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)
Marc Bryant, 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: | October 31, 2016 |
This report on Form N-CSR relates solely to the Registrant’s Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund, Fidelity Emerging Markets Discovery Fund, Fidelity Global Commodity Stock Fund, Fidelity Global Equity Income 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 Series Emerging Markets Fund, Fidelity Series International Growth Fund, Fidelity Series International Small Cap Fund, Fidelity Series International Value Fund, Fidelity Total Emerging Markets Fund, and Fidelity Total International Equity Fund (each, a “Fund” and collectively, the “Funds”).
Item 1.
Reports to Stockholders
|
Fidelity Advisor® Emerging Markets Discovery Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® Emerging Markets Discovery Fund |
 |
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Life of fundA |
| Class A (incl. 5.75% sales charge) | 6.44% | 4.09% |
| Class T (incl. 3.50% sales charge) | 8.64% | 4.31% |
| Class C (incl. contingent deferred sales charge) | 10.97% | 4.53% |
| Class I | 13.16% | 5.60% |
A From November 1, 2011
Class C shares' contingent deferred sales charges included in the past one year and life of fund total return figures are 1% and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Emerging Markets Discovery Fund - Class A on November 1, 2011, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI Emerging Markets SMID Cap Index performed over the same period.
| Period Ending Values | ||
|
| $12,221 | Fidelity Advisor® Emerging Markets Discovery Fund - Class A |
|
| $11,100 | MSCI Emerging Markets SMID Cap Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.'s June vote to exit the European Union – dubbed "Brexit" – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-caps stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from "risk off" to "risk on." Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Co-Portfolio Manager Sam Polyak: For the year, the fund's share classes (excluding sales charges, if applicable) posted gains roughly in the range of 12% to 13%, well outpacing the 5.61% return of the benchmark MSCI Emerging Markets SMID Cap Index. Stock picking – especially within financials – overwhelmingly drove the fund’s outperformance. Picks within industrials, consumer discretionary, materials and information technology also significantly lifted results. Our India-based financial holdings were particularly helpful, including Manappuram Finance – the fund’s largest individual contributor – and Edelweiss Financial Services. Shares of Manappuram and Edelweiss rose 244% and 108%, respectively. Indian stocks were supported by several factors, including increasing global liquidity and the expectation that the new governor of Reserve Bank of India would be willing to lower policy rates. Conversely, a non-index stake in Russia-based Global Ports Investments, a container and oil products terminal operator, was the fund’s most notable individual detractor. Negative operating leverage hurt the company’s results, as container volumes in Russia remained low and the regulator’s review of the industry’s pricing policy increased uncertainty regarding future results. The stock was sold from the fund by period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Smiles SA (Brazil, Media) | 1.3 | 1.0 |
| Manappuram General Finance & Leasing Ltd. (India, Consumer Finance) | 1.3 | 0.7 |
| Qingdao Haier Co. Ltd. (China, Household Durables) | 1.2 | 1.1 |
| Geely Automobile Holdings Ltd. (Cayman Islands, Automobiles) | 1.2 | 0.0 |
| Aksa Akrilik Kimya Sanayii (Turkey, Textiles, Apparel & Luxury Goods) | 1.2 | 0.4 |
| 6.2 |
Top Five Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Consumer Discretionary | 16.3 | 15.5 |
| Information Technology | 16.3 | 17.5 |
| Financials | 12.5 | 18.0 |
| Industrials | 11.5 | 14.2 |
| Materials | 9.1 | 9.9 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Top Five Countries as of October 31, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| India | 12.4 | 13.2 |
| Cayman Islands | 10.5 | 10.1 |
| Korea (South) | 9.1 | 12.0 |
| Taiwan | 9.1 | 9.8 |
| Brazil | 7.5 | 7.4 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of October 31, 2016 | ||
| Stocks and Equity Futures | 95.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.1% | |
| As of April 30, 2016 | ||
| Stocks | 97.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.5% | |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 87.3% | |||
| Shares | Value | ||
| Argentina - 0.7% | |||
| Grupo Superveille SA sponsored ADR (a) | 23,400 | $355,212 | |
| Inversiones y Representaciones SA ADR (a)(b) | 15,210 | 285,035 | |
| TOTAL ARGENTINA | 640,247 | ||
| Bailiwick of Jersey - 0.4% | |||
| Atrium European Real Estate Ltd. | 72,140 | 308,768 | |
| Bangladesh - 0.4% | |||
| BRAC Bank Ltd. | 449,466 | 342,925 | |
| Bermuda - 1.8% | |||
| Digital China Holdings Ltd. (H Shares) | 173,000 | 144,993 | |
| PAX Global Technology Ltd. | 420,000 | 262,651 | |
| Shangri-La Asia Ltd. | 830,000 | 912,882 | |
| VimpelCom Ltd. sponsored ADR | 61,200 | 204,408 | |
| TOTAL BERMUDA | 1,524,934 | ||
| Brazil - 4.8% | |||
| BR Malls Participacoes SA | 109,900 | 440,013 | |
| BTG Pactual Participations Ltd. unit | 41,200 | 209,872 | |
| Direcional Engenharia SA | 219,000 | 378,722 | |
| Fibria Celulose SA | 38,400 | 307,248 | |
| FPC Par Corretora de Seguros | 54,600 | 258,118 | |
| Minerva SA (b) | 122,600 | 388,310 | |
| QGEP Participacoes SA | 399,200 | 690,346 | |
| Smiles SA | 62,500 | 1,140,739 | |
| Tegma Gestao Logistica SA (b) | 138,800 | 349,609 | |
| TOTAL BRAZIL | 4,162,977 | ||
| British Virgin Islands - 1.3% | |||
| Arcos Dorados Holdings, Inc. Class A (b) | 161,000 | 990,150 | |
| Dolphin Capital Investors Ltd. (b) | 2,042,257 | 140,609 | |
| TOTAL BRITISH VIRGIN ISLANDS | 1,130,759 | ||
| Canada - 1.2% | |||
| Pan American Silver Corp. | 29,000 | 464,870 | |
| Torex Gold Resources, Inc. (b) | 30,670 | 570,504 | |
| TOTAL CANADA | 1,035,374 | ||
| Cayman Islands - 10.5% | |||
| 51job, Inc. sponsored ADR (b) | 12,700 | 431,800 | |
| 58.com, Inc. ADR (b) | 22,600 | 945,810 | |
| Casetek Holdings | 54,000 | 173,843 | |
| China State Construction International Holdings Ltd. | 406,000 | 593,645 | |
| GCL-Poly Energy Holdings Ltd. | 1,170,000 | 158,403 | |
| Geely Automobile Holdings Ltd. | 1,000,000 | 1,031,519 | |
| Goodbaby International Holdings Ltd. | 709,000 | 342,819 | |
| Haitian International Holdings Ltd. | 328,000 | 676,677 | |
| Ju Teng International Holdings Ltd. | 468,000 | 148,446 | |
| Kingboard Laminates Holdings Ltd. | 645,500 | 579,286 | |
| Kingsoft Corp. Ltd. | 85,000 | 191,141 | |
| Lee's Pharmaceutical Holdings Ltd. | 427,500 | 370,970 | |
| Pico Far East Holdings Ltd. | 2,320,000 | 705,972 | |
| Semiconductor Manufacturing International Corp. (b) | 2,337,000 | 283,029 | |
| SITC International Holdings Co. Ltd. | 1,014,000 | 600,120 | |
| Sunny Optical Technology Group Co. Ltd. | 122,000 | 596,192 | |
| TPK Holding Co. Ltd. | 34,000 | 54,459 | |
| Uni-President China Holdings Ltd. | 841,000 | 569,302 | |
| Vinda International Holdings Ltd. | 197,000 | 390,162 | |
| Yirendai Ltd. sponsored ADR (a) | 7,200 | 208,800 | |
| TOTAL CAYMAN ISLANDS | 9,052,395 | ||
| Chile - 3.3% | |||
| Compania Cervecerias Unidas SA sponsored ADR (a) | 22,000 | 473,000 | |
| CorpBanca SA | 45,526,053 | 412,245 | |
| Empresas CMPC SA | 154,503 | 334,660 | |
| Enersis SA | 1,950,297 | 329,916 | |
| Inversiones La Construccion SA | 24,359 | 298,139 | |
| Quinenco SA | 93,980 | 230,195 | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | 16,600 | 485,716 | |
| Vina Concha y Toro SA | 155,746 | 271,570 | |
| TOTAL CHILE | 2,835,441 | ||
| China - 5.3% | |||
| BBMG Corp. (H Shares) | 1,710,000 | 626,184 | |
| China Longyuan Power Grid Corp. Ltd. (H Shares) | 331,200 | 253,240 | |
| Huangshan Tourism Development Co. Ltd. | 535,800 | 733,510 | |
| Qingdao Haier Co. Ltd. | 711,586 | 1,048,087 | |
| Tong Ren Tang Technologies Co. Ltd. (H Shares) | 523,000 | 954,888 | |
| Tsingtao Brewery Co. Ltd. (H Shares) | 106,000 | 423,697 | |
| Zhengzhou Yutong Bus Co. Ltd. | 152,019 | 483,487 | |
| TOTAL CHINA | 4,523,093 | ||
| Colombia - 0.4% | |||
| Organizacion Terpel SA | 105,202 | 339,036 | |
| Greece - 0.5% | |||
| Titan Cement Co. SA (Reg.) | 19,800 | 460,139 | |
| Hong Kong - 2.7% | |||
| BYD Electronic International Co. Ltd. | 164,500 | 129,809 | |
| China Resources Beer Holdings Co. Ltd. | 380,000 | 808,453 | |
| Far East Horizon Ltd. | 497,584 | 454,242 | |
| Techtronic Industries Co. Ltd. | 237,000 | 892,316 | |
| TOTAL HONG KONG | 2,284,820 | ||
| India - 12.4% | |||
| Adani Ports & Special Economic Zone | 139,766 | 643,248 | |
| Alembic Pharmaceuticals Ltd. (b) | 90,632 | 917,591 | |
| Arvind Mills Ltd. | 101,414 | 629,567 | |
| Dalmia Bharat Ltd. | 498 | 15,359 | |
| Deccan Cements Ltd. | 6,177 | 106,977 | |
| Dr Lal Pathlabs Ltd. | 25,382 | 448,258 | |
| Edelweiss Financial Services Ltd. (b) | 180,194 | 329,563 | |
| Exide Industries Ltd. (b) | 216,567 | 635,525 | |
| Grasim Industries Ltd. | 18,607 | 269,856 | |
| IDFC Ltd. (b) | 317,213 | 332,404 | |
| Iifl Holdings Ltd. (b) | 76,732 | 384,204 | |
| Indraprastha Gas Ltd. (b) | 28,782 | 371,072 | |
| JK Cement Ltd. | 36,698 | 520,084 | |
| LIC Housing Finance Ltd. | 47,601 | 415,850 | |
| Mahindra Lifespace Developers Ltd. | 42,765 | 272,981 | |
| Manappuram General Finance & Leasing Ltd. | 732,000 | 1,120,955 | |
| Marksans Pharma Ltd. | 540,112 | 421,042 | |
| Mphasis BFL Ltd. | 55,028 | 422,864 | |
| Power Grid Corp. of India Ltd. | 252,209 | 665,067 | |
| Redington India Ltd. | 97,326 | 153,272 | |
| Solar Industries India Ltd. | 31,501 | 313,072 | |
| The Jammu & Kashmir Bank Ltd. (b) | 200,767 | 202,707 | |
| Torrent Pharmaceuticals Ltd. | 35,159 | 745,948 | |
| VST Industries Ltd. (b) | 8,704 | 309,593 | |
| TOTAL INDIA | 10,647,059 | ||
| Indonesia - 1.8% | |||
| PT Bank Danamon Indonesia Tbk Series A | 820,800 | 242,818 | |
| PT Indo Tambangraya Megah Tbk | 465,000 | 510,509 | |
| PT Link Net Tbk | 133,200 | 51,042 | |
| PT Panin Life Tbk (b) | 25,494,900 | 373,201 | |
| PT Tiga Pilar Sejahtera Food Tbk (b) | 2,203,800 | 351,311 | |
| TOTAL INDONESIA | 1,528,881 | ||
| Israel - 0.4% | |||
| Bezeq The Israel Telecommunication Corp. Ltd. | 189,760 | 344,766 | |
| Kazakhstan - 0.2% | |||
| JSC Halyk Bank of Kazakhstan GDR unit (b) | 30,000 | 199,500 | |
| Kenya - 0.2% | |||
| Kcb Group Ltd. | 632,600 | 169,585 | |
| Korea (South) - 8.7% | |||
| AMOREPACIFIC Group, Inc. | 2,260 | 292,440 | |
| BS Financial Group, Inc. | 47,771 | 388,014 | |
| Com2uS Corp. (b) | 2,533 | 210,390 | |
| Daou Technology, Inc. | 20,645 | 373,639 | |
| Devsisters Co. Ltd. (b) | 7,741 | 175,970 | |
| Fila Korea Ltd. | 9,470 | 721,994 | |
| Hanon Systems | 43,798 | 409,737 | |
| Hyundai Fire & Marine Insurance Co. Ltd. | 11,453 | 353,978 | |
| Hyundai Glovis Co. Ltd. | 2,851 | 432,478 | |
| Hyundai HCN | 176,633 | 571,400 | |
| Hyundai Industrial Development & Construction Co. | 9,086 | 385,284 | |
| Hyundai Wia Corp. | 5,716 | 393,309 | |
| Koh Young Technology, Inc. | 6,561 | 256,989 | |
| Korea Express Co. Ltd. (b) | 2,554 | 448,832 | |
| Korean Reinsurance Co. | 28,384 | 292,835 | |
| Medy-Tox, Inc. | 2,136 | 759,712 | |
| NCSOFT Corp. | 2,187 | 505,756 | |
| Nice Information & Telecom, Inc. | 9,861 | 315,551 | |
| Silicon Works Co. Ltd. | 8,200 | 191,781 | |
| TOTAL KOREA (SOUTH) | 7,480,089 | ||
| Malaysia - 1.1% | |||
| Inari Amertron Bhd | 299,200 | 238,932 | |
| Top Glove Corp. Bhd | 621,900 | 733,827 | |
| TOTAL MALAYSIA | 972,759 | ||
| Mexico - 4.2% | |||
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 65,000 | 628,266 | |
| Grupo Comercial Chedraui S.A.B. de CV | 197,500 | 440,538 | |
| Grupo GICSA SA de CV (b) | 541,532 | 366,159 | |
| Industrias Penoles SA de CV | 29,810 | 722,957 | |
| Macquarie Mexican (REIT) | 390,272 | 491,634 | |
| Qualitas Controladora S.A.B. de CV | 254,500 | 466,963 | |
| Terrafina | 279,600 | 463,313 | |
| TOTAL MEXICO | 3,579,830 | ||
| Netherlands - 0.9% | |||
| Yandex NV Series A (b) | 39,300 | 773,817 | |
| Pakistan - 0.4% | |||
| Habib Bank Ltd. | 147,700 | 315,244 | |
| Panama - 0.8% | |||
| Copa Holdings SA Class A | 7,800 | 719,394 | |
| Philippines - 0.5% | |||
| Alliance Global Group, Inc. | 1,324,800 | 390,086 | |
| Poland - 0.6% | |||
| Asseco Poland SA | 22,600 | 301,564 | |
| Prime Car Management SA | 19,300 | 186,199 | |
| TOTAL POLAND | 487,763 | ||
| Romania - 0.3% | |||
| Banca Transilvania SA | 399,713 | 225,439 | |
| Russia - 1.6% | |||
| Inter Rao Ues JSC (b) | 13,451,004 | 721,333 | |
| RusHydro PJSC (b) | 38,141,300 | 478,201 | |
| Sistema JSFC sponsored GDR | 25,260 | 188,692 | |
| TOTAL RUSSIA | 1,388,226 | ||
| Singapore - 0.5% | |||
| First Resources Ltd. | 352,400 | 461,001 | |
| South Africa - 3.4% | |||
| Alexander Forbes Group Holdings Ltd. | 424,062 | 192,473 | |
| Bidvest Group Ltd. | 55,600 | 690,312 | |
| Imperial Holdings Ltd. | 53,800 | 679,575 | |
| Northam Platinum Ltd. (b) | 138,100 | 504,212 | |
| Pick 'n Pay Stores Ltd. | 76,200 | 372,926 | |
| Reunert Ltd. | 102,400 | 468,570 | |
| TOTAL SOUTH AFRICA | 2,908,068 | ||
| Sri Lanka - 0.8% | |||
| Dialog Axiata PLC | 2,331,964 | 181,322 | |
| Hatton National Bank PLC | 315,296 | 482,004 | |
| TOTAL SRI LANKA | 663,326 | ||
| Taiwan - 9.1% | |||
| ADLINK Technology, Inc. | 107,087 | 207,867 | |
| Advantech Co. Ltd. | 109,000 | 888,498 | |
| Chipbond Technology Corp. | 133,000 | 184,133 | |
| Cleanaway Co. Ltd. | 80,000 | 426,281 | |
| CTCI Corp. | 304,000 | 446,910 | |
| Cub Elecparts, Inc. | 51,568 | 474,324 | |
| Elite Semiconductor Memory Technology, Inc. | 154,000 | 164,362 | |
| eMemory Technology, Inc. | 25,000 | 265,633 | |
| Everlight Electronics Co. Ltd. | 171,000 | 258,438 | |
| FLEXium Interconnect, Inc. | 92,356 | 263,343 | |
| Forhouse Corp. | 520,000 | 201,215 | |
| Hermes Microvision, Inc. | 4,000 | 176,983 | |
| Inventec Corp. | 467,000 | 365,856 | |
| Lite-On Technology Corp. | 358,220 | 514,689 | |
| Powertech Technology, Inc. | 196,000 | 560,115 | |
| Radiant Opto-Electronics Corp. | 95,000 | 160,601 | |
| Sirtec International Co. Ltd. | 189,000 | 237,385 | |
| St.Shine Optical Co. Ltd. | 31,000 | 651,886 | |
| Synnex Technology International Corp. | 309,100 | 330,389 | |
| Tong Hsing Electronics Industries Ltd. | 115,000 | 397,577 | |
| Universal Cement Corp. | 313,568 | 244,163 | |
| Vanguard International Semiconductor Corp. | 211,000 | 430,988 | |
| TOTAL TAIWAN | 7,851,636 | ||
| Thailand - 1.7% | |||
| Delta Electronics PCL (For. Reg.) | 124,400 | 278,713 | |
| PTT Global Chemical PCL (For. Reg.) | 270,800 | 463,732 | |
| Star Petroleum Refining PCL | 1,448,200 | 520,794 | |
| Thai Union Frozen Products PCL (For. Reg.) | 253,000 | 156,692 | |
| TOTAL THAILAND | 1,419,931 | ||
| Turkey - 2.9% | |||
| Aksa Akrilik Kimya Sanayii | 359,000 | 1,009,388 | |
| Aselsan A/S | 156,000 | 473,911 | |
| Bim Birlesik Magazalar A/S JSC | 32,000 | 521,225 | |
| Tupras Turkiye Petrol Rafinelleri A/S | 22,576 | 460,020 | |
| TOTAL TURKEY | 2,464,544 | ||
| United Arab Emirates - 0.2% | |||
| National Bank of Ras Al-Khaimah PSC (b) | 152,077 | 207,023 | |
| United Kingdom - 0.9% | |||
| BGEO Group PLC | 9,440 | 341,553 | |
| International Personal Finance PLC | 54,800 | 197,536 | |
| TBC Bank Group PLC (b) | 13,975 | 220,489 | |
| TOTAL UNITED KINGDOM | 759,578 | ||
| Vietnam - 0.4% | |||
| FTP Corp. | 163,990 | 319,561 | |
| TOTAL COMMON STOCKS | |||
| (Cost $71,874,234) | 74,918,014 | ||
| Nonconvertible Preferred Stocks - 3.1% | |||
| Brazil - 2.7% | |||
| Banco ABC Brasil SA | 105,300 | 507,367 | |
| Banco do Estado Rio Grande do Sul SA | 116,000 | 494,236 | |
| Companhia Paranaense de Energia-Copel (PN-B) sponsored ADR (a) | 35,000 | 399,350 | |
| Metalurgica Gerdau SA (PN) (b) | 615,600 | 916,071 | |
| TOTAL BRAZIL | 2,317,024 | ||
| Korea (South) - 0.4% | |||
| LG Chemical Ltd. | 2,443 | 384,470 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $1,666,143) | 2,701,494 | ||
| Principal Amount | Value | ||
| Government Obligations - 0.4% | |||
| United States of America - 0.4% | |||
| U.S. Treasury Bills, yield at date of purchase 0.2% to 0.35% 11/3/16 to 12/29/16 (Cost $339,889)(c) | 340,000 | 339,900 | |
| Shares | Value | ||
| Money Market Funds - 11.2% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 8,182,921 | 8,185,375 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 1,397,943 | 1,398,223 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $9,581,645) | 9,583,598 | ||
| TOTAL INVESTMENT PORTFOLIO - 102.0% | |||
| (Cost $83,461,911) | 87,543,006 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.0)% | (1,704,519) | ||
| NET ASSETS - 100% | $85,838,487 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||
| Equity Index Contracts | |||
| 105 ICE E-mini MSCI Emerging Markets Index Contracts (United States) | Dec. 2016 | 4,743,375 | $(33,134) |
The face value of futures purchased as a percentage of Net Assets is 5.5%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) 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 $223,911.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
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 | $12,720 |
| Fidelity Securities Lending Cash Central Fund | 25,848 |
| Total | $38,568 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $14,040,571 | $14,040,571 | $-- | $-- |
| Consumer Staples | 6,230,220 | 6,230,220 | -- | -- |
| Energy | 2,181,669 | 2,181,669 | -- | -- |
| Financials | 10,786,694 | 10,786,694 | -- | -- |
| Health Care | 6,004,122 | 6,004,122 | -- | -- |
| Industrials | 9,705,304 | 9,705,304 | -- | -- |
| Information Technology | 14,003,733 | 13,720,704 | 283,029 | -- |
| Materials | 7,710,274 | 7,440,418 | 269,856 | -- |
| Real Estate | 2,768,512 | 2,768,512 | -- | -- |
| Telecommunication Services | 970,230 | 970,230 | -- | -- |
| Utilities | 3,218,179 | 3,218,179 | -- | -- |
| Government Obligations | 339,900 | -- | 339,900 | -- |
| Money Market Funds | 9,583,598 | 9,583,598 | -- | -- |
| Total Investments in Securities: | $87,543,006 | $86,650,221 | $892,785 | $-- |
| Derivative Instruments: | ||||
| Liabilities | ||||
| Futures Contracts | $(33,134) | $(33,134) | $-- | $-- |
| Total Liabilities | $(33,134) | $(33,134) | $-- | $-- |
| Total Derivative Instruments: | $(33,134) | $(33,134) | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $21,740,633 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $0 | $(33,134) |
| Total Equity Risk | 0 | (33,134) |
| Total Value of Derivatives | $0 | $(33,134) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $1,368,051) — See accompanying schedule: Unaffiliated issuers (cost $73,880,266) | $77,959,408 | |
| Fidelity Central Funds (cost $9,581,645) | 9,583,598 | |
| Total Investments (cost $83,461,911) | $87,543,006 | |
| Cash | 55,299 | |
| Foreign currency held at value (cost $41,848) | 41,932 | |
| Receivable for investments sold | 220,803 | |
| Receivable for fund shares sold | 337,552 | |
| Dividends receivable | 28,953 | |
| Distributions receivable from Fidelity Central Funds | 7,288 | |
| Receivable for daily variation margin for derivative instruments | 24,150 | |
| Prepaid expenses | 181 | |
| Receivable from investment adviser for expense reductions | 34,402 | |
| Other receivables | 15,534 | |
| Total assets | 88,309,100 | |
| Liabilities | ||
| Payable for investments purchased | $564,253 | |
| Payable for fund shares redeemed | 111,665 | |
| Accrued management fee | 59,936 | |
| Distribution and service plan fees payable | 4,044 | |
| Other affiliated payables | 18,330 | |
| Other payables and accrued expenses | 314,260 | |
| Collateral on securities loaned, at value | 1,398,125 | |
| Total liabilities | 2,470,613 | |
| Net Assets | $85,838,487 | |
| Net Assets consist of: | ||
| Paid in capital | $86,526,282 | |
| Undistributed net investment income | 593,159 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,088,810) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 3,807,856 | |
| Net Assets | $85,838,487 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($5,251,834 ÷ 428,195 shares) | $12.27 | |
| Maximum offering price per share (100/94.25 of $12.27) | $13.02 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($2,868,455 ÷ 235,091 shares) | $12.20 | |
| Maximum offering price per share (100/96.50 of $12.20) | $12.64 | |
| Class C: | ||
| Net Asset Value and offering price per share ($2,202,501 ÷ 183,937 shares)(a) | $11.97 | |
| Emerging Markets Discovery: | ||
| Net Asset Value, offering price and redemption price per share ($67,178,214 ÷ 5,447,197 shares) | $12.33 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($8,337,483 ÷ 674,203 shares) | $12.37 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $1,880,586 | |
| Interest | 260 | |
| Income from Fidelity Central Funds | 38,568 | |
| Income before foreign taxes withheld | 1,919,414 | |
| Less foreign taxes withheld | (173,886) | |
| Total income | 1,745,528 | |
| Expenses | ||
| Management fee | $580,454 | |
| Transfer agent fees | 163,478 | |
| Distribution and service plan fees | 39,541 | |
| Accounting and security lending fees | 35,692 | |
| Custodian fees and expenses | 129,239 | |
| Independent trustees' fees and expenses | 290 | |
| Registration fees | 72,169 | |
| Audit | 91,119 | |
| Legal | 208 | |
| Miscellaneous | 649 | |
| Total expenses before reductions | 1,112,839 | |
| Expense reductions | (83,207) | 1,029,632 |
| Net investment income (loss) | 715,896 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (3,179,871) | |
| Fidelity Central Funds | (204) | |
| Foreign currency transactions | 20,449 | |
| Futures contracts | 317,752 | |
| Total net realized gain (loss) | (2,841,874) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $222,685) | 10,724,727 | |
| Assets and liabilities in foreign currencies | 1,967 | |
| Futures contracts | (33,134) | |
| Total change in net unrealized appreciation (depreciation) | 10,693,560 | |
| Net gain (loss) | 7,851,686 | |
| Net increase (decrease) in net assets resulting from operations | $8,567,582 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $715,896 | $749,160 |
| Net realized gain (loss) | (2,841,874) | (1,932,100) |
| Change in net unrealized appreciation (depreciation) | 10,693,560 | (8,002,533) |
| Net increase (decrease) in net assets resulting from operations | 8,567,582 | (9,185,473) |
| Distributions to shareholders from net investment income | (490,717) | – |
| Share transactions - net increase (decrease) | 6,360,074 | (6,487,831) |
| Redemption fees | 41,424 | 32,392 |
| Total increase (decrease) in net assets | 14,478,363 | (15,640,912) |
| Net Assets | ||
| Beginning of period | 71,360,124 | 87,001,036 |
| End of period | $85,838,487 | $71,360,124 |
| Other Information | ||
| Undistributed net investment income end of period | $593,159 | $413,597 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.92 | $12.17 | $12.49 | $11.89 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .09 | .09C | .04 | .08 | .12 |
| Net realized and unrealized gain (loss) | 1.30 | (1.34) | (.01) | .75 | 1.76 |
| Total from investment operations | 1.39 | (1.25) | .03 | .83 | 1.88 |
| Distributions from net investment income | (.05) | – | (.06) | (.04) | (.01) |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.05) | – | (.36) | (.25)D | (.01) |
| Redemption fees added to paid in capitalB | .01 | –E | .01 | .02 | .02 |
| Net asset value, end of period | $12.27 | $10.92 | $12.17 | $12.49 | $11.89 |
| Total ReturnF,G | 12.93% | (10.27)% | .31% | 7.20% | 19.00% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.89% | 1.88% | 1.82% | 1.87% | 3.49% |
| Expenses net of fee waivers, if any | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.70% | 1.69% | 1.70% | 1.64% | 1.64% |
| Net investment income (loss) | .85% | .76%C | .29% | .62% | 1.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,252 | $4,660 | $4,362 | $5,065 | $1,671 |
| Portfolio turnover rateJ | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
D 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.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.86 | $12.13 | $12.44 | $11.87 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .07 | .06C | –D | .05 | .10 |
| Net realized and unrealized gain (loss) | 1.28 | (1.33) | –D | .74 | 1.75 |
| Total from investment operations | 1.35 | (1.27) | –D | .79 | 1.85 |
| Distributions from net investment income | (.02) | – | (.02) | (.03) | –D |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.02) | – | (.32) | (.24)E | –D |
| Redemption fees added to paid in capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $12.20 | $10.86 | $12.13 | $12.44 | $11.87 |
| Total ReturnF,G | 12.58% | (10.47)% | .05% | 6.87% | 18.75% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 2.17% | 2.16% | 2.10% | 2.19% | 3.77% |
| Expenses net of fee waivers, if any | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% |
| Expenses net of all reductions | 1.94% | 1.94% | 1.95% | 1.89% | 1.89% |
| Net investment income (loss) | .60% | .51%C | .04% | .37% | .91% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,868 | $2,015 | $2,031 | $1,914 | $1,700 |
| Portfolio turnover rateJ | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.03) %.
D Amount represents less than $.005 per share.
E 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.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.69 | $12.00 | $12.35 | $11.82 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .01 | –C,D | (.06) | (.02) | .04 |
| Net realized and unrealized gain (loss) | 1.26 | (1.31) | –D | .74 | 1.76 |
| Total from investment operations | 1.27 | (1.31) | (.06) | .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 capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $11.97 | $10.69 | $12.00 | $12.35 | $11.82 |
| Total ReturnE,F | 11.97% | (10.92)% | (.42)% | 6.32% | 18.20% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.63% | 2.64% | 2.58% | 2.70% | 4.32% |
| Expenses net of fee waivers, if any | 2.45% | 2.45% | 2.45% | 2.45% | 2.45% |
| Expenses net of all reductions | 2.44% | 2.44% | 2.45% | 2.39% | 2.39% |
| Net investment income (loss) | .10% | .01%C | (.46)% | (.13)% | .41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,203 | $1,675 | $1,750 | $2,082 | $1,474 |
| Portfolio turnover rateI | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.52) %.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.98 | $12.21 | $12.52 | $11.92 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .12 | .12C | .07 | .11 | .15 |
| Net realized and unrealized gain (loss) | 1.31 | (1.35) | –D | .74 | 1.76 |
| Total from investment operations | 1.43 | (1.23) | .07 | .85 | 1.91 |
| Distributions from net investment income | (.09) | – | (.09) | (.07) | (.01) |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.09) | – | (.39) | (.27) | (.01) |
| Redemption fees added to paid in capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $12.33 | $10.98 | $12.21 | $12.52 | $11.92 |
| Total ReturnE | 13.19% | (10.07)% | .61% | 7.37% | 19.35% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.55% | 1.56% | 1.48% | 1.57% | 3.02% |
| Expenses net of fee waivers, if any | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.44% | 1.44% | 1.45% | 1.39% | 1.39% |
| Net investment income (loss) | 1.10% | 1.01%C | .54% | .87% | 1.41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $67,178 | $61,601 | $78,377 | $96,731 | $39,135 |
| Portfolio turnover rateH | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .48%.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.02 | $12.25 | $12.53 | $11.92 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .13 | .12C | .07 | .11 | .15 |
| Net realized and unrealized gain (loss) | 1.30 | (1.35) | –D | .75 | 1.76 |
| Total from investment operations | 1.43 | (1.23) | .07 | .86 | 1.91 |
| Distributions from net investment income | (.09) | – | (.06) | (.07) | (.01) |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.09) | – | (.36) | (.27) | (.01) |
| Redemption fees added to paid in capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $12.37 | $11.02 | $12.25 | $12.53 | $11.92 |
| Total ReturnE | 13.16% | (10.04)% | .61% | 7.45% | 19.35% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.59% | 1.54% | 1.56% | 1.60% | 3.21% |
| Expenses net of fee waivers, if any | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.44% | 1.43% | 1.45% | 1.39% | 1.39% |
| Net investment income (loss) | 1.10% | 1.01%C | .54% | .87% | 1.41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $8,337 | $1,410 | $481 | $1,076 | $1,825 |
| Portfolio turnover rateH | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .48%.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Emerging Markets Discovery 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, Emerging Markets Discovery and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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 .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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. 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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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, futures 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 | $11,177,844 |
| Gross unrealized depreciation | (7,947,288) |
| Net unrealized appreciation (depreciation) on securities | $3,230,556 |
| Tax Cost | $84,312,450 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $1,060,338 |
| Capital loss carryforward | $(4,738,627) |
| Net unrealized appreciation (depreciation) on securities and other investments | $3,230,596 |
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 | $(3,072,849) |
| Long-term | (1,665,778) |
| Total capital loss carryforward | $(4,738,627) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $490,717 | $ - |
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. 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.
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. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.
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.
During the period the Fund recognized net realized gain (loss) of $317,752, and a change in net unrealized appreciation (depreciation) of $(33,134) 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 $40,345,088 and $39,619,002, 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 .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 annual 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 intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $11,200 | $225 |
| Class T | .25% | .25% | 10,638 | 4 |
| Class C | .75% | .25% | 17,703 | 4,914 |
| $39,541 | $5,143 |
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 are 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 by FDC |
|
| Class A | $3,058 |
| Class T | 1,345 |
| Class C(a) | 286 |
| $4,689 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $13,979 | .31 |
| Class T | 7,363 | .35 |
| Class C | 5,553 | .31 |
| Emerging Markets Discovery | 133,631 | .23 |
| Class I | 2,952 | .15 |
| $163,478 |
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 $245 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
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 $172 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $25,848, including $92 from securities loaned to FCM.
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, 2017. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.70% | $8,514 |
| Class T | 1.95% | 4,717 |
| Class C | 2.45% | 3,293 |
| Emerging Markets Discovery | 1.45% | 61,107 |
| Class I | 1.45% | 2,856 |
| $80,487 |
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 $2,252 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $468.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 |
|
| From net investment income | ||
| Class A | $22,428 | $– |
| Class T | 4,316 | – |
| Emerging Markets Discovery | 453,104 | – |
| Class I | 10,869 | – |
| Total | $490,717 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 131,085 | 161,641 | $1,473,088 | $1,908,467 |
| Reinvestment of distributions | 1,944 | – | 20,757 | – |
| Shares redeemed | (131,586) | (93,262) | (1,425,583) | (1,088,220) |
| Net increase (decrease) | 1,443 | 68,379 | $68,262 | $820,247 |
| Class T | ||||
| Shares sold | 74,898 | 59,344 | $869,903 | $694,558 |
| Reinvestment of distributions | 389 | – | 4,146 | – |
| Shares redeemed | (25,757) | (41,200) | (281,676) | (472,328) |
| Net increase (decrease) | 49,530 | 18,144 | $592,373 | $222,230 |
| Class C | ||||
| Shares sold | 58,882 | 68,780 | $655,298 | $796,943 |
| Shares redeemed | (31,638) | (57,921) | (342,535) | (667,642) |
| Net increase (decrease) | 27,244 | 10,859 | $312,763 | $129,301 |
| Emerging Markets Discovery | ||||
| Shares sold | 2,003,183 | 2,311,392 | $22,538,095 | $27,313,497 |
| Reinvestment of distributions | 39,922 | – | 427,569 | – |
| Shares redeemed | (2,204,224) | (3,121,418) | (24,359,570) | (36,074,220) |
| Net increase (decrease) | (161,119) | (810,026) | $(1,393,906) | $(8,760,723) |
| Class I | ||||
| Shares sold | 642,732 | 209,924 | $7,808,576 | $2,474,235 |
| Reinvestment of distributions | 981 | – | 10,531 | – |
| Shares redeemed | (97,475) | (121,211) | (1,038,525) | (1,373,121) |
| Net increase (decrease) | 546,238 | 88,713 | $6,780,582 | $1,101,114 |
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.
At the end of the period, the investment adviser or its affiliates were the owners of record of 11% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Emerging Markets Discovery Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Emerging Markets Discovery Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Emerging Markets Discovery Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 19, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.70% | |||
| Actual | $1,000.00 | $1,109.40 | $9.01 | |
| Hypothetical-C | $1,000.00 | $1,016.59 | $8.62 | |
| Class T | 1.95% | |||
| Actual | $1,000.00 | $1,107.10 | $10.33 | |
| Hypothetical-C | $1,000.00 | $1,015.33 | $9.88 | |
| Class C | 2.45% | |||
| Actual | $1,000.00 | $1,104.20 | $12.96 | |
| Hypothetical-C | $1,000.00 | $1,012.82 | $12.40 | |
| Emerging Markets Discovery | 1.45% | |||
| Actual | $1,000.00 | $1,109.80 | $7.69 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.35 | |
| Class I | 1.45% | |||
| Actual | $1,000.00 | $1,110.40 | $7.69 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.35 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Emerging Markets Discovery 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 Emerging Markets Discovery Fund | ||||
| Class A | 12/19/16 | 12/16/16 | $0.060 | $0.064 |
| Class T | 12/19/16 | 12/16/16 | $0.039 | $0.064 |
| Class C | 12/19/16 | 12/16/16 | $0.000 | $0.060 |
| Emerging Markets Discovery | 12/19/16 | 12/16/16 | $0.086 | $0.064 |
| Class I | 12/19/16 | 12/16/16 | $0.096 | $0.064 |
Class A designates 100%, Class T designates 100%, Emerging Markets Discovery designates 96% and Class I designates 95% of the dividends distributed 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 | |
| Fidelity Emerging Markets Discovery Fund | |||
| Class A | 12/07/15 | $0.0976 | $0.0436 |
| Class T | 12/07/15 | $0.0666 | $0.0436 |
| Class C | 12/07/15 | $0.0000 | $0.0000 |
| Emerging Markets Discovery | 12/07/15 | $0.1286 | $0.0436 |
| Class I | 12/07/15 | $0.1306 | $0.0436 |
The funds will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Emerging Markets Discovery Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for the fund in June 2014.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one- and three-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Emerging Markets Discovery Fund
Fidelity Emerging Markets Discovery Fund
AEMD-ANN-1216
1.931250.104
|
Fidelity® Emerging Markets Discovery Fund Fidelity® Total Emerging Markets Fund Annual Report October 31, 2016 |
|
|
Contents
|
Fidelity® Emerging Markets Discovery Fund | |
|
Fidelity® Total Emerging Markets Fund | |
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.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.
Fidelity® Emerging Markets Discovery Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Life of fundA |
| Fidelity® Emerging Markets Discovery Fund | 13.19% | 5.58% |
A From November 1, 2011
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Emerging Markets Discovery Fund, a class of the fund, on November 1, 2011, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI Emerging Markets SMID Cap Index performed over the same period.
| Period Ending Values | ||
|
| $13,123 | Fidelity® Emerging Markets Discovery Fund |
|
| $11,100 | MSCI Emerging Markets SMID Cap Index |
Fidelity® Emerging Markets Discovery Fund
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.'s June vote to exit the European Union – dubbed "Brexit" – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-caps stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from "risk off" to "risk on." Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Co-Portfolio Manager Sam Polyak: For the year, the fund's share classes (excluding sales charges, if applicable) posted gains roughly in the range of 12% to 13%, well outpacing the 5.61% return of the benchmark MSCI Emerging Markets SMID Cap Index. Stock picking – especially within financials – overwhelmingly drove the fund’s outperformance. Picks within industrials, consumer discretionary, materials and information technology also significantly lifted results. Our India-based financial holdings were particularly helpful, including Manappuram Finance – the fund’s largest individual contributor – and Edelweiss Financial Services. Shares of Manappuram and Edelweiss rose 244% and 108%, respectively. Indian stocks were supported by several factors, including increasing global liquidity and the expectation that the new governor of Reserve Bank of India would be willing to lower policy rates. Conversely, a non-index stake in Russia-based Global Ports Investments, a container and oil products terminal operator, was the fund’s most notable individual detractor. Negative operating leverage hurt the company’s results, as container volumes in Russia remained low and the regulator’s review of the industry’s pricing policy increased uncertainty regarding future results. The stock was sold from the fund by period end.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Emerging Markets Discovery Fund
Investment Summary (Unaudited)
Top Five Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Smiles SA (Brazil, Media) | 1.3 | 1.0 |
| Manappuram General Finance & Leasing Ltd. (India, Consumer Finance) | 1.3 | 0.7 |
| Qingdao Haier Co. Ltd. (China, Household Durables) | 1.2 | 1.1 |
| Geely Automobile Holdings Ltd. (Cayman Islands, Automobiles) | 1.2 | 0.0 |
| Aksa Akrilik Kimya Sanayii (Turkey, Textiles, Apparel & Luxury Goods) | 1.2 | 0.4 |
| 6.2 |
Top Five Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Consumer Discretionary | 16.3 | 15.5 |
| Information Technology | 16.3 | 17.5 |
| Financials | 12.5 | 18.0 |
| Industrials | 11.5 | 14.2 |
| Materials | 9.1 | 9.9 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Top Five Countries as of October 31, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| India | 12.4 | 13.2 |
| Cayman Islands | 10.5 | 10.1 |
| Korea (South) | 9.1 | 12.0 |
| Taiwan | 9.1 | 9.8 |
| Brazil | 7.5 | 7.4 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of October 31, 2016 | ||
| Stocks and Equity Futures | 95.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.1% | |
| As of April 30, 2016 | ||
| Stocks | 97.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.5% | |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity® Emerging Markets Discovery Fund
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 87.3% | |||
| Shares | Value | ||
| Argentina - 0.7% | |||
| Grupo Superveille SA sponsored ADR (a) | 23,400 | $355,212 | |
| Inversiones y Representaciones SA ADR (a)(b) | 15,210 | 285,035 | |
| TOTAL ARGENTINA | 640,247 | ||
| Bailiwick of Jersey - 0.4% | |||
| Atrium European Real Estate Ltd. | 72,140 | 308,768 | |
| Bangladesh - 0.4% | |||
| BRAC Bank Ltd. | 449,466 | 342,925 | |
| Bermuda - 1.8% | |||
| Digital China Holdings Ltd. (H Shares) | 173,000 | 144,993 | |
| PAX Global Technology Ltd. | 420,000 | 262,651 | |
| Shangri-La Asia Ltd. | 830,000 | 912,882 | |
| VimpelCom Ltd. sponsored ADR | 61,200 | 204,408 | |
| TOTAL BERMUDA | 1,524,934 | ||
| Brazil - 4.8% | |||
| BR Malls Participacoes SA | 109,900 | 440,013 | |
| BTG Pactual Participations Ltd. unit | 41,200 | 209,872 | |
| Direcional Engenharia SA | 219,000 | 378,722 | |
| Fibria Celulose SA | 38,400 | 307,248 | |
| FPC Par Corretora de Seguros | 54,600 | 258,118 | |
| Minerva SA (b) | 122,600 | 388,310 | |
| QGEP Participacoes SA | 399,200 | 690,346 | |
| Smiles SA | 62,500 | 1,140,739 | |
| Tegma Gestao Logistica SA (b) | 138,800 | 349,609 | |
| TOTAL BRAZIL | 4,162,977 | ||
| British Virgin Islands - 1.3% | |||
| Arcos Dorados Holdings, Inc. Class A (b) | 161,000 | 990,150 | |
| Dolphin Capital Investors Ltd. (b) | 2,042,257 | 140,609 | |
| TOTAL BRITISH VIRGIN ISLANDS | 1,130,759 | ||
| Canada - 1.2% | |||
| Pan American Silver Corp. | 29,000 | 464,870 | |
| Torex Gold Resources, Inc. (b) | 30,670 | 570,504 | |
| TOTAL CANADA | 1,035,374 | ||
| Cayman Islands - 10.5% | |||
| 51job, Inc. sponsored ADR (b) | 12,700 | 431,800 | |
| 58.com, Inc. ADR (b) | 22,600 | 945,810 | |
| Casetek Holdings | 54,000 | 173,843 | |
| China State Construction International Holdings Ltd. | 406,000 | 593,645 | |
| GCL-Poly Energy Holdings Ltd. | 1,170,000 | 158,403 | |
| Geely Automobile Holdings Ltd. | 1,000,000 | 1,031,519 | |
| Goodbaby International Holdings Ltd. | 709,000 | 342,819 | |
| Haitian International Holdings Ltd. | 328,000 | 676,677 | |
| Ju Teng International Holdings Ltd. | 468,000 | 148,446 | |
| Kingboard Laminates Holdings Ltd. | 645,500 | 579,286 | |
| Kingsoft Corp. Ltd. | 85,000 | 191,141 | |
| Lee's Pharmaceutical Holdings Ltd. | 427,500 | 370,970 | |
| Pico Far East Holdings Ltd. | 2,320,000 | 705,972 | |
| Semiconductor Manufacturing International Corp. (b) | 2,337,000 | 283,029 | |
| SITC International Holdings Co. Ltd. | 1,014,000 | 600,120 | |
| Sunny Optical Technology Group Co. Ltd. | 122,000 | 596,192 | |
| TPK Holding Co. Ltd. | 34,000 | 54,459 | |
| Uni-President China Holdings Ltd. | 841,000 | 569,302 | |
| Vinda International Holdings Ltd. | 197,000 | 390,162 | |
| Yirendai Ltd. sponsored ADR (a) | 7,200 | 208,800 | |
| TOTAL CAYMAN ISLANDS | 9,052,395 | ||
| Chile - 3.3% | |||
| Compania Cervecerias Unidas SA sponsored ADR (a) | 22,000 | 473,000 | |
| CorpBanca SA | 45,526,053 | 412,245 | |
| Empresas CMPC SA | 154,503 | 334,660 | |
| Enersis SA | 1,950,297 | 329,916 | |
| Inversiones La Construccion SA | 24,359 | 298,139 | |
| Quinenco SA | 93,980 | 230,195 | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | 16,600 | 485,716 | |
| Vina Concha y Toro SA | 155,746 | 271,570 | |
| TOTAL CHILE | 2,835,441 | ||
| China - 5.3% | |||
| BBMG Corp. (H Shares) | 1,710,000 | 626,184 | |
| China Longyuan Power Grid Corp. Ltd. (H Shares) | 331,200 | 253,240 | |
| Huangshan Tourism Development Co. Ltd. | 535,800 | 733,510 | |
| Qingdao Haier Co. Ltd. | 711,586 | 1,048,087 | |
| Tong Ren Tang Technologies Co. Ltd. (H Shares) | 523,000 | 954,888 | |
| Tsingtao Brewery Co. Ltd. (H Shares) | 106,000 | 423,697 | |
| Zhengzhou Yutong Bus Co. Ltd. | 152,019 | 483,487 | |
| TOTAL CHINA | 4,523,093 | ||
| Colombia - 0.4% | |||
| Organizacion Terpel SA | 105,202 | 339,036 | |
| Greece - 0.5% | |||
| Titan Cement Co. SA (Reg.) | 19,800 | 460,139 | |
| Hong Kong - 2.7% | |||
| BYD Electronic International Co. Ltd. | 164,500 | 129,809 | |
| China Resources Beer Holdings Co. Ltd. | 380,000 | 808,453 | |
| Far East Horizon Ltd. | 497,584 | 454,242 | |
| Techtronic Industries Co. Ltd. | 237,000 | 892,316 | |
| TOTAL HONG KONG | 2,284,820 | ||
| India - 12.4% | |||
| Adani Ports & Special Economic Zone | 139,766 | 643,248 | |
| Alembic Pharmaceuticals Ltd. (b) | 90,632 | 917,591 | |
| Arvind Mills Ltd. | 101,414 | 629,567 | |
| Dalmia Bharat Ltd. | 498 | 15,359 | |
| Deccan Cements Ltd. | 6,177 | 106,977 | |
| Dr Lal Pathlabs Ltd. | 25,382 | 448,258 | |
| Edelweiss Financial Services Ltd. (b) | 180,194 | 329,563 | |
| Exide Industries Ltd. (b) | 216,567 | 635,525 | |
| Grasim Industries Ltd. | 18,607 | 269,856 | |
| IDFC Ltd. (b) | 317,213 | 332,404 | |
| Iifl Holdings Ltd. (b) | 76,732 | 384,204 | |
| Indraprastha Gas Ltd. (b) | 28,782 | 371,072 | |
| JK Cement Ltd. | 36,698 | 520,084 | |
| LIC Housing Finance Ltd. | 47,601 | 415,850 | |
| Mahindra Lifespace Developers Ltd. | 42,765 | 272,981 | |
| Manappuram General Finance & Leasing Ltd. | 732,000 | 1,120,955 | |
| Marksans Pharma Ltd. | 540,112 | 421,042 | |
| Mphasis BFL Ltd. | 55,028 | 422,864 | |
| Power Grid Corp. of India Ltd. | 252,209 | 665,067 | |
| Redington India Ltd. | 97,326 | 153,272 | |
| Solar Industries India Ltd. | 31,501 | 313,072 | |
| The Jammu & Kashmir Bank Ltd. (b) | 200,767 | 202,707 | |
| Torrent Pharmaceuticals Ltd. | 35,159 | 745,948 | |
| VST Industries Ltd. (b) | 8,704 | 309,593 | |
| TOTAL INDIA | 10,647,059 | ||
| Indonesia - 1.8% | |||
| PT Bank Danamon Indonesia Tbk Series A | 820,800 | 242,818 | |
| PT Indo Tambangraya Megah Tbk | 465,000 | 510,509 | |
| PT Link Net Tbk | 133,200 | 51,042 | |
| PT Panin Life Tbk (b) | 25,494,900 | 373,201 | |
| PT Tiga Pilar Sejahtera Food Tbk (b) | 2,203,800 | 351,311 | |
| TOTAL INDONESIA | 1,528,881 | ||
| Israel - 0.4% | |||
| Bezeq The Israel Telecommunication Corp. Ltd. | 189,760 | 344,766 | |
| Kazakhstan - 0.2% | |||
| JSC Halyk Bank of Kazakhstan GDR unit (b) | 30,000 | 199,500 | |
| Kenya - 0.2% | |||
| Kcb Group Ltd. | 632,600 | 169,585 | |
| Korea (South) - 8.7% | |||
| AMOREPACIFIC Group, Inc. | 2,260 | 292,440 | |
| BS Financial Group, Inc. | 47,771 | 388,014 | |
| Com2uS Corp. (b) | 2,533 | 210,390 | |
| Daou Technology, Inc. | 20,645 | 373,639 | |
| Devsisters Co. Ltd. (b) | 7,741 | 175,970 | |
| Fila Korea Ltd. | 9,470 | 721,994 | |
| Hanon Systems | 43,798 | 409,737 | |
| Hyundai Fire & Marine Insurance Co. Ltd. | 11,453 | 353,978 | |
| Hyundai Glovis Co. Ltd. | 2,851 | 432,478 | |
| Hyundai HCN | 176,633 | 571,400 | |
| Hyundai Industrial Development & Construction Co. | 9,086 | 385,284 | |
| Hyundai Wia Corp. | 5,716 | 393,309 | |
| Koh Young Technology, Inc. | 6,561 | 256,989 | |
| Korea Express Co. Ltd. (b) | 2,554 | 448,832 | |
| Korean Reinsurance Co. | 28,384 | 292,835 | |
| Medy-Tox, Inc. | 2,136 | 759,712 | |
| NCSOFT Corp. | 2,187 | 505,756 | |
| Nice Information & Telecom, Inc. | 9,861 | 315,551 | |
| Silicon Works Co. Ltd. | 8,200 | 191,781 | |
| TOTAL KOREA (SOUTH) | 7,480,089 | ||
| Malaysia - 1.1% | |||
| Inari Amertron Bhd | 299,200 | 238,932 | |
| Top Glove Corp. Bhd | 621,900 | 733,827 | |
| TOTAL MALAYSIA | 972,759 | ||
| Mexico - 4.2% | |||
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 65,000 | 628,266 | |
| Grupo Comercial Chedraui S.A.B. de CV | 197,500 | 440,538 | |
| Grupo GICSA SA de CV (b) | 541,532 | 366,159 | |
| Industrias Penoles SA de CV | 29,810 | 722,957 | |
| Macquarie Mexican (REIT) | 390,272 | 491,634 | |
| Qualitas Controladora S.A.B. de CV | 254,500 | 466,963 | |
| Terrafina | 279,600 | 463,313 | |
| TOTAL MEXICO | 3,579,830 | ||
| Netherlands - 0.9% | |||
| Yandex NV Series A (b) | 39,300 | 773,817 | |
| Pakistan - 0.4% | |||
| Habib Bank Ltd. | 147,700 | 315,244 | |
| Panama - 0.8% | |||
| Copa Holdings SA Class A | 7,800 | 719,394 | |
| Philippines - 0.5% | |||
| Alliance Global Group, Inc. | 1,324,800 | 390,086 | |
| Poland - 0.6% | |||
| Asseco Poland SA | 22,600 | 301,564 | |
| Prime Car Management SA | 19,300 | 186,199 | |
| TOTAL POLAND | 487,763 | ||
| Romania - 0.3% | |||
| Banca Transilvania SA | 399,713 | 225,439 | |
| Russia - 1.6% | |||
| Inter Rao Ues JSC (b) | 13,451,004 | 721,333 | |
| RusHydro PJSC (b) | 38,141,300 | 478,201 | |
| Sistema JSFC sponsored GDR | 25,260 | 188,692 | |
| TOTAL RUSSIA | 1,388,226 | ||
| Singapore - 0.5% | |||
| First Resources Ltd. | 352,400 | 461,001 | |
| South Africa - 3.4% | |||
| Alexander Forbes Group Holdings Ltd. | 424,062 | 192,473 | |
| Bidvest Group Ltd. | 55,600 | 690,312 | |
| Imperial Holdings Ltd. | 53,800 | 679,575 | |
| Northam Platinum Ltd. (b) | 138,100 | 504,212 | |
| Pick 'n Pay Stores Ltd. | 76,200 | 372,926 | |
| Reunert Ltd. | 102,400 | 468,570 | |
| TOTAL SOUTH AFRICA | 2,908,068 | ||
| Sri Lanka - 0.8% | |||
| Dialog Axiata PLC | 2,331,964 | 181,322 | |
| Hatton National Bank PLC | 315,296 | 482,004 | |
| TOTAL SRI LANKA | 663,326 | ||
| Taiwan - 9.1% | |||
| ADLINK Technology, Inc. | 107,087 | 207,867 | |
| Advantech Co. Ltd. | 109,000 | 888,498 | |
| Chipbond Technology Corp. | 133,000 | 184,133 | |
| Cleanaway Co. Ltd. | 80,000 | 426,281 | |
| CTCI Corp. | 304,000 | 446,910 | |
| Cub Elecparts, Inc. | 51,568 | 474,324 | |
| Elite Semiconductor Memory Technology, Inc. | 154,000 | 164,362 | |
| eMemory Technology, Inc. | 25,000 | 265,633 | |
| Everlight Electronics Co. Ltd. | 171,000 | 258,438 | |
| FLEXium Interconnect, Inc. | 92,356 | 263,343 | |
| Forhouse Corp. | 520,000 | 201,215 | |
| Hermes Microvision, Inc. | 4,000 | 176,983 | |
| Inventec Corp. | 467,000 | 365,856 | |
| Lite-On Technology Corp. | 358,220 | 514,689 | |
| Powertech Technology, Inc. | 196,000 | 560,115 | |
| Radiant Opto-Electronics Corp. | 95,000 | 160,601 | |
| Sirtec International Co. Ltd. | 189,000 | 237,385 | |
| St.Shine Optical Co. Ltd. | 31,000 | 651,886 | |
| Synnex Technology International Corp. | 309,100 | 330,389 | |
| Tong Hsing Electronics Industries Ltd. | 115,000 | 397,577 | |
| Universal Cement Corp. | 313,568 | 244,163 | |
| Vanguard International Semiconductor Corp. | 211,000 | 430,988 | |
| TOTAL TAIWAN | 7,851,636 | ||
| Thailand - 1.7% | |||
| Delta Electronics PCL (For. Reg.) | 124,400 | 278,713 | |
| PTT Global Chemical PCL (For. Reg.) | 270,800 | 463,732 | |
| Star Petroleum Refining PCL | 1,448,200 | 520,794 | |
| Thai Union Frozen Products PCL (For. Reg.) | 253,000 | 156,692 | |
| TOTAL THAILAND | 1,419,931 | ||
| Turkey - 2.9% | |||
| Aksa Akrilik Kimya Sanayii | 359,000 | 1,009,388 | |
| Aselsan A/S | 156,000 | 473,911 | |
| Bim Birlesik Magazalar A/S JSC | 32,000 | 521,225 | |
| Tupras Turkiye Petrol Rafinelleri A/S | 22,576 | 460,020 | |
| TOTAL TURKEY | 2,464,544 | ||
| United Arab Emirates - 0.2% | |||
| National Bank of Ras Al-Khaimah PSC (b) | 152,077 | 207,023 | |
| United Kingdom - 0.9% | |||
| BGEO Group PLC | 9,440 | 341,553 | |
| International Personal Finance PLC | 54,800 | 197,536 | |
| TBC Bank Group PLC (b) | 13,975 | 220,489 | |
| TOTAL UNITED KINGDOM | 759,578 | ||
| Vietnam - 0.4% | |||
| FTP Corp. | 163,990 | 319,561 | |
| TOTAL COMMON STOCKS | |||
| (Cost $71,874,234) | 74,918,014 | ||
| Nonconvertible Preferred Stocks - 3.1% | |||
| Brazil - 2.7% | |||
| Banco ABC Brasil SA | 105,300 | 507,367 | |
| Banco do Estado Rio Grande do Sul SA | 116,000 | 494,236 | |
| Companhia Paranaense de Energia-Copel (PN-B) sponsored ADR (a) | 35,000 | 399,350 | |
| Metalurgica Gerdau SA (PN) (b) | 615,600 | 916,071 | |
| TOTAL BRAZIL | 2,317,024 | ||
| Korea (South) - 0.4% | |||
| LG Chemical Ltd. | 2,443 | 384,470 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $1,666,143) | 2,701,494 | ||
| Principal Amount | Value | ||
| Government Obligations - 0.4% | |||
| United States of America - 0.4% | |||
| U.S. Treasury Bills, yield at date of purchase 0.2% to 0.35% 11/3/16 to 12/29/16 (Cost $339,889)(c) | 340,000 | 339,900 | |
| Shares | Value | ||
| Money Market Funds - 11.2% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 8,182,921 | 8,185,375 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 1,397,943 | 1,398,223 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $9,581,645) | 9,583,598 | ||
| TOTAL INVESTMENT PORTFOLIO - 102.0% | |||
| (Cost $83,461,911) | 87,543,006 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.0)% | (1,704,519) | ||
| NET ASSETS - 100% | $85,838,487 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||
| Equity Index Contracts | |||
| 105 ICE E-mini MSCI Emerging Markets Index Contracts (United States) | Dec. 2016 | 4,743,375 | $(33,134) |
The face value of futures purchased as a percentage of Net Assets is 5.5%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) 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 $223,911.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
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 | $12,720 |
| Fidelity Securities Lending Cash Central Fund | 25,848 |
| Total | $38,568 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $14,040,571 | $14,040,571 | $-- | $-- |
| Consumer Staples | 6,230,220 | 6,230,220 | -- | -- |
| Energy | 2,181,669 | 2,181,669 | -- | -- |
| Financials | 10,786,694 | 10,786,694 | -- | -- |
| Health Care | 6,004,122 | 6,004,122 | -- | -- |
| Industrials | 9,705,304 | 9,705,304 | -- | -- |
| Information Technology | 14,003,733 | 13,720,704 | 283,029 | -- |
| Materials | 7,710,274 | 7,440,418 | 269,856 | -- |
| Real Estate | 2,768,512 | 2,768,512 | -- | -- |
| Telecommunication Services | 970,230 | 970,230 | -- | -- |
| Utilities | 3,218,179 | 3,218,179 | -- | -- |
| Government Obligations | 339,900 | -- | 339,900 | -- |
| Money Market Funds | 9,583,598 | 9,583,598 | -- | -- |
| Total Investments in Securities: | $87,543,006 | $86,650,221 | $892,785 | $-- |
| Derivative Instruments: | ||||
| Liabilities | ||||
| Futures Contracts | $(33,134) | $(33,134) | $-- | $-- |
| Total Liabilities | $(33,134) | $(33,134) | $-- | $-- |
| Total Derivative Instruments: | $(33,134) | $(33,134) | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $21,740,633 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $0 | $(33,134) |
| Total Equity Risk | 0 | (33,134) |
| Total Value of Derivatives | $0 | $(33,134) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Fidelity® Emerging Markets Discovery Fund
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $1,368,051) — See accompanying schedule: Unaffiliated issuers (cost $73,880,266) | $77,959,408 | |
| Fidelity Central Funds (cost $9,581,645) | 9,583,598 | |
| Total Investments (cost $83,461,911) | $87,543,006 | |
| Cash | 55,299 | |
| Foreign currency held at value (cost $41,848) | 41,932 | |
| Receivable for investments sold | 220,803 | |
| Receivable for fund shares sold | 337,552 | |
| Dividends receivable | 28,953 | |
| Distributions receivable from Fidelity Central Funds | 7,288 | |
| Receivable for daily variation margin for derivative instruments | 24,150 | |
| Prepaid expenses | 181 | |
| Receivable from investment adviser for expense reductions | 34,402 | |
| Other receivables | 15,534 | |
| Total assets | 88,309,100 | |
| Liabilities | ||
| Payable for investments purchased | $564,253 | |
| Payable for fund shares redeemed | 111,665 | |
| Accrued management fee | 59,936 | |
| Distribution and service plan fees payable | 4,044 | |
| Other affiliated payables | 18,330 | |
| Other payables and accrued expenses | 314,260 | |
| Collateral on securities loaned, at value | 1,398,125 | |
| Total liabilities | 2,470,613 | |
| Net Assets | $85,838,487 | |
| Net Assets consist of: | ||
| Paid in capital | $86,526,282 | |
| Undistributed net investment income | 593,159 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,088,810) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 3,807,856 | |
| Net Assets | $85,838,487 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($5,251,834 ÷ 428,195 shares) | $12.27 | |
| Maximum offering price per share (100/94.25 of $12.27) | $13.02 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($2,868,455 ÷ 235,091 shares) | $12.20 | |
| Maximum offering price per share (100/96.50 of $12.20) | $12.64 | |
| Class C: | ||
| Net Asset Value and offering price per share ($2,202,501 ÷ 183,937 shares)(a) | $11.97 | |
| Emerging Markets Discovery: | ||
| Net Asset Value, offering price and redemption price per share ($67,178,214 ÷ 5,447,197 shares) | $12.33 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($8,337,483 ÷ 674,203 shares) | $12.37 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $1,880,586 | |
| Interest | 260 | |
| Income from Fidelity Central Funds | 38,568 | |
| Income before foreign taxes withheld | 1,919,414 | |
| Less foreign taxes withheld | (173,886) | |
| Total income | 1,745,528 | |
| Expenses | ||
| Management fee | $580,454 | |
| Transfer agent fees | 163,478 | |
| Distribution and service plan fees | 39,541 | |
| Accounting and security lending fees | 35,692 | |
| Custodian fees and expenses | 129,239 | |
| Independent trustees' fees and expenses | 290 | |
| Registration fees | 72,169 | |
| Audit | 91,119 | |
| Legal | 208 | |
| Miscellaneous | 649 | |
| Total expenses before reductions | 1,112,839 | |
| Expense reductions | (83,207) | 1,029,632 |
| Net investment income (loss) | 715,896 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (3,179,871) | |
| Fidelity Central Funds | (204) | |
| Foreign currency transactions | 20,449 | |
| Futures contracts | 317,752 | |
| Total net realized gain (loss) | (2,841,874) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $222,685) | 10,724,727 | |
| Assets and liabilities in foreign currencies | 1,967 | |
| Futures contracts | (33,134) | |
| Total change in net unrealized appreciation (depreciation) | 10,693,560 | |
| Net gain (loss) | 7,851,686 | |
| Net increase (decrease) in net assets resulting from operations | $8,567,582 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $715,896 | $749,160 |
| Net realized gain (loss) | (2,841,874) | (1,932,100) |
| Change in net unrealized appreciation (depreciation) | 10,693,560 | (8,002,533) |
| Net increase (decrease) in net assets resulting from operations | 8,567,582 | (9,185,473) |
| Distributions to shareholders from net investment income | (490,717) | – |
| Share transactions - net increase (decrease) | 6,360,074 | (6,487,831) |
| Redemption fees | 41,424 | 32,392 |
| Total increase (decrease) in net assets | 14,478,363 | (15,640,912) |
| Net Assets | ||
| Beginning of period | 71,360,124 | 87,001,036 |
| End of period | $85,838,487 | $71,360,124 |
| Other Information | ||
| Undistributed net investment income end of period | $593,159 | $413,597 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.92 | $12.17 | $12.49 | $11.89 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .09 | .09C | .04 | .08 | .12 |
| Net realized and unrealized gain (loss) | 1.30 | (1.34) | (.01) | .75 | 1.76 |
| Total from investment operations | 1.39 | (1.25) | .03 | .83 | 1.88 |
| Distributions from net investment income | (.05) | – | (.06) | (.04) | (.01) |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.05) | – | (.36) | (.25)D | (.01) |
| Redemption fees added to paid in capitalB | .01 | –E | .01 | .02 | .02 |
| Net asset value, end of period | $12.27 | $10.92 | $12.17 | $12.49 | $11.89 |
| Total ReturnF,G | 12.93% | (10.27)% | .31% | 7.20% | 19.00% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.89% | 1.88% | 1.82% | 1.87% | 3.49% |
| Expenses net of fee waivers, if any | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.70% | 1.69% | 1.70% | 1.64% | 1.64% |
| Net investment income (loss) | .85% | .76%C | .29% | .62% | 1.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,252 | $4,660 | $4,362 | $5,065 | $1,671 |
| Portfolio turnover rateJ | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
D 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.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.86 | $12.13 | $12.44 | $11.87 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .07 | .06C | –D | .05 | .10 |
| Net realized and unrealized gain (loss) | 1.28 | (1.33) | –D | .74 | 1.75 |
| Total from investment operations | 1.35 | (1.27) | –D | .79 | 1.85 |
| Distributions from net investment income | (.02) | – | (.02) | (.03) | –D |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.02) | – | (.32) | (.24)E | –D |
| Redemption fees added to paid in capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $12.20 | $10.86 | $12.13 | $12.44 | $11.87 |
| Total ReturnF,G | 12.58% | (10.47)% | .05% | 6.87% | 18.75% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 2.17% | 2.16% | 2.10% | 2.19% | 3.77% |
| Expenses net of fee waivers, if any | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% |
| Expenses net of all reductions | 1.94% | 1.94% | 1.95% | 1.89% | 1.89% |
| Net investment income (loss) | .60% | .51%C | .04% | .37% | .91% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,868 | $2,015 | $2,031 | $1,914 | $1,700 |
| Portfolio turnover rateJ | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.03) %.
D Amount represents less than $.005 per share.
E 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.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.69 | $12.00 | $12.35 | $11.82 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .01 | –C,D | (.06) | (.02) | .04 |
| Net realized and unrealized gain (loss) | 1.26 | (1.31) | –D | .74 | 1.76 |
| Total from investment operations | 1.27 | (1.31) | (.06) | .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 capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $11.97 | $10.69 | $12.00 | $12.35 | $11.82 |
| Total ReturnE,F | 11.97% | (10.92)% | (.42)% | 6.32% | 18.20% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.63% | 2.64% | 2.58% | 2.70% | 4.32% |
| Expenses net of fee waivers, if any | 2.45% | 2.45% | 2.45% | 2.45% | 2.45% |
| Expenses net of all reductions | 2.44% | 2.44% | 2.45% | 2.39% | 2.39% |
| Net investment income (loss) | .10% | .01%C | (.46)% | (.13)% | .41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,203 | $1,675 | $1,750 | $2,082 | $1,474 |
| Portfolio turnover rateI | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.52) %.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.98 | $12.21 | $12.52 | $11.92 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .12 | .12C | .07 | .11 | .15 |
| Net realized and unrealized gain (loss) | 1.31 | (1.35) | –D | .74 | 1.76 |
| Total from investment operations | 1.43 | (1.23) | .07 | .85 | 1.91 |
| Distributions from net investment income | (.09) | – | (.09) | (.07) | (.01) |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.09) | – | (.39) | (.27) | (.01) |
| Redemption fees added to paid in capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $12.33 | $10.98 | $12.21 | $12.52 | $11.92 |
| Total ReturnE | 13.19% | (10.07)% | .61% | 7.37% | 19.35% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.55% | 1.56% | 1.48% | 1.57% | 3.02% |
| Expenses net of fee waivers, if any | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.44% | 1.44% | 1.45% | 1.39% | 1.39% |
| Net investment income (loss) | 1.10% | 1.01%C | .54% | .87% | 1.41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $67,178 | $61,601 | $78,377 | $96,731 | $39,135 |
| Portfolio turnover rateH | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .48%.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Markets Discovery Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.02 | $12.25 | $12.53 | $11.92 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .13 | .12C | .07 | .11 | .15 |
| Net realized and unrealized gain (loss) | 1.30 | (1.35) | –D | .75 | 1.76 |
| Total from investment operations | 1.43 | (1.23) | .07 | .86 | 1.91 |
| Distributions from net investment income | (.09) | – | (.06) | (.07) | (.01) |
| Distributions from net realized gain | – | – | (.30) | (.20) | – |
| Total distributions | (.09) | – | (.36) | (.27) | (.01) |
| Redemption fees added to paid in capitalB | .01 | –D | .01 | .02 | .02 |
| Net asset value, end of period | $12.37 | $11.02 | $12.25 | $12.53 | $11.92 |
| Total ReturnE | 13.16% | (10.04)% | .61% | 7.45% | 19.35% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.59% | 1.54% | 1.56% | 1.60% | 3.21% |
| Expenses net of fee waivers, if any | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.44% | 1.43% | 1.45% | 1.39% | 1.39% |
| Net investment income (loss) | 1.10% | 1.01%C | .54% | .87% | 1.41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $8,337 | $1,410 | $481 | $1,076 | $1,825 |
| Portfolio turnover rateH | 60% | 103% | 148% | 179% | 83% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .48%.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Emerging Markets Discovery 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, Emerging Markets Discovery and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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 .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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. 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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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, futures 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 | $11,177,844 |
| Gross unrealized depreciation | (7,947,288) |
| Net unrealized appreciation (depreciation) on securities | $3,230,556 |
| Tax Cost | $84,312,450 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $1,060,338 |
| Capital loss carryforward | $(4,738,627) |
| Net unrealized appreciation (depreciation) on securities and other investments | $3,230,596 |
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 | $(3,072,849) |
| Long-term | (1,665,778) |
| Total capital loss carryforward | $(4,738,627) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $490,717 | $ - |
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. 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.
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. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.
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.
During the period the Fund recognized net realized gain (loss) of $317,752, and a change in net unrealized appreciation (depreciation) of $(33,134) 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 $40,345,088 and $39,619,002, 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 .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 annual 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 intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $11,200 | $225 |
| Class T | .25% | .25% | 10,638 | 4 |
| Class C | .75% | .25% | 17,703 | 4,914 |
| $39,541 | $5,143 |
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 are 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 by FDC |
|
| Class A | $3,058 |
| Class T | 1,345 |
| Class C(a) | 286 |
| $4,689 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $13,979 | .31 |
| Class T | 7,363 | .35 |
| Class C | 5,553 | .31 |
| Emerging Markets Discovery | 133,631 | .23 |
| Class I | 2,952 | .15 |
| $163,478 |
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 $245 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
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 $172 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $25,848, including $92 from securities loaned to FCM.
