NPORT-EX 2 QTLY_6286_20230331.htm 010 - Quarterly Front Cover
Quarterly Holdings Report
for
Fidelity® Emerging Markets Debt Local Currency Central Fund
March 31, 2023
MDL-NPRT1-0523
1.9899758.102
Foreign Government and Government Agency Obligations - 81.6%
 
  
Principal
Amount (a)
 
Value ($)
 
Brazil - 10.3%
 
  
  
Brazil Letras Do Tesouro Nacio, yield at date of purchase 5.1772% to 13.7798% 7/1/23 to 1/1/26
BRL
94,350,000
16,017,314
Brazilian Federative Republic:
  
  
  
 10% 1/1/25
BRL
13,250,000
2,536,137
 10% 1/1/27
BRL
30,750,000
5,697,084
 10% 1/1/29
BRL
7,000,000
1,244,512
 10% 1/1/31
BRL
15,000,000
2,589,709
 10% 1/1/33
BRL
1,650,000
277,242
TOTAL BRAZIL
  
  
28,361,998
Chile - 1.3%
 
  
  
Chilean Republic:
  
  
  
 4.7% 9/1/30 (Reg. S) (b)
CLP
1,100,000,000
1,332,867
 5% 3/1/35
CLP
1,530,000,000
1,907,779
 6% 1/1/43
CLP
225,000,000
314,205
TOTAL CHILE
  
  
3,554,851
China - 9.7%
 
  
  
Peoples Republic of China:
  
  
  
 2.68% 5/21/30
CNY
57,000,000
8,195,383
 2.69% 8/12/26
CNY
18,750,000
2,737,160
 2.75% 6/15/29
CNY
23,250,000
3,367,887
 2.88% 11/5/23
CNY
36,250,000
5,296,740
 3.28% 12/3/27
CNY
20,000,000
2,995,506
 3.81% 9/14/50
CNY
25,550,000
4,079,251
TOTAL CHINA
  
  
26,671,927
Colombia - 3.3%
 
  
  
Colombian Republic:
  
  
  
 5.75% 11/3/27
COP
3,350,000,000
580,812
 6% 4/28/28
COP
1,000,000,000
171,916
 7% 6/30/32
COP
14,800,000,000
2,356,829
 7.25% 10/26/50
COP
1,650,000,000
218,314
 7.5% 8/26/26
COP
14,400,000,000
2,786,371
 9.25% 5/28/42
COP
18,125,000,000
3,074,750
TOTAL COLOMBIA
  
  
9,188,992
Czech Republic - 4.4%
 
  
  
Czech Republic:
  
  
  
 0.45% 10/25/23
CZK
40,750,000
1,818,807
 0.95% 5/15/30 (Reg. S)
CZK
57,250,000
2,038,205
 1.2% 3/13/31
CZK
49,250,000
1,749,771
 1.5% 4/24/40
CZK
16,650,000
482,845
 2% 10/13/33
CZK
92,250,000
3,343,822
 2.4% 9/17/25
CZK
63,500,000
2,743,395
TOTAL CZECH REPUBLIC
  
  
12,176,845
Dominican Republic - 0.1%
 
  
  
Dominican Republic 13.625% 2/3/33 (b)
DOP
17,000,000
350,091
Egypt - 0.1%
 
  
  
Arab Republic of Egypt:
  
  
  
 14.556% 10/13/27
EGP
7,000,000
173,611
 16.1% 5/7/29
EGP
2,500,000
62,680
TOTAL EGYPT
  
  
236,291
Hungary - 2.7%
 
  
  
Hungarian Republic:
  
  
  
 2.25% 6/22/34
HUF
520,000,000
849,376
 2.75% 12/22/26
HUF
1,167,000,000
2,587,283
 3% 6/26/24
HUF
475,000,000
1,207,329
 3% 10/27/38
HUF
235,000,000
371,537
 3.25% 10/22/31
HUF
847,500,000
1,666,197
 6.75% 10/22/28
HUF
368,000,000
932,936
TOTAL HUNGARY
  
