3,352,868) | (12,111,471) |
Net increase (decrease) | 28,314 | (188,363) | $ 841,957 | $ (8,182,210) |
Latin America |
|
|
|
|
Shares sold | 2,278,196 | 3,510,227 | $ 71,284,559 | $ 154,033,223 |
Reinvestment of distributions | 6,820,938 | 4,304,957 | 209,950,213 | 191,785,822 |
Shares redeemed | (8,083,044) | (21,678,292) | (252,974,033) | (945,202,869) |
Net increase (decrease) | 1,016,090 | (13,863,108) | $ 28,260,739 | $ (599,383,824) |
Institutional Class |
|
|
|
|
Shares sold | 70,610 | 62,065 | $ 2,214,205 | $ 2,723,553 |
Reinvestment of distributions | 21,472 | 11,511 | 660,491 | 512,716 |
Shares redeemed | (96,043) | (109,367) | (2,961,558) | (4,811,735) |
Net increase (decrease) | (3,961) | (35,791) | $ (86,862) | $ (1,575,466) |
12. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
FALAI-USAN-0614
1.917411.103
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Total Emerging Markets
Fund - Class A, Class T,
and Class C
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Class A, Class T, and
Class C are classes of
Fidelity® Total Emerging
Markets Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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://advisor.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.
Semiannual Report
Fidelity Total Emerging Markets Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 999.90 | $ 8.18 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.61 | $ 8.25 |
Class T | 1.90% |
|
|
|
Actual |
| $ 1,000.00 | $ 999.20 | $ 9.42 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.37 | $ 9.49 |
Class C | 2.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 997.00 | $ 11.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,012.89 | $ 11.98 |
Total Emerging Markets | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.70 | $ 6.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.00 |
Institutional Class | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.20 | $ 6.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.00 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Total Emerging Markets Fund
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 3.1 | 3.6 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 2.6 | 2.4 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 1.7 | 1.6 |
Industrial & Commercial Bank of China Ltd. | 1.2 | 1.4 |
Hyundai Motor Co. Series 2 (Korea (South), Automobiles) | 1.0 | 0.5 |
| 9.6 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 20.1 | 21.9 |
Information Technology | 12.5 | 12.5 |
Energy | 11.9 | 11.4 |
Industrials | 6.7 | 6.3 |
Materials | 6.6 | 7.8 |
Top Five Countries as of April 30, 2014 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Korea (South) | 13.7 | 14.1 |
Brazil | 7.9 | 7.8 |
Cayman Islands | 6.5 | 6.8 |
Taiwan | 5.5 | 5.5 |
India | 5.2 | 5.3 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
Stocks and |
| Stocks and |
| ||||
Bonds 27.3% |
| Bonds 22.2% |
| ||||
Short-Term |
| Short-Term |
|
Semiannual Report
Fidelity Total Emerging Markets Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 62.4% | |||
Shares | Value | ||
Argentina - 0.2% | |||
Grupo Financiero Galicia SA sponsored ADR | 9,370 | $ 126,120 | |
YPF SA Class D sponsored ADR | 770 | 21,914 | |
TOTAL ARGENTINA | 148,034 | ||
Austria - 0.5% | |||
C.A.T. oil AG (Bearer) | 10,431 | 218,519 | |
Erste Group Bank AG | 4,235 | 142,127 | |
TOTAL AUSTRIA | 360,646 | ||
Bailiwick of Jersey - 0.1% | |||
Atrium European Real Estate Ltd. | 14,541 | 83,720 | |
Bermuda - 1.4% | |||
Aquarius Platinum Ltd.: | |||
rights 5/14/14 (a) | 185,042 | 19,769 | |
(Australia) (a) | 92,521 | 33,092 | |
BW Offshore Ltd. | 134,844 | 176,032 | |
Cosan Ltd. Class A | 8,663 | 105,082 | |
Golar LNG Ltd. (NASDAQ) | 2,600 | 114,920 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 76,222 | 126,481 | |
Shangri-La Asia Ltd. | 118,000 | 194,512 | |
Yue Yuen Industrial (Holdings) Ltd. | 76,500 | 236,320 | |
TOTAL BERMUDA | 1,006,208 | ||
Brazil - 3.2% | |||
Anhanguera Educacional Participacoes SA | 31,500 | 194,955 | |
BM&F BOVESPA SA | 41,200 | 210,642 | |
BR Properties SA | 21,980 | 175,564 | |
Cosan SA Industria e Comercio | 6,469 | 110,943 | |
Estacio Participacoes SA | 17,100 | 183,136 | |
Fibria Celulose SA (a) | 16,300 | 162,287 | |
Light SA | 9,864 | 78,744 | |
Localiza Rent A Car SA | 16,100 | 240,444 | |
Mills Estruturas e Servicos de Engenharia SA | 14,800 | 186,647 | |
Minerva SA (a) | 49,000 | 220,195 | |
Smiles SA | 12,400 | 234,959 | |
T4F Entretenimento SA (a) | 27,100 | 61,377 | |
Ultrapar Participacoes SA | 10,500 | 263,613 | |
TOTAL BRAZIL | 2,323,506 | ||
British Virgin Islands - 0.1% | |||
Luxoft Holding, Inc. | 3,300 | 89,067 | |
Common Stocks - continued | |||
Shares | Value | ||
Canada - 0.6% | |||
First Quantum Minerals Ltd. | 5,200 | $ 103,568 | |
Goldcorp, Inc. | 8,100 | 200,052 | |
Pan American Silver Corp. | 9,100 | 117,936 | |
Torex Gold Resources, Inc. (a) | 46,600 | 51,870 | |
TOTAL CANADA | 473,426 | ||
Cayman Islands - 5.5% | |||
58.com, Inc. ADR | 4,950 | 196,911 | |
Anta Sports Products Ltd. | 104,000 | 152,118 | |
Anton Oilfield Services Group | 102,000 | 67,492 | |
Bitauto Holdings Ltd. ADR (a) | 3,100 | 111,073 | |
Bloomage BioTechnology Corp. Ltd. | 17,500 | 47,063 | |
China Liansu Group Holdings Ltd. | 93,000 | 49,421 | |
Cimc Enric Holdings Ltd. | 94,000 | 136,036 | |
Eurasia Drilling Co. Ltd. GDR (Reg. S) | 12,434 | 306,498 | |
GCL-Poly Energy Holdings Ltd. (a) | 1,041,000 | 311,510 | |
Greatview Aseptic Pack Co. Ltd. | 353,000 | 215,362 | |
Haitian International Holdings Ltd. | 54,000 | 108,795 | |
Hengan International Group Co. Ltd. | 20,500 | 215,895 | |
Hilong Holding Ltd. | 260,000 | 135,484 | |
On-Bright Electronics, Inc. | 2,000 | 18,166 | |
Silergy Corp. | 6,000 | 49,726 | |
SINA Corp. (a) | 2,843 | 135,895 | |
Tencent Holdings Ltd. | 19,500 | 1,215,331 | |
Tingyi (Cayman Islands) Holding Corp. | 58,000 | 161,216 | |
Uni-President China Holdings Ltd. | 182,000 | 150,709 | |
Xueda Education Group sponsored ADR | 21,900 | 109,281 | |
Yingde Gases Group Co. Ltd. | 130,000 | 131,292 | |
TOTAL CAYMAN ISLANDS | 4,025,274 | ||
Chile - 1.1% | |||
Banco Santander Chile | 3,142,144 | 189,891 | |
Embotelladora Andina SA ADR | 1,700 | 32,844 | |
Empresa Nacional de Electricidad SA | 112,044 | 165,756 | |
Empresa Nacional de Telecomunicaciones SA (ENTEL) | 9,577 | 117,571 | |
Inversiones La Construccion SA | 11,137 | 146,551 | |
Vina Concha y Toro SA | 60,851 | 127,255 | |
TOTAL CHILE | 779,868 | ||
China - 4.7% | |||
Anhui Conch Cement Co. Ltd. (H Shares) | 42,500 | 157,875 | |
BBMG Corp. (H Shares) | 175,000 | 123,018 | |
China Communications Construction Co. Ltd. (H Shares) | 235,000 | 153,677 | |
Common Stocks - continued | |||
Shares | Value | ||
China - continued | |||
China Life Insurance Co. Ltd. (H Shares) | 135,600 | $ 352,771 | |
China Longyuan Power Grid Corp. Ltd. (H Shares) | 37,500 | 38,598 | |
China Pacific Insurance Group Co. Ltd. (H Shares) | 157,000 | 492,084 | |
China Petroleum & Chemical Corp. sponsored ADR (H Shares) | 1,700 | 151,079 | |
China Suntien Green Energy Corp. Ltd. (H Shares) | 267,000 | 90,229 | |
China Telecom Corp. Ltd. (H Shares) | 622,057 | 318,238 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 1,438,000 | 859,231 | |
Maanshan Iron & Steel Ltd. (H Shares) (a) | 558,000 | 116,596 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 197,900 | 260,873 | |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 32,560 | 240,852 | |
Sinopec Engineering Group Co. Ltd. (H Shares) (e) | 88,500 | 98,854 | |
TOTAL CHINA | 3,453,975 | ||
Colombia - 0.3% | |||
BanColombia SA sponsored ADR | 3,971 | 226,069 | |
Denmark - 1.0% | |||
Auriga Industries A/S Series B (a) | 3,681 | 136,156 | |
Vestas Wind Systems A/S (a) | 13,049 | 579,201 | |
TOTAL DENMARK | 715,357 | ||
France - 0.6% | |||
Technip SA | 3,829 | 430,816 | |
Hong Kong - 0.8% | |||
China Resources Power Holdings Co. Ltd. | 28,791 | 72,414 | |
China Unicom Ltd. | 186,200 | 285,451 | |
Far East Horizon Ltd. | 221,000 | 149,653 | |
Sinotruk Hong Kong Ltd. | 190,000 | 100,723 | |
TOTAL HONG KONG | 608,241 | ||
India - 5.2% | |||
Axis Bank Ltd. | 21,329 | 538,937 | |
Bharti Airtel Ltd. | 42,518 | 231,253 | |
Bharti Infratel Ltd. (a) | 88,869 | 317,742 | |
Coal India Ltd. | 26,915 | 130,235 | |
Eicher Motors Ltd. | 1,777 | 182,701 | |
Grasim Industries Ltd. | 3,629 | 160,313 | |
Hindalco Industries Ltd. | 53,254 | 118,578 | |
Indiabulls Real Estate Ltd. | 99,707 | 102,823 | |
ITC Ltd. | 71,786 | 405,556 | |
JK Cement Ltd. | 16,915 | 63,675 | |
Lupin Ltd. | 11,847 | 202,151 | |
Mundra Port and SEZ Ltd. | 73,373 | 228,945 | |
Common Stocks - continued | |||
Shares | Value | ||
India - continued | |||
Petronet LNG Ltd. | 98,003 | $ 235,279 | |
Phoenix Mills Ltd. (a) | 40,562 | 166,982 | |
Power Grid Corp. of India Ltd. | 83,004 | 145,599 | |
SREI Infrastructure Finance Ltd. | 313,747 | 174,261 | |
State Bank of India | 11,305 | 389,598 | |
TOTAL INDIA | 3,794,628 | ||
Indonesia - 1.6% | |||
PT AKR Corporindo Tbk | 246,200 | 101,576 | |
PT Bakrieland Development Tbk (a) | 19,207,200 | 83,065 | |
PT Bank Rakyat Indonesia Tbk | 361,900 | 309,892 | |
PT Bank Tabungan Negara Tbk | 1,117,700 | 111,659 | |
PT Kalbe Farma Tbk | 1,357,700 | 181,434 | |
PT Lippo Karawaci Tbk | 1,207,000 | 111,706 | |
PT Telkomunikasi Indonesia Tbk: | |||
Series B | 112,100 | 22,033 | |
sponsored ADR | 6,160 | 244,552 | |
TOTAL INDONESIA | 1,165,917 | ||
Israel - 0.2% | |||
Bezeq The Israeli Telecommunication Corp. Ltd. | 74,400 | 134,804 | |
Kenya - 0.2% | |||
Equity Bank Ltd. | 349,500 | 153,642 | |
Korea (South) - 11.9% | |||
AMOREPACIFIC Group, Inc. | 657 | 339,597 | |
Daewoo International Corp. | 13,656 | 479,170 | |
Daou Technology, Inc. | 5,880 | 81,959 | |
E-Mart Co. Ltd. | 1,535 | 350,654 | |
GS Retail Co. Ltd. | 7,940 | 220,577 | |
Hana Financial Group, Inc. | 14,920 | 524,966 | |
Hankook Shell Oil Co. Ltd. | 196 | 88,789 | |
Hyundai Industrial Development & Construction Co. | 6,250 | 178,770 | |
Hyundai Mobis | 1,248 | 356,365 | |
KB Financial Group, Inc. | 10,490 | 358,920 | |
Korea Electric Power Corp. | 6,357 | 243,106 | |
KEPCO Plant Service & Engineering Co. Ltd. | 2,367 | 153,966 | |
Korea Zinc Co. Ltd. | 449 | 147,986 | |
Korean Reinsurance Co. | 20,138 | 198,827 | |
KT&G Corp. | 3,246 | 260,158 | |
LG Chemical Ltd. | 1,314 | 334,510 | |
LG Corp. | 3,541 | 197,084 | |
Naver Corp. | 815 | 582,200 | |
Common Stocks - continued | |||
Shares | Value | ||
Korea (South) - continued | |||
Oci Co. Ltd. | 1,041 | $ 182,384 | |
Samsung C&T Corp. | 4,134 | 259,300 | |
Samsung Electronics Co. Ltd. | 1,766 | 2,295,740 | |
Seoul Semiconductor Co. Ltd. | 3,376 | 135,452 | |
Shinhan Financial Group Co. Ltd. | 11,720 | 511,659 | |
SK Hynix, Inc. (a) | 1,820 | 70,732 | |
SK Telecom Co. Ltd. sponsored ADR | 7,785 | 179,756 | |
TOTAL KOREA (SOUTH) | 8,732,627 | ||
Malaysia - 0.1% | |||
Petronas Dagangan Bhd | 10,000 | 92,874 | |
Mexico - 3.5% | |||
America Movil S.A.B. de CV Series L sponsored ADR | 20,043 | 402,463 | |
CEMEX S.A.B. de CV sponsored ADR | 20,108 | 254,165 | |
El Puerto de Liverpool S.A.B. de CV Class C | 18,400 | 189,489 | |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 3,350 | 304,080 | |
Gruma S.A.B. de CV Series B (a) | 19,000 | 167,856 | |
Grupo Comercial Chedraui S.A.B. de CV | 54,600 | 166,311 | |
Grupo Financiero Banorte S.A.B. de CV Series O | 58,700 | 389,142 | |
Grupo Televisa SA de CV (CPO) sponsored ADR | 17,400 | 570,894 | |
Macquarie Mexican (REIT) | 51,000 | 96,833 | |
TOTAL MEXICO | 2,541,233 | ||
Netherlands - 0.1% | |||
SBM Offshore NV (a) | 4,500 | 82,190 | |
Nigeria - 1.2% | |||
Guaranty Trust Bank PLC | 476,380 | 77,781 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 36,030 | 302,652 | |
Zenith Bank PLC | 3,761,199 | 531,461 | |
TOTAL NIGERIA | 911,894 | ||
Norway - 0.6% | |||
ElectroMagnetic GeoServices ASA (a) | 60,740 | 72,549 | |
Spectrum ASA | 7,281 | 57,569 | |
Statoil ASA | 4,200 | 128,039 | |
TGS Nopec Geophysical Co. ASA | 4,282 | 147,673 | |
TOTAL NORWAY | 405,830 | ||
Panama - 0.3% | |||
Copa Holdings SA Class A | 1,680 | 227,270 | |
Peru - 0.0% | |||
Alicorp SA Class C | 459 | 1,390 | |
Common Stocks - continued | |||
Shares | Value | ||
Philippines - 1.5% | |||
Alliance Global Group, Inc. | 323,600 | $ 226,139 | |
LT Group, Inc. | 381,500 | 156,623 | |
Metro Pacific Investments Corp. | 449,000 | 51,070 | |
Metropolitan Bank & Trust Co. | 147,334 | 279,959 | |
Robinsons Land Corp. | 804,400 | 402,426 | |
TOTAL PHILIPPINES | 1,116,217 | ||
Poland - 0.5% | |||
Cyfrowy Polsat SA | 23,500 | 159,505 | |
Powszechny Zaklad Ubezpieczen SA | 1,495 | 211,931 | |
TOTAL POLAND | 371,436 | ||
Portugal - 0.2% | |||
Banco Espirito Santo SA (Reg.) (a) | 62,800 | 111,172 | |
Puerto Rico - 0.1% | |||
Popular, Inc. (a) | 3,230 | 99,807 | |
Romania - 0.1% | |||
SNGN Romgaz SA GDR (e) | 6,769 | 73,105 | |
Russia - 1.6% | |||
Bashneft OJSC (a) | 813 | 48,376 | |
E.ON Russia JSC | 2,450,400 | 171,745 | |
Gazprom OAO sponsored: | |||
ADR | 18,332 | 132,357 | |
ADR (Reg. S) | 25,000 | 180,300 | |
LUKOIL Oil Co. sponsored ADR (United Kingdom) | 2,200 | 116,270 | |
Mobile TeleSystems OJSC | 27,726 | 201,184 | |
NOVATEK OAO GDR (Reg. S) | 1,400 | 144,620 | |
Sberbank (Savings Bank of the Russian Federation) | 84,050 | 171,049 | |
TOTAL RUSSIA | 1,165,901 | ||
Singapore - 0.9% | |||
Ezion Holdings Ltd. | 140,200 | 253,852 | |
First Resources Ltd. | 197,000 | 403,837 | |
TOTAL SINGAPORE | 657,689 | ||
South Africa - 3.4% | |||
Aspen Pharmacare Holdings Ltd. | 11,787 | 313,674 | |
Barclays Africa Group Ltd. | 11,602 | 169,831 | |
Bidvest Group Ltd. | 9,869 | 270,634 | |
Impala Platinum Holdings Ltd. (a) | 14,300 | 160,935 | |
JSE Ltd. | 10,950 | 100,440 | |
Life Healthcare Group Holdings Ltd. | 54,000 | 214,399 | |
Common Stocks - continued | |||
Shares | Value | ||
South Africa - continued | |||
MTN Group Ltd. (g) | 30,249 | $ 606,130 | |
Naspers Ltd. Class N | 7,000 | 660,045 | |
TOTAL SOUTH AFRICA | 2,496,088 | ||
Taiwan - 5.5% | |||
Cathay Financial Holding Co. Ltd. | 172,000 | 242,900 | |
Chipbond Technology Corp. | 44,000 | 75,265 | |
E.SUN Financial Holdings Co. Ltd. | 204,000 | 123,419 | |
E.SUN Financial Holdings Co. Ltd. rights 5/6/14 (a) | 18,582 | 2,002 | |
ECLAT Textile Co. Ltd. | 14,660 | 160,375 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 20,950 | 60,144 | |
King Slide Works Co. Ltd. | 300 | 3,908 | |
MediaTek, Inc. | 46,000 | 719,763 | |
Taiwan Fertilizer Co. Ltd. | 119,300 | 237,291 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 324,000 | 1,274,483 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 30,242 | 607,864 | |
Unified-President Enterprises Corp. | 169,739 | 287,536 | |
Universal Cement Corp. | 83,000 | 79,518 | |
Voltronic Power Technology Corp. | 1,000 | 6,514 | |
Yuanta Financial Holding Co. Ltd. | 297,300 | 148,327 | |
TOTAL TAIWAN | 4,029,309 | ||
Thailand - 1.0% | |||
Jasmine International Public Co. Ltd. | 462,800 | 118,703 | |
Kasikornbank PCL (For. Reg.) | 46,560 | 282,727 | |
Thai Union Frozen Products PCL (For. Reg.) | 117,900 | 255,037 | |
Total Access Communication PCL NVDR | 28,500 | 109,649 | |
TOTAL THAILAND | 766,116 | ||
Togo - 0.3% | |||
Ecobank Transnational, Inc. | 2,707,486 | 227,520 | |
Turkey - 0.9% | |||
Aygaz A/S | 4,650 | 19,159 | |
Tupras Turkiye Petrol Rafinelleri A/S | 14,000 | 314,935 | |
Turkiye Halk Bankasi A/S | 49,200 | 328,536 | |
TOTAL TURKEY | 662,630 | ||
United Arab Emirates - 0.2% | |||
First Gulf Bank PJSC | 23,177 | 109,482 | |
Common Stocks - continued | |||
Shares | Value | ||
United Kingdom - 0.1% | |||
John Wood Group PLC | 8 | $ 106 | |
Mondi PLC | 5,200 | 86,260 | |
TOTAL UNITED KINGDOM | 86,366 | ||
United States of America - 1.1% | |||
Cognizant Technology Solutions Corp. Class A (a) | 6,020 | 288,388 | |
Facebook, Inc. Class A (a) | 4,506 | 269,369 | |
InvenSense, Inc. (a) | 10,311 | 221,996 | |
TOTAL UNITED STATES OF AMERICA | 779,753 | ||
TOTAL COMMON STOCKS (Cost $38,477,937) |
| ||
Nonconvertible Preferred Stocks - 7.0% | |||
|
|
|
|
Brazil - 4.4% | |||
Ambev SA sponsored ADR | 27,400 | 198,650 | |
Banco do Estado Rio Grande do Sul SA | 38,320 | 214,994 | |
Braskem SA (PN-A) | 28,500 | 194,538 | |
Companhia Paranaense de Energia-Copel: | |||
(PN-B) | 415 | 5,947 | |
(PN-B) sponsored | 8,095 | 116,163 | |
Gerdau SA sponsored | 43,500 | 261,435 | |
Itau Unibanco Holding SA sponsored ADR | 45,520 | 744,707 | |
Petroleo Brasileiro SA - Petrobras: | |||
(PN) sponsored (non-vtg.) | 11,206 | 165,849 | |
sponsored ADR | 29,521 | 409,751 | |
Telefonica Brasil SA | 5,110 | 107,345 | |
TIM Participacoes SA sponsored ADR | 2,300 | 61,893 | |
Vale SA (PN-A) sponsored ADR | 62,300 | 739,501 | |
TOTAL BRAZIL | 3,220,773 | ||
Chile - 0.2% | |||
Embotelladora Andina SA Class A | 35,643 | 114,335 | |
Korea (South) - 1.8% | |||
Hyundai Motor Co. Series 2 | 5,326 | 747,527 | |
Samsung Electronics Co. Ltd. | 301 | 302,136 | |
Samsung Fire & Marine Insurance Co. Ltd. | 1,669 | 243,137 | |
TOTAL KOREA (SOUTH) | 1,292,800 | ||
Russia - 0.6% | |||
Bashneft OJSC (a) | 1,200 | 52,258 | |
Nonconvertible Preferred Stocks - continued | |||
Shares | Value | ||
Russia - continued | |||
Sberbank (Savings Bank of the Russian Federation) | 158,100 | $ 266,984 | |
Surgutneftegas | 213,550 | 148,661 | |
TOTAL RUSSIA | 467,903 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $5,120,455) |
|
Nonconvertible Bonds - 9.4% | ||||
| Principal Amount (c) |
| ||
Argentina - 0.1% | ||||
YPF SA 8.875% 12/19/18 (e) | $ 45,000 | 46,856 | ||
Canada - 0.6% | ||||
Pacific Rubiales Energy Corp. 7.25% 12/12/21 (e) | 400,000 | 437,000 | ||
Cayman Islands - 1.0% | ||||
Brazil Minas SPE 5.333% 2/15/28 (e) | 250,000 | 245,313 | ||
Odebrecht Finance Ltd. 7.5% (e)(f) | 475,000 | 486,875 | ||
TOTAL CAYMAN ISLANDS | 732,188 | |||
Costa Rica - 0.3% | ||||
Instituto Costarricense de Electricidad 6.95% 11/10/21 (e) | 200,000 | 209,500 | ||
Georgia - 0.4% | ||||
Georgia Bank Joint Stock Co. 7.75% 7/5/17 (e) | 300,000 | 319,500 | ||
Indonesia - 0.2% | ||||
PT Pertamina Persero 5.625% 5/20/43 (e) | 200,000 | 169,750 | ||
Kazakhstan - 1.1% | ||||
KazMunaiGaz Finance Sub BV 7% 5/5/20 (e) | 150,000 | 168,563 | ||
KazMunaiGaz National Co. 5.75% 4/30/43 (e) | 300,000 | 271,521 | ||
Zhaikmunai International BV 7.125% 11/13/19 (e) | 400,000 | 409,000 | ||
TOTAL KAZAKHSTAN | 849,084 | |||
Luxembourg - 0.3% | ||||
Millicom International Cellular SA 4.75% 5/22/20 (e) | 200,000 | 193,000 | ||
Mexico - 1.6% | ||||
America Movil S.A.B. de CV 6.45% 12/5/22 | MXN | 9,750,000 | 698,529 | |
Petroleos Mexicanos: | ||||
4.875% 1/18/24 | 275,000 | 284,556 | ||
6.375% 1/23/45 (e) | 175,000 | 192,185 | ||
TOTAL MEXICO | 1,175,270 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Morocco - 0.3% | ||||
OCP SA 6.875% 4/25/44 (e) | $ 200,000 | $ 200,020 | ||
Netherlands - 0.4% | ||||
Indosat Palapa Co. BV 7.375% 7/29/20 (e) | 100,000 | 108,000 | ||
Mozambique Ematum Finance 2020 6.305% 9/11/20 (Reg. S) | 200,000 | 192,800 | ||
TOTAL NETHERLANDS | 300,800 | |||
Nigeria - 0.3% | ||||
Zenith Bank PLC 6.25% 4/22/19 (e) | 200,000 | 200,000 | ||
Paraguay - 0.3% | ||||
Banco Regl Saeca 8.125% 1/24/19 (e) | 200,000 | 214,250 | ||
Trinidad & Tobago - 0.3% | ||||
Petroleum Co. of Trinidad & Tobago Ltd. 9.75% 8/14/19 (e) | 150,000 | 189,750 | ||
Turkey - 0.5% | ||||
Arcelik A/S 5% 4/3/23 (e) | 200,000 | 187,900 | ||
Finansbank A/S 5.5% 5/11/16 (Reg. S) | 200,000 | 202,500 | ||
TOTAL TURKEY | 390,400 | |||
Venezuela - 1.7% | ||||
Petroleos de Venezuela SA: | ||||
5.5% 4/12/37 | 500,000 | 278,000 | ||
6% 11/15/26 (Reg. S) | 700,000 | 412,125 | ||
8.5% 11/2/17 (e) | 250,000 | 225,000 | ||
9% 11/17/21 (Reg. S) | 150,000 | 122,438 | ||
9.75% 5/17/35 (e) | 300,000 | 228,900 | ||
TOTAL VENEZUELA | 1,266,463 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $6,909,931) |
| |||
Government Obligations - 18.0% | ||||
| ||||
Armenia - 0.6% | ||||
Republic of Armenia 6% 9/30/20 (e) | 400,000 | 409,500 | ||
Azerbaijan - 0.7% | ||||
Azerbaijan Rep 4.75% 3/18/24 (e) | 200,000 | 201,540 | ||
State Oil Co. of Azerbaijan Republic 4.75% 3/13/23 (Reg. S) | 325,000 | 313,381 | ||
TOTAL AZERBAIJAN | 514,921 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Barbados - 0.3% | ||||
Barbados Government 7% 8/4/22 (e) | $ 200,000 | $ 186,000 | ||
Belarus - 0.4% | ||||
Belarus Republic 8.75% 8/3/15 (Reg. S) | 325,000 | 326,359 | ||
Belize - 0.3% | ||||
Belize Government 5% 2/20/38 (d)(e) | 332,500 | 229,758 | ||
Bolivia - 0.3% | ||||
Plurinational State of Bolivia 4.875% 10/29/22 (e) | 200,000 | 199,250 | ||
Brazil - 0.3% | ||||
Brazilian Federative Republic 4.25% 1/7/25 | 250,000 | 248,125 | ||
Congo - 0.4% | ||||
Congo Republic 3.5% 6/30/29 (d) | 319,366 | 288,227 | ||
Costa Rica - 0.3% | ||||
Costa Rican Republic 7% 4/4/44 (e) | 200,000 | 199,000 | ||
Croatia - 0.3% | ||||
Croatia Republic 6% 1/26/24 (e) | 200,000 | 208,250 | ||
Dominican Republic - 0.5% | ||||
Dominican Republic: | ||||
5.875% 4/18/24 (e) | 150,000 | 149,250 | ||
7.45% 4/30/44 (e) | 200,000 | 201,471 | ||
TOTAL DOMINICAN REPUBLIC | 350,721 | |||
Ecuador - 0.6% | ||||
Ecuador Republic 9.375% 12/15/15 (e) | 386,000 | 412,538 | ||
El Salvador - 0.2% | ||||
El Salvador Republic 7.625% 2/1/41 (e) | 150,000 | 154,950 | ||
Ghana - 0.2% | ||||
Ghana Republic 7.875% 8/7/23 (Reg.S) | 200,000 | 185,000 | ||
Guatemala - 0.3% | ||||
Guatemalan Republic 4.875% 2/13/28 (e) | 200,000 | 194,000 | ||
Honduras - 0.3% | ||||
Republic of Honduras 7.5% 3/15/24 (e) | 200,000 | 198,500 | ||
Hungary - 1.3% | ||||
Hungarian Republic: | ||||
6.375% 3/29/21 | 508,000 | 565,150 | ||
7.625% 3/29/41 | 350,000 | 419,125 | ||
TOTAL HUNGARY | 984,275 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Indonesia - 0.6% | ||||
Indonesian Republic: | ||||
5.875% 1/15/24 (e) | $ 225,000 | $ 243,563 | ||
6.75% 1/15/44 (e) | 200,000 | 222,000 | ||
TOTAL INDONESIA | 465,563 | |||
Iraq - 0.6% | ||||
Republic of Iraq 5.8% 1/15/28 (Reg. S) | 500,000 | 446,250 | ||
Ivory Coast - 0.3% | ||||
Ivory Coast 7.7743% 12/31/32 (d) | 275,000 | 258,555 | ||
Jamaica - 0.2% | ||||
Jamaican Government 8% 6/24/19 | 150,000 | 157,875 | ||
Jordan - 0.4% | ||||
Jordanian Kingdom 3.875% 11/12/15 | 300,000 | 300,750 | ||
Lebanon - 0.4% | ||||
Lebanese Republic 11.625% 5/11/16 (Reg. S) | 250,000 | 286,250 | ||
Mongolia - 0.2% | ||||
Mongolian People's Republic 5.125% 12/5/22 (Reg. S) | 200,000 | 168,500 | ||
Morocco - 0.3% | ||||
Moroccan Kingdom 5.5% 12/11/42 (e) | 200,000 | 187,000 | ||
Namibia - 0.3% | ||||
Republic of Namibia 5.5% 11/3/21 (e) | 200,000 | 209,750 | ||
Netherlands - 0.4% | ||||
Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S) | 250,000 | 271,250 | ||
Pakistan - 0.3% | ||||
Islamic Republic of Pakistan 7.25% 4/15/19 (e) | 200,000 | 200,250 | ||
Panama - 0.2% | ||||
Panamanian Republic 4.3% 4/29/53 | 200,000 | 167,750 | ||
Peru - 0.4% | ||||
Peruvian Republic 8.75% 11/21/33 | 200,000 | 300,500 | ||
Philippines - 0.4% | ||||
Philippine Republic 10.625% 3/16/25 | 175,000 | 273,875 | ||
Romania - 0.6% | ||||
Romanian Republic: | ||||
6.125% 1/22/44 (e) | 200,000 | 219,250 | ||
6.75% 2/7/22 (e) | 190,000 | 224,913 | ||
TOTAL ROMANIA | 444,163 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Russia - 0.5% | ||||
Russian Federation 12.75% 6/24/28 (Reg. S) | $ 225,000 | $ 360,000 | ||
Senegal - 0.3% | ||||
Republic of Senegal 8.75% 5/13/21 (e) | 200,000 | 226,000 | ||
Serbia - 0.4% | ||||
Republic of Serbia 7.25% 9/28/21 (e) | 260,000 | 288,925 | ||
Slovenia - 0.6% | ||||
Republic of Slovenia: | ||||
4.75% 5/10/18 (e) | 200,000 | 211,750 | ||
5.85% 5/10/23 (e) | 200,000 | 217,500 | ||
TOTAL SLOVENIA | 429,250 | |||
Sri Lanka - 0.4% | ||||
Democratic Socialist Republic of Sri Lanka 6.25% 10/4/20 (e) | 300,000 | 311,625 | ||
Tanzania - 0.3% | ||||
United Republic of Tanzania 6.332% 3/9/20 (i) | 200,000 | 209,500 | ||
Turkey - 0.4% | ||||
Turkish Republic 11.875% 1/15/30 | 165,000 | 275,550 | ||
United States of America - 0.1% | ||||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.05% 5/8/14 to 6/19/14 (h) | 80,000 | 79,999 | ||
Venezuela - 1.6% | ||||
Venezuelan Republic: | ||||
7% 3/31/38 | 650,000 | 437,125 | ||
7.65% 4/21/25 | 600,000 | 444,000 | ||
8.25% 10/13/24 | 300,000 | 231,000 | ||
9% 5/7/23 (Reg. S) | 100,000 | 81,850 | ||
TOTAL VENEZUELA | 1,193,975 | |||
Vietnam - 0.3% | ||||
Vietnamese Socialist Republic 6.75% 1/29/20 (e) | 200,000 | 225,500 | ||
Zambia - 0.2% | ||||
Republic of Zambia 5.375% 9/20/22 (e) | 200,000 | 177,000 | ||
TOTAL GOVERNMENT OBLIGATIONS (Cost $12,770,155) |
|
Money Market Funds - 3.3% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 2,404,661 | $ 2,404,661 | |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $65,683,139) | 73,320,379 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (60,965) | ||
NET ASSETS - 100% | $ 73,259,414 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
11 NYSE E-mini MSCI Emerging Markets Index Contracts (United States) | June 2014 | $ 546,975 | $ (7,649) |
|
The face value of futures purchased as a percentage of net assets is 0.7% |
Currency Abbreviations | ||
MXN | - | Mexican peso |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Amount is stated in United States dollars unless otherwise noted. |
(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(e) 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 $10,983,875 or 15.0% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $49,999. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
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 | $ 728 |
Fidelity Securities Lending Cash Central Fund | 14 |
Total | $ 742 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 4,210,858 | $ 4,210,858 | $ - | $ - |
Consumer Staples | 4,540,311 | 4,540,311 | - | - |
Energy | 5,268,258 | 5,039,585 | 128,039 | 100,634 |
Financials | 13,449,855 | 10,826,335 | 2,623,520 | - |
Health Care | 911,658 | 709,507 | 202,151 | - |
Industrials | 4,169,775 | 4,169,775 | - | - |
Information Technology | 9,113,170 | 7,838,687 | 1,274,483 | - |
Materials | 4,637,025 | 4,476,712 | 160,313 | - |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Telecommunication Services | $ 3,458,767 | $ 2,833,045 | $ 625,722 | $ - |
Utilities | 1,057,231 | 814,125 | 243,106 | - |
Corporate Bonds | 6,893,831 | - | 6,893,831 | - |
Government Obligations | 13,204,979 | - | 13,204,979 | - |
Money Market Funds | 2,404,661 | 2,404,661 | - | - |
Total Investments in Securities: | $ 73,320,379 | $ 47,863,601 | $ 25,356,144 | $ 100,634 |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (7,649) | $ (7,649) | $ - | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 1,836,662 |
Level 2 to Level 1 | $ 0 |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (7,649) |
Total Value of Derivatives | $ - | $ (7,649) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
AAA,AA,A | 0.9% |
BBB | 7.7% |
BB | 7.5% |
B | 6.2% |
CCC,CC,C | 3.4% |
Not Rated | 1.6% |
Other Investments | 69.4% |
Short-Term Investments and Net Other Assets | 3.3% |
| 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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $63,278,478) | $ 70,915,718 |
|
Fidelity Central Funds (cost $2,404,661) | 2,404,661 |
|
Total Investments (cost $65,683,139) |
| $ 73,320,379 |
Cash |
| 115,817 |
Foreign currency held at value (cost $16,635) | 16,635 | |
Receivable for investments sold | 632,823 | |
Receivable for fund shares sold | 56,692 | |
Dividends receivable | 101,929 | |
Interest receivable | 354,516 | |
Distributions receivable from Fidelity Central Funds | 153 | |
Prepaid expenses | 50 | |
Receivable from investment adviser for expense reductions | 21,746 | |
Other receivables | 24,803 | |
Total assets | 74,645,543 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 959,693 | |
Delayed delivery | 38,966 | |
Payable for fund shares redeemed | 90,709 | |
Accrued management fee | 48,958 | |
Distribution and service plan fees payable | 12,137 | |
Payable for daily variation margin for derivative instruments | 1,485 | |
Other affiliated payables | 15,865 | |
Other payables and accrued expenses | 218,316 | |
Total liabilities | 1,386,129 | |
|
|
|
Net Assets | $ 73,259,414 | |
Net Assets consist of: |
| |
Paid in capital | $ 67,566,653 | |
Undistributed net investment income | 355,652 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,228,157) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 7,565,266 | |
Net Assets | $ 73,259,414 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.19 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.19) | $ 11.87 | |
Class T: | $ 11.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.19) | $ 11.60 | |
Class C: | $ 11.15 | |
|
|
|
Total Emerging Markets: | $ 11.22 | |
|
|
|
Institutional Class: | $ 11.21 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 559,290 |
Interest |
| 643,409 |
Income from Fidelity Central Funds |
| 742 |
Income before foreign taxes withheld |
| 1,203,441 |
Less foreign taxes withheld |
| (59,635) |
Total income |
| 1,143,806 |
|
|
|
Expenses | ||
Management fee | $ 316,060 | |
Transfer agent fees | 82,389 | |
Distribution and service plan fees | 73,539 | |
Accounting and security lending fees | 20,450 | |
Custodian fees and expenses | 167,027 | |
Independent trustees' compensation | 161 | |
Registration fees | 29,057 | |
Audit | 56,585 | |
Legal | 204 | |
Miscellaneous | 3,357 | |
Total expenses before reductions | 748,829 | |
Expense reductions | (122,257) | 626,572 |
Net investment income (loss) | 517,234 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,333,309 | |
Foreign currency transactions | (27,292) | |
Futures contracts | (17,786) | |
Total net realized gain (loss) |
| 1,288,231 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $56,761) | (2,168,530) | |
Assets and liabilities in foreign currencies | 689 | |
Futures contracts | 1,358 | |
Total change in net unrealized appreciation (depreciation) |
| (2,166,483) |
Net gain (loss) | (878,252) | |
Net increase (decrease) in net assets resulting from operations | $ (361,018) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 517,234 | $ 1,900,179 |
Net realized gain (loss) | 1,288,231 | (1,878,240) |
Change in net unrealized appreciation (depreciation) | (2,166,483) | 1,872,247 |
Net increase (decrease) in net assets resulting from operations | (361,018) | 1,894,186 |
Distributions to shareholders from net investment income | (1,381,318) | (1,561,667) |
Distributions to shareholders from net realized gain | - | (137,352) |
Total distributions | (1,381,318) | (1,699,019) |
Share transactions - net increase (decrease) | (12,572,643) | (15,755,086) |
Redemption fees | 20,754 | 87,191 |
Total increase (decrease) in net assets | (14,294,225) | (15,472,728) |
|
|
|
Net Assets | ||
Beginning of period | 87,553,639 | 103,026,367 |
End of period (including undistributed net investment income of $355,652 and undistributed net investment income of $1,219,736, respectively) | $ 73,259,414 | $ 87,553,639 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.37 | $ 10.86 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .07 | .18 | .20 |
Net realized and unrealized gain (loss) | (.07) | .48 H | .68 |
Total from investment operations | - | .66 | .88 |
Distributions from net investment income | (.18) | (.15) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.18) | (.16) | (.02) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.19 | $ 11.37 | $ 10.86 |
Total Return B,C,D | (.01)% | 6.23% | 8.80% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 1.97% A | 1.89% | 1.87% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% |
Expenses net of all reductions | 1.65% A | 1.62% | 1.62% |
Net investment income (loss) | 1.25% A | 1.61% | 1.92% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 13,617 | $ 18,837 | $ 7,675 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.34 | $ 10.84 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .05 | .15 | .17 |
Net realized and unrealized gain (loss) | (.06) | .48 H | .68 |
Total from investment operations | (.01) | .63 | .85 |
Distributions from net investment income | (.14) | (.12) | (.01) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.14) | (.14) L | (.01) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.19 | $ 11.34 | $ 10.84 |
Total Return B,C,D | (.08)% | 5.93% | 8.56% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 2.30% A | 2.13% | 2.10% |
Expenses net of fee waivers, if any | 1.90% A | 1.90% | 1.90% |
Expenses net of all reductions | 1.90% A | 1.88% | 1.87% |
Net investment income (loss) | 1.00% A | 1.36% | 1.67% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 5,207 | $ 5,967 | $ 5,823 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
L Total distributions of $.14 per share is comprised of distributions from net investment income of $.124 and distributions from net realized gain of $.014 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.29 | $ 10.80 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .03 | .09 | .12 |
Net realized and unrealized gain (loss) | (.06) | .47 H | .69 |
Total from investment operations | (.03) | .56 | .81 |
Distributions from net investment income | (.11) | (.07) | (.01) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.11) | (.08) | (.01) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.15 | $ 11.29 | $ 10.80 |
Total Return B,C,D | (.30)% | 5.31% | 8.07% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 2.72% A | 2.65% | 2.63% |
Expenses net of fee waivers, if any | 2.40% A | 2.40% | 2.40% |
Expenses net of all reductions | 2.40% A | 2.37% | 2.37% |
Net investment income (loss) | .50% A | .86% | 1.17% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 8,590 | $ 7,436 | $ 5,824 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Total Emerging Markets
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.40 | $ 10.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .08 | .21 | .22 |
Net realized and unrealized gain (loss) | (.06) | .47 G | .69 |
Total from investment operations | .02 | .68 | .91 |
Distributions from net investment income | (.20) | (.17) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.20) | (.18) | (.02) |
Redemption fees added to paid in capital D | - J | .01 | - J |
Net asset value, end of period | $ 11.22 | $ 11.40 | $ 10.89 |
Total Return B,C | .17% | 6.44% | 9.15% |
Ratios to Average Net Assets E,I |
|
|
|
Expenses before reductions | 1.70% A | 1.56% | 1.60% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.38% | 1.38% |
Net investment income (loss) | 1.50% A | 1.85% | 2.16% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 42,091 | $ 49,959 | $ 81,416 |
Portfolio turnover rate F | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.40 | $ 10.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .08 | .20 | .22 |
Net realized and unrealized gain (loss) | (.07) | .48 G | .69 |
Total from investment operations | .01 | .68 | .91 |
Distributions from net investment income | (.20) | (.17) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.20) | (.18) | (.02) |
Redemption fees added to paid in capital D | - J | .01 | - J |
Net asset value, end of period | $ 11.21 | $ 11.40 | $ 10.89 |
Total Return B,C | .12% | 6.44% | 9.15% |
Ratios to Average Net Assets E,I |
|
|
|
Expenses before reductions | 1.69% A | 1.63% | 1.62% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.37% | 1.37% |
Net investment income (loss) | 1.49% A | 1.86% | 2.17% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 3,755 | $ 5,354 | $ 2,287 |
Portfolio turnover rate F | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Total Emerging Markets Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Total Emerging Markets and Institutional Class 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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. In accordance with valuation policies and procedures
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 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. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 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 April 30, 2014, including information on transfers between Levels 1 and 2, 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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 futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 9,992,601 |
Gross unrealized depreciation | (2,644,222) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 7,348,379 |
|
|
Tax cost | $ 65,972,000 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration |
|
Short-term | $ (2,949,184) |
Semiannual Report
3. Significant Accounting Policies - continued
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 1.50% 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.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
During the period the Fund recognized net realized gain (loss) of $(17,786) and a change in net unrealized appreciation (depreciation) of $1,358 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,228,990 and $49,654,155, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% 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 .80% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 19,924 | $ 10,041 |
Class T | .25% | .25% | 14,022 | 8,155 |
Class C | .75% | .25% | 39,593 | 35,369 |
|
|
| $ 73,539 | $ 53,565 |
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,959 |
Class T | 800 |
Class C* | 917 |
| $ 3,676 |
* 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 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 A | $ 16,716 | .21 |
Class T | 8,307 | .30 |
Class C | 8,632 | .22 |
Total Emerging Markets | 44,033 | .20 |
Institutional Class | 4,701 | .19 |
| $ 82,389 |
|
* 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.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 $516 for the period.
7. 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 $76 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. 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. 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 $14. During the period, there were no securities loaned to FCM.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2014. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.65% | $ 25,128 |
Class T | 1.90% | 11,065 |
Class C | 2.40% | 12,428 |
Total Emerging Markets | 1.40% | 66,128 |
Institutional Class | 1.40% | 7,352 |
|
| $ 122,101 |
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $156.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 298,475 | $ 104,565 |
Class T | 72,882 | 69,282 |
Class C | 71,691 | 35,970 |
Total Emerging Markets | 837,446 | 1,316,259 |
Institutional Class | 100,824 | 35,591 |
Total | $ 1,381,318 | $ 1,561,667 |
From net realized gain |
|
|
Class A | $ - | $ 10,027 |
Class T | - | 7,822 |
Class C | - | 7,516 |
Total Emerging Markets | - | 109,039 |
Institutional Class | - | 2,948 |
Total | $ - | $ 137,352 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 205,590 | 1,550,621 | $ 2,266,614 | $ 17,267,543 |
Reinvestment of distributions | 24,147 | 9,656 | 267,553 | 105,541 |
Shares redeemed | (670,399) | (609,546) | (7,319,781) | (6,666,165) |
Net increase (decrease) | (440,662) | 950,731 | $ (4,785,614) | $ 10,706,919 |
Class T |
|
|
|
|
Shares sold | 36,849 | 277,882 | $ 407,171 | $ 3,114,089 |
Reinvestment of distributions | 6,487 | 7,041 | 71,876 | 76,883 |
Shares redeemed | (104,259) | (295,695) | (1,136,301) | (3,268,261) |
Net increase (decrease) | (60,923) | (10,772) | $ (657,254) | $ (77,289) |
Class C |
|
|
|
|
Shares sold | 158,417 | 431,831 | $ 1,732,158 | $ 4,824,945 |
Reinvestment of distributions | 6,236 | 3,973 | 69,031 | 43,420 |
Shares redeemed | (52,735) | (316,804) | (574,763) | (3,521,280) |
Net increase (decrease) | 111,918 | 119,000 | $ 1,226,426 | $ 1,347,085 |
Total Emerging Markets |
|
|
|
|
Shares sold | 476,556 | 5,085,608 | $ 5,271,798 | $ 57,439,168 |
Reinvestment of distributions | 69,851 | 113,766 | 774,644 | 1,243,462 |
Shares redeemed | (1,177,597) | (8,294,710) | (12,948,433) | (89,232,029) |
Net increase (decrease) | (631,190) | (3,095,336) | $ (6,901,991) | $ (30,549,399) |
Institutional Class |
|
|
|
|
Shares sold | 99,056 | 491,268 | $ 1,096,301 | $ 5,357,985 |
Reinvestment of distributions | 8,910 | 3,526 | 98,814 | 38,539 |
Shares redeemed | (242,879) | (235,091) | (2,649,325) | (2,578,926) |
Net increase (decrease) | (134,913) | 259,703 | $ (1,454,210) | $ 2,817,598 |
12. 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
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
12. Other - continued
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, the investment adviser or its affiliates were the owners of record of 33% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
(Fidelity Investment logo)(registered trademark)
ATEK-USAN-0614 1.931270.102
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Total Emerging Markets
Fund - Institutional Class
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Institutional Class is a
class of Fidelity® Total
Emerging Markets Fund
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.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.