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, 2017. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.70% | $8,514 |
| Class T | 1.95% | 4,717 |
| Class C | 2.45% | 3,293 |
| Emerging Markets Discovery | 1.45% | 61,107 |
| Class I | 1.45% | 2,856 |
| $80,487 |
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 $2,252 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $468.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 |
|
| From net investment income | ||
| Class A | $22,428 | $– |
| Class T | 4,316 | – |
| Emerging Markets Discovery | 453,104 | – |
| Class I | 10,869 | – |
| Total | $490,717 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 131,085 | 161,641 | $1,473,088 | $1,908,467 |
| Reinvestment of distributions | 1,944 | – | 20,757 | – |
| Shares redeemed | (131,586) | (93,262) | (1,425,583) | (1,088,220) |
| Net increase (decrease) | 1,443 | 68,379 | $68,262 | $820,247 |
| Class T | ||||
| Shares sold | 74,898 | 59,344 | $869,903 | $694,558 |
| Reinvestment of distributions | 389 | – | 4,146 | – |
| Shares redeemed | (25,757) | (41,200) | (281,676) | (472,328) |
| Net increase (decrease) | 49,530 | 18,144 | $592,373 | $222,230 |
| Class C | ||||
| Shares sold | 58,882 | 68,780 | $655,298 | $796,943 |
| Shares redeemed | (31,638) | (57,921) | (342,535) | (667,642) |
| Net increase (decrease) | 27,244 | 10,859 | $312,763 | $129,301 |
| Emerging Markets Discovery | ||||
| Shares sold | 2,003,183 | 2,311,392 | $22,538,095 | $27,313,497 |
| Reinvestment of distributions | 39,922 | – | 427,569 | – |
| Shares redeemed | (2,204,224) | (3,121,418) | (24,359,570) | (36,074,220) |
| Net increase (decrease) | (161,119) | (810,026) | $(1,393,906) | $(8,760,723) |
| Class I | ||||
| Shares sold | 642,732 | 209,924 | $7,808,576 | $2,474,235 |
| Reinvestment of distributions | 981 | – | 10,531 | – |
| Shares redeemed | (97,475) | (121,211) | (1,038,525) | (1,373,121) |
| Net increase (decrease) | 546,238 | 88,713 | $6,780,582 | $1,101,114 |
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.
At the end of the period, the investment adviser or its affiliates were the owners of record of 11% of the total outstanding shares of the Fund.
Fidelity® Total Emerging Markets Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Life of fundA |
| Fidelity® Total Emerging Markets Fund | 12.44% | 4.30% |
A From November 1, 2011
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Total Emerging Markets Fund, a class of the fund, on November 1, 2011, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI Emerging Markets Index performed over the same period.
| Period Ending Values | ||
|
| $12,346 | Fidelity® Total Emerging Markets Fund |
|
| $10,747 | MSCI Emerging Markets Index |
Fidelity® Total Emerging Markets Fund
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.'s June vote to exit the European Union – dubbed "Brexit" – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-caps stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from "risk off" to "risk on." Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Lead-Portfolio Manager John Carlson: For the year, the fund's share classes (excluding sales charges, if applicable) generally advanced about 12%, outpacing the 10.66% return of the Fidelity Total Emerging Markets Composite IndexSM. Security selection within both the emerging markets (EM) debt and equity sleeves lifted relative performance most, and asset allocation decisions also helped. The debt sleeve’s outperformance was driven primarily by its overweightings in strong-performing index components Venezuela and Brazil. Toward the end of the period, Venezuela’s state oil company completed a debt swap extending short-dated maturities and buying the country more time to adjust to the low oil-price environment. Brazilian assets also rallied this period, as expectations rose for fiscal adjustments under the country’s new administration after Brazil’s president was formally impeached. Meanwhile, our EM equity component benefited from positioning in South Africa, China, Brazil, India and Russia, as well as security selection in Mexico. In terms of stocks, our non-index stake in Smiles was a plus. Smiles manages the frequent-flyer program of Brazilian low-cost air carrier GOL Airlines. The stock rallied this year along with broader Brazilian market. Conversely, an underweighting Brazil’s Banco Bradesco hurt most, as the stock outperformed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Total Emerging Markets Fund
Investment Summary (Unaudited)
Top Five Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 2.8 | 2.1 |
| Naspers Ltd. Class N (South Africa, Media) | 2.4 | 2.0 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.3 | 1.5 |
| Samsung Electronics Co. Ltd. (Korea (South), Technology Hardware, Storage & Peripherals) | 2.2 | 1.0 |
| Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 1.4 | 1.4 |
| 11.1 |
Top Five Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 16.4 | 18.8 |
| Information Technology | 14.7 | 13.0 |
| Energy | 12.4 | 16.8 |
| Consumer Discretionary | 8.1 | 7.4 |
| Consumer Staples | 5.4 | 5.8 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Top Five Countries as of October 31, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| Korea (South) | 8.0 | 8.7 |
| Cayman Islands | 7.1 | 6.9 |
| Brazil | 6.7 | 6.1 |
| India | 5.9 | 5.5 |
| Taiwan | 5.3 | 4.4 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of October 31, 2016 | ||
| Stocks and Equity Futures | 68.3% | |
| Bonds | 26.6% | |
| Other Investments | 0.1% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 5.0% | |
| As of April 30, 2016 | ||
| Stocks and Equity Futures | 67.5% | |
| Bonds | 28.8% | |
| Other Investments | 0.3% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 3.4% | |
Fidelity® Total Emerging Markets Fund
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 59.5% | |||
| Shares | Value | ||
| Argentina - 0.3% | |||
| Grupo Superveille SA sponsored ADR (a) | 4,200 | $63,756 | |
| Telecom Argentina SA Class B sponsored ADR | 8,534 | 160,610 | |
| YPF SA Class D sponsored ADR | 11,500 | 204,240 | |
| TOTAL ARGENTINA | 428,606 | ||
| Australia - 0.0% | |||
| Frontier Digital Ventures Ltd. | 101,123 | 39,231 | |
| Austria - 0.3% | |||
| Erste Group Bank AG | 13,475 | 423,204 | |
| Bermuda - 0.8% | |||
| AGTech Holdings Ltd. (b) | 500,000 | 104,441 | |
| Credicorp Ltd. (United States) | 1,950 | 289,926 | |
| GP Investments Ltd. Class A (depositary receipt) (b) | 22,922 | 49,837 | |
| PAX Global Technology Ltd. | 249,460 | 156,002 | |
| Shangri-La Asia Ltd. | 520,000 | 571,926 | |
| VimpelCom Ltd. sponsored ADR | 47,160 | 157,514 | |
| TOTAL BERMUDA | 1,329,646 | ||
| Brazil - 2.1% | |||
| B2W Companhia Global do Varejo (b) | 56,040 | 275,284 | |
| BB Seguridade Participacoes SA | 37,670 | 379,296 | |
| BR Malls Participacoes SA | 22,380 | 89,604 | |
| Cielo SA | 25,896 | 262,854 | |
| Companhia de Saneamento de Minas Gerais | 25,496 | 266,142 | |
| Cosan SA Industria e Comercio | 16,835 | 226,365 | |
| Direcional Engenharia SA | 89,300 | 154,429 | |
| FPC Par Corretora de Seguros | 70,900 | 335,176 | |
| Minerva SA (b) | 92,300 | 292,341 | |
| Smiles SA | 51,600 | 941,797 | |
| TOTAL BRAZIL | 3,223,288 | ||
| British Virgin Islands - 0.1% | |||
| Mail.Ru Group Ltd. GDR (Reg. S) (b) | 12,836 | 210,125 | |
| Canada - 0.3% | |||
| Pacific Exploration and Production Corp. warrants | 450 | 13,392 | |
| Pan American Silver Corp. | 20,800 | 333,424 | |
| Torex Gold Resources, Inc. (b) | 7,030 | 130,768 | |
| TOTAL CANADA | 477,584 | ||
| Cayman Islands - 7.0% | |||
| 51job, Inc. sponsored ADR (b) | 5,900 | 200,600 | |
| 58.com, Inc. ADR (b) | 24,050 | 1,006,493 | |
| Alibaba Group Holding Ltd. sponsored ADR (b) | 21,800 | 2,216,842 | |
| Bitauto Holdings Ltd. ADR (b) | 15,400 | 393,162 | |
| BizLink Holding, Inc. | 18,294 | 92,838 | |
| China State Construction International Holdings Ltd. | 208,000 | 304,133 | |
| CK Hutchison Holdings Ltd. | 18,170 | 224,795 | |
| Ctrip.com International Ltd. ADR (b) | 2,700 | 119,205 | |
| Fang Holdings Ltd. ADR (b) | 32,400 | 107,892 | |
| Haitian International Holdings Ltd. | 104,000 | 214,556 | |
| Himax Technologies, Inc. sponsored ADR | 15,200 | 119,320 | |
| JD.com, Inc. sponsored ADR (b) | 36,000 | 934,200 | |
| Sino Biopharmaceutical Ltd. | 514,000 | 359,874 | |
| Sunny Optical Technology Group Co. Ltd. | 7,000 | 34,208 | |
| Tencent Holdings Ltd. | 135,150 | 3,581,791 | |
| Uni-President China Holdings Ltd. | 792,600 | 536,538 | |
| Vipshop Holdings Ltd. ADR (b) | 32,300 | 441,541 | |
| TOTAL CAYMAN ISLANDS | 10,887,988 | ||
| Chile - 1.0% | |||
| Compania Cervecerias Unidas SA sponsored ADR | 14,900 | 320,350 | |
| CorpBanca SA | 28,194,559 | 255,306 | |
| Enersis SA | 1,580,842 | 267,418 | |
| Inversiones La Construccion SA | 17,643 | 215,939 | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | 9,700 | 283,822 | |
| Vina Concha y Toro SA | 93,580 | 163,173 | |
| TOTAL CHILE | 1,506,008 | ||
| China - 4.4% | |||
| Anhui Conch Cement Co. Ltd. (H Shares) | 101,000 | 279,993 | |
| BBMG Corp. (H Shares) | 1,020,000 | 373,513 | |
| China Life Insurance Co. Ltd. (H Shares) | 242,034 | 599,212 | |
| China Longyuan Power Grid Corp. Ltd. (H Shares) | 293,360 | 224,307 | |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | 183,306 | 662,975 | |
| China Petroleum & Chemical Corp. (H Shares) | 406,000 | 293,620 | |
| China Shenhua Energy Co. Ltd. (H Shares) | 157,000 | 326,731 | |
| China Suntien Green Energy Corp. Ltd. (H Shares) | 169,000 | 22,662 | |
| China Telecom Corp. Ltd. (H Shares) | 568,449 | 293,916 | |
| Industrial & Commercial Bank of China Ltd. (H Shares) | 2,320,660 | 1,392,952 | |
| Inner Mongoli Yili Industries Co. Ltd. (A Shares) | 80,871 | 214,716 | |
| Kweichow Moutai Co. Ltd. (A Shares) | 6,850 | 321,432 | |
| Maanshan Iron & Steel Ltd. (H Shares) (b) | 470,000 | 107,265 | |
| PICC Property & Casualty Co. Ltd. (H Shares) | 230,580 | 373,421 | |
| Qingdao Haier Co. Ltd. | 372,782 | 549,066 | |
| Shanghai International Airport Co. Ltd. (A Shares) | 53,866 | 215,518 | |
| Tsingtao Brewery Co. Ltd. (H Shares) | 68,000 | 271,805 | |
| Zhengzhou Yutong Bus Co. Ltd. | 77,591 | 246,773 | |
| TOTAL CHINA | 6,769,877 | ||
| Colombia - 0.2% | |||
| Bancolombia SA sponsored ADR | 7,555 | 289,205 | |
| Czech Republic - 0.2% | |||
| MONETA Money Bank A/S | 72,400 | 252,465 | |
| Egypt - 0.2% | |||
| Commercial International Bank SAE sponsored GDR | 33,800 | 149,396 | |
| Global Telecom Holding GDR (b) | 42,760 | 87,658 | |
| Qalaa Holdings SAE (b) | 254,000 | 20,309 | |
| TOTAL EGYPT | 257,363 | ||
| Greece - 0.2% | |||
| Titan Cement Co. SA (Reg.) | 16,100 | 374,154 | |
| Hong Kong - 3.6% | |||
| AIA Group Ltd. | 71,020 | 448,250 | |
| China Mobile Ltd. | 35,590 | 407,733 | |
| China Mobile Ltd. sponsored ADR | 23,950 | 1,375,449 | |
| China Resources Beer Holdings Co. Ltd. | 364,666 | 775,830 | |
| China Resources Power Holdings Co. Ltd. | 128,949 | 219,140 | |
| CNOOC Ltd. | 851,000 | 1,070,791 | |
| Far East Horizon Ltd. | 794,980 | 725,733 | |
| Sinotruk Hong Kong Ltd. | 295,000 | 163,180 | |
| Techtronic Industries Co. Ltd. | 103,500 | 389,682 | |
| TOTAL HONG KONG | 5,575,788 | ||
| India - 5.9% | |||
| Adani Ports & Special Economic Zone | 99,786 | 459,247 | |
| Axis Bank Ltd. | 41,795 | 305,072 | |
| Bharti Infratel Ltd. | 43,303 | 224,385 | |
| Coal India Ltd. | 88,259 | 429,748 | |
| Dalmia Bharat Ltd. | 498 | 15,359 | |
| Edelweiss Financial Services Ltd. (b) | 112,822 | 206,344 | |
| Eicher Motors Ltd. | 863 | 310,758 | |
| Grasim Industries Ltd. | 5,504 | 79,824 | |
| Housing Development Finance Corp. Ltd. | 22,355 | 466,400 | |
| ICICI Bank Ltd. (b) | 49,400 | 205,577 | |
| ICICI Bank Ltd. sponsored ADR | 16,000 | 132,640 | |
| ITC Ltd. | 169,987 | 619,497 | |
| JK Cement Ltd. | 20,686 | 293,162 | |
| Larsen & Toubro Ltd. | 17,387 | 385,949 | |
| LIC Housing Finance Ltd. | 35,831 | 313,026 | |
| Lupin Ltd. | 29,196 | 651,429 | |
| Petronet LNG Ltd. | 49,936 | 291,057 | |
| Phoenix Mills Ltd. | 43,925 | 248,284 | |
| Power Grid Corp. of India Ltd. | 242,624 | 639,791 | |
| Reliance Industries Ltd. | 46,383 | 733,549 | |
| SREI Infrastructure Finance Ltd. (b) | 116,223 | 126,755 | |
| State Bank of India | 135,733 | 524,981 | |
| Sun Pharmaceutical Industries Ltd. | 64,182 | 715,277 | |
| Tata Consultancy Services Ltd. | 20,272 | 728,973 | |
| TOTAL INDIA | 9,107,084 | ||
| Indonesia - 1.0% | |||
| PT Astra International Tbk | 1,010,500 | 636,984 | |
| PT Bank Mandiri (Persero) Tbk | 297,850 | 262,361 | |
| PT Bank Rakyat Indonesia Tbk | 473,800 | 443,007 | |
| PT Kalbe Farma Tbk | 1,149,400 | 153,277 | |
| PT Link Net Tbk | 335,600 | 128,602 | |
| TOTAL INDONESIA | 1,624,231 | ||
| Israel - 0.3% | |||
| Bezeq The Israel Telecommunication Corp. Ltd. | 283,655 | 515,360 | |
| Japan - 1.2% | |||
| Alps Electric Co. Ltd. | 5,700 | 136,970 | |
| DeNA Co. Ltd. | 2,700 | 87,022 | |
| Nexon Co. Ltd. | 8,100 | 138,257 | |
| Nissha Printing Co. Ltd. (c) | 5,000 | 121,245 | |
| Rakuten, Inc. | 16,900 | 195,397 | |
| Sony Corp. | 5,900 | 185,958 | |
| Sumco Corp. | 21,800 | 229,080 | |
| Suzuki Motor Corp. | 21,800 | 775,379 | |
| TOTAL JAPAN | 1,869,308 | ||
| Korea (South) - 7.2% | |||
| AMOREPACIFIC Group, Inc. | 2,530 | 327,378 | |
| Daou Technology, Inc. | 16,275 | 294,550 | |
| Duk San Neolux Co. Ltd. (b) | 1,826 | 47,097 | |
| EO Technics Co. Ltd. | 867 | 47,756 | |
| Fila Korea Ltd. | 4,672 | 356,194 | |
| Hanon Systems | 22,770 | 213,017 | |
| Hyundai Fire & Marine Insurance Co. Ltd. | 9,138 | 282,428 | |
| Hyundai Glovis Co. Ltd. | 1,740 | 263,946 | |
| Hyundai Industrial Development & Construction Co. | 5,165 | 219,018 | |
| Hyundai Mobis | 1,747 | 418,514 | |
| InterPark INT Corp. | 21,242 | 208,008 | |
| Kakao Corp. | 802 | 53,572 | |
| KB Financial Group, Inc. | 24,687 | 914,229 | |
| KEPCO Plant Service & Engineering Co. Ltd. | 3,362 | 161,375 | |
| Korea Electric Power Corp. | 9,318 | 403,277 | |
| Korea Express Co. Ltd. (b) | 722 | 126,882 | |
| Korean Reinsurance Co. | 42,922 | 442,822 | |
| KT Corp. | 3,684 | 103,970 | |
| KT Corp. sponsored ADR (c) | 1,510 | 24,145 | |
| LG Chemical Ltd. | 1,234 | 265,949 | |
| LG Display Co. Ltd. | 10,873 | 260,082 | |
| NCSOFT Corp. | 1,368 | 316,358 | |
| Samsung Electronics Co. Ltd. | 2,344 | 3,358,950 | |
| Samsung Fire & Marine Insurance Co. Ltd. | 554 | 141,194 | |
| Samsung SDI Co. Ltd. | 4,003 | 330,038 | |
| Shinhan Financial Group Co. Ltd. | 25,548 | 979,475 | |
| Shinhan Financial Group Co. Ltd. sponsored ADR | 200 | 7,728 | |
| SK Hynix, Inc. | 7,456 | 267,274 | |
| SK Telecom Co. Ltd. | 64 | 12,551 | |
| SK Telecom Co. Ltd. sponsored ADR | 10,484 | 229,075 | |
| Viatron Technologies, Inc. | 3,962 | 69,800 | |
| TOTAL KOREA (SOUTH) | 11,146,652 | ||
| Mauritius - 0.1% | |||
| MakeMyTrip Ltd. (b) | 8,000 | 227,200 | |
| Mexico - 3.2% | |||
| America Movil S.A.B. de CV Series L sponsored ADR | 19,573 | 257,189 | |
| Banregio Grupo Financiero S.A.B. de CV | 18,580 | 121,737 | |
| CEMEX S.A.B. de CV sponsored ADR | 48,188 | 418,272 | |
| El Puerto de Liverpool S.A.B. de CV Class C | 36,200 | 379,448 | |
| Fibra Uno Administracion SA de CV | 224,360 | 428,161 | |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 35,700 | 345,063 | |
| Grupo Comercial Chedraui S.A.B. de CV | 87,376 | 194,898 | |
| Grupo Financiero Banorte S.A.B. de CV Series O | 218,369 | 1,285,998 | |
| Infraestructura Energetica Nova S.A.B. de CV | 64,000 | 283,346 | |
| Macquarie Mexican (REIT) | 477,270 | 601,227 | |
| Promotora y Operadora de Infraestructura S.A.B. de CV | 20,300 | 226,940 | |
| Wal-Mart de Mexico SA de CV Series V | 185,500 | 392,474 | |
| TOTAL MEXICO | 4,934,753 | ||
| Netherlands - 0.6% | |||
| Altice NV Class B (b) | 7,414 | 137,992 | |
| Cnova NV (b) | 8,050 | 43,148 | |
| Hangzhou Hikvision Digital Technology Co. Ltd. ELS (BNP Paribas Warrant Program) warrants 9/29/17 (b)(d) | 66,550 | 241,025 | |
| Yandex NV Series A (b) | 23,067 | 454,189 | |
| TOTAL NETHERLANDS | 876,354 | ||
| Nigeria - 0.2% | |||
| Guaranty Trust Bank PLC | 338,721 | 25,250 | |
| Guaranty Trust Bank PLC GDR (Reg. S) | 23,480 | 93,450 | |
| Transnational Corp. of Nigeria PLC (b) | 6,036,239 | 17,424 | |
| Zenith Bank PLC | 2,567,575 | 119,725 | |
| TOTAL NIGERIA | 255,849 | ||
| Pakistan - 0.3% | |||
| Habib Bank Ltd. | 201,900 | 430,926 | |
| Panama - 0.2% | |||
| Copa Holdings SA Class A | 3,249 | 299,655 | |
| Philippines - 0.6% | |||
| Alliance Global Group, Inc. | 556,620 | 163,896 | |
| Metropolitan Bank & Trust Co. | 231,781 | 389,097 | |
| Robinsons Land Corp. | 576,880 | 368,669 | |
| TOTAL PHILIPPINES | 921,662 | ||
| Romania - 0.1% | |||
| Banca Transilvania SA | 257,042 | 144,972 | |
| Russia - 3.6% | |||
| Lukoil PJSC sponsored ADR | 20,900 | 1,018,875 | |
| Magnit OJSC GDR (Reg. S) | 18,900 | 750,141 | |
| MegaFon PJSC (b) | 11,400 | 108,244 | |
| MegaFon PJSC GDR | 6,440 | 61,373 | |
| MMC Norilsk Nickel PJSC sponsored ADR | 36,900 | 556,452 | |
| Mobile TeleSystems OJSC (b) | 57,492 | 202,835 | |
| Mobile TeleSystems OJSC sponsored ADR | 4,100 | 31,611 | |
| NOVATEK OAO GDR (Reg. S) | 5,700 | 609,330 | |
| Rosneft Oil Co. OJSC (b) | 80,100 | 439,215 | |
| Sberbank of Russia (b) | 207,580 | 483,173 | |
| Sberbank of Russia sponsored ADR | 89,384 | 848,254 | |
| Sistema JSFC (b) | 435,400 | 132,369 | |
| Sistema JSFC sponsored GDR | 5,060 | 37,798 | |
| Unipro PJSC (b) | 4,893,700 | 225,229 | |
| TOTAL RUSSIA | 5,504,899 | ||
| Singapore - 0.4% | |||
| Ascendas Real Estate Investment Trust | 246,210 | 419,420 | |
| First Resources Ltd. | 205,700 | 269,092 | |
| TOTAL SINGAPORE | 688,512 | ||
| South Africa - 4.9% | |||
| Alexander Forbes Group Holdings Ltd. | 319,715 | 145,112 | |
| Aspen Pharmacare Holdings Ltd. | 16,476 | 358,913 | |
| Barclays Africa Group Ltd. | 31,667 | 367,216 | |
| Bidcorp Ltd. | 15,756 | 277,815 | |
| Bidvest Group Ltd. | 24,756 | 307,363 | |
| Imperial Holdings Ltd. | 48,800 | 616,417 | |
| JSE Ltd. | 12,510 | 145,913 | |
| Life Healthcare Group Holdings Ltd. | 110,900 | 296,090 | |
| Naspers Ltd. Class N | 21,981 | 3,684,054 | |
| Nedbank Group Ltd. | 15,180 | 248,239 | |
| Sasol Ltd. | 5,300 | 146,359 | |
| Shoprite Holdings Ltd. | 45,400 | 670,036 | |
| Telkom SA Ltd. | 55,402 | 255,608 | |
| TOTAL SOUTH AFRICA | 7,519,135 | ||
| Spain - 0.3% | |||
| Banco Bilbao Vizcaya Argentaria SA | 62,826 | 452,265 | |
| Taiwan - 5.3% | |||
| Advantech Co. Ltd. | 52,000 | 423,870 | |
| Boardtek Electronics Corp. | 71,000 | 70,485 | |
| Chroma ATE, Inc. | 46,000 | 116,866 | |
| E.SUN Financial Holdings Co. Ltd. | 471,200 | 268,266 | |
| eMemory Technology, Inc. | 9,000 | 95,628 | |
| Hermes Microvision, Inc. | 3,000 | 132,737 | |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | 89,000 | 240,788 | |
| HTC Corp. (b) | 16,000 | 46,891 | |
| King's Town Bank | 99,600 | 81,661 | |
| Largan Precision Co. Ltd. | 5,833 | 691,002 | |
| MediaTek, Inc. | 45,000 | 342,547 | |
| Taiwan Cement Corp. | 431,000 | 517,416 | |
| Taiwan Fertilizer Co. Ltd. | 64,000 | 85,865 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 701,000 | 4,210,824 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 3,142 | 97,716 | |
| Universal Cement Corp. | 164,320 | 127,950 | |
| Vanguard International Semiconductor Corp. | 76,000 | 155,237 | |
| Wistron NeWeb Corp. | 38,780 | 108,117 | |
| Yuanta Financial Holding Co. Ltd. | 947,231 | 354,515 | |
| TOTAL TAIWAN | 8,168,381 | ||
| Thailand - 1.3% | |||
| Jasmine Broadband Internet Infrastructure Fund | 460,890 | 159,166 | |
| Kasikornbank PCL (For. Reg.) | 138,080 | 677,838 | |
| PTT Global Chemical PCL (For. Reg.) | 212,900 | 364,581 | |
| PTT PCL (For. Reg.) | 49,600 | 489,807 | |
| Star Petroleum Refining PCL | 488,700 | 175,744 | |
| Thai Union Frozen Products PCL (For. Reg.) | 135,100 | 83,672 | |
| TOTAL THAILAND | 1,950,808 | ||
| Turkey - 0.9% | |||
| Aselsan A/S | 56,000 | 170,122 | |
| Bim Birlesik Magazalar A/S JSC | 25,000 | 407,207 | |
| Enka Insaat ve Sanayi A/S | 93,550 | 142,702 | |
| Tupras Turkiye Petrol Rafinelleri A/S | 21,600 | 440,133 | |
| Turkiye Garanti Bankasi A/S | 94,074 | 255,688 | |
| TOTAL TURKEY | 1,415,852 | ||
| United Arab Emirates - 0.7% | |||
| DP World Ltd. | 15,732 | 282,389 | |
| Emaar Properties PJSC | 226,223 | 429,294 | |
| First Gulf Bank PJSC | 121,994 | 381,963 | |
| TOTAL UNITED ARAB EMIRATES | 1,093,646 | ||
| United Kingdom - 0.2% | |||
| Fresnillo PLC | 13,000 | 260,957 | |
| United States of America - 0.3% | |||
| Cognizant Technology Solutions Corp. Class A (b) | 4,620 | 237,237 | |
| First Cash Financial Services, Inc. | 3,849 | 181,673 | |
| TOTAL UNITED STATES OF AMERICA | 418,910 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $84,223,469) | 91,871,903 | ||
| Nonconvertible Preferred Stocks - 4.7% | |||
| Brazil - 3.9% | |||
| Ambev SA sponsored ADR | 209,900 | 1,238,410 | |
| Banco do Estado Rio Grande do Sul SA | 53,120 | 226,326 | |
| Companhia Paranaense de Energia-Copel: | |||
| (PN-B) | 915 | 10,477 | |
| (PN-B) sponsored ADR | 32,552 | 371,418 | |
| Itau Unibanco Holding SA sponsored ADR | 140,541 | 1,676,654 | |
| Metalurgica Gerdau SA (PN) (b) | 245,970 | 366,027 | |
| Petroleo Brasileiro SA - Petrobras (PN) sponsored (non-vtg.) (b) | 90,206 | 997,678 | |
| Telefonica Brasil SA | 25,777 | 372,927 | |
| Vale SA (PN-A) sponsored ADR | 123,700 | 796,628 | |
| TOTAL BRAZIL | 6,056,545 | ||
| Korea (South) - 0.8% | |||
| Hyundai Motor Co. Series 2 | 3,990 | 350,595 | |
| Samsung Electronics Co. Ltd. | 579 | 666,701 | |
| Samsung Fire & Marine Insurance Co. Ltd. | 1,254 | 207,217 | |
| TOTAL KOREA (SOUTH) | 1,224,513 | ||
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $5,919,510) | 7,281,058 | ||
| Principal Amount(e) | Value | ||
| Nonconvertible Bonds - 9.8% | |||
| Azerbaijan - 0.7% | |||
| International Bank of Azerbaijan OJSC 5.625% 6/11/19 (Reg. S) | 200,000 | 199,264 | |
| Southern Gas Corridor CJSC 6.875% 3/24/26 (d) | 525,000 | 592,242 | |
| State Oil Co. of Azerbaijan Republic 6.95% 3/18/30 (Reg. S) | 275,000 | 298,210 | |
| TOTAL AZERBAIJAN | 1,089,716 | ||
| Canada - 0.2% | |||
| First Quantum Minerals Ltd. 7% 2/15/21 (d) | 250,000 | 237,344 | |
| Pacific Exploration and Production Corp. 12% 12/22/16 | 18,000 | 18,126 | |
| Pacific Rubiales Energy Corp. 5.125% 3/28/23 (d)(f) | 100,000 | 20,000 | |
| TOTAL CANADA | 275,470 | ||
| Cayman Islands - 0.1% | |||
| Odebrecht Finance Ltd. 4.375% 4/25/25 (d) | 400,000 | 191,500 | |
| Georgia - 0.4% | |||
| Georgian Oil & Gas Corp. 6.75% 4/26/21 (d) | 250,000 | 262,238 | |
| JSC BGEO Group 6% 7/26/23 (d) | 200,000 | 205,108 | |
| JSC Georgian Railway 7.75% 7/11/22 (d) | 200,000 | 223,000 | |
| TOTAL GEORGIA | 690,346 | ||
| Indonesia - 1.1% | |||
| PT Pertamina Persero: | |||
| 4.875% 5/3/22 (d) | 275,000 | 293,455 | |
| 5.625% 5/20/43 (d) | 200,000 | 200,617 | |
| 6% 5/3/42 (d) | 400,000 | 421,750 | |
| 6.5% 5/27/41 (d) | 700,000 | 786,152 | |
| TOTAL INDONESIA | 1,701,974 | ||
| Ireland - 0.4% | |||
| Vnesheconombank Via VEB Finance PLC: | |||
| 6.8% 11/22/25 (d) | 425,000 | 454,750 | |
| 6.902% 7/9/20 (d) | 200,000 | 215,500 | |
| TOTAL IRELAND | 670,250 | ||
| Kazakhstan - 0.8% | |||
| Kazagro National Management Holding JSC 4.625% 5/24/23 (d) | 400,000 | 374,000 | |
| KazMunaiGaz Finance Sub BV: | |||
| 6.375% 4/9/21 (d) | 250,000 | 274,724 | |
| 7% 5/5/20 (d) | 200,000 | 221,746 | |
| 9.125% 7/2/18 (d) | 300,000 | 328,961 | |
| TOTAL KAZAKHSTAN | 1,199,431 | ||
| Luxembourg - 0.5% | |||
| Petrobras International Finance Co. Ltd. 8.375% 12/10/18 | 300,000 | 324,540 | |
| RSHB Capital SA 5.1% 7/25/18 (d) | 400,000 | 410,000 | |
| TOTAL LUXEMBOURG | 734,540 | ||
| Mexico - 1.8% | |||
| Comision Federal de Electricid 4.75% 2/23/27 (d) | 200,000 | 203,220 | |
| Pemex Project Funding Master Trust 6.625% 6/15/35 | 825,000 | 830,363 | |
| Petroleos Mexicanos: | |||
| 5.5% 6/27/44 | 650,000 | 559,910 | |
| 6.375% 2/4/21 (d) | 150,000 | 164,100 | |
| 6.375% 1/23/45 | 20,000 | 19,010 | |
| 6.5% 6/2/41 | 750,000 | 729,000 | |
| 6.625% (d)(g) | 95,000 | 91,787 | |
| 6.75% 9/21/47 (d) | 200,000 | 198,250 | |
| TOTAL MEXICO | 2,795,640 | ||
| Netherlands - 1.4% | |||
| Petrobras Global Finance BV: | |||
| 6.85% 6/5/2115 | 965,000 | 820,250 | |
| 7.25% 3/17/44 | 205,000 | 188,600 | |
| 8.375% 5/23/21 | 325,000 | 359,548 | |
| 8.75% 5/23/26 | 675,000 | 760,388 | |
| TOTAL NETHERLANDS | 2,128,786 | ||
| South Africa - 0.2% | |||
| Eskom Holdings SOC Ltd. 6.75% 8/6/23 (d) | 300,000 | 309,561 | |
| Trinidad & Tobago - 0.4% | |||
| Petroleum Co. of Trinidad & Tobago Ltd.: | |||
| 6% 5/8/22 (d) | 342,500 | 341,216 | |
| 9.75% 8/14/19 (d) | 300,000 | 332,112 | |
| TOTAL TRINIDAD & TOBAGO | 673,328 | ||
| Turkey - 0.1% | |||
| Turkiye Ihracat Kredi Bankasi A/S 5.375% 10/24/23 (d) | 200,000 | 199,940 | |
| United Arab Emirates - 0.2% | |||
| DP World Ltd. 6.85% 7/2/37 (Reg. S) | 200,000 | 227,831 | |
| United Kingdom - 0.5% | |||
| Biz Finance PLC 9.625% 4/27/22 (d) | 750,000 | 739,545 | |
| Venezuela - 1.0% | |||
| Petroleos de Venezuela SA: | |||
| 5.25% 4/12/17 | 300,000 | 241,500 | |
| 5.5% 4/12/37 | 500,000 | 183,250 | |
| 6% 11/15/26 (Reg. S) | 1,200,000 | 445,764 | |
| 8.5% 11/2/17 (d) | 83,333 | 60,625 | |
| 9% 11/17/21 (Reg. S) | 550,000 | 272,250 | |
| 12.75% 2/17/22 (d) | 600,000 | 355,500 | |
| TOTAL VENEZUELA | 1,558,889 | ||
| TOTAL NONCONVERTIBLE BONDS | |||
| (Cost $15,029,072) | 15,186,747 | ||
| Government Obligations - 17.0% | |||
| Angola - 0.3% | |||
| Angola Republic 9.5% 11/12/25 (d) | 550,000 | 538,148 | |
| Argentina - 1.2% | |||
| Argentine Republic: | |||
| 6.25% 4/22/19 (d) | 345,000 | 365,700 | |
| 6.875% 4/22/21 (d) | 320,000 | 346,240 | |
| 7% 4/17/17 | 140,000 | 142,563 | |
| 7.125% 7/6/36 (d) | 150,000 | 154,650 | |
| 7.5% 4/22/26 (d) | 385,000 | 420,613 | |
| 8.28% 12/31/33 | 315,459 | 353,787 | |
| TOTAL ARGENTINA | 1,783,553 | ||
| Armenia - 0.5% | |||
| Republic of Armenia: | |||
| 6% 9/30/20 (d) | 325,000 | 335,969 | |
| 7.15% 3/26/25 (d) | 400,000 | 422,000 | |
| TOTAL ARMENIA | 757,969 | ||
| Bahrain - 0.1% | |||
| Bahrain Kingdom 6% 9/19/44 (Reg. S) | 200,000 | 169,000 | |
| Barbados - 0.2% | |||
| Barbados Government 7% 8/4/22 (d) | 250,000 | 247,188 | |
| Belarus - 0.3% | |||
| Belarus Republic 8.95% 1/26/18 | 400,000 | 419,834 | |
| Brazil - 0.7% | |||
| Brazilian Federative Republic: | |||
| 5% 1/27/45 | 200,000 | 176,500 | |
| 5.625% 2/21/47 | 200,000 | 191,500 | |
| 8.25% 1/20/34 | 500,000 | 627,500 | |
| 12.25% 3/6/30 | 100,000 | 165,750 | |
| TOTAL BRAZIL | 1,161,250 | ||
| Cameroon - 0.3% | |||
| Cameroon Republic 9.5% 11/19/25 (d) | 400,000 | 445,128 | |
| Colombia - 0.3% | |||
| Colombian Republic: | |||
| 6.125% 1/18/41 | 100,000 | 114,250 | |
| 7.375% 9/18/37 | 250,000 | 320,000 | |
| TOTAL COLOMBIA | 434,250 | ||
| Congo - 0.1% | |||
| Congo Republic 4% 6/30/29 (h) | 241,015 | 163,514 | |
| Costa Rica - 0.4% | |||
| Costa Rican Republic: | |||
| 4.375% 4/30/25 (d) | 225,000 | 214,139 | |
| 7.158% 3/12/45 (d) | 400,000 | 418,000 | |
| TOTAL COSTA RICA | 632,139 | ||
| Croatia - 0.5% | |||
| Croatia Republic 6% 1/26/24 (d) | 650,000 | 733,525 | |
| Dominican Republic - 0.3% | |||
| Dominican Republic 6.6% 1/28/24 (d) | 375,000 | 406,875 | |
| Ecuador - 0.3% | |||
| Ecuador Republic: | |||
| 7.95% 6/20/24 (d) | 200,000 | 188,500 | |
| 10.75% 3/28/22 (d) | 200,000 | 211,500 | |
| TOTAL ECUADOR | 400,000 | ||
| El Salvador - 0.3% | |||
| El Salvador Republic 7.625% 2/1/41 (d) | 450,000 | 462,938 | |
| Ethiopia - 0.1% | |||
| Federal Democratic Republic of Ethiopia 6.625% 12/11/24 (d) | 200,000 | 188,750 | |
| Gabon - 0.4% | |||
| Gabonese Republic: | |||
| 6.375% 12/12/24 (d) | 200,000 | 183,356 | |
| 6.95% 6/16/25 (d) | 550,000 | 507,304 | |
| TOTAL GABON | 690,660 | ||
| Ghana - 0.7% | |||
| Ghana Republic: | |||
| 7.875% 8/7/23 (Reg.S) | 400,000 | 382,864 | |
| 9.25% 9/15/22 (d) | 200,000 | 207,322 | |
| 10.75% 10/14/30 (d) | 400,000 | 470,920 | |
| TOTAL GHANA | 1,061,106 | ||
| Indonesia - 0.2% | |||
| Indonesian Republic 8.5% 10/12/35 (d) | 200,000 | 295,857 | |
| Iraq - 0.3% | |||
| Republic of Iraq 5.8% 1/15/28 (Reg. S) | 500,000 | 401,863 | |
| Ivory Coast - 0.3% | |||
| Ivory Coast 5.375% 7/23/24 (d) | 400,000 | 403,500 | |
| Jamaica - 0.1% | |||
| Jamaican Government 8% 3/15/39 | 200,000 | 232,972 | |
| Jordan - 0.3% | |||
| Jordanian Kingdom: | |||
| 5.75% 1/31/27 (d) | 200,000 | 199,020 | |
| 6.125% 1/29/26 (d) | 200,000 | 209,000 | |
| TOTAL JORDAN | 408,020 | ||
| Kenya - 0.5% | |||
| Republic of Kenya 6.875% 6/24/24 (d) | 700,000 | 698,250 | |
| Lebanon - 1.3% | |||
| Lebanese Republic: | |||
| 4% 12/31/17 | 295,500 | 290,329 | |
| 5.15% 6/12/18 | 200,000 | 198,290 | |
| 5.15% 11/12/18 | 100,000 | 98,548 | |
| 5.45% 11/28/19 | 700,000 | 689,612 | |
| 6% 5/20/19 | 225,000 | 222,813 | |
| 6.1% 10/4/22 | 300,000 | 293,820 | |
| 6.375% 3/9/20 | 275,000 | 275,688 | |
| TOTAL LEBANON | 2,069,100 | ||
| Mexico - 0.3% | |||
| United Mexican States 10% 12/5/24 | MXN | 6,500,000 | 427,677 |
| Mongolia - 0.2% | |||
| Mongolian People's Republic: | |||
| 4.125% 1/5/18 (Reg. S) | 200,000 | 192,000 | |
| 5.125% 12/5/22 (Reg. S) | 200,000 | 176,512 | |
| TOTAL MONGOLIA | 368,512 | ||
| Netherlands - 0.1% | |||
| Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S) | 187,500 | 187,337 | |
| Oman - 0.3% | |||
| Sultanate of Oman 4.75% 6/15/26 (d) | 400,000 | 403,000 | |
| Pakistan - 0.1% | |||
| Islamic Republic of Pakistan 7.25% 4/15/19 (d) | 200,000 | 211,999 | |
| Qatar - 0.3% | |||
| State of Qatar 9.75% 6/15/30 (Reg. S) | 275,000 | 449,969 | |
| Russia - 0.8% | |||
| Ministry of Finance Russian Federation 4.75% 5/27/26 (d) | 200,000 | 211,676 | |
| Russian Federation: | |||
| 5.625% 4/4/42 (d) | 200,000 | 220,720 | |
| 12.75% 6/24/28 (Reg. S) | 425,000 | 743,478 | |
| TOTAL RUSSIA | 1,175,874 | ||
| Rwanda - 0.3% | |||
| Republic of Rwanda 6.625% 5/2/23 (d) | 425,000 | 425,072 | |
| Saudi Arabia - 0.8% | |||
| Saudi Arabia Kingdom of: | |||
| 2.375% 10/26/21 (d) | 415,000 | 413,963 | |
| 4.5% 10/26/46 (d) | 760,000 | 747,650 | |
| TOTAL SAUDI ARABIA | 1,161,613 | ||
| Senegal - 0.1% | |||
| Republic of Senegal 8.75% 5/13/21 (d) | 200,000 | 225,808 | |
| South Africa - 0.1% | |||
| South African Republic 5.875% 9/16/25 | 200,000 | 224,376 | |
| Sri Lanka - 0.1% | |||
| Democratic Socialist Republic of Sri Lanka 5.125% 4/11/19 (d) | 200,000 | 202,634 | |
| Suriname - 0.3% | |||
| Republic of Suriname 9.25% 10/26/26 (d) | 500,000 | 522,570 | |
| Tanzania - 0.1% | |||
| United Republic of Tanzania 7.2501% 3/9/20 (i) | 155,556 | 162,036 | |
| Turkey - 1.1% | |||
| Turkish Republic: | |||
| 4.875% 10/9/26 | 400,000 | 398,800 | |
| 6.25% 9/26/22 | 400,000 | 435,115 | |
| 6.875% 3/17/36 | 250,000 | 284,225 | |
| 7% 6/5/20 | 250,000 | 274,781 | |
| 7.375% 2/5/25 | 100,000 | 117,128 | |
| 11.875% 1/15/30 | 165,000 | 268,551 | |
| TOTAL TURKEY | 1,778,600 | ||
| Ukraine - 0.7% | |||
| Ukraine Government: | |||
| 0% 5/31/40 (d)(i) | 430,000 | 135,910 | |
| 7.75% 9/1/19 (d) | 700,000 | 697,900 | |
| 7.75% 9/1/20 (d) | 200,000 | 198,210 | |
| TOTAL UKRAINE | 1,032,020 | ||
| United States of America - 0.2% | |||
| U.S. Treasury Bills, yield at date of purchase 0.26% to 0.33% 12/29/16 to 1/19/17 (j) | 310,000 | 309,850 | |
| Venezuela - 0.6% | |||
| Venezuelan Republic: | |||
| 7% 3/31/38 | 650,000 | 272,025 | |
| 9% 5/7/23 (Reg. S) | 300,000 | 137,700 | |
| 9.25% 9/15/27 | 650,000 | 325,650 | |
| 12.75% 8/23/22 | 325,000 | 188,013 | |
| TOTAL VENEZUELA | 923,388 | ||
| Vietnam - 0.2% | |||
| Vietnamese Socialist Republic 4.8% 11/19/24 (d) | 300,000 | 317,226 | |
| Zambia - 0.3% | |||
| Republic of Zambia 8.97% 7/30/27 (d) | 550,000 | 539,242 | |
| TOTAL GOVERNMENT OBLIGATIONS | |||
| (Cost $26,000,847) | 26,254,192 | ||
| Preferred Securities - 0.1% | |||
| Colombia - 0.1% | |||
| Colombia Telecomunicacines SA 8.5% (Cost $90,831)(d)(g)(i) | 100,000 | 89,351 | |
| Shares | Value | ||
| Money Market Funds - 8.7% | |||
| Fidelity Cash Central Fund, 0.41% (k) | 13,281,356 | 13,285,341 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (a)(k) | 102,965 | 102,985 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $13,385,612) | 13,388,326 | ||
| TOTAL INVESTMENT PORTFOLIO - 99.8% | |||
| (Cost $144,649,341) | 154,071,577 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.2% | 294,649 | ||
| NET ASSETS - 100% | $154,366,226 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||
| Equity Index Contracts | |||
| 139 ICE E-mini MSCI Emerging Markets Index Contracts (United States) | Dec. 2016 | 6,279,325 | $14,320 |
The face value of futures purchased as a percentage of Net Assets is 4.1%
Currency Abbreviations
MXN – Mexican peso
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Investment made with cash collateral received from securities on loan.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) 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 $23,787,291 or 15.4% of net assets.
(e) Amount is stated in United States dollars unless otherwise noted.
(f) Non-income producing - Security is in default.
(g) Security is perpetual in nature with no stated maturity date.
(h) 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.
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(j) 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 $309,850.
(k) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $20,813 |
| Fidelity Securities Lending Cash Central Fund | 552 |
| Total | $21,365 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $12,844,666 | $12,658,708 | $185,958 | $-- |
| Consumer Staples | 8,126,805 | 8,126,805 | -- | -- |
| Energy | 7,929,296 | 6,405,134 | 1,510,770 | 13,392 |
| Financials | 22,693,716 | 18,142,922 | 4,550,794 | -- |
| Health Care | 2,534,860 | 2,534,860 | -- | -- |
| Industrials | 5,648,943 | 5,648,943 | -- | -- |
| Information Technology | 22,602,647 | 14,549,950 | 8,052,697 | -- |
| Materials | 6,078,478 | 5,998,654 | 79,824 | -- |
| Real Estate | 2,584,659 | 2,584,659 | -- | -- |
| Telecommunication Services | 5,180,922 | 4,453,833 | 727,089 | -- |
| Utilities | 2,927,969 | 2,524,692 | 403,277 | -- |
| Corporate Bonds | 15,186,747 | -- | 15,186,747 | -- |
| Government Obligations | 26,254,192 | -- | 26,254,192 | -- |
| Preferred Securities | 89,351 | -- | 89,351 | -- |
| Money Market Funds | 13,388,326 | 13,388,326 | -- | -- |
| Total Investments in Securities: | $154,071,577 | $97,017,486 | $57,040,699 | $13,392 |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $14,320 | $14,320 | $-- | $-- |
| Total Assets | $14,320 | $14,320 | $-- | $-- |
| Total Derivative Instruments: | $14,320 | $14,320 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $8,620,896 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $14,320 | $0 |
| Total Equity Risk | 14,320 | 0 |
| Total Value of Derivatives | $14,320 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
| AAA,AA,A | 1.4% |
| BBB | 4.6% |
| BB | 6.2% |
| B | 10.1% |
| CCC,CC,C | 3.0% |
| D | 0.2% |
| Not Rated | 1.2% |
| Equities | 64.2% |
| Short-Term Investments and Net Other Assets | 9.1% |
| 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.
Fidelity® Total Emerging Markets Fund
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $98,796) — See accompanying schedule: Unaffiliated issuers (cost $131,263,729) | $140,683,251 | |
| Fidelity Central Funds (cost $13,385,612) | 13,388,326 | |
| Total Investments (cost $144,649,341) | $154,071,577 | |
| Cash | 504,107 | |
| Foreign currency held at value (cost $26,075) | 26,123 | |
| Receivable for investments sold | 333,849 | |
| Receivable for fund shares sold | 1,817,689 | |
| Dividends receivable | 37,091 | |
| Interest receivable | 761,035 | |
| Distributions receivable from Fidelity Central Funds | 6,004 | |
| Receivable for daily variation margin for derivative instruments | 33,519 | |
| Prepaid expenses | 228 | |
| Receivable from investment adviser for expense reductions | 38,554 | |
| Other receivables | 33,552 | |
| Total assets | 157,663,328 | |
| Liabilities | ||
| Payable for investments purchased | $2,787,876 | |
| Payable for fund shares redeemed | 74,822 | |
| Accrued management fee | 96,197 | |
| Distribution and service plan fees payable | 12,809 | |
| Other affiliated payables | 32,703 | |
| Other payables and accrued expenses | 189,710 | |
| Collateral on securities loaned, at value | 102,985 | |
| Total liabilities | 3,297,102 | |
| Net Assets | $154,366,226 | |
| Net Assets consist of: | ||
| Paid in capital | $146,684,131 | |
| Undistributed net investment income | 1,743,575 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (3,431,665) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 9,370,185 | |
| Net Assets | $154,366,226 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($15,206,353 ÷ 1,342,253 shares) | $11.33 | |
| Maximum offering price per share (100/94.25 of $11.33) | $12.02 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($3,018,688 ÷ 266,492 shares) | $11.33 | |
| Maximum offering price per share (100/96.50 of $11.33) | $11.74 | |
| Class C: | ||
| Net Asset Value and offering price per share ($10,710,117 ÷ 951,755 shares)(a) | $11.25 | |
| Total Emerging Markets: | ||
| Net Asset Value, offering price and redemption price per share ($104,332,435 ÷ 9,199,032 shares) | $11.34 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($21,098,633 ÷ 1,862,005 shares) | $11.33 |
(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.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $1,314,668 | |
| Interest | 2,261,629 | |
| Income from Fidelity Central Funds | 21,365 | |
| Income before foreign taxes withheld | 3,597,662 | |
| Less foreign taxes withheld | (137,409) | |
| Total income | 3,460,253 | |
| Expenses | ||
| Management fee | $668,667 | |
| Transfer agent fees | 221,380 | |
| Distribution and service plan fees | 117,665 | |
| Accounting and security lending fees | 43,397 | |
| Custodian fees and expenses | 243,159 | |
| Independent trustees' fees and expenses | 330 | |
| Registration fees | 85,018 | |
| Audit | 99,650 | |
| Legal | 194 | |
| Miscellaneous | 665 | |
| Total expenses before reductions | 1,480,125 | |
| Expense reductions | (190,766) | 1,289,359 |
| Net investment income (loss) | 2,170,894 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (1,668,444) | |
| Fidelity Central Funds | 64 | |
| Foreign currency transactions | 30,414 | |
| Futures contracts | (113,130) | |
| Total net realized gain (loss) | (1,751,096) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $60,387) | 9,517,042 | |
| Assets and liabilities in foreign currencies | (824) | |
| Futures contracts | (7,798) | |
| Total change in net unrealized appreciation (depreciation) | 9,508,420 | |
| Net gain (loss) | 7,757,324 | |
| Net increase (decrease) in net assets resulting from operations | $9,928,218 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $2,170,894 | $1,845,806 |
| Net realized gain (loss) | (1,751,096) | (1,339,969) |
| Change in net unrealized appreciation (depreciation) | 9,508,420 | (7,213,595) |
| Net increase (decrease) in net assets resulting from operations | 9,928,218 | (6,707,758) |
| Distributions to shareholders from net investment income | (1,715,467) | (1,198,750) |
| Distributions to shareholders from net realized gain | – | (136,019) |
| Total distributions | (1,715,467) | (1,334,769) |
| Share transactions - net increase (decrease) | 80,624,262 | (6,024,786) |
| Redemption fees | 36,372 | 16,471 |
| Total increase (decrease) in net assets | 88,873,385 | (14,050,842) |
| Net Assets | ||
| Beginning of period | 65,492,841 | 79,543,683 |
| End of period | $154,366,226 | $65,492,841 |
| Other Information | ||
| Undistributed net investment income end of period | $1,743,575 | $1,546,081 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.35 | $11.56 | $11.37 | $10.86 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .26 | .28 | .18 | .18 | .20 |
| Net realized and unrealized gain (loss) | .96 | (1.30) | .19 | .48 | .68 |
| Total from investment operations | 1.22 | (1.02) | .37 | .66 | .88 |
| Distributions from net investment income | (.24) | (.17) | (.18) | (.15) | (.02) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.24) | (.19) | (.18) | (.16) | (.02) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.33 | $10.35 | $11.56 | $11.37 | $10.86 |
| Total ReturnD,E | 12.13% | (8.92)% | 3.30% | 6.23% | 8.80% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.87% | 1.93% | 1.98% | 1.89% | 1.87% |
| Expenses net of fee waivers, if any | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
| Expenses net of all reductions | 1.64% | 1.64% | 1.65% | 1.62% | 1.62% |
| Net investment income (loss) | 2.47% | 2.58% | 1.61% | 1.61% | 1.92% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $15,206 | $10,164 | $13,627 | $18,837 | $7,675 |
| Portfolio turnover rateH | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.33 | $11.54 | $11.34 | $10.84 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .23 | .25 | .15 | .15 | .17 |
| Net realized and unrealized gain (loss) | .97 | (1.30) | .19 | .48 | .68 |
| Total from investment operations | 1.20 | (1.05) | .34 | .63 | .85 |
| Distributions from net investment income | (.20) | (.14) | (.14) | (.12) | (.01) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.20) | (.16) | (.14) | (.14)C | (.01) |
| Redemption fees added to paid in capitalB | –D | –D | –D | .01 | –D |
| Net asset value, end of period | $11.33 | $10.33 | $11.54 | $11.34 | $10.84 |
| Total ReturnE,F | 11.92% | (9.18)% | 3.04% | 5.93% | 8.56% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.22% | 2.27% | 2.32% | 2.13% | 2.10% |
| Expenses net of fee waivers, if any | 1.90% | 1.90% | 1.90% | 1.90% | 1.90% |
| Expenses net of all reductions | 1.90% | 1.89% | 1.90% | 1.88% | 1.87% |
| Net investment income (loss) | 2.22% | 2.33% | 1.36% | 1.36% | 1.67% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $3,019 | $3,331 | $5,277 | $5,967 | $5,823 |
| Portfolio turnover rateI | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C 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.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.25 | $11.47 | $11.29 | $10.80 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .18 | .20 | .10 | .09 | .12 |
| Net realized and unrealized gain (loss) | .97 | (1.30) | .19 | .47 | .69 |
| Total from investment operations | 1.15 | (1.10) | .29 | .56 | .81 |
| Distributions from net investment income | (.15) | (.10) | (.11) | (.07) | (.01) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.15) | (.12) | (.11) | (.08) | (.01) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.25 | $10.25 | $11.47 | $11.29 | $10.80 |
| Total ReturnD,E | 11.36% | (9.68)% | 2.56% | 5.31% | 8.07% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 2.62% | 2.68% | 2.72% | 2.65% | 2.63% |
| Expenses net of fee waivers, if any | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% |
| Expenses net of all reductions | 2.39% | 2.39% | 2.40% | 2.37% | 2.37% |
| Net investment income (loss) | 1.72% | 1.83% | .86% | .86% | 1.17% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $10,710 | $7,736 | $10,104 | $7,436 | $5,824 |
| Portfolio turnover rateH | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.38 | $11.60 | $11.40 | $10.89 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .28 | .31 | .21 | .21 | .22 |
| Net realized and unrealized gain (loss) | .97 | (1.31) | .19 | .47 | .69 |
| Total from investment operations | 1.25 | (1.00) | .40 | .68 | .91 |
| Distributions from net investment income | (.29) | (.20) | (.20) | (.17) | (.02) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.29) | (.22) | (.20) | (.18) | (.02) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.34 | $10.38 | $11.60 | $11.40 | $10.89 |
| Total ReturnD | 12.44% | (8.74)% | 3.56% | 6.44% | 9.15% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.62% | 1.72% | 1.73% | 1.56% | 1.60% |
| Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
| Expenses net of all reductions | 1.39% | 1.39% | 1.40% | 1.38% | 1.38% |
| Net investment income (loss) | 2.72% | 2.83% | 1.86% | 1.85% | 2.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $104,332 | $37,918 | $45,763 | $49,959 | $81,416 |
| Portfolio turnover rateG | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.37 | $11.59 | $11.40 | $10.89 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .29 | .31 | .21 | .20 | .22 |
| Net realized and unrealized gain (loss) | .96 | (1.31) | .18 | .48 | .69 |
| Total from investment operations | 1.25 | (1.00) | .39 | .68 | .91 |
| Distributions from net investment income | (.29) | (.20) | (.20) | (.17) | (.02) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.29) | (.22) | (.20) | (.18) | (.02) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.33 | $10.37 | $11.59 | $11.40 | $10.89 |
| Total ReturnD | 12.48% | (8.74)% | 3.51% | 6.44% | 9.15% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.54% | 1.58% | 1.71% | 1.63% | 1.62% |
| Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
| Expenses net of all reductions | 1.39% | 1.39% | 1.40% | 1.37% | 1.37% |
| Net investment income (loss) | 2.72% | 2.83% | 1.86% | 1.86% | 2.17% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $21,099 | $6,343 | $4,773 | $5,354 | $2,287 |
| Portfolio turnover rateG | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
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 Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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 .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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)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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, foreign government and government agency obligations, preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. 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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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, futures contracts, certain foreign taxes, market discount, passive foreign investment companies (PFIC), defaulted bonds, 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 | $13,953,973 |
| Gross unrealized depreciation | (5,165,884) |
| Net unrealized appreciation (depreciation) on securities | $8,788,089 |
| Tax Cost | $145,283,488 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $1,519,860 |
| Capital loss carryforward | $(2,559,540) |
| Net unrealized appreciation (depreciation) on securities and other investments | $8,784,980 |
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 fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(2,076,801) |
| Long-term | (482,739) |
| Total capital loss carryforward | $(2,559,540) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $1,715,467 | $ 1,198,749 |
| Long-term Capital Gains | – | 136,020 |
| Total | $1,715,467 | $ 1,334,769 |
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. 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.
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. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.
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.
During the period the Fund recognized net realized gain (loss) of $(113,130) and a change in net unrealized appreciation (depreciation) of $(7,798) 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 $115,192,127 and $45,771,782, 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 annual 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $25,102 | $1,921 |
| Class T | .25% | .25% | 13,996 | 907 |
| Class C | .75% | .25% | 78,567 | 22,248 |
| $117,665 | $25,076 |
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 are1.00% 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 by FDC |
|
| Class A | $8,417 |
| Class T | 2,161 |
| Class C(a) | 513 |
| $11,091 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $25,414 | .25 |
| Class T | 9,517 | .34 |
| Class C | 19,923 | .25 |
| Total Emerging Markets | 150,558 | .27 |
| Class I | 15,968 | .19 |
| $221,380 |
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 $917 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
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 $206 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $552. During the period, there were no securities loaned to FCM.
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, 2017. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.65% | $22,366 |
| Class T | 1.90% | 8,998 |
| Class C | 2.40% | 17,807 |
| Total Emerging Markets | 1.40% | 126,126 |
| Class I | 1.40% | 12,433 |
| $187,730 |
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 $2,027 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $542.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $467.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $214,855 | $211,944 |
| Class T | 63,597 | 63,689 |
| Class C | 107,081 | 88,937 |
| Total Emerging Markets | 1,155,874 | 751,293 |
| Class I | 174,060 | 82,887 |
| Total | $1,715,467 | $1,198,750 |
| From net realized gain | ||
| Class A | $– | $24,934 |
| Class T | – | 9,098 |
| Class C | – | 18,150 |
| Total Emerging Markets | – | 75,507 |
| Class I | – | 8,330 |
| Total | $– | $136,019 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 982,236 | 251,231 | $10,454,988 | $2,772,246 |
| Reinvestment of distributions | 21,375 | 21,174 | 212,465 | 232,918 |
| Shares redeemed | (643,855) | (469,131) | (6,609,703) | (4,963,727) |
| Net increase (decrease) | 359,756 | (196,726) | $4,057,750 | $(1,958,563) |
| Class T | ||||
| Shares sold | 99,943 | 45,171 | $1,053,182 | $491,646 |
| Reinvestment of distributions | 6,356 | 6,566 | 63,302 | 72,226 |
| Shares redeemed | (162,291) | (186,633) | (1,643,320) | (1,964,687) |
| Net increase (decrease) | (55,992) | (134,896) | $(526,836) | $(1,400,815) |
| Class C | ||||
| Shares sold | 381,071 | 198,104 | $4,073,862 | $2,115,228 |
| Reinvestment of distributions | 10,753 | 9,691 | 106,882 | 106,316 |
| Shares redeemed | (194,422) | (334,580) | (1,922,472) | (3,520,139) |
| Net increase (decrease) | 197,402 | (126,785) | $2,258,272 | $(1,298,595) |
| Total Emerging Markets | ||||
| Shares sold | 7,221,843 | 1,772,167 | $77,958,709 | $18,534,579 |
| Reinvestment of distributions | 112,410 | 70,595 | 1,116,229 | 777,256 |
| Shares redeemed | (1,787,997) | (2,136,425) | (18,222,997) | (22,904,245) |
| Net increase (decrease) | 5,546,256 | (293,663) | $60,851,941 | $(3,592,410) |
| Class I | ||||
| Shares sold | 1,936,878 | 421,240 | $21,178,679 | $4,563,340 |
| Reinvestment of distributions | 14,612 | 8,237 | 144,954 | 90,609 |
| Shares redeemed | (700,942) | (229,844) | (7,340,498) | (2,428,352) |
| Net increase (decrease) | 1,250,548 | 199,633 | $13,983,135 | $2,225,597 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and the Shareholders of Fidelity Total Emerging Markets Fund and Fidelity Emerging Markets Discovery Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Total Emerging Markets Fund and Fidelity Emerging Markets Discovery Fund (each a fund of Fidelity Investment Trust) at October 31, 2016, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund of Fidelity Investment Trust's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 19, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds' Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of a 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 Funds 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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Fidelity Emerging Markets Discovery Fund | ||||
| Class A | 1.70% | |||
| Actual | $1,000.00 | $1,109.40 | $9.01 | |
| Hypothetical-C | $1,000.00 | $1,016.59 | $8.62 | |
| Class T | 1.95% | |||
| Actual | $1,000.00 | $1,107.10 | $10.33 | |
| Hypothetical-C | $1,000.00 | $1,015.33 | $9.88 | |
| Class C | 2.45% | |||
| Actual | $1,000.00 | $1,104.20 | $12.96 | |
| Hypothetical-C | $1,000.00 | $1,012.82 | $12.40 | |
| Emerging Markets Discovery | 1.45% | |||
| Actual | $1,000.00 | $1,109.80 | $7.69 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.35 | |
| Class I | 1.45% | |||
| Actual | $1,000.00 | $1,110.40 | $7.69 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.35 | |
| Fidelity Total Emerging Markets Fund | ||||
| Class A | 1.65% | |||
| Actual | $1,000.00 | $1,101.10 | $8.71 | |
| Hypothetical-C | $1,000.00 | $1,016.84 | $8.36 | |
| Class T | 1.90% | |||
| Actual | $1,000.00 | $1,100.00 | $10.03 | |
| Hypothetical-C | $1,000.00 | $1,015.58 | $9.63 | |
| Class C | 2.40% | |||
| Actual | $1,000.00 | $1,096.50 | $12.65 | |
| Hypothetical-C | $1,000.00 | $1,013.07 | $12.14 | |
| Total Emerging Markets | 1.40% | |||
| Actual | $1,000.00 | $1,102.00 | $7.40 | |
| Hypothetical-C | $1,000.00 | $1,018.10 | $7.10 | |
| Class I | 1.40% | |||
| Actual | $1,000.00 | $1,102.10 | $7.40 | |
| Hypothetical-C | $1,000.00 | $1,018.10 | $7.10 | |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period).