  
7,614,658
Indonesia - 8.2%
 
  
  
Indonesian Republic:
  
  
  
 6.375% 4/15/32
IDR
68,500,000,000
4,472,407
 6.5% 6/15/25
IDR
15,750,000,000
1,054,371
 6.5% 2/15/31
IDR
22,000,000,000
1,457,521
 7.125% 6/15/42
IDR
3,000,000,000
201,905
 7.125% 6/15/43
IDR
13,100,000,000
882,443
 7.5% 8/15/32
IDR
8,000,000,000
559,579
 7.5% 4/15/40
IDR
31,700,000,000
2,203,625
 8.125% 5/15/24
IDR
34,200,000,000
2,330,901
 8.25% 5/15/29
IDR
35,500,000,000
2,570,421
 8.25% 5/15/36
IDR
250,000,000
18,423
 8.375% 9/15/26
IDR
32,400,000,000
2,290,942
 8.375% 3/15/34
IDR
33,300,000,000
2,465,104
 8.375% 4/15/39
IDR
29,750,000,000
2,229,922
TOTAL INDONESIA
  
  
22,737,564
Kazakhstan - 0.1%
 
  
  
Kazakhstan Republic 10.5% 8/4/26
KZT
90,000,000
182,510
Malaysia - 4.8%
 
  
  
Malaysian Government:
  
  
  
 3.582% 7/15/32
MYR
10,000,000
2,207,773
 3.757% 5/22/40
MYR
5,500,000
1,169,104
 3.828% 7/5/34
MYR
3,650,000
806,011
 3.885% 8/15/29
MYR
9,425,000
2,135,315
 4.065% 6/15/50
MYR
6,250,000
1,325,099
 4.696% 10/15/42
MYR
4,550,000
1,095,671
 4.762% 4/7/37
MYR
16,050,000
3,845,562
 4.893% 6/8/38
MYR
2,750,000
671,966
TOTAL MALAYSIA
  
  
13,256,501
Mexico - 10.1%
 
  
  
United Mexican States:
  
  
  
 5.75% 3/5/26
MXN
132,750,000
6,650,171
 7.75% 11/23/34
MXN
67,250,000
3,440,190
 7.75% 11/13/42
MXN
94,500,000
4,585,702
 8% 9/5/24
MXN
103,250,000
5,525,866
 8% 7/31/53
MXN
13,000,000
640,600
 8.5% 5/31/29
MXN
130,500,000
7,129,214
TOTAL MEXICO
  
  
27,971,743
Peru - 2.1%
 
  
  
Peruvian Republic:
  
  
  
 5.35% 8/12/40
PEN
1,850,000
384,938
 5.4% 8/12/34(Reg. S)
PEN
6,600,000
1,473,015
 6.15% 8/12/32
PEN
2,500,000
607,544
 6.35% 8/12/28
PEN
7,325,000
1,897,223
 6.9% 8/12/37
PEN
3,750,000
933,689
 6.95% 8/12/31
PEN
1,750,000
452,891
TOTAL PERU
  
  
5,749,300
Philippines - 0.1%
 
  
  
Philippine Republic 6.25% 1/14/36
PHP
10,000,000
175,724
Poland - 4.7%
 
  
  
Polish Government:
  
  
  
 1.25% 10/25/30
PLN
22,050,000
3,677,060
 1.75% 4/25/32
PLN
6,000,000
986,257
 2.5% 7/25/26
PLN
19,700,000
4,113,017
 2.5% 7/25/27
PLN
10,250,000
2,077,166
 2.75% 10/25/29
PLN
10,950,000
2,104,663
TOTAL POLAND
  
  
12,958,163
Romania - 4.0%
 
  
  
Romanian Republic:
  
  
  