Semiannual Report
Fidelity Total Emerging Markets Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Class A | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 999.90 | $ 8.18 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.61 | $ 8.25 |
Class T | 1.90% |
|
|
|
Actual |
| $ 1,000.00 | $ 999.20 | $ 9.42 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.37 | $ 9.49 |
Class C | 2.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 997.00 | $ 11.88 |
HypotheticalA |
| $ 1,000.00 | $ 1,012.89 | $ 11.98 |
Total Emerging Markets | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.70 | $ 6.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.00 |
Institutional Class | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,001.20 | $ 6.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.85 | $ 7.00 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Total Emerging Markets Fund
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 3.1 | 3.6 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 2.6 | 2.4 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 1.7 | 1.6 |
Industrial & Commercial Bank of China Ltd. | 1.2 | 1.4 |
Hyundai Motor Co. Series 2 (Korea (South), Automobiles) | 1.0 | 0.5 |
| 9.6 | |
Top Five Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 20.1 | 21.9 |
Information Technology | 12.5 | 12.5 |
Energy | 11.9 | 11.4 |
Industrials | 6.7 | 6.3 |
Materials | 6.6 | 7.8 |
Top Five Countries as of April 30, 2014 | ||
(excluding cash equivalents) | % of fund's | % of fund's net assets |
Korea (South) | 13.7 | 14.1 |
Brazil | 7.9 | 7.8 |
Cayman Islands | 6.5 | 6.8 |
Taiwan | 5.5 | 5.5 |
India | 5.2 | 5.3 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) | |||||||
As of April 30, 2014 | As of October 31, 2013 | ||||||
Stocks and |
| Stocks and |
| ||||
Bonds 27.3% |
| Bonds 22.2% |
| ||||
Short-Term |
| Short-Term |
|
Semiannual Report
Fidelity Total Emerging Markets Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 62.4% | |||
Shares | Value | ||
Argentina - 0.2% | |||
Grupo Financiero Galicia SA sponsored ADR | 9,370 | $ 126,120 | |
YPF SA Class D sponsored ADR | 770 | 21,914 | |
TOTAL ARGENTINA | 148,034 | ||
Austria - 0.5% | |||
C.A.T. oil AG (Bearer) | 10,431 | 218,519 | |
Erste Group Bank AG | 4,235 | 142,127 | |
TOTAL AUSTRIA | 360,646 | ||
Bailiwick of Jersey - 0.1% | |||
Atrium European Real Estate Ltd. | 14,541 | 83,720 | |
Bermuda - 1.4% | |||
Aquarius Platinum Ltd.: | |||
rights 5/14/14 (a) | 185,042 | 19,769 | |
(Australia) (a) | 92,521 | 33,092 | |
BW Offshore Ltd. | 134,844 | 176,032 | |
Cosan Ltd. Class A | 8,663 | 105,082 | |
Golar LNG Ltd. (NASDAQ) | 2,600 | 114,920 | |
GP Investments Ltd. Class A (depositary receipt) (a) | 76,222 | 126,481 | |
Shangri-La Asia Ltd. | 118,000 | 194,512 | |
Yue Yuen Industrial (Holdings) Ltd. | 76,500 | 236,320 | |
TOTAL BERMUDA | 1,006,208 | ||
Brazil - 3.2% | |||
Anhanguera Educacional Participacoes SA | 31,500 | 194,955 | |
BM&F BOVESPA SA | 41,200 | 210,642 | |
BR Properties SA | 21,980 | 175,564 | |
Cosan SA Industria e Comercio | 6,469 | 110,943 | |
Estacio Participacoes SA | 17,100 | 183,136 | |
Fibria Celulose SA (a) | 16,300 | 162,287 | |
Light SA | 9,864 | 78,744 | |
Localiza Rent A Car SA | 16,100 | 240,444 | |
Mills Estruturas e Servicos de Engenharia SA | 14,800 | 186,647 | |
Minerva SA (a) | 49,000 | 220,195 | |
Smiles SA | 12,400 | 234,959 | |
T4F Entretenimento SA (a) | 27,100 | 61,377 | |
Ultrapar Participacoes SA | 10,500 | 263,613 | |
TOTAL BRAZIL | 2,323,506 | ||
British Virgin Islands - 0.1% | |||
Luxoft Holding, Inc. | 3,300 | 89,067 | |
Common Stocks - continued | |||
Shares | Value | ||
Canada - 0.6% | |||
First Quantum Minerals Ltd. | 5,200 | $ 103,568 | |
Goldcorp, Inc. | 8,100 | 200,052 | |
Pan American Silver Corp. | 9,100 | 117,936 | |
Torex Gold Resources, Inc. (a) | 46,600 | 51,870 | |
TOTAL CANADA | 473,426 | ||
Cayman Islands - 5.5% | |||
58.com, Inc. ADR | 4,950 | 196,911 | |
Anta Sports Products Ltd. | 104,000 | 152,118 | |
Anton Oilfield Services Group | 102,000 | 67,492 | |
Bitauto Holdings Ltd. ADR (a) | 3,100 | 111,073 | |
Bloomage BioTechnology Corp. Ltd. | 17,500 | 47,063 | |
China Liansu Group Holdings Ltd. | 93,000 | 49,421 | |
Cimc Enric Holdings Ltd. | 94,000 | 136,036 | |
Eurasia Drilling Co. Ltd. GDR (Reg. S) | 12,434 | 306,498 | |
GCL-Poly Energy Holdings Ltd. (a) | 1,041,000 | 311,510 | |
Greatview Aseptic Pack Co. Ltd. | 353,000 | 215,362 | |
Haitian International Holdings Ltd. | 54,000 | 108,795 | |
Hengan International Group Co. Ltd. | 20,500 | 215,895 | |
Hilong Holding Ltd. | 260,000 | 135,484 | |
On-Bright Electronics, Inc. | 2,000 | 18,166 | |
Silergy Corp. | 6,000 | 49,726 | |
SINA Corp. (a) | 2,843 | 135,895 | |
Tencent Holdings Ltd. | 19,500 | 1,215,331 | |
Tingyi (Cayman Islands) Holding Corp. | 58,000 | 161,216 | |
Uni-President China Holdings Ltd. | 182,000 | 150,709 | |
Xueda Education Group sponsored ADR | 21,900 | 109,281 | |
Yingde Gases Group Co. Ltd. | 130,000 | 131,292 | |
TOTAL CAYMAN ISLANDS | 4,025,274 | ||
Chile - 1.1% | |||
Banco Santander Chile | 3,142,144 | 189,891 | |
Embotelladora Andina SA ADR | 1,700 | 32,844 | |
Empresa Nacional de Electricidad SA | 112,044 | 165,756 | |
Empresa Nacional de Telecomunicaciones SA (ENTEL) | 9,577 | 117,571 | |
Inversiones La Construccion SA | 11,137 | 146,551 | |
Vina Concha y Toro SA | 60,851 | 127,255 | |
TOTAL CHILE | 779,868 | ||
China - 4.7% | |||
Anhui Conch Cement Co. Ltd. (H Shares) | 42,500 | 157,875 | |
BBMG Corp. (H Shares) | 175,000 | 123,018 | |
China Communications Construction Co. Ltd. (H Shares) | 235,000 | 153,677 | |
Common Stocks - continued | |||
Shares | Value | ||
China - continued | |||
China Life Insurance Co. Ltd. (H Shares) | 135,600 | $ 352,771 | |
China Longyuan Power Grid Corp. Ltd. (H Shares) | 37,500 | 38,598 | |
China Pacific Insurance Group Co. Ltd. (H Shares) | 157,000 | 492,084 | |
China Petroleum & Chemical Corp. sponsored ADR (H Shares) | 1,700 | 151,079 | |
China Suntien Green Energy Corp. Ltd. (H Shares) | 267,000 | 90,229 | |
China Telecom Corp. Ltd. (H Shares) | 622,057 | 318,238 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 1,438,000 | 859,231 | |
Maanshan Iron & Steel Ltd. (H Shares) (a) | 558,000 | 116,596 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 197,900 | 260,873 | |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 32,560 | 240,852 | |
Sinopec Engineering Group Co. Ltd. (H Shares) (e) | 88,500 | 98,854 | |
TOTAL CHINA | 3,453,975 | ||
Colombia - 0.3% | |||
BanColombia SA sponsored ADR | 3,971 | 226,069 | |
Denmark - 1.0% | |||
Auriga Industries A/S Series B (a) | 3,681 | 136,156 | |
Vestas Wind Systems A/S (a) | 13,049 | 579,201 | |
TOTAL DENMARK | 715,357 | ||
France - 0.6% | |||
Technip SA | 3,829 | 430,816 | |
Hong Kong - 0.8% | |||
China Resources Power Holdings Co. Ltd. | 28,791 | 72,414 | |
China Unicom Ltd. | 186,200 | 285,451 | |
Far East Horizon Ltd. | 221,000 | 149,653 | |
Sinotruk Hong Kong Ltd. | 190,000 | 100,723 | |
TOTAL HONG KONG | 608,241 | ||
India - 5.2% | |||
Axis Bank Ltd. | 21,329 | 538,937 | |
Bharti Airtel Ltd. | 42,518 | 231,253 | |
Bharti Infratel Ltd. (a) | 88,869 | 317,742 | |
Coal India Ltd. | 26,915 | 130,235 | |
Eicher Motors Ltd. | 1,777 | 182,701 | |
Grasim Industries Ltd. | 3,629 | 160,313 | |
Hindalco Industries Ltd. | 53,254 | 118,578 | |
Indiabulls Real Estate Ltd. | 99,707 | 102,823 | |
ITC Ltd. | 71,786 | 405,556 | |
JK Cement Ltd. | 16,915 | 63,675 | |
Lupin Ltd. | 11,847 | 202,151 | |
Mundra Port and SEZ Ltd. | 73,373 | 228,945 | |
Common Stocks - continued | |||
Shares | Value | ||
India - continued | |||
Petronet LNG Ltd. | 98,003 | $ 235,279 | |
Phoenix Mills Ltd. (a) | 40,562 | 166,982 | |
Power Grid Corp. of India Ltd. | 83,004 | 145,599 | |
SREI Infrastructure Finance Ltd. | 313,747 | 174,261 | |
State Bank of India | 11,305 | 389,598 | |
TOTAL INDIA | 3,794,628 | ||
Indonesia - 1.6% | |||
PT AKR Corporindo Tbk | 246,200 | 101,576 | |
PT Bakrieland Development Tbk (a) | 19,207,200 | 83,065 | |
PT Bank Rakyat Indonesia Tbk | 361,900 | 309,892 | |
PT Bank Tabungan Negara Tbk | 1,117,700 | 111,659 | |
PT Kalbe Farma Tbk | 1,357,700 | 181,434 | |
PT Lippo Karawaci Tbk | 1,207,000 | 111,706 | |
PT Telkomunikasi Indonesia Tbk: | |||
Series B | 112,100 | 22,033 | |
sponsored ADR | 6,160 | 244,552 | |
TOTAL INDONESIA | 1,165,917 | ||
Israel - 0.2% | |||
Bezeq The Israeli Telecommunication Corp. Ltd. | 74,400 | 134,804 | |
Kenya - 0.2% | |||
Equity Bank Ltd. | 349,500 | 153,642 | |
Korea (South) - 11.9% | |||
AMOREPACIFIC Group, Inc. | 657 | 339,597 | |
Daewoo International Corp. | 13,656 | 479,170 | |
Daou Technology, Inc. | 5,880 | 81,959 | |
E-Mart Co. Ltd. | 1,535 | 350,654 | |
GS Retail Co. Ltd. | 7,940 | 220,577 | |
Hana Financial Group, Inc. | 14,920 | 524,966 | |
Hankook Shell Oil Co. Ltd. | 196 | 88,789 | |
Hyundai Industrial Development & Construction Co. | 6,250 | 178,770 | |
Hyundai Mobis | 1,248 | 356,365 | |
KB Financial Group, Inc. | 10,490 | 358,920 | |
Korea Electric Power Corp. | 6,357 | 243,106 | |
KEPCO Plant Service & Engineering Co. Ltd. | 2,367 | 153,966 | |
Korea Zinc Co. Ltd. | 449 | 147,986 | |
Korean Reinsurance Co. | 20,138 | 198,827 | |
KT&G Corp. | 3,246 | 260,158 | |
LG Chemical Ltd. | 1,314 | 334,510 | |
LG Corp. | 3,541 | 197,084 | |
Naver Corp. | 815 | 582,200 | |
Common Stocks - continued | |||
Shares | Value | ||
Korea (South) - continued | |||
Oci Co. Ltd. | 1,041 | $ 182,384 | |
Samsung C&T Corp. | 4,134 | 259,300 | |
Samsung Electronics Co. Ltd. | 1,766 | 2,295,740 | |
Seoul Semiconductor Co. Ltd. | 3,376 | 135,452 | |
Shinhan Financial Group Co. Ltd. | 11,720 | 511,659 | |
SK Hynix, Inc. (a) | 1,820 | 70,732 | |
SK Telecom Co. Ltd. sponsored ADR | 7,785 | 179,756 | |
TOTAL KOREA (SOUTH) | 8,732,627 | ||
Malaysia - 0.1% | |||
Petronas Dagangan Bhd | 10,000 | 92,874 | |
Mexico - 3.5% | |||
America Movil S.A.B. de CV Series L sponsored ADR | 20,043 | 402,463 | |
CEMEX S.A.B. de CV sponsored ADR | 20,108 | 254,165 | |
El Puerto de Liverpool S.A.B. de CV Class C | 18,400 | 189,489 | |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 3,350 | 304,080 | |
Gruma S.A.B. de CV Series B (a) | 19,000 | 167,856 | |
Grupo Comercial Chedraui S.A.B. de CV | 54,600 | 166,311 | |
Grupo Financiero Banorte S.A.B. de CV Series O | 58,700 | 389,142 | |
Grupo Televisa SA de CV (CPO) sponsored ADR | 17,400 | 570,894 | |
Macquarie Mexican (REIT) | 51,000 | 96,833 | |
TOTAL MEXICO | 2,541,233 | ||
Netherlands - 0.1% | |||
SBM Offshore NV (a) | 4,500 | 82,190 | |
Nigeria - 1.2% | |||
Guaranty Trust Bank PLC | 476,380 | 77,781 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 36,030 | 302,652 | |
Zenith Bank PLC | 3,761,199 | 531,461 | |
TOTAL NIGERIA | 911,894 | ||
Norway - 0.6% | |||
ElectroMagnetic GeoServices ASA (a) | 60,740 | 72,549 | |
Spectrum ASA | 7,281 | 57,569 | |
Statoil ASA | 4,200 | 128,039 | |
TGS Nopec Geophysical Co. ASA | 4,282 | 147,673 | |
TOTAL NORWAY | 405,830 | ||
Panama - 0.3% | |||
Copa Holdings SA Class A | 1,680 | 227,270 | |
Peru - 0.0% | |||
Alicorp SA Class C | 459 | 1,390 | |
Common Stocks - continued | |||
Shares | Value | ||
Philippines - 1.5% | |||
Alliance Global Group, Inc. | 323,600 | $ 226,139 | |
LT Group, Inc. | 381,500 | 156,623 | |
Metro Pacific Investments Corp. | 449,000 | 51,070 | |
Metropolitan Bank & Trust Co. | 147,334 | 279,959 | |
Robinsons Land Corp. | 804,400 | 402,426 | |
TOTAL PHILIPPINES | 1,116,217 | ||
Poland - 0.5% | |||
Cyfrowy Polsat SA | 23,500 | 159,505 | |
Powszechny Zaklad Ubezpieczen SA | 1,495 | 211,931 | |
TOTAL POLAND | 371,436 | ||
Portugal - 0.2% | |||
Banco Espirito Santo SA (Reg.) (a) | 62,800 | 111,172 | |
Puerto Rico - 0.1% | |||
Popular, Inc. (a) | 3,230 | 99,807 | |
Romania - 0.1% | |||
SNGN Romgaz SA GDR (e) | 6,769 | 73,105 | |
Russia - 1.6% | |||
Bashneft OJSC (a) | 813 | 48,376 | |
E.ON Russia JSC | 2,450,400 | 171,745 | |
Gazprom OAO sponsored: | |||
ADR | 18,332 | 132,357 | |
ADR (Reg. S) | 25,000 | 180,300 | |
LUKOIL Oil Co. sponsored ADR (United Kingdom) | 2,200 | 116,270 | |
Mobile TeleSystems OJSC | 27,726 | 201,184 | |
NOVATEK OAO GDR (Reg. S) | 1,400 | 144,620 | |
Sberbank (Savings Bank of the Russian Federation) | 84,050 | 171,049 | |
TOTAL RUSSIA | 1,165,901 | ||
Singapore - 0.9% | |||
Ezion Holdings Ltd. | 140,200 | 253,852 | |
First Resources Ltd. | 197,000 | 403,837 | |
TOTAL SINGAPORE | 657,689 | ||
South Africa - 3.4% | |||
Aspen Pharmacare Holdings Ltd. | 11,787 | 313,674 | |
Barclays Africa Group Ltd. | 11,602 | 169,831 | |
Bidvest Group Ltd. | 9,869 | 270,634 | |
Impala Platinum Holdings Ltd. (a) | 14,300 | 160,935 | |
JSE Ltd. | 10,950 | 100,440 | |
Life Healthcare Group Holdings Ltd. | 54,000 | 214,399 | |
Common Stocks - continued | |||
Shares | Value | ||
South Africa - continued | |||
MTN Group Ltd. (g) | 30,249 | $ 606,130 | |
Naspers Ltd. Class N | 7,000 | 660,045 | |
TOTAL SOUTH AFRICA | 2,496,088 | ||
Taiwan - 5.5% | |||
Cathay Financial Holding Co. Ltd. | 172,000 | 242,900 | |
Chipbond Technology Corp. | 44,000 | 75,265 | |
E.SUN Financial Holdings Co. Ltd. | 204,000 | 123,419 | |
E.SUN Financial Holdings Co. Ltd. rights 5/6/14 (a) | 18,582 | 2,002 | |
ECLAT Textile Co. Ltd. | 14,660 | 160,375 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 20,950 | 60,144 | |
King Slide Works Co. Ltd. | 300 | 3,908 | |
MediaTek, Inc. | 46,000 | 719,763 | |
Taiwan Fertilizer Co. Ltd. | 119,300 | 237,291 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 324,000 | 1,274,483 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 30,242 | 607,864 | |
Unified-President Enterprises Corp. | 169,739 | 287,536 | |
Universal Cement Corp. | 83,000 | 79,518 | |
Voltronic Power Technology Corp. | 1,000 | 6,514 | |
Yuanta Financial Holding Co. Ltd. | 297,300 | 148,327 | |
TOTAL TAIWAN | 4,029,309 | ||
Thailand - 1.0% | |||
Jasmine International Public Co. Ltd. | 462,800 | 118,703 | |
Kasikornbank PCL (For. Reg.) | 46,560 | 282,727 | |
Thai Union Frozen Products PCL (For. Reg.) | 117,900 | 255,037 | |
Total Access Communication PCL NVDR | 28,500 | 109,649 | |
TOTAL THAILAND | 766,116 | ||
Togo - 0.3% | |||
Ecobank Transnational, Inc. | 2,707,486 | 227,520 | |
Turkey - 0.9% | |||
Aygaz A/S | 4,650 | 19,159 | |
Tupras Turkiye Petrol Rafinelleri A/S | 14,000 | 314,935 | |
Turkiye Halk Bankasi A/S | 49,200 | 328,536 | |
TOTAL TURKEY | 662,630 | ||
United Arab Emirates - 0.2% | |||
First Gulf Bank PJSC | 23,177 | 109,482 | |
Common Stocks - continued | |||
Shares | Value | ||
United Kingdom - 0.1% | |||
John Wood Group PLC | 8 | $ 106 | |
Mondi PLC | 5,200 | 86,260 | |
TOTAL UNITED KINGDOM | 86,366 | ||
United States of America - 1.1% | |||
Cognizant Technology Solutions Corp. Class A (a) | 6,020 | 288,388 | |
Facebook, Inc. Class A (a) | 4,506 | 269,369 | |
InvenSense, Inc. (a) | 10,311 | 221,996 | |
TOTAL UNITED STATES OF AMERICA | 779,753 | ||
TOTAL COMMON STOCKS (Cost $38,477,937) |
| ||
Nonconvertible Preferred Stocks - 7.0% | |||
|
|
|
|
Brazil - 4.4% | |||
Ambev SA sponsored ADR | 27,400 | 198,650 | |
Banco do Estado Rio Grande do Sul SA | 38,320 | 214,994 | |
Braskem SA (PN-A) | 28,500 | 194,538 | |
Companhia Paranaense de Energia-Copel: | |||
(PN-B) | 415 | 5,947 | |
(PN-B) sponsored | 8,095 | 116,163 | |
Gerdau SA sponsored | 43,500 | 261,435 | |
Itau Unibanco Holding SA sponsored ADR | 45,520 | 744,707 | |
Petroleo Brasileiro SA - Petrobras: | |||
(PN) sponsored (non-vtg.) | 11,206 | 165,849 | |
sponsored ADR | 29,521 | 409,751 | |
Telefonica Brasil SA | 5,110 | 107,345 | |
TIM Participacoes SA sponsored ADR | 2,300 | 61,893 | |
Vale SA (PN-A) sponsored ADR | 62,300 | 739,501 | |
TOTAL BRAZIL | 3,220,773 | ||
Chile - 0.2% | |||
Embotelladora Andina SA Class A | 35,643 | 114,335 | |
Korea (South) - 1.8% | |||
Hyundai Motor Co. Series 2 | 5,326 | 747,527 | |
Samsung Electronics Co. Ltd. | 301 | 302,136 | |
Samsung Fire & Marine Insurance Co. Ltd. | 1,669 | 243,137 | |
TOTAL KOREA (SOUTH) | 1,292,800 | ||
Russia - 0.6% | |||
Bashneft OJSC (a) | 1,200 | 52,258 | |
Nonconvertible Preferred Stocks - continued | |||
Shares | Value | ||
Russia - continued | |||
Sberbank (Savings Bank of the Russian Federation) | 158,100 | $ 266,984 | |
Surgutneftegas | 213,550 | 148,661 | |
TOTAL RUSSIA | 467,903 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $5,120,455) |
|
Nonconvertible Bonds - 9.4% | ||||
| Principal Amount (c) |
| ||
Argentina - 0.1% | ||||
YPF SA 8.875% 12/19/18 (e) | $ 45,000 | 46,856 | ||
Canada - 0.6% | ||||
Pacific Rubiales Energy Corp. 7.25% 12/12/21 (e) | 400,000 | 437,000 | ||
Cayman Islands - 1.0% | ||||
Brazil Minas SPE 5.333% 2/15/28 (e) | 250,000 | 245,313 | ||
Odebrecht Finance Ltd. 7.5% (e)(f) | 475,000 | 486,875 | ||
TOTAL CAYMAN ISLANDS | 732,188 | |||
Costa Rica - 0.3% | ||||
Instituto Costarricense de Electricidad 6.95% 11/10/21 (e) | 200,000 | 209,500 | ||
Georgia - 0.4% | ||||
Georgia Bank Joint Stock Co. 7.75% 7/5/17 (e) | 300,000 | 319,500 | ||
Indonesia - 0.2% | ||||
PT Pertamina Persero 5.625% 5/20/43 (e) | 200,000 | 169,750 | ||
Kazakhstan - 1.1% | ||||
KazMunaiGaz Finance Sub BV 7% 5/5/20 (e) | 150,000 | 168,563 | ||
KazMunaiGaz National Co. 5.75% 4/30/43 (e) | 300,000 | 271,521 | ||
Zhaikmunai International BV 7.125% 11/13/19 (e) | 400,000 | 409,000 | ||
TOTAL KAZAKHSTAN | 849,084 | |||
Luxembourg - 0.3% | ||||
Millicom International Cellular SA 4.75% 5/22/20 (e) | 200,000 | 193,000 | ||
Mexico - 1.6% | ||||
America Movil S.A.B. de CV 6.45% 12/5/22 | MXN | 9,750,000 | 698,529 | |
Petroleos Mexicanos: | ||||
4.875% 1/18/24 | 275,000 | 284,556 | ||
6.375% 1/23/45 (e) | 175,000 | 192,185 | ||
TOTAL MEXICO | 1,175,270 | |||
Nonconvertible Bonds - continued | ||||
| Principal Amount (c) | Value | ||
Morocco - 0.3% | ||||
OCP SA 6.875% 4/25/44 (e) | $ 200,000 | $ 200,020 | ||
Netherlands - 0.4% | ||||
Indosat Palapa Co. BV 7.375% 7/29/20 (e) | 100,000 | 108,000 | ||
Mozambique Ematum Finance 2020 6.305% 9/11/20 (Reg. S) | 200,000 | 192,800 | ||
TOTAL NETHERLANDS | 300,800 | |||
Nigeria - 0.3% | ||||
Zenith Bank PLC 6.25% 4/22/19 (e) | 200,000 | 200,000 | ||
Paraguay - 0.3% | ||||
Banco Regl Saeca 8.125% 1/24/19 (e) | 200,000 | 214,250 | ||
Trinidad & Tobago - 0.3% | ||||
Petroleum Co. of Trinidad & Tobago Ltd. 9.75% 8/14/19 (e) | 150,000 | 189,750 | ||
Turkey - 0.5% | ||||
Arcelik A/S 5% 4/3/23 (e) | 200,000 | 187,900 | ||
Finansbank A/S 5.5% 5/11/16 (Reg. S) | 200,000 | 202,500 | ||
TOTAL TURKEY | 390,400 | |||
Venezuela - 1.7% | ||||
Petroleos de Venezuela SA: | ||||
5.5% 4/12/37 | 500,000 | 278,000 | ||
6% 11/15/26 (Reg. S) | 700,000 | 412,125 | ||
8.5% 11/2/17 (e) | 250,000 | 225,000 | ||
9% 11/17/21 (Reg. S) | 150,000 | 122,438 | ||
9.75% 5/17/35 (e) | 300,000 | 228,900 | ||
TOTAL VENEZUELA | 1,266,463 | |||
TOTAL NONCONVERTIBLE BONDS (Cost $6,909,931) |
| |||
Government Obligations - 18.0% | ||||
| ||||
Armenia - 0.6% | ||||
Republic of Armenia 6% 9/30/20 (e) | 400,000 | 409,500 | ||
Azerbaijan - 0.7% | ||||
Azerbaijan Rep 4.75% 3/18/24 (e) | 200,000 | 201,540 | ||
State Oil Co. of Azerbaijan Republic 4.75% 3/13/23 (Reg. S) | 325,000 | 313,381 | ||
TOTAL AZERBAIJAN | 514,921 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Barbados - 0.3% | ||||
Barbados Government 7% 8/4/22 (e) | $ 200,000 | $ 186,000 | ||
Belarus - 0.4% | ||||
Belarus Republic 8.75% 8/3/15 (Reg. S) | 325,000 | 326,359 | ||
Belize - 0.3% | ||||
Belize Government 5% 2/20/38 (d)(e) | 332,500 | 229,758 | ||
Bolivia - 0.3% | ||||
Plurinational State of Bolivia 4.875% 10/29/22 (e) | 200,000 | 199,250 | ||
Brazil - 0.3% | ||||
Brazilian Federative Republic 4.25% 1/7/25 | 250,000 | 248,125 | ||
Congo - 0.4% | ||||
Congo Republic 3.5% 6/30/29 (d) | 319,366 | 288,227 | ||
Costa Rica - 0.3% | ||||
Costa Rican Republic 7% 4/4/44 (e) | 200,000 | 199,000 | ||
Croatia - 0.3% | ||||
Croatia Republic 6% 1/26/24 (e) | 200,000 | 208,250 | ||
Dominican Republic - 0.5% | ||||
Dominican Republic: | ||||
5.875% 4/18/24 (e) | 150,000 | 149,250 | ||
7.45% 4/30/44 (e) | 200,000 | 201,471 | ||
TOTAL DOMINICAN REPUBLIC | 350,721 | |||
Ecuador - 0.6% | ||||
Ecuador Republic 9.375% 12/15/15 (e) | 386,000 | 412,538 | ||
El Salvador - 0.2% | ||||
El Salvador Republic 7.625% 2/1/41 (e) | 150,000 | 154,950 | ||
Ghana - 0.2% | ||||
Ghana Republic 7.875% 8/7/23 (Reg.S) | 200,000 | 185,000 | ||
Guatemala - 0.3% | ||||
Guatemalan Republic 4.875% 2/13/28 (e) | 200,000 | 194,000 | ||
Honduras - 0.3% | ||||
Republic of Honduras 7.5% 3/15/24 (e) | 200,000 | 198,500 | ||
Hungary - 1.3% | ||||
Hungarian Republic: | ||||
6.375% 3/29/21 | 508,000 | 565,150 | ||
7.625% 3/29/41 | 350,000 | 419,125 | ||
TOTAL HUNGARY | 984,275 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Indonesia - 0.6% | ||||
Indonesian Republic: | ||||
5.875% 1/15/24 (e) | $ 225,000 | $ 243,563 | ||
6.75% 1/15/44 (e) | 200,000 | 222,000 | ||
TOTAL INDONESIA | 465,563 | |||
Iraq - 0.6% | ||||
Republic of Iraq 5.8% 1/15/28 (Reg. S) | 500,000 | 446,250 | ||
Ivory Coast - 0.3% | ||||
Ivory Coast 7.7743% 12/31/32 (d) | 275,000 | 258,555 | ||
Jamaica - 0.2% | ||||
Jamaican Government 8% 6/24/19 | 150,000 | 157,875 | ||
Jordan - 0.4% | ||||
Jordanian Kingdom 3.875% 11/12/15 | 300,000 | 300,750 | ||
Lebanon - 0.4% | ||||
Lebanese Republic 11.625% 5/11/16 (Reg. S) | 250,000 | 286,250 | ||
Mongolia - 0.2% | ||||
Mongolian People's Republic 5.125% 12/5/22 (Reg. S) | 200,000 | 168,500 | ||
Morocco - 0.3% | ||||
Moroccan Kingdom 5.5% 12/11/42 (e) | 200,000 | 187,000 | ||
Namibia - 0.3% | ||||
Republic of Namibia 5.5% 11/3/21 (e) | 200,000 | 209,750 | ||
Netherlands - 0.4% | ||||
Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S) | 250,000 | 271,250 | ||
Pakistan - 0.3% | ||||
Islamic Republic of Pakistan 7.25% 4/15/19 (e) | 200,000 | 200,250 | ||
Panama - 0.2% | ||||
Panamanian Republic 4.3% 4/29/53 | 200,000 | 167,750 | ||
Peru - 0.4% | ||||
Peruvian Republic 8.75% 11/21/33 | 200,000 | 300,500 | ||
Philippines - 0.4% | ||||
Philippine Republic 10.625% 3/16/25 | 175,000 | 273,875 | ||
Romania - 0.6% | ||||
Romanian Republic: | ||||
6.125% 1/22/44 (e) | 200,000 | 219,250 | ||
6.75% 2/7/22 (e) | 190,000 | 224,913 | ||
TOTAL ROMANIA | 444,163 | |||
Government Obligations - continued | ||||
| Principal Amount (c) | Value | ||
Russia - 0.5% | ||||
Russian Federation 12.75% 6/24/28 (Reg. S) | $ 225,000 | $ 360,000 | ||
Senegal - 0.3% | ||||
Republic of Senegal 8.75% 5/13/21 (e) | 200,000 | 226,000 | ||
Serbia - 0.4% | ||||
Republic of Serbia 7.25% 9/28/21 (e) | 260,000 | 288,925 | ||
Slovenia - 0.6% | ||||
Republic of Slovenia: | ||||
4.75% 5/10/18 (e) | 200,000 | 211,750 | ||
5.85% 5/10/23 (e) | 200,000 | 217,500 | ||
TOTAL SLOVENIA | 429,250 | |||
Sri Lanka - 0.4% | ||||
Democratic Socialist Republic of Sri Lanka 6.25% 10/4/20 (e) | 300,000 | 311,625 | ||
Tanzania - 0.3% | ||||
United Republic of Tanzania 6.332% 3/9/20 (i) | 200,000 | 209,500 | ||
Turkey - 0.4% | ||||
Turkish Republic 11.875% 1/15/30 | 165,000 | 275,550 | ||
United States of America - 0.1% | ||||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.05% 5/8/14 to 6/19/14 (h) | 80,000 | 79,999 | ||
Venezuela - 1.6% | ||||
Venezuelan Republic: | ||||
7% 3/31/38 | 650,000 | 437,125 | ||
7.65% 4/21/25 | 600,000 | 444,000 | ||
8.25% 10/13/24 | 300,000 | 231,000 | ||
9% 5/7/23 (Reg. S) | 100,000 | 81,850 | ||
TOTAL VENEZUELA | 1,193,975 | |||
Vietnam - 0.3% | ||||
Vietnamese Socialist Republic 6.75% 1/29/20 (e) | 200,000 | 225,500 | ||
Zambia - 0.2% | ||||
Republic of Zambia 5.375% 9/20/22 (e) | 200,000 | 177,000 | ||
TOTAL GOVERNMENT OBLIGATIONS (Cost $12,770,155) |
|
Money Market Funds - 3.3% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 2,404,661 | $ 2,404,661 | |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $65,683,139) | 73,320,379 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (60,965) | ||
NET ASSETS - 100% | $ 73,259,414 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
Equity Index Contracts | |||||
11 NYSE E-mini MSCI Emerging Markets Index Contracts (United States) | June 2014 | $ 546,975 | $ (7,649) |
|
The face value of futures purchased as a percentage of net assets is 0.7% |
Currency Abbreviations | ||
MXN | - | Mexican peso |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Amount is stated in United States dollars unless otherwise noted. |
(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(e) 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 $10,983,875 or 15.0% of net assets. |
(f) Security is perpetual in nature with no stated maturity date. |
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $49,999. |
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
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 | $ 728 |
Fidelity Securities Lending Cash Central Fund | 14 |
Total | $ 742 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 4,210,858 | $ 4,210,858 | $ - | $ - |
Consumer Staples | 4,540,311 | 4,540,311 | - | - |
Energy | 5,268,258 | 5,039,585 | 128,039 | 100,634 |
Financials | 13,449,855 | 10,826,335 | 2,623,520 | - |
Health Care | 911,658 | 709,507 | 202,151 | - |
Industrials | 4,169,775 | 4,169,775 | - | - |
Information Technology | 9,113,170 | 7,838,687 | 1,274,483 | - |
Materials | 4,637,025 | 4,476,712 | 160,313 | - |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Telecommunication Services | $ 3,458,767 | $ 2,833,045 | $ 625,722 | $ - |
Utilities | 1,057,231 | 814,125 | 243,106 | - |
Corporate Bonds | 6,893,831 | - | 6,893,831 | - |
Government Obligations | 13,204,979 | - | 13,204,979 | - |
Money Market Funds | 2,404,661 | 2,404,661 | - | - |
Total Investments in Securities: | $ 73,320,379 | $ 47,863,601 | $ 25,356,144 | $ 100,634 |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $ (7,649) | $ (7,649) | $ - | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 1,836,662 |
Level 2 to Level 1 | $ 0 |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of April 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / | Value | |
| Asset | Liability |
Equity Risk | ||
Futures Contracts (a) | $ - | $ (7,649) |
Total Value of Derivatives | $ - | $ (7,649) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited): |
AAA,AA,A | 0.9% |
BBB | 7.7% |
BB | 7.5% |
B | 6.2% |
CCC,CC,C | 3.4% |
Not Rated | 1.6% |
Other Investments | 69.4% |
Short-Term Investments and Net Other Assets | 3.3% |
| 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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $63,278,478) | $ 70,915,718 |
|
Fidelity Central Funds (cost $2,404,661) | 2,404,661 |
|
Total Investments (cost $65,683,139) |
| $ 73,320,379 |
Cash |
| 115,817 |
Foreign currency held at value (cost $16,635) | 16,635 | |
Receivable for investments sold | 632,823 | |
Receivable for fund shares sold | 56,692 | |
Dividends receivable | 101,929 | |
Interest receivable | 354,516 | |
Distributions receivable from Fidelity Central Funds | 153 | |
Prepaid expenses | 50 | |
Receivable from investment adviser for expense reductions | 21,746 | |
Other receivables | 24,803 | |
Total assets | 74,645,543 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 959,693 | |
Delayed delivery | 38,966 | |
Payable for fund shares redeemed | 90,709 | |
Accrued management fee | 48,958 | |
Distribution and service plan fees payable | 12,137 | |
Payable for daily variation margin for derivative instruments | 1,485 | |
Other affiliated payables | 15,865 | |
Other payables and accrued expenses | 218,316 | |
Total liabilities | 1,386,129 | |
|
|
|
Net Assets | $ 73,259,414 | |
Net Assets consist of: |
| |
Paid in capital | $ 67,566,653 | |
Undistributed net investment income | 355,652 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (2,228,157) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 7,565,266 | |
Net Assets | $ 73,259,414 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.19 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.19) | $ 11.87 | |
Class T: | $ 11.19 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.19) | $ 11.60 | |
Class C: | $ 11.15 | |
|
|
|
Total Emerging Markets: | $ 11.22 | |
|
|
|
Institutional Class: | $ 11.21 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 559,290 |
Interest |
| 643,409 |
Income from Fidelity Central Funds |
| 742 |
Income before foreign taxes withheld |
| 1,203,441 |
Less foreign taxes withheld |
| (59,635) |
Total income |
| 1,143,806 |
|
|
|
Expenses | ||
Management fee | $ 316,060 | |
Transfer agent fees | 82,389 | |
Distribution and service plan fees | 73,539 | |
Accounting and security lending fees | 20,450 | |
Custodian fees and expenses | 167,027 | |
Independent trustees' compensation | 161 | |
Registration fees | 29,057 | |
Audit | 56,585 | |
Legal | 204 | |
Miscellaneous | 3,357 | |
Total expenses before reductions | 748,829 | |
Expense reductions | (122,257) | 626,572 |
Net investment income (loss) | 517,234 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 1,333,309 | |
Foreign currency transactions | (27,292) | |
Futures contracts | (17,786) | |
Total net realized gain (loss) |
| 1,288,231 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $56,761) | (2,168,530) | |
Assets and liabilities in foreign currencies | 689 | |
Futures contracts | 1,358 | |
Total change in net unrealized appreciation (depreciation) |
| (2,166,483) |
Net gain (loss) | (878,252) | |
Net increase (decrease) in net assets resulting from operations | $ (361,018) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Total Emerging Markets Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2014 | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 517,234 | $ 1,900,179 |
Net realized gain (loss) | 1,288,231 | (1,878,240) |
Change in net unrealized appreciation (depreciation) | (2,166,483) | 1,872,247 |
Net increase (decrease) in net assets resulting from operations | (361,018) | 1,894,186 |
Distributions to shareholders from net investment income | (1,381,318) | (1,561,667) |
Distributions to shareholders from net realized gain | - | (137,352) |
Total distributions | (1,381,318) | (1,699,019) |
Share transactions - net increase (decrease) | (12,572,643) | (15,755,086) |
Redemption fees | 20,754 | 87,191 |
Total increase (decrease) in net assets | (14,294,225) | (15,472,728) |
|
|
|
Net Assets | ||
Beginning of period | 87,553,639 | 103,026,367 |
End of period (including undistributed net investment income of $355,652 and undistributed net investment income of $1,219,736, respectively) | $ 73,259,414 | $ 87,553,639 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.37 | $ 10.86 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .07 | .18 | .20 |
Net realized and unrealized gain (loss) | (.07) | .48 H | .68 |
Total from investment operations | - | .66 | .88 |
Distributions from net investment income | (.18) | (.15) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.18) | (.16) | (.02) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.19 | $ 11.37 | $ 10.86 |
Total Return B,C,D | (.01)% | 6.23% | 8.80% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 1.97% A | 1.89% | 1.87% |
Expenses net of fee waivers, if any | 1.65% A | 1.65% | 1.65% |
Expenses net of all reductions | 1.65% A | 1.62% | 1.62% |
Net investment income (loss) | 1.25% A | 1.61% | 1.92% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 13,617 | $ 18,837 | $ 7,675 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.34 | $ 10.84 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .05 | .15 | .17 |
Net realized and unrealized gain (loss) | (.06) | .48 H | .68 |
Total from investment operations | (.01) | .63 | .85 |
Distributions from net investment income | (.14) | (.12) | (.01) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.14) | (.14) L | (.01) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.19 | $ 11.34 | $ 10.84 |
Total Return B,C,D | (.08)% | 5.93% | 8.56% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 2.30% A | 2.13% | 2.10% |
Expenses net of fee waivers, if any | 1.90% A | 1.90% | 1.90% |
Expenses net of all reductions | 1.90% A | 1.88% | 1.87% |
Net investment income (loss) | 1.00% A | 1.36% | 1.67% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 5,207 | $ 5,967 | $ 5,823 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
L Total distributions of $.14 per share is comprised of distributions from net investment income of $.124 and distributions from net realized gain of $.014 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 I |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.29 | $ 10.80 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) E | .03 | .09 | .12 |
Net realized and unrealized gain (loss) | (.06) | .47 H | .69 |
Total from investment operations | (.03) | .56 | .81 |
Distributions from net investment income | (.11) | (.07) | (.01) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.11) | (.08) | (.01) |
Redemption fees added to paid in capital E | - K | .01 | - K |
Net asset value, end of period | $ 11.15 | $ 11.29 | $ 10.80 |
Total Return B,C,D | (.30)% | 5.31% | 8.07% |
Ratios to Average Net Assets F,J |
|
|
|
Expenses before reductions | 2.72% A | 2.65% | 2.63% |
Expenses net of fee waivers, if any | 2.40% A | 2.40% | 2.40% |
Expenses net of all reductions | 2.40% A | 2.37% | 2.37% |
Net investment income (loss) | .50% A | .86% | 1.17% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 8,590 | $ 7,436 | $ 5,824 |
Portfolio turnover rate G | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
F 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
I For the period November 1, 2011 (commencement of operations) to October 31, 2012.
J 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
K Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Total Emerging Markets
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.40 | $ 10.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .08 | .21 | .22 |
Net realized and unrealized gain (loss) | (.06) | .47 G | .69 |
Total from investment operations | .02 | .68 | .91 |
Distributions from net investment income | (.20) | (.17) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.20) | (.18) | (.02) |
Redemption fees added to paid in capital D | - J | .01 | - J |
Net asset value, end of period | $ 11.22 | $ 11.40 | $ 10.89 |
Total Return B,C | .17% | 6.44% | 9.15% |
Ratios to Average Net Assets E,I |
|
|
|
Expenses before reductions | 1.70% A | 1.56% | 1.60% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.38% | 1.38% |
Net investment income (loss) | 1.50% A | 1.85% | 2.16% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 42,091 | $ 49,959 | $ 81,416 |
Portfolio turnover rate F | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2014 | Years ended October 31, | |
| (Unaudited) | 2013 | 2012 H |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period | $ 11.40 | $ 10.89 | $ 10.00 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D | .08 | .20 | .22 |
Net realized and unrealized gain (loss) | (.07) | .48 G | .69 |
Total from investment operations | .01 | .68 | .91 |
Distributions from net investment income | (.20) | (.17) | (.02) |
Distributions from net realized gain | - | (.01) | - |
Total distributions | (.20) | (.18) | (.02) |
Redemption fees added to paid in capital D | - J | .01 | - J |
Net asset value, end of period | $ 11.21 | $ 11.40 | $ 10.89 |
Total Return B,C | .12% | 6.44% | 9.15% |
Ratios to Average Net Assets E,I |
|
|
|
Expenses before reductions | 1.69% A | 1.63% | 1.62% |
Expenses net of fee waivers, if any | 1.40% A | 1.40% | 1.40% |
Expenses net of all reductions | 1.40% A | 1.37% | 1.37% |
Net investment income (loss) | 1.49% A | 1.86% | 2.17% |
Supplemental Data |
|
|
|
Net assets, end of period (000 omitted) | $ 3,755 | $ 5,354 | $ 2,287 |
Portfolio turnover rate F | 91% A | 120% | 70% |
A Annualized
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 Calculated based on average shares outstanding during the period.
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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
H For the period November 1, 2011 (commencement of operations) to October 31, 2012.
I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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.
J Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Total Emerging Markets Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Total Emerging Markets and Institutional Class 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. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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. In accordance with valuation policies and procedures
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 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. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 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 April 30, 2014, including information on transfers between Levels 1 and 2, 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
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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 futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 9,992,601 |
Gross unrealized depreciation | (2,644,222) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 7,348,379 |
|
|
Tax cost | $ 65,972,000 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration |
|
Short-term | $ (2,949,184) |
Semiannual Report
3. Significant Accounting Policies - continued
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 1.50% 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.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
During the period the Fund recognized net realized gain (loss) of $(17,786) and a change in net unrealized appreciation (depreciation) of $1,358 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,228,990 and $49,654,155, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .25% 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 .80% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 19,924 | $ 10,041 |
Class T | .25% | .25% | 14,022 | 8,155 |
Class C | .75% | .25% | 39,593 | 35,369 |
|
|
| $ 73,539 | $ 53,565 |
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, and Class C redemptions. The deferred sales charges range from 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,959 |
Class T | 800 |
Class C* | 917 |
| $ 3,676 |
* 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 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 A | $ 16,716 | .21 |
Class T | 8,307 | .30 |
Class C | 8,632 | .22 |
Total Emerging Markets | 44,033 | .20 |
Institutional Class | 4,701 | .19 |
| $ 82,389 |
|
* 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.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 $516 for the period.