C 5% return per year before expenses
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 Emerging Markets Discovery Fund | ||||
| Class A | 12/19/16 | 12/16/16 | $0.060 | $0.064 |
| Class T | 12/19/16 | 12/16/16 | $0.039 | $0.064 |
| Class C | 12/19/16 | 12/16/16 | $0.000 | $0.060 |
| Emerging Markets Discovery | 12/19/16 | 12/16/16 | $0.086 | $0.064 |
| Class I | 12/19/16 | 12/16/16 | $0.096 | $0.064 |
| Fidelity Total Emerging Markets Fund | ||||
| Class A | 12/19/16 | 12/16/16 | $0.120 | $0.009 |
| Class T | 12/19/16 | 12/16/16 | $0.086 | $0.009 |
| Class C | 12/19/16 | 12/16/16 | $0.056 | $0.009 |
| Total Emerging Markets | 12/19/16 | 12/16/16 | $0.135 | $0.009 |
| Class I | 12/19/16 | 12/16/16 | $0.137 | $0.009 |
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.
| Class A | Class T | Class C | Retail Class | Class I | |
| Fidelity Emerging Markets Discovery Fund | |||||
| December, 2015 | 100% | 100% | – | 96% | 95% |
| Fidelity Total Emerging Markets Fund | |||||
| December, 2015 | 37% | 43% | 58% | 31% | 31% |
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 | |
| Fidelity Emerging Markets Discovery Fund | |||
| Class A | 12/07/15 | $0.0976 | $0.0436 |
| Class T | 12/07/15 | $0.0666 | $0.0436 |
| Class C | 12/07/15 | $0.0000 | $0.0000 |
| Emerging Markets Discovery | 12/07/15 | $0.1286 | $0.0436 |
| Class I | 12/07/15 | $0.1306 | $0.0436 |
| Fidelity Total Emerging Markets Fund | |||
| Class A | 12/07/15 | $0.2583 | $0.0163 |
| Class T | 12/07/15 | $0.2193 | $0.0163 |
| Class C | 12/07/15 | $0.1613 | $0.0163 |
| Total Emerging Markets | 12/07/15 | $0.3063 | $0.0163 |
| Class I | 12/07/15 | $0.3093 | $0.0163 |
The funds will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Emerging Markets Discovery Fund
Fidelity Total Emerging Markets Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the funds, including the backgrounds of investment personnel of Fidelity, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there were portfolio management changes for Fidelity Emerging Markets Discovery Fund in June 2014 and for Fidelity Total Emerging Markets Fund in September 2014 and October 2015.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for each fund and an appropriate benchmark index and, in the case of Fidelity Emerging Markets Discovery Fund, peer group for the most recent one- and three-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. For Fidelity Total Emerging Markets Fund, a peer group is not shown below because the fund does not generally utilize a peer group for performance comparison purposes.Fidelity Emerging Markets Discovery Fund
Fidelity Total Emerging Markets Fund
Fidelity Emerging Markets Discovery Fund
Fidelity Total Emerging Markets Fund
EMD-TEK-ANN-1216
1.931237.104
|
Fidelity Advisor® International Discovery Fund - Class A, Class T, Class C, Class I and Class Z Annual Report October 31, 2016 Class A, Class T, Class C, Class I and Class Z are classes of Fidelity® International Discovery Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (10.30)% | 4.86% | 1.44% |
| Class T (incl. 3.50% sales charge) | (8.40)% | 5.10% | 1.41% |
| Class C (incl. contingent deferred sales charge) | (6.51)% | 5.31% | 1.26% |
| Class I | (4.52)% | 6.47% | 2.38% |
| Class Z | (4.36)% | 6.57% | 2.43% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on August 13, 2013. Returns prior to August 13, 2013, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® International Discovery Fund - Class A on October 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Index performed over the same period.
| Period Ending Values | ||
|
| $11,540 | Fidelity Advisor® International Discovery Fund - Class A |
|
| $11,465 | MSCI EAFE Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager William Kennedy: For the fiscal year, the fund’s share classes trailed the MSCI EAFE Index. Not being well-positioned for the U.K.’s vote to exit the European Union and underexposure to some of the index's top-performing materials stocks cost the fund the most ground versus the benchmark. Individual detractors included a small out-of-benchmark position in U.K. bank Shawbrook Group, which sank due to uncertainty around Brexit. An investment in U.K. retailer Next hurt, as competitors caught up to the company’s lead in online retail. We eliminated Next and Shawbrook from the portfolio before period end. Shares of CMC Markets, a U.K. online trading company, fell as muted market volatility post-Brexit dampened trading activity. By contrast, security selection in consumer staples and an overweighting in information technology's software & services group aided relative performance, as did non-benchmark exposure to both emerging markets and the U.S. and stock picks in Japan. Top contributors included Japanese drug store chain Tsuruha Holdings, which benefited from expanding its offerings and making some strategic acquisitions. Elsewhere, shares of Switzerland-based Partners Group Holding, a private-markets investment management company, rose as its breadth of investment alternatives helped attract new assets in a low and negative interest rate environment.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 18.7% | |
| United Kingdom | 13.2% | |
| France | 9.3% | |
| Germany | 8.2% | |
| Netherlands | 4.8% | |
| United States of America* | 4.5% | |
| Switzerland | 4.2% | |
| Hong Kong | 3.6% | |
| Sweden | 3.5% | |
| Other | 30.0% | |
* 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 April 30, 2016 | ||
| Japan | 17.3% | |
| United Kingdom | 14.5% | |
| France | 9.6% | |
| Germany | 8.0% | |
| United States of America* | 5.8% | |
| Switzerland | 4.3% | |
| Sweden | 4.1% | |
| Hong Kong | 3.3% | |
| Netherlands | 3.3% | |
| Other | 29.8% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks and Equity Futures | 98.8 | 99.1 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.2 | 0.9 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Total SA (France, Oil, Gas & Consumable Fuels) | 2.1 | 2.2 |
| SAP AG (Germany, Software) | 1.7 | 1.1 |
| Unilever NV (Certificaten Van Aandelen) (Bearer) (Netherlands, Personal Products) | 1.6 | 1.7 |
| AIA Group Ltd. (Hong Kong, Insurance) | 1.6 | 1.5 |
| Techtronic Industries Co. Ltd. (Hong Kong, Household Durables) | 1.5 | 1.4 |
| Statoil ASA (Norway, Oil, Gas & Consumable Fuels) | 1.5 | 1.6 |
| KDDI Corp. (Japan, Wireless Telecommunication Services) | 1.4 | 1.4 |
| VINCI SA (France, Construction & Engineering) | 1.4 | 1.4 |
| Partners Group Holding AG (Switzerland, Capital Markets) | 1.3 | 1.0 |
| ORIX Corp. (Japan, Diversified Financial Services) | 1.3 | 1.4 |
| 15.4 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 20.8 | 21.6 |
| Industrials | 14.6 | 10.7 |
| Consumer Discretionary | 13.8 | 15.3 |
| Consumer Staples | 12.9 | 13.2 |
| Information Technology | 11.7 | 10.0 |
| Health Care | 8.2 | 12.5 |
| Materials | 5.4 | 3.6 |
| Energy | 4.7 | 5.0 |
| Telecommunication Services | 2.7 | 4.8 |
| Real Estate | 1.9 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.6% | |||
| Shares | Value (000s) | ||
| Australia - 2.4% | |||
| Altium Ltd. | 1,569,213 | $9,359 | |
| Australia & New Zealand Banking Group Ltd. | 2,793,681 | 59,186 | |
| Bapcor Ltd. | 7,641,696 | 29,821 | |
| Magellan Financial Group Ltd. | 1,204,177 | 19,502 | |
| Ramsay Health Care Ltd. | 1,104,392 | 61,631 | |
| Spark Infrastructure Group unit | 27,415,377 | 46,298 | |
| TOTAL AUSTRALIA | 225,797 | ||
| Austria - 0.8% | |||
| Erste Group Bank AG | 1,309,400 | 41,124 | |
| Wienerberger AG | 2,154,500 | 34,448 | |
| TOTAL AUSTRIA | 75,572 | ||
| Bailiwick of Jersey - 1.6% | |||
| Glencore Xstrata PLC (a) | 8,788,486 | 26,893 | |
| Integrated Diagnostics Holdings PLC | 2,252,058 | 6,193 | |
| Randgold Resources Ltd. sponsored ADR (b) | 189,614 | 16,824 | |
| Regus PLC | 9,503,288 | 28,952 | |
| Shire PLC | 747,500 | 42,206 | |
| Wolseley PLC | 514,260 | 26,758 | |
| TOTAL BAILIWICK OF JERSEY | 147,826 | ||
| Belgium - 1.9% | |||
| Anheuser-Busch InBev SA NV | 815,927 | 93,644 | |
| KBC Groep NV | 1,421,570 | 86,625 | |
| TOTAL BELGIUM | 180,269 | ||
| Canada - 2.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 746,800 | 37,515 | |
| Cenovus Energy, Inc. | 2,715,700 | 39,178 | |
| Constellation Software, Inc. | 104,300 | 48,861 | |
| Franco-Nevada Corp. | 227,700 | 14,905 | |
| PrairieSky Royalty Ltd. (b) | 1,710,573 | 37,201 | |
| Suncor Energy, Inc. | 676,200 | 20,292 | |
| TOTAL CANADA | 197,952 | ||
| Cayman Islands - 1.6% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 439,100 | 44,652 | |
| Ctrip.com International Ltd. ADR (a) | 720,000 | 31,788 | |
| New Oriental Education & Technology Group, Inc. sponsored ADR | 1,371,700 | 68,763 | |
| TOTAL CAYMAN ISLANDS | 145,203 | ||
| China - 0.3% | |||
| Kweichow Moutai Co. Ltd. (A Shares) | 642,182 | 30,134 | |
| Cyprus - 0.0% | |||
| SPDI Secure Property Development & Investment PLC (a) | 517,230 | 101 | |
| Denmark - 1.2% | |||
| DONG Energy A/S | 750,800 | 29,774 | |
| Nets A/S (c) | 1,621,800 | 30,972 | |
| Novo Nordisk A/S Series B | 1,467,745 | 52,289 | |
| TOTAL DENMARK | 113,035 | ||
| Finland - 0.5% | |||
| Sampo Oyj (A Shares) | 1,003,900 | 45,993 | |
| France - 9.3% | |||
| ALTEN | 608,659 | 43,504 | |
| Altran Technologies SA | 2,307,200 | 32,925 | |
| Amundi SA | 516,400 | 25,308 | |
| Atos Origin SA | 257,190 | 26,714 | |
| AXA SA | 3,036,800 | 68,517 | |
| BNP Paribas SA | 525,700 | 30,493 | |
| Capgemini SA | 653,100 | 54,115 | |
| Cegedim SA (a) | 536,390 | 13,661 | |
| Dassault Aviation SA | 18,200 | 19,839 | |
| Havas SA | 4,753,681 | 38,673 | |
| Maisons du Monde SA | 1,122,200 | 31,660 | |
| Rubis | 255,890 | 23,337 | |
| Societe Generale Series A | 1,426,900 | 55,660 | |
| Sodexo SA | 409,000 | 47,502 | |
| SR Teleperformance SA | 280,800 | 29,675 | |
| Total SA | 4,115,171 | 197,131 | |
| VINCI SA (b) | 1,778,000 | 128,780 | |
| TOTAL FRANCE | 867,494 | ||
| Germany - 8.2% | |||
| adidas AG | 260,500 | 42,799 | |
| Axel Springer Verlag AG | 604,902 | 30,290 | |
| Beiersdorf AG | 242,900 | 21,385 | |
| Deutsche Borse AG (a) | 164,581 | 12,806 | |
| Deutsche Post AG | 1,627,604 | 50,439 | |
| Deutsche Telekom AG | 1,900,600 | 31,009 | |
| Fresenius SE & Co. KGaA | 453,600 | 33,481 | |
| GEA Group AG | 850,634 | 32,893 | |
| Henkel AG & Co. KGaA | 352,900 | 38,856 | |
| KION Group AG | 838,449 | 50,641 | |
| LEG Immobilien AG | 204,103 | 17,216 | |
| Nexus AG | 614,500 | 12,635 | |
| ProSiebenSat.1 Media AG | 1,109,900 | 47,835 | |
| Rational AG | 99,005 | 51,353 | |
| SAP AG | 1,810,424 | 159,497 | |
| Scout24 Holding GmbH (a) | 558,300 | 19,250 | |
| Siemens AG | 641,017 | 72,831 | |
| Symrise AG | 617,200 | 42,352 | |
| TOTAL GERMANY | 767,568 | ||
| Hong Kong - 3.6% | |||
| AIA Group Ltd. | 22,819,000 | 144,025 | |
| China Resources Beer Holdings Co. Ltd. | 21,864,000 | 46,516 | |
| Techtronic Industries Co. Ltd. | 37,681,500 | 141,873 | |
| TOTAL HONG KONG | 332,414 | ||
| India - 3.0% | |||
| Bharti Infratel Ltd. | 11,555,099 | 59,875 | |
| Dr Lal Pathlabs Ltd. | 798,016 | 14,093 | |
| HDFC Bank Ltd. | 1,034,409 | 23,115 | |
| HDFC Bank Ltd. sponsored ADR | 1,074,384 | 76,045 | |
| Housing Development Finance Corp. Ltd. | 5,219,689 | 108,900 | |
| TOTAL INDIA | 282,028 | ||
| Indonesia - 0.5% | |||
| PT Bank Central Asia Tbk | 16,688,600 | 19,857 | |
| PT Bank Rakyat Indonesia Tbk | 32,624,300 | 30,504 | |
| TOTAL INDONESIA | 50,361 | ||
| Ireland - 2.6% | |||
| Cairn Homes PLC (a) | 17,549,270 | 22,684 | |
| CRH PLC | 2,385,400 | 77,440 | |
| Dalata Hotel Group PLC (a) | 5,126,600 | 22,961 | |
| Green REIT PLC | 9,492,200 | 14,171 | |
| James Hardie Industries PLC CDI | 1,790,532 | 26,737 | |
| Kerry Group PLC Class A | 856,800 | 62,208 | |
| Ryanair Holdings PLC sponsored ADR | 260,966 | 19,596 | |
| TOTAL IRELAND | 245,797 | ||
| Isle of Man - 0.7% | |||
| Paysafe Group PLC (a) | 11,752,725 | 62,289 | |
| Israel - 1.0% | |||
| Frutarom Industries Ltd. | 978,900 | 51,799 | |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,011,100 | 43,214 | |
| TOTAL ISRAEL | 95,013 | ||
| Italy - 0.6% | |||
| De Longhi SpA | 1,469,700 | 34,397 | |
| Intesa Sanpaolo SpA | 5,941,000 | 13,775 | |
| Mediaset SpA | 3,440,200 | 9,834 | |
| TOTAL ITALY | 58,006 | ||
| Japan - 17.7% | |||
| ACOM Co. Ltd. (a) | 3,246,300 | 14,982 | |
| Aozora Bank Ltd. | 9,159,000 | 30,306 | |
| Casio Computer Co. Ltd. (b) | 2,015,200 | 28,171 | |
| Daito Trust Construction Co. Ltd. | 453,300 | 75,968 | |
| Dentsu, Inc. | 1,208,800 | 60,400 | |
| Don Quijote Holdings Co. Ltd. | 1,026,000 | 39,085 | |
| Hoya Corp. | 1,109,300 | 46,384 | |
| Japan Tobacco, Inc. | 2,141,700 | 81,567 | |
| KDDI Corp. | 4,368,100 | 132,760 | |
| Keyence Corp. | 90,460 | 66,471 | |
| LINE Corp. ADR (b) | 47,048 | 1,904 | |
| Misumi Group, Inc. | 3,017,800 | 55,165 | |
| Mitsubishi UFJ Financial Group, Inc. | 14,897,300 | 76,867 | |
| Monex Group, Inc. | 12,156,649 | 27,937 | |
| Morinaga & Co. Ltd. | 344,000 | 16,024 | |
| Nidec Corp. | 324,300 | 31,450 | |
| Nintendo Co. Ltd. | 164,500 | 39,654 | |
| Nippon Telegraph & Telephone Corp. | 875,400 | 38,812 | |
| Nitori Holdings Co. Ltd. | 226,100 | 27,101 | |
| Olympus Corp. | 2,319,700 | 82,949 | |
| ORIX Corp. | 7,795,700 | 123,808 | |
| Rakuten, Inc. | 2,206,000 | 25,506 | |
| Recruit Holdings Co. Ltd. | 1,200,100 | 48,292 | |
| Relo Holdings Corp. | 178,400 | 29,515 | |
| Seven & i Holdings Co. Ltd. | 1,001,400 | 41,853 | |
| Shionogi & Co. Ltd. | 828,600 | 40,912 | |
| SMS Co., Ltd. | 786,600 | 20,559 | |
| Sony Corp. | 3,320,300 | 104,650 | |
| Start Today Co. Ltd. | 2,130,000 | 37,453 | |
| Sundrug Co. Ltd. | 590,500 | 46,567 | |
| Tsuruha Holdings, Inc. | 611,100 | 70,626 | |
| VT Holdings Co. Ltd. | 3,872,500 | 20,864 | |
| Welcia Holdings Co. Ltd. | 1,076,200 | 73,580 | |
| TOTAL JAPAN | 1,658,142 | ||
| Korea (South) - 0.0% | |||
| Samsung Biologics Co. Ltd. (a) | 15,017 | 1,786 | |
| Luxembourg - 1.1% | |||
| Eurofins Scientific SA | 184,739 | 83,938 | |
| Grand City Properties SA | 1,000,215 | 17,573 | |
| TOTAL LUXEMBOURG | 101,511 | ||
| Malta - 0.0% | |||
| Unibet Group PLC unit | 408,700 | 3,606 | |
| Marshall Islands - 0.1% | |||
| Hoegh LNG Partners LP (d) | 715,655 | 12,739 | |
| Netherlands - 4.8% | |||
| Basic-Fit NV | 579,100 | 10,518 | |
| IMCD Group BV | 1,603,400 | 69,358 | |
| ING Groep NV (Certificaten Van Aandelen) | 5,644,700 | 74,098 | |
| Intertrust NV | 1,544,800 | 32,593 | |
| Koninklijke Philips Electronics NV | 1,770,000 | 53,334 | |
| RELX NV | 2,771,838 | 46,740 | |
| Takeaway.com Holding BV (c) | 505,200 | 11,882 | |
| Unilever NV (Certificaten Van Aandelen) (Bearer) (b) | 3,523,200 | 147,665 | |
| Van Lanschot NV unit | 223,700 | 4,590 | |
| TOTAL NETHERLANDS | 450,778 | ||
| New Zealand - 0.9% | |||
| EBOS Group Ltd. | 3,154,998 | 38,467 | |
| Ryman Healthcare Group Ltd. | 6,907,568 | 43,864 | |
| TOTAL NEW ZEALAND | 82,331 | ||
| Norway - 1.5% | |||
| Statoil ASA (b) | 8,457,200 | 138,072 | |
| Philippines - 0.3% | |||
| SM Investments Corp. | 2,042,375 | 28,340 | |
| Romania - 0.2% | |||
| Banca Transilvania SA | 37,524,532 | 21,164 | |
| South Africa - 1.7% | |||
| Aspen Pharmacare Holdings Ltd. | 656,700 | 14,306 | |
| EOH Holdings Ltd. | 2,763,167 | 32,768 | |
| Naspers Ltd. Class N | 665,600 | 111,556 | |
| TOTAL SOUTH AFRICA | 158,630 | ||
| Spain - 3.2% | |||
| Amadeus IT Holding SA Class A | 1,707,300 | 80,590 | |
| Atresmedia Corporacion de Medios de Comunicacion SA | 1,719,200 | 17,702 | |
| CaixaBank SA | 19,118,400 | 57,688 | |
| Grifols SA ADR | 1,152,800 | 16,474 | |
| Hispania Activos Inmobiliarios SA | 1,424,325 | 17,543 | |
| Inditex SA | 2,140,353 | 74,822 | |
| Mediaset Espana Comunicacion SA | 2,836,600 | 31,684 | |
| TOTAL SPAIN | 296,503 | ||
| Sweden - 3.5% | |||
| ASSA ABLOY AB (B Shares) | 3,443,800 | 62,586 | |
| HEXPOL AB (B Shares) | 1,872,700 | 15,395 | |
| Indutrade AB | 1,116,300 | 20,751 | |
| Nordea Bank AB | 5,635,200 | 59,240 | |
| Saab AB (B Shares) | 948,600 | 33,608 | |
| Sandvik AB | 2,242,600 | 25,499 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 2,802,900 | 79,412 | |
| Svenska Handelsbanken AB (A Shares) | 2,567,100 | 34,998 | |
| TOTAL SWEDEN | 331,489 | ||
| Switzerland - 4.2% | |||
| ABB Ltd. (Reg.) | 2,295,470 | 47,357 | |
| Julius Baer Group Ltd. | 919,060 | 37,205 | |
| Kaba Holding AG (B Shares) (Reg.) | 41,400 | 28,763 | |
| Panalpina Welttransport Holding AG | 178,050 | 23,121 | |
| Partners Group Holding AG | 247,326 | 125,219 | |
| Schindler Holding AG (participation certificate) | 175,435 | 32,603 | |
| Syngenta AG (Switzerland) | 132,540 | 53,038 | |
| UBS Group AG | 3,500,790 | 49,529 | |
| TOTAL SWITZERLAND | 396,835 | ||
| Taiwan - 0.0% | |||
| JHL Biotech, Inc. (a) | 1,466,494 | 3,175 | |
| United Kingdom - 13.2% | |||
| BAE Systems PLC | 4,147,100 | 27,478 | |
| BCA Marketplace PLC | 7,762,300 | 17,126 | |
| BHP Billiton PLC | 3,522,108 | 52,962 | |
| Booker Group PLC | 14,197,800 | 31,176 | |
| British American Tobacco PLC: | |||
| (United Kingdom) | 806,500 | 46,223 | |
| sponsored ADR | 211,500 | 24,299 | |
| Bunzl PLC | 1,968,600 | 52,986 | |
| Cineworld Group PLC | 2,055,200 | 13,597 | |
| CMC Markets PLC | 12,077,600 | 28,058 | |
| Compass Group PLC | 1,948,200 | 35,251 | |
| Countryside Properties PLC (a) | 3,312,793 | 9,448 | |
| Dialog Semiconductor PLC (a) | 585,500 | 22,978 | |
| Diploma PLC | 2,312,600 | 26,537 | |
| Domino's Pizza UK & IRL PLC | 3,415,554 | 14,218 | |
| GlaxoSmithKline PLC | 5,155,200 | 101,837 | |
| Howden Joinery Group PLC | 7,187,900 | 32,984 | |
| Imperial Tobacco Group PLC | 1,738,702 | 84,180 | |
| Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. ELS (HSBC Warrant Program) warrants 9/19/19 (a)(c) | 2,466,200 | 25,351 | |
| London Stock Exchange Group PLC | 1,649,436 | 56,731 | |
| Melrose Industries PLC | 35,056,430 | 72,409 | |
| Micro Focus International PLC | 3,845,400 | 100,772 | |
| Moneysupermarket.com Group PLC | 5,210,600 | 16,703 | |
| NCC Group Ltd. | 9,151,300 | 21,226 | |
| Reckitt Benckiser Group PLC | 842,300 | 75,353 | |
| Rex Bionics PLC (a)(d) | 1,297,286 | 357 | |
| Rio Tinto PLC | 1,482,500 | 51,554 | |
| Softcat PLC | 4,890,800 | 19,396 | |
| Spirax-Sarco Engineering PLC | 522,100 | 28,195 | |
| St. James's Place Capital PLC | 2,354,900 | 27,239 | |
| Standard Chartered PLC (United Kingdom) | 9,910,550 | 86,357 | |
| Zoopla Property Group PLC | 8,823,609 | 32,875 | |
| TOTAL UNITED KINGDOM | 1,235,856 | ||
| United States of America - 3.3% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 206,300 | 34,477 | |
| Coty, Inc. Class A | 400,372 | 9,205 | |
| Global Payments, Inc. | 571,800 | 41,467 | |
| Monsanto Co. | 296,000 | 29,828 | |
| MSCI, Inc. | 661,800 | 53,070 | |
| S&P Global, Inc. | 515,600 | 62,826 | |
| Visa, Inc. Class A | 942,300 | 77,749 | |
| TOTAL UNITED STATES OF AMERICA | 308,622 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $7,971,348) | 9,152,431 | ||
| Convertible Preferred Stocks - 0.2% | |||
| Cayman Islands - 0.2% | |||
| China Internet Plus Holdings Ltd. Series A-11 (e) | |||
| (Cost $18,833) | 5,958,244 | 23,003 | |
| Principal Amount (000s) | Value (000s) | ||
| Government Obligations - 0.0% | |||
| United States of America - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 0.27% to 0.33% 11/3/16 to 1/26/17(f) | |||
| (Cost $3,969) | $3,970 | 3,969 | |
| Shares | Value (000s) | ||
| Money Market Funds - 5.6% | |||
| Fidelity Cash Central Fund, 0.41% (g) | 183,263,125 | 183,318 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (g)(h) | 341,525,876 | 341,594 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $524,884) | 524,912 | ||
| TOTAL INVESTMENT PORTFOLIO - 103.4% | |||
| (Cost $8,519,034) | 9,704,315 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.4)% | (322,767) | ||
| NET ASSETS - 100% | $9,381,548 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
| Purchased | |||
| Equity Index Contracts | |||
| 671 TSE TOPIX Index Contracts (Japan) | Dec. 2016 | 89,258 | $3,786 |
The face value of futures purchased as a percentage of Net Assets is 1.0%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $68,205,000 or 0.7% of net assets.
(d) Affiliated company
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $23,003,000 or 0.2% of net assets.
(f) 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 $3,969,000.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| China Internet Plus Holdings Ltd. Series A-11 | 1/26/15 | $18,833 |
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 |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $978 |
| Fidelity Securities Lending Cash Central Fund | 3,986 |
| Total | $4,964 |
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 (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds* | Dividend Income | Value, end of period |
| Hoegh LNG Partners LP | $11,465 | $-- | $-- | $1,127 | $12,739 |
| Rex Bionics PLC | 976 | -- | 4 | -- | 357 |
| Total | $12,441 | $-- | $4 | $1,127 | $13,096 |
* Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,318,523 | $1,064,985 | $230,535 | $23,003 |
| Consumer Staples | 1,192,465 | 1,070,889 | 121,576 | -- |
| Energy | 444,613 | 109,410 | 335,203 | -- |
| Financials | 1,971,291 | 1,458,024 | 513,267 | -- |
| Health Care | 753,852 | 555,734 | 198,118 | -- |
| Industrials | 1,359,313 | 1,048,987 | 310,326 | -- |
| Information Technology | 1,107,250 | 908,099 | 199,151 | -- |
| Materials | 494,175 | 259,181 | 234,994 | -- |
| Real Estate | 172,087 | 172,087 | -- | -- |
| Telecommunication Services | 262,456 | 59,875 | 202,581 | -- |
| Utilities | 99,409 | 99,409 | -- | -- |
| Government Obligations | 3,969 | -- | 3,969 | -- |
| Money Market Funds | 524,912 | 524,912 | -- | -- |
| Total Investments in Securities: | $9,704,315 | $7,331,592 | $2,349,720 | $23,003 |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $3,786 | $3,786 | $-- | $-- |
| Total Assets | $3,786 | $3,786 | $-- | $-- |
| Total Derivative Instruments: | $3,786 | $3,786 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 (000s) |
| Level 1 to Level 2 | $299,696 |
| Level 2 to Level 1 | $1,813,808 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $3,786 | $0 |
| Total Equity Risk | 3,786 | 0 |
| Total Value of Derivatives | $3,786 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | October 31, 2016 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $320,240) — See accompanying schedule: Unaffiliated issuers (cost $7,975,670) | $9,166,307 | |
| Fidelity Central Funds (cost $524,884) | 524,912 | |
| Other affiliated issuers (cost $18,480) | 13,096 | |
| Total Investments (cost $8,519,034) | $9,704,315 | |
| Foreign currency held at value (cost $27,244) | 27,247 | |
| Receivable for investments sold | 26,345 | |
| Receivable for fund shares sold | 3,500 | |
| Dividends receivable | 24,713 | |
| Distributions receivable from Fidelity Central Funds | 113 | |
| Receivable for daily variation margin for derivative instruments | 160 | |
| Prepaid expenses | 26 | |
| Other receivables | 4,319 | |
| Total assets | 9,790,738 | |
| Liabilities | ||
| Payable for investments purchased | $47,907 | |
| Payable for fund shares redeemed | 11,655 | |
| Accrued management fee | 5,770 | |
| Distribution and service plan fees payable | 87 | |
| Other affiliated payables | 1,406 | |
| Other payables and accrued expenses | 774 | |
| Collateral on securities loaned, at value | 341,591 | |
| Total liabilities | 409,190 | |
| Net Assets | $9,381,548 | |
| Net Assets consist of: | ||
| Paid in capital | $8,680,192 | |
| Undistributed net investment income | 142,052 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (627,108) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,186,412 | |
| Net Assets | $9,381,548 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($236,127 ÷ 6,280.6 shares) | $37.60 | |
| Maximum offering price per share (100/94.25 of $37.60) | $39.89 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($34,959 ÷ 936.3 shares) | $37.34 | |
| Maximum offering price per share (100/96.50 of $37.34) | $38.69 | |
| Class C: | ||
| Net Asset Value and offering price per share ($26,091 ÷ 705.9 shares)(a) | $36.96 | |
| International Discovery: | ||
| Net Asset Value, offering price and redemption price per share ($6,421,194 ÷ 169,373.8 shares) | $37.91 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($1,879,921 ÷ 49,660.9 shares) | $37.86 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($745,324 ÷ 19,707.5 shares) | $37.82 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($37,932 ÷ 1,002.5 shares) | $37.84 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended October 31, 2016 | |
| Investment Income | ||
| Dividends (including $1,127 earned from other affiliated issuers) | $238,573 | |
| Special dividends | 37,704 | |
| Interest | 46 | |
| Income from Fidelity Central Funds | 4,964 | |
| Income before foreign taxes withheld | 281,287 | |
| Less foreign taxes withheld | (21,356) | |
| Total income | 259,931 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $67,411 | |
| Performance adjustment | 10,738 | |
| Transfer agent fees | 15,638 | |
| Distribution and service plan fees | 1,148 | |
| Accounting and security lending fees | 1,802 | |
| Custodian fees and expenses | 1,336 | |
| Independent trustees' fees and expenses | 44 | |
| Registration fees | 201 | |
| Audit | 124 | |
| Legal | 33 | |
| Miscellaneous | 85 | |
| Total expenses before reductions | 98,560 | |
| Expense reductions | (875) | 97,685 |
| Net investment income (loss) | 162,246 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (532,206) | |
| Fidelity Central Funds | 31 | |
| Other affiliated issuers | (19) | |
| Foreign currency transactions | 2,961 | |
| Futures contracts | (12,614) | |
| Total net realized gain (loss) | (541,847) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (122,679) | |
| Assets and liabilities in foreign currencies | (2,928) | |
| Futures contracts | (5,417) | |
| Total change in net unrealized appreciation (depreciation) | (131,024) | |
| Net gain (loss) | (672,871) | |
| Net increase (decrease) in net assets resulting from operations | $(510,625) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended October 31, 2016 | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $162,246 | $149,838 |
| Net realized gain (loss) | (541,847) | 245,770 |
| Change in net unrealized appreciation (depreciation) | (131,024) | 655 |
| Net increase (decrease) in net assets resulting from operations | (510,625) | 396,263 |
| Distributions to shareholders from net investment income | (113,434) | (74,589) |
| Distributions to shareholders from net realized gain | (1,362) | – |
| Total distributions | (114,796) | (74,589) |
| Share transactions - net increase (decrease) | (960,274) | (353,147) |
| Redemption fees | 70 | 95 |
| Total increase (decrease) in net assets | (1,585,625) | (31,378) |
| Net Assets | ||
| Beginning of period | 10,967,173 | 10,998,551 |
| End of period | $9,381,548 | $10,967,173 |
| Other Information | ||
| Undistributed net investment income end of period | $142,052 | $108,769 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.78 | $38.70 | $39.49 | $31.66 | $29.43 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .47B | .40C | .53D | .34 | .41 |
| Net realized and unrealized gain (loss) | (2.38) | .79 | (.67) | 7.97 | 2.11 |
| Total from investment operations | (1.91) | 1.19 | (.14) | 8.31 | 2.52 |
| Distributions from net investment income | (.27) | (.11) | (.33) | (.45) | (.29) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.27)E | (.11) | (.65)F | (.48) | (.29) |
| Redemption fees added to paid in capitalA,G | – | – | – | – | – |
| Net asset value, end of period | $37.60 | $39.78 | $38.70 | $39.49 | $31.66 |
| Total ReturnH,I | (4.83)% | 3.09% | (.36)% | 26.59% | 8.70% |
| Ratios to Average Net AssetsJ,K | |||||
| Expenses before reductions | 1.35% | 1.33% | 1.28% | 1.35% | 1.34% |
| Expenses net of fee waivers, if any | 1.35% | 1.33% | 1.28% | 1.35% | 1.34% |
| Expenses net of all reductions | 1.34% | 1.32% | 1.28% | 1.33% | 1.31% |
| Net investment income (loss) | 1.26%B | 1.00%C | 1.35%D | .97% | 1.41% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $236 | $283 | $297 | $347 | $299 |
| Portfolio turnover rateL | 50%M | 60%M | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .88%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .69%.
D Net Investment income per share reflects a large, non-recurring dividend 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 .80%.
E Total distributions of $.27 per share is comprised of distributions from net investment income of $.269 and distributions from net realized gain of $.005 per share.
F Total distributions of $.65 per share is comprised of distributions from net investment income of $.334 and distributions from net realized gain of $.311 per share.
G Amount represents less than $.005 per share.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J 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.
K 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.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.51 | $38.43 | $39.23 | $31.42 | $29.18 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .38B | .30C | .44D | .26 | .34 |
| Net realized and unrealized gain (loss) | (2.37) | .80 | (.68) | 7.92 | 2.09 |
| Total from investment operations | (1.99) | 1.10 | (.24) | 8.18 | 2.43 |
| Distributions from net investment income | (.17) | (.02) | (.25) | (.34) | (.19) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.18) | (.02) | (.56) | (.37) | (.19) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $37.34 | $39.51 | $38.43 | $39.23 | $31.42 |
| Total ReturnF,G | (5.07)% | 2.86% | (.60)% | 26.31% | 8.41% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.58% | 1.57% | 1.51% | 1.59% | 1.59% |
| Expenses net of fee waivers, if any | 1.58% | 1.57% | 1.51% | 1.59% | 1.59% |
| Expenses net of all reductions | 1.57% | 1.56% | 1.51% | 1.57% | 1.56% |
| Net investment income (loss) | 1.02%B | .76%C | 1.11%D | .73% | 1.16% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $35 | $43 | $49 | $53 | $46 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .64%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .45%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.14 | $38.25 | $39.07 | $31.32 | $29.08 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19B | .10C | .23D | .08 | .19 |
| Net realized and unrealized gain (loss) | (2.37) | .79 | (.66) | 7.90 | 2.09 |
| Total from investment operations | (2.18) | .89 | (.43) | 7.98 | 2.28 |
| Distributions from net investment income | – | – | (.08) | (.20) | (.04) |
| Distributions from net realized gain | – | – | (.31) | (.03) | – |
| Total distributions | – | – | (.39) | (.23) | (.04) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $36.96 | $39.14 | $38.25 | $39.07 | $31.32 |
| Total ReturnF,G | (5.57)% | 2.33% | (1.10)% | 25.65% | 7.86% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 2.10% | 2.09% | 2.03% | 2.10% | 2.09% |
| Expenses net of fee waivers, if any | 2.10% | 2.09% | 2.03% | 2.09% | 2.09% |
| Expenses net of all reductions | 2.09% | 2.08% | 2.02% | 2.07% | 2.06% |
| Net investment income (loss) | .50%B | .24%C | .60%D | .23% | .66% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $26 | $32 | $35 | $36 | $30 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .13%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06) %.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .05%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.12 | $39.03 | $39.82 | $31.91 | $29.69 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .61B | .54C | .67D | .47 | .51 |
| Net realized and unrealized gain (loss) | (2.41) | .81 | (.68) | 8.02 | 2.12 |
| Total from investment operations | (1.80) | 1.35 | (.01) | 8.49 | 2.63 |
| Distributions from net investment income | (.41) | (.26) | (.47) | (.55) | (.41) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.41)E | (.26) | (.78) | (.58) | (.41) |
| Redemption fees added to paid in capitalA,F | – | – | – | – | – |
| Net asset value, end of period | $37.91 | $40.12 | $39.03 | $39.82 | $31.91 |
| Total ReturnG | (4.53)% | 3.47% | (.01)% | 27.03% | 9.03% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.00% | .99% | .93% | 1.00% | 1.01% |
| Expenses net of fee waivers, if any | 1.00% | .99% | .93% | 1.00% | 1.01% |
| Expenses net of all reductions | .99% | .98% | .93% | .98% | .98% |
| Net investment income (loss) | 1.61%B | 1.34%C | 1.69%D | 1.32% | 1.73% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $6,421 | $7,209 | $7,464 | $7,800 | $5,965 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.23%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.15%.
E Total distributions of $.41 per share is comprised of distributions from net investment income of $.409 and distributions from net realized gain of $.005 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class K
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.06 | $38.97 | $39.76 | $31.87 | $29.66 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .66B | .59C | .72D | .52 | .57 |
| Net realized and unrealized gain (loss) | (2.39) | .81 | (.67) | 8.01 | 2.11 |
| Total from investment operations | (1.73) | 1.40 | .05 | 8.53 | 2.68 |
| Distributions from net investment income | (.46) | (.31) | (.53) | (.61) | (.47) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.47) | (.31) | (.84) | (.64) | (.47) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $37.86 | $40.06 | $38.97 | $39.76 | $31.87 |
| Total ReturnF | (4.38)% | 3.61% | .13% | 27.23% | 9.24% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | .86% | .86% | .80% | .85% | .83% |
| Expenses net of fee waivers, if any | .86% | .86% | .80% | .85% | .83% |
| Expenses net of all reductions | .85% | .85% | .79% | .83% | .80% |
| Net investment income (loss) | 1.74%B | 1.47%C | 1.83%D | 1.47% | 1.91% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $1,880 | $2,308 | $2,464 | $2,576 | $1,776 |
| Portfolio turnover rateI | 50%J | 60%J | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.16%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.28%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.03 | $38.96 | $39.76 | $31.87 | $29.65 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .61B | .53C | .67D | .47 | .52 |
| Net realized and unrealized gain (loss) | (2.40) | .80 | (.68) | 8.01 | 2.11 |
| Total from investment operations | (1.79) | 1.33 | (.01) | 8.48 | 2.63 |
| Distributions from net investment income | (.42) | (.26) | (.48) | (.56) | (.41) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.42)E | (.26) | (.79) | (.59) | (.41) |
| Redemption fees added to paid in capitalA,F | – | – | – | – | – |
| Net asset value, end of period | $37.82 | $40.03 | $38.96 | $39.76 | $31.87 |
| Total ReturnG | (4.52)% | 3.44% | (.01)% | 27.03% | 9.07% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.00% | 1.00% | .93% | 1.00% | 1.00% |
| Expenses net of fee waivers, if any | 1.00% | .99% | .93% | 1.00% | 1.00% |
| Expenses net of all reductions | .99% | .98% | .93% | .97% | .97% |
| Net investment income (loss) | 1.60%B | 1.33%C | 1.69%D | 1.33% | 1.75% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $745 | $1,061 | $650 | $476 | $294 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.22%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.14%.
E Total distributions of $.42 per share is comprised of distributions from net investment income of $.418 and distributions from net realized gain of $.005 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class Z
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $40.03 | $38.96 | $39.77 | $37.22 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .66C | .59D | .72E | .07 |
| Net realized and unrealized gain (loss) | (2.38) | .80 | (.68) | 2.48 |
| Total from investment operations | (1.72) | 1.39 | .04 | 2.55 |
| Distributions from net investment income | (.46) | (.32) | (.54) | – |
| Distributions from net realized gain | (.01) | – | (.31) | – |
| Total distributions | (.47) | (.32) | (.85) | – |
| Redemption fees added to paid in capitalB,F | – | – | – | – |
| Net asset value, end of period | $37.84 | $40.03 | $38.96 | $39.77 |
| Total ReturnG,H | (4.36)% | 3.58% | .12% | 6.85% |
| Ratios to Average Net AssetsI,J | ||||
| Expenses before reductions | .86% | .86% | .80% | .85%K |
| Expenses net of fee waivers, if any | .86% | .86% | .80% | .85%K |
| Expenses net of all reductions | .85% | .85% | .79% | .83%K |
| Net investment income (loss) | 1.74%C | 1.47%D | 1.83%E | .76%K |
| Supplemental Data | ||||
| Net assets, end of period (in millions) | $38 | $30 | $35 | $– |
| Portfolio turnover rateL | 50%M | 60%M | 57% | 65% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.16%.
E Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.28%.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
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 Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity International Discovery 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, International Discovery, Class K, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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. 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 and swaps 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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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, passive foreign investment companies (PFIC), market discount, certain foreign taxes, redemptions in-kind, 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 | $1,532,643 |
| Gross unrealized depreciation | (373,203) |
| Net unrealized appreciation (depreciation) on securities | $1,159,440 |
| Tax Cost | $8,544,875 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $153,843 |
| Capital loss carryforward | $(612,706) |
| Net unrealized appreciation (depreciation) on securities and other investments | $1,160,571 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(49,104) |
| No expiration | |
| Short-term | (473,137) |
| Long-term | (90,465) |
| Total no expiration | (563,602) |
| Total capital loss carryforward | $(612,706) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $114,796 | $ 74,589 |
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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
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.
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.
During the period the Fund recognized net realized gain (loss) of $(12,614) a change in net unrealized appreciation (depreciation) of $(5,417) 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 and in-kind transactions, aggregated $4,860,976 and $5,449,080, respectively.
Redemptions In-Kind. During the period, 1,487 shares of the Fund held by an unaffiliated entity were redeemed in-kind for investments and cash with a value of $55,670. The net realized gain of $10,064 on investments delivered through the in-kind redemptions is included in the accompanying Statement of Operations. The amount of the redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 4,932 shares of the Fund held by unaffiliated entities were redeemed for investments, including accrued interest, and cash with a value of $197,848. The Fund had a net gain of $41,387 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
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 .424% 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 International Discovery as compared to its benchmark index, the MSCI EAFE Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .78% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $642 | $– |
| Class T | .25% | .25% | 192 | – |
| Class B | .75% | .25% | 11 | 8 |
| Class C | .75% | .25% | 303 | 30 |
| $1,148 | $38 |
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 by FDC |
|
| Class A | $51 |
| Class T | 4 |
| Class B(a) | –(b) |
| Class C(a) | 3 |
| $58 |
(a) 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.
(b) In the amount of less than five hundred dollars.
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, except for Class K and Class Z. FIIOC receives an asset-based fee of Class K's and Class Z'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 Class-Level Average Net Assets |
|
| Class A | $719 | .28 |
| Class T | 103 | .27 |
| Class B | 3 | .28 |
| Class C | 86 | .28 |
| International Discovery | 12,160 | .18 |
| Class K | 981 | .05 |
| Class I | 1,571 | .19 |
| Class Z | 15 | .05 |
| $15,638 |
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 $10 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
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 $26 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $3,986, including $6 from securities loaned to FCM.
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 $797 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $78.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $1,912 | $864 |
| Class T | 184 | 23 |
| International Discovery | 73,519 | 49,040 |
| Class K | 26,239 | 19,835 |
| Class I | 11,205 | 4,544 |
| Class Z | 375 | 283 |
| Total | $113,434 | $74,589 |
| From net realized gain | ||
| Class A | $36 | $– |
| Class T | 5 | – |
| International Discovery | 899 | – |
| Class K | 284 | – |
| Class I | 134 | – |
| Class Z | 4 | – |
| Total | $1,362 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 885 | 1,331 | $33,250 | $53,289 |
| Reinvestment of distributions | 48 | 22 | 1,922 | 843 |
| Shares redeemed | (1,758) | (1,915) | (66,337) | (76,178) |
| Net increase (decrease) | (825) | (562) | $(31,165) | $(22,046) |
| Class T | ||||
| Shares sold | 126 | 178 | $4,736 | $7,105 |
| Reinvestment of distributions | 5 | 1 | 183 | 23 |
| Shares redeemed | (282) | (355) | (10,546) | (13,954) |
| Net increase (decrease) | (151) | (176) | $(5,627) | $(6,826) |
| Class B | ||||
| Shares sold | 1 | 1 | $16 | $53 |
| Shares redeemed | (58) | (64) | (2,118) | (2,536) |
| Net increase (decrease) | (57) | (63) | $(2,102) | $(2,483) |
| Class C | ||||
| Shares sold | 193 | 201 | $7,216 | $7,918 |
| Shares redeemed | (298) | (314) | (11,125) | (12,486) |
| Net increase (decrease) | (105) | (113) | $(3,909) | $(4,568) |
| International Discovery | ||||
| Shares sold | 18,319 | 20,827 | $696,598 | $832,233 |
| Reinvestment of distributions | 1,781 | 1,199 | 70,961 | 46,913 |
| Shares redeemed | (30,424) | (33,573) | (1,154,409) | (1,345,593) |
| Net increase (decrease) | (10,324) | (11,547) | $(386,850) | $(466,447) |
| Class K | ||||
| Shares sold | 12,391 | 15,372 | $466,861 | $613,737 |
| Reinvestment of distributions | 667 | 508 | 26,523 | 19,835 |
| Shares redeemed | (21,012)(a) | (21,494)(b) | (800,081)(a) | (860,632)(b) |
| Net increase (decrease) | (7,954) | (5,614) | $(306,697) | $(227,060) |
| Class I | ||||
| Shares sold | 8,874 | 15,392 | $334,588 | $602,134 |
| Reinvestment of distributions | 52 | 33 | 2,069 | 1,286 |
| Shares redeemed | (15,719) | (5,606) | (569,974) | (221,504) |
| Net increase (decrease) | (6,793) | 9,819 | $(233,317) | $381,916 |
| Class Z | ||||
| Shares sold | 497 | 402 | $18,760 | $16,312 |
| Reinvestment of distributions | 10 | 7 | 379 | 283 |
| Shares redeemed | (256) | (559) | (9,746) | (22,228) |
| Net increase (decrease) | 251 | (150) | $9,393 | $(5,633) |
(a) Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
(b) Amount includes in-kind redemptions (see Note 5: Prior Fiscal Year Redemptions In-Kind).
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.
At the end of the period, Strategic Advisers International Fund was the owner of record of approximately 13% 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 20% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Discovery Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity International Discovery Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity International Discovery Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 13, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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, and (2) ongoing costs, including 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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.32% | |||
| Actual | $1,000.00 | $996.30 | $6.62 | |
| Hypothetical-C | $1,000.00 | $1,018.50 | $6.70 | |
| Class T | 1.55% | |||
| Actual | $1,000.00 | $994.90 | $7.77 | |
| Hypothetical-C | $1,000.00 | $1,017.34 | $7.86 | |
| Class C | 2.07% | |||
| Actual | $1,000.00 | $992.20 | $10.37 | |
| Hypothetical-C | $1,000.00 | $1,014.73 | $10.48 | |
| International Discovery | .97% | |||
| Actual | $1,000.00 | $997.90 | $4.87 | |
| Hypothetical-C | $1,000.00 | $1,020.26 | $4.93 | |
| Class K | .83% | |||
| Actual | $1,000.00 | $998.70 | $4.17 | |
| Hypothetical-C | $1,000.00 | $1,020.96 | $4.22 | |
| Class I | .97% | |||
| Actual | $1,000.00 | $997.90 | $4.87 | |
| Hypothetical-C | $1,000.00 | $1,020.26 | $4.93 | |
| Class Z | .84% | |||
| Actual | $1,000.00 | $998.70 | $4.22 | |
| Hypothetical-C | $1,000.00 | $1,020.91 | $4.27 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity International Discovery 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 International Discovery Fund | ||||
| Class A | 12/12/2016 | 12/09/2016 | $0.470 | $0.049 |
| Class T | 12/12/2016 | 12/09/2016 | $0.369 | $0.049 |
| Class C | 12/12/2016 | 12/09/2016 | $0.134 | $0.049 |
| International Discovery | 12/12/2016 | 12/09/2016 | $0.612 | $0.049 |
| Class K | 12/12/2016 | 12/09/2016 | $0.664 | $0.049 |
| Class I | 12/12/2016 | 12/09/2016 | $0.606 | $0.049 |
| Class Z | 12/12/2016 | 12/09/2016 | $0.668 | $0.049 |
Class A designates 6%; Class T designates 8%; Class C designates 0%; International Discovery designates 4%; Class K designates 3%; Class I designates 4% and Class Z designates 3% of the dividends distributed in during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 100%; Class T designates 100%; Class C designates 0%; International Discovery designates 100%; Class K designates 100%; Class I designates 100%; and Class Z designates 100%; of dividends distributed 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 | |
| Fidelity International Discovery Fund | |||
| Class A | 12/07/2015 | $0.3233 | $0.0493 |
| Class T | 12/07/2015 | $0.2243 | $0.0493 |
| Class C | 12/07/2015 | $0.0000 | $0.0000 |
| International Discovery | 12/07/2015 | $0.4633 | $0.0493 |
| Class K | 12/07/2015 | $0.5163 | $0.0493 |
| Class I | 12/07/2015 | $0.4723 | $0.0493 |
| Class Z | 12/07/2015 | $0.5153 | $0.0493 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Discovery Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Discovery Fund
Fidelity International Discovery Fund
AID-ANN-1216
1.806659.111
|
Fidelity® International Discovery Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® International Discovery Fund | (4.53)% | 6.47% | 2.35% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® International Discovery Fund, a class of the fund, on October 31, 2006.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Index performed over the same period.
| Period Ending Values | ||
|
| $12,620 | Fidelity® International Discovery Fund |
|
| $11,465 | MSCI EAFE Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager William Kennedy: For the fiscal year, the fund’s share classes trailed the MSCI EAFE Index. Not being well-positioned for the U.K.’s vote to exit the European Union and underexposure to some of the index's top-performing materials stocks cost the fund the most ground versus the benchmark. Individual detractors included a small out-of-benchmark position in U.K. bank Shawbrook Group, which sank due to uncertainty around Brexit. An investment in U.K. retailer Next hurt, as competitors caught up to the company’s lead in online retail. We eliminated Next and Shawbrook from the portfolio before period end. Shares of CMC Markets, a U.K. online trading company, fell as muted market volatility post-Brexit dampened trading activity. By contrast, security selection in consumer staples and an overweighting in information technology's software & services group aided relative performance, as did non-benchmark exposure to both emerging markets and the U.S. and stock picks in Japan. Top contributors included Japanese drug store chain Tsuruha Holdings, which benefited from expanding its offerings and making some strategic acquisitions. Elsewhere, shares of Switzerland-based Partners Group Holding, a private-markets investment management company, rose as its breadth of investment alternatives helped attract new assets in a low and negative interest rate environment.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 18.7% | |
| United Kingdom | 13.2% | |
| France | 9.3% | |
| Germany | 8.2% | |
| Netherlands | 4.8% | |
| United States of America* | 4.5% | |
| Switzerland | 4.2% | |
| Hong Kong | 3.6% | |
| Sweden | 3.5% | |
| Other | 30.0% | |
* 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 April 30, 2016 | ||
| Japan | 17.3% | |
| United Kingdom | 14.5% | |
| France | 9.6% | |
| Germany | 8.0% | |
| United States of America* | 5.8% | |
| Switzerland | 4.3% | |
| Sweden | 4.1% | |
| Hong Kong | 3.3% | |
| Netherlands | 3.3% | |
| Other | 29.8% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks and Equity Futures | 98.8 | 99.1 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.2 | 0.9 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Total SA (France, Oil, Gas & Consumable Fuels) | 2.1 | 2.2 |
| SAP AG (Germany, Software) | 1.7 | 1.1 |
| Unilever NV (Certificaten Van Aandelen) (Bearer) (Netherlands, Personal Products) | 1.6 | 1.7 |
| AIA Group Ltd. (Hong Kong, Insurance) | 1.6 | 1.5 |
| Techtronic Industries Co. Ltd. (Hong Kong, Household Durables) | 1.5 | 1.4 |
| Statoil ASA (Norway, Oil, Gas & Consumable Fuels) | 1.5 | 1.6 |
| KDDI Corp. (Japan, Wireless Telecommunication Services) | 1.4 | 1.4 |
| VINCI SA (France, Construction & Engineering) | 1.4 | 1.4 |
| Partners Group Holding AG (Switzerland, Capital Markets) | 1.3 | 1.0 |
| ORIX Corp. (Japan, Diversified Financial Services) | 1.3 | 1.4 |
| 15.4 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 20.8 | 21.6 |
| Industrials | 14.6 | 10.7 |
| Consumer Discretionary | 13.8 | 15.3 |
| Consumer Staples | 12.9 | 13.2 |
| Information Technology | 11.7 | 10.0 |
| Health Care | 8.2 | 12.5 |
| Materials | 5.4 | 3.6 |
| Energy | 4.7 | 5.0 |
| Telecommunication Services | 2.7 | 4.8 |
| Real Estate | 1.9 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.6% | |||
| Shares | Value (000s) | ||
| Australia - 2.4% | |||
| Altium Ltd. | 1,569,213 | $9,359 | |
| Australia & New Zealand Banking Group Ltd. | 2,793,681 | 59,186 | |
| Bapcor Ltd. | 7,641,696 | 29,821 | |
| Magellan Financial Group Ltd. | 1,204,177 | 19,502 | |
| Ramsay Health Care Ltd. | 1,104,392 | 61,631 | |
| Spark Infrastructure Group unit | 27,415,377 | 46,298 | |
| TOTAL AUSTRALIA | 225,797 | ||
| Austria - 0.8% | |||
| Erste Group Bank AG | 1,309,400 | 41,124 | |
| Wienerberger AG | 2,154,500 | 34,448 | |
| TOTAL AUSTRIA | 75,572 | ||
| Bailiwick of Jersey - 1.6% | |||
| Glencore Xstrata PLC (a) | 8,788,486 | 26,893 | |
| Integrated Diagnostics Holdings PLC | 2,252,058 | 6,193 | |
| Randgold Resources Ltd. sponsored ADR (b) | 189,614 | 16,824 | |
| Regus PLC | 9,503,288 | 28,952 | |
| Shire PLC | 747,500 | 42,206 | |
| Wolseley PLC | 514,260 | 26,758 | |
| TOTAL BAILIWICK OF JERSEY | 147,826 | ||
| Belgium - 1.9% | |||
| Anheuser-Busch InBev SA NV | 815,927 | 93,644 | |
| KBC Groep NV | 1,421,570 | 86,625 | |
| TOTAL BELGIUM | 180,269 | ||
| Canada - 2.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 746,800 | 37,515 | |
| Cenovus Energy, Inc. | 2,715,700 | 39,178 | |
| Constellation Software, Inc. | 104,300 | 48,861 | |
| Franco-Nevada Corp. | 227,700 | 14,905 | |
| PrairieSky Royalty Ltd. (b) | 1,710,573 | 37,201 | |
| Suncor Energy, Inc. | 676,200 | 20,292 | |
| TOTAL CANADA | 197,952 | ||
| Cayman Islands - 1.6% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 439,100 | 44,652 | |
| Ctrip.com International Ltd. ADR (a) | 720,000 | 31,788 | |
| New Oriental Education & Technology Group, Inc. sponsored ADR | 1,371,700 | 68,763 | |
| TOTAL CAYMAN ISLANDS | 145,203 | ||
| China - 0.3% | |||
| Kweichow Moutai Co. Ltd. (A Shares) | 642,182 | 30,134 | |
| Cyprus - 0.0% | |||
| SPDI Secure Property Development & Investment PLC (a) | 517,230 | 101 | |
| Denmark - 1.2% | |||
| DONG Energy A/S | 750,800 | 29,774 | |
| Nets A/S (c) | 1,621,800 | 30,972 | |
| Novo Nordisk A/S Series B | 1,467,745 | 52,289 | |
| TOTAL DENMARK | 113,035 | ||
| Finland - 0.5% | |||
| Sampo Oyj (A Shares) | 1,003,900 | 45,993 | |
| France - 9.3% | |||
| ALTEN | 608,659 | 43,504 | |
| Altran Technologies SA | 2,307,200 | 32,925 | |
| Amundi SA | 516,400 | 25,308 | |
| Atos Origin SA | 257,190 | 26,714 | |
| AXA SA | 3,036,800 | 68,517 | |
| BNP Paribas SA | 525,700 | 30,493 | |
| Capgemini SA | 653,100 | 54,115 | |
| Cegedim SA (a) | 536,390 | 13,661 | |
| Dassault Aviation SA | 18,200 | 19,839 | |
| Havas SA | 4,753,681 | 38,673 | |
| Maisons du Monde SA | 1,122,200 | 31,660 | |
| Rubis | 255,890 | 23,337 | |
| Societe Generale Series A | 1,426,900 | 55,660 | |
| Sodexo SA | 409,000 | 47,502 | |
| SR Teleperformance SA | 280,800 | 29,675 | |
| Total SA | 4,115,171 | 197,131 | |
| VINCI SA (b) | 1,778,000 | 128,780 | |
| TOTAL FRANCE | 867,494 | ||
| Germany - 8.2% | |||
| adidas AG | 260,500 | 42,799 | |
| Axel Springer Verlag AG | 604,902 | 30,290 | |
| Beiersdorf AG | 242,900 | 21,385 | |
| Deutsche Borse AG (a) | 164,581 | 12,806 | |
| Deutsche Post AG | 1,627,604 | 50,439 | |
| Deutsche Telekom AG | 1,900,600 | 31,009 | |
| Fresenius SE & Co. KGaA | 453,600 | 33,481 | |
| GEA Group AG | 850,634 | 32,893 | |
| Henkel AG & Co. KGaA | 352,900 | 38,856 | |
| KION Group AG | 838,449 | 50,641 | |
| LEG Immobilien AG | 204,103 | 17,216 | |
| Nexus AG | 614,500 | 12,635 | |
| ProSiebenSat.1 Media AG | 1,109,900 | 47,835 | |
| Rational AG | 99,005 | 51,353 | |
| SAP AG | 1,810,424 | 159,497 | |
| Scout24 Holding GmbH (a) | 558,300 | 19,250 | |
| Siemens AG | 641,017 | 72,831 | |
| Symrise AG | 617,200 | 42,352 | |
| TOTAL GERMANY | 767,568 | ||
| Hong Kong - 3.6% | |||
| AIA Group Ltd. | 22,819,000 | 144,025 | |
| China Resources Beer Holdings Co. Ltd. | 21,864,000 | 46,516 | |
| Techtronic Industries Co. Ltd. | 37,681,500 | 141,873 | |
| TOTAL HONG KONG | 332,414 | ||
| India - 3.0% | |||
| Bharti Infratel Ltd. | 11,555,099 | 59,875 | |
| Dr Lal Pathlabs Ltd. | 798,016 | 14,093 | |
| HDFC Bank Ltd. | 1,034,409 | 23,115 | |
| HDFC Bank Ltd. sponsored ADR | 1,074,384 | 76,045 | |
| Housing Development Finance Corp. Ltd. | 5,219,689 | 108,900 | |
| TOTAL INDIA | 282,028 | ||
| Indonesia - 0.5% | |||
| PT Bank Central Asia Tbk | 16,688,600 | 19,857 | |
| PT Bank Rakyat Indonesia Tbk | 32,624,300 | 30,504 | |
| TOTAL INDONESIA | 50,361 | ||
| Ireland - 2.6% | |||
| Cairn Homes PLC (a) | 17,549,270 | 22,684 | |
| CRH PLC | 2,385,400 | 77,440 | |
| Dalata Hotel Group PLC (a) | 5,126,600 | 22,961 | |
| Green REIT PLC | 9,492,200 | 14,171 | |
| James Hardie Industries PLC CDI | 1,790,532 | 26,737 | |
| Kerry Group PLC Class A | 856,800 | 62,208 | |
| Ryanair Holdings PLC sponsored ADR | 260,966 | 19,596 | |
| TOTAL IRELAND | 245,797 | ||
| Isle of Man - 0.7% | |||
| Paysafe Group PLC (a) | 11,752,725 | 62,289 | |
| Israel - 1.0% | |||
| Frutarom Industries Ltd. | 978,900 | 51,799 | |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,011,100 | 43,214 | |
| TOTAL ISRAEL | 95,013 | ||
| Italy - 0.6% | |||
| De Longhi SpA | 1,469,700 | 34,397 | |
| Intesa Sanpaolo SpA | 5,941,000 | 13,775 | |
| Mediaset SpA | 3,440,200 | 9,834 | |
| TOTAL ITALY | 58,006 | ||
| Japan - 17.7% | |||
| ACOM Co. Ltd. (a) | 3,246,300 | 14,982 | |
| Aozora Bank Ltd. | 9,159,000 | 30,306 | |
| Casio Computer Co. Ltd. (b) | 2,015,200 | 28,171 | |
| Daito Trust Construction Co. Ltd. | 453,300 | 75,968 | |
| Dentsu, Inc. | 1,208,800 | 60,400 | |
| Don Quijote Holdings Co. Ltd. | 1,026,000 | 39,085 | |
| Hoya Corp. | 1,109,300 | 46,384 | |
| Japan Tobacco, Inc. | 2,141,700 | 81,567 | |
| KDDI Corp. | 4,368,100 | 132,760 | |
| Keyence Corp. | 90,460 | 66,471 | |
| LINE Corp. ADR (b) | 47,048 | 1,904 | |
| Misumi Group, Inc. | 3,017,800 | 55,165 | |
| Mitsubishi UFJ Financial Group, Inc. | 14,897,300 | 76,867 | |
| Monex Group, Inc. | 12,156,649 | 27,937 | |
| Morinaga & Co. Ltd. | 344,000 | 16,024 | |
| Nidec Corp. | 324,300 | 31,450 | |
| Nintendo Co. Ltd. | 164,500 | 39,654 | |
| Nippon Telegraph & Telephone Corp. | 875,400 | 38,812 | |
| Nitori Holdings Co. Ltd. | 226,100 | 27,101 | |
| Olympus Corp. | 2,319,700 | 82,949 | |
| ORIX Corp. | 7,795,700 | 123,808 | |
| Rakuten, Inc. | 2,206,000 | 25,506 | |
| Recruit Holdings Co. Ltd. | 1,200,100 | 48,292 | |
| Relo Holdings Corp. | 178,400 | 29,515 | |
| Seven & i Holdings Co. Ltd. | 1,001,400 | 41,853 | |
| Shionogi & Co. Ltd. | 828,600 | 40,912 | |
| SMS Co., Ltd. | 786,600 | 20,559 | |
| Sony Corp. | 3,320,300 | 104,650 | |
| Start Today Co. Ltd. | 2,130,000 | 37,453 | |
| Sundrug Co. Ltd. | 590,500 | 46,567 | |
| Tsuruha Holdings, Inc. | 611,100 | 70,626 | |
| VT Holdings Co. Ltd. | 3,872,500 | 20,864 | |
| Welcia Holdings Co. Ltd. | 1,076,200 | 73,580 | |
| TOTAL JAPAN | 1,658,142 | ||
| Korea (South) - 0.0% | |||
| Samsung Biologics Co. Ltd. (a) | 15,017 | 1,786 | |
| Luxembourg - 1.1% | |||
| Eurofins Scientific SA | 184,739 | 83,938 | |
| Grand City Properties SA | 1,000,215 | 17,573 | |
| TOTAL LUXEMBOURG | 101,511 | ||
| Malta - 0.0% | |||
| Unibet Group PLC unit | 408,700 | 3,606 | |
| Marshall Islands - 0.1% | |||
| Hoegh LNG Partners LP (d) | 715,655 | 12,739 | |
| Netherlands - 4.8% | |||
| Basic-Fit NV | 579,100 | 10,518 | |
| IMCD Group BV | 1,603,400 | 69,358 | |
| ING Groep NV (Certificaten Van Aandelen) | 5,644,700 | 74,098 | |
| Intertrust NV | 1,544,800 | 32,593 | |
| Koninklijke Philips Electronics NV | 1,770,000 | 53,334 | |
| RELX NV | 2,771,838 | 46,740 | |
| Takeaway.com Holding BV (c) | 505,200 | 11,882 | |
| Unilever NV (Certificaten Van Aandelen) (Bearer) (b) | 3,523,200 | 147,665 | |
| Van Lanschot NV unit | 223,700 | 4,590 | |
| TOTAL NETHERLANDS | 450,778 | ||
| New Zealand - 0.9% | |||
| EBOS Group Ltd. | 3,154,998 | 38,467 | |
| Ryman Healthcare Group Ltd. | 6,907,568 | 43,864 | |
| TOTAL NEW ZEALAND | 82,331 | ||
| Norway - 1.5% | |||
| Statoil ASA (b) | 8,457,200 | 138,072 | |
| Philippines - 0.3% | |||
| SM Investments Corp. | 2,042,375 | 28,340 | |
| Romania - 0.2% | |||
| Banca Transilvania SA | 37,524,532 | 21,164 | |
| South Africa - 1.7% | |||
| Aspen Pharmacare Holdings Ltd. | 656,700 | 14,306 | |
| EOH Holdings Ltd. | 2,763,167 | 32,768 | |
| Naspers Ltd. Class N | 665,600 | 111,556 | |
| TOTAL SOUTH AFRICA | 158,630 | ||
| Spain - 3.2% | |||
| Amadeus IT Holding SA Class A | 1,707,300 | 80,590 | |
| Atresmedia Corporacion de Medios de Comunicacion SA | 1,719,200 | 17,702 | |
| CaixaBank SA | 19,118,400 | 57,688 | |
| Grifols SA ADR | 1,152,800 | 16,474 | |
| Hispania Activos Inmobiliarios SA | 1,424,325 | 17,543 | |
| Inditex SA | 2,140,353 | 74,822 | |
| Mediaset Espana Comunicacion SA | 2,836,600 | 31,684 | |
| TOTAL SPAIN | 296,503 | ||
| Sweden - 3.5% | |||
| ASSA ABLOY AB (B Shares) | 3,443,800 | 62,586 | |
| HEXPOL AB (B Shares) | 1,872,700 | 15,395 | |
| Indutrade AB | 1,116,300 | 20,751 | |
| Nordea Bank AB | 5,635,200 | 59,240 | |
| Saab AB (B Shares) | 948,600 | 33,608 | |
| Sandvik AB | 2,242,600 | 25,499 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 2,802,900 | 79,412 | |
| Svenska Handelsbanken AB (A Shares) | 2,567,100 | 34,998 | |
| TOTAL SWEDEN | 331,489 | ||
| Switzerland - 4.2% | |||
| ABB Ltd. (Reg.) | 2,295,470 | 47,357 | |
| Julius Baer Group Ltd. | 919,060 | 37,205 | |
| Kaba Holding AG (B Shares) (Reg.) | 41,400 | 28,763 | |
| Panalpina Welttransport Holding AG | 178,050 | 23,121 | |
| Partners Group Holding AG | 247,326 | 125,219 | |
| Schindler Holding AG (participation certificate) | 175,435 | 32,603 | |
| Syngenta AG (Switzerland) | 132,540 | 53,038 | |
| UBS Group AG | 3,500,790 | 49,529 | |
| TOTAL SWITZERLAND | 396,835 | ||
| Taiwan - 0.0% | |||
| JHL Biotech, Inc. (a) | 1,466,494 | 3,175 | |
| United Kingdom - 13.2% | |||
| BAE Systems PLC | 4,147,100 | 27,478 | |
| BCA Marketplace PLC | 7,762,300 | 17,126 | |
| BHP Billiton PLC | 3,522,108 | 52,962 | |
| Booker Group PLC | 14,197,800 | 31,176 | |
| British American Tobacco PLC: | |||
| (United Kingdom) | 806,500 | 46,223 | |
| sponsored ADR | 211,500 | 24,299 | |
| Bunzl PLC | 1,968,600 | 52,986 | |
| Cineworld Group PLC | 2,055,200 | 13,597 | |
| CMC Markets PLC | 12,077,600 | 28,058 | |
| Compass Group PLC | 1,948,200 | 35,251 | |
| Countryside Properties PLC (a) | 3,312,793 | 9,448 | |
| Dialog Semiconductor PLC (a) | 585,500 | 22,978 | |
| Diploma PLC | 2,312,600 | 26,537 | |
| Domino's Pizza UK & IRL PLC | 3,415,554 | 14,218 | |
| GlaxoSmithKline PLC | 5,155,200 | 101,837 | |
| Howden Joinery Group PLC | 7,187,900 | 32,984 | |
| Imperial Tobacco Group PLC | 1,738,702 | 84,180 | |
| Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. ELS (HSBC Warrant Program) warrants 9/19/19 (a)(c) | 2,466,200 | 25,351 | |
| London Stock Exchange Group PLC | 1,649,436 | 56,731 | |
| Melrose Industries PLC | 35,056,430 | 72,409 | |
| Micro Focus International PLC | 3,845,400 | 100,772 | |
| Moneysupermarket.com Group PLC | 5,210,600 | 16,703 | |
| NCC Group Ltd. | 9,151,300 | 21,226 | |
| Reckitt Benckiser Group PLC | 842,300 | 75,353 | |
| Rex Bionics PLC (a)(d) | 1,297,286 | 357 | |
| Rio Tinto PLC | 1,482,500 | 51,554 | |
| Softcat PLC | 4,890,800 | 19,396 | |
| Spirax-Sarco Engineering PLC | 522,100 | 28,195 | |
| St. James's Place Capital PLC | 2,354,900 | 27,239 | |
| Standard Chartered PLC (United Kingdom) | 9,910,550 | 86,357 | |
| Zoopla Property Group PLC | 8,823,609 | 32,875 | |
| TOTAL UNITED KINGDOM | 1,235,856 | ||
| United States of America - 3.3% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 206,300 | 34,477 | |
| Coty, Inc. Class A | 400,372 | 9,205 | |
| Global Payments, Inc. | 571,800 | 41,467 | |
| Monsanto Co. | 296,000 | 29,828 | |
| MSCI, Inc. | 661,800 | 53,070 | |
| S&P Global, Inc. | 515,600 | 62,826 | |
| Visa, Inc. Class A | 942,300 | 77,749 | |
| TOTAL UNITED STATES OF AMERICA | 308,622 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $7,971,348) | 9,152,431 | ||
| Convertible Preferred Stocks - 0.2% | |||
| Cayman Islands - 0.2% | |||
| China Internet Plus Holdings Ltd. Series A-11 (e) | |||
| (Cost $18,833) | 5,958,244 | 23,003 | |
| Principal Amount (000s) | Value (000s) | ||
| Government Obligations - 0.0% | |||
| United States of America - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 0.27% to 0.33% 11/3/16 to 1/26/17(f) | |||
| (Cost $3,969) | $3,970 | 3,969 | |
| Shares | Value (000s) | ||
| Money Market Funds - 5.6% | |||
| Fidelity Cash Central Fund, 0.41% (g) | 183,263,125 | 183,318 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (g)(h) | 341,525,876 | 341,594 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $524,884) | 524,912 | ||
| TOTAL INVESTMENT PORTFOLIO - 103.4% | |||
| (Cost $8,519,034) | 9,704,315 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.4)% | (322,767) | ||
| NET ASSETS - 100% | $9,381,548 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
| Purchased | |||
| Equity Index Contracts | |||
| 671 TSE TOPIX Index Contracts (Japan) | Dec. 2016 | 89,258 | $3,786 |
The face value of futures purchased as a percentage of Net Assets is 1.0%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $68,205,000 or 0.7% of net assets.
(d) Affiliated company
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $23,003,000 or 0.2% of net assets.
(f) 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 $3,969,000.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| China Internet Plus Holdings Ltd. Series A-11 | 1/26/15 | $18,833 |
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 |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $978 |
| Fidelity Securities Lending Cash Central Fund | 3,986 |
| Total | $4,964 |
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 (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds* | Dividend Income | Value, end of period |
| Hoegh LNG Partners LP | $11,465 | $-- | $-- | $1,127 | $12,739 |
| Rex Bionics PLC | 976 | -- | 4 | -- | 357 |
| Total | $12,441 | $-- | $4 | $1,127 | $13,096 |
* Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,318,523 | $1,064,985 | $230,535 | $23,003 |
| Consumer Staples | 1,192,465 | 1,070,889 | 121,576 | -- |
| Energy | 444,613 | 109,410 | 335,203 | -- |
| Financials | 1,971,291 | 1,458,024 | 513,267 | -- |
| Health Care | 753,852 | 555,734 | 198,118 | -- |
| Industrials | 1,359,313 | 1,048,987 | 310,326 | -- |
| Information Technology | 1,107,250 | 908,099 | 199,151 | -- |
| Materials | 494,175 | 259,181 | 234,994 | -- |
| Real Estate | 172,087 | 172,087 | -- | -- |
| Telecommunication Services | 262,456 | 59,875 | 202,581 | -- |
| Utilities | 99,409 | 99,409 | -- | -- |
| Government Obligations | 3,969 | -- | 3,969 | -- |
| Money Market Funds | 524,912 | 524,912 | -- | -- |
| Total Investments in Securities: | $9,704,315 | $7,331,592 | $2,349,720 | $23,003 |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $3,786 | $3,786 | $-- | $-- |
| Total Assets | $3,786 | $3,786 | $-- | $-- |
| Total Derivative Instruments: | $3,786 | $3,786 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 (000s) |
| Level 1 to Level 2 | $299,696 |
| Level 2 to Level 1 | $1,813,808 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $3,786 | $0 |
| Total Equity Risk | 3,786 | 0 |
| Total Value of Derivatives | $3,786 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | October 31, 2016 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $320,240) — See accompanying schedule: Unaffiliated issuers (cost $7,975,670) | $9,166,307 | |
| Fidelity Central Funds (cost $524,884) | 524,912 | |
| Other affiliated issuers (cost $18,480) | 13,096 | |
| Total Investments (cost $8,519,034) | $9,704,315 | |
| Foreign currency held at value (cost $27,244) | 27,247 | |
| Receivable for investments sold | 26,345 | |
| Receivable for fund shares sold | 3,500 | |
| Dividends receivable | 24,713 | |
| Distributions receivable from Fidelity Central Funds | 113 | |
| Receivable for daily variation margin for derivative instruments | 160 | |
| Prepaid expenses | 26 | |
| Other receivables | 4,319 | |
| Total assets | 9,790,738 | |
| Liabilities | ||
| Payable for investments purchased | $47,907 | |
| Payable for fund shares redeemed | 11,655 | |
| Accrued management fee | 5,770 | |
| Distribution and service plan fees payable | 87 | |
| Other affiliated payables | 1,406 | |
| Other payables and accrued expenses | 774 | |
| Collateral on securities loaned, at value | 341,591 | |
| Total liabilities | 409,190 | |
| Net Assets | $9,381,548 | |
| Net Assets consist of: | ||
| Paid in capital | $8,680,192 | |
| Undistributed net investment income | 142,052 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (627,108) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,186,412 | |
| Net Assets | $9,381,548 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($236,127 ÷ 6,280.6 shares) | $37.60 | |
| Maximum offering price per share (100/94.25 of $37.60) | $39.89 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($34,959 ÷ 936.3 shares) | $37.34 | |
| Maximum offering price per share (100/96.50 of $37.34) | $38.69 | |
| Class C: | ||
| Net Asset Value and offering price per share ($26,091 ÷ 705.9 shares)(a) | $36.96 | |
| International Discovery: | ||
| Net Asset Value, offering price and redemption price per share ($6,421,194 ÷ 169,373.8 shares) | $37.91 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($1,879,921 ÷ 49,660.9 shares) | $37.86 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($745,324 ÷ 19,707.5 shares) | $37.82 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($37,932 ÷ 1,002.5 shares) | $37.84 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended October 31, 2016 | |
| Investment Income | ||
| Dividends (including $1,127 earned from other affiliated issuers) | $238,573 | |
| Special dividends | 37,704 | |
| Interest | 46 | |
| Income from Fidelity Central Funds | 4,964 | |
| Income before foreign taxes withheld | 281,287 | |
| Less foreign taxes withheld | (21,356) | |
| Total income | 259,931 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $67,411 | |
| Performance adjustment | 10,738 | |
| Transfer agent fees | 15,638 | |
| Distribution and service plan fees | 1,148 | |
| Accounting and security lending fees | 1,802 | |
| Custodian fees and expenses | 1,336 | |
| Independent trustees' fees and expenses | 44 | |
| Registration fees | 201 | |
| Audit | 124 | |
| Legal | 33 | |
| Miscellaneous | 85 | |
| Total expenses before reductions | 98,560 | |
| Expense reductions | (875) | 97,685 |
| Net investment income (loss) | 162,246 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (532,206) | |
| Fidelity Central Funds | 31 | |
| Other affiliated issuers | (19) | |
| Foreign currency transactions | 2,961 | |
| Futures contracts | (12,614) | |
| Total net realized gain (loss) | (541,847) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (122,679) | |
| Assets and liabilities in foreign currencies | (2,928) | |
| Futures contracts | (5,417) | |
| Total change in net unrealized appreciation (depreciation) | (131,024) | |
| Net gain (loss) | (672,871) | |
| Net increase (decrease) in net assets resulting from operations | $(510,625) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended October 31, 2016 | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $162,246 | $149,838 |
| Net realized gain (loss) | (541,847) | 245,770 |
| Change in net unrealized appreciation (depreciation) | (131,024) | 655 |
| Net increase (decrease) in net assets resulting from operations | (510,625) | 396,263 |
| Distributions to shareholders from net investment income | (113,434) | (74,589) |
| Distributions to shareholders from net realized gain | (1,362) | – |
| Total distributions | (114,796) | (74,589) |
| Share transactions - net increase (decrease) | (960,274) | (353,147) |
| Redemption fees | 70 | 95 |
| Total increase (decrease) in net assets | (1,585,625) | (31,378) |
| Net Assets | ||
| Beginning of period | 10,967,173 | 10,998,551 |
| End of period | $9,381,548 | $10,967,173 |
| Other Information | ||
| Undistributed net investment income end of period | $142,052 | $108,769 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.78 | $38.70 | $39.49 | $31.66 | $29.43 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .47B | .40C | .53D | .34 | .41 |
| Net realized and unrealized gain (loss) | (2.38) | .79 | (.67) | 7.97 | 2.11 |
| Total from investment operations | (1.91) | 1.19 | (.14) | 8.31 | 2.52 |
| Distributions from net investment income | (.27) | (.11) | (.33) | (.45) | (.29) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.27)E | (.11) | (.65)F | (.48) | (.29) |
| Redemption fees added to paid in capitalA,G | – | – | – | – | – |
| Net asset value, end of period | $37.60 | $39.78 | $38.70 | $39.49 | $31.66 |
| Total ReturnH,I | (4.83)% | 3.09% | (.36)% | 26.59% | 8.70% |
| Ratios to Average Net AssetsJ,K | |||||
| Expenses before reductions | 1.35% | 1.33% | 1.28% | 1.35% | 1.34% |
| Expenses net of fee waivers, if any | 1.35% | 1.33% | 1.28% | 1.35% | 1.34% |
| Expenses net of all reductions | 1.34% | 1.32% | 1.28% | 1.33% | 1.31% |
| Net investment income (loss) | 1.26%B | 1.00%C | 1.35%D | .97% | 1.41% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $236 | $283 | $297 | $347 | $299 |
| Portfolio turnover rateL | 50%M | 60%M | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .88%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .69%.
D Net Investment income per share reflects a large, non-recurring dividend 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 .80%.