 3.25% 6/24/26
RON
30,250,000
5,915,273
 3.65% 9/24/31
RON
4,125,000
692,961
 4% 10/25/23
RON
7,250,000
1,567,830
 4.75% 10/11/34
RON
4,250,000
739,241
 5% 2/12/29
RON
10,400,000
2,040,496
 5.8% 7/26/27
RON
500,000
104,123
TOTAL ROMANIA
  
  
11,059,924
South Africa - 9.4%
 
  
  
South African Republic:
  
  
  
 6.5% 2/28/41
ZAR
100,250,000
3,539,099
 7% 2/28/31
ZAR
103,250,000
4,793,962
 8% 1/31/30
ZAR
176,750,000
9,039,473
 8.75% 2/28/48
ZAR
86,750,000
3,737,620
 8.875% 2/28/35
ZAR
99,500,000
4,786,476
TOTAL SOUTH AFRICA
  
  
25,896,630
Thailand - 4.7%
 
  
  
Kingdom of Thailand:
  
  
  
 1.585% 12/17/35
THB
28,000,000
732,869
 1.6% 12/17/29
THB
11,000,000
311,014
 1.6% 6/17/35
THB
112,250,000
2,951,401
 2% 12/17/31
THB
38,750,000
1,106,991
 2% 6/17/42
THB
63,000,000
1,606,200
 2.875% 6/17/46
THB
9,200,000
261,809
 3.3% 6/17/38
THB
112,750,000
3,510,512
 3.775% 6/25/32
THB
79,500,000
2,601,394
TOTAL THAILAND
  
  
13,082,190
Turkey - 0.9%
 
  
  
Turkish Republic:
  
  
  
 8% 3/12/25
TRY
7,250,000
337,939
 10.5% 8/11/27
TRY
13,750,000
699,347
 11% 2/24/27
TRY
13,750,000
678,557
 11.7% 11/13/30
TRY
12,750,000
722,275
TOTAL TURKEY
  
  
2,438,118
Uruguay - 0.6%
 
  
  
Uruguay Republic:
  
  
  
 8.25% 5/21/31
UYU
6,500,000
148,320
 8.5% 3/15/28 (Reg. S)
UYU
60,500,000
1,448,680
TOTAL URUGUAY
  
  
1,597,000
 
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
 (Cost $225,957,902)
  
  
  
225,261,020
 
  
  
  
Supranational Obligations - 0.3%
 
  
Principal
Amount (a)
 
Value ($)
 
Asian Infrastructure Investment Bank 2.375% 2/10/25 (Reg. S)
PHP
19,400,000
332,398
Inter-American Development Bank:
  
  
  
 5.1% 11/17/26
IDR
5,000,000,000
322,335
 5.7% 11/12/24
INR
20,000,000
237,063
 
TOTAL SUPRANATIONAL OBLIGATIONS
 (Cost $1,019,203)
  
  
891,796
 
  
  
  
Money Market Funds - 16.2%
 
  
Shares
Value ($)
 
Fidelity Cash Central Fund 4.86% (c)
 
 (Cost $44,827,407)
 
  
44,818,444
44,827,407
 
  
  
  
 
TOTAL INVESTMENT IN SECURITIES - 98.1%
 (Cost $271,804,512)
 
  
 
270,980,223
NET OTHER ASSETS (LIABILITIES) - 1.9% (d)
5,156,530
NET ASSETS - 100.0%
276,136,753
 
  
 Forward Foreign Currency Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized  
Appreciation/
(Depreciation) ($)
 
  
  
  
  
  
  