7. 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 $76 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. 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. 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 $14. During the period, there were no securities loaned to FCM.
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through December 31, 2014. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
Class A | 1.65% | $ 25,128 |
Class T | 1.90% | 11,065 |
Class C | 2.40% | 12,428 |
Total Emerging Markets | 1.40% | 66,128 |
Institutional Class | 1.40% | 7,352 |
|
| $ 122,101 |
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $156.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended | Year ended |
From net investment income |
|
|
Class A | $ 298,475 | $ 104,565 |
Class T | 72,882 | 69,282 |
Class C | 71,691 | 35,970 |
Total Emerging Markets | 837,446 | 1,316,259 |
Institutional Class | 100,824 | 35,591 |
Total | $ 1,381,318 | $ 1,561,667 |
From net realized gain |
|
|
Class A | $ - | $ 10,027 |
Class T | - | 7,822 |
Class C | - | 7,516 |
Total Emerging Markets | - | 109,039 |
Institutional Class | - | 2,948 |
Total | $ - | $ 137,352 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended April 30, | Year ended | Six months ended April 30, | Year ended |
Class A |
|
|
|
|
Shares sold | 205,590 | 1,550,621 | $ 2,266,614 | $ 17,267,543 |
Reinvestment of distributions | 24,147 | 9,656 | 267,553 | 105,541 |
Shares redeemed | (670,399) | (609,546) | (7,319,781) | (6,666,165) |
Net increase (decrease) | (440,662) | 950,731 | $ (4,785,614) | $ 10,706,919 |
Class T |
|
|
|
|
Shares sold | 36,849 | 277,882 | $ 407,171 | $ 3,114,089 |
Reinvestment of distributions | 6,487 | 7,041 | 71,876 | 76,883 |
Shares redeemed | (104,259) | (295,695) | (1,136,301) | (3,268,261) |
Net increase (decrease) | (60,923) | (10,772) | $ (657,254) | $ (77,289) |
Class C |
|
|
|
|
Shares sold | 158,417 | 431,831 | $ 1,732,158 | $ 4,824,945 |
Reinvestment of distributions | 6,236 | 3,973 | 69,031 | 43,420 |
Shares redeemed | (52,735) | (316,804) | (574,763) | (3,521,280) |
Net increase (decrease) | 111,918 | 119,000 | $ 1,226,426 | $ 1,347,085 |
Total Emerging Markets |
|
|
|
|
Shares sold | 476,556 | 5,085,608 | $ 5,271,798 | $ 57,439,168 |
Reinvestment of distributions | 69,851 | 113,766 | 774,644 | 1,243,462 |
Shares redeemed | (1,177,597) | (8,294,710) | (12,948,433) | (89,232,029) |
Net increase (decrease) | (631,190) | (3,095,336) | $ (6,901,991) | $ (30,549,399) |
Institutional Class |
|
|
|
|
Shares sold | 99,056 | 491,268 | $ 1,096,301 | $ 5,357,985 |
Reinvestment of distributions | 8,910 | 3,526 | 98,814 | 38,539 |
Shares redeemed | (242,879) | (235,091) | (2,649,325) | (2,578,926) |
Net increase (decrease) | (134,913) | 259,703 | $ (1,454,210) | $ 2,817,598 |
12. 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
Semiannual Report
Fidelity Total Emerging Markets Fund
Notes to Financial Statements (Unaudited) - continued
12. Other - continued
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, the investment adviser or its affiliates were the owners of record of 33% of the total outstanding shares of the Fund.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investment Advisors (UK) Limited
FIL Investments (Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
(Fidelity Investment logo)(registered trademark)
ATEKI-USAN-0614 1.931263.102
Fidelity's
Targeted International Equity
Funds®
Fidelity® Canada Fund
Fidelity China Region Fund
Fidelity Emerging Asia Fund
Fidelity Emerging Markets Fund
Fidelity Europe Fund
Fidelity Japan Fund
Fidelity Japan Smaller Companies Fund
Fidelity Latin America Fund
Fidelity Nordic Fund
Fidelity Pacific Basin Fund
Semiannual Report
April 30, 2014
(Fidelity Cover Art)
Contents
Fidelity® Canada Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity China Region Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Emerging Asia Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Emerging Markets Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Europe Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Japan Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Japan Smaller Companies Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Latin America Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Nordic Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Fidelity Pacific Basin Fund | Shareholder Expense Example | |
| Investment Changes | |
| Investments | |
| Financial Statements | |
| Notes to Financial Statements | |
Distributions |
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 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.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Fidelity Canada Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,056.20 | $ 6.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.46 |
Class T | 1.59% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,054.80 | $ 8.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.91 | $ 7.95 |
Class B | 2.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.00 | $ 10.58 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.48 | $ 10.39 |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,052.40 | $ 10.33 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.73 | $ 10.14 |
Canada | .98% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,057.80 | $ 5.00 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.93 | $ 4.91 |
Institutional Class | .97% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,058.00 | $ 4.95 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.98 | $ 4.86 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Canada Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Canada | 95.2% |
| |
United States of America* | 4.8% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Canada | 92.8% |
| |
United States of America* | 7.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 96.9 | 99.0 |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1 | 1.0 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Royal Bank of Canada (Banks) | 7.9 | 7.8 |
The Toronto-Dominion Bank (Banks) | 7.8 | 7.4 |
Suncor Energy, Inc. (Oil, Gas & Consumable Fuels) | 4.1 | 4.1 |
Valeant Pharmaceuticals International (Canada) (Pharmaceuticals) | 3.9 | 4.4 |
Bank of Nova Scotia (Banks) | 3.9 | 4.9 |
Canadian National Railway Co. (Road & Rail) | 3.8 | 3.3 |
Canadian Natural Resources Ltd. (Oil, Gas & Consumable Fuels) | 3.7 | 2.0 |
Magna International, Inc. Class A (sub. vtg.) (Auto Components) | 3.0 | 2.6 |
Manulife Financial Corp. (Insurance) | 2.9 | 4.0 |
Enbridge, Inc. (Oil, Gas & Consumable Fuels) | 2.7 | 2.4 |
| 43.7 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 33.1 | 36.2 |
Energy | 25.0 | 18.4 |
Consumer Discretionary | 8.3 | 9.6 |
Industrials | 7.8 | 6.2 |
Materials | 7.6 | 5.9 |
Health Care | 4.5 | 7.0 |
Telecommunication Services | 4.2 | 4.2 |
Consumer Staples | 3.6 | 5.9 |
Information Technology | 2.8 | 5.6 |
Semiannual Report
Fidelity Canada Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 8.3% | |||
Auto Components - 3.0% | |||
Magna International, Inc. Class A (sub. vtg.) | 710,000 | $ 69,558,688 | |
Hotels, Restaurants & Leisure - 0.7% | |||
Starbucks Corp. | 150,000 | 10,593,000 | |
Tim Hortons, Inc. (Canada) | 110,300 | 6,050,122 | |
| 16,643,122 | ||
Household Durables - 0.1% | |||
Brookfield Residential Properties, Inc. (a) | 150,000 | 2,941,500 | |
Media - 1.4% | |||
CBS Corp. Class B | 90,000 | 5,198,400 | |
Cineplex, Inc. | 350,000 | 13,191,460 | |
Corus Entertainment, Inc. Class B (non-vtg.) | 250,000 | 5,615,620 | |
Quebecor, Inc. Class B (sub. vtg.) | 400,000 | 9,433,876 | |
| 33,439,356 | ||
Multiline Retail - 1.7% | |||
Canadian Tire Ltd. Class A (non-vtg.) | 130,000 | 12,768,122 | |
Dollarama, Inc. | 323,467 | 26,903,199 | |
| 39,671,321 | ||
Specialty Retail - 0.3% | |||
AutoCanada, Inc. | 100,000 | 6,386,570 | |
Textiles, Apparel & Luxury Goods - 1.1% | |||
Gildan Activewear, Inc. | 520,195 | 26,592,332 | |
TOTAL CONSUMER DISCRETIONARY | 195,232,889 | ||
CONSUMER STAPLES - 3.6% | |||
Food & Staples Retailing - 3.6% | |||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 1,995,600 | 56,242,036 | |
CVS Caremark Corp. | 100,000 | 7,272,000 | |
Jean Coutu Group, Inc. Class A (sub. vtg.) | 360,000 | 7,255,508 | |
Metro, Inc. Class A (sub. vtg.) | 229,165 | 14,125,621 | |
| 84,895,165 | ||
ENERGY - 25.0% | |||
Energy Equipment & Services - 0.7% | |||
Calfrac Well Services Ltd. (d) | 100,000 | 3,462,433 | |
Pason Systems, Inc. | 50,000 | 1,388,623 | |
Precision Drilling Corp. | 550,000 | 7,150,677 | |
Secure Energy Services, Inc. | 100,000 | 1,793,714 | |
ShawCor Ltd. Class A | 50,000 | 2,227,088 | |
| 16,022,535 | ||
Oil, Gas & Consumable Fuels - 24.3% | |||
ARC Resources Ltd. (d) | 700,000 | 20,769,126 | |
Canadian Natural Resources Ltd. | 2,150,000 | 87,604,580 | |
Cenovus Energy, Inc. | 1,050,000 | 31,278,226 | |
Crescent Point Energy Corp. (d) | 633,400 | 25,768,264 | |
Enbridge, Inc. | 1,287,800 | 62,142,915 | |
| |||
Shares | Value | ||
Encana Corp. | 800,000 | $ 18,532,001 | |
Enerplus Corp. | 150,000 | 3,326,947 | |
Imperial Oil Ltd. | 550,000 | 26,856,439 | |
Inter Pipeline Ltd. | 100,000 | 2,718,854 | |
Keyera Corp. | 302,302 | 20,106,579 | |
Painted Pony Petroleum Ltd. (a) | 50,000 | 516,400 | |
Painted Pony Petroleum Ltd. (a)(e) | 113,000 | 1,167,064 | |
Pembina Pipeline Corp. (d) | 450,000 | 17,683,044 | |
Peyto Exploration & Development Corp. | 600,000 | 22,121,254 | |
Suncor Energy, Inc. | 2,517,600 | 97,116,124 | |
Talisman Energy, Inc. | 500,000 | 5,168,560 | |
Tourmaline Oil Corp. (a) | 550,000 | 28,477,259 | |
Tourmaline Oil Corp. (a)(e) | 80,000 | 4,142,147 | |
TransCanada Corp. | 1,060,000 | 49,399,936 | |
Trilogy Energy Corp. (d) | 100,000 | 2,737,101 | |
Veresen, Inc. | 500,000 | 7,394,736 | |
Vermilion Energy, Inc. (d) | 400,000 | 26,615,574 | |
Whitecap Resources, Inc. | 550,000 | 7,256,056 | |
| 568,899,186 | ||
TOTAL ENERGY | 584,921,721 | ||
FINANCIALS - 33.1% | |||
Banks - 23.4% | |||
Bank of Montreal (d) | 900,000 | 62,036,403 | |
Bank of Nova Scotia | 1,500,000 | 91,145,477 | |
Canadian Imperial Bank of Commerce (d) | 204,600 | 18,241,423 | |
National Bank of Canada | 200,000 | 8,300,716 | |
Royal Bank of Canada (d) | 2,780,000 | 185,536,249 | |
The Toronto-Dominion Bank | 3,807,600 | 183,180,282 | |
| 548,440,550 | ||
Capital Markets - 0.4% | |||
CI Financial Corp. | 300,000 | 9,744,081 | |
Diversified Financial Services - 1.0% | |||
Element Financial Corp. (a) | 300,000 | 3,593,814 | |
Onex Corp. (sub. vtg.) | 350,000 | 19,989,964 | |
| 23,583,778 | ||
Insurance - 5.7% | |||
Industrial Alliance Insurance and Financial Services, Inc. | 100,000 | 4,128,461 | |
Intact Financial Corp. | 210,925 | 13,849,982 | |
Manulife Financial Corp. | 3,600,000 | 67,595,456 | |
Sun Life Financial, Inc. (d) | 1,400,000 | 47,388,349 | |
| 132,962,248 | ||
Real Estate Management & Development - 2.6% | |||
Brookfield Asset Management, Inc. Class A | 1,450,000 | 60,868,117 | |
TOTAL FINANCIALS | 775,598,774 | ||
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - 4.5% | |||
Biotechnology - 0.3% | |||
Amgen, Inc. | 60,000 | $ 6,705,000 | |
Health Care Providers & Services - 0.3% | |||
Catamaran Corp. (a) | 156,468 | 5,944,371 | |
Pharmaceuticals - 3.9% | |||
Valeant Pharmaceuticals International (Canada) (a) | 691,471 | 92,467,410 | |
TOTAL HEALTH CARE | 105,116,781 | ||
INDUSTRIALS - 7.8% | |||
Aerospace & Defense - 0.1% | |||
MacDonald Dettwiler & Associates Ltd. | 50,000 | 3,877,560 | |
Airlines - 0.5% | |||
Air Canada Class A (a) | 792,000 | 5,527,850 | |
Delta Air Lines, Inc. | 200,000 | 7,366,000 | |
| 12,893,850 | ||
Machinery - 0.2% | |||
ATS Automation Tooling System, Inc. (a) | 300,000 | 3,886,684 | |
Professional Services - 1.1% | |||
Stantec, Inc. | 430,000 | 25,484,969 | |
Road & Rail - 5.9% | |||
Canadian National Railway Co. | 1,500,000 | 87,860,955 | |
Canadian Pacific Railway Ltd. | 320,000 | 49,965,604 | |
| 137,826,559 | ||
TOTAL INDUSTRIALS | 183,969,622 | ||
INFORMATION TECHNOLOGY - 2.8% | |||
Electronic Equipment & Components - 0.2% | |||
Avigilon Corp. (a) | 140,000 | 3,296,747 | |
Internet Software & Services - 0.0% | |||
Halogen Software, Inc. | 89,500 | 775,740 | |
IT Services - 1.1% | |||
CGI Group, Inc. Class A (sub. vtg.) (a) | 550,800 | 19,860,057 | |
Davis + Henderson Corp. | 180,000 | 5,212,536 | |
| 25,072,593 | ||
Software - 1.5% | |||
Constellation Software, Inc. | 66,600 | 14,750,376 | |
Open Text Corp. | 315,814 | 15,573,876 | |
salesforce.com, Inc. (a) | 100,000 | 5,165,000 | |
| 35,489,252 | ||
TOTAL INFORMATION TECHNOLOGY | 64,634,332 | ||
| |||
Shares | Value | ||
MATERIALS - 7.6% | |||
Chemicals - 1.7% | |||
Methanex Corp. | 350,000 | $ 21,679,212 | |
Potash Corp. of Saskatchewan, Inc. | 500,000 | 18,073,993 | |
| 39,753,205 | ||
Containers & Packaging - 0.9% | |||
CCL Industries, Inc. Class B | 150,000 | 13,638,976 | |
Winpak Ltd. | 290,000 | 7,307,878 | |
| 20,946,854 | ||
Metals & Mining - 4.5% | |||
Agnico Eagle Mines Ltd. (Canada) | 316,000 | 9,332,530 | |
Barrick Gold Corp. | 900,000 | 15,708,225 | |
Eldorado Gold Corp. | 900,000 | 5,485,151 | |
First Quantum Minerals Ltd. | 360,000 | 7,170,111 | |
Franco-Nevada Corp. | 400,000 | 19,280,142 | |
Goldcorp, Inc. | 1,600,000 | 39,516,445 | |
Silver Wheaton Corp. | 400,000 | 8,871,858 | |
| 105,364,462 | ||
Paper & Forest Products - 0.5% | |||
Stella-Jones, Inc. | 150,000 | 4,100,178 | |
West Fraser Timber Co. Ltd. | 200,000 | 8,941,198 | |
| 13,041,376 | ||
TOTAL MATERIALS | 179,105,897 | ||
TELECOMMUNICATION SERVICES - 4.2% | |||
Diversified Telecommunication Services - 3.4% | |||
BCE, Inc. (d) | 1,000,000 | 44,523,516 | |
TELUS Corp. | 1,000,000 | 35,235,619 | |
| 79,759,135 | ||
Wireless Telecommunication Services - 0.8% | |||
Rogers Communications, Inc. Class B (non-vtg.) (d) | 450,000 | 17,871,904 | |
TOTAL TELECOMMUNICATION SERVICES | 97,631,039 | ||
TOTAL COMMON STOCKS (Cost $1,638,733,342) |
| ||
Money Market Funds - 11.5% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 60,396,152 | $ 60,396,152 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 209,524,852 | 209,524,852 | |
TOTAL MONEY MARKET FUNDS (Cost $269,921,004) |
| ||
TOTAL INVESTMENT PORTFOLIO - 108.4% (Cost $1,908,654,346) | 2,541,027,224 | ||
NET OTHER ASSETS (LIABILITIES) - (8.4)% | (196,398,728) | ||
NET ASSETS - 100% | $ 2,344,628,496 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $5,309,211 or 0.2% of net assets. |
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 | $ 25,533 |
Fidelity Securities Lending Cash Central Fund | 1,026,490 |
Total | $ 1,052,023 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Canada Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $200,148,612) - See accompanying schedule: Unaffiliated issuers (cost $1,638,733,342) | $ 2,271,106,220 |
|
Fidelity Central Funds (cost $269,921,004) | 269,921,004 |
|
Total Investments (cost $1,908,654,346) |
| $ 2,541,027,224 |
Foreign currency held at value (cost $1,802,837) | 1,802,057 | |
Receivable for investments sold | 48,189,258 | |
Receivable for fund shares sold | 907,035 | |
Dividends receivable | 2,868,443 | |
Distributions receivable from Fidelity Central Funds | 311,697 | |
Prepaid expenses | 1,011 | |
Other receivables | 3,374 | |
Total assets | 2,595,110,099 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 34,167,399 | |
Payable for fund shares redeemed | 4,836,586 | |
Accrued management fee | 1,352,731 | |
Distribution and service plan fees payable | 70,091 | |
Other affiliated payables | 488,254 | |
Other payables and accrued expenses | 41,690 | |
Collateral on securities loaned, at value | 209,524,852 | |
Total liabilities | 250,481,603 | |
|
|
|
Net Assets | $ 2,344,628,496 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,643,611,700 | |
Undistributed net investment income | 8,743,716 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 59,851,546 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 632,421,534 | |
Net Assets | $ 2,344,628,496 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 60.16 | |
|
|
|
Maximum offering price per share (100/94.25 of $60.16) | $ 63.83 | |
Class T: | $ 59.93 | |
|
|
|
Maximum offering price per share (100/96.50 of $59.93) | $ 62.10 | |
Class B: | $ 59.13 | |
|
|
|
Class C: | $ 58.88 | |
|
|
|
Canada: | $ 60.46 | |
|
|
|
Institutional Class: | $ 60.33 |
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.
Semiannual Report
Fidelity Canada Fund
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 27,872,620 |
Income from Fidelity Central Funds |
| 1,052,023 |
Income before foreign taxes withheld |
| 28,924,643 |
Less foreign taxes withheld |
| (4,127,727) |
Total income |
| 24,796,916 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 8,297,977 | |
Performance adjustment | 305,908 | |
Transfer agent fees | 2,458,021 | |
Distribution and service plan fees | 442,161 | |
Accounting and security lending fees | 523,863 | |
Custodian fees and expenses | 17,681 | |
Independent trustees' compensation | 4,748 | |
Registration fees | 70,986 | |
Audit | 37,859 | |
Legal | 6,040 | |
Interest | 305 | |
Miscellaneous | 8,647 | |
Total expenses before reductions | 12,174,196 | |
Expense reductions | (18,668) | 12,155,528 |
Net investment income (loss) | 12,641,388 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 83,205,656 | |
Foreign currency transactions | (276,399) | |
Total net realized gain (loss) |
| 82,929,257 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 35,051,742 | |
Assets and liabilities in foreign currencies | 103,833 | |
Total change in net unrealized appreciation (depreciation) |
| 35,155,575 |
Net gain (loss) | 118,084,832 | |
Net increase (decrease) in net assets resulting from operations | $ 130,726,220 |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 12,641,388 | $ 38,579,360 |
Net realized gain (loss) | 82,929,257 | 314,796,773 |
Change in net unrealized appreciation (depreciation) | 35,155,575 | (148,474,588) |
Net increase (decrease) in net assets resulting from operations | 130,726,220 | 204,901,545 |
Distributions to shareholders from net investment income | (9,338,915) | (43,693,415) |
Distributions to shareholders from net realized gain | (13,503,099) | - |
Total distributions | (22,842,014) | (43,693,415) |
Share transactions - net increase (decrease) | (250,705,047) | (991,330,828) |
Redemption fees | 49,142 | 153,637 |
Total increase (decrease) in net assets | (142,771,699) | (829,969,061) |
|
|
|
Net Assets | ||
Beginning of period | 2,487,400,195 | 3,317,369,256 |
End of period (including undistributed net investment income of $8,743,716 and undistributed net investment income of $5,441,243, respectively) | $ 2,344,628,496 | $ 2,487,400,195 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.31 | $ 53.65 | $ 52.20 | $ 53.81 | $ 44.24 | $ 38.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .23 | .60 | .57 | .34 | .31 | .38 |
Net realized and unrealized gain (loss) | 2.97 | 3.63 | 1.50 | (1.17) | 9.64 | 5.72 |
Total from investment operations | 3.20 | 4.23 | 2.07 | (.83) | 9.95 | 6.10 |
Distributions from net investment income | (.03) | (.57) | (.33) | (.35) | (.39) | (.07) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.35) | (.57) | (.62) | (.79) | (.39) | (.07) |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 60.16 | $ 57.31 | $ 53.65 | $ 52.20 | $ 53.81 | $ 44.24 |
Total Return B, C, D | 5.62% | 7.98% | 4.04% | (1.64)% | 22.62% | 16.08% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.29% A | 1.19% | 1.08% | 1.12% | 1.24% | 1.42% |
Expenses net of fee waivers, if any | 1.29% A | 1.19% | 1.08% | 1.12% | 1.24% | 1.42% |
Expenses net of all reductions | 1.29% A | 1.18% | 1.08% | 1.12% | 1.18% | 1.39% |
Net investment income (loss) | .80% A | 1.11% | 1.11% | .59% | .63% | .98% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 101,383 | $ 116,661 | $ 159,597 | $ 215,369 | $ 170,446 | $ 83,015 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.14 | $ 53.48 | $ 52.01 | $ 53.64 | $ 44.11 | $ 38.10 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .15 | .45 | .43 | .17 | .18 | .27 |
Net realized and unrealized gain (loss) | 2.96 | 3.63 | 1.49 | (1.16) | 9.60 | 5.73 |
Total from investment operations | 3.11 | 4.08 | 1.92 | (.99) | 9.78 | 6.00 |
Distributions from net investment income | - | (.42) | (.16) | (.21) | (.26) | - |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.32) | (.42) | (.45) | (.65) | (.26) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 59.93 | $ 57.14 | $ 53.48 | $ 52.01 | $ 53.64 | $ 44.11 |
Total Return B, C, D | 5.48% | 7.69% | 3.74% | (1.93)% | 22.27% | 15.77% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.59% A | 1.47% | 1.36% | 1.42% | 1.51% | 1.70% |
Expenses net of fee waivers, if any | 1.59% A | 1.47% | 1.36% | 1.42% | 1.51% | 1.70% |
Expenses net of all reductions | 1.59% A | 1.46% | 1.36% | 1.42% | 1.46% | 1.67% |
Net investment income (loss) | .50% A | .83% | .83% | .30% | .36% | .71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 22,123 | $ 23,751 | $ 29,626 | $ 34,323 | $ 31,522 | $ 17,727 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 56.53 | $ 52.89 | $ 51.37 | $ 53.03 | $ 43.68 | $ 37.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | - I | .18 | .17 | (.11) | (.07) | .08 |
Net realized and unrealized gain (loss) | 2.92 | 3.60 | 1.49 | (1.14) | 9.50 | 5.68 |
Total from investment operations | 2.92 | 3.78 | 1.66 | (1.25) | 9.43 | 5.76 |
Distributions from net investment income | - | (.14) | - | (.01) | (.09) | - |
Distributions from net realized gain | (.32) | - | (.14) | (.41) | - | - |
Total distributions | (.32) | (.14) | (.14) | (.42) | (.09) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 59.13 | $ 56.53 | $ 52.89 | $ 51.37 | $ 53.03 | $ 43.68 |
Total Return B, C, D | 5.20% | 7.17% | 3.25% | (2.41)% | 21.64% | 15.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.08% A | 1.96% | 1.85% | 1.91% | 2.01% | 2.19% |
Expenses net of fee waivers, if any | 2.08% A | 1.96% | 1.85% | 1.91% | 2.01% | 2.19% |
Expenses net of all reductions | 2.08% A | 1.95% | 1.85% | 1.91% | 1.96% | 2.16% |
Net investment income (loss) | .01% A | .34% | .34% | (.20)% | (.14)% | .21% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,076 | $ 7,737 | $ 9,804 | $ 11,866 | $ 13,464 | $ 7,283 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 56.27 | $ 52.61 | $ 51.19 | $ 52.87 | $ 43.60 | $ 37.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | .02 | .20 | .19 | (.08) | (.06) | .09 |
Net realized and unrealized gain (loss) | 2.91 | 3.58 | 1.46 | (1.14) | 9.48 | 5.66 |
Total from investment operations | 2.93 | 3.78 | 1.65 | (1.22) | 9.42 | 5.75 |
Distributions from net investment income | - | (.12) | - | (.03) | (.16) | - |
Distributions from net realized gain | (.32) | - | (.23) | (.44) | - | - |
Total distributions | (.32) | (.12) | (.23) | (.47) | (.16) | - |
Redemption fees added to paid in capital E | - I | - I | - I | .01 | .01 | .01 |
Net asset value, end of period | $ 58.88 | $ 56.27 | $ 52.61 | $ 51.19 | $ 52.87 | $ 43.60 |
Total Return B, C, D | 5.24% | 7.21% | 3.26% | (2.36)% | 21.68% | 15.22% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.03% A | 1.93% | 1.82% | 1.86% | 1.99% | 2.18% |
Expenses net of fee waivers, if any | 2.03% A | 1.92% | 1.82% | 1.86% | 1.99% | 2.18% |
Expenses net of all reductions | 2.03% A | 1.92% | 1.82% | 1.86% | 1.94% | 2.15% |
Net investment income (loss) | .06% A | .37% | .37% | (.15)% | (.12)% | .22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 41,318 | $ 46,040 | $ 66,500 | $ 87,990 | $ 54,052 | $ 24,848 |
Portfolio turnover rate G | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Canada
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.72 | $ 54.05 | $ 52.59 | $ 54.14 | $ 44.46 | $ 38.37 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 | .77 | .73 | .52 | .46 | .48 |
Net realized and unrealized gain (loss) | 2.98 | 3.66 | 1.51 | (1.18) | 9.68 | 5.74 |
Total from investment operations | 3.30 | 4.43 | 2.24 | (.66) | 10.14 | 6.22 |
Distributions from net investment income | (.24) | (.76) | (.49) | (.46) | (.47) | (.14) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.56) | (.76) | (.78) | (.90) | (.47) | (.14) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 60.46 | $ 57.72 | $ 54.05 | $ 52.59 | $ 54.14 | $ 44.46 |
Total Return B, C | 5.78% | 8.32% | 4.36% | (1.33)% | 22.97% | 16.40% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .87% | .77% | .82% | .94% | 1.17% |
Expenses net of fee waivers, if any | .98% A | .87% | .77% | .82% | .94% | 1.17% |
Expenses net of all reductions | .98% A | .86% | .77% | .82% | .89% | 1.13% |
Net investment income (loss) | 1.11% A | 1.42% | 1.42% | .90% | .93% | 1.24% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,141,979 | $ 2,262,380 | $ 2,992,597 | $ 3,778,765 | $ 3,953,693 | $ 3,149,791 |
Portfolio turnover rate F | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 57.57 | $ 53.91 | $ 52.44 | $ 54.02 | $ 44.39 | $ 38.31 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .32 | .78 | .74 | .51 | .46 | .49 |
Net realized and unrealized gain (loss) | 2.98 | 3.64 | 1.50 | (1.18) | 9.65 | 5.72 |
Total from investment operations | 3.30 | 4.42 | 2.24 | (.67) | 10.11 | 6.21 |
Distributions from net investment income | (.22) | (.76) | (.48) | (.48) | (.49) | (.14) |
Distributions from net realized gain | (.32) | - | (.29) | (.44) | - | - |
Total distributions | (.54) | (.76) | (.77) | (.92) | (.49) | (.14) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 60.33 | $ 57.57 | $ 53.91 | $ 52.44 | $ 54.02 | $ 44.39 |
Total Return B, C | 5.80% | 8.34% | 4.38% | (1.35)% | 22.94% | 16.40% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .98% A | .86% | .76% | .82% | .95% | 1.17% |
Expenses net of fee waivers, if any | .97% A | .86% | .76% | .82% | .95% | 1.17% |
Expenses net of all reductions | .97% A | .85% | .76% | .82% | .90% | 1.14% |
Net investment income (loss) | 1.12% A | 1.43% | 1.42% | .89% | .92% | 1.23% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 30,749 | $ 30,831 | $ 59,245 | $ 68,112 | $ 46,737 | $ 17,956 |
Portfolio turnover rate F | 55% A | 64% | 86% | 104% | 143% | 123% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Canada Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Canada and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 650,787,111 |
Gross unrealized depreciation | (32,323,414) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 618,463,697 |
|
|
Tax cost | $ 1,922,563,527 |
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 1.50% 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $631,265,482 and $941,439,361, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Canada as compared to its benchmark index, the S&P/TSX Composite Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .73% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 134,890 | $ 1,959 |
Class T | .25% | .25% | 56,534 | 1,370 |
Class B | .75% | .25% | 36,332 | 27,347 |
Class C | .75% | .25% | 214,405 | 11,725 |
|
|
| $ 442,161 | $ 42,401 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 6,336 |
Class T | 1,845 |
Class B* | 7,374 |
Class C* | 1,145 |
| $ 16,700 |
* When Class B and 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 140,839 | .26 |
Class T | 34,930 | .31 |
Class B | 10,909 | .30 |
Class C | 53,387 | .25 |
Canada | 2,191,496 | .20 |
Institutional Class | 26,460 | .19 |
| $ 2,458,021 |
|
* 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 $1,883 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 3,978,500 | .29% | $ 259 |
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 $2,229 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $1,026,490. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $2,911,000. The weighted average interest rate was .57%. The interest expense amounted to $46 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $2,622 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $16,046.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 53,142 | $ 1,637,055 |
Class T | - | 220,579 |
Class B | - | 25,159 |
Class C | - | 146,334 |
Canada | 9,173,811 | 40,860,360 |
Institutional Class | 111,962 | 803,928 |
Total | $ 9,338,915 | $ 43,693,415 |
From net realized gain |
|
|
Class A | $ 629,831 | $ - |
Class T | 130,152 | - |
Class B | 42,217 | - |
Class C | 256,584 | - |
Canada | 12,282,929 | - |
Institutional Class | 161,386 | - |
Total | $ 13,503,099 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 55,064 | 215,503 | $ 3,178,417 | $ 11,581,739 |
Reinvestment of distributions | 9,784 | 24,773 | 552,980 | 1,299,341 |
Shares redeemed | (415,276) | (1,179,795) | (23,969,148) | (63,487,281) |
Net increase (decrease) | (350,428) | (939,519) | $ (20,237,751) | $ (50,606,201) |
Class T |
|
|
|
|
Shares sold | 10,393 | 36,303 | $ 597,941 | $ 1,947,020 |
Reinvestment of distributions | 2,264 | 4,099 | 127,592 | 214,911 |
Shares redeemed | (59,115) | (178,697) | (3,395,440) | (9,595,838) |
Net increase (decrease) | (46,458) | (138,295) | $ (2,669,907) | $ (7,433,907) |
Class B |
|
|
|
|
Shares sold | 333 | 567 | $ 18,810 | $ 30,467 |
Reinvestment of distributions | 630 | 400 | 35,107 | 20,851 |
Shares redeemed | (18,164) | (49,457) | (1,034,019) | (2,648,974) |
Net increase (decrease) | (17,201) | (48,490) | $ (980,102) | $ (2,597,656) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class C |
|
|
|
|
Shares sold | 26,212 | 62,908 | $ 1,485,279 | $ 3,346,028 |
Reinvestment of distributions | 3,715 | 2,201 | 206,074 | 114,122 |
Shares redeemed | (146,310) | (510,875) | (8,252,433) | (27,051,390) |
Net increase (decrease) | (116,383) | (445,766) | $ (6,561,080) | $ (23,591,240) |
Canada |
|
|
|
|
Shares sold | 848,295 | 2,375,531 | $ 49,252,098 | $ 128,818,784 |
Reinvestment of distributions | 358,786 | 737,701 | 20,353,959 | 38,862,091 |
Shares redeemed | (4,976,034) | (19,289,279) | (288,483,774) | (1,044,400,607) |
Net increase (decrease) | (3,768,953) | (16,176,047) | $ (218,877,717) | $ (876,719,732) |
Institutional Class |
|
|
|
|
Shares sold | 161,922 | 144,801 | $ 9,458,455 | $ 7,839,112 |
Reinvestment of distributions | 3,804 | 11,985 | 215,319 | 629,694 |
Shares redeemed | (191,546) | (720,255) | (11,052,264) | (38,850,898) |
Net increase (decrease) | (25,820) | (563,469) | $ (1,378,490) | $ (30,382,092) |
12. 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.