E Total distributions of $.27 per share is comprised of distributions from net investment income of $.269 and distributions from net realized gain of $.005 per share.
F Total distributions of $.65 per share is comprised of distributions from net investment income of $.334 and distributions from net realized gain of $.311 per share.
G Amount represents less than $.005 per share.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J 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.
K 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.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.51 | $38.43 | $39.23 | $31.42 | $29.18 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .38B | .30C | .44D | .26 | .34 |
| Net realized and unrealized gain (loss) | (2.37) | .80 | (.68) | 7.92 | 2.09 |
| Total from investment operations | (1.99) | 1.10 | (.24) | 8.18 | 2.43 |
| Distributions from net investment income | (.17) | (.02) | (.25) | (.34) | (.19) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.18) | (.02) | (.56) | (.37) | (.19) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $37.34 | $39.51 | $38.43 | $39.23 | $31.42 |
| Total ReturnF,G | (5.07)% | 2.86% | (.60)% | 26.31% | 8.41% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.58% | 1.57% | 1.51% | 1.59% | 1.59% |
| Expenses net of fee waivers, if any | 1.58% | 1.57% | 1.51% | 1.59% | 1.59% |
| Expenses net of all reductions | 1.57% | 1.56% | 1.51% | 1.57% | 1.56% |
| Net investment income (loss) | 1.02%B | .76%C | 1.11%D | .73% | 1.16% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $35 | $43 | $49 | $53 | $46 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .64%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .45%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.14 | $38.25 | $39.07 | $31.32 | $29.08 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19B | .10C | .23D | .08 | .19 |
| Net realized and unrealized gain (loss) | (2.37) | .79 | (.66) | 7.90 | 2.09 |
| Total from investment operations | (2.18) | .89 | (.43) | 7.98 | 2.28 |
| Distributions from net investment income | – | – | (.08) | (.20) | (.04) |
| Distributions from net realized gain | – | – | (.31) | (.03) | – |
| Total distributions | – | – | (.39) | (.23) | (.04) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $36.96 | $39.14 | $38.25 | $39.07 | $31.32 |
| Total ReturnF,G | (5.57)% | 2.33% | (1.10)% | 25.65% | 7.86% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 2.10% | 2.09% | 2.03% | 2.10% | 2.09% |
| Expenses net of fee waivers, if any | 2.10% | 2.09% | 2.03% | 2.09% | 2.09% |
| Expenses net of all reductions | 2.09% | 2.08% | 2.02% | 2.07% | 2.06% |
| Net investment income (loss) | .50%B | .24%C | .60%D | .23% | .66% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $26 | $32 | $35 | $36 | $30 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .13%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06) %.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .05%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.12 | $39.03 | $39.82 | $31.91 | $29.69 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .61B | .54C | .67D | .47 | .51 |
| Net realized and unrealized gain (loss) | (2.41) | .81 | (.68) | 8.02 | 2.12 |
| Total from investment operations | (1.80) | 1.35 | (.01) | 8.49 | 2.63 |
| Distributions from net investment income | (.41) | (.26) | (.47) | (.55) | (.41) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.41)E | (.26) | (.78) | (.58) | (.41) |
| Redemption fees added to paid in capitalA,F | – | – | – | – | – |
| Net asset value, end of period | $37.91 | $40.12 | $39.03 | $39.82 | $31.91 |
| Total ReturnG | (4.53)% | 3.47% | (.01)% | 27.03% | 9.03% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.00% | .99% | .93% | 1.00% | 1.01% |
| Expenses net of fee waivers, if any | 1.00% | .99% | .93% | 1.00% | 1.01% |
| Expenses net of all reductions | .99% | .98% | .93% | .98% | .98% |
| Net investment income (loss) | 1.61%B | 1.34%C | 1.69%D | 1.32% | 1.73% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $6,421 | $7,209 | $7,464 | $7,800 | $5,965 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.23%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.15%.
E Total distributions of $.41 per share is comprised of distributions from net investment income of $.409 and distributions from net realized gain of $.005 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class K
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.06 | $38.97 | $39.76 | $31.87 | $29.66 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .66B | .59C | .72D | .52 | .57 |
| Net realized and unrealized gain (loss) | (2.39) | .81 | (.67) | 8.01 | 2.11 |
| Total from investment operations | (1.73) | 1.40 | .05 | 8.53 | 2.68 |
| Distributions from net investment income | (.46) | (.31) | (.53) | (.61) | (.47) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.47) | (.31) | (.84) | (.64) | (.47) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $37.86 | $40.06 | $38.97 | $39.76 | $31.87 |
| Total ReturnF | (4.38)% | 3.61% | .13% | 27.23% | 9.24% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | .86% | .86% | .80% | .85% | .83% |
| Expenses net of fee waivers, if any | .86% | .86% | .80% | .85% | .83% |
| Expenses net of all reductions | .85% | .85% | .79% | .83% | .80% |
| Net investment income (loss) | 1.74%B | 1.47%C | 1.83%D | 1.47% | 1.91% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $1,880 | $2,308 | $2,464 | $2,576 | $1,776 |
| Portfolio turnover rateI | 50%J | 60%J | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.16%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.28%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.03 | $38.96 | $39.76 | $31.87 | $29.65 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .61B | .53C | .67D | .47 | .52 |
| Net realized and unrealized gain (loss) | (2.40) | .80 | (.68) | 8.01 | 2.11 |
| Total from investment operations | (1.79) | 1.33 | (.01) | 8.48 | 2.63 |
| Distributions from net investment income | (.42) | (.26) | (.48) | (.56) | (.41) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.42)E | (.26) | (.79) | (.59) | (.41) |
| Redemption fees added to paid in capitalA,F | – | – | – | – | – |
| Net asset value, end of period | $37.82 | $40.03 | $38.96 | $39.76 | $31.87 |
| Total ReturnG | (4.52)% | 3.44% | (.01)% | 27.03% | 9.07% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.00% | 1.00% | .93% | 1.00% | 1.00% |
| Expenses net of fee waivers, if any | 1.00% | .99% | .93% | 1.00% | 1.00% |
| Expenses net of all reductions | .99% | .98% | .93% | .97% | .97% |
| Net investment income (loss) | 1.60%B | 1.33%C | 1.69%D | 1.33% | 1.75% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $745 | $1,061 | $650 | $476 | $294 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.22%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.14%.
E Total distributions of $.42 per share is comprised of distributions from net investment income of $.418 and distributions from net realized gain of $.005 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class Z
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $40.03 | $38.96 | $39.77 | $37.22 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .66C | .59D | .72E | .07 |
| Net realized and unrealized gain (loss) | (2.38) | .80 | (.68) | 2.48 |
| Total from investment operations | (1.72) | 1.39 | .04 | 2.55 |
| Distributions from net investment income | (.46) | (.32) | (.54) | – |
| Distributions from net realized gain | (.01) | – | (.31) | – |
| Total distributions | (.47) | (.32) | (.85) | – |
| Redemption fees added to paid in capitalB,F | – | – | – | – |
| Net asset value, end of period | $37.84 | $40.03 | $38.96 | $39.77 |
| Total ReturnG,H | (4.36)% | 3.58% | .12% | 6.85% |
| Ratios to Average Net AssetsI,J | ||||
| Expenses before reductions | .86% | .86% | .80% | .85%K |
| Expenses net of fee waivers, if any | .86% | .86% | .80% | .85%K |
| Expenses net of all reductions | .85% | .85% | .79% | .83%K |
| Net investment income (loss) | 1.74%C | 1.47%D | 1.83%E | .76%K |
| Supplemental Data | ||||
| Net assets, end of period (in millions) | $38 | $30 | $35 | $– |
| Portfolio turnover rateL | 50%M | 60%M | 57% | 65% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.16%.
E Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.28%.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
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 Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity International Discovery 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, International Discovery, Class K, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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. 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 and swaps 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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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, passive foreign investment companies (PFIC), market discount, certain foreign taxes, redemptions in-kind, 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 | $1,532,643 |
| Gross unrealized depreciation | (373,203) |
| Net unrealized appreciation (depreciation) on securities | $1,159,440 |
| Tax Cost | $8,544,875 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $153,843 |
| Capital loss carryforward | $(612,706) |
| Net unrealized appreciation (depreciation) on securities and other investments | $1,160,571 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(49,104) |
| No expiration | |
| Short-term | (473,137) |
| Long-term | (90,465) |
| Total no expiration | (563,602) |
| Total capital loss carryforward | $(612,706) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $114,796 | $ 74,589 |
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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
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.
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.
During the period the Fund recognized net realized gain (loss) of $(12,614) a change in net unrealized appreciation (depreciation) of $(5,417) 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 and in-kind transactions, aggregated $4,860,976 and $5,449,080, respectively.
Redemptions In-Kind. During the period, 1,487 shares of the Fund held by an unaffiliated entity were redeemed in-kind for investments and cash with a value of $55,670. The net realized gain of $10,064 on investments delivered through the in-kind redemptions is included in the accompanying Statement of Operations. The amount of the redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 4,932 shares of the Fund held by unaffiliated entities were redeemed for investments, including accrued interest, and cash with a value of $197,848. The Fund had a net gain of $41,387 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
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 .424% 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 International Discovery as compared to its benchmark index, the MSCI EAFE Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .78% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $642 | $– |
| Class T | .25% | .25% | 192 | – |
| Class B | .75% | .25% | 11 | 8 |
| Class C | .75% | .25% | 303 | 30 |
| $1,148 | $38 |
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 by FDC |
|
| Class A | $51 |
| Class T | 4 |
| Class B(a) | –(b) |
| Class C(a) | 3 |
| $58 |
(a) 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.
(b) In the amount of less than five hundred dollars.
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, except for Class K and Class Z. FIIOC receives an asset-based fee of Class K's and Class Z'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 Class-Level Average Net Assets |
|
| Class A | $719 | .28 |
| Class T | 103 | .27 |
| Class B | 3 | .28 |
| Class C | 86 | .28 |
| International Discovery | 12,160 | .18 |
| Class K | 981 | .05 |
| Class I | 1,571 | .19 |
| Class Z | 15 | .05 |
| $15,638 |
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 $10 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
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 $26 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $3,986, including $6 from securities loaned to FCM.
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 $797 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $78.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $1,912 | $864 |
| Class T | 184 | 23 |
| International Discovery | 73,519 | 49,040 |
| Class K | 26,239 | 19,835 |
| Class I | 11,205 | 4,544 |
| Class Z | 375 | 283 |
| Total | $113,434 | $74,589 |
| From net realized gain | ||
| Class A | $36 | $– |
| Class T | 5 | – |
| International Discovery | 899 | – |
| Class K | 284 | – |
| Class I | 134 | – |
| Class Z | 4 | – |
| Total | $1,362 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 885 | 1,331 | $33,250 | $53,289 |
| Reinvestment of distributions | 48 | 22 | 1,922 | 843 |
| Shares redeemed | (1,758) | (1,915) | (66,337) | (76,178) |
| Net increase (decrease) | (825) | (562) | $(31,165) | $(22,046) |
| Class T | ||||
| Shares sold | 126 | 178 | $4,736 | $7,105 |
| Reinvestment of distributions | 5 | 1 | 183 | 23 |
| Shares redeemed | (282) | (355) | (10,546) | (13,954) |
| Net increase (decrease) | (151) | (176) | $(5,627) | $(6,826) |
| Class B | ||||
| Shares sold | 1 | 1 | $16 | $53 |
| Shares redeemed | (58) | (64) | (2,118) | (2,536) |
| Net increase (decrease) | (57) | (63) | $(2,102) | $(2,483) |
| Class C | ||||
| Shares sold | 193 | 201 | $7,216 | $7,918 |
| Shares redeemed | (298) | (314) | (11,125) | (12,486) |
| Net increase (decrease) | (105) | (113) | $(3,909) | $(4,568) |
| International Discovery | ||||
| Shares sold | 18,319 | 20,827 | $696,598 | $832,233 |
| Reinvestment of distributions | 1,781 | 1,199 | 70,961 | 46,913 |
| Shares redeemed | (30,424) | (33,573) | (1,154,409) | (1,345,593) |
| Net increase (decrease) | (10,324) | (11,547) | $(386,850) | $(466,447) |
| Class K | ||||
| Shares sold | 12,391 | 15,372 | $466,861 | $613,737 |
| Reinvestment of distributions | 667 | 508 | 26,523 | 19,835 |
| Shares redeemed | (21,012)(a) | (21,494)(b) | (800,081)(a) | (860,632)(b) |
| Net increase (decrease) | (7,954) | (5,614) | $(306,697) | $(227,060) |
| Class I | ||||
| Shares sold | 8,874 | 15,392 | $334,588 | $602,134 |
| Reinvestment of distributions | 52 | 33 | 2,069 | 1,286 |
| Shares redeemed | (15,719) | (5,606) | (569,974) | (221,504) |
| Net increase (decrease) | (6,793) | 9,819 | $(233,317) | $381,916 |
| Class Z | ||||
| Shares sold | 497 | 402 | $18,760 | $16,312 |
| Reinvestment of distributions | 10 | 7 | 379 | 283 |
| Shares redeemed | (256) | (559) | (9,746) | (22,228) |
| Net increase (decrease) | 251 | (150) | $9,393 | $(5,633) |
(a) Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
(b) Amount includes in-kind redemptions (see Note 5: Prior Fiscal Year Redemptions In-Kind).
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.
At the end of the period, Strategic Advisers International Fund was the owner of record of approximately 13% 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 20% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Discovery Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity International Discovery Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity International Discovery Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 13, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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, and (2) ongoing costs, including 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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.32% | |||
| Actual | $1,000.00 | $996.30 | $6.62 | |
| Hypothetical-C | $1,000.00 | $1,018.50 | $6.70 | |
| Class T | 1.55% | |||
| Actual | $1,000.00 | $994.90 | $7.77 | |
| Hypothetical-C | $1,000.00 | $1,017.34 | $7.86 | |
| Class C | 2.07% | |||
| Actual | $1,000.00 | $992.20 | $10.37 | |
| Hypothetical-C | $1,000.00 | $1,014.73 | $10.48 | |
| International Discovery | .97% | |||
| Actual | $1,000.00 | $997.90 | $4.87 | |
| Hypothetical-C | $1,000.00 | $1,020.26 | $4.93 | |
| Class K | .83% | |||
| Actual | $1,000.00 | $998.70 | $4.17 | |
| Hypothetical-C | $1,000.00 | $1,020.96 | $4.22 | |
| Class I | .97% | |||
| Actual | $1,000.00 | $997.90 | $4.87 | |
| Hypothetical-C | $1,000.00 | $1,020.26 | $4.93 | |
| Class Z | .84% | |||
| Actual | $1,000.00 | $998.70 | $4.22 | |
| Hypothetical-C | $1,000.00 | $1,020.91 | $4.27 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity International Discovery 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 International Discovery Fund | ||||
| Class A | 12/12/2016 | 12/09/2016 | $0.470 | $0.049 |
| Class T | 12/12/2016 | 12/09/2016 | $0.369 | $0.049 |
| Class C | 12/12/2016 | 12/09/2016 | $0.134 | $0.049 |
| International Discovery | 12/12/2016 | 12/09/2016 | $0.612 | $0.049 |
| Class K | 12/12/2016 | 12/09/2016 | $0.664 | $0.049 |
| Class I | 12/12/2016 | 12/09/2016 | $0.606 | $0.049 |
| Class Z | 12/12/2016 | 12/09/2016 | $0.668 | $0.049 |
Class A designates 6%; Class T designates 8%; Class C designates 0%; International Discovery designates 4%; Class K designates 3%; Class I designates 4% and Class Z designates 3% of the dividends distributed in during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 100%; Class T designates 100%; Class C designates 0%; International Discovery designates 100%; Class K designates 100%; Class I designates 100%; and Class Z designates 100%; of dividends distributed 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 | |
| Fidelity International Discovery Fund | |||
| Class A | 12/07/2015 | $0.3233 | $0.0493 |
| Class T | 12/07/2015 | $0.2243 | $0.0493 |
| Class C | 12/07/2015 | $0.0000 | $0.0000 |
| International Discovery | 12/07/2015 | $0.4633 | $0.0493 |
| Class K | 12/07/2015 | $0.5163 | $0.0493 |
| Class I | 12/07/2015 | $0.4723 | $0.0493 |
| Class Z | 12/07/2015 | $0.5153 | $0.0493 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Discovery Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Discovery Fund
Fidelity International Discovery Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
IGI-ANN-1216
1.807258.112
|
Fidelity® International Discovery Fund Class K Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class K | (4.38)% | 6.63% | 2.51% |
The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are those of Fidelity® International Discovery Fund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® International Discovery Fund - Class K on October 31, 2006. The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Index performed over the same period. See above for additional information regarding the performance of Class K.
| Period Ending Values | ||
|
| $12,807 | Fidelity® International Discovery Fund - Class K |
|
| $11,465 | MSCI EAFE Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager William Kennedy: For the fiscal year, the fund’s share classes trailed the MSCI EAFE Index. Not being well-positioned for the U.K.’s vote to exit the European Union and underexposure to some of the index's top-performing materials stocks cost the fund the most ground versus the benchmark. Individual detractors included a small out-of-benchmark position in U.K. bank Shawbrook Group, which sank due to uncertainty around Brexit. An investment in U.K. retailer Next hurt, as competitors caught up to the company’s lead in online retail. We eliminated Next and Shawbrook from the portfolio before period end. Shares of CMC Markets, a U.K. online trading company, fell as muted market volatility post-Brexit dampened trading activity. By contrast, security selection in consumer staples and an overweighting in information technology's software & services group aided relative performance, as did non-benchmark exposure to both emerging markets and the U.S. and stock picks in Japan. Top contributors included Japanese drug store chain Tsuruha Holdings, which benefited from expanding its offerings and making some strategic acquisitions. Elsewhere, shares of Switzerland-based Partners Group Holding, a private-markets investment management company, rose as its breadth of investment alternatives helped attract new assets in a low and negative interest rate environment.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 18.7% | |
| United Kingdom | 13.2% | |
| France | 9.3% | |
| Germany | 8.2% | |
| Netherlands | 4.8% | |
| United States of America* | 4.5% | |
| Switzerland | 4.2% | |
| Hong Kong | 3.6% | |
| Sweden | 3.5% | |
| Other | 30.0% | |
* 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 April 30, 2016 | ||
| Japan | 17.3% | |
| United Kingdom | 14.5% | |
| France | 9.6% | |
| Germany | 8.0% | |
| United States of America* | 5.8% | |
| Switzerland | 4.3% | |
| Sweden | 4.1% | |
| Hong Kong | 3.3% | |
| Netherlands | 3.3% | |
| Other | 29.8% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks and Equity Futures | 98.8 | 99.1 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.2 | 0.9 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Total SA (France, Oil, Gas & Consumable Fuels) | 2.1 | 2.2 |
| SAP AG (Germany, Software) | 1.7 | 1.1 |
| Unilever NV (Certificaten Van Aandelen) (Bearer) (Netherlands, Personal Products) | 1.6 | 1.7 |
| AIA Group Ltd. (Hong Kong, Insurance) | 1.6 | 1.5 |
| Techtronic Industries Co. Ltd. (Hong Kong, Household Durables) | 1.5 | 1.4 |
| Statoil ASA (Norway, Oil, Gas & Consumable Fuels) | 1.5 | 1.6 |
| KDDI Corp. (Japan, Wireless Telecommunication Services) | 1.4 | 1.4 |
| VINCI SA (France, Construction & Engineering) | 1.4 | 1.4 |
| Partners Group Holding AG (Switzerland, Capital Markets) | 1.3 | 1.0 |
| ORIX Corp. (Japan, Diversified Financial Services) | 1.3 | 1.4 |
| 15.4 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 20.8 | 21.6 |
| Industrials | 14.6 | 10.7 |
| Consumer Discretionary | 13.8 | 15.3 |
| Consumer Staples | 12.9 | 13.2 |
| Information Technology | 11.7 | 10.0 |
| Health Care | 8.2 | 12.5 |
| Materials | 5.4 | 3.6 |
| Energy | 4.7 | 5.0 |
| Telecommunication Services | 2.7 | 4.8 |
| Real Estate | 1.9 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.6% | |||
| Shares | Value (000s) | ||
| Australia - 2.4% | |||
| Altium Ltd. | 1,569,213 | $9,359 | |
| Australia & New Zealand Banking Group Ltd. | 2,793,681 | 59,186 | |
| Bapcor Ltd. | 7,641,696 | 29,821 | |
| Magellan Financial Group Ltd. | 1,204,177 | 19,502 | |
| Ramsay Health Care Ltd. | 1,104,392 | 61,631 | |
| Spark Infrastructure Group unit | 27,415,377 | 46,298 | |
| TOTAL AUSTRALIA | 225,797 | ||
| Austria - 0.8% | |||
| Erste Group Bank AG | 1,309,400 | 41,124 | |
| Wienerberger AG | 2,154,500 | 34,448 | |
| TOTAL AUSTRIA | 75,572 | ||
| Bailiwick of Jersey - 1.6% | |||
| Glencore Xstrata PLC (a) | 8,788,486 | 26,893 | |
| Integrated Diagnostics Holdings PLC | 2,252,058 | 6,193 | |
| Randgold Resources Ltd. sponsored ADR (b) | 189,614 | 16,824 | |
| Regus PLC | 9,503,288 | 28,952 | |
| Shire PLC | 747,500 | 42,206 | |
| Wolseley PLC | 514,260 | 26,758 | |
| TOTAL BAILIWICK OF JERSEY | 147,826 | ||
| Belgium - 1.9% | |||
| Anheuser-Busch InBev SA NV | 815,927 | 93,644 | |
| KBC Groep NV | 1,421,570 | 86,625 | |
| TOTAL BELGIUM | 180,269 | ||
| Canada - 2.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 746,800 | 37,515 | |
| Cenovus Energy, Inc. | 2,715,700 | 39,178 | |
| Constellation Software, Inc. | 104,300 | 48,861 | |
| Franco-Nevada Corp. | 227,700 | 14,905 | |
| PrairieSky Royalty Ltd. (b) | 1,710,573 | 37,201 | |
| Suncor Energy, Inc. | 676,200 | 20,292 | |
| TOTAL CANADA | 197,952 | ||
| Cayman Islands - 1.6% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 439,100 | 44,652 | |
| Ctrip.com International Ltd. ADR (a) | 720,000 | 31,788 | |
| New Oriental Education & Technology Group, Inc. sponsored ADR | 1,371,700 | 68,763 | |
| TOTAL CAYMAN ISLANDS | 145,203 | ||
| China - 0.3% | |||
| Kweichow Moutai Co. Ltd. (A Shares) | 642,182 | 30,134 | |
| Cyprus - 0.0% | |||
| SPDI Secure Property Development & Investment PLC (a) | 517,230 | 101 | |
| Denmark - 1.2% | |||
| DONG Energy A/S | 750,800 | 29,774 | |
| Nets A/S (c) | 1,621,800 | 30,972 | |
| Novo Nordisk A/S Series B | 1,467,745 | 52,289 | |
| TOTAL DENMARK | 113,035 | ||
| Finland - 0.5% | |||
| Sampo Oyj (A Shares) | 1,003,900 | 45,993 | |
| France - 9.3% | |||
| ALTEN | 608,659 | 43,504 | |
| Altran Technologies SA | 2,307,200 | 32,925 | |
| Amundi SA | 516,400 | 25,308 | |
| Atos Origin SA | 257,190 | 26,714 | |
| AXA SA | 3,036,800 | 68,517 | |
| BNP Paribas SA | 525,700 | 30,493 | |
| Capgemini SA | 653,100 | 54,115 | |
| Cegedim SA (a) | 536,390 | 13,661 | |
| Dassault Aviation SA | 18,200 | 19,839 | |
| Havas SA | 4,753,681 | 38,673 | |
| Maisons du Monde SA | 1,122,200 | 31,660 | |
| Rubis | 255,890 | 23,337 | |
| Societe Generale Series A | 1,426,900 | 55,660 | |
| Sodexo SA | 409,000 | 47,502 | |
| SR Teleperformance SA | 280,800 | 29,675 | |
| Total SA | 4,115,171 | 197,131 | |
| VINCI SA (b) | 1,778,000 | 128,780 | |
| TOTAL FRANCE | 867,494 | ||
| Germany - 8.2% | |||
| adidas AG | 260,500 | 42,799 | |
| Axel Springer Verlag AG | 604,902 | 30,290 | |
| Beiersdorf AG | 242,900 | 21,385 | |
| Deutsche Borse AG (a) | 164,581 | 12,806 | |
| Deutsche Post AG | 1,627,604 | 50,439 | |
| Deutsche Telekom AG | 1,900,600 | 31,009 | |
| Fresenius SE & Co. KGaA | 453,600 | 33,481 | |
| GEA Group AG | 850,634 | 32,893 | |
| Henkel AG & Co. KGaA | 352,900 | 38,856 | |
| KION Group AG | 838,449 | 50,641 | |
| LEG Immobilien AG | 204,103 | 17,216 | |
| Nexus AG | 614,500 | 12,635 | |
| ProSiebenSat.1 Media AG | 1,109,900 | 47,835 | |
| Rational AG | 99,005 | 51,353 | |
| SAP AG | 1,810,424 | 159,497 | |
| Scout24 Holding GmbH (a) | 558,300 | 19,250 | |
| Siemens AG | 641,017 | 72,831 | |
| Symrise AG | 617,200 | 42,352 | |
| TOTAL GERMANY | 767,568 | ||
| Hong Kong - 3.6% | |||
| AIA Group Ltd. | 22,819,000 | 144,025 | |
| China Resources Beer Holdings Co. Ltd. | 21,864,000 | 46,516 | |
| Techtronic Industries Co. Ltd. | 37,681,500 | 141,873 | |
| TOTAL HONG KONG | 332,414 | ||
| India - 3.0% | |||
| Bharti Infratel Ltd. | 11,555,099 | 59,875 | |
| Dr Lal Pathlabs Ltd. | 798,016 | 14,093 | |
| HDFC Bank Ltd. | 1,034,409 | 23,115 | |
| HDFC Bank Ltd. sponsored ADR | 1,074,384 | 76,045 | |
| Housing Development Finance Corp. Ltd. | 5,219,689 | 108,900 | |
| TOTAL INDIA | 282,028 | ||
| Indonesia - 0.5% | |||
| PT Bank Central Asia Tbk | 16,688,600 | 19,857 | |
| PT Bank Rakyat Indonesia Tbk | 32,624,300 | 30,504 | |
| TOTAL INDONESIA | 50,361 | ||
| Ireland - 2.6% | |||
| Cairn Homes PLC (a) | 17,549,270 | 22,684 | |
| CRH PLC | 2,385,400 | 77,440 | |
| Dalata Hotel Group PLC (a) | 5,126,600 | 22,961 | |
| Green REIT PLC | 9,492,200 | 14,171 | |
| James Hardie Industries PLC CDI | 1,790,532 | 26,737 | |
| Kerry Group PLC Class A | 856,800 | 62,208 | |
| Ryanair Holdings PLC sponsored ADR | 260,966 | 19,596 | |
| TOTAL IRELAND | 245,797 | ||
| Isle of Man - 0.7% | |||
| Paysafe Group PLC (a) | 11,752,725 | 62,289 | |
| Israel - 1.0% | |||
| Frutarom Industries Ltd. | 978,900 | 51,799 | |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,011,100 | 43,214 | |
| TOTAL ISRAEL | 95,013 | ||
| Italy - 0.6% | |||
| De Longhi SpA | 1,469,700 | 34,397 | |
| Intesa Sanpaolo SpA | 5,941,000 | 13,775 | |
| Mediaset SpA | 3,440,200 | 9,834 | |
| TOTAL ITALY | 58,006 | ||
| Japan - 17.7% | |||
| ACOM Co. Ltd. (a) | 3,246,300 | 14,982 | |
| Aozora Bank Ltd. | 9,159,000 | 30,306 | |
| Casio Computer Co. Ltd. (b) | 2,015,200 | 28,171 | |
| Daito Trust Construction Co. Ltd. | 453,300 | 75,968 | |
| Dentsu, Inc. | 1,208,800 | 60,400 | |
| Don Quijote Holdings Co. Ltd. | 1,026,000 | 39,085 | |
| Hoya Corp. | 1,109,300 | 46,384 | |
| Japan Tobacco, Inc. | 2,141,700 | 81,567 | |
| KDDI Corp. | 4,368,100 | 132,760 | |
| Keyence Corp. | 90,460 | 66,471 | |
| LINE Corp. ADR (b) | 47,048 | 1,904 | |
| Misumi Group, Inc. | 3,017,800 | 55,165 | |
| Mitsubishi UFJ Financial Group, Inc. | 14,897,300 | 76,867 | |
| Monex Group, Inc. | 12,156,649 | 27,937 | |
| Morinaga & Co. Ltd. | 344,000 | 16,024 | |
| Nidec Corp. | 324,300 | 31,450 | |
| Nintendo Co. Ltd. | 164,500 | 39,654 | |
| Nippon Telegraph & Telephone Corp. | 875,400 | 38,812 | |
| Nitori Holdings Co. Ltd. | 226,100 | 27,101 | |
| Olympus Corp. | 2,319,700 | 82,949 | |
| ORIX Corp. | 7,795,700 | 123,808 | |
| Rakuten, Inc. | 2,206,000 | 25,506 | |
| Recruit Holdings Co. Ltd. | 1,200,100 | 48,292 | |
| Relo Holdings Corp. | 178,400 | 29,515 | |
| Seven & i Holdings Co. Ltd. | 1,001,400 | 41,853 | |
| Shionogi & Co. Ltd. | 828,600 | 40,912 | |
| SMS Co., Ltd. | 786,600 | 20,559 | |
| Sony Corp. | 3,320,300 | 104,650 | |
| Start Today Co. Ltd. | 2,130,000 | 37,453 | |
| Sundrug Co. Ltd. | 590,500 | 46,567 | |
| Tsuruha Holdings, Inc. | 611,100 | 70,626 | |
| VT Holdings Co. Ltd. | 3,872,500 | 20,864 | |
| Welcia Holdings Co. Ltd. | 1,076,200 | 73,580 | |
| TOTAL JAPAN | 1,658,142 | ||
| Korea (South) - 0.0% | |||
| Samsung Biologics Co. Ltd. (a) | 15,017 | 1,786 | |
| Luxembourg - 1.1% | |||
| Eurofins Scientific SA | 184,739 | 83,938 | |
| Grand City Properties SA | 1,000,215 | 17,573 | |
| TOTAL LUXEMBOURG | 101,511 | ||
| Malta - 0.0% | |||
| Unibet Group PLC unit | 408,700 | 3,606 | |
| Marshall Islands - 0.1% | |||
| Hoegh LNG Partners LP (d) | 715,655 | 12,739 | |
| Netherlands - 4.8% | |||
| Basic-Fit NV | 579,100 | 10,518 | |
| IMCD Group BV | 1,603,400 | 69,358 | |
| ING Groep NV (Certificaten Van Aandelen) | 5,644,700 | 74,098 | |
| Intertrust NV | 1,544,800 | 32,593 | |
| Koninklijke Philips Electronics NV | 1,770,000 | 53,334 | |
| RELX NV | 2,771,838 | 46,740 | |
| Takeaway.com Holding BV (c) | 505,200 | 11,882 | |
| Unilever NV (Certificaten Van Aandelen) (Bearer) (b) | 3,523,200 | 147,665 | |
| Van Lanschot NV unit | 223,700 | 4,590 | |
| TOTAL NETHERLANDS | 450,778 | ||
| New Zealand - 0.9% | |||
| EBOS Group Ltd. | 3,154,998 | 38,467 | |
| Ryman Healthcare Group Ltd. | 6,907,568 | 43,864 | |
| TOTAL NEW ZEALAND | 82,331 | ||
| Norway - 1.5% | |||
| Statoil ASA (b) | 8,457,200 | 138,072 | |
| Philippines - 0.3% | |||
| SM Investments Corp. | 2,042,375 | 28,340 | |
| Romania - 0.2% | |||
| Banca Transilvania SA | 37,524,532 | 21,164 | |
| South Africa - 1.7% | |||
| Aspen Pharmacare Holdings Ltd. | 656,700 | 14,306 | |
| EOH Holdings Ltd. | 2,763,167 | 32,768 | |
| Naspers Ltd. Class N | 665,600 | 111,556 | |
| TOTAL SOUTH AFRICA | 158,630 | ||
| Spain - 3.2% | |||
| Amadeus IT Holding SA Class A | 1,707,300 | 80,590 | |
| Atresmedia Corporacion de Medios de Comunicacion SA | 1,719,200 | 17,702 | |
| CaixaBank SA | 19,118,400 | 57,688 | |
| Grifols SA ADR | 1,152,800 | 16,474 | |
| Hispania Activos Inmobiliarios SA | 1,424,325 | 17,543 | |
| Inditex SA | 2,140,353 | 74,822 | |
| Mediaset Espana Comunicacion SA | 2,836,600 | 31,684 | |
| TOTAL SPAIN | 296,503 | ||
| Sweden - 3.5% | |||
| ASSA ABLOY AB (B Shares) | 3,443,800 | 62,586 | |
| HEXPOL AB (B Shares) | 1,872,700 | 15,395 | |
| Indutrade AB | 1,116,300 | 20,751 | |
| Nordea Bank AB | 5,635,200 | 59,240 | |
| Saab AB (B Shares) | 948,600 | 33,608 | |
| Sandvik AB | 2,242,600 | 25,499 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 2,802,900 | 79,412 | |
| Svenska Handelsbanken AB (A Shares) | 2,567,100 | 34,998 | |
| TOTAL SWEDEN | 331,489 | ||
| Switzerland - 4.2% | |||
| ABB Ltd. (Reg.) | 2,295,470 | 47,357 | |
| Julius Baer Group Ltd. | 919,060 | 37,205 | |
| Kaba Holding AG (B Shares) (Reg.) | 41,400 | 28,763 | |
| Panalpina Welttransport Holding AG | 178,050 | 23,121 | |
| Partners Group Holding AG | 247,326 | 125,219 | |
| Schindler Holding AG (participation certificate) | 175,435 | 32,603 | |
| Syngenta AG (Switzerland) | 132,540 | 53,038 | |
| UBS Group AG | 3,500,790 | 49,529 | |
| TOTAL SWITZERLAND | 396,835 | ||
| Taiwan - 0.0% | |||
| JHL Biotech, Inc. (a) | 1,466,494 | 3,175 | |
| United Kingdom - 13.2% | |||
| BAE Systems PLC | 4,147,100 | 27,478 | |
| BCA Marketplace PLC | 7,762,300 | 17,126 | |
| BHP Billiton PLC | 3,522,108 | 52,962 | |
| Booker Group PLC | 14,197,800 | 31,176 | |
| British American Tobacco PLC: | |||
| (United Kingdom) | 806,500 | 46,223 | |
| sponsored ADR | 211,500 | 24,299 | |
| Bunzl PLC | 1,968,600 | 52,986 | |
| Cineworld Group PLC | 2,055,200 | 13,597 | |
| CMC Markets PLC | 12,077,600 | 28,058 | |
| Compass Group PLC | 1,948,200 | 35,251 | |
| Countryside Properties PLC (a) | 3,312,793 | 9,448 | |
| Dialog Semiconductor PLC (a) | 585,500 | 22,978 | |
| Diploma PLC | 2,312,600 | 26,537 | |
| Domino's Pizza UK & IRL PLC | 3,415,554 | 14,218 | |
| GlaxoSmithKline PLC | 5,155,200 | 101,837 | |
| Howden Joinery Group PLC | 7,187,900 | 32,984 | |
| Imperial Tobacco Group PLC | 1,738,702 | 84,180 | |
| Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. ELS (HSBC Warrant Program) warrants 9/19/19 (a)(c) | 2,466,200 | 25,351 | |
| London Stock Exchange Group PLC | 1,649,436 | 56,731 | |
| Melrose Industries PLC | 35,056,430 | 72,409 | |
| Micro Focus International PLC | 3,845,400 | 100,772 | |
| Moneysupermarket.com Group PLC | 5,210,600 | 16,703 | |
| NCC Group Ltd. | 9,151,300 | 21,226 | |
| Reckitt Benckiser Group PLC | 842,300 | 75,353 | |
| Rex Bionics PLC (a)(d) | 1,297,286 | 357 | |
| Rio Tinto PLC | 1,482,500 | 51,554 | |
| Softcat PLC | 4,890,800 | 19,396 | |
| Spirax-Sarco Engineering PLC | 522,100 | 28,195 | |
| St. James's Place Capital PLC | 2,354,900 | 27,239 | |
| Standard Chartered PLC (United Kingdom) | 9,910,550 | 86,357 | |
| Zoopla Property Group PLC | 8,823,609 | 32,875 | |
| TOTAL UNITED KINGDOM | 1,235,856 | ||
| United States of America - 3.3% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 206,300 | 34,477 | |
| Coty, Inc. Class A | 400,372 | 9,205 | |
| Global Payments, Inc. | 571,800 | 41,467 | |
| Monsanto Co. | 296,000 | 29,828 | |
| MSCI, Inc. | 661,800 | 53,070 | |
| S&P Global, Inc. | 515,600 | 62,826 | |
| Visa, Inc. Class A | 942,300 | 77,749 | |
| TOTAL UNITED STATES OF AMERICA | 308,622 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $7,971,348) | 9,152,431 | ||
| Convertible Preferred Stocks - 0.2% | |||
| Cayman Islands - 0.2% | |||
| China Internet Plus Holdings Ltd. Series A-11 (e) | |||
| (Cost $18,833) | 5,958,244 | 23,003 | |
| Principal Amount (000s) | Value (000s) | ||
| Government Obligations - 0.0% | |||
| United States of America - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 0.27% to 0.33% 11/3/16 to 1/26/17(f) | |||
| (Cost $3,969) | $3,970 | 3,969 | |
| Shares | Value (000s) | ||
| Money Market Funds - 5.6% | |||
| Fidelity Cash Central Fund, 0.41% (g) | 183,263,125 | 183,318 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (g)(h) | 341,525,876 | 341,594 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $524,884) | 524,912 | ||
| TOTAL INVESTMENT PORTFOLIO - 103.4% | |||
| (Cost $8,519,034) | 9,704,315 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.4)% | (322,767) | ||
| NET ASSETS - 100% | $9,381,548 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value (000s) | Unrealized Appreciation/(Depreciation) (000s) | |
| Purchased | |||
| Equity Index Contracts | |||
| 671 TSE TOPIX Index Contracts (Japan) | Dec. 2016 | 89,258 | $3,786 |
The face value of futures purchased as a percentage of Net Assets is 1.0%
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $68,205,000 or 0.7% of net assets.
(d) Affiliated company
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $23,003,000 or 0.2% of net assets.
(f) 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 $3,969,000.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| China Internet Plus Holdings Ltd. Series A-11 | 1/26/15 | $18,833 |
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 |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $978 |
| Fidelity Securities Lending Cash Central Fund | 3,986 |
| Total | $4,964 |
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 (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds* | Dividend Income | Value, end of period |
| Hoegh LNG Partners LP | $11,465 | $-- | $-- | $1,127 | $12,739 |
| Rex Bionics PLC | 976 | -- | 4 | -- | 357 |
| Total | $12,441 | $-- | $4 | $1,127 | $13,096 |
* Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,318,523 | $1,064,985 | $230,535 | $23,003 |
| Consumer Staples | 1,192,465 | 1,070,889 | 121,576 | -- |
| Energy | 444,613 | 109,410 | 335,203 | -- |
| Financials | 1,971,291 | 1,458,024 | 513,267 | -- |
| Health Care | 753,852 | 555,734 | 198,118 | -- |
| Industrials | 1,359,313 | 1,048,987 | 310,326 | -- |
| Information Technology | 1,107,250 | 908,099 | 199,151 | -- |
| Materials | 494,175 | 259,181 | 234,994 | -- |
| Real Estate | 172,087 | 172,087 | -- | -- |
| Telecommunication Services | 262,456 | 59,875 | 202,581 | -- |
| Utilities | 99,409 | 99,409 | -- | -- |
| Government Obligations | 3,969 | -- | 3,969 | -- |
| Money Market Funds | 524,912 | 524,912 | -- | -- |
| Total Investments in Securities: | $9,704,315 | $7,331,592 | $2,349,720 | $23,003 |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $3,786 | $3,786 | $-- | $-- |
| Total Assets | $3,786 | $3,786 | $-- | $-- |
| Total Derivative Instruments: | $3,786 | $3,786 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 (000s) |
| Level 1 to Level 2 | $299,696 |
| Level 2 to Level 1 | $1,813,808 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $3,786 | $0 |
| Total Equity Risk | 3,786 | 0 |
| Total Value of Derivatives | $3,786 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | October 31, 2016 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $320,240) — See accompanying schedule: Unaffiliated issuers (cost $7,975,670) | $9,166,307 | |
| Fidelity Central Funds (cost $524,884) | 524,912 | |
| Other affiliated issuers (cost $18,480) | 13,096 | |
| Total Investments (cost $8,519,034) | $9,704,315 | |
| Foreign currency held at value (cost $27,244) | 27,247 | |
| Receivable for investments sold | 26,345 | |
| Receivable for fund shares sold | 3,500 | |
| Dividends receivable | 24,713 | |
| Distributions receivable from Fidelity Central Funds | 113 | |
| Receivable for daily variation margin for derivative instruments | 160 | |
| Prepaid expenses | 26 | |
| Other receivables | 4,319 | |
| Total assets | 9,790,738 | |
| Liabilities | ||
| Payable for investments purchased | $47,907 | |
| Payable for fund shares redeemed | 11,655 | |
| Accrued management fee | 5,770 | |
| Distribution and service plan fees payable | 87 | |
| Other affiliated payables | 1,406 | |
| Other payables and accrued expenses | 774 | |
| Collateral on securities loaned, at value | 341,591 | |
| Total liabilities | 409,190 | |
| Net Assets | $9,381,548 | |
| Net Assets consist of: | ||
| Paid in capital | $8,680,192 | |
| Undistributed net investment income | 142,052 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (627,108) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,186,412 | |
| Net Assets | $9,381,548 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($236,127 ÷ 6,280.6 shares) | $37.60 | |
| Maximum offering price per share (100/94.25 of $37.60) | $39.89 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($34,959 ÷ 936.3 shares) | $37.34 | |
| Maximum offering price per share (100/96.50 of $37.34) | $38.69 | |
| Class C: | ||
| Net Asset Value and offering price per share ($26,091 ÷ 705.9 shares)(a) | $36.96 | |
| International Discovery: | ||
| Net Asset Value, offering price and redemption price per share ($6,421,194 ÷ 169,373.8 shares) | $37.91 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($1,879,921 ÷ 49,660.9 shares) | $37.86 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($745,324 ÷ 19,707.5 shares) | $37.82 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($37,932 ÷ 1,002.5 shares) | $37.84 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended October 31, 2016 | |
| Investment Income | ||
| Dividends (including $1,127 earned from other affiliated issuers) | $238,573 | |
| Special dividends | 37,704 | |
| Interest | 46 | |
| Income from Fidelity Central Funds | 4,964 | |
| Income before foreign taxes withheld | 281,287 | |
| Less foreign taxes withheld | (21,356) | |
| Total income | 259,931 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $67,411 | |
| Performance adjustment | 10,738 | |
| Transfer agent fees | 15,638 | |
| Distribution and service plan fees | 1,148 | |
| Accounting and security lending fees | 1,802 | |
| Custodian fees and expenses | 1,336 | |
| Independent trustees' fees and expenses | 44 | |
| Registration fees | 201 | |
| Audit | 124 | |
| Legal | 33 | |
| Miscellaneous | 85 | |
| Total expenses before reductions | 98,560 | |
| Expense reductions | (875) | 97,685 |
| Net investment income (loss) | 162,246 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (532,206) | |
| Fidelity Central Funds | 31 | |
| Other affiliated issuers | (19) | |
| Foreign currency transactions | 2,961 | |
| Futures contracts | (12,614) | |
| Total net realized gain (loss) | (541,847) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (122,679) | |
| Assets and liabilities in foreign currencies | (2,928) | |
| Futures contracts | (5,417) | |
| Total change in net unrealized appreciation (depreciation) | (131,024) | |
| Net gain (loss) | (672,871) | |
| Net increase (decrease) in net assets resulting from operations | $(510,625) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended October 31, 2016 | Year ended October 31, 2015 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $162,246 | $149,838 |
| Net realized gain (loss) | (541,847) | 245,770 |
| Change in net unrealized appreciation (depreciation) | (131,024) | 655 |
| Net increase (decrease) in net assets resulting from operations | (510,625) | 396,263 |
| Distributions to shareholders from net investment income | (113,434) | (74,589) |
| Distributions to shareholders from net realized gain | (1,362) | – |
| Total distributions | (114,796) | (74,589) |
| Share transactions - net increase (decrease) | (960,274) | (353,147) |
| Redemption fees | 70 | 95 |
| Total increase (decrease) in net assets | (1,585,625) | (31,378) |
| Net Assets | ||
| Beginning of period | 10,967,173 | 10,998,551 |
| End of period | $9,381,548 | $10,967,173 |
| Other Information | ||
| Undistributed net investment income end of period | $142,052 | $108,769 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.78 | $38.70 | $39.49 | $31.66 | $29.43 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .47B | .40C | .53D | .34 | .41 |
| Net realized and unrealized gain (loss) | (2.38) | .79 | (.67) | 7.97 | 2.11 |
| Total from investment operations | (1.91) | 1.19 | (.14) | 8.31 | 2.52 |
| Distributions from net investment income | (.27) | (.11) | (.33) | (.45) | (.29) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.27)E | (.11) | (.65)F | (.48) | (.29) |
| Redemption fees added to paid in capitalA,G | – | – | – | – | – |
| Net asset value, end of period | $37.60 | $39.78 | $38.70 | $39.49 | $31.66 |
| Total ReturnH,I | (4.83)% | 3.09% | (.36)% | 26.59% | 8.70% |
| Ratios to Average Net AssetsJ,K | |||||
| Expenses before reductions | 1.35% | 1.33% | 1.28% | 1.35% | 1.34% |
| Expenses net of fee waivers, if any | 1.35% | 1.33% | 1.28% | 1.35% | 1.34% |
| Expenses net of all reductions | 1.34% | 1.32% | 1.28% | 1.33% | 1.31% |
| Net investment income (loss) | 1.26%B | 1.00%C | 1.35%D | .97% | 1.41% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $236 | $283 | $297 | $347 | $299 |
| Portfolio turnover rateL | 50%M | 60%M | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .88%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .69%.
D Net Investment income per share reflects a large, non-recurring dividend 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 .80%.
E Total distributions of $.27 per share is comprised of distributions from net investment income of $.269 and distributions from net realized gain of $.005 per share.
F Total distributions of $.65 per share is comprised of distributions from net investment income of $.334 and distributions from net realized gain of $.311 per share.
G Amount represents less than $.005 per share.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J 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.
K 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.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.51 | $38.43 | $39.23 | $31.42 | $29.18 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .38B | .30C | .44D | .26 | .34 |
| Net realized and unrealized gain (loss) | (2.37) | .80 | (.68) | 7.92 | 2.09 |
| Total from investment operations | (1.99) | 1.10 | (.24) | 8.18 | 2.43 |
| Distributions from net investment income | (.17) | (.02) | (.25) | (.34) | (.19) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.18) | (.02) | (.56) | (.37) | (.19) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $37.34 | $39.51 | $38.43 | $39.23 | $31.42 |
| Total ReturnF,G | (5.07)% | 2.86% | (.60)% | 26.31% | 8.41% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.58% | 1.57% | 1.51% | 1.59% | 1.59% |
| Expenses net of fee waivers, if any | 1.58% | 1.57% | 1.51% | 1.59% | 1.59% |
| Expenses net of all reductions | 1.57% | 1.56% | 1.51% | 1.57% | 1.56% |
| Net investment income (loss) | 1.02%B | .76%C | 1.11%D | .73% | 1.16% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $35 | $43 | $49 | $53 | $46 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .64%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .45%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .56%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the sales charges.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.14 | $38.25 | $39.07 | $31.32 | $29.08 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19B | .10C | .23D | .08 | .19 |
| Net realized and unrealized gain (loss) | (2.37) | .79 | (.66) | 7.90 | 2.09 |
| Total from investment operations | (2.18) | .89 | (.43) | 7.98 | 2.28 |
| Distributions from net investment income | – | – | (.08) | (.20) | (.04) |
| Distributions from net realized gain | – | – | (.31) | (.03) | – |
| Total distributions | – | – | (.39) | (.23) | (.04) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $36.96 | $39.14 | $38.25 | $39.07 | $31.32 |
| Total ReturnF,G | (5.57)% | 2.33% | (1.10)% | 25.65% | 7.86% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 2.10% | 2.09% | 2.03% | 2.10% | 2.09% |
| Expenses net of fee waivers, if any | 2.10% | 2.09% | 2.03% | 2.09% | 2.09% |
| Expenses net of all reductions | 2.09% | 2.08% | 2.02% | 2.07% | 2.06% |
| Net investment income (loss) | .50%B | .24%C | .60%D | .23% | .66% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $26 | $32 | $35 | $36 | $30 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .13%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.06) %.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .05%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.12 | $39.03 | $39.82 | $31.91 | $29.69 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .61B | .54C | .67D | .47 | .51 |
| Net realized and unrealized gain (loss) | (2.41) | .81 | (.68) | 8.02 | 2.12 |
| Total from investment operations | (1.80) | 1.35 | (.01) | 8.49 | 2.63 |
| Distributions from net investment income | (.41) | (.26) | (.47) | (.55) | (.41) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.41)E | (.26) | (.78) | (.58) | (.41) |
| Redemption fees added to paid in capitalA,F | – | – | – | – | – |
| Net asset value, end of period | $37.91 | $40.12 | $39.03 | $39.82 | $31.91 |
| Total ReturnG | (4.53)% | 3.47% | (.01)% | 27.03% | 9.03% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.00% | .99% | .93% | 1.00% | 1.01% |
| Expenses net of fee waivers, if any | 1.00% | .99% | .93% | 1.00% | 1.01% |
| Expenses net of all reductions | .99% | .98% | .93% | .98% | .98% |
| Net investment income (loss) | 1.61%B | 1.34%C | 1.69%D | 1.32% | 1.73% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $6,421 | $7,209 | $7,464 | $7,800 | $5,965 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.23%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.15%.
E Total distributions of $.41 per share is comprised of distributions from net investment income of $.409 and distributions from net realized gain of $.005 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class K
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.06 | $38.97 | $39.76 | $31.87 | $29.66 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .66B | .59C | .72D | .52 | .57 |
| Net realized and unrealized gain (loss) | (2.39) | .81 | (.67) | 8.01 | 2.11 |
| Total from investment operations | (1.73) | 1.40 | .05 | 8.53 | 2.68 |
| Distributions from net investment income | (.46) | (.31) | (.53) | (.61) | (.47) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.47) | (.31) | (.84) | (.64) | (.47) |
| Redemption fees added to paid in capitalA,E | – | – | – | – | – |
| Net asset value, end of period | $37.86 | $40.06 | $38.97 | $39.76 | $31.87 |
| Total ReturnF | (4.38)% | 3.61% | .13% | 27.23% | 9.24% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | .86% | .86% | .80% | .85% | .83% |
| Expenses net of fee waivers, if any | .86% | .86% | .80% | .85% | .83% |
| Expenses net of all reductions | .85% | .85% | .79% | .83% | .80% |
| Net investment income (loss) | 1.74%B | 1.47%C | 1.83%D | 1.47% | 1.91% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $1,880 | $2,308 | $2,464 | $2,576 | $1,776 |
| Portfolio turnover rateI | 50%J | 60%J | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.16%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.28%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $40.03 | $38.96 | $39.76 | $31.87 | $29.65 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .61B | .53C | .67D | .47 | .52 |
| Net realized and unrealized gain (loss) | (2.40) | .80 | (.68) | 8.01 | 2.11 |
| Total from investment operations | (1.79) | 1.33 | (.01) | 8.48 | 2.63 |
| Distributions from net investment income | (.42) | (.26) | (.48) | (.56) | (.41) |
| Distributions from net realized gain | (.01) | – | (.31) | (.03) | – |
| Total distributions | (.42)E | (.26) | (.79) | (.59) | (.41) |
| Redemption fees added to paid in capitalA,F | – | – | – | – | – |
| Net asset value, end of period | $37.82 | $40.03 | $38.96 | $39.76 | $31.87 |
| Total ReturnG | (4.52)% | 3.44% | (.01)% | 27.03% | 9.07% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 1.00% | 1.00% | .93% | 1.00% | 1.00% |
| Expenses net of fee waivers, if any | 1.00% | .99% | .93% | 1.00% | 1.00% |
| Expenses net of all reductions | .99% | .98% | .93% | .97% | .97% |
| Net investment income (loss) | 1.60%B | 1.33%C | 1.69%D | 1.33% | 1.75% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $745 | $1,061 | $650 | $476 | $294 |
| Portfolio turnover rateJ | 50%K | 60%K | 57% | 65% | 68% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.22%.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%.
D Net Investment income per share reflects a large, non-recurring dividend 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 1.14%.
E Total distributions of $.42 per share is comprised of distributions from net investment income of $.418 and distributions from net realized gain of $.005 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
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. 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Discovery Fund Class Z
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $40.03 | $38.96 | $39.77 | $37.22 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .66C | .59D | .72E | .07 |
| Net realized and unrealized gain (loss) | (2.38) | .80 | (.68) | 2.48 |
| Total from investment operations | (1.72) | 1.39 | .04 | 2.55 |
| Distributions from net investment income | (.46) | (.32) | (.54) | – |
| Distributions from net realized gain | (.01) | – | (.31) | – |
| Total distributions | (.47) | (.32) | (.85) | – |
| Redemption fees added to paid in capitalB,F | – | – | – | – |
| Net asset value, end of period | $37.84 | $40.03 | $38.96 | $39.77 |
| Total ReturnG,H | (4.36)% | 3.58% | .12% | 6.85% |
| Ratios to Average Net AssetsI,J | ||||
| Expenses before reductions | .86% | .86% | .80% | .85%K |
| Expenses net of fee waivers, if any | .86% | .86% | .80% | .85%K |
| Expenses net of all reductions | .85% | .85% | .79% | .83%K |
| Net investment income (loss) | 1.74%C | 1.47%D | 1.83%E | .76%K |
| Supplemental Data | ||||
| Net assets, end of period (in millions) | $38 | $30 | $35 | $– |
| Portfolio turnover rateL | 50%M | 60%M | 57% | 65% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
D Net Investment income per share reflects a large, non-recurring dividend which amounted to $.12 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.16%.
E Net Investment income per share reflects a large, non-recurring dividend which amounted to $.21 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.28%.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
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 Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
(Amounts in thousands except percentages)
1. Organization.
Fidelity International Discovery 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, International Discovery, Class K, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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. 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 and swaps 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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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, passive foreign investment companies (PFIC), market discount, certain foreign taxes, redemptions in-kind, 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 | $1,532,643 |
| Gross unrealized depreciation | (373,203) |
| Net unrealized appreciation (depreciation) on securities | $1,159,440 |
| Tax Cost | $8,544,875 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $153,843 |
| Capital loss carryforward | $(612,706) |
| Net unrealized appreciation (depreciation) on securities and other investments | $1,160,571 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(49,104) |
| No expiration | |
| Short-term | (473,137) |
| Long-term | (90,465) |
| Total no expiration | (563,602) |
| Total capital loss carryforward | $(612,706) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $114,796 | $ 74,589 |
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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
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.
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.
During the period the Fund recognized net realized gain (loss) of $(12,614) a change in net unrealized appreciation (depreciation) of $(5,417) 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 and in-kind transactions, aggregated $4,860,976 and $5,449,080, respectively.
Redemptions In-Kind. During the period, 1,487 shares of the Fund held by an unaffiliated entity were redeemed in-kind for investments and cash with a value of $55,670. The net realized gain of $10,064 on investments delivered through the in-kind redemptions is included in the accompanying Statement of Operations. The amount of the redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 4,932 shares of the Fund held by unaffiliated entities were redeemed for investments, including accrued interest, and cash with a value of $197,848. The Fund had a net gain of $41,387 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. The Fund recognized no gain or loss for federal income tax purposes.
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 .424% 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 International Discovery as compared to its benchmark index, the MSCI EAFE Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .78% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $642 | $– |
| Class T | .25% | .25% | 192 | – |
| Class B | .75% | .25% | 11 | 8 |
| Class C | .75% | .25% | 303 | 30 |
| $1,148 | $38 |
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 by FDC |
|
| Class A | $51 |
| Class T | 4 |
| Class B(a) | –(b) |
| Class C(a) | 3 |
| $58 |
(a) 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.
(b) In the amount of less than five hundred dollars.
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, except for Class K and Class Z. FIIOC receives an asset-based fee of Class K's and Class Z'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 Class-Level Average Net Assets |
|
| Class A | $719 | .28 |
| Class T | 103 | .27 |
| Class B | 3 | .28 |
| Class C | 86 | .28 |
| International Discovery | 12,160 | .18 |
| Class K | 981 | .05 |
| Class I | 1,571 | .19 |
| Class Z | 15 | .05 |
| $15,638 |
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 $10 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
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 $26 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $3,986, including $6 from securities loaned to FCM.
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 $797 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $78.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $1,912 | $864 |
| Class T | 184 | 23 |
| International Discovery | 73,519 | 49,040 |
| Class K | 26,239 | 19,835 |
| Class I | 11,205 | 4,544 |
| Class Z | 375 | 283 |
| Total | $113,434 | $74,589 |
| From net realized gain | ||
| Class A | $36 | $– |
| Class T | 5 | – |
| International Discovery | 899 | – |
| Class K | 284 | – |
| Class I | 134 | – |
| Class Z | 4 | – |
| Total | $1,362 | $– |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 885 | 1,331 | $33,250 | $53,289 |
| Reinvestment of distributions | 48 | 22 | 1,922 | 843 |
| Shares redeemed | (1,758) | (1,915) | (66,337) | (76,178) |
| Net increase (decrease) | (825) | (562) | $(31,165) | $(22,046) |
| Class T | ||||
| Shares sold | 126 | 178 | $4,736 | $7,105 |
| Reinvestment of distributions | 5 | 1 | 183 | 23 |
| Shares redeemed | (282) | (355) | (10,546) | (13,954) |
| Net increase (decrease) | (151) | (176) | $(5,627) | $(6,826) |
| Class B | ||||
| Shares sold | 1 | 1 | $16 | $53 |
| Shares redeemed | (58) | (64) | (2,118) | (2,536) |
| Net increase (decrease) | (57) | (63) | $(2,102) | $(2,483) |
| Class C | ||||
| Shares sold | 193 | 201 | $7,216 | $7,918 |
| Shares redeemed | (298) | (314) | (11,125) | (12,486) |
| Net increase (decrease) | (105) | (113) | $(3,909) | $(4,568) |
| International Discovery | ||||
| Shares sold | 18,319 | 20,827 | $696,598 | $832,233 |
| Reinvestment of distributions | 1,781 | 1,199 | 70,961 | 46,913 |
| Shares redeemed | (30,424) | (33,573) | (1,154,409) | (1,345,593) |
| Net increase (decrease) | (10,324) | (11,547) | $(386,850) | $(466,447) |
| Class K | ||||
| Shares sold | 12,391 | 15,372 | $466,861 | $613,737 |
| Reinvestment of distributions | 667 | 508 | 26,523 | 19,835 |
| Shares redeemed | (21,012)(a) | (21,494)(b) | (800,081)(a) | (860,632)(b) |
| Net increase (decrease) | (7,954) | (5,614) | $(306,697) | $(227,060) |
| Class I | ||||
| Shares sold | 8,874 | 15,392 | $334,588 | $602,134 |
| Reinvestment of distributions | 52 | 33 | 2,069 | 1,286 |
| Shares redeemed | (15,719) | (5,606) | (569,974) | (221,504) |
| Net increase (decrease) | (6,793) | 9,819 | $(233,317) | $381,916 |
| Class Z | ||||
| Shares sold | 497 | 402 | $18,760 | $16,312 |
| Reinvestment of distributions | 10 | 7 | 379 | 283 |
| Shares redeemed | (256) | (559) | (9,746) | (22,228) |
| Net increase (decrease) | 251 | (150) | $9,393 | $(5,633) |
(a) Amount includes in-kind redemptions (see Note 5: Redemptions In-Kind).
(b) Amount includes in-kind redemptions (see Note 5: Prior Fiscal Year Redemptions In-Kind).
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.
At the end of the period, Strategic Advisers International Fund was the owner of record of approximately 13% 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 20% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Discovery Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity International Discovery Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity International Discovery Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 13, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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, and (2) ongoing costs, including 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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.32% | |||
| Actual | $1,000.00 | $996.30 | $6.62 | |
| Hypothetical-C | $1,000.00 | $1,018.50 | $6.70 | |
| Class T | 1.55% | |||
| Actual | $1,000.00 | $994.90 | $7.77 | |
| Hypothetical-C | $1,000.00 | $1,017.34 | $7.86 | |
| Class C | 2.07% | |||
| Actual | $1,000.00 | $992.20 | $10.37 | |
| Hypothetical-C | $1,000.00 | $1,014.73 | $10.48 | |
| International Discovery | .97% | |||
| Actual | $1,000.00 | $997.90 | $4.87 | |
| Hypothetical-C | $1,000.00 | $1,020.26 | $4.93 | |
| Class K | .83% | |||
| Actual | $1,000.00 | $998.70 | $4.17 | |
| Hypothetical-C | $1,000.00 | $1,020.96 | $4.22 | |
| Class I | .97% | |||
| Actual | $1,000.00 | $997.90 | $4.87 | |
| Hypothetical-C | $1,000.00 | $1,020.26 | $4.93 | |
| Class Z | .84% | |||
| Actual | $1,000.00 | $998.70 | $4.22 | |
| Hypothetical-C | $1,000.00 | $1,020.91 | $4.27 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity International Discovery 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 International Discovery Fund | ||||
| Class A | 12/12/2016 | 12/09/2016 | $0.470 | $0.049 |
| Class T | 12/12/2016 | 12/09/2016 | $0.369 | $0.049 |
| Class C | 12/12/2016 | 12/09/2016 | $0.134 | $0.049 |
| International Discovery | 12/12/2016 | 12/09/2016 | $0.612 | $0.049 |
| Class K | 12/12/2016 | 12/09/2016 | $0.664 | $0.049 |
| Class I | 12/12/2016 | 12/09/2016 | $0.606 | $0.049 |
| Class Z | 12/12/2016 | 12/09/2016 | $0.668 | $0.049 |
Class A designates 6%; Class T designates 8%; Class C designates 0%; International Discovery designates 4%; Class K designates 3%; Class I designates 4% and Class Z designates 3% of the dividends distributed in during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 100%; Class T designates 100%; Class C designates 0%; International Discovery designates 100%; Class K designates 100%; Class I designates 100%; and Class Z designates 100%; of dividends distributed 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 | |
| Fidelity International Discovery Fund | |||
| Class A | 12/07/2015 | $0.3233 | $0.0493 |
| Class T | 12/07/2015 | $0.2243 | $0.0493 |
| Class C | 12/07/2015 | $0.0000 | $0.0000 |
| International Discovery | 12/07/2015 | $0.4633 | $0.0493 |
| Class K | 12/07/2015 | $0.5163 | $0.0493 |
| Class I | 12/07/2015 | $0.4723 | $0.0493 |
| Class Z | 12/07/2015 | $0.5153 | $0.0493 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Discovery Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Discovery Fund
Fidelity International Discovery Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
IGI-K-ANN-1216
1.863307.108
|
Fidelity Advisor® International Growth Fund - Class A, Class T, Class C, Class I and Class Z Annual Report October 31, 2016 Class A, Class T, Class C, Class I and Class Z are classes of Fidelity® International Growth Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Class A (incl. 5.75% sales charge) | (8.78)% | 5.55% | 0.95% |
| Class T (incl. 3.50% sales charge) | (6.95)% | 5.73% | 0.93% |
| Class C (incl. contingent deferred sales charge) | (4.94)% | 5.98% | 0.84% |
| Class I | (2.87)% | 7.11% | 1.89% |
| Class Z | (2.73)% | 7.21% | 1.94% |
A From November 1, 2007
Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
The initial offering of Class Z shares took place on August 13, 2013. Returns prior to August 13, 2013, are those of Class I.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® International Growth Fund - Class A on November 1, 2007, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Growth Index performed over the same period.