BRL
3,790,000
USD
701,592
Bank of America, N.A.
6/15/23
36,166
BRL
4,172,000
USD
785,244
State Street Bank and Trust Co
6/15/23
26,874
BRL
4,333,000
USD
810,588
State Street Bank and Trust Co
6/15/23
32,869
CLP
223,610,000
USD
275,619
BNP Paribas S.A.
6/15/23
3,342
CLP
892,220,000
USD
1,071,736
Bank of America, N.A.
6/15/23
41,340
CLP
410,609,000
USD
513,390
Citibank, N. A.
6/15/23
(1,141)
CNY
35,871,000
USD
5,256,209
Bank of America, N.A.
6/15/23
(1,027)
CNY
4,076,000
USD
597,382
JPMorgan Chase Bank, N.A.
6/15/23
(239)
COP
931,600,000
USD
197,540
Bank of America, N.A.
6/15/23
(453)
COP
7,787,200,000
USD
1,613,593
Citibank, N. A.
6/15/23
33,851
COP
3,088,800,000
USD
643,232
Citibank, N. A.
6/15/23
10,228
CZK
9,185,000
USD
406,437
BNP Paribas S.A.
6/15/23
16,426
CZK
30,407,000
USD
1,350,833
BNP Paribas S.A.
6/15/23
49,057
CZK
30,138,000
USD
1,366,638
BNP Paribas S.A.
6/15/23
20,868
CZK
84,330,000
USD
3,789,468
JPMorgan Chase Bank, N.A.
6/15/23
92,952
EGP
49,334,000
USD
1,470,900
Citibank, N. A.
6/15/23
(25,546)
HUF
651,825,000
USD
1,809,712
JPMorgan Chase Bank, N.A.
6/15/23
8,136
IDR
54,819,300,000
USD
3,556,923
Bank of America, N.A.
6/15/23
91,959
IDR
2,625,300,000
USD
170,087
Bank of America, N.A.
6/15/23
4,658
IDR
5,013,700,000
USD
335,297
Goldman Sachs Bank USA
6/15/23
(1,575)
INR
147,667,000
USD
1,785,574
Bank of America, N.A.
6/15/23
3,853
MXN
3,177,000
USD
165,120
Brown Brothers Harriman & Co
6/15/23
8,676
MXN
2,742,000
USD
146,160
Goldman Sachs Bank USA
6/15/23
3,840
MXN
25,895,000
USD
1,364,475
JPMorgan Chase Bank, N.A.
6/15/23
52,099
MYR
2,955,000
USD
661,074
Goldman Sachs Bank USA
6/15/23
11,946
MYR
26,854,000
USD
6,041,395
Goldman Sachs Bank USA
6/15/23
74,777
MYR
1,951,000
USD
446,402
Goldman Sachs Bank USA
6/15/23
(2,049)
MYR
27,989,000
USD
6,316,633
State Street Bank and Trust Co
6/15/23
58,043
PEN
2,622,000
USD
692,552
Bank of America, N.A.
6/15/23
898
PEN
5,584,000
USD
1,461,245
Citibank, N. A.
6/15/23
15,576
PEN
2,627,000
USD
688,417
State Street Bank and Trust Co
6/15/23
6,355
PHP
37,104,000
USD
684,083
BNP Paribas S.A.
6/15/23
(1,824)
PLN
11,556,000
USD
2,626,265
BNP Paribas S.A.
6/15/23
38,780
PLN
14,552,000
USD
3,282,893
JPMorgan Chase Bank, N.A.
6/15/23
73,090
RON
3,163,000
USD
676,639
BNP Paribas S.A.
6/15/23
14,734
RON
3,110,000
USD
669,589
BNP Paribas S.A.
6/15/23
10,199
THB
426,757,000
USD
12,514,754