Semiannual Report
Fidelity China Region Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.37% |
|
|
|
Actual |
| $ 1,000.00 | $ 970.20 | $ 6.69 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.00 | $ 6.85 |
Class T | 1.66% |
|
|
|
Actual |
| $ 1,000.00 | $ 968.80 | $ 8.10 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.56 | $ 8.30 |
Class B | 2.12% |
|
|
|
Actual |
| $ 1,000.00 | $ 966.50 | $ 10.34 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.28 | $ 10.59 |
Class C | 2.09% |
|
|
|
Actual |
| $ 1,000.00 | $ 966.70 | $ 10.19 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.43 | $ 10.44 |
China Region | 1.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 972.00 | $ 4.99 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.74 | $ 5.11 |
Institutional Class | .99% |
|
|
|
Actual |
| $ 1,000.00 | $ 972.00 | $ 4.84 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.89 | $ 4.96 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Fidelity China Region Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Cayman Islands | 33.5% |
| |
China | 23.0% |
| |
Hong Kong | 15.2% |
| |
Taiwan | 13.0% |
| |
Bermuda | 6.5% |
| |
Korea (South) | 3.3% |
| |
Italy | 1.6% |
| |
Japan | 1.2% |
| |
United States of America* | 1.0% |
| |
Other | 1.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Cayman Islands | 24.1% |
| |
China | 20.9% |
| |
Hong Kong | 16.7% |
| |
Taiwan | 14.8% |
| |
Bermuda | 10.6% |
| |
United States of America* | 6.9% |
| |
Japan | 2.1% |
| |
Korea (South) | 1.7% |
| |
Italy | 1.5% |
| |
Other | 0.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 99.5 | 95.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5 | 4.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Tencent Holdings Ltd. (Internet Software & Services) | 8.4 | 6.8 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) | 8.1 | 5.7 |
AIA Group Ltd. (Insurance) | 5.5 | 5.1 |
China Construction Bank Corp. (H Shares) (Banks) | 3.6 | 3.7 |
Industrial & Commercial Bank of China Ltd. (H Shares) (Banks) | 3.5 | 3.7 |
Chongqing Changan Automobile Co. Ltd. (B Shares) (Automobiles) | 3.0 | 3.0 |
China Petroleum & Chemical Corp. (H Shares) (Oil, Gas & Consumable Fuels) | 2.5 | 0.0 |
Sands China Ltd. (Hotels, Restaurants & Leisure) | 2.4 | 1.6 |
China Pacific Insurance Group Co. Ltd. (H Shares) (Insurance) | 1.9 | 1.5 |
Techtronic Industries Co. Ltd. (Household Durables) | 1.8 | 1.3 |
| 40.7 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Information Technology | 27.7 | 24.8 |
Financials | 23.5 | 21.8 |
Consumer Discretionary | 23.2 | 25.7 |
Industrials | 7.1 | 7.6 |
Materials | 4.7 | 3.9 |
Health Care | 4.3 | 3.1 |
Energy | 4.2 | 3.2 |
Utilities | 2.4 | 3.0 |
Telecommunication Services | 1.2 | 1.6 |
Consumer Staples | 1.2 | 0.6 |
Semiannual Report
Fidelity China Region Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 23.2% | |||
Automobiles - 4.3% | |||
Brilliance China Automotive Holdings Ltd. | 11,364,000 | $ 17,559,860 | |
Chongqing Changan Automobile Co. Ltd. (B Shares) | 21,723,686 | 39,227,856 | |
| 56,787,716 | ||
Diversified Consumer Services - 1.4% | |||
Perfect Shape (PRC) Holdings Ltd. (e) | 75,000,000 | 19,057,262 | |
Hotels, Restaurants & Leisure - 8.5% | |||
500 Com Ltd. sponsored ADR Class A (d) | 304,350 | 9,647,895 | |
China Lodging Group Ltd. ADR (a) | 310,000 | 6,878,900 | |
Galaxy Entertainment Group Ltd. | 2,701,000 | 21,199,137 | |
Hotel Shilla Co. | 47,714 | 4,013,500 | |
Melco Crown Entertainment Ltd. sponsored ADR (d) | 473,400 | 16,180,812 | |
Melco International Development Ltd. | 7,009,000 | 21,471,021 | |
Sands China Ltd. | 4,341,800 | 31,697,080 | |
Shangri-La Asia Ltd. | 1,344,600 | 2,216,445 | |
| 113,304,790 | ||
Household Durables - 1.8% | |||
Techtronic Industries Co. Ltd. | 7,728,000 | 24,620,512 | |
Internet & Catalog Retail - 1.8% | |||
Ctrip.com International Ltd. sponsored ADR (a)(d) | 274,916 | 12,849,574 | |
E-Commerce China Dangdang, Inc. ADR (a)(d) | 500,000 | 5,395,000 | |
Qunar Cayman Islands Ltd. sponsored ADR (d) | 237,468 | 5,865,460 | |
| 24,110,034 | ||
Leisure Products - 0.7% | |||
Goodbaby International Holdings Ltd. (d) | 16,000,000 | 8,770,855 | |
Media - 0.4% | |||
CJ E&M Corp. (a) | 125,000 | 6,098,151 | |
Specialty Retail - 1.6% | |||
Baoxin Auto Group Ltd. (d) | 21,494,000 | 16,218,330 | |
Oriental Watch Holdings Ltd. | 23,615,000 | 5,330,390 | |
| 21,548,720 | ||
Textiles, Apparel & Luxury Goods - 2.7% | |||
ECLAT Textile Co. Ltd. | 656,140 | 7,177,942 | |
Prada SpA | 2,676,300 | 21,367,734 | |
Shenzhou International Group Holdings Ltd. | 2,046,000 | 7,046,118 | |
| 35,591,794 | ||
TOTAL CONSUMER DISCRETIONARY | 309,889,834 | ||
CONSUMER STAPLES - 1.2% | |||
Food Products - 1.2% | |||
China Mengniu Dairy Co. Ltd. | 3,000,000 | 15,419,937 | |
| |||
Shares | Value | ||
ENERGY - 4.2% | |||
Oil, Gas & Consumable Fuels - 4.2% | |||
China Petroleum & Chemical Corp. (H Shares) | 37,500,000 | $ 33,290,857 | |
Sinopec Kantons Holdings Ltd. (d) | 24,262,000 | 22,625,486 | |
| 55,916,343 | ||
FINANCIALS - 23.5% | |||
Banks - 7.9% | |||
China Construction Bank Corp. (H Shares) | 69,778,000 | 48,151,001 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 78,024,000 | 46,620,758 | |
Kweichow Moutai Co. Ltd. (A Shares) (BNP Paribas Warrant Program) warrants 7/9/15 (a) | 203,200 | 5,320,108 | |
Wuliangye Yibin Co. Ltd. A (BNP Paribas Warrant Program) warrants 8/7/15 (a) | 1,984,100 | 5,578,880 | |
| 105,670,747 | ||
Capital Markets - 0.9% | |||
Kweichow Moutai Co. Ltd. (A Shares) (UBS Warrant Programme) warrants 7/9/15 (a) | 277,900 | 7,275,876 | |
Shanghai Bestway Marine Engineering Design Co. Ltd. warrants 3/5/17 (a) | 1,767,600 | 4,970,126 | |
| 12,246,002 | ||
Diversified Financial Services - 0.8% | |||
Far East Horizon Ltd. | 16,000,000 | 10,834,586 | |
Insurance - 7.4% | |||
AIA Group Ltd. | 14,982,600 | 72,662,117 | |
China Pacific Insurance Group Co. Ltd. (H Shares) | 7,999,200 | 25,071,819 | |
| 97,733,936 | ||
Real Estate Investment Trusts - 0.5% | |||
Champion (REIT) | 15,000,000 | 7,061,828 | |
Real Estate Management & Development - 6.0% | |||
Great Eagle Holdings Ltd. | 2,150,000 | 7,695,458 | |
Greenland Hong Kong Holdings Ltd. | 15,000,000 | 6,829,658 | |
Hopson Development Holdings Ltd. (a) | 12,266,000 | 11,992,375 | |
Longfor Properties Co. Ltd. | 5,000,000 | 6,462,056 | |
Shimao Property Holdings Ltd. | 6,908,500 | 13,633,527 | |
Sun Hung Kai Properties Ltd. | 1,282,000 | 16,147,054 | |
Sun Hung Kai Properties Ltd. warrants 4/22/16 (a) | 106,833 | 71,930 | |
Wharf Holdings Ltd. | 2,348,000 | 16,429,746 | |
| 79,261,804 | ||
TOTAL FINANCIALS | 312,808,903 | ||
HEALTH CARE - 4.3% | |||
Life Sciences Tools & Services - 0.8% | |||
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 305,700 | 10,393,800 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Pharmaceuticals - 3.5% | |||
China Pharmaceutical Group Ltd. | 15,016,000 | $ 12,492,432 | |
Lee's Pharmaceutical Holdings Ltd. | 8,290,000 | 9,302,653 | |
Shanghai Fosun Pharmaceutical (Group) Co. Ltd. Class H | 958,500 | 3,239,115 | |
Sino Biopharmaceutical Ltd. | 12,388,000 | 9,698,909 | |
Tong Ren Tang Technologies Co. Ltd. (H Shares) | 4,351,000 | 12,542,948 | |
| 47,276,057 | ||
TOTAL HEALTH CARE | 57,669,857 | ||
INDUSTRIALS - 7.1% | |||
Commercial Services & Supplies - 0.3% | |||
Cleanaway Co. Ltd. | 818,000 | 4,637,019 | |
Construction & Engineering - 1.6% | |||
China State Construction International Holdings Ltd. | 10,482,000 | 17,494,899 | |
Paul Y. Engineering Group Ltd. (a)(d) | 4,337,500 | 4,307,876 | |
| 21,802,775 | ||
Electrical Equipment - 1.4% | |||
Harbin Electric Machinery Co. Ltd. (H Shares) | 17,000,000 | 9,932,993 | |
Shanghai Electric Group Co. Ltd. (H Shares) | 21,968,000 | 8,613,846 | |
| 18,546,839 | ||
Machinery - 1.2% | |||
Cimc Enric Holdings Ltd. | 4,700,000 | 6,801,798 | |
CSR Corp. Ltd. (H Shares) | 11,689,000 | 8,533,492 | |
| 15,335,290 | ||
Marine - 1.3% | |||
China Shipping Development Co. Ltd. (H Shares) (a)(d) | 31,444,000 | 17,196,365 | |
Trading Companies & Distributors - 1.3% | |||
Shanghai Waigaoqiao Free Trade Zone Development Co. Ltd. (B Shares) | 1,762,725 | 2,963,141 | |
Summit Ascent Holdings Ltd. (a)(d) | 9,272,000 | 13,992,403 | |
| 16,955,544 | ||
TOTAL INDUSTRIALS | 94,473,832 | ||
INFORMATION TECHNOLOGY - 27.7% | |||
Electronic Equipment & Components - 0.3% | |||
Tong Hsing Electronics Industries Ltd. | 666,000 | 3,576,669 | |
Internet Software & Services - 13.3% | |||
Baidu.com, Inc. sponsored ADR (a) | 85,000 | 13,077,250 | |
Naver Corp. | 34,000 | 24,288,065 | |
Qihoo 360 Technology Co. Ltd. ADR (a)(d) | 70,000 | 5,906,600 | |
| |||
Shares | Value | ||
SouFun Holdings Ltd. ADR | 810,000 | $ 9,533,700 | |
Tencent Holdings Ltd. | 1,802,200 | 112,321,508 | |
Yahoo!, Inc. (a) | 200,000 | 7,190,000 | |
Youku Tudou, Inc. ADR (a)(d) | 250,000 | 5,572,500 | |
| 177,889,623 | ||
Semiconductors & Semiconductor Equipment - 11.6% | |||
GCL-Poly Energy Holdings Ltd. (a)(d) | 60,973,000 | 18,245,617 | |
MediaTek, Inc. | 816,000 | 12,767,963 | |
Novatek Microelectronics Corp. | 2,674,000 | 12,365,882 | |
Seoul Semiconductor Co. Ltd. | 100,000 | 4,012,196 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 27,336,796 | 107,531,778 | |
| 154,923,436 | ||
Software - 1.1% | |||
China City Railway Transportation Technology Holdings Co. Ltd. (a) | 16,396,000 | 3,827,802 | |
Kingdee International Software Group Co. Ltd. (a) | 14,768,000 | 4,400,142 | |
WeMade Entertainment Co. Ltd. (a) | 146,519 | 6,367,925 | |
| 14,595,869 | ||
Technology Hardware, Storage & Peripherals - 1.4% | |||
Advantech Co. Ltd. | 2,854,000 | 18,449,222 | |
TOTAL INFORMATION TECHNOLOGY | 369,434,819 | ||
MATERIALS - 4.7% | |||
Chemicals - 0.5% | |||
Taiwan Fertilizer Co. Ltd. | 3,015,000 | 5,996,917 | |
Construction Materials - 2.7% | |||
Anhui Conch Cement Co. Ltd. (H Shares) | 4,372,500 | 16,242,592 | |
Asia Cement (China) Holdings Corp. | 6,409,500 | 4,662,687 | |
BBMG Corp. (H Shares) | 2,708,500 | 1,903,962 | |
China Shanshui Cement Group Ltd. | 35,000,000 | 13,498,088 | |
| 36,307,329 | ||
Containers & Packaging - 0.9% | |||
Greatview Aseptic Pack Co. Ltd. | 19,157,000 | 11,687,501 | |
Paper & Forest Products - 0.6% | |||
Lee & Man Paper Manufacturing Ltd. | 15,012,000 | 8,151,803 | |
TOTAL MATERIALS | 62,143,550 | ||
TELECOMMUNICATION SERVICES - 1.2% | |||
Wireless Telecommunication Services - 1.2% | |||
SoftBank Corp. | 224,000 | 16,629,921 | |
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - 2.4% | |||
Independent Power Producers & Energy Traders - 2.4% | |||
Beijing Jingneng Clean Energy Co. Ltd. (H Shares) (d) | 27,500,000 | $ 11,811,633 | |
Huadian Fuxin Energy Corp. Ltd. (H Shares) | 43,672,000 | 20,391,288 | |
| 32,202,921 | ||
TOTAL COMMON STOCKS (Cost $1,048,646,060) |
| ||
Money Market Funds - 5.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 10,974,542 | 10,974,542 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 61,273,705 | 61,273,705 | |
TOTAL MONEY MARKET FUNDS (Cost $72,248,247) |
| ||
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $1,120,894,307) | 1,398,838,164 | ||
NET OTHER ASSETS (LIABILITIES) - (4.9)% | (65,749,662) | ||
NET ASSETS - 100% | $ 1,333,088,502 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 16,904 |
Fidelity Securities Lending Cash Central Fund | 193,784 |
Total | $ 210,688 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Perfect Shape (PRC) Holdings Ltd. | $ - | $ 16,961,684 | $ - | $ - | $ 19,057,262 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 309,889,834 | $ 309,889,834 | $ - | $ - |
Consumer Staples | 15,419,937 | 15,419,937 | - | - |
Energy | 55,916,343 | 22,625,486 | 33,290,857 | - |
Financials | 312,808,903 | 243,043,155 | 69,765,748 | - |
Health Care | 57,669,857 | 57,669,857 | - | - |
Industrials | 94,473,832 | 94,473,832 | - | - |
Information Technology | 369,434,819 | 261,903,041 | 107,531,778 | - |
Materials | 62,143,550 | 62,143,550 | - | - |
Telecommunication Services | 16,629,921 | 16,629,921 | - | - |
Utilities | 32,202,921 | 32,202,921 | - | - |
Money Market Funds | 72,248,247 | 72,248,247 | - | - |
Total Investments in Securities: | $ 1,398,838,164 | $ 1,188,249,781 | $ 210,588,383 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 54,645,985 |
Level 2 to Level 1 | $ 23,598,535 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity China Region Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $58,334,624) - See accompanying schedule: Unaffiliated issuers (cost $1,031,684,376) | $ 1,307,532,655 |
|
Fidelity Central Funds (cost $72,248,247) | 72,248,247 |
|
Other affiliated issuers (cost $16,961,684) | 19,057,262 |
|
Total Investments (cost $1,120,894,307) |
| $ 1,398,838,164 |
Foreign currency held at value (cost $244,828) | 245,887 | |
Receivable for investments sold | 15,467,797 | |
Receivable for fund shares sold | 712,507 | |
Dividends receivable | 290,144 | |
Distributions receivable from Fidelity Central Funds | 81,164 | |
Prepaid expenses | 963 | |
Other receivables | 1,405 | |
Total assets | 1,415,638,031 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 18,140,545 | |
Payable for fund shares redeemed | 1,827,589 | |
Accrued management fee | 814,744 | |
Distribution and service plan fees payable | 14,198 | |
Other affiliated payables | 294,016 | |
Other payables and accrued expenses | 184,732 | |
Collateral on securities loaned, at value | 61,273,705 | |
Total liabilities | 82,549,529 | |
|
|
|
Net Assets | $ 1,333,088,502 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,004,956,352 | |
Accumulated net investment loss | (5,310,768) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 55,492,359 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 277,950,559 | |
Net Assets | $ 1,333,088,502 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 31.15 | |
|
|
|
Maximum offering price per share (100/94.25 of $31.15) | $ 33.05 | |
Class T: | $ 31.05 | |
|
|
|
Maximum offering price per share (100/96.50 of $31.05) | $ 32.18 | |
Class B: | $ 30.90 | |
|
|
|
Class C: | $ 30.69 | |
|
|
|
|
|
|
China Region: | $ 31.40 | |
|
|
|
Institutional Class: | $ 31.28 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 2,069,209 |
Income from Fidelity Central Funds (including $193,784 from security lending) |
| 210,688 |
Income before foreign taxes withheld |
| 2,279,897 |
Less foreign taxes withheld |
| (51,048) |
Total income |
| 2,228,849 |
|
|
|
Expenses | ||
Management fee | $ 5,121,368 | |
Transfer agent fees | 1,468,880 | |
Distribution and service plan fees | 86,843 | |
Accounting and security lending fees | 332,878 | |
Custodian fees and expenses | 225,969 | |
Independent trustees' compensation | 2,909 | |
Registration fees | 80,138 | |
Audit | 37,081 | |
Legal | 3,306 | |
Interest | 1,179 | |
Miscellaneous | 193,686 | |
Total expenses before reductions | 7,554,237 | |
Expense reductions | (10,445) | 7,543,792 |
Net investment income (loss) | (5,314,943) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 61,527,361 | |
Foreign currency transactions | (85,766) | |
Total net realized gain (loss) |
| 61,441,595 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (93,888,557) | |
Assets and liabilities in foreign currencies | 11,759 | |
Total change in net unrealized appreciation (depreciation) |
| (93,876,798) |
Net gain (loss) | (32,435,203) | |
Net increase (decrease) in net assets resulting from operations | $ (37,750,146) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ (5,314,943) | $ 18,038,729 |
Net realized gain (loss) | 61,441,595 | 182,630,699 |
Change in net unrealized appreciation (depreciation) | (93,876,798) | 120,639,628 |
Net increase (decrease) in net assets resulting from operations | (37,750,146) | 321,309,056 |
Distributions to shareholders from net investment income | (15,459,434) | (19,616,401) |
Distributions to shareholders from net realized gain | (136,131,549) | - |
Total distributions | (151,590,983) | (19,616,401) |
Share transactions - net increase (decrease) | 51,144,231 | (122,395,498) |
Redemption fees | 212,691 | 393,175 |
Total increase (decrease) in net assets | (137,984,207) | 179,690,332 |
|
|
|
Net Assets | ||
Beginning of period | 1,471,072,709 | 1,291,382,377 |
End of period (including accumulated net investment loss of $5,310,768 and undistributed net investment income of $15,463,609, respectively) | $ 1,333,088,502 | $ 1,471,072,709 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.56 | $ 28.53 | $ 27.28 | $ 31.61 | $ 26.47 | $ 16.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.18) | .30 | .36 | .33 | .25 | .30 |
Net realized and unrealized gain (loss) | (.62) | 7.06 | 1.42 | (4.33) | 5.15 | 9.63 |
Total from investment operations | (.80) | 7.36 | 1.78 | (4.00) | 5.40 | 9.93 |
Distributions from net investment income | (.30) | (.34) | (.19) | (.31) | (.20) | (.16) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.61) | (.34) | (.53) | (.34) | (.27) | (.16) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .03 |
Net asset value, end of period | $ 31.15 | $ 35.56 | $ 28.53 | $ 27.28 | $ 31.61 | $ 26.47 |
Total Return B, C, D | (2.98)% | 26.07% | 6.70% | (12.79)% | 20.54% | 60.41% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.37% A | 1.35% | 1.36% | 1.37% | 1.38% | 1.39% |
Expenses net of fee waivers, if any | 1.37% A | 1.35% | 1.36% | 1.37% | 1.38% | 1.39% |
Expenses net of all reductions | 1.37% A | 1.31% | 1.29% | 1.31% | 1.31% | 1.31% |
Net investment income (loss) | (1.06)% A | .94% | 1.35% | 1.07% | .91% | 1.27% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 18,566 | $ 20,623 | $ 13,539 | $ 14,808 | $ 16,047 | $ 11,842 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.40 | $ 28.40 | $ 27.13 | $ 31.48 | $ 26.40 | $ 16.65 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.22) | .21 | .29 | .25 | .18 | .23 |
Net realized and unrealized gain (loss) | (.63) | 7.04 | 1.40 | (4.32) | 5.13 | 9.64 |
Total from investment operations | (.85) | 7.25 | 1.69 | (4.07) | 5.31 | 9.87 |
Distributions from net investment income | (.19) | (.26) | (.08) | (.27) | (.18) | (.14) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.50) | (.26) | (.42) | (.29) J | (.24) K | (.14) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 31.05 | $ 35.40 | $ 28.40 | $ 27.13 | $ 31.48 | $ 26.40 |
Total Return B, C, D | (3.12)% | 25.74% | 6.38% | (13.04)% | 20.27% | 59.92% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 1.66% A | 1.64% | 1.64% | 1.63% | 1.64% | 1.66% |
Expenses net of fee waivers, if any | 1.66% A | 1.64% | 1.64% | 1.63% | 1.64% | 1.66% |
Expenses net of all reductions | 1.66% A | 1.60% | 1.57% | 1.57% | 1.58% | 1.58% |
Net investment income (loss) | (1.35)% A | .65% | 1.06% | .81% | .64% | 1.00% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 5,860 | $ 5,965 | $ 4,349 | $ 5,281 | $ 6,070 | $ 3,139 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. J Total distributions of $.29 per share is comprised of distributions from net investment income of $.268 and distributions from net realized gain of $.025 per share. K Total distributions of $.24 per share is comprised of distributions from net investment income of $.177 and distributions from net realized gain of $.065 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.12 | $ 28.16 | $ 26.94 | $ 31.23 | $ 26.28 | $ 16.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.30) | .06 | .16 | .10 | .04 | .12 |
Net realized and unrealized gain (loss) | (.63) | 6.99 | 1.40 | (4.29) | 5.09 | 9.63 |
Total from investment operations | (.93) | 7.05 | 1.56 | (4.19) | 5.13 | 9.75 |
Distributions from net investment income | - | (.10) | - | (.08) | (.12) | (.10) |
Distributions from net realized gain | (3.29) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.29) | (.10) | (.34) | (.11) | (.19) | (.10) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 30.90 | $ 35.12 | $ 28.16 | $ 26.94 | $ 31.23 | $ 26.28 |
Total Return B, C, D | (3.35)% | 25.12% | 5.90% | (13.45)% | 19.63% | 59.16% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of fee waivers, if any | 2.12% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of all reductions | 2.12% A | 2.07% | 2.04% | 2.06% | 2.08% | 2.06% |
Net investment income (loss) | (1.82)% A | .19% | .59% | .32% | .14% | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,204 | $ 1,494 | $ 1,533 | $ 1,801 | $ 2,496 | $ 1,915 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 34.99 | $ 28.07 | $ 26.86 | $ 31.19 | $ 26.25 | $ 16.61 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E | (.29) | .06 | .16 | .10 | .04 | .12 |
Net realized and unrealized gain (loss) | (.62) | 6.97 | 1.39 | (4.28) | 5.09 | 9.62 |
Total from investment operations | (.91) | 7.03 | 1.55 | (4.18) | 5.13 | 9.74 |
Distributions from net investment income | (.08) | (.12) | - | (.13) | (.13) | (.12) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.39) | (.12) | (.34) | (.16) | (.20) | (.12) |
Redemption fees added to paid in capital E | - I | .01 | - I | .01 | .01 | .02 |
Net asset value, end of period | $ 30.69 | $ 34.99 | $ 28.07 | $ 26.86 | $ 31.19 | $ 26.25 |
Total Return B, C, D | (3.33)% | 25.14% | 5.88% | (13.46)% | 19.66% | 59.18% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions | 2.09% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of fee waivers, if any | 2.09% A | 2.10% | 2.11% | 2.12% | 2.14% | 2.15% |
Expenses net of all reductions | 2.09% A | 2.07% | 2.04% | 2.06% | 2.07% | 2.07% |
Net investment income (loss) | (1.78)% A | .19% | .59% | .32% | .15% | .51% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 7,578 | $ 6,957 | $ 4,515 | $ 5,230 | $ 5,938 | $ 3,806 |
Portfolio turnover rate G | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H 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. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - China Region
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.83 | $ 28.73 | $ 27.49 | $ 31.81 | $ 26.55 | $ 16.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.12) | .41 | .45 | .44 | .34 | .33 |
Net realized and unrealized gain (loss) | (.62) | 7.11 | 1.42 | (4.37) | 5.18 | 9.68 |
Total from investment operations | (.74) | 7.52 | 1.87 | (3.93) | 5.52 | 10.01 |
Distributions from net investment income | (.38) | (.43) | (.29) | (.38) | (.21) | (.17) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.69) | (.43) | (.63) | (.40) I | (.27) J | (.17) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .01 | .02 |
Net asset value, end of period | $ 31.40 | $ 35.83 | $ 28.73 | $ 27.49 | $ 31.81 | $ 26.55 |
Total Return B, C | (2.80)% | 26.51% | 7.01% | (12.52)% | 20.97% | 60.77% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.02% A | 1.02% | 1.04% | 1.04% | 1.06% | 1.12% |
Expenses net of fee waivers, if any | 1.02% A | 1.02% | 1.04% | 1.04% | 1.06% | 1.12% |
Expenses net of all reductions | 1.02% A | .98% | .98% | .98% | 1.00% | 1.03% |
Net investment income (loss) | (.71)% A | 1.27% | 1.66% | 1.40% | 1.22% | 1.54% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,288,114 | $ 1,425,828 | $ 1,265,488 | $ 1,515,084 | $ 2,130,070 | $ 2,138,141 |
Portfolio turnover rate F | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.40 per share is comprised of distributions from net investment income of $.376 and distributions from net realized gain of $.025 per share. J Total distributions of $.27 per share is comprised of distributions from net investment income of $.209 and distributions from net realized gain of $.065 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 35.75 | $ 28.68 | $ 27.46 | $ 31.79 | $ 26.55 | $ 16.70 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | (.11) | .42 | .45 | .43 | .33 | .37 |
Net realized and unrealized gain (loss) | (.63) | 7.10 | 1.42 | (4.37) | 5.18 | 9.64 |
Total from investment operations | (.74) | 7.52 | 1.87 | (3.94) | 5.51 | 10.01 |
Distributions from net investment income | (.43) | (.46) | (.31) | (.37) | (.22) | (.18) |
Distributions from net realized gain | (3.31) | - | (.34) | (.03) | (.07) | - |
Total distributions | (3.73) J | (.46) | (.65) | (.40) | (.28) I | (.18) |
Redemption fees added to paid in capital D | - H | .01 | - H | .01 | .01 | .02 |
Net asset value, end of period | $ 31.28 | $ 35.75 | $ 28.68 | $ 27.46 | $ 31.79 | $ 26.55 |
Total Return B, C | (2.80)% | 26.58% | 7.02% | (12.56)% | 20.92% | 60.78% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .99% A | .97% | 1.04% | 1.06% | 1.11% | 1.08% |
Expenses net of fee waivers, if any | .99% A | .97% | 1.04% | 1.06% | 1.11% | 1.08% |
Expenses net of all reductions | .99% A | .93% | .98% | 1.01% | 1.04% | 1.00% |
Net investment income (loss) | (.68)% A | 1.32% | 1.66% | 1.38% | 1.18% | 1.58% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 11,767 | $ 10,206 | $ 1,958 | $ 2,034 | $ 1,904 | $ 1,684 |
Portfolio turnover rate F | 71% A | 92% | 107% | 87% | 57% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.28 per share is comprised of distributions from net investment income of $.216 and distributions from net realized gain of $.065 per share. J Total distributions of $3.73 per share is comprised of distributions from net investment income of $.425 and distributions from net realized gain of $3.306 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® China Region Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, China Region and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 341,869,538 |
Gross unrealized depreciation | (68,233,494) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 273,636,044 |
|
|
Tax cost | $ 1,125,202,120 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $505,493,603 and $547,378,652, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 25,776 | $ 467 |
Class T | .25% | .25% | 15,268 | 145 |
Class B | .75% | .25% | 7,048 | 5,319 |
Class C | .75% | .25% | 38,751 | 11,855 |
|
|
| $ 86,843 | $ 17,786 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 12,453 |
Class T | 2,881 |
Class B* | 2,196 |
Class C* | 625 |
| $ 18,155 |
* When Class B and 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.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of |
Class A | $ 30,751 | .30 |
Class T | 10,360 | .34 |
Class B | 2,140 | .30 |
Class C | 10,300 | .27 |
China Region | 1,406,737 | .20 |
Institutional Class | 8,592 | .17 |
| $ 1,468,880 |
|
* 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 $2,294 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 14,128,000 | .29% | $ 1,153 |
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 $1,373 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. 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 and includes $2,716 from securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $1,623,000. The weighted average interest rate was .57%. The interest expense amounted to $26 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $10,445.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 180,108 | $ 161,788 |
Class T | 32,344 | 40,503 |
Class B | - | 4,993 |
Class C | 17,191 | 18,782 |
China Region | 15,122,632 | 19,344,002 |
Institutional Class | 107,159 | 46,333 |
Total | $ 15,459,434 | $ 19,616,401 |
From net realized gain |
|
|
Class A | $ 1,978,191 | $ - |
Class T | 554,033 | - |
Class B | 137,166 | - |
Class C | 701,626 | - |
China Region | 131,926,962 | - |
Institutional Class | 833,571 | - |
Total | $ 136,131,549 | $ - |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 111,013 | 284,743 | $ 3,722,677 | $ 9,232,019 |
Reinvestment of distributions | 60,028 | 5,112 | 2,013,955 | 151,768 |
Shares redeemed | (154,927) | (184,522) | (5,124,654) | (5,803,916) |
Net increase (decrease) | 16,114 | 105,333 | $ 611,978 | $ 3,579,871 |
Class T |
|
|
|
|
Shares sold | 29,085 | 70,191 | $ 964,072 | $ 2,215,632 |
Reinvestment of distributions | 17,176 | 1,321 | 574,877 | 39,167 |
Shares redeemed | (26,030) | (56,116) | (866,500) | (1,759,294) |
Net increase (decrease) | 20,231 | 15,396 | $ 672,449 | $ 495,505 |
Class B |
|
|
|
|
Shares sold | 437 | 6,343 | $ 14,784 | $ 197,892 |
Reinvestment of distributions | 3,586 | 151 | 119,686 | 4,455 |
Shares redeemed | (7,618) | (18,382) | (250,305) | (569,584) |
Net increase (decrease) | (3,595) | (11,888) | $ (115,835) | $ (367,237) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class C |
|
|
|
|
Shares sold | 69,697 | 120,235 | $ 2,320,651 | $ 3,792,024 |
Reinvestment of distributions | 18,485 | 573 | 612,773 | 16,859 |
Shares redeemed | (40,082) | (82,838) | (1,304,397) | (2,577,162) |
Net increase (decrease) | 48,100 | 37,970 | $ 1,629,027 | $ 1,231,721 |
China Region |
|
|
|
|
Shares sold | 3,775,737 | 11,534,725 | $ 127,767,390 | $ 362,586,439 |
Reinvestment of distributions | 4,157,611 | 622,145 | 140,360,926 | 18,558,580 |
Shares redeemed | (6,699,206) | (16,406,195) | (222,736,022) | (515,921,780) |
Net increase (decrease) | 1,234,142 | (4,249,325) | $ 45,392,294 | $ (134,776,761) |
Institutional Class |
|
|
|
|
Shares sold | 283,369 | 333,624 | $ 9,454,844 | $ 11,106,364 |
Reinvestment of distributions | 23,866 | 1,452 | 802,629 | 43,199 |
Shares redeemed | (216,524) | (117,838) | (7,303,155) | (3,708,160) |
Net increase (decrease) | 90,711 | 217,238 | $ 2,954,318 | $ 7,441,403 |
12. 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.
Semiannual Report
Fidelity Emerging Asia Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management 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 (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table 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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Actual | 1.05% | $ 1,000.00 | $ 996.30 | $ 5.20 |
Hypothetical A |
| $ 1,000.00 | $ 1,019.59 | $ 5.26 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.
Semiannual Report
Fidelity Emerging Asia Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Korea (South) | 17.5% |
| |
China | 15.3% |
| |
Cayman Islands | 11.9% |
| |
Taiwan | 11.8% |
| |
India | 10.6% |
| |
Hong Kong | 9.9% |
| |
Singapore | 5.5% |
| |
Thailand | 4.5% |
| |
Malaysia | 3.4% |
| |
Other* | 9.6% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Korea (South) | 21.6% |
| |
China | 15.9% |
| |
Hong Kong | 11.7% |
| |
Cayman Islands | 11.5% |
| |
India | 8.8% |
| |
Taiwan | 8.4% |
| |
Singapore | 5.7% |
| |
Thailand | 3.8% |
| |
Malaysia | 3.4% |
| |
Other* | 9.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.9 | 98.0 |
Short-Term Investments and Net Other Assets (Liabilities) | 1.1 | 2.0 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 6.2 | 6.3 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.9 | 1.9 |
AIA Group Ltd. (Hong Kong, Insurance) | 2.6 | 2.7 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.4 | 2.4 |
China Construction Bank Corp. (H Shares) (China, Banks) | 2.2 | 2.4 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) (Taiwan, Electronic Equipment & Components) | 1.8 | 0.0 |
Hyundai Motor Co. (Korea (South), Automobiles) | 1.7 | 2.3 |
Bank of China Ltd. (H Shares) (China, Banks) | 1.5 | 0.0 |
Hutchison Whampoa Ltd. (Hong Kong, Industrial Conglomerates) | 1.4 | 0.0 |
Industrial & Commercial Bank of China Ltd. (H Shares) (China, Banks) | 1.3 | 2.2 |
| 25.0 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 30.3 | 34.6 |
Information Technology | 24.0 | 19.8 |
Consumer Discretionary | 13.7 | 11.6 |
Industrials | 8.0 | 6.9 |
Energy | 4.6 | 5.8 |
Materials | 4.3 | 7.2 |
Telecommunication Services | 4.2 | 3.8 |
Utilities | 4.2 | 4.3 |
Consumer Staples | 3.8 | 3.3 |
Health Care | 1.8 | 0.7 |
Semiannual Report
Fidelity Emerging Asia Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value | ||
Bermuda - 2.3% | |||
BW Offshore Ltd. | 425,000 | $ 554,817 | |
Cafe de Coral Holdings Ltd. | 712,000 | 2,236,207 | |
CSI Properties Ltd. | 52,810,000 | 1,839,132 | |
Great Eagle Holdings Ltd. | 1,602,000 | 5,734,011 | |
Hongkong Land Holdings Ltd. | 786,000 | 5,502,000 | |
Huabao International Holdings Ltd. | 1,521,000 | 719,993 | |
Luk Fook Holdings International Ltd. | 574,000 | 1,628,799 | |
Oriental Watch Holdings Ltd. | 5,018,000 | 1,132,666 | |
PAX Global Technology Ltd. (a) | 2,340,000 | 1,219,355 | |
Yue Yuen Industrial (Holdings) Ltd. | 955,500 | 2,951,680 | |
TOTAL BERMUDA | 23,518,660 | ||
British Virgin Islands - 0.0% | |||
Michael Kors Holdings Ltd. (a) | 6,000 | 547,200 | |
Cayman Islands - 11.9% | |||
AAC Technology Holdings, Inc. | 466,000 | 2,602,596 | |
Baidu.com, Inc. sponsored ADR (a) | 9,600 | 1,476,960 | |
Bonjour Holdings Ltd. | 4,872,000 | 835,780 | |
China Liansu Group Holdings Ltd. | 193,000 | 102,562 | |
China Lilang Ltd. | 708,000 | 456,600 | |
China Lodging Group Ltd. ADR (a) | 140,600 | 3,119,914 | |
China Resources Cement Holdings Ltd. | 7,975,706 | 5,534,577 | |
China Sanjiang Fine Chemicals Ltd. | 4,571,000 | 1,998,683 | |
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd. | 7,355,000 | 2,238,864 | |
Cimc Enric Holdings Ltd. | 1,529,000 | 2,212,755 | |
Ctrip.com International Ltd. sponsored ADR (a) | 34,500 | 1,612,530 | |
Daqo New Energy Corp. ADR (a) | 7,500 | 308,025 | |
ENN Energy Holdings Ltd. | 490,000 | 3,425,535 | |
GCL-Poly Energy Holdings Ltd. (a) | 20,914,000 | 6,258,325 | |
Goodbaby International Holdings Ltd. | 910,000 | 498,842 | |
Greatview Aseptic Pack Co. Ltd. | 2,625,000 | 1,601,487 | |
Home Inns & Hotels Management, Inc. sponsored ADR (a) | 17,100 | 485,982 | |
Hosa International Ltd. | 5,102,000 | 1,585,954 | |
Hydoo International Holding Ltd. | 1,226,000 | 494,957 | |
iKang Healthcare Group, Inc. sponsored ADR | 7,000 | 96,110 | |
KWG Property Holding Ltd. | 9,426,500 | 5,216,038 | |
Lee & Man Paper Manufacturing Ltd. | 3,624,000 | 1,967,901 | |
Lifestyle International Holdings Ltd. | 2,716,000 | 5,317,831 | |
Longfor Properties Co. Ltd. | 2,086,000 | 2,695,970 | |
Melco Crown Entertainment Ltd. sponsored ADR | 87,600 | 2,994,168 | |
MGM China Holdings Ltd. | 1,461,600 | 5,090,088 | |
Sands China Ltd. | 1,410,000 | 10,293,630 | |
Silicon Motion Technology Corp. sponsored ADR | 51,000 | 846,090 | |
Sino Biopharmaceutical Ltd. | 2,972,000 | 2,326,861 | |
Sitoy Group Holdings Ltd. | 1,736,000 | 1,041,204 | |
| |||
Shares | Value | ||
SOHO China Ltd. | 2,513,000 | $ 1,999,911 | |
SouFun Holdings Ltd. ADR | 199,600 | 2,349,292 | |
Springland International Holdings Ltd. | 14,623,000 | 5,752,668 | |
Tencent Holdings Ltd. | 401,300 | 25,010,887 | |
Value Partners Group Ltd. | 3,304,000 | 2,122,279 | |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 190,300 | 6,470,200 | |
Xinyi Glass Holdings Ltd. | 1,060,000 | 834,005 | |
Yingde Gases Group Co. Ltd. | 1,993,500 | 2,013,312 | |
Zhen Ding Technology Holding Ltd. | 806,550 | 2,339,531 | |
TOTAL CAYMAN ISLANDS | 123,628,904 | ||
China - 15.3% | |||
Aluminum Corp. of China Ltd. (H Shares) (a) | 9,864,000 | 3,536,521 | |
Angang Steel Co. Ltd. (H Shares) (a) | 2,328,000 | 1,411,282 | |
Anhui Conch Cement Co. Ltd. (H Shares) | 1,006,000 | 3,737,003 | |
Bank of China Ltd. (H Shares) | 35,224,000 | 15,492,663 | |
BBMG Corp. (H Shares) | 592,000 | 416,151 | |
Beijing Jingneng Clean Energy Co. Ltd. (H Shares) | 4,162,000 | 1,787,637 | |
China Communications Construction Co. Ltd. (H Shares) | 7,180,000 | 4,695,322 | |
China Construction Bank Corp. (H Shares) | 32,346,000 | 22,320,678 | |
China Longyuan Power Grid Corp. Ltd. (H Shares) | 2,900,000 | 2,984,928 | |
China Merchants Bank Co. Ltd. (H Shares) | 3,495,500 | 6,239,911 | |
China Pacific Insurance Group Co. Ltd. (H Shares) | 2,953,600 | 9,257,441 | |
China Petroleum & Chemical Corp. (H Shares) | 15,134,000 | 13,435,302 | |
China Railway Construction Corp. Ltd. (H Shares) | 3,205,000 | 2,649,837 | |
China Railway Group Ltd. (H Shares) | 11,729,000 | 5,219,310 | |
China Shenhua Energy Co. Ltd. (H Shares) | 3,172,000 | 8,591,826 | |
China Suntien Green Energy Corp. Ltd. (H Shares) | 5,629,000 | 1,902,241 | |
Chongqing Changan Automobile Co. Ltd. (B Shares) | 378,782 | 683,991 | |
CSR Corp. Ltd. (H Shares) | 8,147,000 | 5,947,674 | |
Guangdong Kelon Electrical Holdings Ltd. Series H (a) | 1,161,000 | 1,376,197 | |
Guangzhou R&F Properties Co. Ltd. (H Shares) | 2,300,800 | 3,003,256 | |
Huadian Fuxin Energy Corp. Ltd. (H Shares) | 7,284,000 | 3,401,038 | |
Huadian Power International Corp. Ltd. (H Shares) | 7,230,000 | 3,926,028 | |
Industrial & Commercial Bank of China Ltd. (H Shares) | 23,113,000 | 13,810,438 | |
Maanshan Iron & Steel Ltd. (H Shares) (a) | 9,098,000 | 1,901,052 | |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 1,390,000 | 10,282,086 | |
Common Stocks - continued | |||
Shares | Value | ||
China - continued | |||
Shanghai Electric Group Co. Ltd. (H Shares) | 4,500,000 | $ 1,764,490 | |
Sinotrans Ltd. (H Shares) | 8,923,000 | 4,925,924 | |
Weichai Power Co. Ltd. (H Shares) | 942,000 | 3,280,558 | |
Yantai Changyu Pioneer Wine Co. Ltd. (B Shares) | 158,910 | 394,152 | |
TOTAL CHINA | 158,374,937 | ||
Hong Kong - 9.9% | |||
AIA Group Ltd. | 5,449,000 | 26,426,380 | |
Champion (REIT) | 6,913,000 | 3,254,561 | |
China Power International Development Ltd. | 5,970,000 | 2,148,382 | |
Dah Chong Hong Holdings Ltd. | 5,930,000 | 3,770,810 | |
Dah Sing Banking Group Ltd. | 697,600 | 1,045,552 | |
Dah Sing Financial Holdings Ltd. | 492,000 | 2,192,533 | |
Far East Horizon Ltd. | 5,223,000 | 3,536,815 | |
Fosun International Ltd. | 2,017,000 | 2,440,292 | |
Fosun International Ltd. rights 5/13/14 (a) | 157,326 | 710 | |
Galaxy Entertainment Group Ltd. | 1,066,000 | 8,366,635 | |
HKT Trust/HKT Ltd. unit | 6,185,000 | 6,469,841 | |
Hutchison Whampoa Ltd. | 1,084,000 | 14,820,681 | |
Hysan Development Co. Ltd. | 1,206,000 | 5,156,605 | |
Lenovo Group Ltd. | 5,094,000 | 5,795,095 | |
Magnificent Estates Ltd. | 7,758,000 | 375,244 | |
PCCW Ltd. | 7,816,000 | 4,173,668 | |
Singamas Container Holdings Ltd. | 5,566,000 | 1,206,106 | |
Techtronic Industries Co. Ltd. | 341,000 | 1,086,386 | |
Vitasoy International Holdings Ltd. | 1,990,000 | 2,725,904 | |
Wheelock and Co. Ltd. | 1,874,000 | 7,710,691 | |
TOTAL HONG KONG | 102,702,891 | ||
India - 10.6% | |||
Apollo Tyres Ltd. | 575,655 | 1,517,996 | |
Axis Bank Ltd. | 195,708 | 4,945,111 | |
Balkrishna Industries Ltd. (a) | 23,349 | 203,663 | |
Bank of Baroda | 220,049 | 2,980,503 | |
Bharat Heavy Electricals Ltd. | 2,129,416 | 6,370,772 | |
Bharat Petroleum Corp. Ltd. | 201,874 | 1,522,548 | |
Bharti Infratel Ltd. (a) | 811,067 | 2,899,886 | |
Cairn India Ltd. | 735,337 | 4,086,018 | |
CESC Ltd. GDR (a) | 73,522 | 554,508 | |
Cox & Kings India Ltd. | 649,546 | 1,625,615 | |
Engineers India Ltd. | 145,293 | 550,555 | |
Havells India Ltd. | 50,414 | 778,506 | |
HCL Technologies Ltd. | 226,216 | 5,261,683 | |
Hexaware Technologies Ltd. | 462,926 | 1,163,935 | |
Hindustan Petroleum Corp. Ltd. | 607,245 | 3,240,352 | |
Housing Development Finance Corp. Ltd. | 685,680 | 10,208,180 | |
IL&FS Transportation Networks Ltd. | 99,469 | 218,101 | |
IL&FS Transportation Networks Ltd. rights (a) | 10,555 | 5,644 | |
Ipca Laboratories Ltd. | 120,951 | 1,720,875 | |
| |||
Shares | Value | ||
Lupin Ltd. | 200,901 | $ 3,428,071 | |
Mahindra & Mahindra Ltd. | 143,129 | 2,549,103 | |
Max India Ltd. | 314,712 | 1,115,045 | |
McLeod Russel India Ltd. | 239,415 | 1,069,359 | |
MindTree Consulting Ltd. | 157,921 | 3,715,195 | |
Mphasis BFL Ltd. (a) | 126,693 | 866,886 | |
MRF Ltd. | 4,544 | 1,546,576 | |
NIIT Technologies Ltd. | 199,257 | 1,340,603 | |
NTPC Ltd. | 1,735,583 | 3,348,008 | |
Persistent Systems Ltd. | 6,275 | 104,802 | |
Petronet LNG Ltd. | 1,133,135 | 2,720,351 | |
Power Finance Corp. Ltd. | 270,139 | 823,428 | |
Punjab National Bank | 246,230 | 3,286,102 | |
Redington India Ltd. | 407,643 | 595,768 | |
Reliance Infrastructure Ltd. (a) | 126,577 | 1,067,347 | |
Rural Electrification Corp. Ltd. | 242,444 | 956,270 | |
Shriram City Union Finance Ltd. | 109,267 | 2,142,043 | |
Sintex Industries Ltd. | 699,960 | 529,772 | |
Sun Pharmaceutical Industries Ltd. | 435,880 | 4,573,072 | |
Tata Consultancy Services Ltd. | 35,939 | 1,304,446 | |
Tata Motors Ltd. | 1,054,376 | 7,293,394 | |
Tata Power Co. Ltd. | 1,170,753 | 1,515,971 | |
The Jammu & Kashmir Bank Ltd. | 129,379 | 3,593,075 | |
UPL Ltd. | 1,231,260 | 5,472,947 | |
Yes Bank Ltd. | 662,853 | 4,843,778 | |
TOTAL INDIA | 109,655,863 | ||
Indonesia - 2.2% | |||
PT Adaro Energy Tbk | 11,081,600 | 1,135,812 | |
PT Bank Mandiri (Persero) Tbk | 7,640,600 | 6,528,252 | |
PT Bank Rakyat Indonesia Tbk | 12,169,600 | 10,420,710 | |
PT BISI International Tbk | 8,183,400 | 435,306 | |
PT Express Transindo Utama Tbk | 3,545,000 | 397,074 | |
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk | 15,597,500 | 3,305,270 | |
PT Tempo Scan Pacific Tbk | 2,966,500 | 744,095 | |
TOTAL INDONESIA | 22,966,519 | ||
Israel - 0.0% | |||
Sarine Technologies Ltd. | 238,000 | 525,851 | |
Japan - 0.7% | |||
Fuji Media Holdings, Inc. | 124,800 | 2,100,854 | |
KDDI Corp. | 41,400 | 2,203,735 | |
SoftBank Corp. | 14,300 | 1,061,642 | |
Suzuki Motor Corp. | 80,900 | 2,085,113 | |
TOTAL JAPAN | 7,451,344 | ||
Korea (South) - 17.5% | |||
AMOREPACIFIC Corp. | 2,056 | 2,656,819 | |
AMOREPACIFIC Group, Inc. | 6,173 | 3,190,768 | |
CJ E&M Corp. (a) | 10,927 | 533,076 | |
CJ O Shopping Co. Ltd. | 3,137 | 1,107,712 | |
Cosmax Bti, Inc. | 2,810 | 114,647 | |
Coway Co. Ltd. | 39,920 | 3,149,240 | |
Common Stocks - continued | |||
Shares | Value | ||
Korea (South) - continued | |||
Daesang Corp. | 69,780 | $ 2,755,807 | |
Dongbu Insurance Co. Ltd. | 49,020 | 2,704,617 | |
Dongwon Industries Co. | 1,731 | 543,713 | |
E1 Corp. | 8,547 | 580,776 | |
Fila Korea Ltd. | 6,492 | 564,932 | |
GAMEVIL, Inc. (a) | 16,444 | 1,112,608 | |
Hanwha Corp. | 95,960 | 2,791,209 | |
Hy-Lok Corp. | 56,906 | 1,655,237 | |
Hyundai Hysco Co. Ltd. | 89,349 | 4,765,395 | |
Hyundai Mobis | 43,058 | 12,295,141 | |
Hyundai Motor Co. | 80,815 | 17,991,918 | |
I-Sens, Inc. (a) | 2,164 | 108,504 | |
Interpark Corp. | 94,121 | 1,052,268 | |
InterPark INT Corp. | 24,125 | 539,432 | |
Kia Motors Corp. | 175,585 | 9,738,671 | |
KEPCO Plant Service & Engineering Co. Ltd. | 50,572 | 3,289,554 | |
Korea Zinc Co. Ltd. | 10,061 | 3,316,011 | |
Kumho Petro Chemical Co. Ltd. | 11,308 | 955,559 | |
LG Household & Health Care Ltd. | 11,864 | 5,420,393 | |
Naver Corp. | 5,950 | 4,250,411 | |
Samsung Electronics Co. Ltd. | 49,333 | 64,131,470 | |
Samsung Fire & Marine Insurance Co. Ltd. | 12,494 | 2,962,956 | |
Shinhan Financial Group Co. Ltd. | 307,030 | 13,403,970 | |
SK Hynix, Inc. (a) | 253,170 | 9,839,101 | |
SK Telecom Co. Ltd. | 14,497 | 3,002,257 | |
Sung Kwang Bend Co. Ltd. | 45,651 | 1,067,149 | |
WeMade Entertainment Co. Ltd. (a) | 2,647 | 115,042 | |
TOTAL KOREA (SOUTH) | 181,706,363 | ||
Malaysia - 3.4% | |||
Glomac Bhd | 1,591,500 | 536,598 | |
Malayan Banking Bhd | 2,660,850 | 8,074,303 | |
Malaysian Plantations Bhd | 1,959,200 | 2,690,334 | |
Media Prima Bhd | 1,418,900 | 1,082,931 | |
SapuraKencana Petroleum Bhd (a) | 2,534,700 | 3,348,523 | |
Sunway Bhd | 1,141,000 | 1,084,169 | |
Tenaga Nasional Bhd | 3,239,100 | 11,814,648 | |
YTL Corp. Bhd | 12,452,700 | 6,145,240 | |
TOTAL MALAYSIA | 34,776,746 | ||
Mauritius - 0.2% | |||
MakeMyTrip Ltd. (a) | 75,000 | 1,589,250 | |
Philippines - 1.6% | |||
Alliance Global Group, Inc. | 7,057,700 | 4,932,078 | |
Holcim Philippines, Inc. | 399,400 | 124,546 | |
Metropolitan Bank & Trust Co. | 1,800,390 | 3,421,044 | |
Philippine National Bank (a) | 78,234 | 152,870 | |
| |||
Shares | Value | ||
Security Bank Corp. | 2,588,018 | $ 6,972,988 | |
Vista Land & Lifescapes, Inc. | 3,810,300 | 515,448 | |
TOTAL PHILIPPINES | 16,118,974 | ||
Singapore - 5.5% | |||
Cordlife Group Ltd. | 562,000 | 531,204 | |
Ezion Holdings Ltd. | 2,730,000 | 4,943,049 | |
First Resources Ltd. | 1,370,000 | 2,808,407 | |
Goodpack Ltd. | 176,000 | 336,923 | |
Keppel Corp. Ltd. | 1,358,000 | 11,406,030 | |
Mapletree Industrial (REIT) | 4,702,496 | 5,401,288 | |
Singapore Telecommunications Ltd. | 4,277,000 | 13,066,052 | |
United Overseas Bank Ltd. | 758,000 | 13,156,321 | |
Wing Tai Holdings Ltd. | 2,343,000 | 3,737,736 | |
Yanlord Land Group Ltd. | 1,742,000 | 1,604,858 | |
TOTAL SINGAPORE | 56,991,868 | ||
Taiwan - 11.8% | |||
Acer, Inc. (a) | 4,356,000 | 2,693,123 | |
Advanced Semiconductor Engineering, Inc. | 5,164,000 | 6,019,762 | |
ASUSTeK Computer, Inc. | 343,000 | 3,547,629 | |
Casetek Holdings | 101,000 | 529,015 | |
Catcher Technology Co. Ltd. | 908,000 | 7,660,606 | |
Cleanaway Co. Ltd. | 92,000 | 521,523 | |
Delta Electronics, Inc. | 921,000 | 5,648,340 | |
Fubon Financial Holding Co. Ltd. | 6,429,000 | 8,311,846 | |
Giant Manufacturing Co. Ltd. | 176,000 | 1,376,937 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 6,449,000 | 18,513,978 | |
HTC Corp. | 465,000 | 2,389,319 | |
King Slide Works Co. Ltd. | 42,000 | 547,181 | |
Merida Industry Co. Ltd. | 148,000 | 991,066 | |
Novatek Microelectronics Corp. | 1,162,000 | 5,373,655 | |
Pegatron Corp. | 1,272,000 | 1,929,157 | |
Sinopac Holdings Co. | 14,126,858 | 6,298,793 | |
Taishin Financial Holdings Co. Ltd. | 14,342,239 | 6,513,688 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 10,263,192 | 40,371,201 | |
Tongtai Machine & Tool Co. Ltd. | 528,000 | 533,855 | |
Vanguard International Semiconductor Corp. | 1,797,000 | 2,454,340 | |
TOTAL TAIWAN | 122,225,014 | ||
Thailand - 4.5% | |||
Charoen Pokphand Foods PCL (For. Reg.) | 2,325,600 | 1,940,396 | |
Delta Electronics PCL (For. Reg.) | 2,722,700 | 4,795,856 | |
Jasmine International Public Co. Ltd. | 4,193,200 | 1,075,512 | |
Kasikornbank PCL (For. Reg.) | 1,360,800 | 8,263,201 | |
Preuksa Real Estate PCL (For. Reg.) | 7,813,300 | 5,408,465 | |
Quality Houses PCL NVDR | 18,966,300 | 1,910,696 | |
Shin Corp. PLC NVDR | 2,755,300 | 6,641,329 | |
Thai Beverage PCL | 13,590,000 | 6,395,549 | |
Thai Tap Water Supply PCL (For. Reg.) | 1,859,600 | 574,660 | |
Common Stocks - continued | |||
Shares | Value | ||
Thailand - continued | |||
Thai Union Frozen Products PCL (For. Reg.) | 2,393,100 | $ 5,176,669 | |
Thanachart Capital PCL (For. Reg.) | 561,600 | 603,078 | |
Total Access Communication PCL NVDR | 740,200 | 2,847,803 | |
Toyo-Thai Corp. PCL | 439,400 | 515,983 | |
TOTAL THAILAND | 46,149,197 | ||
United Kingdom - 0.2% | |||
Standard Chartered PLC (United Kingdom) | 99,098 | 2,144,168 | |
United States of America - 1.3% | |||
Cognizant Technology Solutions Corp. Class A (a) | 120,100 | 5,753,391 | |
Las Vegas Sands Corp. | 98,000 | 7,754,740 | |
TOTAL UNITED STATES OF AMERICA | 13,508,131 | ||
TOTAL COMMON STOCKS (Cost $984,506,551) |
| ||
Money Market Funds - 0.0% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 698 | $ 698 | |
TOTAL INVESTMENT PORTFOLIO - 98.9% (Cost $984,507,249) | 1,024,582,578 | ||
NET OTHER ASSETS (LIABILITIES) - 1.1% | 11,763,657 | ||
NET ASSETS - 100% | $ 1,036,346,235 |
Legend |
(a) Non-income producing |
(b) 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 | $ 3,606 |
Fidelity Securities Lending Cash Central Fund | 4,130 |
Total | $ 7,736 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 142,764,639 | $ 135,471,245 | $ 7,293,394 | $ - |
Consumer Staples | 38,933,159 | 38,933,159 | - | - |
Energy | 47,719,703 | 34,284,401 | 13,435,302 | - |
Financials | 311,934,795 | 269,960,922 | 41,973,873 | - |
Health Care | 19,998,992 | 14,850,046 | 5,148,946 | - |
Industrials | 81,785,129 | 81,779,485 | 5,644 | - |
Information Technology | 249,687,478 | 203,296,515 | 46,390,963 | - |
Materials | 45,041,554 | 41,505,033 | 3,536,521 | - |
Telecommunication Services | 43,441,725 | 40,439,468 | 3,002,257 | - |
Utilities | 43,274,706 | 43,274,706 | - | - |
Money Market Funds | 698 | 698 | - | - |
Total Investments in Securities: | $ 1,024,582,578 | $ 903,795,678 | $ 120,786,900 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 30,572,295 |
Level 2 to Level 1 | $ 6,236,475 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Asia Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $984,506,551) | $ 1,024,581,880 |
|
Fidelity Central Funds (cost $698) | 698 |
|
Total Investments (cost $984,507,249) |
| $ 1,024,582,578 |
Foreign currency held at value (cost $15,854,858) | 15,867,209 | |
Receivable for investments sold | 51,603,430 | |
Receivable for fund shares sold | 595,247 | |
Dividends receivable | 2,672,434 | |
Distributions receivable from Fidelity Central Funds | 2,431 | |
Prepaid expenses | 694 | |
Other receivables | 427,145 | |
Total assets | 1,095,751,168 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 53,822,770 | |
Payable for fund shares redeemed | 872,507 | |
Accrued management fee | 577,148 | |
Notes payable to affiliates | 1,804,000 | |
Other affiliated payables | 224,663 | |
Other payables and accrued expenses | 2,103,845 | |
Total liabilities | 59,404,933 | |
|
|
|
Net Assets | $ 1,036,346,235 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,163,281,802 | |
Undistributed net investment income | 706,262 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (165,746,212) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 38,104,383 | |
Net Assets, for 34,080,557 shares outstanding | $ 1,036,346,235 | |
Net Asset Value, offering price and redemption price per share ($1,036,346,235 ÷ 34,080,557 shares) | $ 30.41 |
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 8,590,285 |
Income from Fidelity Central Funds |
| 7,736 |
Income before foreign taxes withheld |
| 8,598,021 |
Less foreign taxes withheld |
| (902,799) |
Total income |
| 7,695,222 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 3,807,802 | |
Performance adjustment | 2,424 | |
Transfer agent fees | 1,131,127 | |
Accounting and security lending fees | 251,465 | |
Custodian fees and expenses | 300,467 | |
Independent trustees' compensation | 2,217 | |
Registration fees | 21,288 | |
Audit | 56,110 | |
Legal | 2,768 | |
Interest | 1,449 | |
Miscellaneous | 115,891 | |
Total expenses before reductions | 5,693,008 | |
Expense reductions | (3,800) | 5,689,208 |
Net investment income (loss) | 2,006,014 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 41,424,304 | |
Foreign currency transactions | (525,021) | |
Total net realized gain (loss) |
| 40,899,283 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $1,868,760) | (49,547,471) | |
Assets and liabilities in foreign currencies | 70,895 | |
Total change in net unrealized appreciation (depreciation) |
| (49,476,576) |
Net gain (loss) | (8,577,293) | |
Net increase (decrease) in net assets resulting from operations | $ (6,571,279) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,006,014 | $ 17,023,858 |
Net realized gain (loss) | 40,899,283 | 76,782,671 |
Change in net unrealized appreciation (depreciation) | (49,476,576) | 23,648,779 |
Net increase (decrease) in net assets resulting from operations | (6,571,279) | 117,455,308 |
Distributions to shareholders from net investment income | (14,440,334) | (21,400,733) |
Distributions to shareholders from net realized gain | - | (3,801,390) |
Total distributions | (14,440,334) | (25,202,123) |
Share transactions | 33,096,505 | 180,491,279 |
Reinvestment of distributions | 13,734,256 | 24,104,759 |
Cost of shares redeemed | (161,863,164) | (449,851,066) |
Net increase (decrease) in net assets resulting from share transactions | (115,032,403) | (245,255,028) |
Redemption fees | 41,876 | 141,939 |
Total increase (decrease) in net assets | (136,002,140) | (152,859,904) |
|
|
|
Net Assets | ||
Beginning of period | 1,172,348,375 | 1,325,208,279 |
End of period (including undistributed net investment income of $706,262 and undistributed net investment income of $13,140,582, respectively) | $ 1,036,346,235 | $ 1,172,348,375 |
Other Information Shares | ||
Sold | 1,089,808 | 6,104,803 |
Issued in reinvestment of distributions | 448,392 | 828,340 |
Redeemed | (5,385,325) | (15,386,262) |
Net increase (decrease) | (3,847,125) | (8,453,119) |
Financial Highlights
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 30.91 | $ 28.57 | $ 27.32 | $ 29.70 | $ 23.98 | $ 18.50 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .39 | .46 | .50 | .39 | .58 G |
Net realized and unrealized gain (loss) | (.17) | 2.49 | 1.30 | (2.30) | 6.16 | 5.09 |
Total from investment operations | (.11) | 2.88 | 1.76 | (1.80) | 6.55 | 5.67 |
Distributions from net investment income | (.39) | (.46) | (.51) | (.49) | (.43) | (.20) |
Distributions from net realized gain | - | (.08) | - | (.11) | (.40) | - |
Total distributions | (.39) | (.54) | (.51) | (.59) J | (.83) | (.20) |
Redemption fees added to paid in capital D | - I | - I | - I | .01 | - I | .01 |
Net asset value, end of period | $ 30.41 | $ 30.91 | $ 28.57 | $ 27.32 | $ 29.70 | $ 23.98 |
Total Return B, C | (.37)% | 10.19% | 6.60% | (6.20)% | 27.93% | 31.08% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | 1.05% A | 1.08% | .94% | .82% | .78% | 1.14% |
Expenses net of fee waivers, if any | 1.05% A | 1.08% | .94% | .82% | .78% | 1.14% |
Expenses net of all reductions | 1.05% A | 1.05% | .91% | .78% | .74% | .99% |
Net investment income (loss) | .37% A | 1.31% | 1.68% | 1.68% | 1.50% | 2.86% G |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,036,346 | $ 1,172,348 | $ 1,325,208 | $ 1,525,635 | $ 1,717,562 | $ 1,736,852 |
Portfolio turnover rate F | 109% A | 97% | 94% | 115% | 105% | 220% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Investment income per share reflects a large, non-recurring dividend which amounted to $.16. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.09%. H Expense ratios reflect operating expenses of the Fund. 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 Fund 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 Fund. I Amount represents less than $.01 per share. J Total distributions of $.59 per share is comprised of distributions from net investment income of $.485 and distributions from net realized gain of $.105 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Emerging Asia Fund (the Fund) is a fund of Fidelity Investment Trust (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's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets and Liabilities.