| Period Ending Values | ||
|
| $10,890 | Fidelity Advisor® International Growth Fund - Class A |
|
| $9,972 | MSCI EAFE Growth Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: The fund’s share classes (excluding sales charges, if applicable) returned about -3% to -4% for the fiscal year, with most results roughly in line with the -3.07% return of the benchmark MSCI EAFE Growth Index. Relative to the benchmark, the fund was hurt the most by its positioning in Japan, where subpar security selection hampered results, as did the effects of a stronger yen, which reduced returns for U.S. investors in Japanese securities. Poor stock picking in the U.K. also detracted – especially a position in diversified retailer Associated British Foods – even as a weaker British pound tempered the fund's underperformance. On the positive side, we benefited from out-of-benchmark holdings in the U.S. – where many of our globally oriented investments happen to be domiciled – and emerging markets. In sector terms, the fund was hurt by stock picking in the real estate category as well as a combination of security selection and sector allocations in industrials and health care. Within health care, the fund was hindered by investments in drug manufacturers Novo Nordisk and Novartis, based in Denmark and Switzerland, respectively. In contrast, the fund was well positioned in information technology and also saw good stock selection in consumer discretionary. Within technology, fund holding Taiwan Semiconductor Manufacturing gained steadily. Elsewhere, the fund’s holding in Keyence, a Japanese maker of sensors for factory automation, also added relative value.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| United States of America* | 23.5% | |
| Japan | 13.9% | |
| Switzerland | 12.4% | |
| United Kingdom | 8.7% | |
| Spain | 5.2% | |
| Sweden | 4.1% | |
| Australia | 4.0% | |
| Belgium | 4.0% | |
| Germany | 3.9% | |
| Other | 20.3% | |
* 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 April 30, 2016 | ||
| United States of America* | 20.8% | |
| Japan | 14.1% | |
| United Kingdom | 13.2% | |
| Switzerland | 12.7% | |
| Spain | 4.9% | |
| Belgium | 4.5% | |
| Sweden | 4.4% | |
| Australia | 4.0% | |
| Denmark | 3.3% | |
| Other | 18.1% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 95.4 | 97.3 |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.6 | 2.7 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 5.5 | 4.9 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 3.5 | 3.5 |
| Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 3.1 | 3.5 |
| CSL Ltd. (Australia, Biotechnology) | 3.0 | 2.9 |
| Inditex SA (Spain, Specialty Retail) | 2.7 | 2.6 |
| Novartis AG (Switzerland, Pharmaceuticals) | 2.6 | 2.9 |
| Reckitt Benckiser Group PLC (United Kingdom, Household Products) | 2.4 | 3.2 |
| Visa, Inc. Class A (United States of America, IT Services) | 2.4 | 2.0 |
| SAP AG (Germany, Software) | 2.2 | 1.9 |
| ASSA ABLOY AB (B Shares) (Sweden, Building Products) | 2.2 | 2.6 |
| 29.6 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Consumer Staples | 19.8 | 20.4 |
| Health Care | 17.8 | 19.0 |
| Information Technology | 16.2 | 14.2 |
| Consumer Discretionary | 12.7 | 13.3 |
| Industrials | 11.1 | 11.5 |
| Financials | 9.2 | 13.5 |
| Materials | 5.4 | 4.7 |
| Real Estate | 2.5 | 0.0 |
| Telecommunication Services | 0.4 | 0.3 |
| Energy | 0.3 | 0.4 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 95.4% | |||
| Shares | Value | ||
| Australia - 4.0% | |||
| CSL Ltd. | 666,940 | $50,992,870 | |
| Sydney Airport unit | 1,169,545 | 5,569,352 | |
| Transurban Group unit | 1,534,773 | 12,130,344 | |
| TOTAL AUSTRALIA | 68,692,566 | ||
| Austria - 1.6% | |||
| Andritz AG | 392,421 | 20,526,674 | |
| Buwog-Gemeinnuetzige Wohnung | 313,203 | 7,569,166 | |
| TOTAL AUSTRIA | 28,095,840 | ||
| Belgium - 4.0% | |||
| Anheuser-Busch InBev SA NV | 525,691 | 60,333,432 | |
| KBC Groep NV | 136,651 | 8,326,979 | |
| TOTAL BELGIUM | 68,660,411 | ||
| Canada - 1.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 132,400 | 6,651,094 | |
| Franco-Nevada Corp. | 99,000 | 6,479,691 | |
| Pason Systems, Inc. | 446,800 | 5,079,922 | |
| TOTAL CANADA | 18,210,707 | ||
| Cayman Islands - 0.9% | |||
| 58.com, Inc. ADR (a)(b) | 139,970 | 5,857,745 | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | 97,500 | 9,914,775 | |
| TOTAL CAYMAN ISLANDS | 15,772,520 | ||
| Denmark - 2.2% | |||
| Jyske Bank A/S (Reg.) | 182,600 | 8,286,771 | |
| Novo Nordisk A/S Series B sponsored ADR | 841,100 | 29,892,694 | |
| TOTAL DENMARK | 38,179,465 | ||
| Finland - 0.3% | |||
| Tikkurila Oyj | 298,300 | 5,746,902 | |
| France - 1.0% | |||
| Essilor International SA (b) | 159,360 | 17,913,594 | |
| Germany - 3.9% | |||
| Bayer AG | 289,500 | 28,744,364 | |
| SAP AG | 442,473 | 38,981,619 | |
| TOTAL GERMANY | 67,725,983 | ||
| Hong Kong - 2.1% | |||
| AIA Group Ltd. | 5,706,000 | 36,014,042 | |
| India - 0.8% | |||
| Housing Development Finance Corp. Ltd. | 629,768 | 13,139,078 | |
| Ireland - 3.3% | |||
| CRH PLC sponsored ADR | 946,466 | 30,570,852 | |
| James Hardie Industries PLC CDI | 1,702,755 | 25,426,459 | |
| TOTAL IRELAND | 55,997,311 | ||
| Isle of Man - 0.5% | |||
| Playtech Ltd. | 671,500 | 7,627,381 | |
| Israel - 0.3% | |||
| Azrieli Group | 118,800 | 5,060,063 | |
| Italy - 0.7% | |||
| Azimut Holding SpA | 234,600 | 3,765,120 | |
| Interpump Group SpA | 532,426 | 8,544,961 | |
| TOTAL ITALY | 12,310,081 | ||
| Japan - 13.9% | |||
| Astellas Pharma, Inc. | 1,984,100 | 29,447,740 | |
| DENSO Corp. | 458,400 | 19,954,191 | |
| East Japan Railway Co. | 186,900 | 16,497,886 | |
| Hoya Corp. | 358,300 | 14,981,839 | |
| Japan Tobacco, Inc. | 689,300 | 26,252,162 | |
| Keyence Corp. | 44,662 | 32,818,287 | |
| Misumi Group, Inc. | 480,400 | 8,781,604 | |
| Mitsui Fudosan Co. Ltd. | 785,000 | 17,893,988 | |
| Nintendo Co. Ltd. | 33,500 | 8,075,516 | |
| Olympus Corp. | 438,900 | 15,694,431 | |
| OSG Corp. (b) | 433,700 | 9,259,600 | |
| Seven Bank Ltd. | 1,485,500 | 4,575,346 | |
| SHO-BOND Holdings Co. Ltd. | 207,600 | 10,036,540 | |
| USS Co. Ltd. | 1,413,900 | 23,971,719 | |
| TOTAL JAPAN | 238,240,849 | ||
| Kenya - 0.4% | |||
| Safaricom Ltd. | 37,269,700 | 7,277,949 | |
| Korea (South) - 0.7% | |||
| BGFretail Co. Ltd. | 72,968 | 11,100,657 | |
| Samsung Biologics Co. Ltd. (a) | 2,753 | 327,350 | |
| TOTAL KOREA (SOUTH) | 11,428,007 | ||
| Mexico - 0.6% | |||
| Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 114,755 | 10,978,611 | |
| Netherlands - 1.1% | |||
| ASML Holding NV (Netherlands) | 183,300 | 19,392,036 | |
| South Africa - 1.8% | |||
| Clicks Group Ltd. | 815,116 | 7,586,692 | |
| Naspers Ltd. Class N | 136,100 | 22,810,597 | |
| TOTAL SOUTH AFRICA | 30,397,289 | ||
| Spain - 5.2% | |||
| Amadeus IT Holding SA Class A | 534,200 | 25,215,976 | |
| Hispania Activos Inmobiliarios SA | 322,524 | 3,972,449 | |
| Inditex SA | 1,343,490 | 46,965,520 | |
| Merlin Properties Socimi SA | 395,600 | 4,446,924 | |
| Prosegur Compania de Seguridad SA (Reg.) | 1,089,149 | 7,914,960 | |
| TOTAL SPAIN | 88,515,829 | ||
| Sweden - 4.1% | |||
| ASSA ABLOY AB (B Shares) | 2,036,683 | 37,013,568 | |
| Fagerhult AB | 345,544 | 8,799,136 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 440,100 | 12,468,968 | |
| Svenska Handelsbanken AB (A Shares) | 905,220 | 12,340,977 | |
| TOTAL SWEDEN | 70,622,649 | ||
| Switzerland - 12.4% | |||
| Nestle SA (Reg. S) | 1,296,536 | 94,016,902 | |
| Novartis AG | 637,428 | 45,236,724 | |
| Roche Holding AG (participation certificate) | 230,298 | 52,895,237 | |
| Schindler Holding AG: | |||
| (participation certificate) | 96,513 | 17,936,174 | |
| (Reg.) | 18,350 | 3,393,512 | |
| TOTAL SWITZERLAND | 213,478,549 | ||
| Taiwan - 0.9% | |||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 2,474,000 | 14,861,013 | |
| United Kingdom - 8.7% | |||
| Associated British Foods PLC | 114,100 | 3,438,390 | |
| BAE Systems PLC | 1,857,800 | 12,309,328 | |
| Berendsen PLC | 774,873 | 9,161,974 | |
| Howden Joinery Group PLC | 775,100 | 3,556,760 | |
| Informa PLC | 1,883,631 | 15,504,920 | |
| InterContinental Hotel Group PLC ADR (b) | 910,546 | 35,921,040 | |
| Prudential PLC | 1,292,945 | 21,099,391 | |
| Reckitt Benckiser Group PLC | 457,445 | 40,923,259 | |
| Rightmove PLC | 85,600 | 3,913,324 | |
| Shaftesbury PLC | 362,533 | 4,069,099 | |
| TOTAL UNITED KINGDOM | 149,897,485 | ||
| United States of America - 18.9% | |||
| Alphabet, Inc. Class A | 32,536 | 26,350,906 | |
| Autoliv, Inc. (b) | 178,869 | 17,310,942 | |
| Berkshire Hathaway, Inc. Class B (a) | 121,884 | 17,587,861 | |
| China Biologic Products, Inc. (a) | 83,466 | 9,858,169 | |
| Domino's Pizza, Inc. | 86,790 | 14,688,340 | |
| Martin Marietta Materials, Inc. | 68,500 | 12,698,530 | |
| MasterCard, Inc. Class A | 335,200 | 35,873,104 | |
| Mohawk Industries, Inc. (a) | 117,200 | 21,599,960 | |
| Molson Coors Brewing Co. Class B | 107,000 | 11,107,670 | |
| Moody's Corp. | 103,800 | 10,433,976 | |
| MSCI, Inc. | 118,500 | 9,502,515 | |
| Philip Morris International, Inc. | 246,908 | 23,811,808 | |
| PriceSmart, Inc. | 86,955 | 7,908,557 | |
| ResMed, Inc. (b) | 167,700 | 10,023,429 | |
| Reynolds American, Inc. | 408,900 | 22,522,212 | |
| S&P Global, Inc. | 111,300 | 13,561,905 | |
| Sherwin-Williams Co. | 46,500 | 11,385,990 | |
| SS&C Technologies Holdings, Inc. | 273,000 | 8,716,890 | |
| Visa, Inc. Class A | 490,860 | 40,500,859 | |
| TOTAL UNITED STATES OF AMERICA | 325,443,623 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $1,532,438,842) | 1,639,679,833 | ||
| Money Market Funds - 7.8% | |||
| Fidelity Cash Central Fund, 0.41% (c) | 67,621,343 | 67,641,629 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 65,512,149 | 65,525,251 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $133,148,457) | 133,166,880 | ||
| TOTAL INVESTMENT PORTFOLIO - 103.2% | |||
| (Cost $1,665,587,299) | 1,772,846,713 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.2)% | (54,858,116) | ||
| NET ASSETS - 100% | $1,717,988,597 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $153,079 |
| Fidelity Securities Lending Cash Central Fund | 587,874 |
| Total | $740,953 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $218,727,229 | $218,727,229 | $-- | $-- |
| Consumer Staples | 339,100,414 | 204,160,253 | 134,940,161 | -- |
| Energy | 5,079,922 | 5,079,922 | -- | -- |
| Financials | 158,633,961 | 125,193,593 | 33,440,368 | -- |
| Health Care | 306,008,441 | 149,357,026 | 156,651,415 | -- |
| Industrials | 191,432,373 | 142,109,477 | 49,322,896 | -- |
| Information Technology | 278,099,431 | 196,789,247 | 81,310,184 | -- |
| Materials | 92,308,424 | 92,308,424 | -- | -- |
| Real Estate | 43,011,689 | 43,011,689 | -- | -- |
| Telecommunication Services | 7,277,949 | 7,277,949 | -- | -- |
| Money Market Funds | 133,166,880 | 133,166,880 | -- | -- |
| Total Investments in Securities: | $1,772,846,713 | $1,317,181,689 | $455,665,024 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $21,897,919 |
| Level 2 to Level 1 | $247,648,457 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $64,303,919) — See accompanying schedule: Unaffiliated issuers (cost $1,532,438,842) | $1,639,679,833 | |
| Fidelity Central Funds (cost $133,148,457) | 133,166,880 | |
| Total Investments (cost $1,665,587,299) | $1,772,846,713 | |
| Receivable for investments sold | 7,778,797 | |
| Receivable for fund shares sold | 3,279,137 | |
| Dividends receivable | 5,744,807 | |
| Distributions receivable from Fidelity Central Funds | 20,812 | |
| Prepaid expenses | 4,476 | |
| Total assets | 1,789,674,742 | |
| Liabilities | ||
| Payable to custodian bank | $8,686 | |
| Payable for investments purchased | 1,703,683 | |
| Payable for fund shares redeemed | 2,681,767 | |
| Accrued management fee | 1,084,893 | |
| Distribution and service plan fees payable | 104,520 | |
| Other affiliated payables | 378,413 | |
| Other payables and accrued expenses | 213,103 | |
| Collateral on securities loaned, at value | 65,511,080 | |
| Total liabilities | 71,686,145 | |
| Net Assets | $1,717,988,597 | |
| Net Assets consist of: | ||
| Paid in capital | $1,672,577,084 | |
| Undistributed net investment income | 17,435,692 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (79,038,459) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 107,014,280 | |
| Net Assets | $1,717,988,597 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($221,861,000 ÷ 20,393,992 shares) | $10.88 | |
| Maximum offering price per share (100/94.25 of $10.88) | $11.54 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($27,966,198 ÷ 2,578,923 shares) | $10.84 | |
| Maximum offering price per share (100/96.50 of $10.84) | $11.23 | |
| Class C: | ||
| Net Asset Value and offering price per share ($52,737,803 ÷ 4,941,263 shares)(a) | $10.67 | |
| International Growth: | ||
| Net Asset Value, offering price and redemption price per share ($1,038,771,000 ÷ 94,705,579 shares) | $10.97 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($359,675,823 ÷ 32,844,803 shares) | $10.95 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($16,976,773 ÷ 1,547,792 shares) | $10.97 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $33,989,000 | |
| Special dividends | 6,130,877 | |
| Income from Fidelity Central Funds | 740,953 | |
| Income before foreign taxes withheld | 40,860,830 | |
| Less foreign taxes withheld | (3,166,504) | |
| Total income | 37,694,326 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $11,320,842 | |
| Performance adjustment | 498,260 | |
| Transfer agent fees | 3,134,817 | |
| Distribution and service plan fees | 1,219,459 | |
| Accounting and security lending fees | 736,338 | |
| Custodian fees and expenses | 177,219 | |
| Independent trustees' fees and expenses | 6,856 | |
| Registration fees | 179,748 | |
| Audit | 84,301 | |
| Legal | 5,830 | |
| Miscellaneous | 11,953 | |
| Total expenses before reductions | 17,375,623 | |
| Expense reductions | (85,361) | 17,290,262 |
| Net investment income (loss) | 20,404,064 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (41,802,350) | |
| Fidelity Central Funds | 5,196 | |
| Foreign currency transactions | 411,787 | |
| Total net realized gain (loss) | (41,385,367) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $92,422) | (22,951,981) | |
| Assets and liabilities in foreign currencies | (218,422) | |
| Total change in net unrealized appreciation (depreciation) | (23,170,403) | |
| Net gain (loss) | (64,555,770) | |
| Net increase (decrease) in net assets resulting from operations | $(44,151,706) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $20,404,064 | $10,205,219 |
| Net realized gain (loss) | (41,385,367) | (27,463,177) |
| Change in net unrealized appreciation (depreciation) | (23,170,403) | 41,450,250 |
| Net increase (decrease) in net assets resulting from operations | (44,151,706) | 24,192,292 |
| Distributions to shareholders from net investment income | (9,313,588) | (7,019,924) |
| Distributions to shareholders from net realized gain | (1,062,130) | – |
| Total distributions | (10,375,718) | (7,019,924) |
| Share transactions - net increase (decrease) | 298,573,554 | 519,861,476 |
| Redemption fees | 63,422 | 54,094 |
| Total increase (decrease) in net assets | 244,109,552 | 537,087,938 |
| Net Assets | ||
| Beginning of period | 1,473,879,045 | 936,791,107 |
| End of period | $1,717,988,597 | $1,473,879,045 |
| Other Information | ||
| Undistributed net investment income end of period | $17,435,692 | $9,047,261 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.30 | $11.01 | $10.78 | $8.91 | $8.09 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .12B | .07 | .09 | .08 | .08 |
| Net realized and unrealized gain (loss) | (.48) | .28 | .18 | 1.88 | .81 |
| Total from investment operations | (.36) | .35 | .27 | 1.96 | .89 |
| Distributions from net investment income | (.05) | (.06) | (.03) | (.08) | (.06) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.06) | (.06) | (.04) | (.09) | (.07) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.88 | $11.30 | $11.01 | $10.78 | $8.91 |
| Total ReturnD,E | (3.22)% | 3.20% | 2.54% | 22.18% | 11.10% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.27% | 1.26% | 1.35% | 1.44% | 1.58% |
| Expenses net of fee waivers, if any | 1.27% | 1.26% | 1.35% | 1.43% | 1.45% |
| Expenses net of all reductions | 1.27% | 1.25% | 1.34% | 1.42% | 1.44% |
| Net investment income (loss) | 1.05%B | .66% | .84% | .80% | .99% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $221,861 | $184,878 | $119,017 | $74,595 | $21,874 |
| Portfolio turnover rateH | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .68%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.26 | $10.96 | $10.75 | $8.89 | $8.08 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .08B | .04 | .06 | .05 | .06 |
| Net realized and unrealized gain (loss) | (.48) | .27 | .18 | 1.88 | .81 |
| Total from investment operations | (.40) | .31 | .24 | 1.93 | .87 |
| Distributions from net investment income | (.01) | (.01) | (.02) | (.07) | (.05) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.02) | (.01) | (.03) | (.07)C | (.06) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.84 | $11.26 | $10.96 | $10.75 | $8.89 |
| Total ReturnE,F | (3.58)% | 2.85% | 2.21% | 21.91% | 10.82% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.61% | 1.58% | 1.65% | 1.69% | 1.85% |
| Expenses net of fee waivers, if any | 1.61% | 1.58% | 1.65% | 1.69% | 1.70% |
| Expenses net of all reductions | 1.61% | 1.58% | 1.65% | 1.68% | 1.69% |
| Net investment income (loss) | .71%B | .33% | .53% | .54% | .74% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $27,966 | $28,833 | $26,369 | $23,118 | $10,690 |
| Portfolio turnover rateI | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .34%.
C Total distributions of $0.07 per share is comprised of distributions from net investment income of $0.69 and distributions from net realized gain of $0.005 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.12 | $10.87 | $10.69 | $8.84 | $8.03 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .03B | (.02) | .01 | .01 | .02 |
| Net realized and unrealized gain (loss) | (.47) | .27 | .18 | 1.87 | .80 |
| Total from investment operations | (.44) | .25 | .19 | 1.88 | .82 |
| Distributions from net investment income | – | – | – | (.02) | (.01) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.01) | – | (.01) | (.03) | (.01)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.67 | $11.12 | $10.87 | $10.69 | $8.84 |
| Total ReturnE,F | (3.98)% | 2.30% | 1.77% | 21.29% | 10.27% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.07% | 2.06% | 2.12% | 2.19% | 2.33% |
| Expenses net of fee waivers, if any | 2.07% | 2.06% | 2.12% | 2.18% | 2.20% |
| Expenses net of all reductions | 2.06% | 2.05% | 2.12% | 2.17% | 2.19% |
| Net investment income (loss) | .26%B | (.15)% | .06% | .05% | .24% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $52,738 | $52,378 | $32,737 | $17,196 | $5,648 |
| Portfolio turnover rateI | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12) %.
C Total distributions of $.01 per share is comprised of distributions from net investment income of $.007 and distributions from net realized gain of $.006 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.38 | $11.10 | $10.84 | $8.95 | $8.12 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15B | .11 | .13 | .11 | .11 |
| Net realized and unrealized gain (loss) | (.47) | .26 | .19 | 1.88 | .81 |
| Total from investment operations | (.32) | .37 | .32 | 1.99 | .92 |
| Distributions from net investment income | (.08) | (.09) | (.05) | (.10) | (.08) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.09) | (.09) | (.06) | (.10)C | (.09) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.97 | $11.38 | $11.10 | $10.84 | $8.95 |
| Total ReturnE | (2.87)% | 3.36% | 2.96% | 22.48% | 11.41% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .99% | .97% | 1.04% | 1.13% | 1.28% |
| Expenses net of fee waivers, if any | .99% | .97% | 1.04% | 1.13% | 1.20% |
| Expenses net of all reductions | .98% | .96% | 1.04% | 1.11% | 1.19% |
| Net investment income (loss) | 1.34%B | .94% | 1.14% | 1.11% | 1.24% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,038,771 | $938,348 | $635,607 | $430,914 | $149,526 |
| Portfolio turnover rateH | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .96%.
C Total distributions of $.10 per share is comprised of distributions from net investment income of $.097 and distributions from net realized gain of $.005 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.36 | $11.08 | $10.84 | $8.94 | $8.12 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15B | .11 | .13 | .11 | .10 |
| Net realized and unrealized gain (loss) | (.47) | .27 | .18 | 1.90 | .81 |
| Total from investment operations | (.32) | .38 | .31 | 2.01 | .91 |
| Distributions from net investment income | (.08) | (.10) | (.06) | (.10) | (.08) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.09) | (.10) | (.07) | (.11) | (.09) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.95 | $11.36 | $11.08 | $10.84 | $8.94 |
| Total ReturnD | (2.87)% | 3.41% | 2.84% | 22.66% | 11.28% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .98% | .98% | 1.04% | 1.11% | 1.27% |
| Expenses net of fee waivers, if any | .98% | .98% | 1.04% | 1.11% | 1.20% |
| Expenses net of all reductions | .98% | .97% | 1.04% | 1.09% | 1.19% |
| Net investment income (loss) | 1.34%B | .94% | 1.14% | 1.13% | 1.24% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $359,676 | $267,745 | $121,554 | $38,771 | $3,992 |
| Portfolio turnover rateG | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .97%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class Z
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $11.38 | $11.10 | $10.84 | $10.26 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .16C | .12 | .14 | .02 |
| Net realized and unrealized gain (loss) | (.47) | .27 | .19 | .56 |
| Total from investment operations | (.31) | .39 | .33 | .58 |
| Distributions from net investment income | (.09) | (.11) | (.06) | – |
| Distributions from net realized gain | (.01) | – | (.01) | – |
| Total distributions | (.10) | (.11) | (.07) | – |
| Redemption fees added to paid in capitalB,D | – | – | – | – |
| Net asset value, end of period | $10.97 | $11.38 | $11.10 | $10.84 |
| Total ReturnE,F | (2.73)% | 3.52% | 3.07% | 5.65% |
| Ratios to Average Net AssetsG,H | ||||
| Expenses before reductions | .85% | .84% | .88% | .94%I |
| Expenses net of fee waivers, if any | .85% | .84% | .88% | .94%I |
| Expenses net of all reductions | .84% | .83% | .88% | .93%I |
| Net investment income (loss) | 1.48%C | 1.07% | 1.30% | .65%I |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $16,977 | $897 | $104 | $106 |
| Portfolio turnover rateJ | 29% | 26% | 27% | 32% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.10%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Growth 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, International Growth, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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), 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 | $194,817,402 |
| Gross unrealized depreciation | (93,740,676) |
| Net unrealized appreciation (depreciation) on securities | $101,076,726 |
| Tax Cost | $1,671,769,987 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $17,436,066 |
| Capital loss carryforward | $(72,855,771) |
| Net unrealized appreciation (depreciation) on securities and other investments | $100,928,725 |
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 fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(52,216,684) |
| Long-term | (20,639,087) |
| Total no expiration | $(72,855,771) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $10,375,718 | $ 7,019,924 |
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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $719,164,252 and $454,780,987, 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 International Growth as compared to its benchmark index, the MSCI EAFE Growth Index, over the same 36 month performance period. For the reporting period, the total annual 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $537,307 | $5,744 |
| Class T | .25% | .25% | 140,372 | 186 |
| Class B | .75% | .25% | 4,121 | 3,091 |
| Class C | .75% | .25% | 537,659 | 174,241 |
| $1,219,459 | $183,262 |
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 by FDC |
|
| Class A | $77,780 |
| Class T | 10,120 |
| Class B(a) | 6 |
| Class C(a) | 11,155 |
| $99,061 |
(a) 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, except for Class Z. FIIOC receives an asset-based fee of Class Z'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 Class-Level Average Net Assets |
|
| Class A | $474,896 | .22 |
| Class T | 87,703 | .31 |
| Class B | 1,164 | .29 |
| Class C | 142,761 | .27 |
| International Growth | 1,826,434 | .19 |
| Class I | 595,723 | .18 |
| Class Z | 6,136 | .05 |
| $3,134,817 |
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 $1,345 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $47,546.
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 $4,143 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $587,874, including $40,912 from 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 $74,635 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $10,726.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $857,372 | $684,914 |
| Class T | 25,900 | 29,128 |
| International Growth | 6,508,406 | 5,239,951 |
| Class I | 1,913,593 | 1,064,923 |
| Class Z | 8,317 | 1,008 |
| Total | $9,313,588 | $7,019,924 |
| From net realized gain | ||
| Class A | $137,180 | $– |
| Class T | 20,720 | – |
| Class B | 561 | – |
| Class C | 39,156 | – |
| International Growth | 667,539 | – |
| Class I | 196,266 | – |
| Class Z | 708 | – |
| Total | $1,062,130 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 9,759,153 | 9,298,452 | $106,168,466 | $105,707,223 |
| Reinvestment of distributions | 86,347 | 60,570 | 970,544 | 669,298 |
| Shares redeemed | (5,818,948) | (3,798,128) | (63,754,387) | (42,982,992) |
| Net increase (decrease) | 4,026,552 | 5,560,894 | $43,384,623 | $63,393,529 |
| Class T | ||||
| Shares sold | 648,968 | 1,158,910 | $7,086,728 | $13,286,739 |
| Reinvestment of distributions | 4,067 | 2,593 | 45,714 | 28,654 |
| Shares redeemed | (635,077) | (1,005,399) | (6,841,439) | (11,627,373) |
| Net increase (decrease) | 17,958 | 156,104 | $291,003 | $1,688,020 |
| Class B | ||||
| Shares sold | 1,881 | 30,282 | $19,626 | $347,009 |
| Reinvestment of distributions | 50 | – | 556 | – |
| Shares redeemed | (73,599) | (87,349) | (781,848) | (994,341) |
| Net increase (decrease) | (71,668) | (57,067) | $(761,666) | $(647,332) |
| Class C | ||||
| Shares sold | 1,353,782 | 2,689,800 | $14,583,875 | $30,433,427 |
| Reinvestment of distributions | 3,485 | – | 38,678 | – |
| Shares redeemed | (1,125,675) | (991,400) | (12,076,750) | (10,978,888) |
| Net increase (decrease) | 231,592 | 1,698,400 | $2,545,803 | $19,454,539 |
| International Growth | ||||
| Shares sold | 31,953,739 | 39,705,804 | $351,819,134 | $456,131,993 |
| Reinvestment of distributions | 515,203 | 387,169 | 5,821,794 | 4,301,448 |
| Shares redeemed | (20,188,262) | (14,942,156) | (220,612,157) | (169,380,325) |
| Net increase (decrease) | 12,280,680 | 25,150,817 | $137,028,771 | $291,053,116 |
| Class I | ||||
| Shares sold | 22,905,807 | 17,728,493 | $249,584,348 | $201,877,753 |
| Reinvestment of distributions | 177,277 | 92,582 | 1,999,688 | 1,026,733 |
| Shares redeemed | (13,798,950) | (5,227,430) | (151,305,009) | (58,733,231) |
| Net increase (decrease) | 9,284,134 | 12,593,645 | $100,279,027 | $144,171,255 |
| Class Z | ||||
| Shares sold | 1,706,835 | 88,007 | $18,446,844 | $956,120 |
| Reinvestment of distributions | 799 | 91 | 9,025 | 1,008 |
| Shares redeemed | (238,655) | (18,621) | (2,649,876) | (208,779) |
| Net increase (decrease) | 1,468,979 | 69,477 | $15,805,993 | $748,349 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Growth Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity International Growth Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity International Growth Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 14, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.29% | |||
| Actual | $1,000.00 | $992.70 | $6.46 | |
| Hypothetical-C | $1,000.00 | $1,018.65 | $6.55 | |
| Class T | 1.63% | |||
| Actual | $1,000.00 | $990.90 | $8.16 | |
| Hypothetical-C | $1,000.00 | $1,016.94 | $8.26 | |
| Class C | 2.08% | |||
| Actual | $1,000.00 | $988.90 | $10.40 | |
| Hypothetical-C | $1,000.00 | $1,014.68 | $10.53 | |
| International Growth | 1.01% | |||
| Actual | $1,000.00 | $994.60 | $5.06 | |
| Hypothetical-C | $1,000.00 | $1,020.06 | $5.13 | |
| Class I | 1.00% | |||
| Actual | $1,000.00 | $994.60 | $5.01 | |
| Hypothetical-C | $1,000.00 | $1,020.11 | $5.08 | |
| Class Z | .86% | |||
| Actual | $1,000.00 | $995.50 | $4.31 | |
| Hypothetical-C | $1,000.00 | $1,020.81 | $4.37 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Fidelity International Growth Fund designates 16%, Class A designates 22%, Class B designates 74%, Class C designates 74%, Class T designates 50%, Class I designates 16%, and Class Z designates 14% of the dividends distributed in December 2015 during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity International Growth Fund, Class A, Class B, Class C, Class T, Class I, and Class Z designate 100% of the dividends distributed 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 | |
| Fidelity International Growth Fund | |||
| Fidelity International Growth Fund | 12/07/15 | $0.099 | $0.013 |
| Fidelity International Growth Fund: Class A | 12/07/15 | $0.071 | $0.013 |
| Fidelity International Growth Fund: Class B | 12/07/15 | $0.021 | $0.013 |
| Fidelity International Growth Fund: Class C | 12/07/15 | $0.021 | $0.013 |
| Fidelity International Growth Fund: Class T | 12/07/15 | $0.031 | $0.013 |
| Fidelity International Growth Fund: Class I | 12/07/15 | $0.099 | $0.013 |
| Fidelity International Growth Fund: Class Z | 12/07/15 | $0.115 | $0.013 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Growth Fund
Fidelity International Growth Fund
AIGF-ANN-1216
1.853349.108
|
Fidelity® International Growth Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® International Growth Fund | (2.87)% | 7.12% | 1.89% |
A From November 1, 2007
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® International Growth Fund, a class of the fund, on November 1, 2007, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Growth Index performed over the same period.
| Period Ending Values | ||
|
| $11,840 | Fidelity® International Growth Fund |
|
| $9,972 | MSCI EAFE Growth Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: The fund’s share classes (excluding sales charges, if applicable) returned about -3% to -4% for the fiscal year, with most results roughly in line with the -3.07% return of the benchmark MSCI EAFE Growth Index. Relative to the benchmark, the fund was hurt the most by its positioning in Japan, where subpar security selection hampered results, as did the effects of a stronger yen, which reduced returns for U.S. investors in Japanese securities. Poor stock picking in the U.K. also detracted – especially a position in diversified retailer Associated British Foods – even as a weaker British pound tempered the fund's underperformance. On the positive side, we benefited from out-of-benchmark holdings in the U.S. – where many of our globally oriented investments happen to be domiciled – and emerging markets. In sector terms, the fund was hurt by stock picking in the real estate category as well as a combination of security selection and sector allocations in industrials and health care. Within health care, the fund was hindered by investments in drug manufacturers Novo Nordisk and Novartis, based in Denmark and Switzerland, respectively. In contrast, the fund was well positioned in information technology and also saw good stock selection in consumer discretionary. Within technology, fund holding Taiwan Semiconductor Manufacturing gained steadily. Elsewhere, the fund’s holding in Keyence, a Japanese maker of sensors for factory automation, also added relative value.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| United States of America* | 23.5% | |
| Japan | 13.9% | |
| Switzerland | 12.4% | |
| United Kingdom | 8.7% | |
| Spain | 5.2% | |
| Sweden | 4.1% | |
| Australia | 4.0% | |
| Belgium | 4.0% | |
| Germany | 3.9% | |
| Other | 20.3% | |
* 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 April 30, 2016 | ||
| United States of America* | 20.8% | |
| Japan | 14.1% | |
| United Kingdom | 13.2% | |
| Switzerland | 12.7% | |
| Spain | 4.9% | |
| Belgium | 4.5% | |
| Sweden | 4.4% | |
| Australia | 4.0% | |
| Denmark | 3.3% | |
| Other | 18.1% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 95.4 | 97.3 |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.6 | 2.7 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 5.5 | 4.9 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 3.5 | 3.5 |
| Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 3.1 | 3.5 |
| CSL Ltd. (Australia, Biotechnology) | 3.0 | 2.9 |
| Inditex SA (Spain, Specialty Retail) | 2.7 | 2.6 |
| Novartis AG (Switzerland, Pharmaceuticals) | 2.6 | 2.9 |
| Reckitt Benckiser Group PLC (United Kingdom, Household Products) | 2.4 | 3.2 |
| Visa, Inc. Class A (United States of America, IT Services) | 2.4 | 2.0 |
| SAP AG (Germany, Software) | 2.2 | 1.9 |
| ASSA ABLOY AB (B Shares) (Sweden, Building Products) | 2.2 | 2.6 |
| 29.6 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Consumer Staples | 19.8 | 20.4 |
| Health Care | 17.8 | 19.0 |
| Information Technology | 16.2 | 14.2 |
| Consumer Discretionary | 12.7 | 13.3 |
| Industrials | 11.1 | 11.5 |
| Financials | 9.2 | 13.5 |
| Materials | 5.4 | 4.7 |
| Real Estate | 2.5 | 0.0 |
| Telecommunication Services | 0.4 | 0.3 |
| Energy | 0.3 | 0.4 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 95.4% | |||
| Shares | Value | ||
| Australia - 4.0% | |||
| CSL Ltd. | 666,940 | $50,992,870 | |
| Sydney Airport unit | 1,169,545 | 5,569,352 | |
| Transurban Group unit | 1,534,773 | 12,130,344 | |
| TOTAL AUSTRALIA | 68,692,566 | ||
| Austria - 1.6% | |||
| Andritz AG | 392,421 | 20,526,674 | |
| Buwog-Gemeinnuetzige Wohnung | 313,203 | 7,569,166 | |
| TOTAL AUSTRIA | 28,095,840 | ||
| Belgium - 4.0% | |||
| Anheuser-Busch InBev SA NV | 525,691 | 60,333,432 | |
| KBC Groep NV | 136,651 | 8,326,979 | |
| TOTAL BELGIUM | 68,660,411 | ||
| Canada - 1.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 132,400 | 6,651,094 | |
| Franco-Nevada Corp. | 99,000 | 6,479,691 | |
| Pason Systems, Inc. | 446,800 | 5,079,922 | |
| TOTAL CANADA | 18,210,707 | ||
| Cayman Islands - 0.9% | |||
| 58.com, Inc. ADR (a)(b) | 139,970 | 5,857,745 | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | 97,500 | 9,914,775 | |
| TOTAL CAYMAN ISLANDS | 15,772,520 | ||
| Denmark - 2.2% | |||
| Jyske Bank A/S (Reg.) | 182,600 | 8,286,771 | |
| Novo Nordisk A/S Series B sponsored ADR | 841,100 | 29,892,694 | |
| TOTAL DENMARK | 38,179,465 | ||
| Finland - 0.3% | |||
| Tikkurila Oyj | 298,300 | 5,746,902 | |
| France - 1.0% | |||
| Essilor International SA (b) | 159,360 | 17,913,594 | |
| Germany - 3.9% | |||
| Bayer AG | 289,500 | 28,744,364 | |
| SAP AG | 442,473 | 38,981,619 | |
| TOTAL GERMANY | 67,725,983 | ||
| Hong Kong - 2.1% | |||
| AIA Group Ltd. | 5,706,000 | 36,014,042 | |
| India - 0.8% | |||
| Housing Development Finance Corp. Ltd. | 629,768 | 13,139,078 | |
| Ireland - 3.3% | |||
| CRH PLC sponsored ADR | 946,466 | 30,570,852 | |
| James Hardie Industries PLC CDI | 1,702,755 | 25,426,459 | |
| TOTAL IRELAND | 55,997,311 | ||
| Isle of Man - 0.5% | |||
| Playtech Ltd. | 671,500 | 7,627,381 | |
| Israel - 0.3% | |||
| Azrieli Group | 118,800 | 5,060,063 | |
| Italy - 0.7% | |||
| Azimut Holding SpA | 234,600 | 3,765,120 | |
| Interpump Group SpA | 532,426 | 8,544,961 | |
| TOTAL ITALY | 12,310,081 | ||
| Japan - 13.9% | |||
| Astellas Pharma, Inc. | 1,984,100 | 29,447,740 | |
| DENSO Corp. | 458,400 | 19,954,191 | |
| East Japan Railway Co. | 186,900 | 16,497,886 | |
| Hoya Corp. | 358,300 | 14,981,839 | |
| Japan Tobacco, Inc. | 689,300 | 26,252,162 | |
| Keyence Corp. | 44,662 | 32,818,287 | |
| Misumi Group, Inc. | 480,400 | 8,781,604 | |
| Mitsui Fudosan Co. Ltd. | 785,000 | 17,893,988 | |
| Nintendo Co. Ltd. | 33,500 | 8,075,516 | |
| Olympus Corp. | 438,900 | 15,694,431 | |
| OSG Corp. (b) | 433,700 | 9,259,600 | |
| Seven Bank Ltd. | 1,485,500 | 4,575,346 | |
| SHO-BOND Holdings Co. Ltd. | 207,600 | 10,036,540 | |
| USS Co. Ltd. | 1,413,900 | 23,971,719 | |
| TOTAL JAPAN | 238,240,849 | ||
| Kenya - 0.4% | |||
| Safaricom Ltd. | 37,269,700 | 7,277,949 | |
| Korea (South) - 0.7% | |||
| BGFretail Co. Ltd. | 72,968 | 11,100,657 | |
| Samsung Biologics Co. Ltd. (a) | 2,753 | 327,350 | |
| TOTAL KOREA (SOUTH) | 11,428,007 | ||
| Mexico - 0.6% | |||
| Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 114,755 | 10,978,611 | |
| Netherlands - 1.1% | |||
| ASML Holding NV (Netherlands) | 183,300 | 19,392,036 | |
| South Africa - 1.8% | |||
| Clicks Group Ltd. | 815,116 | 7,586,692 | |
| Naspers Ltd. Class N | 136,100 | 22,810,597 | |
| TOTAL SOUTH AFRICA | 30,397,289 | ||
| Spain - 5.2% | |||
| Amadeus IT Holding SA Class A | 534,200 | 25,215,976 | |
| Hispania Activos Inmobiliarios SA | 322,524 | 3,972,449 | |
| Inditex SA | 1,343,490 | 46,965,520 | |
| Merlin Properties Socimi SA | 395,600 | 4,446,924 | |
| Prosegur Compania de Seguridad SA (Reg.) | 1,089,149 | 7,914,960 | |
| TOTAL SPAIN | 88,515,829 | ||
| Sweden - 4.1% | |||
| ASSA ABLOY AB (B Shares) | 2,036,683 | 37,013,568 | |
| Fagerhult AB | 345,544 | 8,799,136 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 440,100 | 12,468,968 | |
| Svenska Handelsbanken AB (A Shares) | 905,220 | 12,340,977 | |
| TOTAL SWEDEN | 70,622,649 | ||
| Switzerland - 12.4% | |||
| Nestle SA (Reg. S) | 1,296,536 | 94,016,902 | |
| Novartis AG | 637,428 | 45,236,724 | |
| Roche Holding AG (participation certificate) | 230,298 | 52,895,237 | |
| Schindler Holding AG: | |||
| (participation certificate) | 96,513 | 17,936,174 | |
| (Reg.) | 18,350 | 3,393,512 | |
| TOTAL SWITZERLAND | 213,478,549 | ||
| Taiwan - 0.9% | |||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 2,474,000 | 14,861,013 | |
| United Kingdom - 8.7% | |||
| Associated British Foods PLC | 114,100 | 3,438,390 | |
| BAE Systems PLC | 1,857,800 | 12,309,328 | |
| Berendsen PLC | 774,873 | 9,161,974 | |
| Howden Joinery Group PLC | 775,100 | 3,556,760 | |
| Informa PLC | 1,883,631 | 15,504,920 | |
| InterContinental Hotel Group PLC ADR (b) | 910,546 | 35,921,040 | |
| Prudential PLC | 1,292,945 | 21,099,391 | |
| Reckitt Benckiser Group PLC | 457,445 | 40,923,259 | |
| Rightmove PLC | 85,600 | 3,913,324 | |
| Shaftesbury PLC | 362,533 | 4,069,099 | |
| TOTAL UNITED KINGDOM | 149,897,485 | ||
| United States of America - 18.9% | |||
| Alphabet, Inc. Class A | 32,536 | 26,350,906 | |
| Autoliv, Inc. (b) | 178,869 | 17,310,942 | |
| Berkshire Hathaway, Inc. Class B (a) | 121,884 | 17,587,861 | |
| China Biologic Products, Inc. (a) | 83,466 | 9,858,169 | |
| Domino's Pizza, Inc. | 86,790 | 14,688,340 | |
| Martin Marietta Materials, Inc. | 68,500 | 12,698,530 | |
| MasterCard, Inc. Class A | 335,200 | 35,873,104 | |
| Mohawk Industries, Inc. (a) | 117,200 | 21,599,960 | |
| Molson Coors Brewing Co. Class B | 107,000 | 11,107,670 | |
| Moody's Corp. | 103,800 | 10,433,976 | |
| MSCI, Inc. | 118,500 | 9,502,515 | |
| Philip Morris International, Inc. | 246,908 | 23,811,808 | |
| PriceSmart, Inc. | 86,955 | 7,908,557 | |
| ResMed, Inc. (b) | 167,700 | 10,023,429 | |
| Reynolds American, Inc. | 408,900 | 22,522,212 | |
| S&P Global, Inc. | 111,300 | 13,561,905 | |
| Sherwin-Williams Co. | 46,500 | 11,385,990 | |
| SS&C Technologies Holdings, Inc. | 273,000 | 8,716,890 | |
| Visa, Inc. Class A | 490,860 | 40,500,859 | |
| TOTAL UNITED STATES OF AMERICA | 325,443,623 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $1,532,438,842) | 1,639,679,833 | ||
| Money Market Funds - 7.8% | |||
| Fidelity Cash Central Fund, 0.41% (c) | 67,621,343 | 67,641,629 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 65,512,149 | 65,525,251 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $133,148,457) | 133,166,880 | ||
| TOTAL INVESTMENT PORTFOLIO - 103.2% | |||
| (Cost $1,665,587,299) | 1,772,846,713 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.2)% | (54,858,116) | ||
| NET ASSETS - 100% | $1,717,988,597 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $153,079 |
| Fidelity Securities Lending Cash Central Fund | 587,874 |
| Total | $740,953 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $218,727,229 | $218,727,229 | $-- | $-- |
| Consumer Staples | 339,100,414 | 204,160,253 | 134,940,161 | -- |
| Energy | 5,079,922 | 5,079,922 | -- | -- |
| Financials | 158,633,961 | 125,193,593 | 33,440,368 | -- |
| Health Care | 306,008,441 | 149,357,026 | 156,651,415 | -- |
| Industrials | 191,432,373 | 142,109,477 | 49,322,896 | -- |
| Information Technology | 278,099,431 | 196,789,247 | 81,310,184 | -- |
| Materials | 92,308,424 | 92,308,424 | -- | -- |
| Real Estate | 43,011,689 | 43,011,689 | -- | -- |
| Telecommunication Services | 7,277,949 | 7,277,949 | -- | -- |
| Money Market Funds | 133,166,880 | 133,166,880 | -- | -- |
| Total Investments in Securities: | $1,772,846,713 | $1,317,181,689 | $455,665,024 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $21,897,919 |
| Level 2 to Level 1 | $247,648,457 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $64,303,919) — See accompanying schedule: Unaffiliated issuers (cost $1,532,438,842) | $1,639,679,833 | |
| Fidelity Central Funds (cost $133,148,457) | 133,166,880 | |
| Total Investments (cost $1,665,587,299) | $1,772,846,713 | |
| Receivable for investments sold | 7,778,797 | |
| Receivable for fund shares sold | 3,279,137 | |
| Dividends receivable | 5,744,807 | |
| Distributions receivable from Fidelity Central Funds | 20,812 | |
| Prepaid expenses | 4,476 | |
| Total assets | 1,789,674,742 | |
| Liabilities | ||
| Payable to custodian bank | $8,686 | |
| Payable for investments purchased | 1,703,683 | |
| Payable for fund shares redeemed | 2,681,767 | |
| Accrued management fee | 1,084,893 | |
| Distribution and service plan fees payable | 104,520 | |
| Other affiliated payables | 378,413 | |
| Other payables and accrued expenses | 213,103 | |
| Collateral on securities loaned, at value | 65,511,080 | |
| Total liabilities | 71,686,145 | |
| Net Assets | $1,717,988,597 | |
| Net Assets consist of: | ||
| Paid in capital | $1,672,577,084 | |
| Undistributed net investment income | 17,435,692 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (79,038,459) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 107,014,280 | |
| Net Assets | $1,717,988,597 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($221,861,000 ÷ 20,393,992 shares) | $10.88 | |
| Maximum offering price per share (100/94.25 of $10.88) | $11.54 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($27,966,198 ÷ 2,578,923 shares) | $10.84 | |
| Maximum offering price per share (100/96.50 of $10.84) | $11.23 | |
| Class C: | ||
| Net Asset Value and offering price per share ($52,737,803 ÷ 4,941,263 shares)(a) | $10.67 | |
| International Growth: | ||
| Net Asset Value, offering price and redemption price per share ($1,038,771,000 ÷ 94,705,579 shares) | $10.97 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($359,675,823 ÷ 32,844,803 shares) | $10.95 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($16,976,773 ÷ 1,547,792 shares) | $10.97 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $33,989,000 | |
| Special dividends | 6,130,877 | |
| Income from Fidelity Central Funds | 740,953 | |
| Income before foreign taxes withheld | 40,860,830 | |
| Less foreign taxes withheld | (3,166,504) | |
| Total income | 37,694,326 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $11,320,842 | |
| Performance adjustment | 498,260 | |
| Transfer agent fees | 3,134,817 | |
| Distribution and service plan fees | 1,219,459 | |
| Accounting and security lending fees | 736,338 | |
| Custodian fees and expenses | 177,219 | |
| Independent trustees' fees and expenses | 6,856 | |
| Registration fees | 179,748 | |
| Audit | 84,301 | |
| Legal | 5,830 | |
| Miscellaneous | 11,953 | |
| Total expenses before reductions | 17,375,623 | |
| Expense reductions | (85,361) | 17,290,262 |
| Net investment income (loss) | 20,404,064 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (41,802,350) | |
| Fidelity Central Funds | 5,196 | |
| Foreign currency transactions | 411,787 | |
| Total net realized gain (loss) | (41,385,367) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $92,422) | (22,951,981) | |
| Assets and liabilities in foreign currencies | (218,422) | |
| Total change in net unrealized appreciation (depreciation) | (23,170,403) | |
| Net gain (loss) | (64,555,770) | |
| Net increase (decrease) in net assets resulting from operations | $(44,151,706) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $20,404,064 | $10,205,219 |
| Net realized gain (loss) | (41,385,367) | (27,463,177) |
| Change in net unrealized appreciation (depreciation) | (23,170,403) | 41,450,250 |
| Net increase (decrease) in net assets resulting from operations | (44,151,706) | 24,192,292 |
| Distributions to shareholders from net investment income | (9,313,588) | (7,019,924) |
| Distributions to shareholders from net realized gain | (1,062,130) | – |
| Total distributions | (10,375,718) | (7,019,924) |
| Share transactions - net increase (decrease) | 298,573,554 | 519,861,476 |
| Redemption fees | 63,422 | 54,094 |
| Total increase (decrease) in net assets | 244,109,552 | 537,087,938 |
| Net Assets | ||
| Beginning of period | 1,473,879,045 | 936,791,107 |
| End of period | $1,717,988,597 | $1,473,879,045 |
| Other Information | ||
| Undistributed net investment income end of period | $17,435,692 | $9,047,261 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.30 | $11.01 | $10.78 | $8.91 | $8.09 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .12B | .07 | .09 | .08 | .08 |
| Net realized and unrealized gain (loss) | (.48) | .28 | .18 | 1.88 | .81 |
| Total from investment operations | (.36) | .35 | .27 | 1.96 | .89 |
| Distributions from net investment income | (.05) | (.06) | (.03) | (.08) | (.06) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.06) | (.06) | (.04) | (.09) | (.07) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.88 | $11.30 | $11.01 | $10.78 | $8.91 |
| Total ReturnD,E | (3.22)% | 3.20% | 2.54% | 22.18% | 11.10% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.27% | 1.26% | 1.35% | 1.44% | 1.58% |
| Expenses net of fee waivers, if any | 1.27% | 1.26% | 1.35% | 1.43% | 1.45% |
| Expenses net of all reductions | 1.27% | 1.25% | 1.34% | 1.42% | 1.44% |
| Net investment income (loss) | 1.05%B | .66% | .84% | .80% | .99% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $221,861 | $184,878 | $119,017 | $74,595 | $21,874 |
| Portfolio turnover rateH | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .68%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.26 | $10.96 | $10.75 | $8.89 | $8.08 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .08B | .04 | .06 | .05 | .06 |
| Net realized and unrealized gain (loss) | (.48) | .27 | .18 | 1.88 | .81 |
| Total from investment operations | (.40) | .31 | .24 | 1.93 | .87 |
| Distributions from net investment income | (.01) | (.01) | (.02) | (.07) | (.05) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.02) | (.01) | (.03) | (.07)C | (.06) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.84 | $11.26 | $10.96 | $10.75 | $8.89 |
| Total ReturnE,F | (3.58)% | 2.85% | 2.21% | 21.91% | 10.82% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.61% | 1.58% | 1.65% | 1.69% | 1.85% |
| Expenses net of fee waivers, if any | 1.61% | 1.58% | 1.65% | 1.69% | 1.70% |
| Expenses net of all reductions | 1.61% | 1.58% | 1.65% | 1.68% | 1.69% |
| Net investment income (loss) | .71%B | .33% | .53% | .54% | .74% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $27,966 | $28,833 | $26,369 | $23,118 | $10,690 |
| Portfolio turnover rateI | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .34%.
C Total distributions of $0.07 per share is comprised of distributions from net investment income of $0.69 and distributions from net realized gain of $0.005 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.12 | $10.87 | $10.69 | $8.84 | $8.03 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .03B | (.02) | .01 | .01 | .02 |
| Net realized and unrealized gain (loss) | (.47) | .27 | .18 | 1.87 | .80 |
| Total from investment operations | (.44) | .25 | .19 | 1.88 | .82 |
| Distributions from net investment income | – | – | – | (.02) | (.01) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.01) | – | (.01) | (.03) | (.01)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.67 | $11.12 | $10.87 | $10.69 | $8.84 |
| Total ReturnE,F | (3.98)% | 2.30% | 1.77% | 21.29% | 10.27% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.07% | 2.06% | 2.12% | 2.19% | 2.33% |
| Expenses net of fee waivers, if any | 2.07% | 2.06% | 2.12% | 2.18% | 2.20% |
| Expenses net of all reductions | 2.06% | 2.05% | 2.12% | 2.17% | 2.19% |
| Net investment income (loss) | .26%B | (.15)% | .06% | .05% | .24% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $52,738 | $52,378 | $32,737 | $17,196 | $5,648 |
| Portfolio turnover rateI | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12) %.
C Total distributions of $.01 per share is comprised of distributions from net investment income of $.007 and distributions from net realized gain of $.006 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.38 | $11.10 | $10.84 | $8.95 | $8.12 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15B | .11 | .13 | .11 | .11 |
| Net realized and unrealized gain (loss) | (.47) | .26 | .19 | 1.88 | .81 |
| Total from investment operations | (.32) | .37 | .32 | 1.99 | .92 |
| Distributions from net investment income | (.08) | (.09) | (.05) | (.10) | (.08) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.09) | (.09) | (.06) | (.10)C | (.09) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.97 | $11.38 | $11.10 | $10.84 | $8.95 |
| Total ReturnE | (2.87)% | 3.36% | 2.96% | 22.48% | 11.41% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .99% | .97% | 1.04% | 1.13% | 1.28% |
| Expenses net of fee waivers, if any | .99% | .97% | 1.04% | 1.13% | 1.20% |
| Expenses net of all reductions | .98% | .96% | 1.04% | 1.11% | 1.19% |
| Net investment income (loss) | 1.34%B | .94% | 1.14% | 1.11% | 1.24% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,038,771 | $938,348 | $635,607 | $430,914 | $149,526 |
| Portfolio turnover rateH | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .96%.
C Total distributions of $.10 per share is comprised of distributions from net investment income of $.097 and distributions from net realized gain of $.005 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.36 | $11.08 | $10.84 | $8.94 | $8.12 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15B | .11 | .13 | .11 | .10 |
| Net realized and unrealized gain (loss) | (.47) | .27 | .18 | 1.90 | .81 |
| Total from investment operations | (.32) | .38 | .31 | 2.01 | .91 |
| Distributions from net investment income | (.08) | (.10) | (.06) | (.10) | (.08) |
| Distributions from net realized gain | (.01) | – | (.01) | (.01) | (.01) |
| Total distributions | (.09) | (.10) | (.07) | (.11) | (.09) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.95 | $11.36 | $11.08 | $10.84 | $8.94 |
| Total ReturnD | (2.87)% | 3.41% | 2.84% | 22.66% | 11.28% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .98% | .98% | 1.04% | 1.11% | 1.27% |
| Expenses net of fee waivers, if any | .98% | .98% | 1.04% | 1.11% | 1.20% |
| Expenses net of all reductions | .98% | .97% | 1.04% | 1.09% | 1.19% |
| Net investment income (loss) | 1.34%B | .94% | 1.14% | 1.13% | 1.24% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $359,676 | $267,745 | $121,554 | $38,771 | $3,992 |
| Portfolio turnover rateG | 29% | 26% | 27% | 32% | 32% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .97%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Growth Fund Class Z
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 A |
| Selected Per–Share Data | ||||
| Net asset value, beginning of period | $11.38 | $11.10 | $10.84 | $10.26 |
| Income from Investment Operations | ||||
| Net investment income (loss)B | .16C | .12 | .14 | .02 |
| Net realized and unrealized gain (loss) | (.47) | .27 | .19 | .56 |
| Total from investment operations | (.31) | .39 | .33 | .58 |
| Distributions from net investment income | (.09) | (.11) | (.06) | – |
| Distributions from net realized gain | (.01) | – | (.01) | – |
| Total distributions | (.10) | (.11) | (.07) | – |
| Redemption fees added to paid in capitalB,D | – | – | – | – |
| Net asset value, end of period | $10.97 | $11.38 | $11.10 | $10.84 |
| Total ReturnE,F | (2.73)% | 3.52% | 3.07% | 5.65% |
| Ratios to Average Net AssetsG,H | ||||
| Expenses before reductions | .85% | .84% | .88% | .94%I |
| Expenses net of fee waivers, if any | .85% | .84% | .88% | .94%I |
| Expenses net of all reductions | .84% | .83% | .88% | .93%I |
| Net investment income (loss) | 1.48%C | 1.07% | 1.30% | .65%I |
| Supplemental Data | ||||
| Net assets, end of period (000 omitted) | $16,977 | $897 | $104 | $106 |
| Portfolio turnover rateJ | 29% | 26% | 27% | 32% |
A For the period August 13, 2013 (commencement of sale of shares) to October 31, 2013.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.10%.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Growth 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, International Growth, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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), 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 | $194,817,402 |
| Gross unrealized depreciation | (93,740,676) |
| Net unrealized appreciation (depreciation) on securities | $101,076,726 |
| Tax Cost | $1,671,769,987 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $17,436,066 |
| Capital loss carryforward | $(72,855,771) |
| Net unrealized appreciation (depreciation) on securities and other investments | $100,928,725 |
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 fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(52,216,684) |
| Long-term | (20,639,087) |
| Total no expiration | $(72,855,771) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $10,375,718 | $ 7,019,924 |
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. In November 2016, the Board of Trustees approved the elimination of these redemption fees effective December 12, 2016.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $719,164,252 and $454,780,987, 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 International Growth as compared to its benchmark index, the MSCI EAFE Growth Index, over the same 36 month performance period. For the reporting period, the total annual 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $537,307 | $5,744 |
| Class T | .25% | .25% | 140,372 | 186 |
| Class B | .75% | .25% | 4,121 | 3,091 |
| Class C | .75% | .25% | 537,659 | 174,241 |
| $1,219,459 | $183,262 |
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 by FDC |
|
| Class A | $77,780 |
| Class T | 10,120 |
| Class B(a) | 6 |
| Class C(a) | 11,155 |
| $99,061 |
(a) 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, except for Class Z. FIIOC receives an asset-based fee of Class Z'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 Class-Level Average Net Assets |
|
| Class A | $474,896 | .22 |
| Class T | 87,703 | .31 |
| Class B | 1,164 | .29 |
| Class C | 142,761 | .27 |
| International Growth | 1,826,434 | .19 |
| Class I | 595,723 | .18 |
| Class Z | 6,136 | .05 |
| $3,134,817 |
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 $1,345 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $47,546.
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 $4,143 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $587,874, including $40,912 from 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 $74,635 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $10,726.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $857,372 | $684,914 |
| Class T | 25,900 | 29,128 |
| International Growth | 6,508,406 | 5,239,951 |
| Class I | 1,913,593 | 1,064,923 |
| Class Z | 8,317 | 1,008 |
| Total | $9,313,588 | $7,019,924 |
| From net realized gain | ||
| Class A | $137,180 | $– |
| Class T | 20,720 | – |
| Class B | 561 | – |
| Class C | 39,156 | – |
| International Growth | 667,539 | – |
| Class I | 196,266 | – |
| Class Z | 708 | – |
| Total | $1,062,130 | $– |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 9,759,153 | 9,298,452 | $106,168,466 | $105,707,223 |
| Reinvestment of distributions | 86,347 | 60,570 | 970,544 | 669,298 |
| Shares redeemed | (5,818,948) | (3,798,128) | (63,754,387) | (42,982,992) |
| Net increase (decrease) | 4,026,552 | 5,560,894 | $43,384,623 | $63,393,529 |
| Class T | ||||
| Shares sold | 648,968 | 1,158,910 | $7,086,728 | $13,286,739 |
| Reinvestment of distributions | 4,067 | 2,593 | 45,714 | 28,654 |
| Shares redeemed | (635,077) | (1,005,399) | (6,841,439) | (11,627,373) |
| Net increase (decrease) | 17,958 | 156,104 | $291,003 | $1,688,020 |
| Class B | ||||
| Shares sold | 1,881 | 30,282 | $19,626 | $347,009 |
| Reinvestment of distributions | 50 | – | 556 | – |
| Shares redeemed | (73,599) | (87,349) | (781,848) | (994,341) |
| Net increase (decrease) | (71,668) | (57,067) | $(761,666) | $(647,332) |
| Class C | ||||
| Shares sold | 1,353,782 | 2,689,800 | $14,583,875 | $30,433,427 |
| Reinvestment of distributions | 3,485 | – | 38,678 | – |
| Shares redeemed | (1,125,675) | (991,400) | (12,076,750) | (10,978,888) |
| Net increase (decrease) | 231,592 | 1,698,400 | $2,545,803 | $19,454,539 |
| International Growth | ||||
| Shares sold | 31,953,739 | 39,705,804 | $351,819,134 | $456,131,993 |
| Reinvestment of distributions | 515,203 | 387,169 | 5,821,794 | 4,301,448 |
| Shares redeemed | (20,188,262) | (14,942,156) | (220,612,157) | (169,380,325) |
| Net increase (decrease) | 12,280,680 | 25,150,817 | $137,028,771 | $291,053,116 |
| Class I | ||||
| Shares sold | 22,905,807 | 17,728,493 | $249,584,348 | $201,877,753 |
| Reinvestment of distributions | 177,277 | 92,582 | 1,999,688 | 1,026,733 |
| Shares redeemed | (13,798,950) | (5,227,430) | (151,305,009) | (58,733,231) |
| Net increase (decrease) | 9,284,134 | 12,593,645 | $100,279,027 | $144,171,255 |
| Class Z | ||||
| Shares sold | 1,706,835 | 88,007 | $18,446,844 | $956,120 |
| Reinvestment of distributions | 799 | 91 | 9,025 | 1,008 |
| Shares redeemed | (238,655) | (18,621) | (2,649,876) | (208,779) |
| Net increase (decrease) | 1,468,979 | 69,477 | $15,805,993 | $748,349 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Growth Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity International Growth Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity International Growth Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 14, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.29% | |||
| Actual | $1,000.00 | $992.70 | $6.46 | |
| Hypothetical-C | $1,000.00 | $1,018.65 | $6.55 | |
| Class T | 1.63% | |||
| Actual | $1,000.00 | $990.90 | $8.16 | |
| Hypothetical-C | $1,000.00 | $1,016.94 | $8.26 | |
| Class C | 2.08% | |||
| Actual | $1,000.00 | $988.90 | $10.40 | |
| Hypothetical-C | $1,000.00 | $1,014.68 | $10.53 | |
| International Growth | 1.01% | |||
| Actual | $1,000.00 | $994.60 | $5.06 | |
| Hypothetical-C | $1,000.00 | $1,020.06 | $5.13 | |
| Class I | 1.00% | |||
| Actual | $1,000.00 | $994.60 | $5.01 | |
| Hypothetical-C | $1,000.00 | $1,020.11 | $5.08 | |
| Class Z | .86% | |||
| Actual | $1,000.00 | $995.50 | $4.31 | |
| Hypothetical-C | $1,000.00 | $1,020.81 | $4.37 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Fidelity International Growth Fund designates 16%, Class A designates 22%, Class B designates 74%, Class C designates 74%, Class T designates 50%, Class I designates 16%, and Class Z designates 14% of the dividends distributed in December 2015 during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity International Growth Fund, Class A, Class B, Class C, Class T, Class I, and Class Z designate 100% of the dividends distributed 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 | |
| Fidelity International Growth Fund | |||
| Fidelity International Growth Fund | 12/07/15 | $0.099 | $0.013 |
| Fidelity International Growth Fund: Class A | 12/07/15 | $0.071 | $0.013 |
| Fidelity International Growth Fund: Class B | 12/07/15 | $0.021 | $0.013 |
| Fidelity International Growth Fund: Class C | 12/07/15 | $0.021 | $0.013 |
| Fidelity International Growth Fund: Class T | 12/07/15 | $0.031 | $0.013 |
| Fidelity International Growth Fund: Class I | 12/07/15 | $0.099 | $0.013 |
| Fidelity International Growth Fund: Class Z | 12/07/15 | $0.115 | $0.013 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Growth Fund
Fidelity International Growth Fund
IGF-ANN-1216
1.912350.106
|
Fidelity Advisor® Total International Equity Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® Total International Equity Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Class A (incl. 5.75% sales charge) | (6.47)% | 4.15% | (1.68)% |
| Class T (incl. 3.50% sales charge) | (4.33)% | 4.37% | (1.66)% |
| Class C (incl. contingent deferred sales charge) | (2.40)% | 4.62% | (1.76)% |
| Class I | (0.43)% | 5.66% | (0.76)% |
A From November 1, 2007
Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Total International Equity Fund - Class A on November 1, 2007, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) ex USA Index performed over the same period.