JPMorgan Chase Bank, N.A.
6/15/23
103,601
THB
37,855,000
USD
1,116,195
JPMorgan Chase Bank, N.A.
6/15/23
3,102
THB
90,891,000
USD
2,692,558
JPMorgan Chase Bank, N.A.
6/15/23
(5,092)
TRY
71,749,000
USD
3,577,291
Citibank, N. A.
6/15/23
(262,807)
USD
488,039
BRL
2,591,000
BNP Paribas S.A.
6/15/23
(16,322)
USD
1,000,652
BRL
5,371,000
Goldman Sachs Bank USA
6/15/23
(44,862)
USD
1,338,166
CLP
1,115,830,000
Bank of America, N.A.
6/15/23
(53,871)
USD
5,245,449
CNY
35,871,000
State Street Bank and Trust Co
6/15/23
(9,734)
USD
1,414,746
COP
6,888,400,000
BNP Paribas S.A.
6/15/23
(42,550)
USD
682,465
CZK
14,805,000
Goldman Sachs Bank USA
6/15/23
866
USD
1,993,017
CZK
45,646,000
JPMorgan Chase Bank, N.A.
6/15/23
(108,452)
USD
319,575
HUF
120,043,000
Brown Brothers Harriman & Co
6/15/23
(15,208)
USD
676,707
HUF
259,233,000
JPMorgan Chase Bank, N.A.
6/15/23
(46,257)
USD
1,340,924
INR
111,526,000
Citibank, N. A.
6/15/23
(10,547)
USD
206,293
MXN
3,952,000
Brown Brothers Harriman & Co
6/15/23
(9,899)
USD
236,968
MXN
4,562,000
Goldman Sachs Bank USA
6/15/23
(12,594)
USD
502,678
MXN
9,716,000
Goldman Sachs Bank USA
6/15/23
(28,831)
USD
387,824
MXN
7,473,000
JPMorgan Chase Bank, N.A.
6/15/23
(20,982)
USD
1,057,146
MXN
19,736,000
State Street Bank and Trust Co
6/15/23
(22,503)
USD
932,016
PEN
3,537,000
Goldman Sachs Bank USA
6/15/23
(3,427)
USD
309,891
PHP
17,044,000
Bank of America, N.A.
6/15/23
(3,510)
USD
761,300
PLN
3,293,000
Goldman Sachs Bank USA
6/15/23
1,868
USD
672,155
PLN
2,969,000
JPMorgan Chase Bank, N.A.
6/15/23
(12,556)
USD
228,425
RON
1,048,000
Brown Brothers Harriman & Co
6/15/23
(648)
USD
1,128,753
RON
5,225,000
Goldman Sachs Bank USA
6/15/23
(13,335)
USD
1,390,603
RON
6,310,000
JPMorgan Chase Bank, N.A.
6/15/23
11,355
USD
831,695
THB
28,482,000
JPMorgan Chase Bank, N.A.
6/15/23
(10,461)
USD
660,197
THB
22,547,000
JPMorgan Chase Bank, N.A.
6/15/23
(6,473)
USD
718,511
TRY
15,647,000
Bank of America, N.A.
6/15/23
(4,310)
USD
742,227
TRY
15,969,000
Goldman Sachs Bank USA
6/15/23
4,530
USD
1,920,199
TRY
39,587,000
JPMorgan Chase Bank, N.A.
6/15/23
91,457
USD
2,492,299
ZAR
46,231,000
Brown Brothers Harriman & Co
6/15/23
(87,559)
USD
697,006
ZAR
12,753,000
Goldman Sachs Bank USA
6/15/23
(14,658)
ZAR
22,337,000
USD
1,229,436
Bank of America, N.A.
6/15/23
17,051
ZAR
58,984,000
USD
3,215,444
JPMorgan Chase Bank, N.A.
6/15/23
76,078
 