Distributions are declared and recorded on the ex-dividend date. 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 96,777,165 |
Gross unrealized depreciation | (57,100,929) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 39,676,236 |
|
|
Tax cost | $ 984,906,342 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (205,285,362) |
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $590,412,113 and $708,446,013, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the MSCI All Country Asia ex Japan Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .70% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .23% of average net assets.
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 $1,127 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 6,877,952 | .31% | $ 1,239 |
Semiannual Report
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 $1,031 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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 $4,130. During the period, there were no securities loaned to FCM.
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $1,660,000. The weighted average interest rate was .57%. The interest expense amounted to $210 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $3,800.
10. 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.
Semiannual Report
Fidelity Emerging Markets Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management 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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Emerging Markets | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 988.10 | $ 5.32 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Class K | .86% |
|
|
|
Actual |
| $ 1,000.00 | $ 989.30 | $ 4.24 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.53 | $ 4.31 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Emerging Markets Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
India | 9.9% |
| |
Brazil | 9.5% |
| |
Korea (South) | 8.9% |
| |
Cayman Islands | 8.7% |
| |
South Africa | 7.6% |
| |
Indonesia | 5.8% |
| |
Mexico | 5.7% |
| |
Taiwan | 5.4% |
| |
Philippines | 4.2% |
| |
Other* | 34.3% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Brazil | 11.7% |
| |
India | 11.4% |
| |
Korea (South) | 8.1% |
| |
Cayman Islands | 7.6% |
| |
South Africa | 6.8% |
| |
Mexico | 6.1% |
| |
Indonesia | 5.5% |
| |
United States of America* | 4.2% |
| |
Russia | 3.9% |
| |
Other | 34.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 99.5 | 99.6 |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5 | 0.4 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 4.6 | 4.6 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.0 | 2.6 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.1 | 1.7 |
Hyundai Motor Co. (Korea (South), Automobiles) | 1.5 | 1.4 |
Itau Unibanco Holding SA sponsored ADR (Brazil, Banks) | 1.5 | 1.4 |
Naspers Ltd. Class N (South Africa, Media) | 1.4 | 1.2 |
Ambev SA sponsored ADR (Brazil, Beverages) | 1.3 | 0.0 |
MTN Group Ltd. (South Africa, Wireless Telecommunication Services) | 1.1 | 0.0 |
Housing Development Finance Corp. Ltd. (India, Thrifts & Mortgage Finance) | 1.0 | 1.0 |
Naver Corp. (Korea (South), Internet Software & Services) | 0.9 | 0.0 |
| 18.4 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 21.1 | 20.6 |
Financials | 20.9 | 26.7 |
Information Technology | 18.1 | 14.5 |
Industrials | 15.3 | 13.1 |
Consumer Staples | 10.3 | 11.2 |
Health Care | 6.1 | 3.9 |
Materials | 3.5 | 5.8 |
Telecommunication Services | 2.3 | 0.4 |
Energy | 1.3 | 2.9 |
Utilities | 0.6 | 0.5 |
Semiannual Report
Fidelity Emerging Markets Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.3% | |||
Shares | Value | ||
Australia - 1.0% | |||
iProperty Group Ltd. (a) | 3,505,485 | $ 8,467,149 | |
SEEK Ltd. | 575,079 | 8,932,633 | |
Sydney Airport unit | 2,285,696 | 8,960,797 | |
TOTAL AUSTRALIA | 26,360,579 | ||
Bailiwick of Jersey - 0.4% | |||
WPP PLC | 480,500 | 10,360,352 | |
Bermuda - 1.2% | |||
Brilliance China Automotive Holdings Ltd. | 8,460,000 | 13,072,547 | |
Credicorp Ltd. (United States) | 135,632 | 20,243,076 | |
TOTAL BERMUDA | 33,315,623 | ||
Brazil - 6.7% | |||
BB Seguridade Participacoes SA | 1,428,800 | 16,743,825 | |
CCR SA | 2,045,200 | 16,005,714 | |
Cielo SA | 1,174,760 | 20,810,862 | |
Estacio Participacoes SA | 1,285,400 | 13,766,275 | |
Iguatemi Empresa de Shopping Centers SA | 1,221,800 | 12,148,136 | |
Kroton Educacional SA | 634,100 | 13,582,068 | |
Linx SA | 420,700 | 9,180,967 | |
Multiplan Empreendimentos Imobiliarios SA | 552,567 | 12,212,356 | |
Odontoprev SA | 2,700,300 | 10,838,742 | |
Qualicorp SA (a) | 1,246,700 | 12,116,152 | |
Souza Cruz SA | 1,437,767 | 13,121,901 | |
Ultrapar Participacoes SA | 682,900 | 17,144,856 | |
Weg SA | 1,164,195 | 14,050,224 | |
TOTAL BRAZIL | 181,722,078 | ||
British Virgin Islands - 0.4% | |||
Mail.Ru Group Ltd. GDR (a)(e) | 418,300 | 11,365,211 | |
Canada - 0.4% | |||
Valeant Pharmaceuticals International (Canada) (a) | 71,600 | 9,574,757 | |
Cayman Islands - 8.7% | |||
51job, Inc. sponsored ADR (a)(d) | 159,991 | 10,789,793 | |
Airtac International Group | 973,000 | 10,466,874 | |
Autohome, Inc. ADR Class A (d) | 289,500 | 9,272,685 | |
Baidu.com, Inc. sponsored ADR (a) | 83,190 | 12,798,782 | |
Baoxin Auto Group Ltd. | 256,000 | 193,165 | |
Biostime International Holdings Ltd. | 1,596,000 | 10,601,642 | |
Bitauto Holdings Ltd. ADR (a) | 351,935 | 12,609,831 | |
Cimc Enric Holdings Ltd. | 6,858,000 | 9,924,836 | |
ENN Energy Holdings Ltd. | 2,154,000 | 15,058,371 | |
Ginko International Co. Ltd. | 340,000 | 5,714,475 | |
Greatview Aseptic Pack Co. Ltd. | 17,580,000 | 10,725,388 | |
Haitian International Holdings Ltd. | 4,435,000 | 8,935,270 | |
Melco Crown Entertainment Ltd. sponsored ADR | 259,800 | 8,879,964 | |
MGM China Holdings Ltd. | 2,595,600 | 9,039,295 | |
Sands China Ltd. | 1,427,000 | 10,417,738 | |
| |||
Shares | Value | ||
Shenzhou International Group Holdings Ltd. | 3,157,000 | $ 10,872,236 | |
SouFun Holdings Ltd. ADR | 881,565 | 10,376,020 | |
Tencent Holdings Ltd. | 918,700 | 57,257,668 | |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 289,922 | 9,857,348 | |
TOTAL CAYMAN ISLANDS | 233,791,381 | ||
Chile - 0.0% | |||
Quinenco SA | 19,344 | 42,853 | |
China - 1.7% | |||
China Pacific Insurance Group Co. Ltd. (H Shares) | 5,013,200 | 15,712,827 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 8,778,700 | 11,572,152 | |
Ping An Insurance (Group) Co. of China Ltd. (H Shares) | 2,676,500 | 19,798,564 | |
TOTAL CHINA | 47,083,543 | ||
Colombia - 0.6% | |||
Grupo de Inversiones Suramerica SA | 777,755 | 15,172,965 | |
Denmark - 0.4% | |||
Novo Nordisk A/S Series B sponsored ADR | 225,799 | 10,249,017 | |
Finland - 0.4% | |||
Kone Oyj (B Shares) (d) | 252,940 | 10,815,241 | |
France - 1.6% | |||
Bureau Veritas SA | 337,500 | 10,301,074 | |
LVMH Moet Hennessy - Louis Vuitton SA | 52,724 | 10,368,536 | |
Pernod Ricard SA | 90,616 | 10,875,701 | |
Safran SA | 156,600 | 10,525,113 | |
TOTAL FRANCE | 42,070,424 | ||
Greece - 1.2% | |||
Folli Follie SA (a) | 311,552 | 10,805,792 | |
Greek Organization of Football Prognostics SA | 763,300 | 12,178,089 | |
Jumbo SA | 620,690 | 10,031,981 | |
TOTAL GREECE | 33,015,862 | ||
Hong Kong - 0.8% | |||
AIA Group Ltd. | 2,267,000 | 10,994,421 | |
Galaxy Entertainment Group Ltd. | 1,267,000 | 9,944,208 | |
TOTAL HONG KONG | 20,938,629 | ||
India - 9.9% | |||
Axis Bank Ltd. | 462,135 | 11,677,135 | |
Bajaj Auto Ltd. | 393,876 | 12,486,943 | |
Grasim Industries Ltd. | 196,409 | 8,676,471 | |
Havells India Ltd. | 632,375 | 9,765,300 | |
HCL Technologies Ltd. | 574,010 | 13,351,217 | |
HDFC Bank Ltd. | 1,760,985 | 22,036,410 | |
Housing Development Finance Corp. Ltd. | 1,849,886 | 27,540,498 | |
ITC Ltd. | 3,533,529 | 19,962,696 | |
Larsen & Toubro Ltd. | 704,714 | 15,120,126 | |
Common Stocks - continued | |||
Shares | Value | ||
India - continued | |||
Lupin Ltd. | 651,882 | $ 11,123,378 | |
Mahindra & Mahindra Ltd. | 852,522 | 15,183,273 | |
Mundra Port and SEZ Ltd. | 3,746,838 | 11,691,203 | |
Sun Pharmaceutical Industries Ltd. | 1,574,506 | 16,519,065 | |
Tata Consultancy Services Ltd. | 641,519 | 23,284,646 | |
Tata Motors Ltd. | 2,264,772 | 15,666,020 | |
Titan Co. Ltd. | 2,400,181 | 10,924,959 | |
Yes Bank Ltd. | 1,656,044 | 12,101,490 | |
Zee Entertainment Enterprises Ltd. | 2,396,184 | 10,432,528 | |
TOTAL INDIA | 267,543,358 | ||
Indonesia - 5.8% | |||
PT ACE Hardware Indonesia Tbk | 155,032,300 | 9,989,972 | |
PT Astra International Tbk | 27,785,700 | 17,844,468 | |
PT Bank Central Asia Tbk | 20,406,100 | 19,415,050 | |
PT Bank Rakyat Indonesia Tbk | 22,111,100 | 18,933,520 | |
PT Global Mediacom Tbk | 60,533,500 | 11,466,364 | |
PT Indocement Tunggal Prakarsa Tbk | 6,279,500 | 11,921,898 | |
PT Jasa Marga Tbk | 22,395,900 | 11,428,950 | |
PT Kalbe Farma Tbk | 94,006,400 | 12,562,374 | |
PT Media Nusantara Citra Tbk | 43,259,200 | 10,158,606 | |
PT Semen Gresik (Persero) Tbk | 9,880,800 | 12,691,249 | |
PT Surya Citra Media Tbk | 42,748,000 | 11,646,949 | |
PT Tower Bersama Infrastructure Tbk | 17,044,500 | 9,582,602 | |
TOTAL INDONESIA | 157,642,002 | ||
Italy - 0.7% | |||
Pirelli & C. S.p.A. | 510,300 | 8,552,214 | |
Prada SpA | 1,403,200 | 11,203,230 | |
TOTAL ITALY | 19,755,444 | ||
Japan - 0.8% | |||
Japan Tobacco, Inc. | 314,900 | 10,337,012 | |
SoftBank Corp. | 149,800 | 11,121,260 | |
TOTAL JAPAN | 21,458,272 | ||
Kenya - 1.2% | |||
East African Breweries Ltd. | 3,012,953 | 10,145,905 | |
Kenya Commercial Bank Ltd. | 16,474,900 | 9,277,900 | |
Safaricom Ltd. | 80,839,300 | 12,170,955 | |
TOTAL KENYA | 31,594,760 | ||
Korea (South) - 8.9% | |||
Grand Korea Leisure Co. Ltd. | 239,160 | 9,965,965 | |
Hotel Shilla Co. | 105,090 | 8,839,726 | |
Hyundai Mobis | 81,520 | 23,277,901 | |
Hyundai Motor Co. | 176,877 | 39,378,289 | |
KEPCO Plant Service & Engineering Co. Ltd. | 149,977 | 9,755,546 | |
Naver Corp. | 34,323 | 24,518,802 | |
Samsung Electronics Co. Ltd. | 96,524 | 125,478,398 | |
TOTAL KOREA (SOUTH) | 241,214,627 | ||
| |||
Shares | Value | ||
Luxembourg - 0.5% | |||
Brait SA | 2,327,865 | $ 12,539,338 | |
Malaysia - 0.9% | |||
Astro Malaysia Holdings Bhd | 9,376,500 | 9,570,497 | |
Public Bank Bhd | 2,352,800 | 14,524,258 | |
TOTAL MALAYSIA | 24,094,755 | ||
Mexico - 5.7% | |||
Alfa SA de CV Series A | 5,467,500 | 14,397,231 | |
Banregio Grupo Financiero S.A.B. de CV | 1,717,293 | 9,924,865 | |
El Puerto de Liverpool S.A.B. de CV Class C | 826,398 | 8,510,489 | |
Fomento Economico Mexicano S.A.B. de CV unit | 2,418,893 | 22,074,230 | |
Gruma S.A.B. de CV Series B (a) | 1,329,264 | 11,743,428 | |
Grupo Aeroportuario del Pacifico SA de CV Series B | 2,032,857 | 12,225,655 | |
Grupo Aeroportuario del Sureste SA de CV Series B | 990,200 | 12,116,047 | |
Grupo Aeroportuario Norte S.A.B. de CV | 2,165,900 | 7,958,175 | |
Grupo Financiero Banorte S.A.B. de CV Series O | 3,159,500 | 20,945,400 | |
Grupo Televisa SA de CV | 3,547,357 | 23,269,892 | |
Megacable Holdings S.A.B. de CV unit | 2,439,452 | 9,675,578 | |
TOTAL MEXICO | 152,840,990 | ||
Netherlands - 0.4% | |||
Yandex NV (a) | 374,303 | 9,919,030 | |
Nigeria - 1.2% | |||
Dangote Cement PLC | 6,694,667 | 9,418,373 | |
Guaranty Trust Bank PLC GDR (Reg. S) | 1,480,077 | 12,432,647 | |
Nigerian Breweries PLC | 10,656,739 | 9,950,270 | |
TOTAL NIGERIA | 31,801,290 | ||
Panama - 0.4% | |||
Copa Holdings SA Class A | 77,776 | 10,521,537 | |
Philippines - 4.2% | |||
Alliance Global Group, Inc. | 19,043,100 | 13,307,741 | |
Ayala Corp. | 833,330 | 11,665,685 | |
DMCI Holdings, Inc. | 7,847,640 | 12,640,730 | |
GT Capital Holdings, Inc. | 511,680 | 9,952,363 | |
International Container Terminal Services, Inc. | 2,372,810 | 5,754,364 | |
LT Group, Inc. | 27,944,300 | 11,472,365 | |
Metropolitan Bank & Trust Co. | 6,127,968 | 11,644,170 | |
Security Bank Corp. | 4,411,880 | 11,887,084 | |
SM Investments Corp. | 801,592 | 13,037,671 | |
SM Prime Holdings, Inc. | 35,546,700 | 13,014,518 | |
TOTAL PHILIPPINES | 114,376,691 | ||
Russia - 2.4% | |||
Magnit OJSC GDR (Reg. S) | 425,734 | 20,030,785 | |
Common Stocks - continued | |||
Shares | Value | ||
Russia - continued | |||
NOVATEK OAO GDR (Reg. S) | 185,300 | $ 19,141,490 | |
Sberbank (Savings Bank of the Russian Federation) | 11,952,100 | 24,323,572 | |
TOTAL RUSSIA | 63,495,847 | ||
South Africa - 7.6% | |||
Aspen Pharmacare Holdings Ltd. | 693,290 | 18,449,732 | |
Bidvest Group Ltd. | 624,639 | 17,129,257 | |
Clicks Group Ltd. | 1,815,527 | 11,070,392 | |
Discovery Holdings Ltd. | 1,576,674 | 13,667,855 | |
Life Healthcare Group Holdings Ltd. | 3,722,564 | 14,779,858 | |
Mr Price Group Ltd. | 914,488 | 13,760,130 | |
MTN Group Ltd. | 1,497,400 | 30,004,933 | |
Nampak Ltd. | 3,615,100 | 13,470,075 | |
Naspers Ltd. Class N | 409,612 | 38,623,174 | |
Remgro Ltd. | 833,100 | 16,760,193 | |
Shoprite Holdings Ltd. | 995,658 | 16,627,266 | |
TOTAL SOUTH AFRICA | 204,342,865 | ||
Sweden - 0.7% | |||
Atlas Copco AB (A Shares) (d) | 351,000 | 10,159,361 | |
Investment AB Kinnevik (B Shares) | 239,300 | 8,409,469 | |
TOTAL SWEDEN | 18,568,830 | ||
Switzerland - 1.4% | |||
Compagnie Financiere Richemont SA Series A | 104,176 | 10,570,295 | |
Dufry AG (a)(d) | 49,980 | 8,257,121 | |
SGS SA (Reg.) | 4,100 | 10,225,543 | |
Swatch Group AG (Bearer) | 15,800 | 10,134,189 | |
TOTAL SWITZERLAND | 39,187,148 | ||
Taiwan - 5.4% | |||
Delta Electronics, Inc. | 2,585,000 | 15,853,376 | |
ECLAT Textile Co. Ltd. | 839,000 | 9,178,366 | |
Giant Manufacturing Co. Ltd. | 1,392,000 | 10,890,322 | |
HIWIN Technologies Corp. | 1,001,000 | 9,523,694 | |
Merida Industry Co. Ltd. | 1,653,000 | 11,069,135 | |
St.Shine Optical Co. Ltd. | 468,000 | 9,913,709 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 20,384,000 | 80,182,321 | |
TOTAL TAIWAN | 146,610,923 | ||
Thailand - 2.5% | |||
Airports of Thailand PCL (For. Reg.) | 2,138,700 | 12,887,716 | |
Bangkok Dusit Medical Service PCL (For. Reg.) | 22,949,000 | 10,495,834 | |
Central Pattana PCL (For. Reg.) | 8,216,100 | 11,488,830 | |
Kasikornbank PCL (For. Reg.) | 3,409,800 | 20,705,368 | |
Minor International PCL (For. Reg.) | 14,573,100 | 11,078,438 | |
TOTAL THAILAND | 66,656,186 | ||
| |||
Shares | Value | ||
Togo - 0.1% | |||
Ecobank Transnational, Inc. | 27,958,935 | $ 2,349,490 | |
Turkey - 2.0% | |||
Anadolu Hayat Sigorta A/S | 1,993,428 | 4,172,741 | |
Coca-Cola Icecek Sanayi A/S | 492,327 | 11,529,715 | |
Enka Insaat ve Sanayi A/S | 4,180,349 | 12,670,424 | |
TAV Havalimanlari Holding A/S | 1,612,000 | 12,901,802 | |
Tofas Turk Otomobil Fabrikasi A/S | 2,012,758 | 12,296,454 | |
TOTAL TURKEY | 53,571,136 | ||
United Arab Emirates - 0.4% | |||
First Gulf Bank PJSC | 2,112,578 | 9,979,234 | |
United Kingdom - 4.1% | |||
Aberdeen Asset Management PLC | 1,333,300 | 9,832,996 | |
Alabama Noor Hospitals Group PLC | 555,910 | 9,367,213 | |
British American Tobacco PLC (United Kingdom) | 195,700 | 11,300,695 | |
Burberry Group PLC | 401,000 | 10,054,169 | |
Diageo PLC | 325,297 | 9,967,041 | |
Intertek Group PLC | 209,818 | 10,294,700 | |
Johnson Matthey PLC | 168,934 | 9,335,518 | |
Meggitt PLC | 1,120,800 | 9,020,874 | |
Mondi PLC | 634,060 | 10,518,123 | |
Prudential PLC | 465,215 | 10,694,891 | |
Rolls-Royce Group PLC | 611,245 | 10,836,274 | |
TOTAL UNITED KINGDOM | 111,222,494 | ||
United States of America - 3.6% | |||
Colgate-Palmolive Co. | 171,428 | 11,537,104 | |
FMC Corp. | 141,524 | 10,897,348 | |
Google, Inc. Class C (a) | 16,950 | 8,926,887 | |
Kansas City Southern | 109,136 | 11,009,640 | |
MasterCard, Inc. Class A | 149,900 | 11,025,145 | |
Mead Johnson Nutrition Co. Class A | 130,188 | 11,490,393 | |
Philip Morris International, Inc. | 124,787 | 10,660,553 | |
Visa, Inc. Class A | 51,700 | 10,474,937 | |
Yahoo!, Inc. (a) | 320,000 | 11,504,000 | |
TOTAL UNITED STATES OF AMERICA | 97,526,007 | ||
TOTAL COMMON STOCKS (Cost $2,298,701,664) |
| ||
Nonconvertible Preferred Stocks - 3.2% | |||
|
|
|
|
Brazil - 2.8% | |||
Ambev SA sponsored ADR | 4,789,670 | 34,725,108 | |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 18,159 | 863,642 | |
Itau Unibanco Holding SA sponsored ADR | 2,405,126 | 39,347,861 | |
TOTAL BRAZIL | 74,936,611 | ||
Colombia - 0.4% | |||
Grupo Aval Acciones y Valores SA | 14,681,180 | 9,931,113 | |
Nonconvertible Preferred Stocks - continued | |||
Shares | Value | ||
United Kingdom - 0.0% | |||
Rolls-Royce Group PLC (C Shares) | 86,047,430 | $ 145,282 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $88,473,435) |
| ||
Money Market Funds - 1.4% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 21,013,404 | 21,013,404 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 17,454,405 | 17,454,405 | |
TOTAL MONEY MARKET FUNDS (Cost $38,467,809) |
| ||
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $2,425,642,908) | 2,718,171,584 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (22,997,138) | ||
NET ASSETS - 100% | $ 2,695,174,446 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 $11,365,211 or 0.4% of net assets. |
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 | $ 8,034 |
Fidelity Securities Lending Cash Central Fund | 100,907 |
Total | $ 108,941 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 567,467,902 | $ 530,516,571 | $ 36,951,331 | $ - |
Consumer Staples | 280,087,844 | 258,820,108 | 21,267,736 | - |
Energy | 36,286,346 | 36,286,346 | - | - |
Financials | 565,774,266 | 521,365,830 | 44,408,436 | - |
Health Care | 161,561,654 | 150,438,276 | 11,123,378 | - |
Industrials | 406,275,265 | 406,275,265 | - | - |
Information Technology | 486,657,934 | 406,475,613 | 80,182,321 | - |
Materials | 97,654,443 | 88,977,972 | 8,676,471 | - |
Telecommunication Services | 62,879,750 | 62,879,750 | - | - |
Utilities | 15,058,371 | 15,058,371 | - | - |
Money Market Funds | 38,467,809 | 38,467,809 | - | - |
Total Investments in Securities: | $ 2,718,171,584 | $ 2,515,561,911 | $ 202,609,673 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 40,035,725 |
Level 2 to Level 1 | $ 9,972,223 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Emerging Markets Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $16,469,030) - See accompanying schedule: Unaffiliated issuers (cost $2,387,175,099) | $ 2,679,703,775 |
|
Fidelity Central Funds (cost $38,467,809) | 38,467,809 |
|
Total Investments (cost $2,425,642,908) |
| $ 2,718,171,584 |
Foreign currency held at value (cost $1,027,451) | 1,020,520 | |
Receivable for investments sold | 34,889,643 | |
Receivable for fund shares sold | 1,598,667 | |
Dividends receivable | 5,599,165 | |
Distributions receivable from Fidelity Central Funds | 17,628 | |
Prepaid expenses | 1,706 | |
Other receivables | 1,764,032 | |
Total assets | 2,763,062,945 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 41,853,567 | |
Payable for fund shares redeemed | 1,300,905 | |
Accrued management fee | 1,585,020 | |
Other affiliated payables | 589,382 | |
Other payables and accrued expenses | 5,105,220 | |
Collateral on securities loaned, at value | 17,454,405 | |
Total liabilities | 67,888,499 | |
|
|
|
Net Assets | $ 2,695,174,446 | |
Net Assets consist of: |
| |
Paid in capital | $ 2,483,403,201 | |
Undistributed net investment income | 5,239,757 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (80,891,857) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 287,423,345 | |
Net Assets | $ 2,695,174,446 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Emerging Markets: | $ 24.12 | |
|
|
|
Class K: | $ 24.13 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 23,958,483 |
Interest |
| 74 |
Income from Fidelity Central Funds |
| 108,941 |
Income before foreign taxes withheld |
| 24,067,498 |
Less foreign taxes withheld |
| (2,544,603) |
Total income |
| 21,522,895 |
|
|
|
Expenses | ||
Management fee | $ 9,364,559 | |
Transfer agent fees | 2,970,795 | |
Accounting and security lending fees | 582,454 | |
Custodian fees and expenses | 742,486 | |
Independent trustees' compensation | 5,318 | |
Registration fees | 49,313 | |
Audit | 65,257 | |
Legal | 6,193 | |
Interest | 1,559 | |
Miscellaneous | 96,497 | |
Total expenses before reductions | 13,884,431 | |
Expense reductions | (14,065) | 13,870,366 |
Net investment income (loss) | 7,652,529 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (26,972,719) | |
Foreign currency transactions | (1,018,763) | |
Total net realized gain (loss) |
| (27,991,482) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $3,290,254) | (17,462,012) | |
Assets and liabilities in foreign currencies | 249,702 | |
Total change in net unrealized appreciation (depreciation) |
| (17,212,310) |
Net gain (loss) | (45,203,792) | |
Net increase (decrease) in net assets resulting from operations | $ (37,551,263) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 7,652,529 | $ 24,555,630 |
Net realized gain (loss) | (27,991,482) | 275,022,620 |
Change in net unrealized appreciation (depreciation) | (17,212,310) | 15,366,762 |
Net increase (decrease) in net assets resulting from operations | (37,551,263) | 314,945,012 |
Distributions to shareholders from net investment income | (2,412,291) | (39,208,001) |
Share transactions - net increase (decrease) | (53,875,180) | (299,270,748) |
Redemption fees | 306,696 | 565,621 |
Total increase (decrease) in net assets | (93,532,038) | (22,968,116) |
|
|
|
Net Assets | ||
Beginning of period | 2,788,706,484 | 2,811,674,600 |
End of period (including undistributed net investment income of $5,239,757 and distributions in excess of net investment income of $481, respectively) | $ 2,695,174,446 | $ 2,788,706,484 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Emerging Markets
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.43 | $ 22.15 | $ 22.23 | $ 25.72 | $ 20.68 | $ 13.71 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .06 | .20 | .33 | .35 | .23 | .17 |
Net realized and unrealized gain (loss) | (.35) | 2.38 | (.11) | (3.48) | 5.05 | 7.03 |
Total from investment operations | (.29) | 2.58 | .22 | (3.13) | 5.28 | 7.20 |
Distributions from net investment income | (.02) | (.30) | (.30) | (.24) | (.12) | (.24) |
Distributions from net realized gain | - | - | - | (.13) | (.14) | - |
Total distributions | (.02) | (.30) | (.30) | (.37) | (.25) I | (.24) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 24.12 | $ 24.43 | $ 22.15 | $ 22.23 | $ 25.72 | $ 20.68 |
Total Return B, C | (1.19)% | 11.78% | 1.03% | (12.33)% | 25.76% | 53.95% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.08% A | 1.08% | 1.09% | 1.07% | 1.14% | 1.16% |
Expenses net of fee waivers, if any | 1.08% A | 1.08% | 1.09% | 1.07% | 1.14% | 1.16% |
Expenses net of all reductions | 1.08% A | 1.03% | 1.03% | 1.01% | 1.09% | 1.10% |
Net investment income (loss) | .53% A | .85% | 1.50% | 1.38% | 1.00% | 1.09% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $2,159,453 | $ 2,241,338 | $ 2,203,756 | $ 2,907,884 | $ 3,975,342 | $ 3,649,582 |
Portfolio turnover rate F | 98% A | 119% | 176% | 122% | 85% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.25 per share is comprised of distributions from net investment income of $.116 and distributions from net realized gain of $.135 per share. |
Financial Highlights - Class K
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 24.42 | $ 22.15 | $ 22.23 | $ 25.75 | $ 20.69 | $ 13.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .09 | .25 | .37 | .40 | .28 | .22 |
Net realized and unrealized gain (loss) | (.35) | 2.38 | (.10) | (3.48) | 5.05 | 7.02 |
Total from investment operations | (.26) | 2.63 | .27 | (3.08) | 5.33 | 7.24 |
Distributions from net investment income | (.03) | (.36) | (.35) | (.32) | (.15) | (.28) |
Distributions from net realized gain | - | - | - | (.13) | (.14) | - |
Total distributions | (.03) | (.36) | (.35) | (.45) | (.28) I | (.28) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 24.13 | $ 24.42 | $ 22.15 | $ 22.23 | $ 25.75 | $ 20.69 |
Total Return B, C | (1.07)% | 12.01% | 1.25% | (12.17)% | 26.03% | 54.44% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .86% A | .87% | .87% | .87% | .90% | .91% |
Expenses net of fee waivers, if any | .86% A | .87% | .87% | .87% | .90% | .91% |
Expenses net of all reductions | .86% A | .82% | .81% | .80% | .84% | .84% |
Net investment income (loss) | .75% A | 1.07% | 1.72% | 1.58% | 1.24% | 1.35% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 535,721 | $ 547,369 | $ 607,919 | $ 497,821 | $ 888,629 | $ 270,075 |
Portfolio turnover rate F | 98% A | 119% | 176% | 122% | 85% | 88% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H Amount represents less than $.01 per share. I Total distributions of $.28 per share is comprised of distributions from net investment income of $.148 and distributions from net realized gain of $.135 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Emerging Markets Fund (the Fund) is a fund of Fidelity Investment Trust (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 Emerging Markets and Class K shares, each of which has equal rights as to assets and voting privileges. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 371,977,854 |
Gross unrealized depreciation | (93,366,465) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 278,611,389 |
|
|
Tax cost | $ 2,439,560,195 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (36,593,468) |
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,303,168,976 and $1,359,861,470, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% of the Fund's average net assets.
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 Emerging Markets. FIIOC receives an asset-based fee of Class K's average net assets. 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 |
Emerging Markets | $ 2,850,527 | .27 |
Class K | 120,268 | .05 |
| $ 2,970,795 |
|
* 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 $2,286 for the period.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 11,284,563 | .31% | $ 1,559 |
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 $2,493 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $100,907. 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 uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $132.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $13,933.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Emerging Markets | $ 1,743,197 | $ 29,610,169 |
Class K | 669,094 | 9,597,832 |
Total | $ 2,412,291 | $ 39,208,001 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Emerging Markets |
|
|
|
|
Shares sold | 10,818,352 | 23,439,766 | $ 256,057,724 | $ 534,752,122 |
Reinvestment of distributions | 57,239 | 1,145,115 | 1,363,275 | 25,804,455 |
Shares redeemed | (13,093,103) | (32,317,744) | (306,912,890) | (744,356,372) |
Net increase (decrease) | (2,217,512) | (7,732,863) | $ (49,491,891) | $ (183,799,795) |
Class K |
|
|
|
|
Shares sold | 3,524,529 | 6,249,509 | $ 83,751,528 | $ 144,545,998 |
Reinvestment of distributions | 28,063 | 426,903 | 669,094 | 9,597,831 |
Shares redeemed | (3,763,224) | (11,706,525) | (88,803,911) | (269,614,782) |
Net increase (decrease) | (210,632) | (5,030,113) | $ (4,383,289) | $ (115,470,953) |
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.
Semiannual Report
Fidelity Europe Fund
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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2013 to April 30, 2014) for Europe, and for the period (March 18, 2014 to April 30, 2014) for Class A, Class T, Class B, Class C and Institutional Class. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.29% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.50 | $ 1.57 C |
HypotheticalA |
| $ 1,000.00 | $ 1,018.40 | $ 6.46 D |
Class T | 1.57% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.00 | $ 1.91 C |
HypotheticalA |
| $ 1,000.00 | $ 1,017.01 | $ 7.85 D |
Class B | 2.05% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.50 | $ 2.50 C |
HypotheticalA |
| $ 1,000.00 | $ 1,014.63 | $ 10.24 D |
Class C | 2.03% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,019.50 | $ 2.47 C |
HypotheticalA |
| $ 1,000.00 | $ 1,014.73 | $ 10.14 D |
Europe | .96% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,077.80 | $ 4.95 C |
HypotheticalA |
| $ 1,000.00 | $ 1,020.03 | $ 4.81 D |
Institutional Class | .95% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,020.80 | $ 1.16 C |
HypotheticalA |
| $ 1,000.00 | $ 1,020.08 | $ 4.76 D |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
C Actual 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) for Europe, and multiplied by 44/365 (to reflect the period March 18, 2014 to April 30, 2014) for Class A, Class T, Class B, Class C and Institutional Class.
D Hypothetical 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).