| Period Ending Values | ||
|
| $8,589 | Fidelity Advisor® Total International Equity Fund - Class A |
|
| $9,058 | MSCI ACWI (All Country World Index) ex USA Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.'s June vote to exit the European Union – dubbed "Brexit" – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from "risk off" to "risk on." Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: The fund's share classes (excluding sales charges, if applicable) generated returns ranging from flat to about -1% for the fiscal year, modestly trailing the benchmark MSCI ACWI index. Among sectors, stock selection and underweightings in materials and energy hampered the fund's relative returns given outperformance in those categories. The fund also was hurt by overweighting the lagging health care sector, although good security selection in the group mostly counterbalanced results. Overweighting technology and stock picks in consumer discretionary also added value. Among individual stocks, the fund was hampered by not owning Korea's Samsung Electronics for much of the period; missing gains in this major index name detracted from results. We also were hurt by overweighting Novartis, a Swiss pharmaceutical manufacturer that came under pressure due to mounting concerns about drug pricing. At period end, Novartis was one of the fund's largest holdings. Other detractors included bank stocks Seven Bank (Japan) and Lloyds Banking Group (U.K.), the latter of which fell sharply after Brexit. The fund's top relative contributor was Taiwan Semiconductor Manufacturing, a contract semiconductor manufacturer and one of our largest positions. Also adding value were out-of-benchmark stakes in Fagerhult, a Swedish maker of high-end lighting fixtures, and S&P Global, a U.S.-based provider of financial information.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 13.7% | |
| United States of America* | 11.7% | |
| United Kingdom | 11.5% | |
| Switzerland | 6.9% | |
| France | 5.4% | |
| Canada | 5.1% | |
| Germany | 3.9% | |
| Cayman Islands | 3.5% | |
| Australia | 3.2% | |
| Other | 35.1% | |
* 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 April 30, 2016 | ||
| Japan | 13.7% | |
| United Kingdom | 13.5% | |
| United States of America* | 12.7% | |
| Switzerland | 7.7% | |
| France | 7.0% | |
| Germany | 3.8% | |
| India | 3.3% | |
| Australia | 3.2% | |
| Spain | 2.8% | |
| Other | 32.3% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 98.3 | 98.5 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.7 | 1.5 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 2.2 | 2.6 |
| Novartis AG (Switzerland, Pharmaceuticals) | 1.3 | 1.8 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.3 | 1.5 |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 1.3 | 1.2 |
| AIA Group Ltd. (Hong Kong, Insurance) | 1.1 | 0.8 |
| Toyota Motor Corp. (Japan, Automobiles) | 1.1 | 0.8 |
| Total SA (France, Oil, Gas & Consumable Fuels) | 1.0 | 1.2 |
| Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 1.0 | 1.3 |
| SAP AG (Germany, Software) | 1.0 | 0.9 |
| Naspers Ltd. Class N (South Africa, Media) | 1.0 | 0.8 |
| 12.3 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 17.1 | 19.3 |
| Information Technology | 14.4 | 12.4 |
| Consumer Staples | 14.1 | 13.7 |
| Consumer Discretionary | 12.1 | 13.8 |
| Health Care | 11.8 | 14.1 |
| Industrials | 11.5 | 11.3 |
| Materials | 7.7 | 5.2 |
| Energy | 4.0 | 3.6 |
| Real Estate | 2.1 | 0.0 |
| Utilities | 1.7 | 2.2 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.2% | |||
| Shares | Value | ||
| Argentina - 0.3% | |||
| Banco Macro SA sponsored ADR | 5,500 | $419,265 | |
| Grupo Financiero Galicia SA sponsored ADR | 12,300 | 383,022 | |
| TOTAL ARGENTINA | 802,287 | ||
| Australia - 3.2% | |||
| Amcor Ltd. | 28,434 | 317,957 | |
| Ansell Ltd. (a) | 22,997 | 379,441 | |
| Beacon Lighting Group Ltd. | 40,231 | 51,873 | |
| CSL Ltd. | 39,774 | 3,041,039 | |
| DuluxGroup Ltd. | 26,523 | 129,934 | |
| Imdex Ltd. (a) | 134,227 | 61,264 | |
| Insurance Australia Group Ltd. | 174,629 | 731,950 | |
| Macquarie Group Ltd. | 14,748 | 895,261 | |
| Magellan Financial Group Ltd. | 22,171 | 359,066 | |
| RCG Corp. Ltd. | 104,518 | 115,682 | |
| Sydney Airport unit | 145,199 | 691,435 | |
| TFS Corp. Ltd. | 72,586 | 77,303 | |
| Transurban Group unit | 90,378 | 714,318 | |
| Westpac Banking Corp. | 100,266 | 2,318,646 | |
| TOTAL AUSTRALIA | 9,885,169 | ||
| Austria - 0.6% | |||
| Andritz AG | 25,772 | 1,348,076 | |
| Buwog-Gemeinnuetzige Wohnung | 23,117 | 558,668 | |
| Zumtobel AG | 2,800 | 49,164 | |
| TOTAL AUSTRIA | 1,955,908 | ||
| Bailiwick of Jersey - 0.2% | |||
| Integrated Diagnostics Holdings PLC | 22,500 | 61,875 | |
| Wolseley PLC | 9,709 | 505,181 | |
| TOTAL BAILIWICK OF JERSEY | 567,056 | ||
| Belgium - 1.9% | |||
| Anheuser-Busch InBev SA NV | 34,071 | 3,910,321 | |
| Gimv NV | 819 | 44,054 | |
| KBC Ancora (a) | 4,281 | 162,414 | |
| KBC Groep NV | 27,961 | 1,703,834 | |
| TOTAL BELGIUM | 5,820,623 | ||
| Bermuda - 0.7% | |||
| Axalta Coating Systems (a) | 12,700 | 319,024 | |
| Cheung Kong Infrastructure Holdings Ltd. | 41,000 | 335,959 | |
| China Gas Holdings Ltd. | 240,000 | 365,777 | |
| China Resource Gas Group Ltd. | 125,000 | 392,461 | |
| Credicorp Ltd. (United States) | 3,800 | 564,984 | |
| Vostok New Ventures Ltd. SDR (a) | 13,260 | 99,463 | |
| TOTAL BERMUDA | 2,077,668 | ||
| Brazil - 1.3% | |||
| BB Seguridade Participacoes SA | 47,500 | 478,274 | |
| CCR SA | 73,200 | 397,876 | |
| Cielo SA | 53,036 | 538,335 | |
| Kroton Educacional SA | 96,900 | 482,679 | |
| Odontoprev SA | 79,300 | 298,120 | |
| Qualicorp SA | 59,200 | 380,942 | |
| Smiles SA | 20,100 | 366,863 | |
| Ultrapar Participacoes SA | 23,100 | 523,441 | |
| Weg SA | 77,900 | 429,524 | |
| TOTAL BRAZIL | 3,896,054 | ||
| Canada - 5.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 59,103 | 2,969,030 | |
| Canadian National Railway Co. | 31,059 | 1,952,505 | |
| Cara Operations Ltd. | 53,859 | 1,067,302 | |
| CCL Industries, Inc. Class B | 8,166 | 1,452,261 | |
| Constellation Software, Inc. | 3,762 | 1,762,359 | |
| Franco-Nevada Corp. | 18,500 | 1,210,851 | |
| Imperial Oil Ltd. | 70,726 | 2,293,731 | |
| McCoy Global, Inc. (a) | 15,800 | 20,614 | |
| New Look Vision Group, Inc. | 3,100 | 65,129 | |
| Pason Systems, Inc. | 75,878 | 862,700 | |
| Potash Corp. of Saskatchewan, Inc. | 113,126 | 1,839,468 | |
| ShawCor Ltd. Class A | 1,500 | 37,520 | |
| Tesco Corp. | 5,100 | 34,935 | |
| TOTAL CANADA | 15,568,405 | ||
| Cayman Islands - 3.5% | |||
| 58.com, Inc. ADR (a) | 10,300 | 431,055 | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | 28,700 | 2,918,503 | |
| Baidu.com, Inc. sponsored ADR (a) | 7,100 | 1,255,706 | |
| Ctrip.com International Ltd. ADR (a) | 14,200 | 626,930 | |
| International Housewares Retail Co. Ltd. | 250,000 | 49,964 | |
| NetEase, Inc. ADR | 2,700 | 693,873 | |
| New Oriental Education & Technology Group, Inc. sponsored ADR | 9,500 | 476,235 | |
| Shenzhou International Group Holdings Ltd. | 67,000 | 444,475 | |
| Sino Biopharmaceutical Ltd. | 630,000 | 441,091 | |
| TAL Education Group ADR (a) | 4,900 | 399,056 | |
| Tencent Holdings Ltd. | 114,400 | 3,031,867 | |
| Value Partners Group Ltd. | 49,000 | 46,880 | |
| TOTAL CAYMAN ISLANDS | 10,815,635 | ||
| China - 0.4% | |||
| Inner Mongoli Yili Industries Co. Ltd. (A Shares) | 126,100 | 334,800 | |
| Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 55,516 | 378,038 | |
| Kweichow Moutai Co. Ltd. (A Shares) | 7,240 | 339,732 | |
| Shanghai International Airport Co. Ltd. (A Shares) | 83,200 | 332,884 | |
| TOTAL CHINA | 1,385,454 | ||
| Denmark - 0.8% | |||
| Jyske Bank A/S (Reg.) | 14,354 | 651,415 | |
| Novo Nordisk A/S Series B sponsored ADR | 49,500 | 1,759,230 | |
| Scandinavian Tobacco Group A/S | 4,110 | 71,151 | |
| Spar Nord Bank A/S | 11,631 | 116,725 | |
| TOTAL DENMARK | 2,598,521 | ||
| Finland - 0.6% | |||
| Sampo Oyj (A Shares) | 27,053 | 1,239,407 | |
| Tikkurila Oyj | 26,280 | 506,298 | |
| TOTAL FINLAND | 1,745,705 | ||
| France - 5.4% | |||
| Atos Origin SA | 13,929 | 1,446,793 | |
| AXA SA | 77,606 | 1,750,971 | |
| Capgemini SA | 13,102 | 1,085,608 | |
| Dassault Systemes SA | 4,100 | 324,686 | |
| Elis SA | 6,500 | 108,030 | |
| Essilor International SA | 9,785 | 1,099,928 | |
| Havas SA | 73,304 | 596,359 | |
| Laurent-Perrier Group SA | 759 | 58,323 | |
| Sanofi SA | 23,403 | 1,821,194 | |
| Societe Generale Series A | 40,900 | 1,595,407 | |
| SR Teleperformance SA | 6,900 | 729,195 | |
| Total SA | 66,278 | 3,175,041 | |
| Vetoquinol SA | 1,700 | 85,489 | |
| VINCI SA | 24,900 | 1,803,496 | |
| Virbac SA (a) | 730 | 116,197 | |
| Vivendi SA | 48,952 | 990,815 | |
| TOTAL FRANCE | 16,787,532 | ||
| Germany - 3.8% | |||
| Axel Springer Verlag AG | 9,700 | 485,717 | |
| BASF AG | 24,289 | 2,141,059 | |
| Bayer AG | 17,300 | 1,717,712 | |
| CompuGroup Medical AG | 7,646 | 338,506 | |
| CTS Eventim AG | 8,180 | 293,902 | |
| Fielmann AG | 1,858 | 128,863 | |
| Fresenius SE & Co. KGaA | 13,500 | 996,472 | |
| GEA Group AG | 13,775 | 532,655 | |
| HeidelbergCement Finance AG | 8,400 | 794,490 | |
| Linde AG | 5,100 | 841,458 | |
| Nexus AG | 4,000 | 82,243 | |
| SAP AG | 35,457 | 3,123,741 | |
| Wirecard AG | 7,300 | 346,307 | |
| TOTAL GERMANY | 11,823,125 | ||
| Hong Kong - 1.7% | |||
| AIA Group Ltd. | 535,200 | 3,377,973 | |
| CSPC Pharmaceutical Group Ltd. | 442,000 | 458,211 | |
| Guangdong Investment Ltd. | 286,000 | 432,196 | |
| Power Assets Holdings Ltd. | 81,500 | 766,603 | |
| Techtronic Industries Co. Ltd. | 96,500 | 363,327 | |
| TOTAL HONG KONG | 5,398,310 | ||
| India - 2.8% | |||
| Amara Raja Batteries Ltd. | 24,169 | 366,799 | |
| Asian Paints Ltd. | 24,503 | 393,008 | |
| Colgate-Palmolive Ltd. | 23,160 | 337,876 | |
| Divi's Laboratories Ltd. | 19,223 | 368,838 | |
| Eicher Motors Ltd. | 1,079 | 388,538 | |
| GlaxoSmithKline Consumer Healthcare Ltd. | 3,715 | 338,555 | |
| Godrej Consumer Products Ltd. | 17,171 | 414,207 | |
| HDFC Bank Ltd. | 16,436 | 367,279 | |
| Hindustan Unilever Ltd. | 33,095 | 415,018 | |
| Housing Development Finance Corp. Ltd. | 81,505 | 1,700,468 | |
| IndusInd Bank Ltd. | 19,406 | 349,047 | |
| ITC Ltd. | 152,350 | 555,221 | |
| Jyothy Laboratories Ltd. (a) | 16,417 | 88,231 | |
| LIC Housing Finance Ltd. | 46,068 | 402,458 | |
| Power Grid Corp. of India Ltd. | 133,824 | 352,889 | |
| Sun Pharmaceutical Industries Ltd. | 43,682 | 486,815 | |
| Tata Consultancy Services Ltd. | 16,393 | 589,485 | |
| Titan Co. Ltd. | 38,517 | 215,695 | |
| Zee Entertainment Enterprises Ltd. | 48,431 | 377,796 | |
| TOTAL INDIA | 8,508,223 | ||
| Indonesia - 1.1% | |||
| PT ACE Hardware Indonesia Tbk | 4,363,600 | 285,935 | |
| PT Bank Central Asia Tbk | 515,600 | 613,480 | |
| PT Bank Rakyat Indonesia Tbk | 1,292,600 | 1,208,593 | |
| PT Kalbe Farma Tbk | 2,908,100 | 387,806 | |
| PT Matahari Department Store Tbk | 290,100 | 400,755 | |
| PT Surya Citra Media Tbk | 1,739,300 | 353,245 | |
| TOTAL INDONESIA | 3,249,814 | ||
| Ireland - 1.9% | |||
| Allergan PLC (a) | 2,300 | 480,562 | |
| CRH PLC | 23,300 | 756,413 | |
| CRH PLC sponsored ADR | 54,729 | 1,767,747 | |
| FBD Holdings PLC (a) | 5,372 | 35,972 | |
| James Hardie Industries PLC CDI | 119,570 | 1,785,484 | |
| Medtronic PLC | 11,000 | 902,220 | |
| TOTAL IRELAND | 5,728,398 | ||
| Isle of Man - 0.2% | |||
| Playtech Ltd. | 49,458 | 561,780 | |
| Israel - 0.6% | |||
| Azrieli Group | 9,396 | 400,205 | |
| Frutarom Industries Ltd. | 7,300 | 386,284 | |
| Ituran Location & Control Ltd. | 5,061 | 134,623 | |
| Strauss Group Ltd. | 6,859 | 107,990 | |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 19,209 | 820,993 | |
| TOTAL ISRAEL | 1,850,095 | ||
| Italy - 0.6% | |||
| Azimut Holding SpA | 23,314 | 374,169 | |
| Beni Stabili SpA SIIQ | 141,826 | 82,749 | |
| Interpump Group SpA | 46,991 | 754,164 | |
| Telecom Italia SpA (a) | 609,100 | 529,487 | |
| TOTAL ITALY | 1,740,569 | ||
| Japan - 13.7% | |||
| Aoki Super Co. Ltd. | 6,000 | 74,950 | |
| Artnature, Inc. | 11,900 | 72,850 | |
| Asahi Co. Ltd. | 6,300 | 76,174 | |
| Astellas Pharma, Inc. | 160,800 | 2,386,572 | |
| Autobacs Seven Co. Ltd. | 5,800 | 82,628 | |
| Azbil Corp. | 9,000 | 267,760 | |
| Broadleaf Co. Ltd. | 2,700 | 30,406 | |
| Central Automotive Products Ltd. | 8,000 | 69,267 | |
| Century21 Real Estate Japan Ltd. | 4,000 | 50,234 | |
| Coca-Cola Central Japan Co. Ltd. | 1,400 | 30,918 | |
| Daiichikosho Co. Ltd. | 3,500 | 152,355 | |
| Daikokutenbussan Co. Ltd. | 4,000 | 188,233 | |
| Daito Trust Construction Co. Ltd. | 4,900 | 821,183 | |
| DENSO Corp. | 26,800 | 1,166,606 | |
| Dentsu, Inc. | 10,600 | 529,646 | |
| East Japan Railway Co. | 16,800 | 1,482,956 | |
| Fuji Heavy Industries Ltd. | 24,300 | 948,643 | |
| Funai Soken Holdings, Inc. | 3,300 | 51,103 | |
| GCA Savvian Group Corp. | 8,800 | 65,872 | |
| Goldcrest Co. Ltd. | 8,560 | 155,985 | |
| Hokuriku Electrical Construction Co. Ltd. | 6,000 | 49,147 | |
| Hoya Corp. | 44,200 | 1,848,164 | |
| Hub Co. Ltd. | 2,500 | 41,218 | |
| Itochu Corp. | 68,900 | 872,830 | |
| Iwatsuka Confectionary Co. Ltd. | 800 | 26,585 | |
| Japan Digital Laboratory Co. | 6,600 | 102,836 | |
| Japan Tobacco, Inc. | 65,320 | 2,487,728 | |
| Kao Corp. | 9,700 | 499,938 | |
| KDDI Corp. | 30,200 | 917,874 | |
| Keyence Corp. | 2,621 | 1,925,949 | |
| Kobayashi Pharmaceutical Co. Ltd. | 4,000 | 209,402 | |
| Komatsu Ltd. | 35,400 | 787,972 | |
| Koshidaka Holdings Co. Ltd. | 4,000 | 65,147 | |
| Kusuri No Aoki Co. Ltd. | 1,000 | 51,111 | |
| Lasertec Corp. | 6,300 | 122,432 | |
| Makita Corp. | 10,900 | 755,631 | |
| Medikit Co. Ltd. | 1,800 | 78,183 | |
| Misumi Group, Inc. | 37,400 | 683,664 | |
| Mitsubishi UFJ Financial Group, Inc. | 482,600 | 2,490,125 | |
| Mitsui Fudosan Co. Ltd. | 46,000 | 1,048,565 | |
| Nagaileben Co. Ltd. | 9,200 | 202,475 | |
| Nakano Refrigerators Co. Ltd. | 2,000 | 53,972 | |
| ND Software Co. Ltd. | 6,000 | 48,517 | |
| Nihon Parkerizing Co. Ltd. | 19,600 | 271,002 | |
| Nintendo Co. Ltd. | 3,500 | 843,711 | |
| Nippon Prologis REIT, Inc. | 53 | 119,928 | |
| Nippon Telegraph & Telephone Corp. | 33,900 | 1,503,019 | |
| NS Tool Co. Ltd. | 3,800 | 92,762 | |
| OBIC Co. Ltd. | 17,700 | 921,541 | |
| Olympus Corp. | 52,900 | 1,891,628 | |
| ORIX Corp. | 76,200 | 1,210,175 | |
| OSG Corp. | 37,000 | 789,959 | |
| Paramount Bed Holdings Co. Ltd. | 3,400 | 129,684 | |
| ProNexus, Inc. | 8,400 | 88,830 | |
| San-Ai Oil Co. Ltd. | 11,000 | 77,725 | |
| Seven & i Holdings Co. Ltd. | 21,800 | 911,122 | |
| Seven Bank Ltd. | 103,300 | 318,164 | |
| Shin-Etsu Chemical Co. Ltd. | 6,600 | 501,655 | |
| SHO-BOND Holdings Co. Ltd. | 22,100 | 1,068,437 | |
| Shoei Co. Ltd. | 5,800 | 105,857 | |
| SK Kaken Co. Ltd. | 1,100 | 114,647 | |
| Software Service, Inc. | 1,600 | 64,842 | |
| Sony Corp. | 30,600 | 964,458 | |
| Sony Financial Holdings, Inc. | 36,800 | 517,944 | |
| Techno Medica Co. Ltd. | 1,800 | 30,775 | |
| The Monogatari Corp. | 1,500 | 69,014 | |
| TKC Corp. | 3,300 | 97,707 | |
| Tocalo Co. Ltd. | 2,800 | 62,958 | |
| Toyota Motor Corp. | 55,800 | 3,236,777 | |
| Tsutsumi Jewelry Co. Ltd. | 2,400 | 38,081 | |
| USS Co. Ltd. | 105,600 | 1,790,377 | |
| Welcia Holdings Co. Ltd. | 900 | 61,533 | |
| Workman Co. Ltd. | 3,800 | 120,664 | |
| Yamada Consulting Group Co. Ltd. | 2,000 | 84,486 | |
| Yamato Kogyo Co. Ltd. | 1,700 | 47,935 | |
| TOTAL JAPAN | 42,221,203 | ||
| Kenya - 0.3% | |||
| Safaricom Ltd. | 4,026,600 | 786,306 | |
| Korea (South) - 2.1% | |||
| AMOREPACIFIC Corp. | 1,788 | 561,215 | |
| AMOREPACIFIC Group, Inc. | 3,370 | 436,072 | |
| BGFretail Co. Ltd. | 5,676 | 863,493 | |
| Coway Co. Ltd. | 5,672 | 444,336 | |
| KT&G Corp. | 5,138 | 507,621 | |
| Leeno Industrial, Inc. | 1,292 | 48,573 | |
| LG Household & Health Care Ltd. | 644 | 461,707 | |
| NAVER Corp. | 1,015 | 760,526 | |
| Samsung Biologics Co. Ltd. (a) | 493 | 58,621 | |
| Samsung Electronics Co. Ltd. | 1,708 | 2,447,563 | |
| TOTAL KOREA (SOUTH) | 6,589,727 | ||
| Luxembourg - 0.2% | |||
| Eurofins Scientific SA | 800 | 363,487 | |
| RTL Group SA | 3,469 | 270,565 | |
| TOTAL LUXEMBOURG | 634,052 | ||
| Mexico - 1.9% | |||
| Banregio Grupo Financiero S.A.B. de CV | 56,000 | 366,914 | |
| Consorcio ARA S.A.B. de CV | 254,355 | 95,815 | |
| Embotelladoras Arca S.A.B. de CV | 56,700 | 352,841 | |
| Fomento Economico Mexicano S.A.B. de CV: | |||
| unit | 70,800 | 679,120 | |
| sponsored ADR | 6,733 | 644,146 | |
| Gruma S.A.B. de CV Series B | 30,770 | 426,932 | |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 42,600 | 411,756 | |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | 26,675 | 424,279 | |
| Grupo Aeroportuario Norte S.A.B. de CV | 56,800 | 330,474 | |
| Grupo Financiero Banorte S.A.B. de CV Series O | 99,200 | 584,199 | |
| Kimberly-Clark de Mexico SA de CV Series A | 180,400 | 389,033 | |
| Megacable Holdings S.A.B. de CV unit | 92,900 | 337,765 | |
| Promotora y Operadora de Infraestructura S.A.B. de CV | 33,525 | 374,786 | |
| Wal-Mart de Mexico SA de CV Series V | 258,200 | 546,290 | |
| TOTAL MEXICO | 5,964,350 | ||
| Netherlands - 1.9% | |||
| Aalberts Industries NV | 6,100 | 192,685 | |
| ASML Holding NV (Netherlands) | 10,900 | 1,153,154 | |
| Heijmans NV (Certificaten Van Aandelen) (a) | 4,481 | 42,977 | |
| ING Groep NV (Certificaten Van Aandelen) | 141,276 | 1,854,533 | |
| PostNL NV (a) | 55,000 | 259,135 | |
| RELX NV | 70,060 | 1,181,389 | |
| Takeaway.com Holding BV (b) | 1,800 | 42,335 | |
| VastNed Retail NV | 4,191 | 161,069 | |
| Wolters Kluwer NV | 17,474 | 676,264 | |
| Yandex NV Series A (a) | 16,800 | 330,792 | |
| TOTAL NETHERLANDS | 5,894,333 | ||
| Norway - 0.3% | |||
| Kongsberg Gruppen ASA | 4,700 | 67,124 | |
| Statoil ASA | 53,200 | 868,544 | |
| TOTAL NORWAY | 935,668 | ||
| Philippines - 0.6% | |||
| Ayala Corp. | 22,190 | 382,590 | |
| Ayala Land, Inc. | 551,100 | 412,504 | |
| D&L Industries, Inc. | 1,493,800 | 338,676 | |
| Jollibee Food Corp. | 18,980 | 93,275 | |
| SM Investments Corp. | 27,670 | 383,945 | |
| SM Prime Holdings, Inc. | 700,800 | 389,257 | |
| TOTAL PHILIPPINES | 2,000,247 | ||
| Russia - 0.6% | |||
| Magnit OJSC | 3,208 | 537,861 | |
| NOVATEK OAO GDR (Reg. S) | 4,500 | 481,050 | |
| Sberbank of Russia (a) | 318,370 | 741,054 | |
| TOTAL RUSSIA | 1,759,965 | ||
| South Africa - 2.4% | |||
| Aspen Pharmacare Holdings Ltd. | 21,500 | 468,356 | |
| Bidcorp Ltd. | 24,832 | 437,846 | |
| Capitec Bank Holdings Ltd. | 8,500 | 431,816 | |
| Clicks Group Ltd. | 60,693 | 564,900 | |
| Discovery Ltd. | 49,967 | 427,010 | |
| FirstRand Ltd. | 162,500 | 582,331 | |
| Mondi Ltd. | 18,400 | 359,574 | |
| Naspers Ltd. Class N | 18,400 | 3,083,872 | |
| Sanlam Ltd. | 100,400 | 486,671 | |
| Shoprite Holdings Ltd. | 31,100 | 458,990 | |
| TOTAL SOUTH AFRICA | 7,301,366 | ||
| Spain - 3.2% | |||
| Amadeus IT Holding SA Class A | 39,400 | 1,859,808 | |
| Banco Bilbao Vizcaya Argentaria SA | 41,500 | 298,746 | |
| Banco Santander SA (Spain) | 134,400 | 658,564 | |
| CaixaBank SA | 225,800 | 681,326 | |
| Hispania Activos Inmobiliarios SA | 50,395 | 620,703 | |
| Iberdrola SA | 230,220 | 1,569,163 | |
| Inditex SA | 78,736 | 2,752,441 | |
| Mediaset Espana Comunicacion SA | 26,700 | 298,228 | |
| Merlin Properties Socimi SA | 33,300 | 374,324 | |
| Prosegur Compania de Seguridad SA (Reg.) | 94,276 | 685,114 | |
| TOTAL SPAIN | 9,798,417 | ||
| Sweden - 2.6% | |||
| Addlife AB (a) | 3,000 | 46,334 | |
| AddTech AB (B Shares) | 5,000 | 71,135 | |
| ASSA ABLOY AB (B Shares) | 143,500 | 2,607,891 | |
| Fagerhult AB | 31,155 | 793,349 | |
| Intrum Justitia AB | 2,763 | 85,195 | |
| Loomis AB (B Shares) | 3,300 | 93,898 | |
| Nordea Bank AB | 143,867 | 1,512,394 | |
| Saab AB (B Shares) | 4,100 | 145,259 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 27,300 | 773,467 | |
| Svenska Handelsbanken AB (A Shares) | 55,245 | 753,162 | |
| Swedbank AB (A Shares) | 42,000 | 983,952 | |
| TOTAL SWEDEN | 7,866,036 | ||
| Switzerland - 6.9% | |||
| ABB Ltd. (Reg.) | 54,740 | 1,129,310 | |
| Credit Suisse Group AG | 50,421 | 703,513 | |
| Lafargeholcim Ltd. (Reg.) | 17,980 | 960,278 | |
| Nestle SA (Reg. S) | 92,498 | 6,707,391 | |
| Novartis AG | 57,856 | 4,105,900 | |
| Roche Holding AG (participation certificate) | 13,644 | 3,133,777 | |
| Schindler Holding AG: | |||
| (participation certificate) | 5,761 | 1,070,636 | |
| (Reg.) | 1,121 | 207,309 | |
| Sika AG | 90 | 432,560 | |
| Syngenta AG (Switzerland) | 539 | 215,689 | |
| Tecan Group AG | 600 | 98,833 | |
| UBS Group AG | 88,289 | 1,242,226 | |
| Zurich Insurance Group AG | 5,276 | 1,380,381 | |
| TOTAL SWITZERLAND | 21,387,803 | ||
| Taiwan - 1.7% | |||
| Addcn Technology Co. Ltd. | 8,772 | 55,923 | |
| Advantech Co. Ltd. | 44,000 | 358,660 | |
| ECLAT Textile Co. Ltd. | 33,643 | 383,077 | |
| Largan Precision Co. Ltd. | 4,870 | 576,921 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 646,035 | 3,880,653 | |
| TOTAL TAIWAN | 5,255,234 | ||
| Thailand - 0.5% | |||
| Airports of Thailand PCL (For. Reg.) | 38,600 | 419,739 | |
| Bangkok Dusit Medical Services PCL (For. Reg.) | 516,200 | 335,908 | |
| Minor International PCL (For. Reg.) | 341,900 | 375,687 | |
| Thai Beverage PCL | 437,700 | 303,598 | |
| TOTAL THAILAND | 1,434,932 | ||
| United Arab Emirates - 0.1% | |||
| DP World Ltd. | 17,663 | 317,051 | |
| United Kingdom - 11.5% | |||
| AA PLC | 16,973 | 53,205 | |
| Alliance Pharma PLC | 68,814 | 38,113 | |
| Associated British Foods PLC | 6,700 | 201,904 | |
| AstraZeneca PLC (United Kingdom) | 34,128 | 1,911,000 | |
| Aviva PLC | 208,879 | 1,131,869 | |
| Avon Rubber PLC | 4,000 | 48,568 | |
| BAE Systems PLC | 289,721 | 1,919,620 | |
| Bellway PLC | 5,528 | 160,090 | |
| Berendsen PLC | 64,955 | 768,018 | |
| BHP Billiton PLC | 78,575 | 1,181,538 | |
| BP PLC | 343,200 | 2,028,898 | |
| British American Tobacco PLC (United Kingdom) | 12,300 | 704,949 | |
| Britvic PLC | 7,617 | 51,744 | |
| Bunzl PLC | 38,895 | 1,046,888 | |
| Compass Group PLC | 62,107 | 1,123,782 | |
| Dechra Pharmaceuticals PLC | 9,600 | 158,043 | |
| Domino's Pizza UK & IRL PLC | 9,218 | 38,373 | |
| DP Poland PLC (a) | 200,000 | 132,804 | |
| Elementis PLC | 56,008 | 163,295 | |
| Great Portland Estates PLC | 15,372 | 111,763 | |
| Hilton Food Group PLC | 5,400 | 40,021 | |
| Howden Joinery Group PLC | 73,700 | 338,193 | |
| HSBC Holdings PLC sponsored ADR | 48,669 | 1,831,414 | |
| Imperial Tobacco Group PLC | 39,418 | 1,908,435 | |
| Informa PLC | 257,941 | 2,123,216 | |
| InterContinental Hotel Group PLC ADR | 57,812 | 2,280,683 | |
| ITE Group PLC | 44,000 | 77,418 | |
| ITV PLC | 176,219 | 367,755 | |
| JUST EAT Ltd. (a) | 9,740 | 67,000 | |
| Lloyds Banking Group PLC | 1,641,100 | 1,146,018 | |
| Micro Focus International PLC | 36,100 | 946,031 | |
| National Grid PLC | 90,068 | 1,171,584 | |
| NMC Health PLC | 20,800 | 371,959 | |
| Prudential PLC | 76,137 | 1,242,469 | |
| Reckitt Benckiser Group PLC | 27,351 | 2,446,834 | |
| Rightmove PLC | 8,000 | 365,731 | |
| Rio Tinto PLC | 47,002 | 1,634,509 | |
| Royal Dutch Shell PLC Class B (United Kingdom) | 39,540 | 1,019,836 | |
| Shaftesbury PLC | 39,537 | 443,766 | |
| Spectris PLC | 9,670 | 242,521 | |
| Spirax-Sarco Engineering PLC | 5,799 | 313,163 | |
| Ted Baker PLC | 2,375 | 71,948 | |
| Topps Tiles PLC | 45,500 | 50,958 | |
| Ultra Electronics Holdings PLC | 5,901 | 134,200 | |
| Unite Group PLC | 20,151 | 136,520 | |
| Vodafone Group PLC sponsored ADR | 59,126 | 1,646,068 | |
| TOTAL UNITED KINGDOM | 35,392,714 | ||
| United States of America - 10.0% | |||
| A.O. Smith Corp. | 7,400 | 334,258 | |
| Alphabet, Inc.: | |||
| Class A | 1,930 | 1,563,107 | |
| Class C (a) | 431 | 338,137 | |
| Amazon.com, Inc. (a) | 420 | 331,724 | |
| American Tower Corp. | 2,800 | 328,132 | |
| Amphenol Corp. Class A | 5,600 | 369,208 | |
| Autoliv, Inc. | 11,354 | 1,098,840 | |
| Berkshire Hathaway, Inc. Class B (a) | 7,516 | 1,084,559 | |
| Broadridge Financial Solutions, Inc. | 740 | 47,848 | |
| China Biologic Products, Inc. (a) | 9,600 | 1,133,856 | |
| ConocoPhillips Co. | 18,100 | 786,445 | |
| Constellation Brands, Inc. Class A (sub. vtg.) | 5,000 | 835,600 | |
| Domino's Pizza, Inc. | 5,900 | 998,516 | |
| Ecolab, Inc. | 2,600 | 296,842 | |
| Edgewell Personal Care Co. (a) | 4,300 | 324,220 | |
| Energizer Holdings, Inc. | 900 | 41,859 | |
| Facebook, Inc. Class A (a) | 2,500 | 327,475 | |
| Gartner, Inc. (a) | 3,400 | 292,536 | |
| International Flavors & Fragrances, Inc. | 2,600 | 340,028 | |
| Kennedy-Wilson Holdings, Inc. | 4,173 | 85,964 | |
| Martin Marietta Materials, Inc. | 4,470 | 828,649 | |
| MasterCard, Inc. Class A | 23,340 | 2,497,847 | |
| Mettler-Toledo International, Inc. (a) | 900 | 363,672 | |
| Mohawk Industries, Inc. (a) | 7,565 | 1,394,230 | |
| Molson Coors Brewing Co. Class B | 11,900 | 1,235,339 | |
| Moody's Corp. | 9,200 | 924,784 | |
| MSCI, Inc. | 11,600 | 930,204 | |
| NIKE, Inc. Class B | 6,200 | 311,116 | |
| Philip Morris International, Inc. | 18,100 | 1,745,564 | |
| PPG Industries, Inc. | 3,500 | 325,955 | |
| PriceSmart, Inc. | 6,785 | 617,096 | |
| ResMed, Inc. | 11,020 | 658,665 | |
| Reynolds American, Inc. | 24,100 | 1,327,428 | |
| S&P Global, Inc. | 17,000 | 2,071,450 | |
| Sherwin-Williams Co. | 2,700 | 661,122 | |
| SS&C Technologies Holdings, Inc. | 20,208 | 645,241 | |
| TransDigm Group, Inc. | 1,200 | 326,952 | |
| Visa, Inc. Class A | 32,977 | 2,720,932 | |
| Yum! Brands, Inc. | 4,000 | 345,120 | |
| TOTAL UNITED STATES OF AMERICA | 30,890,520 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $262,001,434) | 299,196,255 | ||
| Preferred Stocks - 1.1% | |||
| Convertible Preferred Stocks - 0.2% | |||
| India - 0.2% | |||
| PC Jeweller Ltd. 13.00% (c) | 3,557,622 | 641,313 | |
| Nonconvertible Preferred Stocks - 0.9% | |||
| Brazil - 0.8% | |||
| Ambev SA sponsored ADR | 139,800 | 824,820 | |
| Itau Unibanco Holding SA | 90,970 | 1,094,376 | |
| Itausa-Investimentos Itau SA (PN) | 195,700 | 578,762 | |
| 2,497,958 | |||
| Germany - 0.1% | |||
| Sartorius AG (non-vtg.) | 3,900 | 306,407 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 2,804,365 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $2,777,193) | 3,445,678 | ||
| Money Market Funds - 1.6% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 5,032,207 | 5,033,717 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $5,033,717) | 5,033,717 | ||
| TOTAL INVESTMENT PORTFOLIO - 99.9% | |||
| (Cost $269,812,344) | 307,675,650 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.1% | 334,327 | ||
| NET ASSETS - 100% | $308,009,977 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(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 $42,335 or 0.0% of net assets.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $641,313 or 0.2% of net assets.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PC Jeweller Ltd. 13.00% | 7/28/16 | $530,934 |
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 | $14,031 |
| Fidelity Securities Lending Cash Central Fund | 69,511 |
| Total | $83,542 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $37,873,996 | $30,916,851 | $6,957,145 | $-- |
| Consumer Staples | 42,442,010 | 32,582,836 | 9,859,174 | -- |
| Energy | 12,210,480 | 5,118,161 | 7,092,319 | -- |
| Financials | 52,771,195 | 33,798,106 | 18,973,089 | -- |
| Health Care | 37,136,733 | 22,001,957 | 15,134,776 | -- |
| Industrials | 35,229,107 | 27,602,925 | 7,626,182 | -- |
| Information Technology | 44,453,250 | 32,420,124 | 12,033,126 | -- |
| Materials | 23,454,257 | 19,666,108 | 3,788,149 | -- |
| Real Estate | 6,301,519 | 6,301,519 | -- | -- |
| Telecommunication Services | 5,382,754 | 2,432,374 | 2,950,380 | -- |
| Utilities | 5,386,632 | 4,215,048 | 1,171,584 | -- |
| Money Market Funds | 5,033,717 | 5,033,717 | -- | -- |
| Total Investments in Securities: | $307,675,650 | $222,089,726 | $85,585,924 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $9,305,275 |
| Level 2 to Level 1 | $62,217,779 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $264,778,627) | $302,641,933 | |
| Fidelity Central Funds (cost $5,033,717) | 5,033,717 | |
| Total Investments (cost $269,812,344) | $307,675,650 | |
| Receivable for investments sold | 1,703,656 | |
| Receivable for fund shares sold | 40,575 | |
| Dividends receivable | 1,005,096 | |
| Distributions receivable from Fidelity Central Funds | 2,021 | |
| Prepaid expenses | 809 | |
| Receivable from investment adviser for expense reductions | 3,391 | |
| Other receivables | 24,896 | |
| Total assets | 310,456,094 | |
| Liabilities | ||
| Payable to custodian bank | $750,608 | |
| Payable for investments purchased | 995,260 | |
| Payable for fund shares redeemed | 332,666 | |
| Accrued management fee | 203,776 | |
| Distribution and service plan fees payable | 10,023 | |
| Other affiliated payables | 47,733 | |
| Other payables and accrued expenses | 106,051 | |
| Total liabilities | 2,446,117 | |
| Net Assets | $308,009,977 | |
| Net Assets consist of: | ||
| Paid in capital | $293,083,649 | |
| Undistributed net investment income | 3,810,969 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (26,713,795) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 37,829,154 | |
| Net Assets | $308,009,977 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($8,575,617 ÷ 1,117,667 shares) | $7.67 | |
| Maximum offering price per share (100/94.25 of $7.67) | $8.14 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($13,893,054 ÷ 1,804,873 shares) | $7.70 | |
| Maximum offering price per share (100/96.50 of $7.70) | $7.98 | |
| Class C: | ||
| Net Asset Value and offering price per share ($2,713,045 ÷ 354,377 shares)(a) | $7.66 | |
| Total International Equity: | ||
| Net Asset Value, offering price and redemption price per share ($280,672,096 ÷ 36,473,384 shares) | $7.70 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($2,156,165 ÷ 281,538 shares) | $7.66 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $8,590,858 | |
| Income from Fidelity Central Funds | 83,542 | |
| Income before foreign taxes withheld | 8,674,400 | |
| Less foreign taxes withheld | (700,044) | |
| Total income | 7,974,356 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $2,188,799 | |
| Performance adjustment | 357,171 | |
| Transfer agent fees | 408,973 | |
| Distribution and service plan fees | 119,866 | |
| Accounting and security lending fees | 162,609 | |
| Custodian fees and expenses | 195,092 | |
| Independent trustees' fees and expenses | 1,359 | |
| Registration fees | 74,710 | |
| Audit | 121,613 | |
| Legal | 2,584 | |
| Miscellaneous | 2,496 | |
| Total expenses before reductions | 3,635,272 | |
| Expense reductions | (29,592) | 3,605,680 |
| Net investment income (loss) | 4,368,676 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 3,222,970 | |
| Fidelity Central Funds | 947 | |
| Foreign currency transactions | 15,361 | |
| Total net realized gain (loss) | 3,239,278 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $30,538) | (10,440,884) | |
| Assets and liabilities in foreign currencies | (60,918) | |
| Total change in net unrealized appreciation (depreciation) | (10,501,802) | |
| Net gain (loss) | (7,262,524) | |
| Net increase (decrease) in net assets resulting from operations | $(2,893,848) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $4,368,676 | $4,170,618 |
| Net realized gain (loss) | 3,239,278 | (5,852,740) |
| Change in net unrealized appreciation (depreciation) | (10,501,802) | (558,579) |
| Net increase (decrease) in net assets resulting from operations | (2,893,848) | (2,240,701) |
| Distributions to shareholders from net investment income | (3,869,339) | (5,482,469) |
| Distributions to shareholders from net realized gain | – | (1,726,810) |
| Total distributions | (3,869,339) | (7,209,279) |
| Share transactions - net increase (decrease) | (21,421,371) | (4,678,824) |
| Redemption fees | 1,162 | 1,289 |
| Total increase (decrease) in net assets | (28,183,396) | (14,127,515) |
| Net Assets | ||
| Beginning of period | 336,193,373 | 350,320,888 |
| End of period | $308,009,977 | $336,193,373 |
| Other Information | ||
| Undistributed net investment income end of period | $3,810,969 | $3,560,437 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.79 | $8.00 | $8.27 | $7.31 | $6.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .08 | .07 | .13 | .09 | .13 |
| Net realized and unrealized gain (loss) | (.14) | (.14) | (.12) | 1.24 | .59 |
| Total from investment operations | (.06) | (.07) | .01 | 1.33 | .72 |
| Distributions from net investment income | (.06) | (.10) | (.10) | (.13) | (.08) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.06) | (.14) | (.28) | (.37)B | (.08) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.67 | $7.79 | $8.00 | $8.27 | $7.31 |
| Total ReturnD,E | (.76)% | (.89)% | .19% | 19.00% | 10.88% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.52% | 1.48% | 1.44% | 1.50% | 1.57% |
| Expenses net of fee waivers, if any | 1.45% | 1.45% | 1.44% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.45% | 1.44% | 1.44% | 1.43% | 1.42% |
| Net investment income (loss) | 1.10% | .86% | 1.63% | 1.21% | 1.88% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $8,576 | $9,163 | $9,164 | $9,034 | $5,767 |
| Portfolio turnover rateH | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.37 per share is comprised of distributions from net investment income of $.126 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.81 | $8.04 | $8.32 | $7.37 | $6.73 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .06 | .05 | .11 | .07 | .11 |
| Net realized and unrealized gain (loss) | (.13) | (.15) | (.12) | 1.25 | .59 |
| Total from investment operations | (.07) | (.10) | (.01) | 1.32 | .70 |
| Distributions from net investment income | (.04) | (.09) | (.09) | (.13) | (.06) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.04) | (.13) | (.27) | (.37)B | (.06) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.70 | $7.81 | $8.04 | $8.32 | $7.37 |
| Total ReturnD,E | (.86)% | (1.26)% | (.06)% | 18.73% | 10.52% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.73% | 1.70% | 1.68% | 1.75% | 1.84% |
| Expenses net of fee waivers, if any | 1.70% | 1.70% | 1.68% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.69% | 1.69% | 1.68% | 1.67% | 1.67% |
| Net investment income (loss) | .85% | .61% | 1.38% | .96% | 1.63% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $13,893 | $13,962 | $10,282 | $7,909 | $2,348 |
| Portfolio turnover rateH | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.37 per share is comprised of distributions from net investment income of $.128 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.77 | $8.00 | $8.28 | $7.31 | $6.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .03 | .01 | .07 | .04 | .08 |
| Net realized and unrealized gain (loss) | (.14) | (.15) | (.12) | 1.25 | .58 |
| Total from investment operations | (.11) | (.14) | (.05) | 1.29 | .66 |
| Distributions from net investment income | – | (.05) | (.05) | (.08) | (.02) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | – | (.09) | (.23) | (.32)B | (.02) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.66 | $7.77 | $8.00 | $8.28 | $7.31 |
| Total ReturnD,E | (1.42)% | (1.73)% | (.57)% | 18.30% | 9.98% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 2.30% | 2.26% | 2.22% | 2.26% | 2.31% |
| Expenses net of fee waivers, if any | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
| Expenses net of all reductions | 2.20% | 2.19% | 2.20% | 2.18% | 2.17% |
| Net investment income (loss) | .35% | .11% | .87% | .46% | 1.13% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,713 | $3,311 | $4,028 | $3,584 | $2,737 |
| Portfolio turnover rateH | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.32 per share is comprised of distributions from net investment income of $.075 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.82 | $8.03 | $8.29 | $7.32 | $6.69 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .10 | .16 | .12 | .15 |
| Net realized and unrealized gain (loss) | (.13) | (.14) | (.12) | 1.24 | .58 |
| Total from investment operations | (.02) | (.04) | .04 | 1.36 | .73 |
| Distributions from net investment income | (.10) | (.13) | (.12) | (.15) | (.10) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.10) | (.17) | (.30) | (.39)B | (.10) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.70 | $7.82 | $8.03 | $8.29 | $7.32 |
| Total ReturnD | (.32)% | (.51)% | .55% | 19.48% | 11.03% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.11% | 1.07% | 1.04% | 1.09% | 1.16% |
| Expenses net of fee waivers, if any | 1.11% | 1.07% | 1.04% | 1.09% | 1.16% |
| Expenses net of all reductions | 1.10% | 1.06% | 1.04% | 1.07% | 1.13% |
| Net investment income (loss) | 1.44% | 1.24% | 2.03% | 1.57% | 2.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $280,672 | $307,035 | $324,438 | $324,395 | $281,979 |
| Portfolio turnover rateG | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Distributions of $.39 per share is comprised of distributions from net investment income of $.148 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.78 | $7.99 | $8.26 | $7.30 | $6.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .10 | .09 | .15 | .11 | .14 |
| Net realized and unrealized gain (loss) | (.13) | (.14) | (.12) | 1.24 | .59 |
| Total from investment operations | (.03) | (.05) | .03 | 1.35 | .73 |
| Distributions from net investment income | (.09) | (.12) | (.12) | (.15) | (.10) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.09) | (.16) | (.30) | (.39)B | (.10) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.66 | $7.78 | $7.99 | $8.26 | $7.30 |
| Total ReturnD | (.43)% | (.64)% | .37% | 19.40% | 11.06% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.22% | 1.17% | 1.15% | 1.21% | 1.27% |
| Expenses net of fee waivers, if any | 1.20% | 1.17% | 1.15% | 1.20% | 1.20% |
| Expenses net of all reductions | 1.20% | 1.16% | 1.15% | 1.18% | 1.17% |
| Net investment income (loss) | 1.35% | 1.14% | 1.91% | 1.46% | 2.13% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,156 | $2,602 | $2,240 | $2,372 | $1,514 |
| Portfolio turnover rateG | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.39 per share is comprised of distributions from net investment income of $.148 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Total International Equity 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 International Equity and Class I, 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.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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, partnerships, certain foreign taxes, passive foreign investment companies (PFIC), expiring capital loss carryforwards, 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 | $50,258,531 |
| Gross unrealized depreciation | (14,805,268) |
| Net unrealized appreciation (depreciation) on securities | $35,453,263 |
| Tax Cost | $272,222,387 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $3,810,198 |
| Capital loss carryforward | $(24,303,752) |
| Net unrealized appreciation (depreciation) on securities and other investments | $35,419,883 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(13,607,298) |
| 2019 | (8,855,997) |
| Total with expiration | $(22,463,295) |
| No expiration | |
| Short-term | $(1,840,457) |
| Total capital loss carryforward | $(24,303,752) |
Due to large subscriptions in a prior period, $22,463,295 of capital losses that will be available to offset future capital gains of the Fund will be limited to approximately $4,535,766 per year.
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $3,869,339 | $ 5,482,470 |
| Long-term Capital Gains | – | 1,726,809 |
| Total | $3,869,339 | $ 7,209,279 |
Short-Term Trading (Redemption) Fees. During the period, 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.
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 $159,821,752 and $182,520,476, 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 the Total International Equity as compared to its benchmark index, the MSCI All Country World ex USA Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .81% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $21,917 | $1,496 |
| Class T | .25% | .25% | 67,714 | – |
| Class B | .75% | .25% | 651 | 488 |
| Class C | .75% | .25% | 29,584 | 5,455 |
| $119,866 | $7,439 |
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 are 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 by FDC |
|
| Class A | $2,410 |
| Class T | 1,002 |
| Class C(a) | 592 |
| $4,004 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $24,190 | .28 |
| Class T | 32,787 | .24 |
| Class B | 175 | .27 |
| Class C | 9,259 | .31 |
| Total International Equity | 336,543 | .12 |
| Class I | 6,019 | .23 |
| $408,973 |
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 advisor. 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 affiliates were $710 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $799 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in cash 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 $69,511. 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, 2018. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.45% | $5,835 |
| Class T | 1.70% | 4,404 |
| Class B | 2.20% | 35 |
| Class C | 2.20% | 3,093 |
| Total International Equity | 1.20% | 2,140 |
| Class I | 1.20% | 435 |
| $15,942 |
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 $11,300 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2,350.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 |
|
| From net investment income | ||
| Class A | $72,361 | $113,499 |
| Class T | 77,358 | 118,041 |
| Class B | – | 852 |
| Class C | – | 26,493 |
| Total International Equity | 3,691,251 | 5,189,901 |
| Class I | 28,369 | 33,683 |
| Total | $3,869,339 | $5,482,469 |
| From net realized gain | ||
| Class A | $– | $45,400 |
| Class T | – | 52,463 |
| Class B | – | 832 |
| Class C | – | 19,994 |
| Total International Equity | – | 1,596,893 |
| Class I | – | 11,228 |
| Total | $– | $1,726,810 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 |
|
| Class A | ||||
| Shares sold | 221,277 | 302,437 | $1,661,593 | $2,413,258 |
| Reinvestment of distributions | 9,322 | 20,115 | 71,782 | 158,306 |
| Shares redeemed | (289,523) | (290,995) | (2,176,317) | (2,277,557) |
| Net increase (decrease) | (58,924) | 31,557 | $(442,942) | $294,007 |
| Class T | ||||
| Shares sold | 459,219 | 824,018 | $3,481,274 | $6,637,966 |
| Reinvestment of distributions | 9,988 | 21,537 | 77,308 | 170,355 |
| Shares redeemed | (451,150) | (337,655) | (3,381,486) | (2,691,540) |
| Net increase (decrease) | 18,057 | 507,900 | $177,096 | $4,116,781 |
| Class B | ||||
| Shares sold | 1,078 | 2,293 | $7,665 | $19,363 |
| Reinvestment of distributions | – | 210 | – | 1,675 |
| Shares redeemed | (16,441) | (7,999) | (122,211) | (62,934) |
| Net increase (decrease) | (15,363) | (5,496) | $(114,546) | $(41,896) |
| Class C | ||||
| Shares sold | 91,061 | 142,460 | $684,626 | $1,136,553 |
| Reinvestment of distributions | – | 4,767 | – | 37,661 |
| Shares redeemed | (162,991) | (224,769) | (1,228,823) | (1,823,746) |
| Net increase (decrease) | (71,930) | (77,542) | $(544,197) | $(649,532) |
| Total International Equity | ||||
| Shares sold | 4,801,342 | 6,834,390 | $36,478,674 | $54,586,662 |
| Reinvestment of distributions | 471,692 | 851,193 | 3,632,026 | 6,698,889 |
| Shares redeemed | (8,073,720) | (8,793,992) | (60,183,392) | (70,164,751) |
| Net increase (decrease) | (2,800,686) | (1,108,409) | $(20,072,692) | $(8,879,200) |
| Class I | ||||
| Shares sold | 155,879 | 149,022 | $1,165,295 | $1,222,878 |
| Reinvestment of distributions | 3,671 | 5,728 | 28,160 | 44,910 |
| Shares redeemed | (212,465) | (100,501) | (1,617,545) | (786,772) |
| Net increase (decrease) | (52,915) | 54,249 | $(424,090) | $481,016 |
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, a shareholder of record owned approximately 70% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Total International Equity Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Total International Equity Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Total International Equity Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 14, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.45% | |||
| Actual | $1,000.00 | $1,014.60 | $7.34 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.35 | |
| Class T | 1.70% | |||
| Actual | $1,000.00 | $1,013.20 | $8.60 | |
| Hypothetical-C | $1,000.00 | $1,016.59 | $8.62 | |
| Class C | 2.20% | |||
| Actual | $1,000.00 | $1,010.60 | $11.12 | |
| Hypothetical-C | $1,000.00 | $1,014.08 | $11.14 | |
| Total International Equity | 1.10% | |||
| Actual | $1,000.00 | $1,017.20 | $5.58 | |
| Hypothetical-C | $1,000.00 | $1,019.61 | $5.58 | |
| Class I | 1.20% | |||
| Actual | $1,000.00 | $1,015.90 | $6.08 | |
| Hypothetical-C | $1,000.00 | $1,019.10 | $6.09 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Class A designates 11%; Class T designates 15%; Total International Equity designates 8%; and Class I designates 8% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Total International Equity and Class I designate 100% of dividends distributed 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 | |
| Fidelity Total International Equity Fund | |||
| Class A | 12/07/2015 | $0.0749 | $0.0139 |
| Class T | 12/07/2015 | $0.0569 | $0.0139 |
| Total International Equity | 12/07/2015 | $0.1089 | $0.0139 |
| Class I | 12/07/2015 | $0.1009 | $0.0139 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Total International Equity Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for the fund in June 2014.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity Total International Equity Fund
Fidelity Total International Equity Fund
ATIE-ANN-1216
1.853364.108
|
Fidelity® Total International Equity Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Total International Equity Fund | (0.32)% | 5.75% | (0.71)% |
A From November 1, 2007
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Total International Equity Fund, a class of the fund, on November 1, 2007, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) ex USA Index performed over the same period.
| Period Ending Values | ||
|
| $9,376 | Fidelity® Total International Equity Fund |
|
| $9,058 | MSCI ACWI (All Country World Index) ex USA Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: The fund's share classes (excluding sales charges, if applicable) generated returns ranging from flat to about -1% for the fiscal year, modestly trailing the benchmark MSCI ACWI index. Among sectors, stock selection and underweightings in materials and energy hampered the fund's relative returns given outperformance in those categories. The fund also was hurt by overweighting the lagging health care sector, although good security selection in the group mostly counterbalanced results. Overweighting technology and stock picks in consumer discretionary also added value. Among individual stocks, the fund was hampered by not owning Korea's Samsung Electronics for much of the period; missing gains in this major index name detracted from results. We also were hurt by overweighting Novartis, a Swiss pharmaceutical manufacturer that came under pressure due to mounting concerns about drug pricing. At period end, Novartis was one of the fund's largest holdings. Other detractors included bank stocks Seven Bank (Japan) and Lloyds Banking Group (U.K.), the latter of which fell sharply after Brexit. The fund's top relative contributor was Taiwan Semiconductor Manufacturing, a contract semiconductor manufacturer and one of our largest positions. Also adding value were out-of-benchmark stakes in Fagerhult, a Swedish maker of high-end lighting fixtures, and S&P Global, a U.S.-based provider of financial information.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 13.7% | |
| United States of America* | 11.7% | |
| United Kingdom | 11.5% | |
| Switzerland | 6.9% | |
| France | 5.4% | |
| Canada | 5.1% | |
| Germany | 3.9% | |
| Cayman Islands | 3.5% | |
| Australia | 3.2% | |
| Other | 35.1% | |
* 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 April 30, 2016 | ||
| Japan | 13.7% | |
| United Kingdom | 13.5% | |
| United States of America* | 12.7% | |
| Switzerland | 7.7% | |
| France | 7.0% | |
| Germany | 3.8% | |
| India | 3.3% | |
| Australia | 3.2% | |
| Spain | 2.8% | |
| Other | 32.3% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 98.3 | 98.5 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.7 | 1.5 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 2.2 | 2.6 |
| Novartis AG (Switzerland, Pharmaceuticals) | 1.3 | 1.8 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 1.3 | 1.5 |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 1.3 | 1.2 |
| AIA Group Ltd. (Hong Kong, Insurance) | 1.1 | 0.8 |
| Toyota Motor Corp. (Japan, Automobiles) | 1.1 | 0.8 |
| Total SA (France, Oil, Gas & Consumable Fuels) | 1.0 | 1.2 |
| Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 1.0 | 1.3 |
| SAP AG (Germany, Software) | 1.0 | 0.9 |
| Naspers Ltd. Class N (South Africa, Media) | 1.0 | 0.8 |
| 12.3 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 17.1 | 19.3 |
| Information Technology | 14.4 | 12.4 |
| Consumer Staples | 14.1 | 13.7 |
| Consumer Discretionary | 12.1 | 13.8 |
| Health Care | 11.8 | 14.1 |
| Industrials | 11.5 | 11.3 |
| Materials | 7.7 | 5.2 |
| Energy | 4.0 | 3.6 |
| Real Estate | 2.1 | 0.0 |
| Utilities | 1.7 | 2.2 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.2% | |||
| Shares | Value | ||
| Argentina - 0.3% | |||
| Banco Macro SA sponsored ADR | 5,500 | $419,265 | |
| Grupo Financiero Galicia SA sponsored ADR | 12,300 | 383,022 | |
| TOTAL ARGENTINA | 802,287 | ||
| Australia - 3.2% | |||
| Amcor Ltd. | 28,434 | 317,957 | |
| Ansell Ltd. (a) | 22,997 | 379,441 | |
| Beacon Lighting Group Ltd. | 40,231 | 51,873 | |
| CSL Ltd. | 39,774 | 3,041,039 | |
| DuluxGroup Ltd. | 26,523 | 129,934 | |
| Imdex Ltd. (a) | 134,227 | 61,264 | |
| Insurance Australia Group Ltd. | 174,629 | 731,950 | |
| Macquarie Group Ltd. | 14,748 | 895,261 | |
| Magellan Financial Group Ltd. | 22,171 | 359,066 | |
| RCG Corp. Ltd. | 104,518 | 115,682 | |
| Sydney Airport unit | 145,199 | 691,435 | |
| TFS Corp. Ltd. | 72,586 | 77,303 | |
| Transurban Group unit | 90,378 | 714,318 | |
| Westpac Banking Corp. | 100,266 | 2,318,646 | |
| TOTAL AUSTRALIA | 9,885,169 | ||
| Austria - 0.6% | |||
| Andritz AG | 25,772 | 1,348,076 | |
| Buwog-Gemeinnuetzige Wohnung | 23,117 | 558,668 | |
| Zumtobel AG | 2,800 | 49,164 | |
| TOTAL AUSTRIA | 1,955,908 | ||
| Bailiwick of Jersey - 0.2% | |||
| Integrated Diagnostics Holdings PLC | 22,500 | 61,875 | |
| Wolseley PLC | 9,709 | 505,181 | |
| TOTAL BAILIWICK OF JERSEY | 567,056 | ||
| Belgium - 1.9% | |||
| Anheuser-Busch InBev SA NV | 34,071 | 3,910,321 | |
| Gimv NV | 819 | 44,054 | |
| KBC Ancora (a) | 4,281 | 162,414 | |
| KBC Groep NV | 27,961 | 1,703,834 | |
| TOTAL BELGIUM | 5,820,623 | ||
| Bermuda - 0.7% | |||
| Axalta Coating Systems (a) | 12,700 | 319,024 | |
| Cheung Kong Infrastructure Holdings Ltd. | 41,000 | 335,959 | |
| China Gas Holdings Ltd. | 240,000 | 365,777 | |
| China Resource Gas Group Ltd. | 125,000 | 392,461 | |
| Credicorp Ltd. (United States) | 3,800 | 564,984 | |
| Vostok New Ventures Ltd. SDR (a) | 13,260 | 99,463 | |
| TOTAL BERMUDA | 2,077,668 | ||
| Brazil - 1.3% | |||
| BB Seguridade Participacoes SA | 47,500 | 478,274 | |
| CCR SA | 73,200 | 397,876 | |
| Cielo SA | 53,036 | 538,335 | |
| Kroton Educacional SA | 96,900 | 482,679 | |
| Odontoprev SA | 79,300 | 298,120 | |
| Qualicorp SA | 59,200 | 380,942 | |
| Smiles SA | 20,100 | 366,863 | |
| Ultrapar Participacoes SA | 23,100 | 523,441 | |
| Weg SA | 77,900 | 429,524 | |
| TOTAL BRAZIL | 3,896,054 | ||
| Canada - 5.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 59,103 | 2,969,030 | |
| Canadian National Railway Co. | 31,059 | 1,952,505 | |
| Cara Operations Ltd. | 53,859 | 1,067,302 | |
| CCL Industries, Inc. Class B | 8,166 | 1,452,261 | |
| Constellation Software, Inc. | 3,762 | 1,762,359 | |
| Franco-Nevada Corp. | 18,500 | 1,210,851 | |
| Imperial Oil Ltd. | 70,726 | 2,293,731 | |
| McCoy Global, Inc. (a) | 15,800 | 20,614 | |
| New Look Vision Group, Inc. | 3,100 | 65,129 | |
| Pason Systems, Inc. | 75,878 | 862,700 | |
| Potash Corp. of Saskatchewan, Inc. | 113,126 | 1,839,468 | |
| ShawCor Ltd. Class A | 1,500 | 37,520 | |
| Tesco Corp. | 5,100 | 34,935 | |
| TOTAL CANADA | 15,568,405 | ||
| Cayman Islands - 3.5% | |||
| 58.com, Inc. ADR (a) | 10,300 | 431,055 | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | 28,700 | 2,918,503 | |
| Baidu.com, Inc. sponsored ADR (a) | 7,100 | 1,255,706 | |
| Ctrip.com International Ltd. ADR (a) | 14,200 | 626,930 | |
| International Housewares Retail Co. Ltd. | 250,000 | 49,964 | |
| NetEase, Inc. ADR | 2,700 | 693,873 | |
| New Oriental Education & Technology Group, Inc. sponsored ADR | 9,500 | 476,235 | |
| Shenzhou International Group Holdings Ltd. | 67,000 | 444,475 | |
| Sino Biopharmaceutical Ltd. | 630,000 | 441,091 | |
| TAL Education Group ADR (a) | 4,900 | 399,056 | |
| Tencent Holdings Ltd. | 114,400 | 3,031,867 | |
| Value Partners Group Ltd. | 49,000 | 46,880 | |
| TOTAL CAYMAN ISLANDS | 10,815,635 | ||
| China - 0.4% | |||
| Inner Mongoli Yili Industries Co. Ltd. (A Shares) | 126,100 | 334,800 | |
| Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 55,516 | 378,038 | |
| Kweichow Moutai Co. Ltd. (A Shares) | 7,240 | 339,732 | |
| Shanghai International Airport Co. Ltd. (A Shares) | 83,200 | 332,884 | |
| TOTAL CHINA | 1,385,454 | ||
| Denmark - 0.8% | |||
| Jyske Bank A/S (Reg.) | 14,354 | 651,415 | |
| Novo Nordisk A/S Series B sponsored ADR | 49,500 | 1,759,230 | |
| Scandinavian Tobacco Group A/S | 4,110 | 71,151 | |
| Spar Nord Bank A/S | 11,631 | 116,725 | |
| TOTAL DENMARK | 2,598,521 | ||
| Finland - 0.6% | |||
| Sampo Oyj (A Shares) | 27,053 | 1,239,407 | |
| Tikkurila Oyj | 26,280 | 506,298 | |
| TOTAL FINLAND | 1,745,705 | ||
| France - 5.4% | |||
| Atos Origin SA | 13,929 | 1,446,793 | |
| AXA SA | 77,606 | 1,750,971 | |
| Capgemini SA | 13,102 | 1,085,608 | |
| Dassault Systemes SA | 4,100 | 324,686 | |
| Elis SA | 6,500 | 108,030 | |
| Essilor International SA | 9,785 | 1,099,928 | |
| Havas SA | 73,304 | 596,359 | |
| Laurent-Perrier Group SA | 759 | 58,323 | |
| Sanofi SA | 23,403 | 1,821,194 | |
| Societe Generale Series A | 40,900 | 1,595,407 | |
| SR Teleperformance SA | 6,900 | 729,195 | |
| Total SA | 66,278 | 3,175,041 | |
| Vetoquinol SA | 1,700 | 85,489 | |
| VINCI SA | 24,900 | 1,803,496 | |
| Virbac SA (a) | 730 | 116,197 | |
| Vivendi SA | 48,952 | 990,815 | |
| TOTAL FRANCE | 16,787,532 | ||
| Germany - 3.8% | |||
| Axel Springer Verlag AG | 9,700 | 485,717 | |
| BASF AG | 24,289 | 2,141,059 | |
| Bayer AG | 17,300 | 1,717,712 | |
| CompuGroup Medical AG | 7,646 | 338,506 | |
| CTS Eventim AG | 8,180 | 293,902 | |
| Fielmann AG | 1,858 | 128,863 | |
| Fresenius SE & Co. KGaA | 13,500 | 996,472 | |
| GEA Group AG | 13,775 | 532,655 | |
| HeidelbergCement Finance AG | 8,400 | 794,490 | |
| Linde AG | 5,100 | 841,458 | |
| Nexus AG | 4,000 | 82,243 | |
| SAP AG | 35,457 | 3,123,741 | |
| Wirecard AG | 7,300 | 346,307 | |
| TOTAL GERMANY | 11,823,125 | ||
| Hong Kong - 1.7% | |||
| AIA Group Ltd. | 535,200 | 3,377,973 | |
| CSPC Pharmaceutical Group Ltd. | 442,000 | 458,211 | |
| Guangdong Investment Ltd. | 286,000 | 432,196 | |
| Power Assets Holdings Ltd. | 81,500 | 766,603 | |
| Techtronic Industries Co. Ltd. | 96,500 | 363,327 | |
| TOTAL HONG KONG | 5,398,310 | ||
| India - 2.8% | |||
| Amara Raja Batteries Ltd. | 24,169 | 366,799 | |
| Asian Paints Ltd. | 24,503 | 393,008 | |
| Colgate-Palmolive Ltd. | 23,160 | 337,876 | |
| Divi's Laboratories Ltd. | 19,223 | 368,838 | |
| Eicher Motors Ltd. | 1,079 | 388,538 | |
| GlaxoSmithKline Consumer Healthcare Ltd. | 3,715 | 338,555 | |
| Godrej Consumer Products Ltd. | 17,171 | 414,207 | |
| HDFC Bank Ltd. | 16,436 | 367,279 | |
| Hindustan Unilever Ltd. | 33,095 | 415,018 | |
| Housing Development Finance Corp. Ltd. | 81,505 | 1,700,468 | |
| IndusInd Bank Ltd. | 19,406 | 349,047 | |
| ITC Ltd. | 152,350 | 555,221 | |
| Jyothy Laboratories Ltd. (a) | 16,417 | 88,231 | |
| LIC Housing Finance Ltd. | 46,068 | 402,458 | |
| Power Grid Corp. of India Ltd. | 133,824 | 352,889 | |
| Sun Pharmaceutical Industries Ltd. | 43,682 | 486,815 | |
| Tata Consultancy Services Ltd. | 16,393 | 589,485 | |
| Titan Co. Ltd. | 38,517 | 215,695 | |
| Zee Entertainment Enterprises Ltd. | 48,431 | 377,796 | |
| TOTAL INDIA | 8,508,223 | ||
| Indonesia - 1.1% | |||
| PT ACE Hardware Indonesia Tbk | 4,363,600 | 285,935 | |
| PT Bank Central Asia Tbk | 515,600 | 613,480 | |
| PT Bank Rakyat Indonesia Tbk | 1,292,600 | 1,208,593 | |
| PT Kalbe Farma Tbk | 2,908,100 | 387,806 | |
| PT Matahari Department Store Tbk | 290,100 | 400,755 | |
| PT Surya Citra Media Tbk | 1,739,300 | 353,245 | |
| TOTAL INDONESIA | 3,249,814 | ||
| Ireland - 1.9% | |||
| Allergan PLC (a) | 2,300 | 480,562 | |
| CRH PLC | 23,300 | 756,413 | |
| CRH PLC sponsored ADR | 54,729 | 1,767,747 | |
| FBD Holdings PLC (a) | 5,372 | 35,972 | |
| James Hardie Industries PLC CDI | 119,570 | 1,785,484 | |
| Medtronic PLC | 11,000 | 902,220 | |
| TOTAL IRELAND | 5,728,398 | ||
| Isle of Man - 0.2% | |||
| Playtech Ltd. | 49,458 | 561,780 | |
| Israel - 0.6% | |||
| Azrieli Group | 9,396 | 400,205 | |
| Frutarom Industries Ltd. | 7,300 | 386,284 | |
| Ituran Location & Control Ltd. | 5,061 | 134,623 | |
| Strauss Group Ltd. | 6,859 | 107,990 | |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 19,209 | 820,993 | |
| TOTAL ISRAEL | 1,850,095 | ||
| Italy - 0.6% | |||
| Azimut Holding SpA | 23,314 | 374,169 | |
| Beni Stabili SpA SIIQ | 141,826 | 82,749 | |
| Interpump Group SpA | 46,991 | 754,164 | |
| Telecom Italia SpA (a) | 609,100 | 529,487 | |
| TOTAL ITALY | 1,740,569 | ||
| Japan - 13.7% | |||
| Aoki Super Co. Ltd. | 6,000 | 74,950 | |
| Artnature, Inc. | 11,900 | 72,850 | |
| Asahi Co. Ltd. | 6,300 | 76,174 | |
| Astellas Pharma, Inc. | 160,800 | 2,386,572 | |
| Autobacs Seven Co. Ltd. | 5,800 | 82,628 | |
| Azbil Corp. | 9,000 | 267,760 | |
| Broadleaf Co. Ltd. | 2,700 | 30,406 | |
| Central Automotive Products Ltd. | 8,000 | 69,267 | |
| Century21 Real Estate Japan Ltd. | 4,000 | 50,234 | |
| Coca-Cola Central Japan Co. Ltd. | 1,400 | 30,918 | |
| Daiichikosho Co. Ltd. | 3,500 | 152,355 | |
| Daikokutenbussan Co. Ltd. | 4,000 | 188,233 | |
| Daito Trust Construction Co. Ltd. | 4,900 | 821,183 | |
| DENSO Corp. | 26,800 | 1,166,606 | |
| Dentsu, Inc. | 10,600 | 529,646 | |
| East Japan Railway Co. | 16,800 | 1,482,956 | |
| Fuji Heavy Industries Ltd. | 24,300 | 948,643 | |
| Funai Soken Holdings, Inc. | 3,300 | 51,103 | |
| GCA Savvian Group Corp. | 8,800 | 65,872 | |
| Goldcrest Co. Ltd. | 8,560 | 155,985 | |
| Hokuriku Electrical Construction Co. Ltd. | 6,000 | 49,147 | |
| Hoya Corp. | 44,200 | 1,848,164 | |
| Hub Co. Ltd. | 2,500 | 41,218 | |
| Itochu Corp. | 68,900 | 872,830 | |
| Iwatsuka Confectionary Co. Ltd. | 800 | 26,585 | |
| Japan Digital Laboratory Co. | 6,600 | 102,836 | |
| Japan Tobacco, Inc. | 65,320 | 2,487,728 | |
| Kao Corp. | 9,700 | 499,938 | |
| KDDI Corp. | 30,200 | 917,874 | |
| Keyence Corp. | 2,621 | 1,925,949 | |
| Kobayashi Pharmaceutical Co. Ltd. | 4,000 | 209,402 | |
| Komatsu Ltd. | 35,400 | 787,972 | |
| Koshidaka Holdings Co. Ltd. | 4,000 | 65,147 | |
| Kusuri No Aoki Co. Ltd. | 1,000 | 51,111 | |
| Lasertec Corp. | 6,300 | 122,432 | |
| Makita Corp. | 10,900 | 755,631 | |
| Medikit Co. Ltd. | 1,800 | 78,183 | |
| Misumi Group, Inc. | 37,400 | 683,664 | |
| Mitsubishi UFJ Financial Group, Inc. | 482,600 | 2,490,125 | |
| Mitsui Fudosan Co. Ltd. | 46,000 | 1,048,565 | |
| Nagaileben Co. Ltd. | 9,200 | 202,475 | |
| Nakano Refrigerators Co. Ltd. | 2,000 | 53,972 | |
| ND Software Co. Ltd. | 6,000 | 48,517 | |
| Nihon Parkerizing Co. Ltd. | 19,600 | 271,002 | |
| Nintendo Co. Ltd. | 3,500 | 843,711 | |
| Nippon Prologis REIT, Inc. | 53 | 119,928 | |
| Nippon Telegraph & Telephone Corp. | 33,900 | 1,503,019 | |
| NS Tool Co. Ltd. | 3,800 | 92,762 | |
| OBIC Co. Ltd. | 17,700 | 921,541 | |
| Olympus Corp. | 52,900 | 1,891,628 | |
| ORIX Corp. | 76,200 | 1,210,175 | |
| OSG Corp. | 37,000 | 789,959 | |
| Paramount Bed Holdings Co. Ltd. | 3,400 | 129,684 | |
| ProNexus, Inc. | 8,400 | 88,830 | |
| San-Ai Oil Co. Ltd. | 11,000 | 77,725 | |
| Seven & i Holdings Co. Ltd. | 21,800 | 911,122 | |
| Seven Bank Ltd. | 103,300 | 318,164 | |
| Shin-Etsu Chemical Co. Ltd. | 6,600 | 501,655 | |
| SHO-BOND Holdings Co. Ltd. | 22,100 | 1,068,437 | |
| Shoei Co. Ltd. | 5,800 | 105,857 | |
| SK Kaken Co. Ltd. | 1,100 | 114,647 | |
| Software Service, Inc. | 1,600 | 64,842 | |
| Sony Corp. | 30,600 | 964,458 | |
| Sony Financial Holdings, Inc. | 36,800 | 517,944 | |
| Techno Medica Co. Ltd. | 1,800 | 30,775 | |
| The Monogatari Corp. | 1,500 | 69,014 | |
| TKC Corp. | 3,300 | 97,707 | |
| Tocalo Co. Ltd. | 2,800 | 62,958 | |
| Toyota Motor Corp. | 55,800 | 3,236,777 | |
| Tsutsumi Jewelry Co. Ltd. | 2,400 | 38,081 | |
| USS Co. Ltd. | 105,600 | 1,790,377 | |
| Welcia Holdings Co. Ltd. | 900 | 61,533 | |
| Workman Co. Ltd. | 3,800 | 120,664 | |
| Yamada Consulting Group Co. Ltd. | 2,000 | 84,486 | |
| Yamato Kogyo Co. Ltd. | 1,700 | 47,935 | |
| TOTAL JAPAN | 42,221,203 | ||
| Kenya - 0.3% | |||
| Safaricom Ltd. | 4,026,600 | 786,306 | |
| Korea (South) - 2.1% | |||
| AMOREPACIFIC Corp. | 1,788 | 561,215 | |
| AMOREPACIFIC Group, Inc. | 3,370 | 436,072 | |
| BGFretail Co. Ltd. | 5,676 | 863,493 | |
| Coway Co. Ltd. | 5,672 | 444,336 | |
| KT&G Corp. | 5,138 | 507,621 | |
| Leeno Industrial, Inc. | 1,292 | 48,573 | |
| LG Household & Health Care Ltd. | 644 | 461,707 | |
| NAVER Corp. | 1,015 | 760,526 | |
| Samsung Biologics Co. Ltd. (a) | 493 | 58,621 | |
| Samsung Electronics Co. Ltd. | 1,708 | 2,447,563 | |
| TOTAL KOREA (SOUTH) | 6,589,727 | ||
| Luxembourg - 0.2% | |||
| Eurofins Scientific SA | 800 | 363,487 | |
| RTL Group SA | 3,469 | 270,565 | |
| TOTAL LUXEMBOURG | 634,052 | ||
| Mexico - 1.9% | |||
| Banregio Grupo Financiero S.A.B. de CV | 56,000 | 366,914 | |
| Consorcio ARA S.A.B. de CV | 254,355 | 95,815 | |
| Embotelladoras Arca S.A.B. de CV | 56,700 | 352,841 | |
| Fomento Economico Mexicano S.A.B. de CV: | |||
| unit | 70,800 | 679,120 | |
| sponsored ADR | 6,733 | 644,146 | |
| Gruma S.A.B. de CV Series B | 30,770 | 426,932 | |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 42,600 | 411,756 | |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | 26,675 | 424,279 | |
| Grupo Aeroportuario Norte S.A.B. de CV | 56,800 | 330,474 | |
| Grupo Financiero Banorte S.A.B. de CV Series O | 99,200 | 584,199 | |
| Kimberly-Clark de Mexico SA de CV Series A | 180,400 | 389,033 | |
| Megacable Holdings S.A.B. de CV unit | 92,900 | 337,765 | |
| Promotora y Operadora de Infraestructura S.A.B. de CV | 33,525 | 374,786 | |
| Wal-Mart de Mexico SA de CV Series V | 258,200 | 546,290 | |
| TOTAL MEXICO | 5,964,350 | ||
| Netherlands - 1.9% | |||
| Aalberts Industries NV | 6,100 | 192,685 | |
| ASML Holding NV (Netherlands) | 10,900 | 1,153,154 | |
| Heijmans NV (Certificaten Van Aandelen) (a) | 4,481 | 42,977 | |
| ING Groep NV (Certificaten Van Aandelen) | 141,276 | 1,854,533 | |
| PostNL NV (a) | 55,000 | 259,135 | |
| RELX NV | 70,060 | 1,181,389 | |
| Takeaway.com Holding BV (b) | 1,800 | 42,335 | |
| VastNed Retail NV | 4,191 | 161,069 | |
| Wolters Kluwer NV | 17,474 | 676,264 | |
| Yandex NV Series A (a) | 16,800 | 330,792 | |
| TOTAL NETHERLANDS | 5,894,333 | ||
| Norway - 0.3% | |||
| Kongsberg Gruppen ASA | 4,700 | 67,124 | |
| Statoil ASA | 53,200 | 868,544 | |
| TOTAL NORWAY | 935,668 | ||
| Philippines - 0.6% | |||
| Ayala Corp. | 22,190 | 382,590 | |
| Ayala Land, Inc. | 551,100 | 412,504 | |
| D&L Industries, Inc. | 1,493,800 | 338,676 | |
| Jollibee Food Corp. | 18,980 | 93,275 | |
| SM Investments Corp. | 27,670 | 383,945 | |
| SM Prime Holdings, Inc. | 700,800 | 389,257 | |
| TOTAL PHILIPPINES | 2,000,247 | ||
| Russia - 0.6% | |||
| Magnit OJSC | 3,208 | 537,861 | |
| NOVATEK OAO GDR (Reg. S) | 4,500 | 481,050 | |
| Sberbank of Russia (a) | 318,370 | 741,054 | |
| TOTAL RUSSIA | 1,759,965 | ||
| South Africa - 2.4% | |||
| Aspen Pharmacare Holdings Ltd. | 21,500 | 468,356 | |
| Bidcorp Ltd. | 24,832 | 437,846 | |
| Capitec Bank Holdings Ltd. | 8,500 | 431,816 | |
| Clicks Group Ltd. | 60,693 | 564,900 | |
| Discovery Ltd. | 49,967 | 427,010 | |
| FirstRand Ltd. | 162,500 | 582,331 | |
| Mondi Ltd. | 18,400 | 359,574 | |
| Naspers Ltd. Class N | 18,400 | 3,083,872 | |
| Sanlam Ltd. | 100,400 | 486,671 | |
| Shoprite Holdings Ltd. | 31,100 | 458,990 | |
| TOTAL SOUTH AFRICA | 7,301,366 | ||
| Spain - 3.2% | |||
| Amadeus IT Holding SA Class A | 39,400 | 1,859,808 | |
| Banco Bilbao Vizcaya Argentaria SA | 41,500 | 298,746 | |
| Banco Santander SA (Spain) | 134,400 | 658,564 | |
| CaixaBank SA | 225,800 | 681,326 | |
| Hispania Activos Inmobiliarios SA | 50,395 | 620,703 | |
| Iberdrola SA | 230,220 | 1,569,163 | |
| Inditex SA | 78,736 | 2,752,441 | |
| Mediaset Espana Comunicacion SA | 26,700 | 298,228 | |
| Merlin Properties Socimi SA | 33,300 | 374,324 | |
| Prosegur Compania de Seguridad SA (Reg.) | 94,276 | 685,114 | |
| TOTAL SPAIN | 9,798,417 | ||
| Sweden - 2.6% | |||
| Addlife AB (a) | 3,000 | 46,334 | |
| AddTech AB (B Shares) | 5,000 | 71,135 | |
| ASSA ABLOY AB (B Shares) | 143,500 | 2,607,891 | |
| Fagerhult AB | 31,155 | 793,349 | |
| Intrum Justitia AB | 2,763 | 85,195 | |
| Loomis AB (B Shares) | 3,300 | 93,898 | |
| Nordea Bank AB | 143,867 | 1,512,394 | |
| Saab AB (B Shares) | 4,100 | 145,259 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 27,300 | 773,467 | |
| Svenska Handelsbanken AB (A Shares) | 55,245 | 753,162 | |
| Swedbank AB (A Shares) | 42,000 | 983,952 | |
| TOTAL SWEDEN | 7,866,036 | ||
| Switzerland - 6.9% | |||
| ABB Ltd. (Reg.) | 54,740 | 1,129,310 | |
| Credit Suisse Group AG | 50,421 | 703,513 | |
| Lafargeholcim Ltd. (Reg.) | 17,980 | 960,278 | |
| Nestle SA (Reg. S) | 92,498 | 6,707,391 | |
| Novartis AG | 57,856 | 4,105,900 | |
| Roche Holding AG (participation certificate) | 13,644 | 3,133,777 | |
| Schindler Holding AG: | |||
| (participation certificate) | 5,761 | 1,070,636 | |
| (Reg.) | 1,121 | 207,309 | |
| Sika AG | 90 | 432,560 | |
| Syngenta AG (Switzerland) | 539 | 215,689 | |
| Tecan Group AG | 600 | 98,833 | |
| UBS Group AG | 88,289 | 1,242,226 | |
| Zurich Insurance Group AG | 5,276 | 1,380,381 | |
| TOTAL SWITZERLAND | 21,387,803 | ||
| Taiwan - 1.7% | |||
| Addcn Technology Co. Ltd. | 8,772 | 55,923 | |
| Advantech Co. Ltd. | 44,000 | 358,660 | |
| ECLAT Textile Co. Ltd. | 33,643 | 383,077 | |
| Largan Precision Co. Ltd. | 4,870 | 576,921 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 646,035 | 3,880,653 | |
| TOTAL TAIWAN | 5,255,234 | ||
| Thailand - 0.5% | |||
| Airports of Thailand PCL (For. Reg.) | 38,600 | 419,739 | |
| Bangkok Dusit Medical Services PCL (For. Reg.) | 516,200 | 335,908 | |
| Minor International PCL (For. Reg.) | 341,900 | 375,687 | |
| Thai Beverage PCL | 437,700 | 303,598 | |
| TOTAL THAILAND | 1,434,932 | ||
| United Arab Emirates - 0.1% | |||
| DP World Ltd. | 17,663 | 317,051 | |
| United Kingdom - 11.5% | |||
| AA PLC | 16,973 | 53,205 | |
| Alliance Pharma PLC | 68,814 | 38,113 | |
| Associated British Foods PLC | 6,700 | 201,904 | |
| AstraZeneca PLC (United Kingdom) | 34,128 | 1,911,000 | |
| Aviva PLC | 208,879 | 1,131,869 | |
| Avon Rubber PLC | 4,000 | 48,568 | |
| BAE Systems PLC | 289,721 | 1,919,620 | |
| Bellway PLC | 5,528 | 160,090 | |
| Berendsen PLC | 64,955 | 768,018 | |
| BHP Billiton PLC | 78,575 | 1,181,538 | |
| BP PLC | 343,200 | 2,028,898 | |
| British American Tobacco PLC (United Kingdom) | 12,300 | 704,949 | |
| Britvic PLC | 7,617 | 51,744 | |
| Bunzl PLC | 38,895 | 1,046,888 | |
| Compass Group PLC | 62,107 | 1,123,782 | |
| Dechra Pharmaceuticals PLC | 9,600 | 158,043 | |
| Domino's Pizza UK & IRL PLC | 9,218 | 38,373 | |
| DP Poland PLC (a) | 200,000 | 132,804 | |
| Elementis PLC | 56,008 | 163,295 | |
| Great Portland Estates PLC | 15,372 | 111,763 | |
| Hilton Food Group PLC | 5,400 | 40,021 | |
| Howden Joinery Group PLC | 73,700 | 338,193 | |
| HSBC Holdings PLC sponsored ADR | 48,669 | 1,831,414 | |
| Imperial Tobacco Group PLC | 39,418 | 1,908,435 | |
| Informa PLC | 257,941 | 2,123,216 | |
| InterContinental Hotel Group PLC ADR | 57,812 | 2,280,683 | |
| ITE Group PLC | 44,000 | 77,418 | |
| ITV PLC | 176,219 | 367,755 | |
| JUST EAT Ltd. (a) | 9,740 | 67,000 | |
| Lloyds Banking Group PLC | 1,641,100 | 1,146,018 | |
| Micro Focus International PLC | 36,100 | 946,031 | |
| National Grid PLC | 90,068 | 1,171,584 | |
| NMC Health PLC | 20,800 | 371,959 | |
| Prudential PLC | 76,137 | 1,242,469 | |
| Reckitt Benckiser Group PLC | 27,351 | 2,446,834 | |
| Rightmove PLC | 8,000 | 365,731 | |
| Rio Tinto PLC | 47,002 | 1,634,509 | |
| Royal Dutch Shell PLC Class B (United Kingdom) | 39,540 | 1,019,836 | |
| Shaftesbury PLC | 39,537 | 443,766 | |
| Spectris PLC | 9,670 | 242,521 | |
| Spirax-Sarco Engineering PLC | 5,799 | 313,163 | |
| Ted Baker PLC | 2,375 | 71,948 | |
| Topps Tiles PLC | 45,500 | 50,958 | |
| Ultra Electronics Holdings PLC | 5,901 | 134,200 | |
| Unite Group PLC | 20,151 | 136,520 | |
| Vodafone Group PLC sponsored ADR | 59,126 | 1,646,068 | |
| TOTAL UNITED KINGDOM | 35,392,714 | ||
| United States of America - 10.0% | |||
| A.O. Smith Corp. | 7,400 | 334,258 | |
| Alphabet, Inc.: | |||
| Class A | 1,930 | 1,563,107 | |
| Class C (a) | 431 | 338,137 | |
| Amazon.com, Inc. (a) | 420 | 331,724 | |
| American Tower Corp. | 2,800 | 328,132 | |
| Amphenol Corp. Class A | 5,600 | 369,208 | |
| Autoliv, Inc. | 11,354 | 1,098,840 | |
| Berkshire Hathaway, Inc. Class B (a) | 7,516 | 1,084,559 | |
| Broadridge Financial Solutions, Inc. | 740 | 47,848 | |
| China Biologic Products, Inc. (a) | 9,600 | 1,133,856 | |
| ConocoPhillips Co. | 18,100 | 786,445 | |
| Constellation Brands, Inc. Class A (sub. vtg.) | 5,000 | 835,600 | |
| Domino's Pizza, Inc. | 5,900 | 998,516 | |
| Ecolab, Inc. | 2,600 | 296,842 | |
| Edgewell Personal Care Co. (a) | 4,300 | 324,220 | |
| Energizer Holdings, Inc. | 900 | 41,859 | |
| Facebook, Inc. Class A (a) | 2,500 | 327,475 | |
| Gartner, Inc. (a) | 3,400 | 292,536 | |
| International Flavors & Fragrances, Inc. | 2,600 | 340,028 | |
| Kennedy-Wilson Holdings, Inc. | 4,173 | 85,964 | |
| Martin Marietta Materials, Inc. | 4,470 | 828,649 | |
| MasterCard, Inc. Class A | 23,340 | 2,497,847 | |
| Mettler-Toledo International, Inc. (a) | 900 | 363,672 | |
| Mohawk Industries, Inc. (a) | 7,565 | 1,394,230 | |
| Molson Coors Brewing Co. Class B | 11,900 | 1,235,339 | |
| Moody's Corp. | 9,200 | 924,784 | |
| MSCI, Inc. | 11,600 | 930,204 | |
| NIKE, Inc. Class B | 6,200 | 311,116 | |
| Philip Morris International, Inc. | 18,100 | 1,745,564 | |
| PPG Industries, Inc. | 3,500 | 325,955 | |
| PriceSmart, Inc. | 6,785 | 617,096 | |
| ResMed, Inc. | 11,020 | 658,665 | |
| Reynolds American, Inc. | 24,100 | 1,327,428 | |
| S&P Global, Inc. | 17,000 | 2,071,450 | |
| Sherwin-Williams Co. | 2,700 | 661,122 | |
| SS&C Technologies Holdings, Inc. | 20,208 | 645,241 | |
| TransDigm Group, Inc. | 1,200 | 326,952 | |
| Visa, Inc. Class A | 32,977 | 2,720,932 | |
| Yum! Brands, Inc. | 4,000 | 345,120 | |
| TOTAL UNITED STATES OF AMERICA | 30,890,520 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $262,001,434) | 299,196,255 | ||
| Preferred Stocks - 1.1% | |||
| Convertible Preferred Stocks - 0.2% | |||
| India - 0.2% | |||
| PC Jeweller Ltd. 13.00% (c) | 3,557,622 | 641,313 | |
| Nonconvertible Preferred Stocks - 0.9% | |||
| Brazil - 0.8% | |||
| Ambev SA sponsored ADR | 139,800 | 824,820 | |
| Itau Unibanco Holding SA | 90,970 | 1,094,376 | |
| Itausa-Investimentos Itau SA (PN) | 195,700 | 578,762 | |
| 2,497,958 | |||
| Germany - 0.1% | |||
| Sartorius AG (non-vtg.) | 3,900 | 306,407 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 2,804,365 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $2,777,193) | 3,445,678 | ||
| Money Market Funds - 1.6% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 5,032,207 | 5,033,717 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $5,033,717) | 5,033,717 | ||
| TOTAL INVESTMENT PORTFOLIO - 99.9% | |||
| (Cost $269,812,344) | 307,675,650 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.1% | 334,327 | ||
| NET ASSETS - 100% | $308,009,977 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(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 $42,335 or 0.0% of net assets.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $641,313 or 0.2% of net assets.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PC Jeweller Ltd. 13.00% | 7/28/16 | $530,934 |
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 | $14,031 |
| Fidelity Securities Lending Cash Central Fund | 69,511 |
| Total | $83,542 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $37,873,996 | $30,916,851 | $6,957,145 | $-- |
| Consumer Staples | 42,442,010 | 32,582,836 | 9,859,174 | -- |
| Energy | 12,210,480 | 5,118,161 | 7,092,319 | -- |
| Financials | 52,771,195 | 33,798,106 | 18,973,089 | -- |
| Health Care | 37,136,733 | 22,001,957 | 15,134,776 | -- |
| Industrials | 35,229,107 | 27,602,925 | 7,626,182 | -- |
| Information Technology | 44,453,250 | 32,420,124 | 12,033,126 | -- |
| Materials | 23,454,257 | 19,666,108 | 3,788,149 | -- |
| Real Estate | 6,301,519 | 6,301,519 | -- | -- |
| Telecommunication Services | 5,382,754 | 2,432,374 | 2,950,380 | -- |
| Utilities | 5,386,632 | 4,215,048 | 1,171,584 | -- |
| Money Market Funds | 5,033,717 | 5,033,717 | -- | -- |
| Total Investments in Securities: | $307,675,650 | $222,089,726 | $85,585,924 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $9,305,275 |
| Level 2 to Level 1 | $62,217,779 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $264,778,627) | $302,641,933 | |
| Fidelity Central Funds (cost $5,033,717) | 5,033,717 | |
| Total Investments (cost $269,812,344) | $307,675,650 | |
| Receivable for investments sold | 1,703,656 | |
| Receivable for fund shares sold | 40,575 | |
| Dividends receivable | 1,005,096 | |
| Distributions receivable from Fidelity Central Funds | 2,021 | |
| Prepaid expenses | 809 | |
| Receivable from investment adviser for expense reductions | 3,391 | |
| Other receivables | 24,896 | |
| Total assets | 310,456,094 | |
| Liabilities | ||
| Payable to custodian bank | $750,608 | |
| Payable for investments purchased | 995,260 | |
| Payable for fund shares redeemed | 332,666 | |
| Accrued management fee | 203,776 | |
| Distribution and service plan fees payable | 10,023 | |
| Other affiliated payables | 47,733 | |
| Other payables and accrued expenses | 106,051 | |
| Total liabilities | 2,446,117 | |
| Net Assets | $308,009,977 | |
| Net Assets consist of: | ||
| Paid in capital | $293,083,649 | |
| Undistributed net investment income | 3,810,969 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (26,713,795) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 37,829,154 | |
| Net Assets | $308,009,977 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($8,575,617 ÷ 1,117,667 shares) | $7.67 | |
| Maximum offering price per share (100/94.25 of $7.67) | $8.14 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($13,893,054 ÷ 1,804,873 shares) | $7.70 | |
| Maximum offering price per share (100/96.50 of $7.70) | $7.98 | |
| Class C: | ||
| Net Asset Value and offering price per share ($2,713,045 ÷ 354,377 shares)(a) | $7.66 | |
| Total International Equity: | ||
| Net Asset Value, offering price and redemption price per share ($280,672,096 ÷ 36,473,384 shares) | $7.70 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($2,156,165 ÷ 281,538 shares) | $7.66 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $8,590,858 | |
| Income from Fidelity Central Funds | 83,542 | |
| Income before foreign taxes withheld | 8,674,400 | |
| Less foreign taxes withheld | (700,044) | |
| Total income | 7,974,356 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $2,188,799 | |
| Performance adjustment | 357,171 | |
| Transfer agent fees | 408,973 | |
| Distribution and service plan fees | 119,866 | |
| Accounting and security lending fees | 162,609 | |
| Custodian fees and expenses | 195,092 | |
| Independent trustees' fees and expenses | 1,359 | |
| Registration fees | 74,710 | |
| Audit | 121,613 | |
| Legal | 2,584 | |
| Miscellaneous | 2,496 | |
| Total expenses before reductions | 3,635,272 | |
| Expense reductions | (29,592) | 3,605,680 |
| Net investment income (loss) | 4,368,676 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 3,222,970 | |
| Fidelity Central Funds | 947 | |
| Foreign currency transactions | 15,361 | |
| Total net realized gain (loss) | 3,239,278 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $30,538) | (10,440,884) | |
| Assets and liabilities in foreign currencies | (60,918) | |
| Total change in net unrealized appreciation (depreciation) | (10,501,802) | |
| Net gain (loss) | (7,262,524) | |
| Net increase (decrease) in net assets resulting from operations | $(2,893,848) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $4,368,676 | $4,170,618 |
| Net realized gain (loss) | 3,239,278 | (5,852,740) |
| Change in net unrealized appreciation (depreciation) | (10,501,802) | (558,579) |
| Net increase (decrease) in net assets resulting from operations | (2,893,848) | (2,240,701) |
| Distributions to shareholders from net investment income | (3,869,339) | (5,482,469) |
| Distributions to shareholders from net realized gain | – | (1,726,810) |
| Total distributions | (3,869,339) | (7,209,279) |
| Share transactions - net increase (decrease) | (21,421,371) | (4,678,824) |
| Redemption fees | 1,162 | 1,289 |
| Total increase (decrease) in net assets | (28,183,396) | (14,127,515) |
| Net Assets | ||
| Beginning of period | 336,193,373 | 350,320,888 |
| End of period | $308,009,977 | $336,193,373 |
| Other Information | ||
| Undistributed net investment income end of period | $3,810,969 | $3,560,437 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.79 | $8.00 | $8.27 | $7.31 | $6.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .08 | .07 | .13 | .09 | .13 |
| Net realized and unrealized gain (loss) | (.14) | (.14) | (.12) | 1.24 | .59 |
| Total from investment operations | (.06) | (.07) | .01 | 1.33 | .72 |
| Distributions from net investment income | (.06) | (.10) | (.10) | (.13) | (.08) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.06) | (.14) | (.28) | (.37)B | (.08) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.67 | $7.79 | $8.00 | $8.27 | $7.31 |
| Total ReturnD,E | (.76)% | (.89)% | .19% | 19.00% | 10.88% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.52% | 1.48% | 1.44% | 1.50% | 1.57% |
| Expenses net of fee waivers, if any | 1.45% | 1.45% | 1.44% | 1.45% | 1.45% |
| Expenses net of all reductions | 1.45% | 1.44% | 1.44% | 1.43% | 1.42% |
| Net investment income (loss) | 1.10% | .86% | 1.63% | 1.21% | 1.88% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $8,576 | $9,163 | $9,164 | $9,034 | $5,767 |
| Portfolio turnover rateH | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.37 per share is comprised of distributions from net investment income of $.126 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.81 | $8.04 | $8.32 | $7.37 | $6.73 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .06 | .05 | .11 | .07 | .11 |
| Net realized and unrealized gain (loss) | (.13) | (.15) | (.12) | 1.25 | .59 |
| Total from investment operations | (.07) | (.10) | (.01) | 1.32 | .70 |
| Distributions from net investment income | (.04) | (.09) | (.09) | (.13) | (.06) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.04) | (.13) | (.27) | (.37)B | (.06) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.70 | $7.81 | $8.04 | $8.32 | $7.37 |
| Total ReturnD,E | (.86)% | (1.26)% | (.06)% | 18.73% | 10.52% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.73% | 1.70% | 1.68% | 1.75% | 1.84% |
| Expenses net of fee waivers, if any | 1.70% | 1.70% | 1.68% | 1.70% | 1.70% |
| Expenses net of all reductions | 1.69% | 1.69% | 1.68% | 1.67% | 1.67% |
| Net investment income (loss) | .85% | .61% | 1.38% | .96% | 1.63% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $13,893 | $13,962 | $10,282 | $7,909 | $2,348 |
| Portfolio turnover rateH | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.37 per share is comprised of distributions from net investment income of $.128 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.77 | $8.00 | $8.28 | $7.31 | $6.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .03 | .01 | .07 | .04 | .08 |
| Net realized and unrealized gain (loss) | (.14) | (.15) | (.12) | 1.25 | .58 |
| Total from investment operations | (.11) | (.14) | (.05) | 1.29 | .66 |
| Distributions from net investment income | – | (.05) | (.05) | (.08) | (.02) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | – | (.09) | (.23) | (.32)B | (.02) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.66 | $7.77 | $8.00 | $8.28 | $7.31 |
| Total ReturnD,E | (1.42)% | (1.73)% | (.57)% | 18.30% | 9.98% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 2.30% | 2.26% | 2.22% | 2.26% | 2.31% |
| Expenses net of fee waivers, if any | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
| Expenses net of all reductions | 2.20% | 2.19% | 2.20% | 2.18% | 2.17% |
| Net investment income (loss) | .35% | .11% | .87% | .46% | 1.13% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,713 | $3,311 | $4,028 | $3,584 | $2,737 |
| Portfolio turnover rateH | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.32 per share is comprised of distributions from net investment income of $.075 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.82 | $8.03 | $8.29 | $7.32 | $6.69 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .10 | .16 | .12 | .15 |
| Net realized and unrealized gain (loss) | (.13) | (.14) | (.12) | 1.24 | .58 |
| Total from investment operations | (.02) | (.04) | .04 | 1.36 | .73 |
| Distributions from net investment income | (.10) | (.13) | (.12) | (.15) | (.10) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.10) | (.17) | (.30) | (.39)B | (.10) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.70 | $7.82 | $8.03 | $8.29 | $7.32 |
| Total ReturnD | (.32)% | (.51)% | .55% | 19.48% | 11.03% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.11% | 1.07% | 1.04% | 1.09% | 1.16% |
| Expenses net of fee waivers, if any | 1.11% | 1.07% | 1.04% | 1.09% | 1.16% |
| Expenses net of all reductions | 1.10% | 1.06% | 1.04% | 1.07% | 1.13% |
| Net investment income (loss) | 1.44% | 1.24% | 2.03% | 1.57% | 2.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $280,672 | $307,035 | $324,438 | $324,395 | $281,979 |
| Portfolio turnover rateG | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Distributions of $.39 per share is comprised of distributions from net investment income of $.148 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total International Equity Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.78 | $7.99 | $8.26 | $7.30 | $6.67 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .10 | .09 | .15 | .11 | .14 |
| Net realized and unrealized gain (loss) | (.13) | (.14) | (.12) | 1.24 | .59 |
| Total from investment operations | (.03) | (.05) | .03 | 1.35 | .73 |
| Distributions from net investment income | (.09) | (.12) | (.12) | (.15) | (.10) |
| Distributions from net realized gain | – | (.04) | (.18) | (.25) | – |
| Total distributions | (.09) | (.16) | (.30) | (.39)B | (.10) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.66 | $7.78 | $7.99 | $8.26 | $7.30 |
| Total ReturnD | (.43)% | (.64)% | .37% | 19.40% | 11.06% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.22% | 1.17% | 1.15% | 1.21% | 1.27% |
| Expenses net of fee waivers, if any | 1.20% | 1.17% | 1.15% | 1.20% | 1.20% |
| Expenses net of all reductions | 1.20% | 1.16% | 1.15% | 1.18% | 1.17% |
| Net investment income (loss) | 1.35% | 1.14% | 1.91% | 1.46% | 2.13% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,156 | $2,602 | $2,240 | $2,372 | $1,514 |
| Portfolio turnover rateG | 51% | 53% | 85% | 89% | 110% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.39 per share is comprised of distributions from net investment income of $.148 and distributions from net realized gain of $.245 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Total International Equity 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 International Equity and Class I, 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.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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, partnerships, certain foreign taxes, passive foreign investment companies (PFIC), expiring capital loss carryforwards, 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 | $50,258,531 |
| Gross unrealized depreciation | (14,805,268) |
| Net unrealized appreciation (depreciation) on securities | $35,453,263 |
| Tax Cost | $272,222,387 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $3,810,198 |
| Capital loss carryforward | $(24,303,752) |
| Net unrealized appreciation (depreciation) on securities and other investments | $35,419,883 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(13,607,298) |
| 2019 | (8,855,997) |
| Total with expiration | $(22,463,295) |
| No expiration | |
| Short-term | $(1,840,457) |
| Total capital loss carryforward | $(24,303,752) |
Due to large subscriptions in a prior period, $22,463,295 of capital losses that will be available to offset future capital gains of the Fund will be limited to approximately $4,535,766 per year.