  
  
  
  
  
  
TOTAL FORWARD FOREIGN CURRENCY CONTRACTS
  
250,198
 
  
  
  
  
  
  
Unrealized Appreciation
  
  
1,151,500
Unrealized Depreciation
  
  
(901,302)
Currency Abbreviations
         BRL
-
Brazilian real
         CLP
-
Chilean peso
         CNY
-
Chinese yuan
         COP
-
Colombian peso
         CZK
-
Czech koruna
         DOP
-
Dominican Republic peso
         EGP
-
Egyptian pound
         HUF
-
Hungarian forint
         IDR
-
Indonesian rupiah
         INR
-
Indian rupee
         KZT
-
Kazakhstan tenge
         MXN
-
Mexican peso
         MYR
-
Malyasian ringgit
         PEN
-
Peruvian new sol
         PHP
-
Philippine peso
         PLN
-
Polish zloty
         RON
-
Romanian leu (new)
         THB
-
Thai baht
         TRY
-
Turkish Lira
         USD
-
U.S. dollar
         UYU
-
Uruguay peso
         ZAR
-
South African rand
 
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
 
Legend
 
(a)
Amount is stated in United States dollars unless otherwise noted.
 
(b)
Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,682,958 or 0.6% of net assets.
 
(c)
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.
 
(d)
Includes $360,000 of cash collateral segregated for open forward foreign currency contracts.
 
 
 
 
 
Affiliated Central Funds
 
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
 
 
Affiliate
Value,
beginning
of period ($)
Purchases ($)
Sales
Proceeds ($)
Dividend
Income ($)
Realized
Gain (loss) ($)
Change in
Unrealized
appreciation
(depreciation) ($)
Value,
end
of period ($)
% ownership,
end
of period
Fidelity Cash Central Fund 4.86%
13,349,011
191,346,261
159,867,865
386,944
-
-
44,827,407
0.1%
Total
13,349,011
191,346,261
159,867,865
386,944
-
-
44,827,407
  
 
  
  
  
  
  
  
  
  
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds.
 
Investment Valuation
Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Securities transactions are accounted for as of trade date. The Board of Directors (the Board) has designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.  
 
The inputs to valuation techniques used to value investments are categorized into a disclosure hierarchy consisting of three levels as shown below:
 
Level 1 - Unadjusted 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 investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing services or from brokers who make markets in such securities. Foreign Government and Government Agency Obligations and Supranational Obligations are valued by pricing services 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 services. For foreign debt securities, when significant market or security specific events arise, valuations may be determined in good faith in accordance with procedures adopted by the Board. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
 
The U.S. dollar value of forward foreign currency contracts is determined using currency exchange rates supplied by a pricing service and are categorized as Level 2 in the hierarchy.
 
Investments in any open-end mutual 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.
 
Derivative Instruments
Risk Exposures and the Use of Derivative Instruments: The Fund's investment objectives allow the Fund to enter into various types of derivative 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, to gain exposure to certain types of assets and/or 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.  
 
The Fund's use of derivatives increased or decreased its exposure to the following risk(s):
 
Foreign Exchange Risk - Foreign exchange rate risk relates to fluctuations in the value of an asset or liability due to changes in currency exchange rates.
 
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. 
 
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain OTC derivatives, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net the amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on bi-lateral OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. The Fund may be required to pledge collateral for the benefit of the counterparties on bi-lateral OTC derivatives in an amount not less than each counterparty's unrealized appreciation on outstanding derivative contracts, subject to certain minimum transfer provisions, and any such pledged collateral is identified in the Schedule of Investments. Exchange-traded contracts are not covered by the ISDA Master Agreement; however counterparty credit risk related to these contracts may be mitigated by the protection provided by the exchange on which they trade. Counterparty credit risk related to centrally cleared OTC swaps may be mitigated by the protection provided by the clearinghouse.
 
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. 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.  
 
Forward Foreign Currency Contracts: Forward foreign currency contracts represent obligations to purchase or sell foreign currency on a specified future date at a price fixed at the time the contracts are entered into.  
 
The Fund used forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to manage exposure to certain foreign currencies.
 
Open forward foreign currency contracts at period end are presented in the Schedule of Investments under the caption "Forward Foreign Currency Contracts." The contract amount and unrealized appreciation (depreciation) reflects each contract's exposure to the underlying currency at period end.
 
 
Credit Risk
The Fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income they generate, as well as the Fund's ability to repatriate such amounts.
 
For additional information on the Fund's significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.
The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.
 
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