Semiannual Report
Fidelity Europe Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
United Kingdom | 30.4% |
| |
Germany | 14.5% |
| |
France | 13.4% |
| |
Switzerland | 11.7% |
| |
United States of America* | 4.2% |
| |
Sweden | 3.4% |
| |
Ireland | 3.0% |
| |
Italy | 2.9% |
| |
Belgium | 2.9% |
| |
Other | 13.6% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
United Kingdom | 30.5% |
| |
France | 14.7% |
| |
Germany | 13.2% |
| |
Switzerland | 12.8% |
| |
United States of America* | 4.7% |
| |
Italy | 3.5% |
| |
Finland | 3.0% |
| |
Ireland | 2.9% |
| |
Belgium | 2.8% |
| |
Other | 11.9% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 97.2 | 97.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 2.8 | 2.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Nestle SA (Switzerland, Food Products) | 3.7 | 3.6 |
Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 3.2 | 3.3 |
Total SA (France, Oil, Gas & Consumable Fuels) | 2.8 | 2.5 |
British American Tobacco PLC (United Kingdom) (United Kingdom, Tobacco) | 2.2 | 2.2 |
GlaxoSmithKline PLC (United Kingdom, Pharmaceuticals) | 2.1 | 2.1 |
Bayer AG (Germany, Pharmaceuticals) | 1.8 | 1.7 |
BHP Billiton PLC (United Kingdom, Metals & Mining) | 1.7 | 1.5 |
BASF AG (Germany, Chemicals) | 1.7 | 1.7 |
Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.7 | 1.6 |
Royal Dutch Shell PLC Class B (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 1.6 | 1.8 |
| 22.5 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 22.1 | 19.9 |
Consumer Staples | 13.8 | 15.9 |
Consumer Discretionary | 13.5 | 14.9 |
Industrials | 13.5 | 15.1 |
Health Care | 12.3 | 11.5 |
Materials | 8.5 | 6.5 |
Energy | 7.9 | 6.9 |
Telecommunication Services | 3.0 | 3.5 |
Information Technology | 1.6 | 2.3 |
Utilities | 1.0 | 0.8 |
Semiannual Report
Fidelity Europe Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% | |||
Shares | Value | ||
Austria - 1.1% | |||
Andritz AG | 137,700 | $ 8,546,089 | |
Erste Group Bank AG | 248,647 | 8,344,593 | |
TOTAL AUSTRIA | 16,890,682 | ||
Bailiwick of Jersey - 0.3% | |||
Informa PLC | 578,372 | 4,709,772 | |
Belgium - 2.9% | |||
Anheuser-Busch InBev SA NV | 240,100 | 26,169,914 | |
KBC Groupe SA | 176,345 | 10,742,680 | |
UCB SA | 106,800 | 8,755,305 | |
TOTAL BELGIUM | 45,667,899 | ||
British Virgin Islands - 0.1% | |||
Mail.Ru Group Ltd. GDR (Reg. S) (a) | 36,485 | 991,297 | |
Canada - 0.9% | |||
First Quantum Minerals Ltd. | 212,900 | 4,240,324 | |
Suncor Energy, Inc. | 253,700 | 9,786,448 | |
TOTAL CANADA | 14,026,772 | ||
Denmark - 2.5% | |||
Coloplast A/S Series B | 101,200 | 8,491,019 | |
Novo Nordisk A/S Series B | 548,300 | 24,885,154 | |
Vestas Wind Systems A/S (a) | 143,800 | 6,382,796 | |
TOTAL DENMARK | 39,758,969 | ||
Finland - 2.2% | |||
Amer Group PLC (A Shares) | 299,800 | 6,189,002 | |
Kesko Oyj | 147,300 | 6,016,260 | |
Raisio Group PLC (V Shares) | 744,500 | 4,864,875 | |
Rakentajain Konevuokraamo Oyj (B Shares) | 313,690 | 6,984,925 | |
Sampo Oyj (A Shares) (d) | 215,700 | 10,710,207 | |
TOTAL FINLAND | 34,765,269 | ||
France - 13.4% | |||
Atos Origin SA | 92,211 | 7,961,017 | |
AXA SA | 646,600 | 16,842,311 | |
BNP Paribas SA | 321,916 | 24,166,076 | |
Bureau Veritas SA | 346,800 | 10,584,926 | |
Christian Dior SA (d) | 106,595 | 21,909,100 | |
GDF Suez | 641,150 | 16,166,653 | |
Ipsos SA | 181,300 | 7,027,652 | |
Kering SA (d) | 52,800 | 11,676,382 | |
Legrand SA | 187,650 | 12,105,635 | |
Numericable Group SA (a) | 99,200 | 4,734,304 | |
Publicis Groupe SA | 130,891 | 11,149,726 | |
Rexel SA | 374,252 | 9,449,777 | |
Technip SA | 109,400 | 12,309,041 | |
Total SA (a) | 624,600 | 44,686,517 | |
TOTAL FRANCE | 210,769,117 | ||
| |||
Shares | Value | ||
Germany - 13.1% | |||
adidas AG | 95,900 | $ 10,235,295 | |
BASF AG | 233,733 | 27,053,803 | |
Bayer AG (d) | 206,700 | 28,676,525 | |
Beiersdorf AG | 78,200 | 7,839,543 | |
CompuGroup Medical AG | 259,600 | 6,918,598 | |
Continental AG (d) | 54,600 | 12,790,271 | |
CTS Eventim AG | 120,897 | 7,698,644 | |
Daimler AG (Germany) | 267,562 | 24,770,319 | |
Deutsche Boerse AG | 131,800 | 9,652,796 | |
Deutsche Post AG | 367,777 | 13,845,238 | |
Deutsche Wohnen AG (a) | 390,089 | 8,171,969 | |
GEA Group AG | 183,375 | 8,203,299 | |
HeidelbergCement Finance AG | 124,334 | 10,784,373 | |
KION Group AG | 168,478 | 7,963,452 | |
Linde AG | 77,700 | 16,110,276 | |
MLP AG | 866,000 | 5,887,081 | |
TOTAL GERMANY | 206,601,482 | ||
Ireland - 3.0% | |||
Actavis PLC (a) | 33,000 | 6,742,890 | |
CRH PLC | 426,700 | 12,422,772 | |
DCC PLC (United Kingdom) | 149,700 | 7,666,013 | |
Greencore Group PLC | 1,417,530 | 6,249,057 | |
Kingspan Group PLC (United Kingdom) | 387,000 | 7,275,055 | |
Ryanair Holdings PLC sponsored ADR (a) | 125,900 | 6,733,132 | |
TOTAL IRELAND | 47,088,919 | ||
Israel - 0.4% | |||
Teva Pharmaceutical Industries Ltd. sponsored ADR | 138,300 | 6,757,338 | |
Italy - 2.9% | |||
Astaldi SpA | 747,500 | 8,088,944 | |
Azimut Holding SpA | 191,200 | 5,955,117 | |
Banca Popolare dell'Emilia Romagna (a)(d) | 328,100 | 3,771,245 | |
MARR SpA | 448,069 | 8,671,718 | |
Prada SpA | 636,500 | 5,081,853 | |
Prysmian SpA | 296,800 | 7,716,485 | |
World Duty Free SpA (a) | 485,624 | 6,504,868 | |
TOTAL ITALY | 45,790,230 | ||
Netherlands - 2.5% | |||
ING Groep NV (Certificaten Van Aandelen) (a) | 1,119,000 | 15,995,955 | |
Koninklijke Philips Electronics NV | 409,600 | 13,112,603 | |
Royal DSM NV | 133,300 | 9,557,377 | |
TOTAL NETHERLANDS | 38,665,935 | ||
Norway - 1.4% | |||
DNB ASA | 578,600 | 10,230,113 | |
Telenor ASA | 522,800 | 12,268,997 | |
TOTAL NORWAY | 22,499,110 | ||
Common Stocks - continued | |||
Shares | Value | ||
South Africa - 0.4% | |||
Naspers Ltd. Class N | 63,700 | $ 6,006,407 | |
Spain - 1.8% | |||
Criteria CaixaCorp SA | 2,006,638 | 12,221,362 | |
Hispania Activos Inmobiliarios SA (a) | 356,700 | 5,017,959 | |
Repsol YPF SA | 439,967 | 11,841,532 | |
TOTAL SPAIN | 29,080,853 | ||
Sweden - 3.4% | |||
AF AB (B Shares) | 186,388 | 6,736,363 | |
Investment AB Kinnevik (B Shares) | 213,500 | 7,502,807 | |
Nordea Bank AB | 1,169,800 | 16,902,388 | |
Svenska Handelsbanken AB (A Shares) | 262,700 | 13,183,078 | |
Swedish Match Co. AB | 262,200 | 8,988,401 | |
TOTAL SWEDEN | 53,313,037 | ||
Switzerland - 11.7% | |||
Aryzta AG | 112,960 | 10,428,360 | |
Baloise Holdings AG | 66,620 | 8,099,466 | |
Nestle SA | 751,836 | 58,105,107 | |
Partners Group Holding AG | 30,301 | 8,290,513 | |
Roche Holding AG (participation certificate) | 170,679 | 50,068,052 | |
Schindler Holding AG (participation certificate) | 52,076 | 8,059,029 | |
Syngenta AG (Switzerland) | 34,489 | 13,657,356 | |
UBS AG | 247,396 | 5,174,010 | |
UBS AG (NY Shares) | 705,900 | 14,760,369 | |
Vontobel Holdings AG | 200,247 | 7,838,324 | |
TOTAL SWITZERLAND | 184,480,586 | ||
United Kingdom - 30.4% | |||
Aberdeen Asset Management PLC | 1,324,157 | 9,765,567 | |
Associated British Foods PLC | 189,286 | 9,495,033 | |
AstraZeneca PLC sponsored ADR | 73,100 | 5,778,555 | |
Babcock International Group PLC | 408,200 | 8,229,106 | |
Babcock International Group PLC rights 5/6/14 (a) | 157,000 | 1,060,315 | |
Barclays PLC | 5,754,420 | 24,571,658 | |
BG Group PLC | 1,088,700 | 22,021,170 | |
BHP Billiton PLC | 838,806 | 27,231,323 | |
Brit PLC (a) | 1,544,900 | 5,549,391 | |
British American Tobacco PLC (United Kingdom) | 601,000 | 34,704,739 | |
BT Group PLC | 2,593,900 | 16,192,809 | |
Bunzl PLC | 330,000 | 9,366,061 | |
Compass Group PLC | 823,400 | 13,095,953 | |
Dechra Pharmaceuticals PLC | 515,500 | 6,005,554 | |
Diageo PLC | 674,607 | 20,669,835 | |
Elementis PLC | 1,483,000 | 6,943,307 | |
Exova Group Ltd. PLC (a) | 100 | 372 | |
| |||
Shares | Value | ||
Galliford Try PLC | 293,110 | $ 5,879,257 | |
GlaxoSmithKline PLC | 1,172,741 | 32,403,494 | |
HSBC Holdings PLC (United Kingdom) | 967,294 | 9,883,445 | |
ICAP PLC | 1,157,901 | 8,095,655 | |
IMI PLC | 280,638 | 7,107,438 | |
ITV PLC | 3,296,200 | 10,128,853 | |
Jazztel PLC (a) | 589,100 | 9,039,204 | |
Kingfisher PLC | 1,598,500 | 11,284,132 | |
London Stock Exchange Group PLC | 265,700 | 8,128,775 | |
Meggitt PLC | 959,097 | 7,719,391 | |
Mondi PLC | 402,400 | 6,675,225 | |
Next PLC | 95,000 | 10,457,950 | |
Prudential PLC | 994,030 | 22,851,892 | |
Rolls-Royce Group PLC | 813,401 | 14,420,136 | |
Royal & Sun Alliance Insurance Group PLC | 5,731,825 | 9,498,578 | |
Royal Dutch Shell PLC Class B (United Kingdom) | 591,435 | 25,112,928 | |
Schroders PLC | 176,500 | 7,616,946 | |
SIG PLC | 1,842,708 | 5,958,002 | |
Smith & Nephew PLC | 651,032 | 10,151,641 | |
Spectris PLC | 183,400 | 6,889,769 | |
St. James's Place Capital PLC | 469,300 | 6,101,219 | |
Taylor Wimpey PLC | 2,604,174 | 4,621,129 | |
Unite Group PLC | 1,184,916 | 8,452,586 | |
Vodafone Group PLC | 2,682,825 | 10,185,644 | |
William Hill PLC | 88 | 527 | |
TOTAL UNITED KINGDOM | 479,344,564 | ||
United States of America - 1.4% | |||
Colgate-Palmolive Co. | 99,525 | 6,698,033 | |
Oracle Corp. | 214,600 | 8,772,848 | |
Philip Morris International, Inc. | 77,300 | 6,603,739 | |
TOTAL UNITED STATES OF AMERICA | 22,074,620 | ||
TOTAL COMMON STOCKS (Cost $1,239,006,129) |
| ||
Nonconvertible Preferred Stocks - 1.4% | |||
|
|
|
|
Germany - 1.4% | |||
Volkswagen AG | 80,500 | 21,677,413 | |
United Kingdom - 0.0% | |||
Rolls Royce Group PLC (C Shares) | 269,473,203 | 454,978 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $16,673,784) |
| ||
Money Market Funds - 8.1% | |||
Shares | Value | ||
Fidelity Cash Central Fund, 0.11% (b) | 43,502,701 | $ 43,502,701 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 83,829,030 | 83,829,030 | |
TOTAL MONEY MARKET FUNDS (Cost $127,331,731) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $1,383,011,644) | 1,658,746,980 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (82,997,688) | ||
NET ASSETS - 100% | $ 1,575,749,292 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 15,748 |
Fidelity Securities Lending Cash Central Fund | 388,772 |
Total | $ 404,520 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the tables 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: | ||||
Consumer Discretionary | $ 211,749,552 | $ 211,749,552 | $ - | $ - |
Consumer Staples | 215,504,614 | 75,855,019 | 139,649,595 | - |
Energy | 125,757,636 | 55,958,191 | 69,799,445 | - |
Financials | 349,976,131 | 271,499,171 | 78,476,960 | - |
Health Care | 195,634,125 | 78,125,784 | 117,508,341 | - |
Industrials | 209,648,817 | 196,536,214 | 13,112,603 | - |
Information Technology | 24,614,931 | 24,614,931 | - | - |
Materials | 134,676,136 | 81,364,685 | 53,311,451 | - |
Telecommunication Services | 47,686,654 | 21,308,201 | 26,378,453 | - |
Utilities | 16,166,653 | 16,166,653 | - | - |
Money Market Funds | 127,331,731 | 127,331,731 | - | - |
Total Investments in Securities: | $ 1,658,746,980 | $ 1,160,510,132 | $ 498,236,848 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 31,518,838 |
Level 2 to Level 1 | $ 0 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Europe Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $79,696,282) - See accompanying schedule: Unaffiliated issuers (cost $1,255,679,913) | $ 1,531,415,249 |
|
Fidelity Central Funds (cost $127,331,731) | 127,331,731 |
|
Total Investments (cost $1,383,011,644) |
| $ 1,658,746,980 |
Foreign currency held at value (cost $125,928) | 125,986 | |
Receivable for investments sold | 3,904,010 | |
Receivable for fund shares sold | 1,765,000 | |
Dividends receivable | 7,562,476 | |
Distributions receivable from Fidelity Central Funds | 195,061 | |
Prepaid expenses | 694 | |
Receivable from investment adviser for expense reductions | 853 | |
Other receivables | 17,057 | |
Total assets | 1,672,318,117 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 10,843,567 | |
Payable for fund shares redeemed | 545,254 | |
Distributions payable | 13 | |
Accrued management fee | 910,224 | |
Distribution and service plan fees payable | 14,670 | |
Other affiliated payables | 294,516 | |
Other payables and accrued expenses | 131,551 | |
Collateral on securities loaned, at value | 83,829,030 | |
Total liabilities | 96,568,825 | |
|
|
|
Net Assets | $ 1,575,749,292 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,510,428,232 | |
Undistributed net investment income | 17,752,343 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (228,243,331) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 275,812,048 | |
Net Assets | $ 1,575,749,292 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 40.26 | |
|
|
|
Maximum offering price per share (100/94.25 of $40.26) | $ 42.72 | |
Class T: | $ 40.24 | |
|
|
|
Maximum offering price per share (100/96.50 of $40.24) | $ 41.70 | |
Class B: | $ 40.22 | |
|
|
|
Class C: | $ 40.22 | |
|
|
|
Europe: | $ 40.28 | |
|
|
|
Institutional Class: | $ 40.27 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 19,433,154 |
Special dividends |
| 6,523,242 |
Income from Fidelity Central Funds |
| 404,520 |
Income before foreign taxes withheld |
| 26,360,916 |
Less foreign taxes withheld |
| (1,755,969) |
Total income |
| 24,604,947 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 3,970,775 | |
Performance adjustment | (2,811) | |
Transfer agent fees | 1,023,716 | |
Distribution and service plan fees | 18,816 | |
Accounting and security lending fees | 262,594 | |
Custodian fees and expenses | 61,610 | |
Independent trustees' compensation | 2,736 | |
Registration fees | 53,559 | |
Audit | 53,218 | |
Legal | 5,508 | |
Miscellaneous | 27,322 | |
Total expenses before reductions | 5,477,043 | |
Expense reductions | (31,513) | 5,445,530 |
Net investment income (loss) | 19,159,417 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 31,175,144 | |
Foreign currency transactions | 57,066 | |
Total net realized gain (loss) |
| 31,232,210 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 43,025,048 | |
Assets and liabilities in foreign currencies | 61,361 | |
Total change in net unrealized appreciation (depreciation) |
| 43,086,409 |
Net gain (loss) | 74,318,619 | |
Net increase (decrease) in net assets resulting from operations | $ 93,478,036 |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 19,159,417 | $ 13,406,222 |
Net realized gain (loss) | 31,232,210 | 36,524,479 |
Change in net unrealized appreciation (depreciation) | 43,086,409 | 135,845,543 |
Net increase (decrease) in net assets resulting from operations | 93,478,036 | 185,776,244 |
Distributions to shareholders from net investment income | (13,272,490) | (14,113,486) |
Distributions to shareholders from net realized gain | (612,576) | (241,945) |
Total distributions | (13,885,066) | (14,355,431) |
Share transactions - net increase (decrease) | 539,097,228 | 183,087,632 |
Redemption fees | 10,705 | 19,946 |
Total increase (decrease) in net assets | 618,700,903 | 354,528,391 |
|
|
|
Net Assets | ||
Beginning of period | 957,048,389 | 602,519,998 |
End of period (including undistributed net investment income of $17,752,343 and undistributed net investment income of $11,865,416, respectively) | $ 1,575,749,292 | $ 957,048,389 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .20 |
Net realized and unrealized gain (loss) | .61 |
Total from investment operations | .81 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.26 |
Total Return B, C, D | 2.05% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 1.29% A |
Expenses net of fee waivers, if any | 1.29% A |
Expenses net of all reductions | 1.28% A |
Net investment income (loss) | 4.34% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 19,873 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .19 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .79 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.24 |
Total Return B, C, D | 2.00% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 1.57% A |
Expenses net of fee waivers, if any | 1.57% A |
Expenses net of all reductions | 1.56% A |
Net investment income (loss) | 4.06% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 8,971 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .17 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .77 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.22 |
Total Return B, C, D | 1.95% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 2.05% A |
Expenses net of fee waivers, if any | 2.05% A |
Expenses net of all reductions | 2.05% A |
Net investment income (loss) | 3.57% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 847 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) E | .17 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .77 |
Redemption fees added to paid in capital E, K | - |
Net asset value, end of period | $ 40.22 |
Total Return B, C, D | 1.95% |
Ratios to Average Net Assets F, I |
|
Expenses before reductions | 2.03% A |
Expenses net of fee waivers, if any | 2.03% A |
Expenses net of all reductions | 2.02% A |
Net investment income (loss) | 3.60% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 7,725 |
Portfolio turnover rate G | 42% A, J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Europe
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 37.92 | $ 30.15 | $ 27.67 | $ 30.83 | $ 28.52 | $ 23.57 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .65 K | .61 | .64 | .48 | .33 | .52 |
Net realized and unrealized gain (loss) | 2.25 | 7.87 | 2.45 | (2.97) | 2.50 | 5.16 |
Total from investment operations | 2.90 | 8.48 | 3.09 | (2.49) | 2.83 | 5.68 |
Distributions from net investment income | (.52) | (.70) | (.60) | (.67) | (.52) | (.73) |
Distributions from net realized gain | (.02) | (.01) | (.02) | - | - | - |
Total distributions | (.54) | (.71) | (.61) J | (.67) | (.52) | (.73) |
Redemption fees added to paid in capital D, I | - | - | - | - | - | - |
Net asset value, end of period | $ 40.28 | $ 37.92 | $ 30.15 | $ 27.67 | $ 30.83 | $ 28.52 |
Total Return B, C | 7.78% | 28.71% | 11.53% | (8.32)% | 10.01% | 25.36% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .96% A | 1.06% | .83% | 1.10% | 1.12% | 1.09% |
Expenses net of fee waivers, if any | .96% A | 1.05% | .83% | 1.10% | 1.12% | 1.09% |
Expenses net of all reductions | .95% A | 1.02% | .80% | 1.06% | 1.04% | 1.04% |
Net investment income (loss) | 3.37% A, K | 1.82% | 2.33% | 1.56% | 1.15% | 2.22% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,530,029 | $ 957,048 | $ 602,520 | $ 621,778 | $ 802,527 | $ 2,845,423 |
Portfolio turnover rate F | 42% A, H | 59% | 127% | 117% | 136% | 135% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J Total distributions of $.61 per share is comprised of distributions from net investment income of $.595 and distributions from net realized gain of $.017 per share. K Investment income per share reflects a large, non-recurring dividend recorded on February 24, 2014 which amounted to $.22 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.23%. |
Financial Highlights - Institutional Class
| Period ended |
| (Unaudited) |
Selected Per-Share Data |
|
Net asset value, beginning of period | $ 39.45 |
Income from Investment Operations |
|
Net investment income (loss) D | .22 |
Net realized and unrealized gain (loss) | .60 |
Total from investment operations | .82 |
Redemption fees added to paid in capital D, J | - |
Net asset value, end of period | $ 40.27 |
Total Return B, C | 2.08% |
Ratios to Average Net Assets E, H |
|
Expenses before reductions | .96% A |
Expenses net of fee waivers, if any | .95% A |
Expenses net of all reductions | .95% A |
Net investment income (loss) | 4.67% A |
Supplemental Data |
|
Net assets, end of period (000 omitted) | $ 8,303 |
Portfolio turnover rate F | 42% A, I |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period March 18, 2014 (commencement of sale of shares) to April 30, 2014. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Europe Fund (the Fund) is a fund of Fidelity Investment Trust (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 launched shares of Class A, Class T, Class B, Class C and Institutional Class shares and the existing class was designated Europe on March 18, 2014. Each class has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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 and may include proceeds received from litigation. 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 287,427,388 |
Gross unrealized depreciation | (14,703,900) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 272,723,488 |
Tax cost | $ 1,386,023,492 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of period end and is subject to adjustment.
Fiscal year of expiration |
|
2016 | $ (93,431,388) |
2017 | (258,236,120) |
Total | $ (351,667,508) |
The Fund acquired $249,261,426 of capital loss carryforwards from Fidelity Europe Capital Appreciation Fund and $15,642,563 of capital loss carryforwards from Fidelity Advisor Europe Capital Appreciation Fund when they merged into the Fund in March 2014. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $13,187,073 and $1,543,568 per year, respectively. As a result, at least $171,472,601 of the Fund's capital loss carryforward will expire unused and is not included in the capital loss carryforward amounts disclosed above.
In addition, due to large redemptions in a prior period, $258,236,120 of capital losses that existed in the Fund prior to the mergers will be limited to approximately $32,029,274 per year.
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $707,563,948 and $240,954,830, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Europe as compared to its benchmark index, the MSCI Europe Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .70% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 5,149 | $ 104 |
Class T | .25% | .25% | 4,708 | 4,708 |
Class B | .75% | .25% | 931 | 931 |
Class C | .75% | .25% | 8,028 | 8,028 |
|
|
| $ 18,816 | $ 13,771 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 1,017 |
Class T | 286 |
Class B* | 1 |
Class C* | 139 |
| $ 1,443 |
* When Class B and 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 A | $ 5,579 | .26 |
Class T | 2,891 | .30 |
Class B | 286 | .30 |
Class C | 2,245 | .27 |
Europe | 1,011,103 | .18 |
Institutional Class | 1,612 | .17 |
| $ 1,023,716 |
|
* 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 $86 for the period.
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 $948 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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 $388,772. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $22,233 for the period.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $9,274.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Europe | $ 13,272,490 | $ 14,113,486 |
From net realized gain |
|
|
Europe | $ 612,576 | $ 241,945 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Class A |
|
|
|
|
Shares sold | 22,165 | - | $ 878,312 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 483,084 | - | 18,719,498 | - |
Shares redeemed | (11,600) | - | (457,962) | - |
Net increase (decrease) | 493,649 | - | $ 19,139,848 | $ - |
Class T |
|
|
|
|
Shares sold | 6,629 | - | $ 261,625 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 218,383 | - | 8,462,341 | - |
Shares redeemed | (2,091) | - | (82,897) | - |
Net increase (decrease) | 222,921 | - | $ 8,641,069 | $ - |
Class B |
|
|
|
|
Shares sold | 2,631 | - | $ 103,799 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 19,997 | - | 774,699 | - |
Shares redeemed | (1,562) | - | (61,281) | - |
Net increase (decrease) | 21,066 | - | $ 817,217 | $ - |
Class C |
|
|
|
|
Shares sold | 13,179 | - | $ 523,189 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 183,082 | - | 7,092,587 | - |
Shares redeemed | (4,186) | - | (166,237) | - |
Net increase (decrease) | 192,075 | - | $ 7,449,539 | $ - |
Semiannual Report
10. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended | Year ended | |
Europe |
|
|
|
|
Shares sold | 6,344,620 | 9,813,431 | $ 246,559,501 | $ 335,694,105 |
Issued in exchange for shares of Fidelity Europe Capital Appreciation Fund | 9,559,313 | - | 370,423,391 | - |
Reinvestment of distributions | 358,728 | 448,718 | 13,351,865 | 13,676,925 |
Shares redeemed | (3,513,438) | (5,011,867) | (135,264,987) | (166,283,398) |
Net increase (decrease) | 12,749,223 | 5,250,282 | $ 495,069,770 | $ 183,087,632 |
Institutional Class |
|
|
|
|
Shares sold | 4,544 | - | $ 179,538 | $ - |
Issued in exchange for shares of Fidelity Advisor Europe Capital Appreciation Fund | 214,439 | - | 8,309,529 | - |
Shares redeemed | (12,823) | - | (509,282) | - |
Net increase (decrease) | 206,160 | - | $ 7,979,785 | $ - |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period March 18, 2014 (commencement of sale of shares) to April 30, 2014.
11. Merger Information.
On March 21, 2014, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Europe Capital Appreciation Fund and Fidelity Advisor Europe Capital Appreciation Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on September 18, 2013. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. In addition, the Board approved the creation of additional classes of shares that commenced sale of shares on March 18, 2014. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective and lower expenses. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $370,423,391, including securities of $369,430,411 and unrealized depreciation of $56,486,181 for Fidelity Europe Capital Appreciation Fund; and net assets of $43,358,654, including securities of $43,267,919 and unrealized appreciation of $4,301,890 for Fidelity Advisor Europe Capital Appreciation Fund; were combined with the Fund's net assets of $1,103,858,646 for total net assets after the acquisition of $1,517,640,691.
Pro forma results of operations of the combined entity for the entire period ended April 30, 2014, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition dates), are as follows:
Net investment income (loss) | $ 23,581,742 |
Total net realized gain (loss) | 40,592,255 |
Total change in net unrealized appreciation (depreciation) | 43,775,564 |
Net increase (decrease) in net assets resulting from operations | $ 107,949,561 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisitions were completed, it is not practicable to separate the amounts of revenue and earnings of the acquired funds that have been included in the Fund's accompanying Statement of Operations since March 21, 2014.
12. 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.
Semiannual Report
Fidelity Japan Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.25% |
|
|
|
Actual |
| $ 1,000.00 | $ 928.60 | $ 5.98 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.60 | $ 6.26 |
Class T | 1.55% |
|
|
|
Actual |
| $ 1,000.00 | $ 927.90 | $ 7.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.11 | $ 7.75 |
Class B | 2.02% |
|
|
|
Actual |
| $ 1,000.00 | $ 925.00 | $ 9.64 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.78 | $ 10.09 |
Class C | 1.94% |
|
|
|
Actual |
| $ 1,000.00 | $ 925.70 | $ 9.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,015.17 | $ 9.69 |
Japan | .91% |
|
|
|
Actual |
| $ 1,000.00 | $ 929.80 | $ 4.35 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.28 | $ 4.56 |
Institutional Class | .90% |
|
|
|
Actual |
| $ 1,000.00 | $ 930.60 | $ 4.31 |
HypotheticalA |
| $ 1,000.00 | $ 1,020.33 | $ 4.51 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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).
Semiannual Report
Fidelity Japan Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Japan | 98.3% |
| |
United States of America* | 1.2% |
| |
Korea (South) | 0.5% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Japan | 97.1% |
| |
United States of America* | 2.9% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.8 | 97.1 |
Short-Term Investments and Net Other Assets (Liabilities) | 1.2 | 2.9 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Japan Tobacco, Inc. (Tobacco) | 5.8 | 0.0 |
Rakuten, Inc. (Internet & Catalog Retail) | 4.2 | 0.0 |
East Japan Railway Co. (Road & Rail) | 4.1 | 0.0 |
Astellas Pharma, Inc. (Pharmaceuticals) | 4.0 | 0.0 |
Honda Motor Co. Ltd. (Automobiles) | 4.0 | 3.8 |
Hoya Corp. (Electronic Equipment & Components) | 3.8 | 0.0 |
Mitsubishi UFJ Financial Group, Inc. (Banks) | 3.5 | 4.9 |
SoftBank Corp. (Wireless Telecommunication Services) | 3.4 | 0.0 |
Mitsui Fudosan Co. Ltd. (Real Estate Management & Development) | 3.2 | 0.0 |
Mitsui & Co. Ltd. (Trading Companies & Distributors) | 3.0 | 0.0 |
| 39.0 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 21.9 | 25.4 |
Financials | 18.8 | 20.3 |
Industrials | 16.4 | 13.0 |
Information Technology | 12.0 | 12.8 |
Telecommunication Services | 8.5 | 3.2 |
Consumer Staples | 7.5 | 2.1 |
Health Care | 6.7 | 7.4 |
Materials | 3.7 | 11.5 |
Energy | 1.7 | 0.0 |
Utilities | 1.6 | 1.4 |
Semiannual Report
Fidelity Japan Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 21.9% | |||
Auto Components - 1.6% | |||
Bridgestone Corp. | 208,200 | $ 7,453,534 | |
Automobiles - 9.7% | |||
Honda Motor Co. Ltd. | 557,800 | 18,510,415 | |
Mazda Motor Corp. | 1,633,000 | 7,299,663 | |
Suzuki Motor Corp. | 383,000 | 9,871,424 | |
Toyota Motor Corp. | 176,800 | 9,552,179 | |
| 45,233,681 | ||
Household Durables - 1.1% | |||
Iida Group Holdings Co. Ltd. (a) | 339,400 | 5,046,100 | |
Internet & Catalog Retail - 4.2% | |||
Rakuten, Inc. | 1,496,900 | 19,356,402 | |
Leisure Products - 0.9% | |||
Sega Sammy Holdings, Inc. | 213,800 | 4,299,631 | |
Media - 0.8% | |||
Fuji Media Holdings, Inc. | 221,700 | 3,732,046 | |
Multiline Retail - 3.6% | |||
Don Quijote Holdings Co. Ltd. | 139,300 | 7,330,503 | |
Ryohin Keikaku Co. Ltd. | 83,600 | 9,387,470 | |
| 16,717,973 | ||
TOTAL CONSUMER DISCRETIONARY | 101,839,367 | ||
CONSUMER STAPLES - 7.5% | |||
Food & Staples Retailing - 1.7% | |||
Seven & i Holdings Co., Ltd. | 199,100 | 7,850,268 | |
Tobacco - 5.8% | |||
Japan Tobacco, Inc. | 821,300 | 26,960,266 | |
TOTAL CONSUMER STAPLES | 34,810,534 | ||
ENERGY - 1.7% | |||
Energy Equipment & Services - 0.4% | |||
Modec, Inc. (d) | 90,200 | 1,993,955 | |
Oil, Gas & Consumable Fuels - 1.3% | |||
INPEX Corp. | 395,700 | 5,759,296 | |
TOTAL ENERGY | 7,753,251 | ||
FINANCIALS - 18.8% | |||
Banks - 6.1% | |||
Mitsubishi UFJ Financial Group, Inc. | 3,069,200 | 16,326,602 | |
Mizuho Financial Group, Inc. | 6,206,700 | 12,156,493 | |
| 28,483,095 | ||
Capital Markets - 0.9% | |||
Daiwa Securities Group, Inc. | 558,000 | 4,175,380 | |
Consumer Finance - 1.9% | |||
ACOM Co. Ltd. (a)(d) | 2,630,900 | 8,955,379 | |
| |||
Shares | Value | ||
Diversified Financial Services - 3.0% | |||
Japan Exchange Group, Inc. | 80,500 | $ 1,588,976 | |
ORIX Corp. | 860,800 | 12,436,070 | |
| 14,025,046 | ||
Insurance - 2.2% | |||
Tokio Marine Holdings, Inc. | 341,500 | 10,057,774 | |
Real Estate Management & Development - 4.7% | |||
AEON Mall Co. Ltd. | 282,700 | 6,730,491 | |
Mitsui Fudosan Co. Ltd. | 507,000 | 14,981,631 | |
| 21,712,122 | ||
TOTAL FINANCIALS | 87,408,796 | ||
HEALTH CARE - 6.7% | |||
Health Care Providers & Services - 2.7% | |||
Message Co. Ltd. (d) | 243,700 | 7,806,695 | |
Miraca Holdings, Inc. | 104,100 | 4,510,813 | |
| 12,317,508 | ||
Pharmaceuticals - 4.0% | |||
Astellas Pharma, Inc. | 1,679,000 | 18,672,891 | |
TOTAL HEALTH CARE | 30,990,399 | ||
INDUSTRIALS - 16.4% | |||
Construction & Engineering - 1.2% | |||
Toshiba Plant Systems & Services Corp. | 386,100 | 5,676,219 | |
Electrical Equipment - 3.1% | |||
Mitsubishi Electric Corp. | 641,000 | 7,291,857 | |
Sumitomo Electric Industries Ltd. | 505,100 | 6,971,156 | |
| 14,263,013 | ||
Machinery - 3.4% | |||
Komatsu Ltd. | 358,700 | 7,897,243 | |
Makita Corp. | 142,400 | 7,549,352 | |
| 15,446,595 | ||
Road & Rail - 4.1% | |||
East Japan Railway Co. | 262,400 | 19,129,136 | |
Trading Companies & Distributors - 4.6% | |||
Mitsui & Co. Ltd. | 985,900 | 13,973,386 | |
Sumitomo Corp. | 571,000 | 7,411,522 | |
| 21,384,908 | ||
TOTAL INDUSTRIALS | 75,899,871 | ||
INFORMATION TECHNOLOGY - 12.0% | |||
Electronic Equipment & Components - 9.0% | |||
Azbil Corp. | 207,200 | 4,695,871 | |
Hitachi Ltd. | 1,616,000 | 11,491,485 | |
Hoya Corp. | 599,300 | 17,668,022 | |
Shimadzu Corp. | 902,000 | 7,702,313 | |
| 41,557,691 | ||
Common Stocks - continued | |||
Shares | Value | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 2.4% | |||
Kakaku.com, Inc. | 627,200 | $ 8,926,258 | |
Naver Corp. | 3,266 | 2,333,084 | |
| 11,259,342 | ||
Technology Hardware, Storage & Peripherals - 0.6% | |||
Wacom Co. Ltd. (d) | 409,400 | 2,679,010 | |
TOTAL INFORMATION TECHNOLOGY | 55,496,043 | ||
MATERIALS - 3.7% | |||
Chemicals - 2.7% | |||
JSR Corp. | 289,800 | 4,748,031 | |
Shin-Etsu Chemical Co., Ltd. | 134,800 | 7,908,548 | |
| 12,656,579 | ||
Metals & Mining - 1.0% | |||
Nippon Steel & Sumitomo Metal Corp. | 1,777,000 | 4,658,248 | |
TOTAL MATERIALS | 17,314,827 | ||
TELECOMMUNICATION SERVICES - 8.5% | |||
Diversified Telecommunication Services - 2.2% | |||
Nippon Telegraph & Telephone Corp. | 180,400 | 10,010,897 | |
Wireless Telecommunication Services - 6.3% | |||
KDDI Corp. | 252,800 | 13,456,621 | |
SoftBank Corp. | 212,300 | 15,761,305 | |
| 29,217,926 | ||
TOTAL TELECOMMUNICATION SERVICES | 39,228,823 | ||
| |||
Shares | Value | ||
UTILITIES - 1.6% | |||
Electric Utilities - 1.6% | |||
Kansai Electric Power Co., Inc. (a) | 867,400 | $ 7,262,624 | |
TOTAL COMMON STOCKS (Cost $475,026,329) |
| ||
Money Market Funds - 2.9% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 185,092 | 185,092 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 13,411,903 | 13,411,903 | |
TOTAL MONEY MARKET FUNDS (Cost $13,596,995) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.7% (Cost $488,623,324) | 471,601,530 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (7,799,458) | ||
NET ASSETS - 100% | $ 463,802,072 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 1,958 |
Fidelity Securities Lending Cash Central Fund | 18,514 |
Total | $ 20,472 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 101,839,367 | $ 73,776,773 | $ 28,062,594 | $ - |
Consumer Staples | 34,810,534 | 34,810,534 | - | - |
Energy | 7,753,251 | 7,753,251 | - | - |
Financials | 87,408,796 | 58,925,701 | 28,483,095 | - |
Health Care | 30,990,399 | 30,990,399 | - | - |
Industrials | 75,899,871 | 68,002,628 | 7,897,243 | - |
Information Technology | 55,496,043 | 55,496,043 | - | - |
Materials | 17,314,827 | 17,314,827 | - | - |
Telecommunication Services | 39,228,823 | 29,217,926 | 10,010,897 | - |
Utilities | 7,262,624 | 7,262,624 | - | - |
Money Market Funds | 13,596,995 | 13,596,995 | - | - |
Total Investments in Securities: | $ 471,601,530 | $ 397,147,701 | $ 74,453,829 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 126,926,560 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Japan Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,564,430) - See accompanying schedule: Unaffiliated issuers (cost $475,026,329) | $ 458,004,535 |
|
Fidelity Central Funds (cost $13,596,995) | 13,596,995 |
|
Total Investments (cost $488,623,324) |
| $ 471,601,530 |
Receivable for investments sold | 2,245,924 | |
Receivable for fund shares sold | 198,348 | |
Dividends receivable | 4,223,884 | |
Distributions receivable from Fidelity Central Funds | 6,035 | |
Prepaid expenses | 502 | |
Other receivables | 10,471 | |
Total assets | 478,286,694 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 663,120 | |
Accrued management fee | 235,087 | |
Distribution and service plan fees payable | 17,167 | |
Other affiliated payables | 100,576 | |
Other payables and accrued expenses | 56,769 | |
Collateral on securities loaned, at value | 13,411,903 | |
Total liabilities | 14,484,622 | |
|
|
|
Net Assets | $ 463,802,072 | |
Net Assets consist of: |
| |
Paid in capital | $ 679,475,444 | |
Undistributed net investment income | 2,200,058 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (200,835,017) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (17,038,413) | |
Net Assets | $ 463,802,072 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 11.06 | |
|
|
|
Maximum offering price per share (100/94.25 of $11.06) | $ 11.73 | |
Class T: | $ 11.05 | |
|
|
|
Maximum offering price per share (100/96.50 of $11.05) | $ 11.45 | |
Class B: | $ 11.10 | |
|
|
|
Class C: | $ 11.04 | |
|
|
|
Japan: | $ 11.08 | |
|
|
|
Institutional Class: | $ 11.07 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,165,951 |
Income from Fidelity Central Funds |
| 20,472 |
Income before foreign taxes withheld |
| 5,186,423 |
Less foreign taxes withheld |
| (515,819) |
Total income |
| 4,670,604 |
|
|
|
Expenses | ||
Management fee Basic fee | $ 1,799,032 | |
Performance adjustment | (238,894) | |
Transfer agent fees | 501,133 | |
Distribution and service plan fees | 105,349 | |
Accounting and security lending fees | 132,617 | |
Custodian fees and expenses | 34,741 | |
Independent trustees' compensation | 1,055 | |
Registration fees | 68,740 | |
Audit | 36,802 | |
Legal | 1,222 | |
Interest | 1,495 | |
Miscellaneous | 13,989 | |
Total expenses before reductions | 2,457,281 | |
Expense reductions | (1,146) | 2,456,135 |
Net investment income (loss) | 2,214,469 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (2,455,489) | |
Foreign currency transactions | (227,828) | |
Total net realized gain (loss) |
| (2,683,317) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (36,094,909) | |
Assets and liabilities in foreign currencies | (24,795) | |
Total change in net unrealized appreciation (depreciation) |
| (36,119,704) |
Net gain (loss) | (38,803,021) | |
Net increase (decrease) in net assets resulting from operations | $ (36,588,552) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,214,469 | $ 5,017,815 |
Net realized gain (loss) | (2,683,317) | 22,342,026 |
Change in net unrealized appreciation (depreciation) | (36,119,704) | 92,633,788 |
Net increase (decrease) in net assets resulting from operations | (36,588,552) | 119,993,629 |
Distributions to shareholders from net investment income | (4,561,447) | (5,641,978) |
Distributions to shareholders from net realized gain | (402,380) | (3,106,863) |
Total distributions | (4,963,827) | (8,748,841) |
Share transactions - net increase (decrease) | (34,104,465) | 51,180,009 |
Redemption fees | 78,244 | 461,366 |
Total increase (decrease) in net assets | (75,578,600) | 162,886,163 |
|
|
|
Net Assets | ||
Beginning of period | 539,380,672 | 376,494,509 |
End of period (including undistributed net investment income of $2,200,058 and undistributed net investment income of $4,547,036, respectively) | $ 463,802,072 | $ 539,380,672 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.00 | $ 9.30 | $ 9.54 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .03 | .08 | .09 | .09 |
Net realized and unrealized gain (loss) | (.88) | 2.80 | (.15) | (1.39) |
Total from investment operations | (.85) | 2.88 | (.06) | (1.30) |
Distributions from net investment income | (.08) | (.11) | (.13) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.09) | (.19) | (.18) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.06 | $ 12.00 | $ 9.30 | $ 9.54 |
Total Return B, C, D | (7.14)% | 31.58% | (.64)% | (11.91)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.25% A | 1.26% | 1.42% | 1.20% A |
Expenses net of fee waivers, if any | 1.25% A | 1.26% | 1.38% | 1.20% A |
Expenses net of all reductions | 1.25% A | 1.25% | 1.36% | 1.16% A |
Net investment income (loss) | .57% A | .75% | .94% | 1.02% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 19,368 | $ 20,520 | $ 9,495 | $ 13,208 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.96 | $ 9.28 | $ 9.51 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | .02 | .05 | .06 | .07 |
Net realized and unrealized gain (loss) | (.88) | 2.78 | (.13) | (1.40) |
Total from investment operations | (.86) | 2.83 | (.07) | (1.33) |
Distributions from net investment income | (.04) | (.08) | (.11) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.05) | (.16) | (.16) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.05 | $ 11.96 | $ 9.28 | $ 9.51 |
Total Return B, C, D | (7.21)% | 31.04% | (.75)% | (12.19)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.55% A | 1.55% | 1.70% | 1.48% A |
Expenses net of fee waivers, if any | 1.55% A | 1.55% | 1.66% | 1.48% A |
Expenses net of all reductions | 1.55% A | 1.53% | 1.64% | 1.44% A |
Net investment income (loss) | .27% A | .46% | .66% | .74% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 4,500 | $ 5,357 | $ 3,934 | $ 4,643 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.00 | $ 9.26 | $ 9.47 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | (.01) | - K | .02 | .02 |
Net realized and unrealized gain (loss) | (.89) | 2.80 | (.14) | (1.39) |
Total from investment operations | (.90) | 2.80 | (.12) | (1.37) |
Distributions from net investment income | - | - | (.04) | - |
Distributions from net realized gain | - | (.07) | (.05) | - |
Total distributions | - | (.07) | (.09) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.10 | $ 12.00 | $ 9.26 | $ 9.47 |
Total Return B, C, D | (7.50)% | 30.52% | (1.24)% | (12.56)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 2.02% A | 2.02% | 2.17% | 1.95% A |
Expenses net of fee waivers, if any | 2.02% A | 2.02% | 2.13% | 1.95% A |
Expenses net of all reductions | 2.02% A | 2.01% | 2.11% | 1.91% A |
Net investment income (loss) | (.20)% A | (.02)% | .19% | .27% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 528 | $ 874 | $ 1,012 | $ 1,458 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 H |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 11.96 | $ 9.25 | $ 9.48 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) E | (.01) | - K | .02 | .03 |
Net realized and unrealized gain (loss) | (.88) | 2.79 | (.14) | (1.39) |
Total from investment operations | (.89) | 2.79 | (.12) | (1.36) |
Distributions from net investment income | (.03) | (.01) | (.06) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.03) L | (.09) | (.11) | - |
Redemption fees added to paid in capital E | - K | .01 | - K | .01 |
Net asset value, end of period | $ 11.04 | $ 11.96 | $ 9.25 | $ 9.48 |
Total Return B, C, D | (7.43)% | 30.55% | (1.27)% | (12.47)% |
Ratios to Average Net Assets F, I |
|
|
|
|
Expenses before reductions | 1.94% A | 1.97% | 2.15% | 1.92% A |
Expenses net of fee waivers, if any | 1.94% A | 1.97% | 2.11% | 1.92% A |
Expenses net of all reductions | 1.94% A | 1.95% | 2.09% | 1.88% A |
Net investment income (loss) | (.12)% A | .04% | .21% | .30% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,631 | $ 11,824 | $ 7,015 | $ 8,750 |
Portfolio turnover rate G | 195% A | 68% | 52% | 134% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. L Total distributions of $.03 per share is comprised of distributions from net investment income of $.025 and distributions from net realized gain of $.009 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Japan
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.03 | $ 9.34 | $ 9.57 | $ 10.57 | $ 10.03 | $ 9.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .12 | .12 | .15 | .10 | .08 |
Net realized and unrealized gain (loss) | (.89) | 2.79 | (.14) | (.75) | .61 | 1.04 |
Total from investment operations | (.84) | 2.91 | (.02) | (.60) | .71 | 1.12 |
Distributions from net investment income | (.11) | (.15) | (.16) | (.20) | (.07) | (.11) |
Distributions from net realized gain | (.01) | (.08) | (.05) | (.21) | (.10) | (.01) |
Total distributions | (.11) J | (.23) | (.21) | (.41) | (.17) | (.12) |
Redemption fees added to paid in capital D | - I | .01 | - I | .01 | - I | - I |
Net asset value, end of period | $ 11.08 | $ 12.03 | $ 9.34 | $ 9.57 | $ 10.57 | $ 10.03 |
Total Return B, C | (7.02)% | 31.92% | (.19)% | (6.00)% | 7.12% | 12.84% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | .91% A | .93% | 1.09% | .86% | .93% | .90% |
Expenses net of fee waivers, if any | .91% A | .93% | 1.06% | .84% | .93% | .90% |
Expenses net of all reductions | .91% A | .91% | 1.04% | .80% | .93% | .89% |
Net investment income (loss) | .91% A | 1.08% | 1.26% | 1.38% | .97% | .90% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 410,968 | $ 480,773 | $ 353,550 | $ 450,417 | $ 649,316 | $ 944,902 |
Portfolio turnover rate F | 195% A | 68% | 52% | 134% H | 43% | 73% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J Total distributions of $.11 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $.009 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | ||
| (Unaudited) | 2013 | 2012 | 2011 G |
Selected Per-Share Data |
|
|
|
|
Net asset value, beginning of period | $ 12.02 | $ 9.33 | $ 9.57 | $ 10.83 |
Income from Investment Operations |
|
|
|
|
Net investment income (loss) D | .05 | .13 | .12 | .13 |
Net realized and unrealized gain (loss) | (.88) | 2.78 | (.14) | (1.40) |
Total from investment operations | (.83) | 2.91 | (.02) | (1.27) |
Distributions from net investment income | (.12) | (.15) | (.17) | - |
Distributions from net realized gain | (.01) | (.08) | (.05) | - |
Total distributions | (.12) K | (.23) | (.22) | - |
Redemption fees added to paid in capital D | - J | .01 | - J | .01 |
Net asset value, end of period | $ 11.07 | $ 12.02 | $ 9.33 | $ 9.57 |
Total Return B, C | (6.94)% | 32.04% | (.18)% | (11.63)% |
Ratios to Average Net Assets E, H |
|
|
|
|
Expenses before reductions | .90% A | .90% | 1.03% | .79% A |
Expenses net of fee waivers, if any | .90% A | .90% | 1.01% | .79% A |
Expenses net of all reductions | .90% A | .88% | .99% | .75% A |
Net investment income (loss) | .92% A | 1.11% | 1.31% | 1.43% A |
Supplemental Data |
|
|
|
|
Net assets, end of period (000 omitted) | $ 15,808 | $ 20,033 | $ 1,488 | $ 2,715 |
Portfolio turnover rate F | 195% A | 68% | 52% | 134% I |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period December 14, 2010 (commencement of sale of shares) to October 31, 2011. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.009 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Japan Fund (the Fund) is a fund of Fidelity Investment Trust (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 T, Class C, Japan and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 10,885,232 |
Gross unrealized depreciation | (34,415,329) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (23,530,097) |
|
|
Tax cost | $ 495,131,627 |
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2016 | $ (3,870,588) |
2017 | (60,951,366) |
2018 | (26,887,863) |
2019 | (98,806,037) |
Total with expiration | $ (190,515,854) |
Due to large redemptions in a prior period, $161,303,179 of capital losses that will be available to offset future capital gains of the Fund will be limited to approximately $18,885,324 per year.
The Fund acquired $5,487,891 of its capital loss carryforward as part of a merger in a prior period. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $1,371,973 per year.
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $495,051,433 and $522,491,570, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Japan as compared to its benchmark index, the TOPIX, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .61% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 25,693 | $ 8,492 |
Class T | .25% | .25% | 12,724 | 2,568 |
Class B | .75% | .25% | 3,516 | 2,963 |
Class C | .75% | .25% | 63,416 | 46,458 |
|
|
| $ 105,349 | $ 60,481 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 19,058 |
Class T | 765 |
Class B* | 3,797 |
Class C* | 4,617 |
| $ 28,237 |
* When Class B and 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 applicable class were as follows:
| Amount | % of |
Class A | $ 28,366 | .28 |
Class T | 8,313 | .33 |
Class B | 1,049 | .30 |
Class C | 13,937 | .22 |
Japan | 433,688 | .19 |
Institutional Class | 15,780 | .18 |
| $ 501,133 |
|
* 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.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 42,055,500 | .32% | $ 1,495 |
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 $491 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
7. Security Lending - continued
on the next business day. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $18,514. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $1,146.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 141,802 | $ 106,946 |
Class T | 19,055 | 32,766 |
Class C | 25,435 | 8,397 |
Class B | - | - |
Japan | 4,169,355 | 5,470,176 |
Institutional Class | 205,800 | 23,693 |
Total | $ 4,561,447 | $ 5,641,978 |
From net realized gain |
|
|
Class A | $ 15,756 | $ 79,705 |
Class T | 3,988 | 33,186 |
Class B | - | 6,644 |
Class C | 9,157 | 55,283 |
Japan | 357,373 | 2,919,891 |
Institutional Class | 16,106 | 12,154 |
Total | $ 402,380 | $ 3,106,863 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class A |
|
|
|
|
Shares sold | 429,589 | 1,327,321 | $ 5,038,956 | $ 15,043,376 |
Reinvestment of distributions | 11,439 | 17,701 | 136,237 | 165,861 |
Shares redeemed | (399,903) | (655,691) | (4,640,800) | (7,373,829) |
Net increase (decrease) | 41,125 | 689,331 | $ 534,393 | $ 7,835,408 |
Class T |
|
|
|
|
Shares sold | 38,505 | 195,003 | $ 450,793 | $ 2,164,942 |
Reinvestment of distributions | 1,875 | 6,834 | 22,328 | 64,034 |
Shares redeemed | (80,770) | (178,171) | (929,510) | (1,988,129) |
Net increase (decrease) | (40,390) | 23,666 | $ (456,389) | $ 240,847 |
Class B |
|
|
|
|
Shares sold | 818 | 14,757 | $ 10,000 | $ 173,151 |
Reinvestment of distributions | - | 463 | - | 4,366 |
Shares redeemed | (26,123) | (51,705) | (303,943) | (551,755) |
Net increase (decrease) | (25,305) | (36,485) | $ (293,943) | $ (374,238) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions - continued
| Shares | Dollars | ||
| Six months ended | Year ended | Six months ended | Year ended |
Class C |
|
|
|
|
Shares sold | 336,840 | 526,927 | $ 3,934,750 | $ 5,994,932 |
Reinvestment of distributions | 2,168 | 5,172 | 25,821 | 48,618 |
Shares redeemed | (183,182) | (302,151) | (2,103,942) | (3,208,131) |
Net increase (decrease) | 155,826 | 229,948 | $ 1,856,629 | $ 2,835,419 |
Japan |
|
|
|
|
Shares sold | 2,507,308 | 14,062,957 | $ 29,518,071 | $ 157,503,214 |
Reinvestment of distributions | 370,099 | 872,770 | 4,407,882 | 8,177,855 |
Shares redeemed | (5,767,251) | (12,837,219) | (66,699,043) | (141,848,609) |
Net increase (decrease) | (2,889,844) | 2,098,508 | $ (32,773,090) | $ 23,832,460 |
Institutional Class |
|
|
|
|
Shares sold | 422,686 | 1,891,907 | $ 4,885,972 | $ 21,220,551 |
Reinvestment of distributions | 13,570 | 2,940 | 161,488 | 27,514 |
Shares redeemed | (674,553) | (387,518) | (8,019,525) | (4,437,952) |
Net increase (decrease) | (238,297) | 1,507,329 | $ (2,972,065) | $ 16,810,113 |
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, Strategic Advisers International Fund was the owner of record of approximately 40% of the total outstanding shares of the Fund. Mutual Funds managed by the investment adviser or its affiliates were the owners of record, in the aggregate, of approximately 42% of the total outstanding shares of the Fund.