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $3,869,339 | $ 5,482,470 |
| Long-term Capital Gains | – | 1,726,809 |
| Total | $3,869,339 | $ 7,209,279 |
Short-Term Trading (Redemption) Fees. During the period, 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.
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 $159,821,752 and $182,520,476, 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 the Total International Equity as compared to its benchmark index, the MSCI All Country World ex USA Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .81% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $21,917 | $1,496 |
| Class T | .25% | .25% | 67,714 | – |
| Class B | .75% | .25% | 651 | 488 |
| Class C | .75% | .25% | 29,584 | 5,455 |
| $119,866 | $7,439 |
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 are 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 by FDC |
|
| Class A | $2,410 |
| Class T | 1,002 |
| Class C(a) | 592 |
| $4,004 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $24,190 | .28 |
| Class T | 32,787 | .24 |
| Class B | 175 | .27 |
| Class C | 9,259 | .31 |
| Total International Equity | 336,543 | .12 |
| Class I | 6,019 | .23 |
| $408,973 |
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 advisor. 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 affiliates were $710 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $799 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in cash 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 $69,511. 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, 2018. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.45% | $5,835 |
| Class T | 1.70% | 4,404 |
| Class B | 2.20% | 35 |
| Class C | 2.20% | 3,093 |
| Total International Equity | 1.20% | 2,140 |
| Class I | 1.20% | 435 |
| $15,942 |
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 $11,300 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2,350.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 |
|
| From net investment income | ||
| Class A | $72,361 | $113,499 |
| Class T | 77,358 | 118,041 |
| Class B | – | 852 |
| Class C | – | 26,493 |
| Total International Equity | 3,691,251 | 5,189,901 |
| Class I | 28,369 | 33,683 |
| Total | $3,869,339 | $5,482,469 |
| From net realized gain | ||
| Class A | $– | $45,400 |
| Class T | – | 52,463 |
| Class B | – | 832 |
| Class C | – | 19,994 |
| Total International Equity | – | 1,596,893 |
| Class I | – | 11,228 |
| Total | $– | $1,726,810 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 |
|
| Class A | ||||
| Shares sold | 221,277 | 302,437 | $1,661,593 | $2,413,258 |
| Reinvestment of distributions | 9,322 | 20,115 | 71,782 | 158,306 |
| Shares redeemed | (289,523) | (290,995) | (2,176,317) | (2,277,557) |
| Net increase (decrease) | (58,924) | 31,557 | $(442,942) | $294,007 |
| Class T | ||||
| Shares sold | 459,219 | 824,018 | $3,481,274 | $6,637,966 |
| Reinvestment of distributions | 9,988 | 21,537 | 77,308 | 170,355 |
| Shares redeemed | (451,150) | (337,655) | (3,381,486) | (2,691,540) |
| Net increase (decrease) | 18,057 | 507,900 | $177,096 | $4,116,781 |
| Class B | ||||
| Shares sold | 1,078 | 2,293 | $7,665 | $19,363 |
| Reinvestment of distributions | – | 210 | – | 1,675 |
| Shares redeemed | (16,441) | (7,999) | (122,211) | (62,934) |
| Net increase (decrease) | (15,363) | (5,496) | $(114,546) | $(41,896) |
| Class C | ||||
| Shares sold | 91,061 | 142,460 | $684,626 | $1,136,553 |
| Reinvestment of distributions | – | 4,767 | – | 37,661 |
| Shares redeemed | (162,991) | (224,769) | (1,228,823) | (1,823,746) |
| Net increase (decrease) | (71,930) | (77,542) | $(544,197) | $(649,532) |
| Total International Equity | ||||
| Shares sold | 4,801,342 | 6,834,390 | $36,478,674 | $54,586,662 |
| Reinvestment of distributions | 471,692 | 851,193 | 3,632,026 | 6,698,889 |
| Shares redeemed | (8,073,720) | (8,793,992) | (60,183,392) | (70,164,751) |
| Net increase (decrease) | (2,800,686) | (1,108,409) | $(20,072,692) | $(8,879,200) |
| Class I | ||||
| Shares sold | 155,879 | 149,022 | $1,165,295 | $1,222,878 |
| Reinvestment of distributions | 3,671 | 5,728 | 28,160 | 44,910 |
| Shares redeemed | (212,465) | (100,501) | (1,617,545) | (786,772) |
| Net increase (decrease) | (52,915) | 54,249 | $(424,090) | $481,016 |
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, a shareholder of record owned approximately 70% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Total International Equity Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Total International Equity Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Total International Equity Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 14, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.45% | |||
| Actual | $1,000.00 | $1,014.60 | $7.34 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.35 | |
| Class T | 1.70% | |||
| Actual | $1,000.00 | $1,013.20 | $8.60 | |
| Hypothetical-C | $1,000.00 | $1,016.59 | $8.62 | |
| Class C | 2.20% | |||
| Actual | $1,000.00 | $1,010.60 | $11.12 | |
| Hypothetical-C | $1,000.00 | $1,014.08 | $11.14 | |
| Total International Equity | 1.10% | |||
| Actual | $1,000.00 | $1,017.20 | $5.58 | |
| Hypothetical-C | $1,000.00 | $1,019.61 | $5.58 | |
| Class I | 1.20% | |||
| Actual | $1,000.00 | $1,015.90 | $6.08 | |
| Hypothetical-C | $1,000.00 | $1,019.10 | $6.09 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Class A designates 11%; Class T designates 15%; Total International Equity designates 8%; and Class I designates 8% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Total International Equity and Class I designate 100% of dividends distributed 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 | |
| Fidelity Total International Equity Fund | |||
| Class A | 12/07/2015 | $0.0749 | $0.0139 |
| Class T | 12/07/2015 | $0.0569 | $0.0139 |
| Total International Equity | 12/07/2015 | $0.1089 | $0.0139 |
| Class I | 12/07/2015 | $0.1009 | $0.0139 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Total International Equity Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for the fund in June 2014.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity Total International Equity Fund
Fidelity Total International Equity Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
TIE-ANN-1216
1.912358.106
|
Fidelity Advisor® International Value Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® International Value Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (10.38)% | 3.54% | (1.12)% |
| Class T (incl. 3.50% sales charge) | (8.55)% | 3.75% | (1.16)% |
| Class C (incl. contingent deferred sales charge) | (6.56)% | 4.00% | (1.27)% |
| Class I | (4.81)% | 5.08% | (0.20)% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® International Value Fund - Class A on October 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Value Index performed over the same period.
| Period Ending Values | ||
|
| $8,933 | Fidelity Advisor® International Value Fund - Class A |
|
| $10,219 | MSCI EAFE Value Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Alexander Zavratsky: For the year, most of the fund's share classes (excluding sales charges, if applicable) posted returns ranging from about -5% to -6%, underperforming the -3.10% return of the benchmark MSCI EAFE Value Index. Versus the benchmark, stock picking in the U.K. and positioning in Australia disappointed. Brexit and the associated sharp fall in the British pound significantly hurt our domestic positions. Included was the fund’s out-of-index stake in London-based commercial television giant ITV – our largest individual detractor this period – as well as multinational banking firm Barclays and retail and commercial bank Lloyds Banking Group. We exited our stake in Barclays prior to period end. On the flip side, picks among U.S.-listed names with international exposure were a positive, as were choices within Europe, especially Spain and Sweden. An out-of-index stake in German technology services firm Atos was the fund's largest relative contributor. The firm displayed a very strong free-cash-flow yield and had no debt and low expectations, plus the prospect of improving fundamentals, and the market rewarded its stock.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 21.8% | |
| United Kingdom | 21.0% | |
| France | 14.4% | |
| Switzerland | 7.5% | |
| Germany | 6.3% | |
| Australia | 4.5% | |
| United States of America* | 4.4% | |
| Netherlands | 3.8% | |
| Spain | 3.4% | |
| 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.
| As of April 30, 2016 | ||
| United Kingdom | 20.6% | |
| Japan | 19.6% | |
| France | 17.9% | |
| Switzerland | 7.9% | |
| United States of America* | 6.5% | |
| Germany | 6.0% | |
| Netherlands | 3.7% | |
| Australia | 3.7% | |
| Italy | 3.1% | |
| Other | 11.0% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 99.0 | 98.8 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.0 | 1.2 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Toyota Motor Corp. (Japan, Automobiles) | 3.1 | 2.2 |
| Total SA (France, Oil, Gas & Consumable Fuels) | 3.0 | 3.5 |
| Mitsubishi UFJ Financial Group, Inc. (Japan, Banks) | 2.4 | 1.5 |
| Westpac Banking Corp. (Australia, Banks) | 2.2 | 2.2 |
| BASF AG (Germany, Chemicals) | 2.1 | 1.7 |
| BP PLC (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 0.0 |
| AstraZeneca PLC (United Kingdom) (United Kingdom, Pharmaceuticals) | 1.8 | 1.6 |
| HSBC Holdings PLC sponsored ADR (United Kingdom, Banks) | 1.8 | 1.6 |
| ING Groep NV (Certificaten Van Aandelen) (Netherlands, Banks) | 1.8 | 1.2 |
| Sanofi SA (France, Pharmaceuticals) | 1.8 | 2.1 |
| 21.9 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 29.2 | 24.3 |
| Industrials | 11.5 | 8.8 |
| Health Care | 10.9 | 13.6 |
| Consumer Discretionary | 10.5 | 13.8 |
| Materials | 8.8 | 5.8 |
| Energy | 8.2 | 8.2 |
| Consumer Staples | 6.3 | 9.3 |
| Information Technology | 4.9 | 4.4 |
| Telecommunication Services | 4.5 | 6.8 |
| Utilities | 3.3 | 3.8 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 99.0% | |||
| Shares | Value | ||
| Australia - 4.5% | |||
| Ansell Ltd. (a) | 72,011 | $1,188,151 | |
| Insurance Australia Group Ltd. | 547,868 | 2,296,365 | |
| Macquarie Group Ltd. | 46,837 | 2,843,187 | |
| Magellan Financial Group Ltd. | 69,714 | 1,129,039 | |
| Westpac Banking Corp. | 318,438 | 7,363,863 | |
| TOTAL AUSTRALIA | 14,820,605 | ||
| Bailiwick of Jersey - 0.5% | |||
| Wolseley PLC | 30,450 | 1,584,382 | |
| Belgium - 1.2% | |||
| KBC Groep NV | 61,703 | 3,759,940 | |
| Canada - 0.9% | |||
| Imperial Oil Ltd. | 67,600 | 2,192,351 | |
| Potash Corp. of Saskatchewan, Inc. | 50,900 | 827,652 | |
| TOTAL CANADA | 3,020,003 | ||
| Finland - 1.2% | |||
| Sampo Oyj (A Shares) | 84,134 | 3,854,518 | |
| France - 14.4% | |||
| Atos Origin SA | 44,237 | 4,594,858 | |
| AXA SA | 241,321 | 5,444,762 | |
| Capgemini SA | 41,293 | 3,421,462 | |
| Havas SA | 232,403 | 1,890,697 | |
| Sanofi SA | 73,370 | 5,709,567 | |
| Societe Generale Series A | 127,000 | 4,953,954 | |
| SR Teleperformance SA | 21,500 | 2,272,128 | |
| Total SA | 207,659 | 9,947,885 | |
| VINCI SA (b) | 77,400 | 5,606,047 | |
| Vivendi SA | 153,592 | 3,108,786 | |
| TOTAL FRANCE | 46,950,146 | ||
| Germany - 6.3% | |||
| Axel Springer Verlag AG | 30,600 | 1,532,260 | |
| BASF AG | 76,377 | 6,732,581 | |
| Fresenius SE & Co. KGaA | 42,200 | 3,114,896 | |
| GEA Group AG | 43,199 | 1,670,429 | |
| HeidelbergCement Finance AG | 26,200 | 2,478,052 | |
| Linde AG | 16,000 | 2,639,869 | |
| SAP AG | 29,231 | 2,575,234 | |
| TOTAL GERMANY | 20,743,321 | ||
| Hong Kong - 1.6% | |||
| AIA Group Ltd. | 440,000 | 2,777,108 | |
| Power Assets Holdings Ltd. | 254,000 | 2,389,166 | |
| TOTAL HONG KONG | 5,166,274 | ||
| Indonesia - 0.6% | |||
| PT Bank Rakyat Indonesia Tbk | 2,131,000 | 1,992,505 | |
| Ireland - 2.1% | |||
| Allergan PLC (a) | 7,280 | 1,521,083 | |
| CRH PLC | 73,800 | 2,395,848 | |
| Medtronic PLC | 34,200 | 2,805,084 | |
| TOTAL IRELAND | 6,722,015 | ||
| Israel - 0.8% | |||
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 60,599 | 2,590,001 | |
| Italy - 0.5% | |||
| Telecom Italia SpA (a) | 1,931,300 | 1,678,866 | |
| Japan - 21.8% | |||
| Astellas Pharma, Inc. | 139,900 | 2,076,377 | |
| Daito Trust Construction Co. Ltd. | 15,200 | 2,547,344 | |
| Dentsu, Inc. | 33,100 | 1,653,895 | |
| East Japan Railway Co. | 18,800 | 1,659,498 | |
| Fuji Heavy Industries Ltd. | 75,600 | 2,951,334 | |
| Hoya Corp. | 72,600 | 3,035,673 | |
| Itochu Corp. | 217,500 | 2,755,304 | |
| Japan Tobacco, Inc. | 78,700 | 2,997,309 | |
| Kao Corp. | 30,800 | 1,587,432 | |
| KDDI Corp. | 93,800 | 2,850,880 | |
| Komatsu Ltd. | 111,200 | 2,475,212 | |
| Makita Corp. | 34,700 | 2,405,540 | |
| Mitsubishi UFJ Financial Group, Inc. | 1,517,600 | 7,830,530 | |
| Nintendo Co. Ltd. | 4,800 | 1,157,089 | |
| Nippon Prologis REIT, Inc. | 195 | 441,246 | |
| Nippon Telegraph & Telephone Corp. | 107,700 | 4,775,078 | |
| OBIC Co. Ltd. | 39,000 | 2,030,514 | |
| Olympus Corp. | 84,800 | 3,032,326 | |
| ORIX Corp. | 238,900 | 3,794,107 | |
| Seven & i Holdings Co. Ltd. | 68,500 | 2,862,930 | |
| Shin-Etsu Chemical Co. Ltd. | 20,600 | 1,565,773 | |
| Sony Corp. | 95,200 | 3,000,537 | |
| Sony Financial Holdings, Inc. | 114,700 | 1,614,353 | |
| Toyota Motor Corp. | 173,200 | 10,046,774 | |
| TOTAL JAPAN | 71,147,055 | ||
| Luxembourg - 0.3% | |||
| RTL Group SA | 11,326 | 883,373 | |
| Netherlands - 3.8% | |||
| ING Groep NV (Certificaten Van Aandelen) | 438,790 | 5,760,004 | |
| PostNL NV (a) | 173,631 | 818,070 | |
| RELX NV | 219,782 | 3,706,082 | |
| Wolters Kluwer NV | 55,133 | 2,133,712 | |
| TOTAL NETHERLANDS | 12,417,868 | ||
| Norway - 0.8% | |||
| Statoil ASA | 166,900 | 2,724,811 | |
| Spain - 3.4% | |||
| Banco Bilbao Vizcaya Argentaria SA | 130,200 | 937,269 | |
| Banco Santander SA (Spain) | 421,500 | 2,065,362 | |
| CaixaBank SA | 708,321 | 2,137,280 | |
| Iberdrola SA | 731,213 | 4,983,896 | |
| Mediaset Espana Comunicacion SA | 84,200 | 940,481 | |
| TOTAL SPAIN | 11,064,288 | ||
| Sweden - 2.4% | |||
| Nordea Bank AB | 456,800 | 4,802,086 | |
| Swedbank AB (A Shares) | 132,242 | 3,098,089 | |
| TOTAL SWEDEN | 7,900,175 | ||
| Switzerland - 7.5% | |||
| ABB Ltd. (Reg.) | 170,100 | 3,509,236 | |
| Credit Suisse Group AG | 158,124 | 2,206,269 | |
| Lafargeholcim Ltd. (Reg.) | 55,890 | 2,984,980 | |
| Nestle SA (Reg. S) | 33,221 | 2,408,985 | |
| Novartis AG | 63,746 | 4,523,900 | |
| Syngenta AG (Switzerland) | 1,689 | 675,880 | |
| UBS Group AG | 280,358 | 3,944,637 | |
| Zurich Insurance Group AG | 16,757 | 4,384,202 | |
| TOTAL SWITZERLAND | 24,638,089 | ||
| United Kingdom - 21.0% | |||
| AstraZeneca PLC (United Kingdom) | 107,030 | 5,993,153 | |
| Aviva PLC | 658,620 | 3,568,914 | |
| BAE Systems PLC | 565,429 | 3,746,394 | |
| BHP Billiton PLC | 246,529 | 3,707,073 | |
| BP PLC | 1,075,600 | 6,358,631 | |
| British American Tobacco PLC (United Kingdom) | 6,100 | 349,609 | |
| Bunzl PLC | 121,334 | 3,265,797 | |
| Compass Group PLC | 197,339 | 3,570,707 | |
| HSBC Holdings PLC sponsored ADR | 154,516 | 5,814,437 | |
| Imperial Tobacco Group PLC | 102,156 | 4,945,915 | |
| Informa PLC | 375,016 | 3,086,907 | |
| ITV PLC | 552,096 | 1,152,180 | |
| Lloyds Banking Group PLC | 5,146,600 | 3,593,990 | |
| Micro Focus International PLC | 89,100 | 2,334,940 | |
| National Grid PLC | 282,609 | 3,676,115 | |
| Rio Tinto PLC | 149,260 | 5,190,562 | |
| Royal Dutch Shell PLC Class B (United Kingdom) | 124,048 | 3,199,509 | |
| Vodafone Group PLC sponsored ADR | 187,658 | 5,224,399 | |
| TOTAL UNITED KINGDOM | 68,779,232 | ||
| United States of America - 3.4% | |||
| ConocoPhillips Co. | 57,100 | 2,480,995 | |
| Constellation Brands, Inc. Class A (sub. vtg.) | 16,100 | 2,690,632 | |
| Edgewell Personal Care Co. (a) | 13,400 | 1,010,360 | |
| Molson Coors Brewing Co. Class B | 17,800 | 1,847,818 | |
| S&P Global, Inc. | 24,800 | 3,021,880 | |
| TOTAL UNITED STATES OF AMERICA | 11,051,685 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $342,166,798) | 323,489,152 | ||
| Money Market Funds - 2.5% | |||
| Fidelity Cash Central Fund, 0.41% (c) | 2,576,738 | 2,577,511 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 5,578,884 | 5,580,000 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $8,157,511) | 8,157,511 | ||
| TOTAL INVESTMENT PORTFOLIO - 101.5% | |||
| (Cost $350,324,309) | 331,646,663 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.5)% | (4,904,006) | ||
| NET ASSETS - 100% | $326,742,657 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $12,135 |
| Fidelity Securities Lending Cash Central Fund | 227,929 |
| Total | $240,064 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $33,817,931 | $14,091,127 | $19,726,804 | $-- |
| Consumer Staples | 20,700,990 | 17,942,396 | 2,758,594 | -- |
| Energy | 26,904,182 | 4,673,346 | 22,230,836 | -- |
| Financials | 94,988,650 | 45,271,935 | 49,716,715 | -- |
| Health Care | 35,590,211 | 17,287,214 | 18,302,997 | -- |
| Industrials | 37,607,831 | 24,170,907 | 13,436,924 | -- |
| Information Technology | 16,114,097 | 12,381,774 | 3,732,323 | -- |
| Materials | 29,198,270 | 17,228,907 | 11,969,363 | -- |
| Real Estate | 2,988,590 | 2,988,590 | -- | -- |
| Telecommunication Services | 14,529,223 | 5,224,399 | 9,304,824 | -- |
| Utilities | 11,049,177 | 7,373,062 | 3,676,115 | -- |
| Money Market Funds | 8,157,511 | 8,157,511 | -- | -- |
| Total Investments in Securities: | $331,646,663 | $176,791,168 | $154,855,495 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $11,569,184 |
| Level 2 to Level 1 | $46,147,401 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $5,207,566) — See accompanying schedule: Unaffiliated issuers (cost $342,166,798) | $323,489,152 | |
| Fidelity Central Funds (cost $8,157,511) | 8,157,511 | |
| Total Investments (cost $350,324,309) | $331,646,663 | |
| Receivable for investments sold | 908,864 | |
| Receivable for fund shares sold | 97,815 | |
| Dividends receivable | 1,257,664 | |
| Distributions receivable from Fidelity Central Funds | 642 | |
| Prepaid expenses | 844 | |
| Other receivables | 7,449 | |
| Total assets | 333,919,941 | |
| Liabilities | ||
| Payable for investments purchased | $1,153,215 | |
| Payable for fund shares redeemed | 111,380 | |
| Accrued management fee | 197,032 | |
| Distribution and service plan fees payable | 6,765 | |
| Other affiliated payables | 61,395 | |
| Other payables and accrued expenses | 67,497 | |
| Collateral on securities loaned, at value | 5,580,000 | |
| Total liabilities | 7,177,284 | |
| Net Assets | $326,742,657 | |
| Net Assets consist of: | ||
| Paid in capital | $445,122,949 | |
| Undistributed net investment income | 7,482,378 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (107,140,021) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (18,722,649) | |
| Net Assets | $326,742,657 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($7,716,667 ÷ 991,832 shares) | $7.78 | |
| Maximum offering price per share (100/94.25 of $7.78) | $8.25 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($3,702,831 ÷ 476,888 shares) | $7.76 | |
| Maximum offering price per share (100/96.50 of $7.76) | $8.04 | |
| Class C: | ||
| Net Asset Value and offering price per share ($4,168,284 ÷ 538,146 shares)(a) | $7.75 | |
| International Value: | ||
| Net Asset Value, offering price and redemption price per share ($309,199,420 ÷ 39,677,508 shares) | $7.79 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($1,955,455 ÷ 250,639 shares) | $7.80 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $12,077,651 | |
| Income from Fidelity Central Funds | 240,064 | |
| Income before foreign taxes withheld | 12,317,715 | |
| Less foreign taxes withheld | (965,541) | |
| Total income | 11,352,174 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $2,211,578 | |
| Performance adjustment | 149,884 | |
| Transfer agent fees | 550,933 | |
| Distribution and service plan fees | 84,764 | |
| Accounting and security lending fees | 165,525 | |
| Custodian fees and expenses | 71,903 | |
| Independent trustees' fees and expenses | 1,339 | |
| Registration fees | 79,457 | |
| Audit | 66,005 | |
| Legal | 856 | |
| Miscellaneous | 2,052 | |
| Total expenses before reductions | 3,384,296 | |
| Expense reductions | (20,784) | 3,363,512 |
| Net investment income (loss) | 7,988,662 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (3,461,232) | |
| Fidelity Central Funds | 1,688 | |
| Foreign currency transactions | 153,820 | |
| Total net realized gain (loss) | (3,305,724) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (17,946,074) | |
| Assets and liabilities in foreign currencies | (91,289) | |
| Total change in net unrealized appreciation (depreciation) | (18,037,363) | |
| Net gain (loss) | (21,343,087) | |
| Net increase (decrease) in net assets resulting from operations | $(13,354,425) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $7,988,662 | $4,113,357 |
| Net realized gain (loss) | (3,305,724) | (2,475,305) |
| Change in net unrealized appreciation (depreciation) | (18,037,363) | (2,310,957) |
| Net increase (decrease) in net assets resulting from operations | (13,354,425) | (672,905) |
| Distributions to shareholders from net investment income | (4,084,383) | (7,553,931) |
| Share transactions - net increase (decrease) | 56,799,318 | 87,547,372 |
| Redemption fees | 637 | 863 |
| Total increase (decrease) in net assets | 39,361,147 | 79,321,399 |
| Net Assets | ||
| Beginning of period | 287,381,510 | 208,060,111 |
| End of period | $326,742,657 | $287,381,510 |
| Other Information | ||
| Undistributed net investment income end of period | $7,482,378 | $3,583,213 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.27 | $8.62 | $8.96 | $7.39 | $7.02 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .17 | .13 | .31B | .17 | .20 |
| Net realized and unrealized gain (loss) | (.57) | (.20) | (.47) | 1.64 | .39 |
| Total from investment operations | (.40) | (.07) | (.16) | 1.81 | .59 |
| Distributions from net investment income | (.09) | (.28) | (.17) | (.20) | (.22) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.09) | (.28) | (.18) | (.24) | (.22) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.78 | $8.27 | $8.62 | $8.96 | $7.39 |
| Total ReturnD,E | (4.91)% | (.81)% | (1.76)% | 25.24% | 8.82% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.40% | 1.37% | 1.32% | 1.39% | 1.44% |
| Expenses net of fee waivers, if any | 1.40% | 1.37% | 1.32% | 1.39% | 1.44% |
| Expenses net of all reductions | 1.39% | 1.36% | 1.32% | 1.36% | 1.41% |
| Net investment income (loss) | 2.19% | 1.58% | 3.44%B | 2.08% | 2.85% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $7,717 | $8,956 | $6,296 | $6,191 | $4,491 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.90%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.25 | $8.60 | $8.94 | $7.38 | $7.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15 | .11 | .28B | .15 | .18 |
| Net realized and unrealized gain (loss) | (.58) | (.20) | (.46) | 1.64 | .40 |
| Total from investment operations | (.43) | (.09) | (.18) | 1.79 | .58 |
| Distributions from net investment income | (.06) | (.26) | (.15) | (.19) | (.20) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.06) | (.26) | (.16) | (.23) | (.20) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.76 | $8.25 | $8.60 | $8.94 | $7.38 |
| Total ReturnD,E | (5.24)% | (1.09)% | (1.99)% | 24.86% | 8.60% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.70% | 1.66% | 1.59% | 1.66% | 1.71% |
| Expenses net of fee waivers, if any | 1.70% | 1.66% | 1.59% | 1.65% | 1.70% |
| Expenses net of all reductions | 1.69% | 1.65% | 1.59% | 1.63% | 1.67% |
| Net investment income (loss) | 1.89% | 1.29% | 3.17%B | 1.81% | 2.58% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $3,703 | $4,086 | $3,604 | $3,758 | $2,693 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.64%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.23 | $8.59 | $8.93 | $7.38 | $7.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .07 | .24B | .11 | .14 |
| Net realized and unrealized gain (loss) | (.57) | (.20) | (.45) | 1.63 | .41 |
| Total from investment operations | (.46) | (.13) | (.21) | 1.74 | .55 |
| Distributions from net investment income | (.02) | (.23) | (.11) | (.15) | (.17) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.02) | (.23) | (.13)C | (.19) | (.17) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $7.75 | $8.23 | $8.59 | $8.93 | $7.38 |
| Total ReturnE,F | (5.61)% | (1.58)% | (2.43)% | 24.17% | 8.12% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.17% | 2.15% | 2.07% | 2.14% | 2.19% |
| Expenses net of fee waivers, if any | 2.17% | 2.14% | 2.07% | 2.14% | 2.19% |
| Expenses net of all reductions | 2.17% | 2.14% | 2.07% | 2.11% | 2.16% |
| Net investment income (loss) | 1.42% | .81% | 2.69%B | 1.33% | 2.09% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $4,168 | $4,502 | $3,647 | $3,231 | $2,249 |
| Portfolio turnover rateI | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.15%.
C Total distributions of $.13 per share is comprised of distributions from net investment income of $.111 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.29 | $8.64 | $8.97 | $7.40 | $7.03 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .20 | .16 | .34B | .19 | .22 |
| Net realized and unrealized gain (loss) | (.58) | (.19) | (.46) | 1.65 | .40 |
| Total from investment operations | (.38) | (.03) | (.12) | 1.84 | .62 |
| Distributions from net investment income | (.12) | (.32) | (.20) | (.22) | (.25) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.12) | (.32) | (.21) | (.27)C | (.25) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $7.79 | $8.29 | $8.64 | $8.97 | $7.40 |
| Total ReturnE | (4.69)% | (.41)% | (1.34)% | 25.57% | 9.19% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.03% | 1.02% | .96% | 1.05% | 1.13% |
| Expenses net of fee waivers, if any | 1.03% | 1.02% | .96% | 1.05% | 1.13% |
| Expenses net of all reductions | 1.03% | 1.01% | .95% | 1.02% | 1.10% |
| Net investment income (loss) | 2.56% | 1.93% | 3.80%B | 2.41% | 3.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $309,199 | $267,567 | $192,789 | $181,568 | $128,983 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.27%.
C Total distributions of $.27 per share is comprised of distributions from net investment income of $.223 and distributions from net realized gain of $.042 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.29 | $8.65 | $8.98 | $7.41 | $7.04 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19 | .15 | .33B | .19 | .22 |
| Net realized and unrealized gain (loss) | (.58) | (.19) | (.45) | 1.65 | .40 |
| Total from investment operations | (.39) | (.04) | (.12) | 1.84 | .62 |
| Distributions from net investment income | (.10) | (.32) | (.19) | (.23) | (.25) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.10) | (.32) | (.21)C | (.27) | (.25) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $7.80 | $8.29 | $8.65 | $8.98 | $7.41 |
| Total ReturnE | (4.81)% | (.53)% | (1.41)% | 25.64% | 9.22% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.17% | 1.14% | 1.05% | 1.07% | 1.10% |
| Expenses net of fee waivers, if any | 1.17% | 1.14% | 1.05% | 1.07% | 1.10% |
| Expenses net of all reductions | 1.16% | 1.13% | 1.04% | 1.04% | 1.07% |
| Net investment income (loss) | 2.42% | 1.81% | 3.71%B | 2.39% | 3.18% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,955 | $1,969 | $1,310 | $239 | $372 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.18%.
C Total distributions of $.21 per share is comprised of distributions from net investment income of $.191 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Value 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, International Value and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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, partnerships, passive foreign investment companies (PFIC), 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 | $15,594,737 |
| Gross unrealized depreciation | (35,409,788) |
| Net unrealized appreciation (depreciation) on securities | $(19,815,051) |
| Tax Cost | $351,461,714 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $7,827,575 |
| Capital loss carryforward | $(106,347,914) |
| Net unrealized appreciation (depreciation) on securities and other investments | $(19,859,953) |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(65,376,972) |
| 2018 | (3,571,319) |
| 2019 | (31,368,797) |
| Total with expiration | $(100,317,088) |
| No expiration | |
| Short-term | $(6,030,826) |
| Total capital loss carryforward | $(106,347,914) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $4,084,383 | $ 7,553,931 |
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 $209,757,865 and $145,656,975, 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 International Value as compared to its benchmark index, the MSCI EAFE Value Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .75% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $20,723 | $577 |
| Class T | .25% | .25% | 19,386 | – |
| Class B | .75% | .25% | 1,467 | 1,100 |
| Class C | .75% | .25% | 43,188 | 7,271 |
| $84,764 | $8,948 |
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 by FDC |
|
| Class A | $4,496 |
| Class T | 1,249 |
| Class B(a) | 277 |
| Class C(a) | 1,157 |
| $7,179 |
(a) 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-Level Average Net Assets |
|
| Class A | $23,442 | .28 |
| Class T | 12,737 | .33 |
| Class B | 418 | .29 |
| Class C | 13,246 | .31 |
| International Value | 495,276 | .17 |
| Class I | 5,814 | .30 |
| $550,933 |
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 $303 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2,428.
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 $807 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $227,929, including $152 from 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 $18,646 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $10.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2,128.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $95,726 | $204,314 |
| Class T | 30,318 | 109,443 |
| Class B | 141 | 8,373 |
| Class C | 10,293 | 99,311 |
| International Value | 3,924,604 | 7,079,700 |
| Class I | 23,301 | 52,790 |
| Total | $4,084,383 | $7,553,931 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 238,095 | 527,583 | $1,848,202 | $4,502,640 |
| Reinvestment of distributions | 11,425 | 23,604 | 93,224 | 197,333 |
| Shares redeemed | (340,144) | (198,812) | (2,620,114) | (1,665,353) |
| Net increase (decrease) | (90,624) | 352,375 | $(678,688) | $3,034,620 |
| Class T | ||||
| Shares sold | 88,717 | 117,820 | $694,653 | $1,007,336 |
| Reinvestment of distributions | 3,669 | 12,981 | 29,980 | 108,520 |
| Shares redeemed | (110,449) | (54,747) | (851,756) | (463,119) |
| Net increase (decrease) | (18,063) | 76,054 | $(127,123) | $652,737 |
| Class B | ||||
| Shares sold | 2 | 2,257 | $14 | $18,258 |
| Reinvestment of distributions | 15 | 891 | 124 | 7,565 |
| Shares redeemed | (36,263) | (14,741) | (277,663) | (124,607) |
| Net increase (decrease) | (36,246) | (11,593) | $(277,525) | $(98,784) |
| Class C | ||||
| Shares sold | 105,656 | 208,019 | $808,615 | $1,779,247 |
| Reinvestment of distributions | 1,181 | 10,999 | 9,659 | 92,173 |
| Shares redeemed | (115,602) | (96,570) | (896,778) | (802,299) |
| Net increase (decrease) | (8,765) | 122,448 | $(78,504) | $1,069,121 |
| International Value | ||||
| Shares sold | 10,653,545 | 14,508,730 | $82,568,730 | $121,044,962 |
| Reinvestment of distributions | 470,177 | 823,202 | 3,831,944 | 6,873,736 |
| Shares redeemed | (3,741,188) | (5,350,163) | (28,527,423) | (45,687,658) |
| Net increase (decrease) | 7,382,534 | 9,981,769 | $57,873,251 | $82,231,040 |
| Class I | ||||
| Shares sold | 73,854 | 413,299 | $567,094 | $3,523,105 |
| Reinvestment of distributions | 2,528 | 5,275 | 20,650 | 44,098 |
| Shares redeemed | (63,368) | (332,392) | (499,837) | (2,908,565) |
| Net increase (decrease) | 13,014 | 86,182 | $87,907 | $658,638 |
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 II Fund was the owner of record of approximately 69% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Value Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Value Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Value Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 14, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.37% | |||
| Actual | $1,000.00 | $991.10 | $6.86 | |
| Hypothetical-C | $1,000.00 | $1,018.25 | $6.95 | |
| Class T | 1.69% | |||
| Actual | $1,000.00 | $988.50 | $8.45 | |
| Hypothetical-C | $1,000.00 | $1,016.64 | $8.57 | |
| Class C | 2.15% | |||
| Actual | $1,000.00 | $987.30 | $10.74 | |
| Hypothetical-C | $1,000.00 | $1,014.33 | $10.89 | |
| International Value | 1.00% | |||
| Actual | $1,000.00 | $992.40 | $5.01 | |
| Hypothetical-C | $1,000.00 | $1,020.11 | $5.08 | |
| Class I | 1.14% | |||
| Actual | $1,000.00 | $992.40 | $5.71 | |
| Hypothetical-C | $1,000.00 | $1,019.41 | $5.79 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity International Value 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 | |
| International Value | 12/12/2016 | 12/09/2016 | $0.198 | $0.011 |
| Class A | 12/12/2016 | 12/09/2016 | $0.166 | $0.011 |
| Class T | 12/12/2016 | 12/09/2016 | $0.142 | $0.011 |
| Class C | 12/12/2016 | 12/09/2016 | $0.107 | $0.011 |
| Class I | 12/12/2016 | 12/09/2016 | $0.190 | $0.011 |
International Value designates 3%, Class A designates 4%, Class T designates 6%, Class B designates 34%, Class C designates 15%, and Class I designates 4% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
International Value, Class A, Class T, Class B, Class C, and Class I designate 100% of the dividends distributed 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 | |
| International Value | 12/07/2015 | $0.1237 | $0.0077 |
| Class A | 12/07/2015 | $0.0957 | $0.0077 |
| Class T | 12/07/2015 | $0.0687 | $0.0077 |
| Class B | 12/07/2015 | $0.0117 | $0.0077 |
| Class C | 12/07/2015 | $0.0267 | $0.0077 |
| Class I | 12/07/2015 | $0.1037 | $0.0077 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Value Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Value Fund
Fidelity International Value Fund
AFIV-ANN-1216
1.827497.110
|
Fidelity® International Value Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® International Value Fund | (4.69)% | 5.13% | (0.21)% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® International Value Fund, a class of the fund, on October 31, 2006.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Value Index performed over the same period.
| Period Ending Values | ||
|
| $9,791 | Fidelity® International Value Fund |
|
| $10,219 | MSCI EAFE Value Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Alexander Zavratsky: For the year, most of the fund's share classes (excluding sales charges, if applicable) posted returns ranging from about -5% to -6%, underperforming the -3.10% return of the benchmark MSCI EAFE Value Index. Versus the benchmark, stock picking in the U.K. and positioning in Australia disappointed. Brexit and the associated sharp fall in the British pound significantly hurt our domestic positions. Included was the fund’s out-of-index stake in London-based commercial television giant ITV – our largest individual detractor this period – as well as multinational banking firm Barclays and retail and commercial bank Lloyds Banking Group. We exited our stake in Barclays prior to period end. On the flip side, picks among U.S.-listed names with international exposure were a positive, as were choices within Europe, especially Spain and Sweden. An out-of-index stake in German technology services firm Atos was the fund's largest relative contributor. The firm displayed a very strong free-cash-flow yield and had no debt and low expectations, plus the prospect of improving fundamentals, and the market rewarded its stock.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 21.8% | |
| United Kingdom | 21.0% | |
| France | 14.4% | |
| Switzerland | 7.5% | |
| Germany | 6.3% | |
| Australia | 4.5% | |
| United States of America* | 4.4% | |
| Netherlands | 3.8% | |
| Spain | 3.4% | |
| 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.
| As of April 30, 2016 | ||
| United Kingdom | 20.6% | |
| Japan | 19.6% | |
| France | 17.9% | |
| Switzerland | 7.9% | |
| United States of America* | 6.5% | |
| Germany | 6.0% | |
| Netherlands | 3.7% | |
| Australia | 3.7% | |
| Italy | 3.1% | |
| Other | 11.0% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 99.0 | 98.8 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.0 | 1.2 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Toyota Motor Corp. (Japan, Automobiles) | 3.1 | 2.2 |
| Total SA (France, Oil, Gas & Consumable Fuels) | 3.0 | 3.5 |
| Mitsubishi UFJ Financial Group, Inc. (Japan, Banks) | 2.4 | 1.5 |
| Westpac Banking Corp. (Australia, Banks) | 2.2 | 2.2 |
| BASF AG (Germany, Chemicals) | 2.1 | 1.7 |
| BP PLC (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 0.0 |
| AstraZeneca PLC (United Kingdom) (United Kingdom, Pharmaceuticals) | 1.8 | 1.6 |
| HSBC Holdings PLC sponsored ADR (United Kingdom, Banks) | 1.8 | 1.6 |
| ING Groep NV (Certificaten Van Aandelen) (Netherlands, Banks) | 1.8 | 1.2 |
| Sanofi SA (France, Pharmaceuticals) | 1.8 | 2.1 |
| 21.9 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 29.2 | 24.3 |
| Industrials | 11.5 | 8.8 |
| Health Care | 10.9 | 13.6 |
| Consumer Discretionary | 10.5 | 13.8 |
| Materials | 8.8 | 5.8 |
| Energy | 8.2 | 8.2 |
| Consumer Staples | 6.3 | 9.3 |
| Information Technology | 4.9 | 4.4 |
| Telecommunication Services | 4.5 | 6.8 |
| Utilities | 3.3 | 3.8 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 99.0% | |||
| Shares | Value | ||
| Australia - 4.5% | |||
| Ansell Ltd. (a) | 72,011 | $1,188,151 | |
| Insurance Australia Group Ltd. | 547,868 | 2,296,365 | |
| Macquarie Group Ltd. | 46,837 | 2,843,187 | |
| Magellan Financial Group Ltd. | 69,714 | 1,129,039 | |
| Westpac Banking Corp. | 318,438 | 7,363,863 | |
| TOTAL AUSTRALIA | 14,820,605 | ||
| Bailiwick of Jersey - 0.5% | |||
| Wolseley PLC | 30,450 | 1,584,382 | |
| Belgium - 1.2% | |||
| KBC Groep NV | 61,703 | 3,759,940 | |
| Canada - 0.9% | |||
| Imperial Oil Ltd. | 67,600 | 2,192,351 | |
| Potash Corp. of Saskatchewan, Inc. | 50,900 | 827,652 | |
| TOTAL CANADA | 3,020,003 | ||
| Finland - 1.2% | |||
| Sampo Oyj (A Shares) | 84,134 | 3,854,518 | |
| France - 14.4% | |||
| Atos Origin SA | 44,237 | 4,594,858 | |
| AXA SA | 241,321 | 5,444,762 | |
| Capgemini SA | 41,293 | 3,421,462 | |
| Havas SA | 232,403 | 1,890,697 | |
| Sanofi SA | 73,370 | 5,709,567 | |
| Societe Generale Series A | 127,000 | 4,953,954 | |
| SR Teleperformance SA | 21,500 | 2,272,128 | |
| Total SA | 207,659 | 9,947,885 | |
| VINCI SA (b) | 77,400 | 5,606,047 | |
| Vivendi SA | 153,592 | 3,108,786 | |
| TOTAL FRANCE | 46,950,146 | ||
| Germany - 6.3% | |||
| Axel Springer Verlag AG | 30,600 | 1,532,260 | |
| BASF AG | 76,377 | 6,732,581 | |
| Fresenius SE & Co. KGaA | 42,200 | 3,114,896 | |
| GEA Group AG | 43,199 | 1,670,429 | |
| HeidelbergCement Finance AG | 26,200 | 2,478,052 | |
| Linde AG | 16,000 | 2,639,869 | |
| SAP AG | 29,231 | 2,575,234 | |
| TOTAL GERMANY | 20,743,321 | ||
| Hong Kong - 1.6% | |||
| AIA Group Ltd. | 440,000 | 2,777,108 | |
| Power Assets Holdings Ltd. | 254,000 | 2,389,166 | |
| TOTAL HONG KONG | 5,166,274 | ||
| Indonesia - 0.6% | |||
| PT Bank Rakyat Indonesia Tbk | 2,131,000 | 1,992,505 | |
| Ireland - 2.1% | |||
| Allergan PLC (a) | 7,280 | 1,521,083 | |
| CRH PLC | 73,800 | 2,395,848 | |
| Medtronic PLC | 34,200 | 2,805,084 | |
| TOTAL IRELAND | 6,722,015 | ||
| Israel - 0.8% | |||
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 60,599 | 2,590,001 | |
| Italy - 0.5% | |||
| Telecom Italia SpA (a) | 1,931,300 | 1,678,866 | |
| Japan - 21.8% | |||
| Astellas Pharma, Inc. | 139,900 | 2,076,377 | |
| Daito Trust Construction Co. Ltd. | 15,200 | 2,547,344 | |
| Dentsu, Inc. | 33,100 | 1,653,895 | |
| East Japan Railway Co. | 18,800 | 1,659,498 | |
| Fuji Heavy Industries Ltd. | 75,600 | 2,951,334 | |
| Hoya Corp. | 72,600 | 3,035,673 | |
| Itochu Corp. | 217,500 | 2,755,304 | |
| Japan Tobacco, Inc. | 78,700 | 2,997,309 | |
| Kao Corp. | 30,800 | 1,587,432 | |
| KDDI Corp. | 93,800 | 2,850,880 | |
| Komatsu Ltd. | 111,200 | 2,475,212 | |
| Makita Corp. | 34,700 | 2,405,540 | |
| Mitsubishi UFJ Financial Group, Inc. | 1,517,600 | 7,830,530 | |
| Nintendo Co. Ltd. | 4,800 | 1,157,089 | |
| Nippon Prologis REIT, Inc. | 195 | 441,246 | |
| Nippon Telegraph & Telephone Corp. | 107,700 | 4,775,078 | |
| OBIC Co. Ltd. | 39,000 | 2,030,514 | |
| Olympus Corp. | 84,800 | 3,032,326 | |
| ORIX Corp. | 238,900 | 3,794,107 | |
| Seven & i Holdings Co. Ltd. | 68,500 | 2,862,930 | |
| Shin-Etsu Chemical Co. Ltd. | 20,600 | 1,565,773 | |
| Sony Corp. | 95,200 | 3,000,537 | |
| Sony Financial Holdings, Inc. | 114,700 | 1,614,353 | |
| Toyota Motor Corp. | 173,200 | 10,046,774 | |
| TOTAL JAPAN | 71,147,055 | ||
| Luxembourg - 0.3% | |||
| RTL Group SA | 11,326 | 883,373 | |
| Netherlands - 3.8% | |||
| ING Groep NV (Certificaten Van Aandelen) | 438,790 | 5,760,004 | |
| PostNL NV (a) | 173,631 | 818,070 | |
| RELX NV | 219,782 | 3,706,082 | |
| Wolters Kluwer NV | 55,133 | 2,133,712 | |
| TOTAL NETHERLANDS | 12,417,868 | ||
| Norway - 0.8% | |||
| Statoil ASA | 166,900 | 2,724,811 | |
| Spain - 3.4% | |||
| Banco Bilbao Vizcaya Argentaria SA | 130,200 | 937,269 | |
| Banco Santander SA (Spain) | 421,500 | 2,065,362 | |
| CaixaBank SA | 708,321 | 2,137,280 | |
| Iberdrola SA | 731,213 | 4,983,896 | |
| Mediaset Espana Comunicacion SA | 84,200 | 940,481 | |
| TOTAL SPAIN | 11,064,288 | ||
| Sweden - 2.4% | |||
| Nordea Bank AB | 456,800 | 4,802,086 | |
| Swedbank AB (A Shares) | 132,242 | 3,098,089 | |
| TOTAL SWEDEN | 7,900,175 | ||
| Switzerland - 7.5% | |||
| ABB Ltd. (Reg.) | 170,100 | 3,509,236 | |
| Credit Suisse Group AG | 158,124 | 2,206,269 | |
| Lafargeholcim Ltd. (Reg.) | 55,890 | 2,984,980 | |
| Nestle SA (Reg. S) | 33,221 | 2,408,985 | |
| Novartis AG | 63,746 | 4,523,900 | |
| Syngenta AG (Switzerland) | 1,689 | 675,880 | |
| UBS Group AG | 280,358 | 3,944,637 | |
| Zurich Insurance Group AG | 16,757 | 4,384,202 | |
| TOTAL SWITZERLAND | 24,638,089 | ||
| United Kingdom - 21.0% | |||
| AstraZeneca PLC (United Kingdom) | 107,030 | 5,993,153 | |
| Aviva PLC | 658,620 | 3,568,914 | |
| BAE Systems PLC | 565,429 | 3,746,394 | |
| BHP Billiton PLC | 246,529 | 3,707,073 | |
| BP PLC | 1,075,600 | 6,358,631 | |
| British American Tobacco PLC (United Kingdom) | 6,100 | 349,609 | |
| Bunzl PLC | 121,334 | 3,265,797 | |
| Compass Group PLC | 197,339 | 3,570,707 | |
| HSBC Holdings PLC sponsored ADR | 154,516 | 5,814,437 | |
| Imperial Tobacco Group PLC | 102,156 | 4,945,915 | |
| Informa PLC | 375,016 | 3,086,907 | |
| ITV PLC | 552,096 | 1,152,180 | |
| Lloyds Banking Group PLC | 5,146,600 | 3,593,990 | |
| Micro Focus International PLC | 89,100 | 2,334,940 | |
| National Grid PLC | 282,609 | 3,676,115 | |
| Rio Tinto PLC | 149,260 | 5,190,562 | |
| Royal Dutch Shell PLC Class B (United Kingdom) | 124,048 | 3,199,509 | |
| Vodafone Group PLC sponsored ADR | 187,658 | 5,224,399 | |
| TOTAL UNITED KINGDOM | 68,779,232 | ||
| United States of America - 3.4% | |||
| ConocoPhillips Co. | 57,100 | 2,480,995 | |
| Constellation Brands, Inc. Class A (sub. vtg.) | 16,100 | 2,690,632 | |
| Edgewell Personal Care Co. (a) | 13,400 | 1,010,360 | |
| Molson Coors Brewing Co. Class B | 17,800 | 1,847,818 | |
| S&P Global, Inc. | 24,800 | 3,021,880 | |
| TOTAL UNITED STATES OF AMERICA | 11,051,685 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $342,166,798) | 323,489,152 | ||
| Money Market Funds - 2.5% | |||
| Fidelity Cash Central Fund, 0.41% (c) | 2,576,738 | 2,577,511 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 5,578,884 | 5,580,000 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $8,157,511) | 8,157,511 | ||
| TOTAL INVESTMENT PORTFOLIO - 101.5% | |||
| (Cost $350,324,309) | 331,646,663 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.5)% | (4,904,006) | ||
| NET ASSETS - 100% | $326,742,657 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $12,135 |
| Fidelity Securities Lending Cash Central Fund | 227,929 |
| Total | $240,064 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $33,817,931 | $14,091,127 | $19,726,804 | $-- |
| Consumer Staples | 20,700,990 | 17,942,396 | 2,758,594 | -- |
| Energy | 26,904,182 | 4,673,346 | 22,230,836 | -- |
| Financials | 94,988,650 | 45,271,935 | 49,716,715 | -- |
| Health Care | 35,590,211 | 17,287,214 | 18,302,997 | -- |
| Industrials | 37,607,831 | 24,170,907 | 13,436,924 | -- |
| Information Technology | 16,114,097 | 12,381,774 | 3,732,323 | -- |
| Materials | 29,198,270 | 17,228,907 | 11,969,363 | -- |
| Real Estate | 2,988,590 | 2,988,590 | -- | -- |
| Telecommunication Services | 14,529,223 | 5,224,399 | 9,304,824 | -- |
| Utilities | 11,049,177 | 7,373,062 | 3,676,115 | -- |
| Money Market Funds | 8,157,511 | 8,157,511 | -- | -- |
| Total Investments in Securities: | $331,646,663 | $176,791,168 | $154,855,495 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $11,569,184 |
| Level 2 to Level 1 | $46,147,401 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $5,207,566) — See accompanying schedule: Unaffiliated issuers (cost $342,166,798) | $323,489,152 | |
| Fidelity Central Funds (cost $8,157,511) | 8,157,511 | |
| Total Investments (cost $350,324,309) | $331,646,663 | |
| Receivable for investments sold | 908,864 | |
| Receivable for fund shares sold | 97,815 | |
| Dividends receivable | 1,257,664 | |
| Distributions receivable from Fidelity Central Funds | 642 | |
| Prepaid expenses | 844 | |
| Other receivables | 7,449 | |
| Total assets | 333,919,941 | |
| Liabilities | ||
| Payable for investments purchased | $1,153,215 | |
| Payable for fund shares redeemed | 111,380 | |
| Accrued management fee | 197,032 | |
| Distribution and service plan fees payable | 6,765 | |
| Other affiliated payables | 61,395 | |
| Other payables and accrued expenses | 67,497 | |
| Collateral on securities loaned, at value | 5,580,000 | |
| Total liabilities | 7,177,284 | |
| Net Assets | $326,742,657 | |
| Net Assets consist of: | ||
| Paid in capital | $445,122,949 | |
| Undistributed net investment income | 7,482,378 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (107,140,021) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (18,722,649) | |
| Net Assets | $326,742,657 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($7,716,667 ÷ 991,832 shares) | $7.78 | |
| Maximum offering price per share (100/94.25 of $7.78) | $8.25 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($3,702,831 ÷ 476,888 shares) | $7.76 | |
| Maximum offering price per share (100/96.50 of $7.76) | $8.04 | |
| Class C: | ||
| Net Asset Value and offering price per share ($4,168,284 ÷ 538,146 shares)(a) | $7.75 | |
| International Value: | ||
| Net Asset Value, offering price and redemption price per share ($309,199,420 ÷ 39,677,508 shares) | $7.79 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($1,955,455 ÷ 250,639 shares) | $7.80 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $12,077,651 | |
| Income from Fidelity Central Funds | 240,064 | |
| Income before foreign taxes withheld | 12,317,715 | |
| Less foreign taxes withheld | (965,541) | |
| Total income | 11,352,174 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $2,211,578 | |
| Performance adjustment | 149,884 | |
| Transfer agent fees | 550,933 | |
| Distribution and service plan fees | 84,764 | |
| Accounting and security lending fees | 165,525 | |
| Custodian fees and expenses | 71,903 | |
| Independent trustees' fees and expenses | 1,339 | |
| Registration fees | 79,457 | |
| Audit | 66,005 | |
| Legal | 856 | |
| Miscellaneous | 2,052 | |
| Total expenses before reductions | 3,384,296 | |
| Expense reductions | (20,784) | 3,363,512 |
| Net investment income (loss) | 7,988,662 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (3,461,232) | |
| Fidelity Central Funds | 1,688 | |
| Foreign currency transactions | 153,820 | |
| Total net realized gain (loss) | (3,305,724) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (17,946,074) | |
| Assets and liabilities in foreign currencies | (91,289) | |
| Total change in net unrealized appreciation (depreciation) | (18,037,363) | |
| Net gain (loss) | (21,343,087) | |
| Net increase (decrease) in net assets resulting from operations | $(13,354,425) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $7,988,662 | $4,113,357 |
| Net realized gain (loss) | (3,305,724) | (2,475,305) |
| Change in net unrealized appreciation (depreciation) | (18,037,363) | (2,310,957) |
| Net increase (decrease) in net assets resulting from operations | (13,354,425) | (672,905) |
| Distributions to shareholders from net investment income | (4,084,383) | (7,553,931) |
| Share transactions - net increase (decrease) | 56,799,318 | 87,547,372 |
| Redemption fees | 637 | 863 |
| Total increase (decrease) in net assets | 39,361,147 | 79,321,399 |
| Net Assets | ||
| Beginning of period | 287,381,510 | 208,060,111 |
| End of period | $326,742,657 | $287,381,510 |
| Other Information | ||
| Undistributed net investment income end of period | $7,482,378 | $3,583,213 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.27 | $8.62 | $8.96 | $7.39 | $7.02 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .17 | .13 | .31B | .17 | .20 |
| Net realized and unrealized gain (loss) | (.57) | (.20) | (.47) | 1.64 | .39 |
| Total from investment operations | (.40) | (.07) | (.16) | 1.81 | .59 |
| Distributions from net investment income | (.09) | (.28) | (.17) | (.20) | (.22) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.09) | (.28) | (.18) | (.24) | (.22) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.78 | $8.27 | $8.62 | $8.96 | $7.39 |
| Total ReturnD,E | (4.91)% | (.81)% | (1.76)% | 25.24% | 8.82% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.40% | 1.37% | 1.32% | 1.39% | 1.44% |
| Expenses net of fee waivers, if any | 1.40% | 1.37% | 1.32% | 1.39% | 1.44% |
| Expenses net of all reductions | 1.39% | 1.36% | 1.32% | 1.36% | 1.41% |
| Net investment income (loss) | 2.19% | 1.58% | 3.44%B | 2.08% | 2.85% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $7,717 | $8,956 | $6,296 | $6,191 | $4,491 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.90%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.25 | $8.60 | $8.94 | $7.38 | $7.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15 | .11 | .28B | .15 | .18 |
| Net realized and unrealized gain (loss) | (.58) | (.20) | (.46) | 1.64 | .40 |
| Total from investment operations | (.43) | (.09) | (.18) | 1.79 | .58 |
| Distributions from net investment income | (.06) | (.26) | (.15) | (.19) | (.20) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.06) | (.26) | (.16) | (.23) | (.20) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $7.76 | $8.25 | $8.60 | $8.94 | $7.38 |
| Total ReturnD,E | (5.24)% | (1.09)% | (1.99)% | 24.86% | 8.60% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.70% | 1.66% | 1.59% | 1.66% | 1.71% |
| Expenses net of fee waivers, if any | 1.70% | 1.66% | 1.59% | 1.65% | 1.70% |
| Expenses net of all reductions | 1.69% | 1.65% | 1.59% | 1.63% | 1.67% |
| Net investment income (loss) | 1.89% | 1.29% | 3.17%B | 1.81% | 2.58% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $3,703 | $4,086 | $3,604 | $3,758 | $2,693 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.64%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.23 | $8.59 | $8.93 | $7.38 | $7.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .07 | .24B | .11 | .14 |
| Net realized and unrealized gain (loss) | (.57) | (.20) | (.45) | 1.63 | .41 |
| Total from investment operations | (.46) | (.13) | (.21) | 1.74 | .55 |
| Distributions from net investment income | (.02) | (.23) | (.11) | (.15) | (.17) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.02) | (.23) | (.13)C | (.19) | (.17) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $7.75 | $8.23 | $8.59 | $8.93 | $7.38 |
| Total ReturnE,F | (5.61)% | (1.58)% | (2.43)% | 24.17% | 8.12% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.17% | 2.15% | 2.07% | 2.14% | 2.19% |
| Expenses net of fee waivers, if any | 2.17% | 2.14% | 2.07% | 2.14% | 2.19% |
| Expenses net of all reductions | 2.17% | 2.14% | 2.07% | 2.11% | 2.16% |
| Net investment income (loss) | 1.42% | .81% | 2.69%B | 1.33% | 2.09% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $4,168 | $4,502 | $3,647 | $3,231 | $2,249 |
| Portfolio turnover rateI | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.15%.