Semiannual Report
Fidelity Japan Smaller Companies Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management 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 (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table 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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Actual | 1.01% | $ 1,000.00 | $ 913.70 | $ 4.79 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.79 | $ 5.06 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Japan Smaller Companies Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Japan | 94.8% |
| |
United States of America* | 5.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Japan | 99.3% |
| |
United States of America* | 0.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 94.8 | 99.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 5.2 | 0.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Fukuoka Financial Group, Inc. (Banks) | 1.7 | 0.0 |
Lintec Corp. (Chemicals) | 1.7 | 0.0 |
Tokyo Gas Co. Ltd. (Gas Utilities) | 1.6 | 0.0 |
JSR Corp. (Chemicals) | 1.6 | 0.0 |
Yamazen Co. Ltd. (Trading Companies & Distributors) | 1.6 | 0.0 |
Fuyo General Lease Co. Ltd. (Diversified Financial Services) | 1.6 | 0.0 |
Daiichikosho Co. Ltd. (Media) | 1.6 | 0.0 |
Nac Co. Ltd. (Commercial Services & Supplies) | 1.5 | 0.0 |
Leopalace21 Corp. (Real Estate Management & Development) | 1.5 | 3.1 |
Kuraray Co. Ltd. (Chemicals) | 1.5 | 0.0 |
| 15.9 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Consumer Discretionary | 22.5 | 27.4 |
Industrials | 19.8 | 10.1 |
Information Technology | 14.2 | 9.9 |
Financials | 11.3 | 27.0 |
Materials | 10.7 | 2.7 |
Consumer Staples | 6.7 | 6.2 |
Health Care | 4.4 | 7.1 |
Utilities | 3.6 | 8.4 |
Energy | 1.6 | 0.2 |
Telecommunication Services | 0.0 | 0.3 |
Semiannual Report
Fidelity Japan Smaller Companies Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.8% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 22.5% | |||
Auto Components - 4.4% | |||
Kinugawa Rubber Industrial Co. Ltd. | 1,177,000 | $ 4,915,919 | |
NHK Spring Co. Ltd. | 554,100 | 4,997,116 | |
Sumitomo Rubber Industries Ltd. | 389,400 | 5,404,789 | |
TS tech Co. Ltd. | 170,600 | 4,548,888 | |
| 19,866,712 | ||
Automobiles - 1.3% | |||
Daihatsu Motor Co. Ltd. | 354,300 | 5,860,237 | |
Distributors - 0.5% | |||
Central Automotive Products Ltd. | 286,000 | 1,994,601 | |
Chori Co. Ltd. | 11,500 | 126,884 | |
| 2,121,485 | ||
Hotels, Restaurants & Leisure - 2.5% | |||
BRONCO BILLY Co. Ltd. | 110,200 | 2,422,061 | |
Koshidaka Holdings Co. Ltd. | 129,800 | 3,846,960 | |
St. Marc Holdings Co. Ltd. | 99,400 | 4,710,647 | |
| 10,979,668 | ||
Household Durables - 2.5% | |||
Higashi Nihon House Co. Ltd. | 1,159,600 | 5,546,480 | |
Iida Group Holdings Co. Ltd. (a) | 377,296 | 5,609,526 | |
| 11,156,006 | ||
Leisure Products - 0.6% | |||
KAWAI Musical Instruments Manufacturing Co. Ltd. | 1,482,000 | 2,638,275 | |
Media - 2.1% | |||
Daiichikosho Co. Ltd. | 242,500 | 6,992,615 | |
Proto Corp. | 173,400 | 2,388,098 | |
| 9,380,713 | ||
Specialty Retail - 7.5% | |||
Asahi Co. Ltd. | 360,400 | 4,787,237 | |
Fuji Corp. | 108,300 | 2,244,708 | |
K's Denki Corp. | 185,400 | 5,380,562 | |
Nitori Holdings Co. Ltd. | 119,900 | 5,494,513 | |
Pal Co. Ltd. | 245,700 | 4,686,409 | |
Shimamura Co. Ltd. | 61,400 | 5,717,494 | |
VT Holdings Co. Ltd. | 905,100 | 5,187,936 | |
| 33,498,859 | ||
Textiles, Apparel & Luxury Goods - 1.1% | |||
Descente Ltd. | 578,000 | 4,370,265 | |
Jichodo Co. Ltd. | 36,000 | 348,609 | |
| 4,718,874 | ||
TOTAL CONSUMER DISCRETIONARY | 100,220,829 | ||
CONSUMER STAPLES - 6.7% | |||
Beverages - 1.8% | |||
Kirin Holdings Co. Ltd. | 191,000 | 2,643,566 | |
Oenon Holdings, Inc. | 2,156,000 | 5,461,965 | |
| 8,105,531 | ||
| |||
Shares | Value | ||
Food & Staples Retailing - 3.0% | |||
Kato Sangyo | 255,800 | $ 5,319,419 | |
Mitsubishi Shokuhin Co. Ltd. | 120,800 | 2,704,663 | |
San-A Co. Ltd. | 96,100 | 2,770,154 | |
Sogo Medical Co. Ltd. | 66,400 | 2,747,317 | |
| 13,541,553 | ||
Food Products - 1.9% | |||
Kotobuki Spirits Co. Ltd. | 138,800 | 2,860,582 | |
Rokko Butter Co. Ltd. | 227,900 | 1,932,697 | |
Toyo Suisan Kaisha Ltd. | 114,000 | 3,646,305 | |
| 8,439,584 | ||
TOTAL CONSUMER STAPLES | 30,086,668 | ||
ENERGY - 1.6% | |||
Energy Equipment & Services - 0.8% | |||
Shinko Plantech Co. Ltd. | 467,400 | 3,515,729 | |
Oil, Gas & Consumable Fuels - 0.8% | |||
San-Ai Oil Co. Ltd. | 532,000 | 3,538,514 | |
TOTAL ENERGY | 7,054,243 | ||
FINANCIALS - 11.3% | |||
Banks - 4.3% | |||
Aozora Bank Ltd. | 1,748,000 | 5,197,750 | |
Fukuoka Financial Group, Inc. | 1,895,000 | 7,729,395 | |
Gunma Bank Ltd. | 1,075,000 | 5,709,640 | |
Sumitomo Mitsui Financial Group, Inc. | 11,500 | 454,599 | |
| 19,091,384 | ||
Capital Markets - 0.6% | |||
Kyokuto Securities Co. Ltd. (d) | 181,500 | 2,840,515 | |
Consumer Finance - 1.0% | |||
ACOM Co. Ltd. (a)(d) | 1,353,500 | 4,607,209 | |
Diversified Financial Services - 1.6% | |||
Fuyo General Lease Co. Ltd. | 204,500 | 7,031,031 | |
Insurance - 1.1% | |||
Tokio Marine Holdings, Inc. | 171,700 | 5,056,866 | |
Real Estate Management & Development - 2.7% | |||
Daito Trust Construction Co. Ltd. | 51,900 | 5,274,524 | |
Leopalace21 Corp. (a) | 1,288,200 | 6,653,001 | |
NTT Urban Development Co. | 5,400 | 47,432 | |
| 11,974,957 | ||
TOTAL FINANCIALS | 50,601,962 | ||
HEALTH CARE - 4.4% | |||
Health Care Equipment & Supplies - 1.3% | |||
Fukuda Denshi Co. Ltd. | 59,900 | 3,040,847 | |
Nagaileben Co. Ltd. | 138,800 | 2,671,868 | |
| 5,712,715 | ||
Health Care Providers & Services - 2.3% | |||
A/S One Corp. | 73,100 | 1,917,682 | |
Common Stocks - continued | |||
Shares | Value | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Miraca Holdings, Inc. | 131,100 | $ 5,680,765 | |
Uchiyama Holdings Co. Ltd. | 424,100 | 2,712,979 | |
| 10,311,426 | ||
Pharmaceuticals - 0.8% | |||
Astellas Pharma, Inc. | 309,700 | 3,444,309 | |
TOTAL HEALTH CARE | 19,468,450 | ||
INDUSTRIALS - 19.8% | |||
Building Products - 2.7% | |||
Bunka Shutter Co. Ltd. | 871,000 | 5,077,674 | |
Sekisui Jushi Corp. | 214,600 | 2,856,855 | |
Shinko Kogyo Co. Ltd. | 409,100 | 3,889,521 | |
| 11,824,050 | ||
Commercial Services & Supplies - 6.6% | |||
Aeon Delight Co. Ltd. | 269,300 | 5,932,055 | |
Asante, Inc. | 571,400 | 5,667,331 | |
Asia Securities Printing Co. Ltd. | 379,800 | 2,593,049 | |
Eri Holdings Co. Ltd. | 180,700 | 2,078,576 | |
Mitsubishi Pencil Co. Ltd. | 23,100 | 685,758 | |
Moshi Moshi Hotline, Inc. | 557,700 | 5,640,552 | |
Nac Co. Ltd. | 471,900 | 6,951,449 | |
| 29,548,770 | ||
Construction & Engineering - 2.2% | |||
Nippon Koei Co. Ltd. | 1,012,000 | 4,850,394 | |
Toshiba Plant Systems & Services Corp. | 326,600 | 4,801,485 | |
| 9,651,879 | ||
Machinery - 3.7% | |||
Daiwa Industries Ltd. | 409,000 | 2,520,370 | |
Hoshizaki Electric Co. Ltd. | 82,800 | 3,348,931 | |
Komatsu Ltd. | 240,500 | 5,294,917 | |
Oiles Corp. | 236,900 | 5,327,267 | |
| 16,491,485 | ||
Professional Services - 2.0% | |||
en-japan, Inc. | 140,800 | 2,463,845 | |
Meitec Corp. | 90,900 | 2,417,539 | |
Weathernews, Inc. | 156,600 | 4,109,726 | |
| 8,991,110 | ||
Trading Companies & Distributors - 1.9% | |||
Mitani Shoji Co. Ltd. | 56,200 | 1,264,342 | |
Yamazen Co. Ltd. | 1,096,900 | 7,081,274 | |
| 8,345,616 | ||
Transportation Infrastructure - 0.7% | |||
Kamigumi Co. Ltd. | 350,000 | 3,334,475 | |
TOTAL INDUSTRIALS | 88,187,385 | ||
| |||
Shares | Value | ||
INFORMATION TECHNOLOGY - 14.2% | |||
Electronic Equipment & Components - 6.3% | |||
Amano Corp. | 524,800 | $ 5,051,139 | |
Kanematsu Electric Ltd. | 196,300 | 2,620,917 | |
Macnica, Inc. | 180,400 | 5,337,800 | |
OMRON Corp. | 129,000 | 4,555,094 | |
Ryoyo Electro Corp. | 470,300 | 5,639,828 | |
Siix Corp. | 333,600 | 4,891,342 | |
| 28,096,120 | ||
IT Services - 2.6% | |||
CAC Corp. | 560,200 | 5,463,094 | |
OBIC Co. Ltd. | 100,700 | 3,018,981 | |
Saison Information Systems Co. Ltd. | 40,900 | 470,469 | |
TKC Corp. | 143,300 | 2,900,061 | |
| 11,852,605 | ||
Software - 2.7% | |||
Broadleaf Co. Ltd. | 195,300 | 3,136,720 | |
Oracle Corp. Japan | 74,500 | 3,428,596 | |
SRA Holdings, Inc. | 374,200 | 5,365,845 | |
| 11,931,161 | ||
Technology Hardware, Storage & Peripherals - 2.6% | |||
Elecom Co. Ltd. | 320,200 | 5,781,672 | |
Wacom Co. Ltd. | 886,600 | 5,801,686 | |
| 11,583,358 | ||
TOTAL INFORMATION TECHNOLOGY | 63,463,244 | ||
MATERIALS - 10.7% | |||
Chemicals - 9.5% | |||
C. Uyemura & Co. Ltd. | 110,500 | 5,101,580 | |
JSR Corp. | 444,200 | 7,277,694 | |
Kuraray Co. Ltd. | 575,700 | 6,458,922 | |
Lintec Corp. | 409,100 | 7,598,972 | |
Nihon Nohyaku Co. Ltd. | 182,900 | 2,277,417 | |
Sakata INX Corp. | 552,000 | 4,853,993 | |
SK Kaken Co. Ltd. | 40,000 | 2,699,663 | |
Tokyo Ohka Kogyo Co. Ltd. | 254,400 | 5,810,378 | |
| 42,078,619 | ||
Containers & Packaging - 1.2% | |||
FP Corp. | 95,600 | 2,973,620 | |
Fuji Seal International, Inc. | 74,900 | 2,435,981 | |
| 5,409,601 | ||
TOTAL MATERIALS | 47,488,220 | ||
UTILITIES - 3.6% | |||
Electric Utilities - 2.0% | |||
Hokuriku Electric Power Co., Inc. | 253,400 | 3,142,869 | |
The Okinawa Electric Power Co., Inc. | 172,700 | 5,633,633 | |
| 8,776,502 | ||
Common Stocks - continued | |||
Shares | Value | ||
UTILITIES - continued | |||
Gas Utilities - 1.6% | |||
Tokyo Gas Co. Ltd. | 1,391,000 | $ 7,279,161 | |
TOTAL UTILITIES | 16,055,663 | ||
TOTAL COMMON STOCKS (Cost $426,650,179) |
| ||
Money Market Funds - 4.2% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 13,372,518 | 13,372,518 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 5,464,640 | 5,464,640 | |
TOTAL MONEY MARKET FUNDS (Cost $18,837,158) |
| ||
TOTAL INVESTMENT PORTFOLIO - 99.0% (Cost $445,487,337) | 441,463,822 | ||
NET OTHER ASSETS (LIABILITIES) - 1.0% | 4,377,957 | ||
NET ASSETS - 100% | $ 445,841,779 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 2,108 |
Fidelity Securities Lending Cash Central Fund | 29,596 |
Total | $ 31,704 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 100,220,829 | $ 100,220,829 | $ - | $ - |
Consumer Staples | 30,086,668 | 30,086,668 | - | - |
Energy | 7,054,243 | 7,054,243 | - | - |
Financials | 50,601,962 | 50,147,363 | 454,599 | - |
Health Care | 19,468,450 | 19,468,450 | - | - |
Industrials | 88,187,385 | 82,892,468 | 5,294,917 | - |
Information Technology | 63,463,244 | 63,463,244 | - | - |
Materials | 47,488,220 | 47,488,220 | - | - |
Utilities | 16,055,663 | 16,055,663 | - | - |
Money Market Funds | 18,837,158 | 18,837,158 | - | - |
Total Investments in Securities: | $ 441,463,822 | $ 435,714,306 | $ 5,749,516 | $ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 0 |
Level 2 to Level 1 | $ 94,281,732 |
Valuation Inputs at Reporting Date: |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value: |
Consumer Discretionary: | |
Beginning Balance | $ 10,784,013 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | - |
Cost of Purchases | - |
Proceeds of Sales | (10,784,013) |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2014 | $ - |
Financials: | |
Beginning Balance | $ 4,925,894 |
Net Realized Gain (Loss) on Investment Securities | - |
Net Unrealized Gain (Loss) on Investment Securities | - |
Cost of Purchases | - |
Proceeds of Sales | (4,925,894) |
Amortization/Accretion | - |
Transfers into Level 3 | - |
Transfers out of Level 3 | - |
Ending Balance | $ - |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at April 30, 2014 | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Japan Smaller Companies Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $5,425,436) - See accompanying schedule: Unaffiliated issuers (cost $426,650,179) | $ 422,626,664 |
|
Fidelity Central Funds (cost $18,837,158) | 18,837,158 |
|
Total Investments (cost $445,487,337) |
| $ 441,463,822 |
Receivable for investments sold | 10,309,294 | |
Receivable for fund shares sold | 75,285 | |
Dividends receivable | 4,069,839 | |
Distributions receivable from Fidelity Central Funds | 5,492 | |
Prepaid expenses | 704 | |
Other receivables | 9,916 | |
Total assets | 455,934,352 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,247,993 | |
Payable for fund shares redeemed | 1,922,756 | |
Accrued management fee | 266,384 | |
Other affiliated payables | 99,609 | |
Other payables and accrued expenses | 91,191 | |
Collateral on securities loaned, at value | 5,464,640 | |
Total liabilities | 10,092,573 | |
|
|
|
Net Assets | $ 445,841,779 | |
Net Assets consist of: |
| |
Paid in capital | $ 434,944,505 | |
Undistributed net investment income | 1,985,209 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 12,950,990 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (4,038,925) | |
Net Assets, for 36,060,284 shares outstanding | $ 445,841,779 | |
Net Asset Value, offering price and redemption price per share ($445,841,779 ÷ 36,060,284 shares) | $ 12.36 |
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 5,424,752 |
Interest |
| 5 |
Income from Fidelity Central Funds |
| 31,704 |
Income before foreign taxes withheld |
| 5,456,461 |
Less foreign taxes withheld |
| (548,648) |
Total income |
| 4,907,813 |
|
|
|
Expenses | ||
Management fee | $ 1,987,494 | |
Transfer agent fees | 552,382 | |
Accounting and security lending fees | 143,525 | |
Custodian fees and expenses | 88,593 | |
Independent trustees' compensation | 1,222 | |
Registration fees | 29,853 | |
Audit | 31,858 | |
Legal | 1,319 | |
Interest | 286 | |
Miscellaneous | 37,004 | |
Total expenses before reductions | 2,873,536 | |
Expense reductions | (2,680) | 2,870,856 |
Net investment income (loss) | 2,036,957 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 79,558,642 | |
Foreign currency transactions | 34,220 | |
Total net realized gain (loss) |
| 79,592,862 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (134,684,149) | |
Assets and liabilities in foreign currencies | (5,062) | |
Total change in net unrealized appreciation (depreciation) |
| (134,689,211) |
Net gain (loss) | (55,096,349) | |
Net increase (decrease) in net assets resulting from operations | $ (53,059,392) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Japan Smaller Companies Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 2,036,957 | $ 761,900 |
Net realized gain (loss) | 79,592,862 | 33,663,636 |
Change in net unrealized appreciation (depreciation) | (134,689,211) | 115,488,923 |
Net increase (decrease) in net assets resulting from operations | (53,059,392) | 149,914,459 |
Distributions to shareholders from net investment income | (796,312) | (1,868,698) |
Distributions to shareholders from net realized gain | (14,582,159) | (3,762,650) |
Total distributions | (15,378,471) | (5,631,348) |
Share transactions | 95,686,863 | 483,923,628 |
Reinvestment of distributions | 14,883,764 | 5,425,956 |
Cost of shares redeemed | (258,088,896) | (211,148,028) |
Net increase (decrease) in net assets resulting from share transactions | (147,518,269) | 278,201,556 |
Redemption fees | 352,724 | 1,067,201 |
Total increase (decrease) in net assets | (215,603,408) | 423,551,868 |
|
|
|
Net Assets | ||
Beginning of period | 661,445,187 | 237,893,319 |
End of period (including undistributed net investment income of $1,985,209 and undistributed net investment income of $744,564, respectively) | $ 445,841,779 | $ 661,445,187 |
Other Information Shares | ||
Sold | 7,203,943 | 38,404,402 |
Issued in reinvestment of distributions | 1,115,724 | 611,720 |
Redeemed | (19,981,149) | (17,382,624) |
Net increase (decrease) | (11,661,482) | 21,633,498 |
Financial Highlights
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 13.86 | $ 9.12 | $ 8.62 | $ 8.23 | $ 8.59 | $ 6.99 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .05 | .02 | .06 | .08 | .04 | .02 |
Net realized and unrealized gain (loss) | (1.23) | 4.91 | .55 | .45 | (.25) | 1.63 |
Total from investment operations | (1.18) | 4.93 | .61 | .53 | (.21) | 1.65 |
Distributions from net investment income | (.02) | (.07) | (.08) | (.05) | (.03) | (.04) |
Distributions from net realized gain | (.31) | (.15) | (.03) | (.10) | (.12) | (.01) |
Total distributions | (.33) | (.22) | (.11) | (.14) I | (.15) | (.05) |
Redemption fees added to paid in capital D | .01 | .03 | - H | - H | - H | - H |
Net asset value, end of period | $ 12.36 | $ 13.86 | $ 9.12 | $ 8.62 | $ 8.23 | $ 8.59 |
Total Return B, C | (8.63)% | 55.79% | 7.13% | 6.44% | (2.50)% | 23.84% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.01% A | 1.01% | 1.05% | 1.05% | 1.09% | 1.16% |
Expenses net of fee waivers, if any | 1.01% A | 1.01% | 1.05% | 1.05% | 1.09% | 1.16% |
Expenses net of all reductions | 1.01% A | .98% | 1.02% | 1.01% | 1.09% | 1.14% |
Net investment income (loss) | .72% A | .18% | .67% | .88% | .43% | .33% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 445,842 | $ 661,445 | $ 237,893 | $ 303,619 | $ 285,603 | $ 395,714 |
Portfolio turnover rate F | 182% A | 91% | 86% | 133% | 78% | 183% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the Fund. 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 Fund 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 Fund. H Amount represents less than $.01 per share. I Total distributions of $.14 per share is comprised of distributions from net investment income of $.045 and distributions from net realized gain of $.095 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Japan Smaller Companies Fund (the Fund) is a fund of Fidelity Investment Trust (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.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, as well as a roll forward of Level 3 investments, 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
Expenses. 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.
Distributions are declared and recorded on the ex-dividend date. 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 13,912,405 |
Gross unrealized depreciation | (17,985,177) |
Net unrealized appreciation (depreciation) on securities and other investments | $ (4,072,772) |
|
|
Tax cost | $ 445,536,594 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration |
|
2017 | $ (43,585,911) |
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $508,698,388 and $687,730,844, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .19% of average net assets.
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.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 4,645,571 | .32% | $ 286 |
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 $564 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Security Lending - continued
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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $29,596. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2,680.
9. 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, Strategic Advisers International Fund was the owner of record of approximately 18% of the total outstanding shares of the Fund. Mutual funds managed by the investment adviser or its affiliates were the owners of record, in the aggregate, of approximately 30% of the total outstanding shares of the Fund.
Semiannual Report
Fidelity Latin America Fund
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 (November 1, 2013 to April 30, 2014).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Class A | 1.38% |
|
|
|
Actual |
| $ 1,000.00 | $ 947.50 | $ 6.66 |
HypotheticalA |
| $ 1,000.00 | $ 1,017.95 | $ 6.90 |
Class T | 1.65% |
|
|
|
Actual |
| $ 1,000.00 | $ 946.20 | $ 7.96 |
HypotheticalA |
| $ 1,000.00 | $ 1,016.61 | $ 8.25 |
Class B | 2.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 943.90 | $ 10.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.23 | $ 10.64 |
Class C | 2.13% |
|
|
|
Actual |
| $ 1,000.00 | $ 944.00 | $ 10.27 |
HypotheticalA |
| $ 1,000.00 | $ 1,014.23 | $ 10.64 |
Latin America | 1.08% |
|
|
|
Actual |
| $ 1,000.00 | $ 948.70 | $ 5.22 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.44 | $ 5.41 |
Institutional Class | 1.04% |
|
|
|
Actual |
| $ 1,000.00 | $ 949.50 | $ 5.03 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.64 | $ 5.21 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* 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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Fidelity Latin America Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Brazil | 48.1% |
| |
Mexico | 20.6% |
| |
Chile | 12.0% |
| |
Colombia | 9.5% |
| |
Peru | 3.5% |
| |
United States of America* | 2.2% |
| |
Spain | 1.2% |
| |
France | 0.9% |
| |
Panama | 0.8% |
| |
Other | 1.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Brazil | 50.1% |
| |
Mexico | 19.3% |
| |
Chile | 14.0% |
| |
Colombia | 8.8% |
| |
Peru | 3.3% |
| |
United States of America* | 2.7% |
| |
Spain | 0.9% |
| |
France | 0.5% |
| |
Panama | 0.2% |
| |
Other | 0.2% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.7 | 99.3 |
Short-Term Investments and Net Other Assets (Liabilities) | 1.3 | 0.7 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Itau Unibanco Holding SA (Brazil, Banks) | 6.6 | 5.9 |
America Movil S.A.B. de CV Series L (Mexico, Wireless Telecommunication Services) | 5.5 | 7.7 |
Ambev SA sponsored ADR (Brazil, Beverages) | 5.0 | 0.0 |
Petroleo Brasileiro SA - Petrobras (PN) (non-vtg.) (Brazil, Oil, Gas & Consumable Fuels) | 4.7 | 6.4 |
Grupo de Inversiones Suramerica SA (Colombia, Diversified Financial Services) | 3.2 | 2.7 |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR (Mexico, Beverages) | 3.1 | 3.1 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil, Food & Staples Retailing) | 2.7 | 1.2 |
Compania de Minas Buenaventura SA sponsored ADR (Peru, Metals & Mining) | 2.6 | 2.6 |
Inversiones Argos SA (Colombia, Construction Materials) | 2.5 | 2.5 |
Petroleo Brasileiro SA - Petrobras (Brazil, Oil, Gas & Consumable Fuels) | 2.5 | 3.8 |
| 38.4 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 26.9 | 22.8 |
Consumer Staples | 23.5 | 24.5 |
Telecommunication Services | 11.7 | 13.5 |
Materials | 10.0 | 10.8 |
Energy | 9.1 | 12.6 |
Industrials | 6.1 | 5.4 |
Consumer Discretionary | 4.9 | 5.1 |
Information Technology | 3.1 | 1.0 |
Utilities | 2.4 | 3.6 |
Health Care | 1.0 | 0.0 |
Semiannual Report
Fidelity Latin America Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 67.3% | |||
Shares | Value | ||
Brazil - 18.3% | |||
Banco Bradesco SA | 364,500 | $ 5,598,890 | |
BB Seguridade Participacoes SA | 1,320,400 | 15,473,507 | |
BTG Pactual Participations Ltd. unit | 1,286,800 | 17,561,307 | |
CCR SA | 2,007,400 | 15,709,891 | |
Cielo SA | 1,510,900 | 26,765,579 | |
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) | 960,500 | 9,097,773 | |
Cyrela Brazil Realty SA | 478,500 | 2,901,366 | |
Embraer SA | 153,400 | 1,326,405 | |
Estacio Participacoes SA | 1,616,000 | 17,306,909 | |
Fleury SA | 1,261,700 | 8,465,089 | |
Hypermarcas SA | 615,300 | 4,533,862 | |
Industrias Romi SA | 2,256,600 | 5,110,811 | |
M. Dias Branco SA | 244,100 | 10,551,119 | |
Multiplus SA | 807,700 | 10,334,648 | |
Petroleo Brasileiro SA - Petrobras (ON) | 619,728 | 4,344,141 | |
Souza Cruz SA | 2,994,000 | 27,324,992 | |
TIM Participacoes SA | 1,933,395 | 10,491,795 | |
Tractebel Energia SA | 417,675 | 6,211,505 | |
Vale SA sponsored ADR | 544,093 | 7,192,909 | |
TOTAL BRAZIL | 206,302,498 | ||
Chile - 10.8% | |||
Aguas Andinas SA | 8,409,186 | 5,187,792 | |
Banco de Chile | 65,951,092 | 8,473,924 | |
Banco de Chile sponsored ADR | 114,754 | 8,878,517 | |
Banco Santander Chile sponsored ADR (d) | 422,409 | 10,251,866 | |
CAP SA | 554,946 | 8,320,428 | |
Compania Cervecerias Unidas SA | 1,912,232 | 22,570,407 | |
Empresa Nacional de Telecomunicaciones SA (ENTEL) | 1,853,521 | 22,754,499 | |
Inversiones La Construccion SA | 927,850 | 12,209,526 | |
LATAM Airlines Group SA | 270,677 | 4,130,276 | |
LATAM Airlines Group SA sponsored ADR (d) | 907,712 | 13,915,225 | |
Sociedad Matriz SAAM SA | 58,746,810 | 4,747,596 | |
TOTAL CHILE | 121,440,056 | ||
Colombia - 9.1% | |||
Bolsa de Valores de Colombia | 586,230,591 | 6,266,204 | |
Cemex Latam Holdings SA (a) | 831,972 | 7,681,427 | |
Ecopetrol SA | 7,209,273 | 13,420,306 | |
Empresa de Telecomunicaciones de Bogota | 40,032,169 | 9,157,534 | |
Grupo Aval Acciones y Valores SA | 2,710,997 | 1,840,859 | |
Grupo de Inversiones Suramerica SA | 1,833,342 | 35,766,062 | |
Inversiones Argos SA | 2,562,204 | 28,207,629 | |
TOTAL COLOMBIA | 102,340,021 | ||
France - 0.9% | |||
Carrefour SA (d) | 254,146 | 9,883,082 | |
| |||
Shares | Value | ||
Mexico - 20.6% | |||
America Movil S.A.B. de CV: | |||
Series L | 5,073,400 | $ 5,103,357 | |
Series L sponsored ADR | 2,843,973 | 57,106,978 | |
CEMEX S.A.B. de CV sponsored ADR (d) | 82,891 | 1,047,742 | |
Consorcio ARA S.A.B. de CV (a) | 23,993,705 | 10,545,474 | |
Controladora Commercial Mexicana S.A.B. de CV unit | 1,738,815 | 6,467,351 | |
Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 379,405 | 34,438,592 | |
Gruma S.A.B. de CV Series B (a) | 1,236,609 | 10,924,864 | |
Grupo Aeroportuario del Pacifico SA de CV sponsored ADR | 115,800 | 6,982,740 | |
Grupo Financiero Inbursa S.A.B. de CV Series O | 10,637,219 | 27,205,392 | |
Grupo Financiero Santander Mexico S.A.B. de CV | 3,772,955 | 8,971,862 | |
Grupo Televisa SA de CV (CPO) sponsored ADR | 185,400 | 6,082,974 | |
Industrias Penoles SA de CV | 302,213 | 7,034,677 | |
Infraestructura Energetica Nova S.A.B. de CV (d) | 1,223,900 | 6,372,671 | |
Medica Sur SA de CV | 724,471 | 2,464,234 | |
Megacable Holdings S.A.B. de CV unit | 2,272,829 | 9,014,702 | |
Qualitas Controladora S.A.B. de CV | 2,101,200 | 6,005,149 | |
Wal-Mart de Mexico SA de CV Series V (d) | 10,513,248 | 26,582,962 | |
TOTAL MEXICO | 232,351,721 | ||
Panama - 0.8% | |||
Banco Latinoamericano de Comercio Exterior SA Series E | 330,370 | 8,497,116 | |
Peru - 3.5% | |||
Alicorp SA Class C | 3,514,904 | 10,641,740 | |
Compania de Minas Buenaventura SA sponsored ADR | 2,247,036 | 29,211,468 | |
TOTAL PERU | 39,853,208 | ||
Puerto Rico - 0.7% | |||
EVERTEC, Inc. | 336,774 | 7,927,660 | |
Spain - 1.2% | |||
Banco Bilbao Vizcaya Argentaria SA | 647,764 | 7,978,992 | |
Prosegur Compania de Seguridad SA (Reg.) | 896,154 | 6,005,039 | |
TOTAL SPAIN | 13,984,031 | ||
Switzerland - 0.2% | |||
ABB Ltd. (Reg.) | 96,120 | 2,314,194 | |
United Kingdom - 0.3% | |||
Cable & Wireless PLC | 3,534,400 | 3,150,830 | |
Common Stocks - continued | |||
Shares | Value | ||
United States of America - 0.9% | |||
BPZ Energy, Inc. (a)(d) | 3,060,350 | $ 8,262,945 | |
First Cash Financial Services, Inc. (a) | 43,966 | 2,144,222 | |
TOTAL UNITED STATES OF AMERICA | 10,407,167 | ||
TOTAL COMMON STOCKS (Cost $643,864,591) |
| ||
Nonconvertible Preferred Stocks - 31.4% | |||
|
|
|
|
Brazil - 29.8% | |||
Ambev SA sponsored ADR | 7,703,247 | 55,848,541 | |
Banco Bradesco SA (PN) | 1,262,417 | 18,791,174 | |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar: | |||
(PN) | 329,225 | 15,577,189 | |
sponsored ADR | 308,170 | 14,656,565 | |
Embraer SA sponsored ADR | 268,634 | 9,241,010 | |
Forjas Taurus SA | 1,098,900 | 512,549 | |
Itau Unibanco Holding SA | 3,919,750 | 64,691,920 | |
Itau Unibanco Holding SA sponsored ADR | 589,925 | 9,651,173 | |
Itausa-Investimentos Itau SA (PN) | 4,599,921 | 20,217,166 | |
Petroleo Brasileiro SA - Petrobras: | |||
(PN) (non-vtg.) | 7,115,471 | 52,877,387 | |
sponsored ADR (d) | 1,700,586 | 23,604,134 | |
Telefonica Brasil SA | 1,177,413 | 24,733,726 | |
Vale SA: | |||
(PN-A) | 1,777,600 | 21,062,537 | |
(PN-A) sponsored ADR | 323,775 | 3,843,209 | |
TOTAL BRAZIL | 335,308,280 | ||
Chile - 1.2% | |||
Embotelladora Andina SA: | |||
Class A | 1,321,447 | 4,238,897 | |
Class B | 2,207,046 | 8,878,954 | |
TOTAL CHILE | 13,117,851 | ||
| |||
Shares | Value | ||
Colombia - 0.4% | |||
Grupo Aval Acciones y Valores SA | 2,897,449 | $ 1,959,985 | |
Grupo de Inversiones Suramerica SA | 161,141 | 3,178,594 | |
TOTAL COLOMBIA | 5,138,579 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $210,828,951) |
| ||
Money Market Funds - 3.7% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 6,453,651 | 6,453,651 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 34,759,555 | 34,759,555 | |
TOTAL MONEY MARKET FUNDS (Cost $41,213,206) |
| ||
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $895,906,748) | 1,153,229,500 | ||
NET OTHER ASSETS (LIABILITIES) - (2.4)% | (26,568,110) | ||
NET ASSETS - 100% | $ 1,126,661,390 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 2,966 |
Fidelity Securities Lending Cash Central Fund | 119,649 |
Total | $ 122,615 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 56,186,073 | $ 56,186,073 | $ - | $ - |
Consumer Staples | 263,119,117 | 263,119,117 | - | - |
Energy | 102,508,913 | 102,508,913 | - | - |
Financials | 301,613,407 | 293,634,415 | 7,978,992 | - |
Health Care | 10,929,323 | 10,929,323 | - | - |
Industrials | 69,995,736 | 67,681,542 | 2,314,194 | - |
Information Technology | 34,693,239 | 34,693,239 | - | - |
Materials | 113,602,026 | 113,602,026 | - | - |
Telecommunication Services | 132,498,719 | 132,498,719 | - | - |
Utilities | 26,869,741 | 26,869,741 | - | - |
Money Market Funds | 41,213,206 | 41,213,206 | - | - |
Total Investments in Securities: | $ 1,153,229,500 | $ 1,142,936,314 | $ 10,293,186 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Latin America Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $33,288,931) - See accompanying schedule: Unaffiliated issuers (cost $854,693,542) | $ 1,112,016,294 |
|
Fidelity Central Funds (cost $41,213,206) | 41,213,206 |
|
Total Investments (cost $895,906,748) |
| $ 1,153,229,500 |
Cash |
| 967,488 |
Foreign currency held at value (cost $755,488) | 755,440 | |
Receivable for investments sold | 8,236,342 | |
Receivable for fund shares sold | 674,290 | |
Dividends receivable | 3,752,972 | |
Distributions receivable from Fidelity Central Funds | 32,714 | |
Other receivables | 8,199 | |
Total assets | 1,167,656,945 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 3,602,035 | |
Payable for fund shares redeemed | 1,304,652 | |
Accrued management fee | 657,943 | |
Distribution and service plan fees payable | 25,937 | |
Other affiliated payables | 275,656 | |
Other payables and accrued expenses | 369,777 | |
Collateral on securities loaned, at value | 34,759,555 | |
Total liabilities | 40,995,555 | |
|
|
|
Net Assets | $ 1,126,661,390 | |
Net Assets consist of: |
| |
Paid in capital | $ 800,425,138 | |
Undistributed net investment income | 10,478,331 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 58,556,276 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 257,201,645 | |
Net Assets | $ 1,126,661,390 |
Statement of Assets and Liabilities - continued
| April 30, 2014 (Unaudited) | |
|
|
|
Calculation of Maximum Offering Price Class A: | $ 31.58 | |
|
|
|
Maximum offering price per share (100/94.25 of $31.58) | $ 33.51 | |
Class T: | $ 31.64 | |
|
|
|
Maximum offering price per share (100/96.50 of $31.64) | $ 32.79 | |
Class B: | $ 31.85 | |
|
|
|
Class C: | $ 31.76 | |
|
|
|
Latin America: | $ 31.56 | |
|
|
|
Institutional Class: | $ 31.56 |
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.
Semiannual Report
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 24,775,226 |
Income from Fidelity Central Funds |
| 122,615 |
Income before foreign taxes withheld |
| 24,897,841 |
Less foreign taxes withheld |
| (3,249,838) |
Total income |
| 21,648,003 |
|
|
|
Expenses | ||
Management fee | $ 4,050,940 | |
Transfer agent fees | 1,467,258 | |
Distribution and service plan fees | 159,294 | |
Accounting and security lending fees | 272,103 | |
Custodian fees and expenses | 374,664 | |
Independent trustees' compensation | 2,373 | |
Registration fees | 53,185 | |
Audit | 39,614 | |
Legal | 3,401 | |
Interest | 1,108 | |
Miscellaneous | 4,419 | |
Total expenses before reductions | 6,428,359 | |
Expense reductions | (21,544) | 6,406,815 |
Net investment income (loss) | 15,241,188 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 60,405,238 | |
Foreign currency transactions | (900,481) | |
Total net realized gain (loss) |
| 59,504,757 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $45,220) | (156,985,650) | |
Assets and liabilities in foreign currencies | 240,947 | |
Total change in net unrealized appreciation (depreciation) |
| (156,744,703) |
Net gain (loss) | (97,239,946) | |
Net increase (decrease) in net assets resulting from operations | $ (81,998,758) |
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 15,241,188 | $ 36,522,207 |
Net realized gain (loss) | 59,504,757 | 270,423,636 |
Change in net unrealized appreciation (depreciation) | (156,744,703) | (468,204,656) |
Net increase (decrease) in net assets resulting from operations | (81,998,758) | (161,258,813) |
Distributions to shareholders from net investment income | (23,599,176) | (45,716,095) |
Distributions to shareholders from net realized gain | (209,492,273) | (164,648,488) |
Total distributions | (233,091,449) | (210,364,583) |
Share transactions - net increase (decrease) | 30,666,042 | (626,013,705) |
Redemption fees | 88,767 | 218,753 |
Total increase (decrease) in net assets | (284,335,398) | (997,418,348) |
|
|
|
Net Assets | ||
Beginning of period | 1,410,996,788 | 2,408,415,136 |
End of period (including undistributed net investment income of $10,478,331 and undistributed net investment income of $18,836,319, respectively) | $ 1,126,661,390 | $ 1,410,996,788 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.71 | $ 48.95 | $ 52.38 | $ 57.48 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .37 | .72 | .92 | 1.15 | .02 |
Net realized and unrealized gain (loss) | (2.68) | (4.73) | (3.66) | (5.87) | 2.79 |
Total from investment operations | (2.31) | (4.01) | (2.74) | (4.72) | 2.81 |
Distributions from net investment income | (.57) | (.79) | (.70) | (.19) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.82) | (4.24) | (.70) | (.39) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.58 | $ 40.71 | $ 48.95 | $ 52.38 | $ 57.48 |
Total Return B, C, D | (5.25)% | (8.93)% | (5.23)% | (8.26)% | 5.14% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.38% A | 1.37% | 1.35% | 1.34% | 1.37% A |
Expenses net of fee waivers, if any | 1.38% A | 1.37% | 1.35% | 1.34% | 1.37% A |
Expenses net of all reductions | 1.38% A | 1.35% | 1.35% | 1.34% | 1.34% A |
Net investment income (loss) | 2.37% A | 1.66% | 1.80% | 2.05% | .39% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 39,580 | $ 48,464 | $ 69,654 | $ 91,407 | $ 115,626 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class T
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.68 | $ 48.88 | $ 52.27 | $ 57.47 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .33 | .61 | .78 | .99 | .01 |
Net realized and unrealized gain (loss) | (2.69) | (4.74) | (3.65) | (5.85) | 2.79 |
Total from investment operations | (2.36) | (4.13) | (2.87) | (4.86) | 2.80 |
Distributions from net investment income | (.43) | (.63) | (.53) | (.15) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.68) | (4.08) | (.53) | (.35) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.64 | $ 40.68 | $ 48.88 | $ 52.27 | $ 57.47 |
Total Return B, C, D | (5.38)% | (9.17)% | (5.49)% | (8.50)% | 5.12% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.65% A | 1.63% | 1.61% | 1.61% | 1.63% A |
Expenses net of fee waivers, if any | 1.65% A | 1.63% | 1.61% | 1.61% | 1.63% A |
Expenses net of all reductions | 1.64% A | 1.61% | 1.61% | 1.61% | 1.60% A |
Net investment income (loss) | 2.11% A | 1.40% | 1.54% | 1.78% | .13% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 10,482 | $ 12,705 | $ 19,334 | $ 26,020 | $ 36,820 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.63 | $ 48.72 | $ 52.06 | $ 57.44 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .26 | .40 | .53 | .72 | (.02) |
Net realized and unrealized gain (loss) | (2.69) | (4.74) | (3.63) | (5.84) | 2.79 |
Total from investment operations | (2.43) | (4.34) | (3.10) | (5.12) | 2.77 |
Distributions from net investment income | (.10) | (.31) | (.25) | (.07) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.35) | (3.76) | (.25) | (.27) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.85 | $ 40.63 | $ 48.72 | $ 52.06 | $ 57.44 |
Total Return B, C, D | (5.61)% | (9.60)% | (5.95)% | (8.94)% | 5.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.12% | 2.10% | 2.10% | 2.12% A |
Expenses net of fee waivers, if any | 2.13% A | 2.12% | 2.10% | 2.10% | 2.12% A |
Expenses net of all reductions | 2.13% A | 2.10% | 2.10% | 2.10% | 2.10% A |
Net investment income (loss) | 1.62% A | .91% | 1.05% | 1.29% | (.36)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 2,969 | $ 4,764 | $ 9,492 | $ 14,114 | $ 20,392 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
Financial Highlights - Class C
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.59 | $ 48.73 | $ 52.05 | $ 57.44 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .26 | .40 | .54 | .73 | (.02) |
Net realized and unrealized gain (loss) | (2.68) | (4.74) | (3.64) | (5.84) | 2.79 |
Total from investment operations | (2.42) | (4.34) | (3.10) | (5.11) | 2.77 |
Distributions from net investment income | (.16) | (.36) | (.23) | (.09) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.41) | (3.81) | (.23) | (.29) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.76 | $ 40.59 | $ 48.73 | $ 52.05 | $ 57.44 |
Total Return B, C, D | (5.60)% | (9.62)% | (5.94)% | (8.93)% | 5.06% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 2.13% A | 2.12% | 2.10% | 2.08% | 2.09% A |
Expenses net of fee waivers, if any | 2.13% A | 2.12% | 2.10% | 2.08% | 2.09% A |
Expenses net of all reductions | 2.13% A | 2.10% | 2.10% | 2.08% | 2.07% A |
Net investment income (loss) | 1.62% A | .91% | 1.06% | 1.31% | (.34)% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 12,781 | $ 15,185 | $ 27,405 | $ 35,203 | $ 48,329 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. F 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. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. I 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. J The portfolio turnover rate does not include the assets acquired in the merger. K Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Latin America
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 40.80 | $ 49.09 | $ 52.48 | $ 57.50 | $ 47.29 | $ 28.69 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .42 | .87 | 1.09 | 1.34 | 1.07 | .72 |
Net realized and unrealized gain (loss) | (2.70) | (4.74) | (3.67) | (5.88) | 11.00 | 18.32 |
Total from investment operations | (2.28) | (3.87) | (2.58) | (4.54) | 12.07 | 19.04 |
Distributions from net investment income | (.71) | (.98) | (.82) | (.29) | (1.49) | (.46) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | (.39) | - |
Total distributions | (6.96) | (4.43) | (.82) | (.49) | (1.88) | (.46) |
Redemption fees added to paid in capital D | - I | .01 | .01 | .01 | .02 | .02 |
Net asset value, end of period | $ 31.56 | $ 40.80 | $ 49.09 | $ 52.48 | $ 57.50 | $ 47.29 |
Total Return B, C | (5.13)% | (8.63)% | (4.91)% | (7.96)% | 25.91% | 67.88% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.08% A | 1.04% | 1.02% | 1.00% | 1.03% | 1.07% |
Expenses net of fee waivers, if any | 1.08% A | 1.04% | 1.02% | 1.00% | 1.03% | 1.07% |
Expenses net of all reductions | 1.08% A | 1.03% | 1.02% | 1.00% | 1.01% | 1.05% |
Net investment income (loss) | 2.67% A | 1.99% | 2.14% | 2.39% | 2.10% | 2.04% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,057,005 | $ 1,324,748 | $ 2,274,601 | $ 2,884,301 | $ 4,283,462 | $ 4,043,748 |
Portfolio turnover rate F | 26% A | 23% | 23% | 11% | 56% H | 52% |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G 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. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. |
Financial Highlights - Institutional Class
| Six months ended | Years ended October 31, | |||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 H |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 40.79 | $ 49.07 | $ 52.51 | $ 57.49 | $ 55.47 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) E | .43 | .87 | 1.08 | 1.32 | .03 |
Net realized and unrealized gain (loss) | (2.68) | (4.74) | (3.67) | (5.88) | 2.79 |
Total from investment operations | (2.25) | (3.87) | (2.59) | (4.56) | 2.82 |
Distributions from net investment income | (.73) | (.97) | (.86) | (.23) | (.80) |
Distributions from net realized gain | (6.25) | (3.45) | - | (.20) | - |
Total distributions | (6.98) | (4.42) | (.86) | (.43) | (.80) |
Redemption fees added to paid in capital E | - K | .01 | .01 | .01 | - K |
Net asset value, end of period | $ 31.56 | $ 40.79 | $ 49.07 | $ 52.51 | $ 57.49 |
Total Return B, C, D | (5.05)% | (8.63)% | (4.93)% | (7.98)% | 5.15% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
Expenses before reductions | 1.04% A | 1.03% | 1.04% | 1.04% | 1.08% A |
Expenses net of fee waivers, if any | 1.04% A | 1.03% | 1.04% | 1.04% | 1.08% A |
Expenses net of all reductions | 1.04% A | 1.01% | 1.04% | 1.04% | 1.06% A |
Net investment income (loss) | 2.71% A | 2.00% | 2.12% | 2.35% | .68% A |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 3,845 | $ 5,131 | $ 7,928 | $ 9,603 | $ 12,868 |
Portfolio turnover rate G | 26% A | 23% | 23% | 11% | 56% J |
A Annualized 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 Calculated based on average shares outstanding during the period. 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period September 28, 2010 (commencement of sale of shares) to October 31, 2010. H 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity® Latin America Fund (the Fund) is a non-diversified fund of Fidelity Investment Trust (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 T, Class C, Latin America and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 which contain the significant accounting policies (including investment valuation policies) of those funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014 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 and may include proceeds received from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets and Liabilities.
Distributions 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, passive foreign investment companies (PFIC), deferred trustees compensation and losses deferred due to wash sales.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 352,843,675 |
Gross unrealized depreciation | (95,735,869) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 257,107,806 |
|
|
Tax cost | $ 896,121,694 |
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $153,218,021 and $344,847,341, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% 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 | Service | Total Fees | Retained |
Class A | -% | .25% | $ 50,201 | $ 15,850 |
Class T | .25% | .25% | 27,008 | 9,118 |
Class B | .75% | .25% | 17,560 | 15,046 |
Class C | .75% | .25% | 64,525 | 19,345 |
|
|
| $ 159,294 | $ 59,359 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained |
Class A | $ 8,568 |
Class T | 1,580 |
Class B* | 4,192 |
Class C* | 961 |
| $ 15,301 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
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 A | $ 59,941 | .30 |
Class T | 17,016 | .32 |
Class B | 5,244 | .30 |
Class C | 19,210 | .30 |
Latin America | 1,361,727 | .25 |
Institutional Class | 4,120 | .21 |
| $ 1,467,258 |
|
* 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 $6,208 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan | Weighted Average | Interest |
Borrower | $ 5,153,200 | .30% | $ 429 |
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 $1,123 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $119,649. During the period, there were no securities loaned to FCM.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $6,039,286. The weighted average interest rate was .58%. The interest expense amounted to $679 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $16,373 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $5,171.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income |
|
|
Class A | $ 667,095 | $ 1,098,761 |
Class T | 136,327 | 245,683 |
Class B | 12,098 | 57,649 |
Class C | 60,991 | 192,218 |
Latin America | 22,631,305 | 43,971,155 |
Institutional Class | 91,360 | 150,629 |
Total | $ 23,599,176 | $ 45,716,095 |
From net realized gain |
|
|
Class A | $ 7,249,224 | $ 4,828,947 |
Class T | 1,918,455 | 1,341,152 |
Class B | 684,975 | 641,573 |
Class C | 2,282,110 | 1,868,040 |
Latin America | 196,577,505 | 155,430,816 |
Institutional Class | 780,004 | 537,960 |
Total | $ 209,492,273 | $ 164,648,488 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended April 30, | Year ended | |
Class A |
|
|
|
|
Shares sold | 150,966 | 232,318 | $ 4,630,848 | $ 10,075,611 |
Reinvestment of distributions | 229,379 | 119,230 | 7,071,806 | 5,315,278 |
Shares redeemed | (317,483) | (584,100) | (9,905,785) | (25,288,174) |
Net increase (decrease) | 62,862 | (232,552) | $ 1,796,869 | $ (9,897,285) |
Class T |
|
|
|
|
Shares sold | 20,679 | 46,221 | $ 649,525 | $ 2,015,673 |
Reinvestment of distributions | 65,609 | 34,933 | 2,028,651 | 1,559,775 |
Shares redeemed | (67,332) | (164,385) | (2,064,637) | (7,142,972) |
Net increase (decrease) | 18,956 | (83,231) | $ 613,539 | $ (3,567,524) |
Class B |
|
|
|
|
Shares sold | 860 | 1,849 | $ 26,800 | $ 84,642 |
Reinvestment of distributions | 18,939 | 13,236 | 590,702 | 592,836 |
Shares redeemed | (43,864) | (92,657) | (1,377,702) | (4,084,874) |
Net increase (decrease) | (24,065) | (77,572) | $ (760,200) | $ (3,407,396) |
Semiannual Report
11. Share Transactions - continued
| Shares | Dollars | ||
Six months ended | Year ended | Six months ended April 30, | Year ended | |
Class C |
|
|
|
|
Shares sold | 65,258 | 46,994 | $ 2,036,104 | $ 2,021,869 |
Reinvestment of distributions | 69,412 | 42,623 | 2,158,721 | 1,907,392 |
Shares redeemed | (106,356) | (277,980) | (3,352,868) | (12,111,471) |
Net increase (decrease) | 28,314 | (188,363) | $ 841,957 | $ (8,182,210) |
Latin America |
|
|
|
|
Shares sold | 2,278,196 | 3,510,227 | $ 71,284,559 | $ 154,033,223 |
Reinvestment of distributions | 6,820,938 | 4,304,957 | 209,950,213 | 191,785,822 |
Shares redeemed | (8,083,044) | (21,678,292) | (252,974,033) | (945,202,869) |
Net increase (decrease) | 1,016,090 | (13,863,108) | $ 28,260,739 | $ (599,383,824) |
Institutional Class |
|
|
|
|
Shares sold | 70,610 | 62,065 | $ 2,214,205 | $ 2,723,553 |
Reinvestment of distributions | 21,472 | 11,511 | 660,491 | 512,716 |
Shares redeemed | (96,043) | (109,367) | (2,961,558) | (4,811,735) |
Net increase (decrease) | (3,961) | (35,791) | $ (86,862) | $ (1,575,466) |
12. 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.
Semiannual Report
Fidelity Nordic Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management 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 (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table 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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Actual | .99% | $ 1,000.00 | $ 1,144.80 | $ 5.26 |
HypotheticalA |
| $ 1,000.00 | $ 1,019.89 | $ 4.96 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Nordic Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Sweden | 37.9% |
| |
Denmark | 35.5% |
| |
Finland | 15.4% |
| |
United Kingdom | 3.0% |
| |
Malta | 2.5% |
| |
Bermuda | 2.4% |
| |
Norway | 2.2% |
| |
United States of America* | 0.7% |
| |
Marshall Islands | 0.4% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Sweden | 43.6% |
| |
Finland | 20.7% |
| |
Denmark | 15.4% |
| |
Bermuda | 7.7% |
| |
Norway | 3.5% |
| |
United States of America* | 3.3% |
| |
United Kingdom | 2.7% |
| |
Malta | 2.4% |
| |
Bailiwick of Jersey | 0.7% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 99.3 | 96.7 |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7 | 3.3 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Vestas Wind Systems A/S (Denmark, Electrical Equipment) | 8.2 | 0.0 |
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals) | 7.5 | 3.0 |
Swedish Match Co. AB (Sweden, Tobacco) | 4.8 | 3.2 |
Nordea Bank AB (Sweden, Banks) | 4.8 | 1.6 |
Svenska Handelsbanken AB (A Shares) (Sweden, Banks) | 4.1 | 4.1 |
Christian Hansen Holding A/S (Denmark, Chemicals) | 3.5 | 2.6 |
ASSA ABLOY AB (B Shares) (Sweden, Building Products) | 3.1 | 3.8 |
Valmet Corp. (Finland, Machinery) | 3.1 | 0.0 |
Pandora A/S (Denmark, Textiles, Apparel & Luxury Goods) | 3.0 | 0.0 |
G4S PLC (United Kingdom) (United Kingdom, Commercial Services & Supplies) | 3.0 | 2.7 |
| 45.1 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Industrials | 28.2 | 25.2 |
Financials | 17.9 | 26.2 |
Health Care | 16.8 | 8.1 |
Consumer Discretionary | 13.7 | 12.6 |
Consumer Staples | 8.8 | 11.1 |
Materials | 6.1 | 5.7 |
Information Technology | 5.2 | 6.2 |
Energy | 2.6 | 1.6 |
Semiannual Report
Fidelity Nordic Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
Bermuda - 2.4% | |||
Vostok Nafta Investment Ltd. SDR (a)(d) | 2,179,600 | $ 14,246,409 | |
Denmark - 35.5% | |||
Ambu A/S Series B (d) | 228,500 | 15,268,727 | |
Christian Hansen Holding A/S | 451,900 | 20,369,099 | |
Coloplast A/S Series B | 165,600 | 13,894,394 | |
ISS Holdings A/S (a) | 336,300 | 11,707,991 | |
Novo Nordisk A/S Series B | 973,905 | 44,201,671 | |
Novozymes A/S Series B | 322,900 | 15,466,790 | |
Pandora A/S | 266,300 | 17,913,377 | |
Solar Holding A/S | 124,402 | 8,601,774 | |
Topdanmark A/S (a) | 444,500 | 12,996,255 | |
Vestas Wind Systems A/S (a) | 1,080,400 | 47,955,299 | |
TOTAL DENMARK | 208,375,377 | ||
Finland - 15.4% | |||
Amer Group PLC (A Shares) | 511,100 | 10,551,030 | |
Caverion Corp. | 817,400 | 9,026,798 | |
Kesko Oyj | 367,100 | 14,993,680 | |
Lassila & Tikahoja Oyj | 395,700 | 7,713,090 | |
Nokia Corp. | 1,797,500 | 13,458,926 | |
Raisio Group PLC (V Shares) | 1,295,992 | 8,468,554 | |
Vaisala Oyj | 256,300 | 8,331,188 | |
Valmet Corp. (d) | 1,558,085 | 18,071,053 | |
TOTAL FINLAND | 90,614,319 | ||
Malta - 2.5% | |||
Unibet Group PLC unit | 272,561 | 14,692,355 | |
Marshall Islands - 0.4% | |||
Tanker Investments Ltd. (a) | 213,200 | 2,501,674 | |
Norway - 2.2% | |||
Statoil ASA | 419,600 | 12,791,679 | |
Sweden - 37.9% | |||
AF AB (B Shares) (d) | 321,200 | 11,608,686 | |
ASSA ABLOY AB (B Shares) | 348,800 | 18,464,052 | |
CDON Group AB (a)(d) | 2,853,302 | 11,628,757 | |
DIBS Payment Services AB (e) | 958,000 | 8,803,251 | |
East Capital Explorer AB (a) | 1,005,000 | 8,114,561 | |
East Capital Explorer AB rights 6/4/14 (a) | 1,005,000 | 1,532,625 | |
Eniro AB (a) | 1,370,805 | 10,878,401 | |
H&M Hennes & Mauritz AB (B Shares) (d) | 367,373 | 14,961,147 | |
| |||
Shares | Value | ||
Intrum Justitia AB | 506,287 | $ 14,646,210 | |
Investment AB Kinnevik (B Shares) | 449,100 | 15,782,251 | |
Meda AB (A Shares) | 834,400 | 14,937,123 | |
Nordea Bank AB | 1,936,000 | 27,973,178 | |
Svenska Handelsbanken AB (A Shares) | 483,800 | 24,278,543 | |
Swedish Match Co. AB | 827,700 | 28,374,140 | |
Vitrolife AB | 615,700 | 10,794,777 | |
TOTAL SWEDEN | 222,777,702 | ||
United Kingdom - 3.0% | |||
G4S PLC (United Kingdom) | 4,363,400 | 17,386,508 | |
TOTAL COMMON STOCKS (Cost $482,881,016) |
| ||
Money Market Funds - 5.9% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 2,721,814 | 2,721,814 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 32,159,805 | 32,159,805 | |
TOTAL MONEY MARKET FUNDS (Cost $34,881,619) |
| ||
TOTAL INVESTMENT PORTFOLIO - 105.2% (Cost $517,762,635) | 618,267,642 | ||
NET OTHER ASSETS (LIABILITIES) - (5.2)% | (30,459,753) | ||
NET ASSETS - 100% | $ 587,807,889 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
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 | $ 20,278 |
Fidelity Securities Lending Cash Central Fund | 602,566 |
Total | $ 622,844 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
DIBS Payment Services AB | $ 6,652,726 | $ - | $ - | $ - | $ 8,803,251 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the table 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: | ||||
Consumer Discretionary | $ 80,625,067 | $ 80,625,067 | $ - | $ - |
Consumer Staples | 51,836,374 | 51,836,374 | - | - |
Energy | 15,293,353 | 2,501,674 | 12,791,679 | - |
Financials | 104,923,822 | 103,391,197 | 1,532,625 | - |
Health Care | 99,096,692 | 54,895,021 | 44,201,671 | - |
Industrials | 165,181,461 | 165,181,461 | - | - |
Information Technology | 30,593,365 | 17,134,439 | 13,458,926 | - |
Materials | 35,835,889 | 35,835,889 | - | - |
Money Market Funds | 34,881,619 | 34,881,619 | - | - |
Total Investments in Securities: | $ 618,267,642 | $ 546,282,741 | $ 71,984,901 | $ - |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Nordic Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $30,351,723) - See accompanying schedule: Unaffiliated issuers (cost $475,781,377) | $ 574,582,772 |
|
Fidelity Central Funds (cost $34,881,619) | 34,881,619 |
|
Other affiliated issuers (cost $7,099,639) | 8,803,251 |
|
Total Investments (cost $517,762,635) |
| $ 618,267,642 |
Foreign currency held at value (cost $5,284) | 5,307 | |
Receivable for fund shares sold | 1,798,737 | |
Dividends receivable | 1,478,765 | |
Distributions receivable from Fidelity Central Funds | 156,317 | |
Prepaid expenses | 281 | |
Other receivables | 4,741 | |
Total assets | 621,711,790 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 1,241,647 | |
Accrued management fee | 333,101 | |
Other affiliated payables | 115,744 | |
Other payables and accrued expenses | 53,604 | |
Collateral on securities loaned, at value | 32,159,805 | |
Total liabilities | 33,903,901 | |
|
|
|
Net Assets | $ 587,807,889 | |
Net Assets consist of: |
| |
Paid in capital | $ 553,055,888 | |
Undistributed net investment income | 5,583,102 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (71,342,699) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 100,511,598 | |
Net Assets, for 12,419,156 shares outstanding | $ 587,807,889 | |
Net Asset Value, offering price and redemption price per share ($587,807,889 ÷ 12,419,156 shares) | $ 47.33 |
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 8,963,568 |
Income from Fidelity Central Funds (including $602,566 from security lending) |
| 622,844 |
Income before foreign taxes withheld |
| 9,586,412 |
Less foreign taxes withheld |
| (1,211,607) |
Total income |
| 8,374,805 |
|
|
|
Expenses | ||
Management fee | $ 1,829,032 | |
Transfer agent fees | 515,295 | |
Accounting and security lending fees | 135,913 | |
Custodian fees and expenses | 33,370 | |
Independent trustees' compensation | 972 | |
Registration fees | 26,691 | |
Audit | 38,195 | |
Legal | 886 | |
Miscellaneous | 1,691 | |
Total expenses before reductions | 2,582,045 | |
Expense reductions | (9,124) | 2,572,921 |
Net investment income (loss) | 5,801,884 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 56,660,248 | |
Foreign currency transactions | (140,492) | |
Total net realized gain (loss) |
| 56,519,756 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 7,168,816 | |
Assets and liabilities in foreign currencies | 9,667 | |
Total change in net unrealized appreciation (depreciation) |
| 7,178,483 |
Net gain (loss) | 63,698,239 | |
Net increase (decrease) in net assets resulting from operations | $ 69,500,123 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 5,801,884 | $ 8,402,112 |
Net realized gain (loss) | 56,519,756 | 30,455,937 |
Change in net unrealized appreciation (depreciation) | 7,178,483 | 89,425,745 |
Net increase (decrease) in net assets resultingnfrom operations | 69,500,123 | 128,283,794 |
Distributions to shareholders from net investment income | (8,604,710) | (5,930,609) |
Distributions to shareholders from net realized gain | (18,652,188) | - |
Total distributions | (27,256,898) | (5,930,609) |
Share transactions | 141,754,041 | 102,329,656 |
Reinvestment of distributions | 26,169,902 | 5,720,237 |
Cost of shares redeemed | (61,611,558) | (88,249,829) |
Net increase (decrease) in net assets resulting from share transactions | 106,312,385 | 19,800,064 |
Redemption fees | 105,609 | 42,742 |
Total increase (decrease) in net assets | 148,661,219 | 142,195,991 |
|
|
|
Net Assets | ||
Beginning of period | 439,146,670 | 296,950,679 |
End of period (including undistributed net investment income of $5,583,102 and undistributed net investment income of $8,385,928, respectively) | $ 587,807,889 | $ 439,146,670 |
Other Information Shares | ||
Sold | 3,178,718 | 2,653,497 |
Issued in reinvestment of distributions | 618,820 | 185,181 |
Redeemed | (1,380,507) | (2,539,813) |
Net increase (decrease) | 2,417,031 | 298,865 |
Financial Highlights
| Six months ended April 30, 2014 | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 43.91 | $ 30.60 | $ 29.60 | $ 32.27 | $ 26.33 | $ 20.75 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .50 | .90 | .70 G | .47 | .33 | .35 |
Net realized and unrealized gain (loss) | 5.54 | 13.04 | .91 | (2.86) | 5.94 | 6.29 |
Total from investment operations | 6.04 | 13.94 | 1.61 | (2.39) | 6.27 | 6.64 |
Distributions from net investment income | (.83) | (.63) | (.61) | (.29) | (.34) | (1.06) |
Distributions from net realized gain | (1.80) | - | - | - | - | - |
Total distributions | (2.63) | (.63) | (.61) | (.29) | (.34) | (1.06) |
Redemption fees added to paid in capital D | .01 | - I | - I | .01 | .01 | - I |
Net asset value, end of period | $ 47.33 | $ 43.91 | $ 30.60 | $ 29.60 | $ 32.27 | $ 26.33 |
Total Return B, C | 14.48% | 46.42% | 5.69% | (7.49)% | 24.05% | 34.90% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions | .99% A | 1.04% | 1.08% | 1.05% | 1.12% | 1.15% |
Expenses net of fee waivers, if any | .99% A | 1.04% | 1.08% | 1.05% | 1.12% | 1.15% |
Expenses net of all reductions | .99% A | 1.02% | 1.04% | .99% | 1.10% | 1.12% |
Net investment income (loss) | 2.22% A | 2.50% | 2.40% G | 1.40% | 1.16% | 1.71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 587,808 | $ 439,147 | $ 296,951 | $ 360,900 | $ 457,775 | $ 334,414 |
Portfolio turnover rate F | 90% A | 61% | 193% | 265% | 80% | 107% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.83%. HExpense ratios reflect operating expenses of the Fund. 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 Fund 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 Fund. IAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Nordic Fund (the Fund) is a fund of Fidelity Investment Trust (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.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. 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.
Distributions are declared and recorded on the ex-dividend date. 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 98,742,481 |
Gross unrealized depreciation | (11,262,500) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 87,479,981 |
|
|
Tax cost | $ 530,787,661 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
Fiscal year of expiration | |
2017 | $ (106,876,288) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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 1.50% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $313,975,331 and $219,144,983, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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 .70% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .20% of average net assets.
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.
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 $458 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $4,835 for the period.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $35.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $4,254.
Semiannual Report
9. 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.
Semiannual Report
Fidelity Pacific Basin Fund
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management 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 (November 1, 2013 to April 30, 2014).
Actual Expenses
The first line of the accompanying table 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 under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 | Beginning | Ending | Expenses Paid |
Actual | 1.19% | $ 1,000.00 | $ 1,003.40 | $ 5.91 |
HypotheticalA |
| $ 1,000.00 | $ 1,018.89 | $ 5.96 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Fidelity Pacific Basin Fund
Investment Changes (Unaudited)
Geographic Diversification (% of fund's net assets) | |||
As of April 30, 2014 | |||
Japan | 33.3% |
| |
Australia | 14.5% |
| |
Cayman Islands | 8.6% |
| |
Korea (South) | 7.6% |
| |
Singapore | 5.1% |
| |
Taiwan | 5.0% |
| |
Hong Kong | 4.6% |
| |
Bermuda | 4.3% |
| |
India | 3.9% |
| |
Other* | 13.1% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
As of October 31, 2013 | |||
Japan | 35.6% |
| |
Australia | 13.1% |
| |
Cayman Islands | 10.5% |
| |
Korea (South) | 7.4% |
| |
Taiwan | 4.4% |
| |
Singapore | 4.3% |
| |
United States of America* | 4.2% |
| |
Hong Kong | 3.8% |
| |
Bermuda | 3.8% |
| |
Other | 12.9% |
|
* Includes Short-Term Investments and Net Other Assets (Liabilities). |
Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Stocks | 98.0 | 96.7 |
Short-Term Investments and Net Other Assets (Liabilities) | 2.0 | 3.3 |
Top Ten Stocks as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 2.9 | 3.0 |
SoftBank Corp. (Japan, Wireless Telecommunication Services) | 2.6 | 2.9 |
Commonwealth Bank of Australia (Australia, Banks) | 2.5 | 2.4 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 2.3 | 2.1 |
ORIX Corp. (Japan, Diversified Financial Services) | 2.0 | 2.6 |
Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 1.9 | 1.5 |
Australia & New Zealand Banking Group Ltd. (Australia, Banks) | 1.9 | 1.8 |
Woolworths Ltd. (Australia, Food & Staples Retailing) | 1.7 | 1.3 |
AIA Group Ltd. (Hong Kong, Insurance) | 1.5 | 1.5 |
Cheung Kong Infrastructure Holdings Ltd. (Bermuda, Electric Utilities) | 1.4 | 1.6 |
| 20.7 | |
Market Sectors as of April 30, 2014 | ||
| % of fund's | % of fund's net assets |
Financials | 22.6 | 23.6 |
Consumer Discretionary | 16.7 | 15.5 |
Industrials | 13.3 | 13.8 |
Information Technology | 12.6 | 12.2 |
Consumer Staples | 10.4 | 9.7 |
Health Care | 9.3 | 9.1 |
Materials | 4.5 | 4.1 |
Telecommunication Services | 4.2 | 4.6 |
Energy | 2.2 | 1.7 |
Utilities | 2.2 | 2.4 |
Semiannual Report
Fidelity Pacific Basin Fund
Investments April 30, 2014 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value | ||
Australia - 14.5% | |||
Ansell Ltd. | 335,997 | $ 5,646,635 | |
ARB Corp. Ltd. (d) | 289,695 | 3,283,345 | |
Australia & New Zealand Banking Group Ltd. | 409,926 | 13,126,909 | |
Brambles Ltd. | 604,183 | 5,292,927 | |
Commonwealth Bank of Australia | 238,278 | 17,465,325 | |
CSL Ltd. | 147,257 | 9,361,344 | |
DuluxGroup Ltd. | 689,470 | 3,670,166 | |
Invocare Ltd. (d) | 319,066 | 3,153,827 | |
Magellan Financial Group Ltd. | 251,802 | 2,924,051 | |
SEEK Ltd. | 230,732 | 3,583,932 | |
Slater & Gordon Ltd. | 957,128 | 4,179,108 | |
Sydney Airport unit | 1,171,376 | 4,592,239 | |
Transurban Group unit | 872,677 | 5,893,912 | |
Woodside Petroleum Ltd. | 170,943 | 6,479,287 | |
Woolworths Ltd. | 341,094 | 11,825,825 | |
TOTAL AUSTRALIA | 100,478,832 | ||
Bermuda - 4.3% | |||
Brilliance China Automotive Holdings Ltd. | 3,352,000 | 5,179,572 | |
Cheung Kong Infrastructure Holdings Ltd. | 1,439,000 | 9,391,702 | |
China Animal Healthcare Ltd. (a) | 5,541,000 | 3,616,360 | |
Hongkong Land Holdings Ltd. | 1,236,000 | 8,652,000 | |
PAX Global Technology Ltd. (a) | 6,119,000 | 3,188,562 | |
TOTAL BERMUDA | 30,028,196 | ||
Cayman Islands - 8.6% | |||
Airtac International Group | 398,590 | 4,287,761 | |
AMVIG Holdings Ltd. | 9,408,000 | 3,421,996 | |
China High Precision Automation Group Ltd. (a) | 1,875,000 | 72,553 | |
China Metal Recycling (Holdings) Ltd. (a) | 2,572,200 | 3 | |
Cimc Enric Holdings Ltd. | 1,616,000 | 2,338,661 | |
ENN Energy Holdings Ltd. | 746,000 | 5,215,202 | |
Greatview Aseptic Pack Co. Ltd. | 5,678,000 | 3,464,093 | |
Hengan International Group Co. Ltd. | 500,500 | 5,271,003 | |
International Housewares Retail Co. Ltd. | 6,000,000 | 3,064,640 | |
Lifestyle International Holdings Ltd. | 1,542,500 | 3,020,160 | |
Sands China Ltd. | 734,400 | 5,361,448 | |
Tencent Holdings Ltd. | 213,700 | 13,318,781 | |
Want Want China Holdings Ltd. | 3,162,000 | 4,959,392 | |
WuXi PharmaTech Cayman, Inc. sponsored ADR (a) | 166,700 | 5,667,800 | |
TOTAL CAYMAN ISLANDS | 59,463,493 | ||
China - 2.3% | |||
Industrial & Commercial Bank of China Ltd. (H Shares) | 14,414,000 | 8,612,627 | |
Tsingtao Brewery Co. Ltd. (H Shares) | 996,000 | 7,251,975 | |
TOTAL CHINA | 15,864,602 | ||
| |||
Shares | Value | ||
Hong Kong - 4.6% | |||
AIA Group Ltd. | 2,148,000 | $ 10,417,299 | |
Galaxy Entertainment Group Ltd. | 703,000 | 5,517,584 | |
Goldpac Group Ltd. | 2,575,000 | 2,344,849 | |
Lenovo Group Ltd. | 4,242,000 | 4,825,833 | |
Magnificent Estates Ltd. | 67,338,000 | 3,257,051 | |
Techtronic Industries Co. Ltd. | 1,642,500 | 5,232,815 | |
TOTAL HONG KONG | 31,595,431 | ||
India - 3.9% | |||
Asian Paints India Ltd. | 360,763 | 3,021,461 | |
Bharti Infratel Ltd. (a) | 1,147,247 | 4,101,862 | |
Britannia Industries Ltd. | 334,421 | 4,790,790 | |
Housing Development Finance Corp. Ltd. | 187,495 | 2,791,364 | |
Lupin Ltd. | 197,296 | 3,366,557 | |
Petronet LNG Ltd. | 2,121,402 | 5,092,912 | |
Sun Pharmaceutical Industries Ltd. | 387,055 | 4,060,821 | |
TOTAL INDIA | 27,225,767 | ||
Indonesia - 1.5% | |||
PT Bank Central Asia Tbk | 4,792,000 | 4,559,272 | |
PT Gudang Garam Tbk | 858,000 | 4,192,970 | |
PT MNC Sky Vision Tbk | 8,196,000 | 1,580,858 | |
TOTAL INDONESIA | 10,333,100 | ||
Israel - 0.6% | |||
Sarine Technologies Ltd. | 1,898,750 | 4,195,212 | |
Italy - 0.9% | |||
Prada SpA | 767,100 | 6,124,571 | |
Japan - 33.3% | |||
ACOM Co. Ltd. (a)(d) | 604,100 | 2,056,309 | |
AEON Mall Co. Ltd. | 160,210 | 3,814,263 | |
Asahi Group Holdings | 217,200 | 5,986,889 | |
Astellas Pharma, Inc. | 760,500 | 8,457,852 | |
Broadleaf Co. Ltd. | 157,200 | 2,524,795 | |
Calbee, Inc. | 164,700 | 4,033,930 | |
Century Tokyo Leasing Corp. | 85,000 | 2,456,008 | |
Chiyoda Corp. | 418,000 | 5,597,320 | |
Create SD Holdings Co. Ltd. | 70,600 | 2,330,660 | |
Daikin Industries Ltd. | 110,700 | 6,389,599 | |
Daito Trust Construction Co. Ltd. | 43,700 | 4,441,170 | |
East Japan Railway Co. | 93,800 | 6,838,083 | |
Fuji Heavy Industries Ltd. | 180,600 | 4,743,102 | |
Hamakyorex Co. Ltd. | 81,100 | 2,240,989 | |
Harmonic Drive Systems, Inc. (d) | 165,500 | 4,686,482 | |
Hitachi Capital Corp. | 78,000 | 1,919,577 | |
Japan Exchange Group, Inc. | 107,800 | 2,127,847 | |
Japan Tobacco, Inc. | 236,400 | 7,760,145 | |
JIN Co. Ltd. (d) | 91,000 | 2,646,286 | |
Kansai Paint Co. Ltd. | 286,000 | 4,003,189 | |
KDDI Corp. | 130,700 | 6,957,201 | |
Keyence Corp. | 18,600 | 7,165,462 | |
Miraca Holdings, Inc. | 158,500 | 6,868,049 | |
Common Stocks - continued | |||
Shares | Value | ||
Japan - continued | |||
Mitsubishi Pencil Co. Ltd. | 102,800 | $ 3,051,773 | |
Mitsui Fudosan Co. Ltd. | 252,000 | 7,446,491 | |
MS&AD Insurance Group Holdings, Inc. | 155,700 | 3,487,583 | |
Nakanishi, Inc. | 123,200 | 4,205,683 | |
Nihon M&A Center, Inc. | 178,500 | 4,167,648 | |
Nihon Nohyaku Co. Ltd. | 243,000 | 3,025,764 | |
Nihon Parkerizing Co. Ltd. | 203,000 | 4,425,950 | |
Nippon Seiki Co. Ltd. | 236,000 | 4,120,507 | |
Nitori Holdings Co. Ltd. | 154,600 | 7,084,668 | |
ORIX Corp. | 957,900 | 13,838,884 | |
Rakuten, Inc. | 534,600 | 6,912,908 | |
Rinnai Corp. | 49,000 | 4,073,947 | |
Rohto Pharmaceutical Co. Ltd. | 244,100 | 4,304,908 | |
Sanix, Inc. (a)(d) | 287,200 | 3,390,721 | |
Seven Bank Ltd. | 1,422,000 | 5,382,834 | |
Ship Healthcare Holdings, Inc. | 92,200 | 3,138,416 | |
SoftBank Corp. | 245,900 | 18,255,793 | |
Sony Financial Holdings, Inc. | 171,600 | 2,749,360 | |
Sumitomo Mitsui Financial Group, Inc. | 229,100 | 9,056,394 | |
Toshiba Plant Systems & Services Corp. | 244,000 | 3,587,147 | |
Unicharm Corp. | 120,300 | 6,518,922 | |
VT Holdings Co. Ltd. | 572,200 | 3,279,789 | |
TOTAL JAPAN | 231,551,297 | ||
Korea (South) - 7.6% | |||
Hyundai Home Shopping Network Corp. | 17,873 | 2,681,557 | |
Hyundai Motor Co. | 42,049 | 9,361,412 | |
Hyundai Wia Corp. | 17,153 | 2,822,584 | |
KEPCO Plant Service & Engineering Co. Ltd. | 116,714 | 7,591,893 | |
LG Household & Health Care Ltd. | 7,934 | 3,624,867 | |
Naver Corp. | 9,923 | 7,088,547 | |
Samsung Electronics Co. Ltd. | 15,355 | 19,961,063 | |
TOTAL KOREA (SOUTH) | 53,131,923 | ||
Malaysia - 1.8% | |||
Bursa Malaysia Bhd | 1,037,600 | 2,413,911 | |
JobStreet Corp. Bhd | 9,065,000 | 6,668,506 | |
Tune Insurance Holdings Bhd | 5,540,300 | 3,702,024 | |
TOTAL MALAYSIA | 12,784,441 | ||
New Zealand - 0.8% | |||
Diligent Board Member Services, Inc. (a)(d) | 416,547 | 1,630,716 | |
EBOS Group Ltd. | 512,902 | 4,157,389 | |
TOTAL NEW ZEALAND | 5,788,105 | ||
Singapore - 5.1% | |||
CSE Global Ltd. | 5,798,500 | 2,751,940 | |
Ezion Holdings Ltd. | 2,225,000 | 4,028,675 | |
Global Logistic Properties Ltd. | 2,154,000 | 4,896,626 | |
Goodpack Ltd. | 3,837,800 | 7,346,829 | |
| |||
Shares | Value | ||
OSIM International Ltd. | 2,410,000 | $ 5,574,699 | |
Parkway Life REIT | 2,233,000 | 4,470,631 | |
United Overseas Bank Ltd. | 385,000 | 6,682,300 | |
TOTAL SINGAPORE | 35,751,700 | ||
Taiwan - 5.0% | |||
CTCI Corp. | 1,631,000 | 2,606,096 | |
King Slide Works Co. Ltd. | 402,000 | 5,237,307 | |
Lung Yen Life Service Co. Ltd. | 681,000 | 1,853,445 | |
Merida Industry Co. Ltd. | 675,000 | 4,520,064 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | 4,007,000 | 15,761,899 | |
Tong Hsing Electronics Industries Ltd. | 918,096 | 4,930,518 | |
TOTAL TAIWAN | 34,909,329 | ||
Thailand - 0.5% | |||
Thai Beverage PCL | 7,157,000 | 3,368,134 | |
United Kingdom - 1.2% | |||
Kweichow Moutai Co. Ltd. (A Shares) (UBS Warrant Programme) warrants 7/9/15 (a) | 68,353 | 1,789,593 | |
SAIC Motor Corp. Ltd. Class A (UBS Warrant Programme) warrants 9/16/14 (a) | 744,982 | 1,728,157 | |
Standard Chartered PLC (Hong Kong) | 231,500 | 5,058,217 | |
TOTAL UNITED KINGDOM | 8,575,967 | ||
United States of America - 1.5% | |||
21Vianet Group, Inc. ADR (a)(d) | 81,800 | 1,964,836 | |
GI Dynamics, Inc. CDI (a) | 4,811,289 | 2,324,237 | |
YOU On Demand Holdings, Inc. (a)(d) | 440,068 | 1,307,002 | |
Yum! Brands, Inc. | 63,800 | 4,911,962 | |
TOTAL UNITED STATES OF AMERICA | 10,508,037 | ||
TOTAL COMMON STOCKS (Cost $583,888,515) |
| ||
Money Market Funds - 3.3% | |||
|
|
|
|
Fidelity Cash Central Fund, 0.11% (b) | 9,413,556 | 9,413,556 | |
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) | 13,665,758 | 13,665,758 | |
TOTAL MONEY MARKET FUNDS (Cost $23,079,314) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $606,967,829) | 704,757,451 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (9,097,270) | ||
NET ASSETS - 100% | $ 695,660,181 |
Legend |
(a) Non-income producing |
(b) 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. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
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 | $ 5,466 |
Fidelity Securities Lending Cash Central Fund | 138,190 |
Total | $ 143,656 |
Other Information |
Categorizations in the Schedule of Investments are based on country or territory of incorporation. |
The following is a summary of the inputs used, as of April 30, 2014, 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 in the tables 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: | ||||
Consumer Discretionary | $ 114,848,911 | $ 114,848,911 | $ - | $ - |
Consumer Staples | 71,915,502 | 71,915,502 | - | - |
Energy | 15,600,874 | 15,600,874 | - | - |
Financials | 158,067,026 | 136,880,255 | 21,186,771 | - |
Health Care | 65,176,051 | 59,485,257 | 5,690,794 | - |
Industrials | 92,238,208 | 86,344,296 | - | 5,893,912 |
Information Technology | 87,530,354 | 71,695,902 | 15,761,899 | 72,553 |
Materials | 32,379,451 | 32,379,448 | - | 3 |
Telecommunication Services | 29,314,856 | 29,314,856 | - | - |
Utilities | 14,606,904 | 14,606,904 | - | - |
Money Market Funds | 23,079,314 | 23,079,314 | - | - |
Total Investments in Securities: | $ 704,757,451 | $ 656,151,519 | $ 42,639,464 | $ 5,966,468 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended April 30, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers | Total |
Level 1 to Level 2 | $ 13,269,602 |
Level 2 to Level 1 | $ 218,557,612 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Pacific Basin Fund
Financial Statements
Statement of Assets and Liabilities
| April 30, 2014 (Unaudited) | |
|
|
|
Assets | ||
Investment in securities, at value (including securities loaned of $12,968,142) - See accompanying schedule: Unaffiliated issuers (cost $583,888,515) | $ 681,678,137 |
|
Fidelity Central Funds (cost $23,079,314) | 23,079,314 |
|
Total Investments (cost $606,967,829) |
| $ 704,757,451 |
Foreign currency held at value (cost $82,492) | 82,423 | |
Receivable for investments sold | 5,397,833 | |
Receivable for fund shares sold | 459,851 | |
Dividends receivable | 2,379,186 | |
Distributions receivable from Fidelity Central Funds | 44,048 | |
Prepaid expenses | 564 | |
Other receivables | 35,461 | |
Total assets | 713,156,817 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 2,478,956 | |
Payable for fund shares redeemed | 356,711 | |
Accrued management fee | 519,034 | |
Other affiliated payables | 137,916 | |
Other payables and accrued expenses | 338,261 | |
Collateral on securities loaned, at value | 13,665,758 | |
Total liabilities | 17,496,636 | |
|
|
|
Net Assets | $ 695,660,181 | |
Net Assets consist of: |
| |
Paid in capital | $ 588,199,284 | |
Undistributed net investment income | 1,379,579 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 8,561,569 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 97,519,749 | |
Net Assets, for 25,337,226 shares outstanding | $ 695,660,181 | |
Net Asset Value, offering price and redemption price per share ($695,660,181 ÷ 25,337,226 shares) | $ 27.46 |
Statement of Operations
Six months ended April 30, 2014 (Unaudited) | ||
|
|
|
Investment Income |
|
|
Dividends |
| $ 7,440,388 |
Interest |
| 35 |
Income from Fidelity Central Funds |
| 143,656 |
Income before foreign taxes withheld |
| 7,584,079 |
Less foreign taxes withheld |
| (359,052) |
Total income |
| 7,225,027 |
|
|
|
Expenses | ||
Management fee | $ 2,451,554 | |
Performance adjustment | 696,418 | |
Transfer agent fees | 661,239 | |
Accounting and security lending fees | 171,778 | |
Custodian fees and expenses | 116,638 | |
Independent trustees' compensation | 1,418 | |
Registration fees | 18,966 | |
Audit | 41,096 | |
Legal | 1,739 | |
Miscellaneous | 7,467 | |
Total expenses before reductions | 4,168,313 | |
Expense reductions | (9,426) | 4,158,887 |
Net investment income (loss) | 3,066,140 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | 29,106,335 | |
Foreign currency transactions | 56,189 | |
Total net realized gain (loss) |
| 29,162,524 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $141,715) | (30,483,096) | |
Assets and liabilities in foreign currencies | (18,014) | |
Total change in net unrealized appreciation (depreciation) |
| (30,501,110) |
Net gain (loss) | (1,338,586) | |
Net increase (decrease) in net assets resulting from operations | $ 1,727,554 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 3,066,140 | $ 2,790,864 |
Net realized gain (loss) | 29,162,524 | 116,270,498 |
Change in net unrealized appreciation (depreciation) | (30,501,110) | 53,144,921 |
Net increase (decrease) in net assets resulting from operations | 1,727,554 | 172,206,283 |
Distributions to shareholders from net investment income | (4,153,037) | (6,773,254) |
Distributions to shareholders from net realized gain | (90,299,349) | (10,772,479) |
Total distributions | (94,452,386) | (17,545,733) |
Share transactions | 68,218,602 | 137,800,185 |
Reinvestment of distributions | 90,804,572 | 16,854,631 |
Cost of shares redeemed | (90,396,769) | (170,997,087) |
Net increase (decrease) in net assets resulting from share transactions | 68,626,405 | (16,342,271) |
Redemption fees | 83,539 | 103,129 |
Total increase (decrease) in net assets | (24,014,888) | 138,421,408 |
|
|
|
Net Assets | ||
Beginning of period | 719,675,069 | 581,253,661 |
End of period (including undistributed net investment income of $1,379,579 and undistributed net investment income of $2,466,476, respectively) | $ 695,660,181 | $ 719,675,069 |
Other Information Shares | ||
Sold | 2,430,550 | 4,984,798 |
Issued in reinvestment of distributions | 3,309,282 | 691,047 |
Redeemed | (3,270,019) | (6,195,426) |
Net increase (decrease) | 2,469,813 | (519,581) |
Financial Highlights
| Six months ended | Years ended October 31, | ||||
| (Unaudited) | 2013 | 2012 | 2011 | 2010 | 2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period | $ 31.47 | $ 24.85 | $ 22.96 | $ 25.11 | $ 19.88 | $ 12.84 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D | .12 | .12 | .30 | .21 | .21 | .20 |
Net realized and unrealized gain (loss) | (.02) | 7.26 | 1.79 | (1.51) | 5.86 | 6.90 |
Total from investment operations | .10 | 7.38 | 2.09 | (1.30) | 6.07 | 7.10 |
Distributions from net investment income | (.18) | (.29) | (.12) | (.20) | (.15) | (.07) |
Distributions from net realized gain | (3.93) | (.47) | (.08) | (.66) | (.70) | - |
Total distributions | (4.11) | (.76) | (.20) | (.86) | (.85) | (.07) |
Redemption fees added to paid in capital D | - H | - H | - H | .01 | .01 | .01 |
Net asset value, end of period | $ 27.46 | $ 31.47 | $ 24.85 | $ 22.96 | $ 25.11 | $ 19.88 |
Total Return B, C | .34% | 30.58% | 9.22% | (5.44)% | 31.65% | 55.77% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions | 1.19% A | 1.23% | 1.28% | 1.14% | 1.07% | .90% |
Expenses net of fee waivers, if any | 1.19% A | 1.22% | 1.28% | 1.13% | 1.07% | .90% |
Expenses net of all reductions | 1.19% A | 1.21% | 1.26% | 1.10% | 1.03% | .85% |
Net investment income (loss) | .88% A | .42% | 1.29% | .81% | .95% | 1.30% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 695,660 | $ 719,675 | $ 581,254 | $ 722,453 | $ 836,913 | $ 609,209 |
Portfolio turnover rate F | 30% A | 82% | 26% | 59% | 66% | 91% |
| ||||||
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GExpense ratios reflect operating expenses of the Fund. 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 Fund 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 Fund. HAmount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2014 (Unaudited)
1. Organization.
Fidelity Pacific Basin Fund (the Fund) is a fund of Fidelity Investment Trust (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's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
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 .01%.
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 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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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. 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 is responsible for approving and reporting to the Board all fair value determinations.
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:
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.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 April 30, 2014, including information on transfers between Levels 1 and 2, 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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income 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.
Expenses. 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. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. 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, passive foreign investment companies (PFIC), deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 115,144,345 |
Gross unrealized depreciation | (32,174,976) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 82,969,369 |
|
|
Tax cost | $ 621,788,082 |
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 1.50% 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $103,593,835 and $116,404,054, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the MSCI All Country Pacific Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .90% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .19% of average net assets.
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 $122 for the period.
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 $653 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings 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. 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. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $504,009. 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 $138,190, including $5,936 from securities loaned to FCM.
8. Expense Reductions.
The investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $9,426.
Semiannual Report
9. 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.
Semiannual Report
Distributions (Unaudited)
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains |
Fidelity Europe Capital Appreciation Fund | 03/18/14 | 03/17/14 | $0.215 | $0.000 |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| December 6, 2013 | March 17, 2014 |
Fidelity Europe Fund | 100% |
|
Fidelity Europe Capital Appreciation Fund | 100% | 100% |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
| December 6, 2013 | March 17, 2014 |
Fidelity Europe Fund | 2% |
|
Fidelity Europe Capital Appreciation Fund | 2% | 1% |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
Fund | Pay Date | Income | Taxes |
Fidelity Europe Fund | 12/09/13 | $0.3776 | $0.0432 |
Fidelity Europe Capital Appreciation Fund | 12/09/13 | $0.3111 | $0.0304 |
| 03/18/14 | $0.1338 | $0.0079 |
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
FIL Investment Advisors
FIL Investment Advisors
(UK) Limited
FIL Investments (Japan) Limited
Fidelity China Region Fund, Fidelity Emerging Asia Fund,
Fidelity Emerging Markets Fund, Fidelity Japan Fund, Fidelity Japan Smaller Companies Fund, Fidelity Pacific Basin Fund
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodians
JPMorgan Chase Bank
New York, NY
Fidelity Emerging Markets Fund, Fidelity Japan Fund,
Fidelity Pacific Basin Fund
Brown Brothers Harriman & Co.
Boston, MA
Fidelity China Region Fund, Fidelity Latin America Fund,
Fidelity Nordic Fund
State Street Bank and Trust Company
Quincy, MA
Fidelity Canada Fund, Fidelity Europe Fund
The Northern Trust Company
Chicago, IL
Fidelity Emerging Asia Fund,
Fidelity Japan Smaller Companies Fund
Fidelity's International Equity Funds
Fidelity Canada Fund
Fidelity China Region Fund
Fidelity Diversified International Fund
Fidelity Emerging Asia Fund
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
Fidelity Emerging Markets Discovery Fund
Fidelity Emerging Markets Fund
Fidelity Europe Fund
Fidelity Global Balanced Fund
Fidelity Global Commodity Stock Fund
Fidelity Global Equity Income Fund
Fidelity Global Strategies Fund
Fidelity International Capital Appreciation Fund
Fidelity International Discovery Fund
Fidelity International Growth Fund
Fidelity International Small Cap Fund
Fidelity International Small Cap Opportunities Fund
Fidelity International Value Fund
Fidelity Japan Fund
Fidelity Japan Smaller Companies Fund
Fidelity Latin America Fund
Fidelity Nordic Fund
Fidelity Overseas Fund
Fidelity Pacific Basin Fund
Fidelity Total Emerging Markets Fund
Fidelity Total International Equity Fund
Fidelity Worldwide Fund
Corporate Headquarters
245 Summer St.,
Boston, MA 02210
www.fidelity.com
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
TIF-USAN-0614
1.784917.111
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Investment Trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Investment Trust's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Investment Trust
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | June 25, 2014 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
|
|
Date: | June 25, 2014 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
|
|
Date: | June 25, 2014 |