C Total distributions of $.13 per share is comprised of distributions from net investment income of $.111 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.29 | $8.64 | $8.97 | $7.40 | $7.03 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .20 | .16 | .34B | .19 | .22 |
| Net realized and unrealized gain (loss) | (.58) | (.19) | (.46) | 1.65 | .40 |
| Total from investment operations | (.38) | (.03) | (.12) | 1.84 | .62 |
| Distributions from net investment income | (.12) | (.32) | (.20) | (.22) | (.25) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.12) | (.32) | (.21) | (.27)C | (.25) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $7.79 | $8.29 | $8.64 | $8.97 | $7.40 |
| Total ReturnE | (4.69)% | (.41)% | (1.34)% | 25.57% | 9.19% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.03% | 1.02% | .96% | 1.05% | 1.13% |
| Expenses net of fee waivers, if any | 1.03% | 1.02% | .96% | 1.05% | 1.13% |
| Expenses net of all reductions | 1.03% | 1.01% | .95% | 1.02% | 1.10% |
| Net investment income (loss) | 2.56% | 1.93% | 3.80%B | 2.41% | 3.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $309,199 | $267,567 | $192,789 | $181,568 | $128,983 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.27%.
C Total distributions of $.27 per share is comprised of distributions from net investment income of $.223 and distributions from net realized gain of $.042 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Value Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $8.29 | $8.65 | $8.98 | $7.41 | $7.04 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19 | .15 | .33B | .19 | .22 |
| Net realized and unrealized gain (loss) | (.58) | (.19) | (.45) | 1.65 | .40 |
| Total from investment operations | (.39) | (.04) | (.12) | 1.84 | .62 |
| Distributions from net investment income | (.10) | (.32) | (.19) | (.23) | (.25) |
| Distributions from net realized gain | – | – | (.01) | (.04) | – |
| Total distributions | (.10) | (.32) | (.21)C | (.27) | (.25) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $7.80 | $8.29 | $8.65 | $8.98 | $7.41 |
| Total ReturnE | (4.81)% | (.53)% | (1.41)% | 25.64% | 9.22% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.17% | 1.14% | 1.05% | 1.07% | 1.10% |
| Expenses net of fee waivers, if any | 1.17% | 1.14% | 1.05% | 1.07% | 1.10% |
| Expenses net of all reductions | 1.16% | 1.13% | 1.04% | 1.04% | 1.07% |
| Net investment income (loss) | 2.42% | 1.81% | 3.71%B | 2.39% | 3.18% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,955 | $1,969 | $1,310 | $239 | $372 |
| Portfolio turnover rateH | 47% | 44% | 69% | 79% | 74% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.14 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.18%.
C Total distributions of $.21 per share is comprised of distributions from net investment income of $.191 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Value 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, International Value and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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, partnerships, passive foreign investment companies (PFIC), 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 | $15,594,737 |
| Gross unrealized depreciation | (35,409,788) |
| Net unrealized appreciation (depreciation) on securities | $(19,815,051) |
| Tax Cost | $351,461,714 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $7,827,575 |
| Capital loss carryforward | $(106,347,914) |
| Net unrealized appreciation (depreciation) on securities and other investments | $(19,859,953) |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(65,376,972) |
| 2018 | (3,571,319) |
| 2019 | (31,368,797) |
| Total with expiration | $(100,317,088) |
| No expiration | |
| Short-term | $(6,030,826) |
| Total capital loss carryforward | $(106,347,914) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $4,084,383 | $ 7,553,931 |
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 $209,757,865 and $145,656,975, 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 International Value as compared to its benchmark index, the MSCI EAFE Value Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .75% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $20,723 | $577 |
| Class T | .25% | .25% | 19,386 | – |
| Class B | .75% | .25% | 1,467 | 1,100 |
| Class C | .75% | .25% | 43,188 | 7,271 |
| $84,764 | $8,948 |
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 by FDC |
|
| Class A | $4,496 |
| Class T | 1,249 |
| Class B(a) | 277 |
| Class C(a) | 1,157 |
| $7,179 |
(a) 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-Level Average Net Assets |
|
| Class A | $23,442 | .28 |
| Class T | 12,737 | .33 |
| Class B | 418 | .29 |
| Class C | 13,246 | .31 |
| International Value | 495,276 | .17 |
| Class I | 5,814 | .30 |
| $550,933 |
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 $303 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $2,428.
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 $807 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $227,929, including $152 from 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 $18,646 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $10.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $2,128.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $95,726 | $204,314 |
| Class T | 30,318 | 109,443 |
| Class B | 141 | 8,373 |
| Class C | 10,293 | 99,311 |
| International Value | 3,924,604 | 7,079,700 |
| Class I | 23,301 | 52,790 |
| Total | $4,084,383 | $7,553,931 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 238,095 | 527,583 | $1,848,202 | $4,502,640 |
| Reinvestment of distributions | 11,425 | 23,604 | 93,224 | 197,333 |
| Shares redeemed | (340,144) | (198,812) | (2,620,114) | (1,665,353) |
| Net increase (decrease) | (90,624) | 352,375 | $(678,688) | $3,034,620 |
| Class T | ||||
| Shares sold | 88,717 | 117,820 | $694,653 | $1,007,336 |
| Reinvestment of distributions | 3,669 | 12,981 | 29,980 | 108,520 |
| Shares redeemed | (110,449) | (54,747) | (851,756) | (463,119) |
| Net increase (decrease) | (18,063) | 76,054 | $(127,123) | $652,737 |
| Class B | ||||
| Shares sold | 2 | 2,257 | $14 | $18,258 |
| Reinvestment of distributions | 15 | 891 | 124 | 7,565 |
| Shares redeemed | (36,263) | (14,741) | (277,663) | (124,607) |
| Net increase (decrease) | (36,246) | (11,593) | $(277,525) | $(98,784) |
| Class C | ||||
| Shares sold | 105,656 | 208,019 | $808,615 | $1,779,247 |
| Reinvestment of distributions | 1,181 | 10,999 | 9,659 | 92,173 |
| Shares redeemed | (115,602) | (96,570) | (896,778) | (802,299) |
| Net increase (decrease) | (8,765) | 122,448 | $(78,504) | $1,069,121 |
| International Value | ||||
| Shares sold | 10,653,545 | 14,508,730 | $82,568,730 | $121,044,962 |
| Reinvestment of distributions | 470,177 | 823,202 | 3,831,944 | 6,873,736 |
| Shares redeemed | (3,741,188) | (5,350,163) | (28,527,423) | (45,687,658) |
| Net increase (decrease) | 7,382,534 | 9,981,769 | $57,873,251 | $82,231,040 |
| Class I | ||||
| Shares sold | 73,854 | 413,299 | $567,094 | $3,523,105 |
| Reinvestment of distributions | 2,528 | 5,275 | 20,650 | 44,098 |
| Shares redeemed | (63,368) | (332,392) | (499,837) | (2,908,565) |
| Net increase (decrease) | 13,014 | 86,182 | $87,907 | $658,638 |
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 II Fund was the owner of record of approximately 69% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Value Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Value Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Value Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 14, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.37% | |||
| Actual | $1,000.00 | $991.10 | $6.86 | |
| Hypothetical-C | $1,000.00 | $1,018.25 | $6.95 | |
| Class T | 1.69% | |||
| Actual | $1,000.00 | $988.50 | $8.45 | |
| Hypothetical-C | $1,000.00 | $1,016.64 | $8.57 | |
| Class C | 2.15% | |||
| Actual | $1,000.00 | $987.30 | $10.74 | |
| Hypothetical-C | $1,000.00 | $1,014.33 | $10.89 | |
| International Value | 1.00% | |||
| Actual | $1,000.00 | $992.40 | $5.01 | |
| Hypothetical-C | $1,000.00 | $1,020.11 | $5.08 | |
| Class I | 1.14% | |||
| Actual | $1,000.00 | $992.40 | $5.71 | |
| Hypothetical-C | $1,000.00 | $1,019.41 | $5.79 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity International Value 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 | |
| International Value | 12/12/2016 | 12/09/2016 | $0.198 | $0.011 |
| Class A | 12/12/2016 | 12/09/2016 | $0.166 | $0.011 |
| Class T | 12/12/2016 | 12/09/2016 | $0.142 | $0.011 |
| Class C | 12/12/2016 | 12/09/2016 | $0.107 | $0.011 |
| Class I | 12/12/2016 | 12/09/2016 | $0.190 | $0.011 |
International Value designates 3%, Class A designates 4%, Class T designates 6%, Class B designates 34%, Class C designates 15%, and Class I designates 4% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
International Value, Class A, Class T, Class B, Class C, and Class I designate 100% of the dividends distributed 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 | |
| International Value | 12/07/2015 | $0.1237 | $0.0077 |
| Class A | 12/07/2015 | $0.0957 | $0.0077 |
| Class T | 12/07/2015 | $0.0687 | $0.0077 |
| Class B | 12/07/2015 | $0.0117 | $0.0077 |
| Class C | 12/07/2015 | $0.0267 | $0.0077 |
| Class I | 12/07/2015 | $0.1037 | $0.0077 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Value Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Value Fund
Fidelity International Value Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FIV-ANN-1216
1.827482.110
|
Fidelity Advisor® Total Emerging Markets Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® Total Emerging Markets Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Life of fundA |
| Class A (incl. 5.75% sales charge) | 5.69% | 2.82% |
| Class T (incl. 3.50% sales charge) | 8.00% | 3.05% |
| Class C (incl. contingent deferred sales charge) | 10.36% | 3.26% |
| Class I | 12.48% | 4.30% |
A From November 1, 2011
Class C shares' contingent deferred sales charges included in the past one year and life of fund total return figures are 1% and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Total Emerging Markets Fund - Class A on November 1, 2011, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI Emerging Markets Index performed over the same period.
| Period Ending Values | ||
|
| $11,492 | Fidelity Advisor® Total Emerging Markets Fund - Class A |
|
| $10,747 | MSCI Emerging Markets Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.'s June vote to exit the European Union – dubbed "Brexit" – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-caps stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from "risk off" to "risk on." Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Lead-Portfolio Manager John Carlson: For the year, the fund's share classes (excluding sales charges, if applicable) generally advanced about 12%, outpacing the 10.66% return of the Fidelity Total Emerging Markets Composite IndexSM. Security selection within both the emerging markets (EM) debt and equity sleeves lifted relative performance most, and asset allocation decisions also helped. The debt sleeve’s outperformance was driven primarily by its overweightings in strong-performing index components Venezuela and Brazil. Toward the end of the period, Venezuela’s state oil company completed a debt swap extending short-dated maturities and buying the country more time to adjust to the low oil-price environment. Brazilian assets also rallied this period, as expectations rose for fiscal adjustments under the country’s new administration after Brazil’s president was formally impeached. Meanwhile, our EM equity component benefited from positioning in South Africa, China, Brazil, India and Russia, as well as security selection in Mexico. In terms of stocks, our non-index stake in Smiles was a plus. Smiles manages the frequent-flyer program of Brazilian low-cost air carrier GOL Airlines. The stock rallied this year along with broader Brazilian market. Conversely, an underweighting Brazil’s Banco Bradesco hurt most, as the stock outperformed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 2.8 | 2.1 |
| Naspers Ltd. Class N (South Africa, Media) | 2.4 | 2.0 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 2.3 | 1.5 |
| Samsung Electronics Co. Ltd. (Korea (South), Technology Hardware, Storage & Peripherals) | 2.2 | 1.0 |
| Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 1.4 | 1.4 |
| 11.1 |
Top Five Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 16.4 | 18.8 |
| Information Technology | 14.7 | 13.0 |
| Energy | 12.4 | 16.8 |
| Consumer Discretionary | 8.1 | 7.4 |
| Consumer Staples | 5.4 | 5.8 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Top Five Countries as of October 31, 2016
| (excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
| Korea (South) | 8.0 | 8.7 |
| Cayman Islands | 7.1 | 6.9 |
| Brazil | 6.7 | 6.1 |
| India | 5.9 | 5.5 |
| Taiwan | 5.3 | 4.4 |
Percentages are adjusted for the effect of futures contracts, if applicable.
Asset Allocation (% of fund's net assets)
| As of October 31, 2016 | ||
| Stocks and Equity Futures | 68.3% | |
| Bonds | 26.6% | |
| Other Investments | 0.1% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 5.0% | |
| As of April 30, 2016 | ||
| Stocks and Equity Futures | 67.5% | |
| Bonds | 28.8% | |
| Other Investments | 0.3% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 3.4% | |
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 59.5% | |||
| Shares | Value | ||
| Argentina - 0.3% | |||
| Grupo Superveille SA sponsored ADR (a) | 4,200 | $63,756 | |
| Telecom Argentina SA Class B sponsored ADR | 8,534 | 160,610 | |
| YPF SA Class D sponsored ADR | 11,500 | 204,240 | |
| TOTAL ARGENTINA | 428,606 | ||
| Australia - 0.0% | |||
| Frontier Digital Ventures Ltd. | 101,123 | 39,231 | |
| Austria - 0.3% | |||
| Erste Group Bank AG | 13,475 | 423,204 | |
| Bermuda - 0.8% | |||
| AGTech Holdings Ltd. (b) | 500,000 | 104,441 | |
| Credicorp Ltd. (United States) | 1,950 | 289,926 | |
| GP Investments Ltd. Class A (depositary receipt) (b) | 22,922 | 49,837 | |
| PAX Global Technology Ltd. | 249,460 | 156,002 | |
| Shangri-La Asia Ltd. | 520,000 | 571,926 | |
| VimpelCom Ltd. sponsored ADR | 47,160 | 157,514 | |
| TOTAL BERMUDA | 1,329,646 | ||
| Brazil - 2.1% | |||
| B2W Companhia Global do Varejo (b) | 56,040 | 275,284 | |
| BB Seguridade Participacoes SA | 37,670 | 379,296 | |
| BR Malls Participacoes SA | 22,380 | 89,604 | |
| Cielo SA | 25,896 | 262,854 | |
| Companhia de Saneamento de Minas Gerais | 25,496 | 266,142 | |
| Cosan SA Industria e Comercio | 16,835 | 226,365 | |
| Direcional Engenharia SA | 89,300 | 154,429 | |
| FPC Par Corretora de Seguros | 70,900 | 335,176 | |
| Minerva SA (b) | 92,300 | 292,341 | |
| Smiles SA | 51,600 | 941,797 | |
| TOTAL BRAZIL | 3,223,288 | ||
| British Virgin Islands - 0.1% | |||
| Mail.Ru Group Ltd. GDR (Reg. S) (b) | 12,836 | 210,125 | |
| Canada - 0.3% | |||
| Pacific Exploration and Production Corp. warrants | 450 | 13,392 | |
| Pan American Silver Corp. | 20,800 | 333,424 | |
| Torex Gold Resources, Inc. (b) | 7,030 | 130,768 | |
| TOTAL CANADA | 477,584 | ||
| Cayman Islands - 7.0% | |||
| 51job, Inc. sponsored ADR (b) | 5,900 | 200,600 | |
| 58.com, Inc. ADR (b) | 24,050 | 1,006,493 | |
| Alibaba Group Holding Ltd. sponsored ADR (b) | 21,800 | 2,216,842 | |
| Bitauto Holdings Ltd. ADR (b) | 15,400 | 393,162 | |
| BizLink Holding, Inc. | 18,294 | 92,838 | |
| China State Construction International Holdings Ltd. | 208,000 | 304,133 | |
| CK Hutchison Holdings Ltd. | 18,170 | 224,795 | |
| Ctrip.com International Ltd. ADR (b) | 2,700 | 119,205 | |
| Fang Holdings Ltd. ADR (b) | 32,400 | 107,892 | |
| Haitian International Holdings Ltd. | 104,000 | 214,556 | |
| Himax Technologies, Inc. sponsored ADR | 15,200 | 119,320 | |
| JD.com, Inc. sponsored ADR (b) | 36,000 | 934,200 | |
| Sino Biopharmaceutical Ltd. | 514,000 | 359,874 | |
| Sunny Optical Technology Group Co. Ltd. | 7,000 | 34,208 | |
| Tencent Holdings Ltd. | 135,150 | 3,581,791 | |
| Uni-President China Holdings Ltd. | 792,600 | 536,538 | |
| Vipshop Holdings Ltd. ADR (b) | 32,300 | 441,541 | |
| TOTAL CAYMAN ISLANDS | 10,887,988 | ||
| Chile - 1.0% | |||
| Compania Cervecerias Unidas SA sponsored ADR | 14,900 | 320,350 | |
| CorpBanca SA | 28,194,559 | 255,306 | |
| Enersis SA | 1,580,842 | 267,418 | |
| Inversiones La Construccion SA | 17,643 | 215,939 | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | 9,700 | 283,822 | |
| Vina Concha y Toro SA | 93,580 | 163,173 | |
| TOTAL CHILE | 1,506,008 | ||
| China - 4.4% | |||
| Anhui Conch Cement Co. Ltd. (H Shares) | 101,000 | 279,993 | |
| BBMG Corp. (H Shares) | 1,020,000 | 373,513 | |
| China Life Insurance Co. Ltd. (H Shares) | 242,034 | 599,212 | |
| China Longyuan Power Grid Corp. Ltd. (H Shares) | 293,360 | 224,307 | |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | 183,306 | 662,975 | |
| China Petroleum & Chemical Corp. (H Shares) | 406,000 | 293,620 | |
| China Shenhua Energy Co. Ltd. (H Shares) | 157,000 | 326,731 | |
| China Suntien Green Energy Corp. Ltd. (H Shares) | 169,000 | 22,662 | |
| China Telecom Corp. Ltd. (H Shares) | 568,449 | 293,916 | |
| Industrial & Commercial Bank of China Ltd. (H Shares) | 2,320,660 | 1,392,952 | |
| Inner Mongoli Yili Industries Co. Ltd. (A Shares) | 80,871 | 214,716 | |
| Kweichow Moutai Co. Ltd. (A Shares) | 6,850 | 321,432 | |
| Maanshan Iron & Steel Ltd. (H Shares) (b) | 470,000 | 107,265 | |
| PICC Property & Casualty Co. Ltd. (H Shares) | 230,580 | 373,421 | |
| Qingdao Haier Co. Ltd. | 372,782 | 549,066 | |
| Shanghai International Airport Co. Ltd. (A Shares) | 53,866 | 215,518 | |
| Tsingtao Brewery Co. Ltd. (H Shares) | 68,000 | 271,805 | |
| Zhengzhou Yutong Bus Co. Ltd. | 77,591 | 246,773 | |
| TOTAL CHINA | 6,769,877 | ||
| Colombia - 0.2% | |||
| Bancolombia SA sponsored ADR | 7,555 | 289,205 | |
| Czech Republic - 0.2% | |||
| MONETA Money Bank A/S | 72,400 | 252,465 | |
| Egypt - 0.2% | |||
| Commercial International Bank SAE sponsored GDR | 33,800 | 149,396 | |
| Global Telecom Holding GDR (b) | 42,760 | 87,658 | |
| Qalaa Holdings SAE (b) | 254,000 | 20,309 | |
| TOTAL EGYPT | 257,363 | ||
| Greece - 0.2% | |||
| Titan Cement Co. SA (Reg.) | 16,100 | 374,154 | |
| Hong Kong - 3.6% | |||
| AIA Group Ltd. | 71,020 | 448,250 | |
| China Mobile Ltd. | 35,590 | 407,733 | |
| China Mobile Ltd. sponsored ADR | 23,950 | 1,375,449 | |
| China Resources Beer Holdings Co. Ltd. | 364,666 | 775,830 | |
| China Resources Power Holdings Co. Ltd. | 128,949 | 219,140 | |
| CNOOC Ltd. | 851,000 | 1,070,791 | |
| Far East Horizon Ltd. | 794,980 | 725,733 | |
| Sinotruk Hong Kong Ltd. | 295,000 | 163,180 | |
| Techtronic Industries Co. Ltd. | 103,500 | 389,682 | |
| TOTAL HONG KONG | 5,575,788 | ||
| India - 5.9% | |||
| Adani Ports & Special Economic Zone | 99,786 | 459,247 | |
| Axis Bank Ltd. | 41,795 | 305,072 | |
| Bharti Infratel Ltd. | 43,303 | 224,385 | |
| Coal India Ltd. | 88,259 | 429,748 | |
| Dalmia Bharat Ltd. | 498 | 15,359 | |
| Edelweiss Financial Services Ltd. (b) | 112,822 | 206,344 | |
| Eicher Motors Ltd. | 863 | 310,758 | |
| Grasim Industries Ltd. | 5,504 | 79,824 | |
| Housing Development Finance Corp. Ltd. | 22,355 | 466,400 | |
| ICICI Bank Ltd. (b) | 49,400 | 205,577 | |
| ICICI Bank Ltd. sponsored ADR | 16,000 | 132,640 | |
| ITC Ltd. | 169,987 | 619,497 | |
| JK Cement Ltd. | 20,686 | 293,162 | |
| Larsen & Toubro Ltd. | 17,387 | 385,949 | |
| LIC Housing Finance Ltd. | 35,831 | 313,026 | |
| Lupin Ltd. | 29,196 | 651,429 | |
| Petronet LNG Ltd. | 49,936 | 291,057 | |
| Phoenix Mills Ltd. | 43,925 | 248,284 | |
| Power Grid Corp. of India Ltd. | 242,624 | 639,791 | |
| Reliance Industries Ltd. | 46,383 | 733,549 | |
| SREI Infrastructure Finance Ltd. (b) | 116,223 | 126,755 | |
| State Bank of India | 135,733 | 524,981 | |
| Sun Pharmaceutical Industries Ltd. | 64,182 | 715,277 | |
| Tata Consultancy Services Ltd. | 20,272 | 728,973 | |
| TOTAL INDIA | 9,107,084 | ||
| Indonesia - 1.0% | |||
| PT Astra International Tbk | 1,010,500 | 636,984 | |
| PT Bank Mandiri (Persero) Tbk | 297,850 | 262,361 | |
| PT Bank Rakyat Indonesia Tbk | 473,800 | 443,007 | |
| PT Kalbe Farma Tbk | 1,149,400 | 153,277 | |
| PT Link Net Tbk | 335,600 | 128,602 | |
| TOTAL INDONESIA | 1,624,231 | ||
| Israel - 0.3% | |||
| Bezeq The Israel Telecommunication Corp. Ltd. | 283,655 | 515,360 | |
| Japan - 1.2% | |||
| Alps Electric Co. Ltd. | 5,700 | 136,970 | |
| DeNA Co. Ltd. | 2,700 | 87,022 | |
| Nexon Co. Ltd. | 8,100 | 138,257 | |
| Nissha Printing Co. Ltd. (c) | 5,000 | 121,245 | |
| Rakuten, Inc. | 16,900 | 195,397 | |
| Sony Corp. | 5,900 | 185,958 | |
| Sumco Corp. | 21,800 | 229,080 | |
| Suzuki Motor Corp. | 21,800 | 775,379 | |
| TOTAL JAPAN | 1,869,308 | ||
| Korea (South) - 7.2% | |||
| AMOREPACIFIC Group, Inc. | 2,530 | 327,378 | |
| Daou Technology, Inc. | 16,275 | 294,550 | |
| Duk San Neolux Co. Ltd. (b) | 1,826 | 47,097 | |
| EO Technics Co. Ltd. | 867 | 47,756 | |
| Fila Korea Ltd. | 4,672 | 356,194 | |
| Hanon Systems | 22,770 | 213,017 | |
| Hyundai Fire & Marine Insurance Co. Ltd. | 9,138 | 282,428 | |
| Hyundai Glovis Co. Ltd. | 1,740 | 263,946 | |
| Hyundai Industrial Development & Construction Co. | 5,165 | 219,018 | |
| Hyundai Mobis | 1,747 | 418,514 | |
| InterPark INT Corp. | 21,242 | 208,008 | |
| Kakao Corp. | 802 | 53,572 | |
| KB Financial Group, Inc. | 24,687 | 914,229 | |
| KEPCO Plant Service & Engineering Co. Ltd. | 3,362 | 161,375 | |
| Korea Electric Power Corp. | 9,318 | 403,277 | |
| Korea Express Co. Ltd. (b) | 722 | 126,882 | |
| Korean Reinsurance Co. | 42,922 | 442,822 | |
| KT Corp. | 3,684 | 103,970 | |
| KT Corp. sponsored ADR (c) | 1,510 | 24,145 | |
| LG Chemical Ltd. | 1,234 | 265,949 | |
| LG Display Co. Ltd. | 10,873 | 260,082 | |
| NCSOFT Corp. | 1,368 | 316,358 | |
| Samsung Electronics Co. Ltd. | 2,344 | 3,358,950 | |
| Samsung Fire & Marine Insurance Co. Ltd. | 554 | 141,194 | |
| Samsung SDI Co. Ltd. | 4,003 | 330,038 | |
| Shinhan Financial Group Co. Ltd. | 25,548 | 979,475 | |
| Shinhan Financial Group Co. Ltd. sponsored ADR | 200 | 7,728 | |
| SK Hynix, Inc. | 7,456 | 267,274 | |
| SK Telecom Co. Ltd. | 64 | 12,551 | |
| SK Telecom Co. Ltd. sponsored ADR | 10,484 | 229,075 | |
| Viatron Technologies, Inc. | 3,962 | 69,800 | |
| TOTAL KOREA (SOUTH) | 11,146,652 | ||
| Mauritius - 0.1% | |||
| MakeMyTrip Ltd. (b) | 8,000 | 227,200 | |
| Mexico - 3.2% | |||
| America Movil S.A.B. de CV Series L sponsored ADR | 19,573 | 257,189 | |
| Banregio Grupo Financiero S.A.B. de CV | 18,580 | 121,737 | |
| CEMEX S.A.B. de CV sponsored ADR | 48,188 | 418,272 | |
| El Puerto de Liverpool S.A.B. de CV Class C | 36,200 | 379,448 | |
| Fibra Uno Administracion SA de CV | 224,360 | 428,161 | |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 35,700 | 345,063 | |
| Grupo Comercial Chedraui S.A.B. de CV | 87,376 | 194,898 | |
| Grupo Financiero Banorte S.A.B. de CV Series O | 218,369 | 1,285,998 | |
| Infraestructura Energetica Nova S.A.B. de CV | 64,000 | 283,346 | |
| Macquarie Mexican (REIT) | 477,270 | 601,227 | |
| Promotora y Operadora de Infraestructura S.A.B. de CV | 20,300 | 226,940 | |
| Wal-Mart de Mexico SA de CV Series V | 185,500 | 392,474 | |
| TOTAL MEXICO | 4,934,753 | ||
| Netherlands - 0.6% | |||
| Altice NV Class B (b) | 7,414 | 137,992 | |
| Cnova NV (b) | 8,050 | 43,148 | |
| Hangzhou Hikvision Digital Technology Co. Ltd. ELS (BNP Paribas Warrant Program) warrants 9/29/17 (b)(d) | 66,550 | 241,025 | |
| Yandex NV Series A (b) | 23,067 | 454,189 | |
| TOTAL NETHERLANDS | 876,354 | ||
| Nigeria - 0.2% | |||
| Guaranty Trust Bank PLC | 338,721 | 25,250 | |
| Guaranty Trust Bank PLC GDR (Reg. S) | 23,480 | 93,450 | |
| Transnational Corp. of Nigeria PLC (b) | 6,036,239 | 17,424 | |
| Zenith Bank PLC | 2,567,575 | 119,725 | |
| TOTAL NIGERIA | 255,849 | ||
| Pakistan - 0.3% | |||
| Habib Bank Ltd. | 201,900 | 430,926 | |
| Panama - 0.2% | |||
| Copa Holdings SA Class A | 3,249 | 299,655 | |
| Philippines - 0.6% | |||
| Alliance Global Group, Inc. | 556,620 | 163,896 | |
| Metropolitan Bank & Trust Co. | 231,781 | 389,097 | |
| Robinsons Land Corp. | 576,880 | 368,669 | |
| TOTAL PHILIPPINES | 921,662 | ||
| Romania - 0.1% | |||
| Banca Transilvania SA | 257,042 | 144,972 | |
| Russia - 3.6% | |||
| Lukoil PJSC sponsored ADR | 20,900 | 1,018,875 | |
| Magnit OJSC GDR (Reg. S) | 18,900 | 750,141 | |
| MegaFon PJSC (b) | 11,400 | 108,244 | |
| MegaFon PJSC GDR | 6,440 | 61,373 | |
| MMC Norilsk Nickel PJSC sponsored ADR | 36,900 | 556,452 | |
| Mobile TeleSystems OJSC (b) | 57,492 | 202,835 | |
| Mobile TeleSystems OJSC sponsored ADR | 4,100 | 31,611 | |
| NOVATEK OAO GDR (Reg. S) | 5,700 | 609,330 | |
| Rosneft Oil Co. OJSC (b) | 80,100 | 439,215 | |
| Sberbank of Russia (b) | 207,580 | 483,173 | |
| Sberbank of Russia sponsored ADR | 89,384 | 848,254 | |
| Sistema JSFC (b) | 435,400 | 132,369 | |
| Sistema JSFC sponsored GDR | 5,060 | 37,798 | |
| Unipro PJSC (b) | 4,893,700 | 225,229 | |
| TOTAL RUSSIA | 5,504,899 | ||
| Singapore - 0.4% | |||
| Ascendas Real Estate Investment Trust | 246,210 | 419,420 | |
| First Resources Ltd. | 205,700 | 269,092 | |
| TOTAL SINGAPORE | 688,512 | ||
| South Africa - 4.9% | |||
| Alexander Forbes Group Holdings Ltd. | 319,715 | 145,112 | |
| Aspen Pharmacare Holdings Ltd. | 16,476 | 358,913 | |
| Barclays Africa Group Ltd. | 31,667 | 367,216 | |
| Bidcorp Ltd. | 15,756 | 277,815 | |
| Bidvest Group Ltd. | 24,756 | 307,363 | |
| Imperial Holdings Ltd. | 48,800 | 616,417 | |
| JSE Ltd. | 12,510 | 145,913 | |
| Life Healthcare Group Holdings Ltd. | 110,900 | 296,090 | |
| Naspers Ltd. Class N | 21,981 | 3,684,054 | |
| Nedbank Group Ltd. | 15,180 | 248,239 | |
| Sasol Ltd. | 5,300 | 146,359 | |
| Shoprite Holdings Ltd. | 45,400 | 670,036 | |
| Telkom SA Ltd. | 55,402 | 255,608 | |
| TOTAL SOUTH AFRICA | 7,519,135 | ||
| Spain - 0.3% | |||
| Banco Bilbao Vizcaya Argentaria SA | 62,826 | 452,265 | |
| Taiwan - 5.3% | |||
| Advantech Co. Ltd. | 52,000 | 423,870 | |
| Boardtek Electronics Corp. | 71,000 | 70,485 | |
| Chroma ATE, Inc. | 46,000 | 116,866 | |
| E.SUN Financial Holdings Co. Ltd. | 471,200 | 268,266 | |
| eMemory Technology, Inc. | 9,000 | 95,628 | |
| Hermes Microvision, Inc. | 3,000 | 132,737 | |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | 89,000 | 240,788 | |
| HTC Corp. (b) | 16,000 | 46,891 | |
| King's Town Bank | 99,600 | 81,661 | |
| Largan Precision Co. Ltd. | 5,833 | 691,002 | |
| MediaTek, Inc. | 45,000 | 342,547 | |
| Taiwan Cement Corp. | 431,000 | 517,416 | |
| Taiwan Fertilizer Co. Ltd. | 64,000 | 85,865 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 701,000 | 4,210,824 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 3,142 | 97,716 | |
| Universal Cement Corp. | 164,320 | 127,950 | |
| Vanguard International Semiconductor Corp. | 76,000 | 155,237 | |
| Wistron NeWeb Corp. | 38,780 | 108,117 | |
| Yuanta Financial Holding Co. Ltd. | 947,231 | 354,515 | |
| TOTAL TAIWAN | 8,168,381 | ||
| Thailand - 1.3% | |||
| Jasmine Broadband Internet Infrastructure Fund | 460,890 | 159,166 | |
| Kasikornbank PCL (For. Reg.) | 138,080 | 677,838 | |
| PTT Global Chemical PCL (For. Reg.) | 212,900 | 364,581 | |
| PTT PCL (For. Reg.) | 49,600 | 489,807 | |
| Star Petroleum Refining PCL | 488,700 | 175,744 | |
| Thai Union Frozen Products PCL (For. Reg.) | 135,100 | 83,672 | |
| TOTAL THAILAND | 1,950,808 | ||
| Turkey - 0.9% | |||
| Aselsan A/S | 56,000 | 170,122 | |
| Bim Birlesik Magazalar A/S JSC | 25,000 | 407,207 | |
| Enka Insaat ve Sanayi A/S | 93,550 | 142,702 | |
| Tupras Turkiye Petrol Rafinelleri A/S | 21,600 | 440,133 | |
| Turkiye Garanti Bankasi A/S | 94,074 | 255,688 | |
| TOTAL TURKEY | 1,415,852 | ||
| United Arab Emirates - 0.7% | |||
| DP World Ltd. | 15,732 | 282,389 | |
| Emaar Properties PJSC | 226,223 | 429,294 | |
| First Gulf Bank PJSC | 121,994 | 381,963 | |
| TOTAL UNITED ARAB EMIRATES | 1,093,646 | ||
| United Kingdom - 0.2% | |||
| Fresnillo PLC | 13,000 | 260,957 | |
| United States of America - 0.3% | |||
| Cognizant Technology Solutions Corp. Class A (b) | 4,620 | 237,237 | |
| First Cash Financial Services, Inc. | 3,849 | 181,673 | |
| TOTAL UNITED STATES OF AMERICA | 418,910 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $84,223,469) | 91,871,903 | ||
| Nonconvertible Preferred Stocks - 4.7% | |||
| Brazil - 3.9% | |||
| Ambev SA sponsored ADR | 209,900 | 1,238,410 | |
| Banco do Estado Rio Grande do Sul SA | 53,120 | 226,326 | |
| Companhia Paranaense de Energia-Copel: | |||
| (PN-B) | 915 | 10,477 | |
| (PN-B) sponsored ADR | 32,552 | 371,418 | |
| Itau Unibanco Holding SA sponsored ADR | 140,541 | 1,676,654 | |
| Metalurgica Gerdau SA (PN) (b) | 245,970 | 366,027 | |
| Petroleo Brasileiro SA - Petrobras (PN) sponsored (non-vtg.) (b) | 90,206 | 997,678 | |
| Telefonica Brasil SA | 25,777 | 372,927 | |
| Vale SA (PN-A) sponsored ADR | 123,700 | 796,628 | |
| TOTAL BRAZIL | 6,056,545 | ||
| Korea (South) - 0.8% | |||
| Hyundai Motor Co. Series 2 | 3,990 | 350,595 | |
| Samsung Electronics Co. Ltd. | 579 | 666,701 | |
| Samsung Fire & Marine Insurance Co. Ltd. | 1,254 | 207,217 | |
| TOTAL KOREA (SOUTH) | 1,224,513 | ||
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $5,919,510) | 7,281,058 | ||
| Principal Amount(e) | Value | ||
| Nonconvertible Bonds - 9.8% | |||
| Azerbaijan - 0.7% | |||
| International Bank of Azerbaijan OJSC 5.625% 6/11/19 (Reg. S) | 200,000 | 199,264 | |
| Southern Gas Corridor CJSC 6.875% 3/24/26 (d) | 525,000 | 592,242 | |
| State Oil Co. of Azerbaijan Republic 6.95% 3/18/30 (Reg. S) | 275,000 | 298,210 | |
| TOTAL AZERBAIJAN | 1,089,716 | ||
| Canada - 0.2% | |||
| First Quantum Minerals Ltd. 7% 2/15/21 (d) | 250,000 | 237,344 | |
| Pacific Exploration and Production Corp. 12% 12/22/16 | 18,000 | 18,126 | |
| Pacific Rubiales Energy Corp. 5.125% 3/28/23 (d)(f) | 100,000 | 20,000 | |
| TOTAL CANADA | 275,470 | ||
| Cayman Islands - 0.1% | |||
| Odebrecht Finance Ltd. 4.375% 4/25/25 (d) | 400,000 | 191,500 | |
| Georgia - 0.4% | |||
| Georgian Oil & Gas Corp. 6.75% 4/26/21 (d) | 250,000 | 262,238 | |
| JSC BGEO Group 6% 7/26/23 (d) | 200,000 | 205,108 | |
| JSC Georgian Railway 7.75% 7/11/22 (d) | 200,000 | 223,000 | |
| TOTAL GEORGIA | 690,346 | ||
| Indonesia - 1.1% | |||
| PT Pertamina Persero: | |||
| 4.875% 5/3/22 (d) | 275,000 | 293,455 | |
| 5.625% 5/20/43 (d) | 200,000 | 200,617 | |
| 6% 5/3/42 (d) | 400,000 | 421,750 | |
| 6.5% 5/27/41 (d) | 700,000 | 786,152 | |
| TOTAL INDONESIA | 1,701,974 | ||
| Ireland - 0.4% | |||
| Vnesheconombank Via VEB Finance PLC: | |||
| 6.8% 11/22/25 (d) | 425,000 | 454,750 | |
| 6.902% 7/9/20 (d) | 200,000 | 215,500 | |
| TOTAL IRELAND | 670,250 | ||
| Kazakhstan - 0.8% | |||
| Kazagro National Management Holding JSC 4.625% 5/24/23 (d) | 400,000 | 374,000 | |
| KazMunaiGaz Finance Sub BV: | |||
| 6.375% 4/9/21 (d) | 250,000 | 274,724 | |
| 7% 5/5/20 (d) | 200,000 | 221,746 | |
| 9.125% 7/2/18 (d) | 300,000 | 328,961 | |
| TOTAL KAZAKHSTAN | 1,199,431 | ||
| Luxembourg - 0.5% | |||
| Petrobras International Finance Co. Ltd. 8.375% 12/10/18 | 300,000 | 324,540 | |
| RSHB Capital SA 5.1% 7/25/18 (d) | 400,000 | 410,000 | |
| TOTAL LUXEMBOURG | 734,540 | ||
| Mexico - 1.8% | |||
| Comision Federal de Electricid 4.75% 2/23/27 (d) | 200,000 | 203,220 | |
| Pemex Project Funding Master Trust 6.625% 6/15/35 | 825,000 | 830,363 | |
| Petroleos Mexicanos: | |||
| 5.5% 6/27/44 | 650,000 | 559,910 | |
| 6.375% 2/4/21 (d) | 150,000 | 164,100 | |
| 6.375% 1/23/45 | 20,000 | 19,010 | |
| 6.5% 6/2/41 | 750,000 | 729,000 | |
| 6.625% (d)(g) | 95,000 | 91,787 | |
| 6.75% 9/21/47 (d) | 200,000 | 198,250 | |
| TOTAL MEXICO | 2,795,640 | ||
| Netherlands - 1.4% | |||
| Petrobras Global Finance BV: | |||
| 6.85% 6/5/2115 | 965,000 | 820,250 | |
| 7.25% 3/17/44 | 205,000 | 188,600 | |
| 8.375% 5/23/21 | 325,000 | 359,548 | |
| 8.75% 5/23/26 | 675,000 | 760,388 | |
| TOTAL NETHERLANDS | 2,128,786 | ||
| South Africa - 0.2% | |||
| Eskom Holdings SOC Ltd. 6.75% 8/6/23 (d) | 300,000 | 309,561 | |
| Trinidad & Tobago - 0.4% | |||
| Petroleum Co. of Trinidad & Tobago Ltd.: | |||
| 6% 5/8/22 (d) | 342,500 | 341,216 | |
| 9.75% 8/14/19 (d) | 300,000 | 332,112 | |
| TOTAL TRINIDAD & TOBAGO | 673,328 | ||
| Turkey - 0.1% | |||
| Turkiye Ihracat Kredi Bankasi A/S 5.375% 10/24/23 (d) | 200,000 | 199,940 | |
| United Arab Emirates - 0.2% | |||
| DP World Ltd. 6.85% 7/2/37 (Reg. S) | 200,000 | 227,831 | |
| United Kingdom - 0.5% | |||
| Biz Finance PLC 9.625% 4/27/22 (d) | 750,000 | 739,545 | |
| Venezuela - 1.0% | |||
| Petroleos de Venezuela SA: | |||
| 5.25% 4/12/17 | 300,000 | 241,500 | |
| 5.5% 4/12/37 | 500,000 | 183,250 | |
| 6% 11/15/26 (Reg. S) | 1,200,000 | 445,764 | |
| 8.5% 11/2/17 (d) | 83,333 | 60,625 | |
| 9% 11/17/21 (Reg. S) | 550,000 | 272,250 | |
| 12.75% 2/17/22 (d) | 600,000 | 355,500 | |
| TOTAL VENEZUELA | 1,558,889 | ||
| TOTAL NONCONVERTIBLE BONDS | |||
| (Cost $15,029,072) | 15,186,747 | ||
| Government Obligations - 17.0% | |||
| Angola - 0.3% | |||
| Angola Republic 9.5% 11/12/25 (d) | 550,000 | 538,148 | |
| Argentina - 1.2% | |||
| Argentine Republic: | |||
| 6.25% 4/22/19 (d) | 345,000 | 365,700 | |
| 6.875% 4/22/21 (d) | 320,000 | 346,240 | |
| 7% 4/17/17 | 140,000 | 142,563 | |
| 7.125% 7/6/36 (d) | 150,000 | 154,650 | |
| 7.5% 4/22/26 (d) | 385,000 | 420,613 | |
| 8.28% 12/31/33 | 315,459 | 353,787 | |
| TOTAL ARGENTINA | 1,783,553 | ||
| Armenia - 0.5% | |||
| Republic of Armenia: | |||
| 6% 9/30/20 (d) | 325,000 | 335,969 | |
| 7.15% 3/26/25 (d) | 400,000 | 422,000 | |
| TOTAL ARMENIA | 757,969 | ||
| Bahrain - 0.1% | |||
| Bahrain Kingdom 6% 9/19/44 (Reg. S) | 200,000 | 169,000 | |
| Barbados - 0.2% | |||
| Barbados Government 7% 8/4/22 (d) | 250,000 | 247,188 | |
| Belarus - 0.3% | |||
| Belarus Republic 8.95% 1/26/18 | 400,000 | 419,834 | |
| Brazil - 0.7% | |||
| Brazilian Federative Republic: | |||
| 5% 1/27/45 | 200,000 | 176,500 | |
| 5.625% 2/21/47 | 200,000 | 191,500 | |
| 8.25% 1/20/34 | 500,000 | 627,500 | |
| 12.25% 3/6/30 | 100,000 | 165,750 | |
| TOTAL BRAZIL | 1,161,250 | ||
| Cameroon - 0.3% | |||
| Cameroon Republic 9.5% 11/19/25 (d) | 400,000 | 445,128 | |
| Colombia - 0.3% | |||
| Colombian Republic: | |||
| 6.125% 1/18/41 | 100,000 | 114,250 | |
| 7.375% 9/18/37 | 250,000 | 320,000 | |
| TOTAL COLOMBIA | 434,250 | ||
| Congo - 0.1% | |||
| Congo Republic 4% 6/30/29 (h) | 241,015 | 163,514 | |
| Costa Rica - 0.4% | |||
| Costa Rican Republic: | |||
| 4.375% 4/30/25 (d) | 225,000 | 214,139 | |
| 7.158% 3/12/45 (d) | 400,000 | 418,000 | |
| TOTAL COSTA RICA | 632,139 | ||
| Croatia - 0.5% | |||
| Croatia Republic 6% 1/26/24 (d) | 650,000 | 733,525 | |
| Dominican Republic - 0.3% | |||
| Dominican Republic 6.6% 1/28/24 (d) | 375,000 | 406,875 | |
| Ecuador - 0.3% | |||
| Ecuador Republic: | |||
| 7.95% 6/20/24 (d) | 200,000 | 188,500 | |
| 10.75% 3/28/22 (d) | 200,000 | 211,500 | |
| TOTAL ECUADOR | 400,000 | ||
| El Salvador - 0.3% | |||
| El Salvador Republic 7.625% 2/1/41 (d) | 450,000 | 462,938 | |
| Ethiopia - 0.1% | |||
| Federal Democratic Republic of Ethiopia 6.625% 12/11/24 (d) | 200,000 | 188,750 | |
| Gabon - 0.4% | |||
| Gabonese Republic: | |||
| 6.375% 12/12/24 (d) | 200,000 | 183,356 | |
| 6.95% 6/16/25 (d) | 550,000 | 507,304 | |
| TOTAL GABON | 690,660 | ||
| Ghana - 0.7% | |||
| Ghana Republic: | |||
| 7.875% 8/7/23 (Reg.S) | 400,000 | 382,864 | |
| 9.25% 9/15/22 (d) | 200,000 | 207,322 | |
| 10.75% 10/14/30 (d) | 400,000 | 470,920 | |
| TOTAL GHANA | 1,061,106 | ||
| Indonesia - 0.2% | |||
| Indonesian Republic 8.5% 10/12/35 (d) | 200,000 | 295,857 | |
| Iraq - 0.3% | |||
| Republic of Iraq 5.8% 1/15/28 (Reg. S) | 500,000 | 401,863 | |
| Ivory Coast - 0.3% | |||
| Ivory Coast 5.375% 7/23/24 (d) | 400,000 | 403,500 | |
| Jamaica - 0.1% | |||
| Jamaican Government 8% 3/15/39 | 200,000 | 232,972 | |
| Jordan - 0.3% | |||
| Jordanian Kingdom: | |||
| 5.75% 1/31/27 (d) | 200,000 | 199,020 | |
| 6.125% 1/29/26 (d) | 200,000 | 209,000 | |
| TOTAL JORDAN | 408,020 | ||
| Kenya - 0.5% | |||
| Republic of Kenya 6.875% 6/24/24 (d) | 700,000 | 698,250 | |
| Lebanon - 1.3% | |||
| Lebanese Republic: | |||
| 4% 12/31/17 | 295,500 | 290,329 | |
| 5.15% 6/12/18 | 200,000 | 198,290 | |
| 5.15% 11/12/18 | 100,000 | 98,548 | |
| 5.45% 11/28/19 | 700,000 | 689,612 | |
| 6% 5/20/19 | 225,000 | 222,813 | |
| 6.1% 10/4/22 | 300,000 | 293,820 | |
| 6.375% 3/9/20 | 275,000 | 275,688 | |
| TOTAL LEBANON | 2,069,100 | ||
| Mexico - 0.3% | |||
| United Mexican States 10% 12/5/24 | MXN | 6,500,000 | 427,677 |
| Mongolia - 0.2% | |||
| Mongolian People's Republic: | |||
| 4.125% 1/5/18 (Reg. S) | 200,000 | 192,000 | |
| 5.125% 12/5/22 (Reg. S) | 200,000 | 176,512 | |
| TOTAL MONGOLIA | 368,512 | ||
| Netherlands - 0.1% | |||
| Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S) | 187,500 | 187,337 | |
| Oman - 0.3% | |||
| Sultanate of Oman 4.75% 6/15/26 (d) | 400,000 | 403,000 | |
| Pakistan - 0.1% | |||
| Islamic Republic of Pakistan 7.25% 4/15/19 (d) | 200,000 | 211,999 | |
| Qatar - 0.3% | |||
| State of Qatar 9.75% 6/15/30 (Reg. S) | 275,000 | 449,969 | |
| Russia - 0.8% | |||
| Ministry of Finance Russian Federation 4.75% 5/27/26 (d) | 200,000 | 211,676 | |
| Russian Federation: | |||
| 5.625% 4/4/42 (d) | 200,000 | 220,720 | |
| 12.75% 6/24/28 (Reg. S) | 425,000 | 743,478 | |
| TOTAL RUSSIA | 1,175,874 | ||
| Rwanda - 0.3% | |||
| Republic of Rwanda 6.625% 5/2/23 (d) | 425,000 | 425,072 | |
| Saudi Arabia - 0.8% | |||
| Saudi Arabia Kingdom of: | |||
| 2.375% 10/26/21 (d) | 415,000 | 413,963 | |
| 4.5% 10/26/46 (d) | 760,000 | 747,650 | |
| TOTAL SAUDI ARABIA | 1,161,613 | ||
| Senegal - 0.1% | |||
| Republic of Senegal 8.75% 5/13/21 (d) | 200,000 | 225,808 | |
| South Africa - 0.1% | |||
| South African Republic 5.875% 9/16/25 | 200,000 | 224,376 | |
| Sri Lanka - 0.1% | |||
| Democratic Socialist Republic of Sri Lanka 5.125% 4/11/19 (d) | 200,000 | 202,634 | |
| Suriname - 0.3% | |||
| Republic of Suriname 9.25% 10/26/26 (d) | 500,000 | 522,570 | |
| Tanzania - 0.1% | |||
| United Republic of Tanzania 7.2501% 3/9/20 (i) | 155,556 | 162,036 | |
| Turkey - 1.1% | |||
| Turkish Republic: | |||
| 4.875% 10/9/26 | 400,000 | 398,800 | |
| 6.25% 9/26/22 | 400,000 | 435,115 | |
| 6.875% 3/17/36 | 250,000 | 284,225 | |
| 7% 6/5/20 | 250,000 | 274,781 | |
| 7.375% 2/5/25 | 100,000 | 117,128 | |
| 11.875% 1/15/30 | 165,000 | 268,551 | |
| TOTAL TURKEY | 1,778,600 | ||
| Ukraine - 0.7% | |||
| Ukraine Government: | |||
| 0% 5/31/40 (d)(i) | 430,000 | 135,910 | |
| 7.75% 9/1/19 (d) | 700,000 | 697,900 | |
| 7.75% 9/1/20 (d) | 200,000 | 198,210 | |
| TOTAL UKRAINE | 1,032,020 | ||
| United States of America - 0.2% | |||
| U.S. Treasury Bills, yield at date of purchase 0.26% to 0.33% 12/29/16 to 1/19/17 (j) | 310,000 | 309,850 | |
| Venezuela - 0.6% | |||
| Venezuelan Republic: | |||
| 7% 3/31/38 | 650,000 | 272,025 | |
| 9% 5/7/23 (Reg. S) | 300,000 | 137,700 | |
| 9.25% 9/15/27 | 650,000 | 325,650 | |
| 12.75% 8/23/22 | 325,000 | 188,013 | |
| TOTAL VENEZUELA | 923,388 | ||
| Vietnam - 0.2% | |||
| Vietnamese Socialist Republic 4.8% 11/19/24 (d) | 300,000 | 317,226 | |
| Zambia - 0.3% | |||
| Republic of Zambia 8.97% 7/30/27 (d) | 550,000 | 539,242 | |
| TOTAL GOVERNMENT OBLIGATIONS | |||
| (Cost $26,000,847) | 26,254,192 | ||
| Preferred Securities - 0.1% | |||
| Colombia - 0.1% | |||
| Colombia Telecomunicacines SA 8.5% (Cost $90,831)(d)(g)(i) | 100,000 | 89,351 | |
| Shares | Value | ||
| Money Market Funds - 8.7% | |||
| Fidelity Cash Central Fund, 0.41% (k) | 13,281,356 | 13,285,341 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (a)(k) | 102,965 | 102,985 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $13,385,612) | 13,388,326 | ||
| TOTAL INVESTMENT PORTFOLIO - 99.8% | |||
| (Cost $144,649,341) | 154,071,577 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.2% | 294,649 | ||
| NET ASSETS - 100% | $154,366,226 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||
| Equity Index Contracts | |||
| 139 ICE E-mini MSCI Emerging Markets Index Contracts (United States) | Dec. 2016 | 6,279,325 | $14,320 |
The face value of futures purchased as a percentage of Net Assets is 4.1%
Currency Abbreviations
MXN – Mexican peso
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Investment made with cash collateral received from securities on loan.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) 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 $23,787,291 or 15.4% of net assets.
(e) Amount is stated in United States dollars unless otherwise noted.
(f) Non-income producing - Security is in default.
(g) Security is perpetual in nature with no stated maturity date.
(h) 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.
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(j) 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 $309,850.
(k) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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 | $20,813 |
| Fidelity Securities Lending Cash Central Fund | 552 |
| Total | $21,365 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $12,844,666 | $12,658,708 | $185,958 | $-- |
| Consumer Staples | 8,126,805 | 8,126,805 | -- | -- |
| Energy | 7,929,296 | 6,405,134 | 1,510,770 | 13,392 |
| Financials | 22,693,716 | 18,142,922 | 4,550,794 | -- |
| Health Care | 2,534,860 | 2,534,860 | -- | -- |
| Industrials | 5,648,943 | 5,648,943 | -- | -- |
| Information Technology | 22,602,647 | 14,549,950 | 8,052,697 | -- |
| Materials | 6,078,478 | 5,998,654 | 79,824 | -- |
| Real Estate | 2,584,659 | 2,584,659 | -- | -- |
| Telecommunication Services | 5,180,922 | 4,453,833 | 727,089 | -- |
| Utilities | 2,927,969 | 2,524,692 | 403,277 | -- |
| Corporate Bonds | 15,186,747 | -- | 15,186,747 | -- |
| Government Obligations | 26,254,192 | -- | 26,254,192 | -- |
| Preferred Securities | 89,351 | -- | 89,351 | -- |
| Money Market Funds | 13,388,326 | 13,388,326 | -- | -- |
| Total Investments in Securities: | $154,071,577 | $97,017,486 | $57,040,699 | $13,392 |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $14,320 | $14,320 | $-- | $-- |
| Total Assets | $14,320 | $14,320 | $-- | $-- |
| Total Derivative Instruments: | $14,320 | $14,320 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $8,620,896 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $14,320 | $0 |
| Total Equity Risk | 14,320 | 0 |
| Total Value of Derivatives | $14,320 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
| AAA,AA,A | 1.4% |
| BBB | 4.6% |
| BB | 6.2% |
| B | 10.1% |
| CCC,CC,C | 3.0% |
| D | 0.2% |
| Not Rated | 1.2% |
| Equities | 64.2% |
| Short-Term Investments and Net Other Assets | 9.1% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $98,796) — See accompanying schedule: Unaffiliated issuers (cost $131,263,729) | $140,683,251 | |
| Fidelity Central Funds (cost $13,385,612) | 13,388,326 | |
| Total Investments (cost $144,649,341) | $154,071,577 | |
| Cash | 504,107 | |
| Foreign currency held at value (cost $26,075) | 26,123 | |
| Receivable for investments sold | 333,849 | |
| Receivable for fund shares sold | 1,817,689 | |
| Dividends receivable | 37,091 | |
| Interest receivable | 761,035 | |
| Distributions receivable from Fidelity Central Funds | 6,004 | |
| Receivable for daily variation margin for derivative instruments | 33,519 | |
| Prepaid expenses | 228 | |
| Receivable from investment adviser for expense reductions | 38,554 | |
| Other receivables | 33,552 | |
| Total assets | 157,663,328 | |
| Liabilities | ||
| Payable for investments purchased | $2,787,876 | |
| Payable for fund shares redeemed | 74,822 | |
| Accrued management fee | 96,197 | |
| Distribution and service plan fees payable | 12,809 | |
| Other affiliated payables | 32,703 | |
| Other payables and accrued expenses | 189,710 | |
| Collateral on securities loaned, at value | 102,985 | |
| Total liabilities | 3,297,102 | |
| Net Assets | $154,366,226 | |
| Net Assets consist of: | ||
| Paid in capital | $146,684,131 | |
| Undistributed net investment income | 1,743,575 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (3,431,665) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 9,370,185 | |
| Net Assets | $154,366,226 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($15,206,353 ÷ 1,342,253 shares) | $11.33 | |
| Maximum offering price per share (100/94.25 of $11.33) | $12.02 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($3,018,688 ÷ 266,492 shares) | $11.33 | |
| Maximum offering price per share (100/96.50 of $11.33) | $11.74 | |
| Class C: | ||
| Net Asset Value and offering price per share ($10,710,117 ÷ 951,755 shares)(a) | $11.25 | |
| Total Emerging Markets: | ||
| Net Asset Value, offering price and redemption price per share ($104,332,435 ÷ 9,199,032 shares) | $11.34 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($21,098,633 ÷ 1,862,005 shares) | $11.33 |
(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.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $1,314,668 | |
| Interest | 2,261,629 | |
| Income from Fidelity Central Funds | 21,365 | |
| Income before foreign taxes withheld | 3,597,662 | |
| Less foreign taxes withheld | (137,409) | |
| Total income | 3,460,253 | |
| Expenses | ||
| Management fee | $668,667 | |
| Transfer agent fees | 221,380 | |
| Distribution and service plan fees | 117,665 | |
| Accounting and security lending fees | 43,397 | |
| Custodian fees and expenses | 243,159 | |
| Independent trustees' fees and expenses | 330 | |
| Registration fees | 85,018 | |
| Audit | 99,650 | |
| Legal | 194 | |
| Miscellaneous | 665 | |
| Total expenses before reductions | 1,480,125 | |
| Expense reductions | (190,766) | 1,289,359 |
| Net investment income (loss) | 2,170,894 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (1,668,444) | |
| Fidelity Central Funds | 64 | |
| Foreign currency transactions | 30,414 | |
| Futures contracts | (113,130) | |
| Total net realized gain (loss) | (1,751,096) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $60,387) | 9,517,042 | |
| Assets and liabilities in foreign currencies | (824) | |
| Futures contracts | (7,798) | |
| Total change in net unrealized appreciation (depreciation) | 9,508,420 | |
| Net gain (loss) | 7,757,324 | |
| Net increase (decrease) in net assets resulting from operations | $9,928,218 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $2,170,894 | $1,845,806 |
| Net realized gain (loss) | (1,751,096) | (1,339,969) |
| Change in net unrealized appreciation (depreciation) | 9,508,420 | (7,213,595) |
| Net increase (decrease) in net assets resulting from operations | 9,928,218 | (6,707,758) |
| Distributions to shareholders from net investment income | (1,715,467) | (1,198,750) |
| Distributions to shareholders from net realized gain | – | (136,019) |
| Total distributions | (1,715,467) | (1,334,769) |
| Share transactions - net increase (decrease) | 80,624,262 | (6,024,786) |
| Redemption fees | 36,372 | 16,471 |
| Total increase (decrease) in net assets | 88,873,385 | (14,050,842) |
| Net Assets | ||
| Beginning of period | 65,492,841 | 79,543,683 |
| End of period | $154,366,226 | $65,492,841 |
| Other Information | ||
| Undistributed net investment income end of period | $1,743,575 | $1,546,081 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.35 | $11.56 | $11.37 | $10.86 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .26 | .28 | .18 | .18 | .20 |
| Net realized and unrealized gain (loss) | .96 | (1.30) | .19 | .48 | .68 |
| Total from investment operations | 1.22 | (1.02) | .37 | .66 | .88 |
| Distributions from net investment income | (.24) | (.17) | (.18) | (.15) | (.02) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.24) | (.19) | (.18) | (.16) | (.02) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.33 | $10.35 | $11.56 | $11.37 | $10.86 |
| Total ReturnD,E | 12.13% | (8.92)% | 3.30% | 6.23% | 8.80% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.87% | 1.93% | 1.98% | 1.89% | 1.87% |
| Expenses net of fee waivers, if any | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
| Expenses net of all reductions | 1.64% | 1.64% | 1.65% | 1.62% | 1.62% |
| Net investment income (loss) | 2.47% | 2.58% | 1.61% | 1.61% | 1.92% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $15,206 | $10,164 | $13,627 | $18,837 | $7,675 |
| Portfolio turnover rateH | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.33 | $11.54 | $11.34 | $10.84 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .23 | .25 | .15 | .15 | .17 |
| Net realized and unrealized gain (loss) | .97 | (1.30) | .19 | .48 | .68 |
| Total from investment operations | 1.20 | (1.05) | .34 | .63 | .85 |
| Distributions from net investment income | (.20) | (.14) | (.14) | (.12) | (.01) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.20) | (.16) | (.14) | (.14)C | (.01) |
| Redemption fees added to paid in capitalB | –D | –D | –D | .01 | –D |
| Net asset value, end of period | $11.33 | $10.33 | $11.54 | $11.34 | $10.84 |
| Total ReturnE,F | 11.92% | (9.18)% | 3.04% | 5.93% | 8.56% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.22% | 2.27% | 2.32% | 2.13% | 2.10% |
| Expenses net of fee waivers, if any | 1.90% | 1.90% | 1.90% | 1.90% | 1.90% |
| Expenses net of all reductions | 1.90% | 1.89% | 1.90% | 1.88% | 1.87% |
| Net investment income (loss) | 2.22% | 2.33% | 1.36% | 1.36% | 1.67% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $3,019 | $3,331 | $5,277 | $5,967 | $5,823 |
| Portfolio turnover rateI | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C 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.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.25 | $11.47 | $11.29 | $10.80 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .18 | .20 | .10 | .09 | .12 |
| Net realized and unrealized gain (loss) | .97 | (1.30) | .19 | .47 | .69 |
| Total from investment operations | 1.15 | (1.10) | .29 | .56 | .81 |
| Distributions from net investment income | (.15) | (.10) | (.11) | (.07) | (.01) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.15) | (.12) | (.11) | (.08) | (.01) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.25 | $10.25 | $11.47 | $11.29 | $10.80 |
| Total ReturnD,E | 11.36% | (9.68)% | 2.56% | 5.31% | 8.07% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 2.62% | 2.68% | 2.72% | 2.65% | 2.63% |
| Expenses net of fee waivers, if any | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% |
| Expenses net of all reductions | 2.39% | 2.39% | 2.40% | 2.37% | 2.37% |
| Net investment income (loss) | 1.72% | 1.83% | .86% | .86% | 1.17% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $10,710 | $7,736 | $10,104 | $7,436 | $5,824 |
| Portfolio turnover rateH | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 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.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.38 | $11.60 | $11.40 | $10.89 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .28 | .31 | .21 | .21 | .22 |
| Net realized and unrealized gain (loss) | .97 | (1.31) | .19 | .47 | .69 |
| Total from investment operations | 1.25 | (1.00) | .40 | .68 | .91 |
| Distributions from net investment income | (.29) | (.20) | (.20) | (.17) | (.02) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.29) | (.22) | (.20) | (.18) | (.02) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.34 | $10.38 | $11.60 | $11.40 | $10.89 |
| Total ReturnD | 12.44% | (8.74)% | 3.56% | 6.44% | 9.15% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.62% | 1.72% | 1.73% | 1.56% | 1.60% |
| Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
| Expenses net of all reductions | 1.39% | 1.39% | 1.40% | 1.38% | 1.38% |
| Net investment income (loss) | 2.72% | 2.83% | 1.86% | 1.85% | 2.16% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $104,332 | $37,918 | $45,763 | $49,959 | $81,416 |
| Portfolio turnover rateG | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Total Emerging Markets Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.37 | $11.59 | $11.40 | $10.89 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .29 | .31 | .21 | .20 | .22 |
| Net realized and unrealized gain (loss) | .96 | (1.31) | .18 | .48 | .69 |
| Total from investment operations | 1.25 | (1.00) | .39 | .68 | .91 |
| Distributions from net investment income | (.29) | (.20) | (.20) | (.17) | (.02) |
| Distributions from net realized gain | – | (.02) | – | (.01) | – |
| Total distributions | (.29) | (.22) | (.20) | (.18) | (.02) |
| Redemption fees added to paid in capitalB | –C | –C | –C | .01 | –C |
| Net asset value, end of period | $11.33 | $10.37 | $11.59 | $11.40 | $10.89 |
| Total ReturnD | 12.48% | (8.74)% | 3.51% | 6.44% | 9.15% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.54% | 1.58% | 1.71% | 1.63% | 1.62% |
| Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
| Expenses net of all reductions | 1.39% | 1.39% | 1.40% | 1.37% | 1.37% |
| Net investment income (loss) | 2.72% | 2.83% | 1.86% | 1.86% | 2.17% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $21,099 | $6,343 | $4,773 | $5,354 | $2,287 |
| Portfolio turnover rateG | 57% | 80% | 102% | 120% | 70% |
A For the period November 1, 2011 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
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 Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. 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 .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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)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.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, foreign government and government agency obligations, preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. 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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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, futures contracts, certain foreign taxes, market discount, passive foreign investment companies (PFIC), defaulted bonds, 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 | $13,953,973 |
| Gross unrealized depreciation | (5,165,884) |
| Net unrealized appreciation (depreciation) on securities | $8,788,089 |
| Tax Cost | $145,283,488 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $1,519,860 |
| Capital loss carryforward | $(2,559,540) |
| Net unrealized appreciation (depreciation) on securities and other investments | $8,784,980 |
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 fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(2,076,801) |
| Long-term | (482,739) |
| Total capital loss carryforward | $(2,559,540) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $1,715,467 | $ 1,198,749 |
| Long-term Capital Gains | – | 136,020 |
| Total | $1,715,467 | $ 1,334,769 |
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. 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.
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. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.
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.
During the period the Fund recognized net realized gain (loss) of $(113,130) and a change in net unrealized appreciation (depreciation) of $(7,798) 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 $115,192,127 and $45,771,782, 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 annual 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $25,102 | $1,921 |
| Class T | .25% | .25% | 13,996 | 907 |
| Class C | .75% | .25% | 78,567 | 22,248 |
| $117,665 | $25,076 |
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 are1.00% 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 by FDC |
|
| Class A | $8,417 |
| Class T | 2,161 |
| Class C(a) | 513 |
| $11,091 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $25,414 | .25 |
| Class T | 9,517 | .34 |
| Class C | 19,923 | .25 |
| Total Emerging Markets | 150,558 | .27 |
| Class I | 15,968 | .19 |
| $221,380 |
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 $917 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
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 $206 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $552. During the period, there were no securities loaned to FCM.
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, 2017. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.65% | $22,366 |
| Class T | 1.90% | 8,998 |
| Class C | 2.40% | 17,807 |
| Total Emerging Markets | 1.40% | 126,126 |
| Class I | 1.40% | 12,433 |
| $187,730 |
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 $2,027 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $542.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $467.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $214,855 | $211,944 |
| Class T | 63,597 | 63,689 |
| Class C | 107,081 | 88,937 |
| Total Emerging Markets | 1,155,874 | 751,293 |
| Class I | 174,060 | 82,887 |
| Total | $1,715,467 | $1,198,750 |
| From net realized gain | ||
| Class A | $– | $24,934 |
| Class T | – | 9,098 |
| Class C | – | 18,150 |
| Total Emerging Markets | – | 75,507 |
| Class I | – | 8,330 |
| Total | $– | $136,019 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 982,236 | 251,231 | $10,454,988 | $2,772,246 |
| Reinvestment of distributions | 21,375 | 21,174 | 212,465 | 232,918 |
| Shares redeemed | (643,855) | (469,131) | (6,609,703) | (4,963,727) |
| Net increase (decrease) | 359,756 | (196,726) | $4,057,750 | $(1,958,563) |
| Class T | ||||
| Shares sold | 99,943 | 45,171 | $1,053,182 | $491,646 |
| Reinvestment of distributions | 6,356 | 6,566 | 63,302 | 72,226 |
| Shares redeemed | (162,291) | (186,633) | (1,643,320) | (1,964,687) |
| Net increase (decrease) | (55,992) | (134,896) | $(526,836) | $(1,400,815) |
| Class C | ||||
| Shares sold | 381,071 | 198,104 | $4,073,862 | $2,115,228 |
| Reinvestment of distributions | 10,753 | 9,691 | 106,882 | 106,316 |
| Shares redeemed | (194,422) | (334,580) | (1,922,472) | (3,520,139) |
| Net increase (decrease) | 197,402 | (126,785) | $2,258,272 | $(1,298,595) |
| Total Emerging Markets | ||||
| Shares sold | 7,221,843 | 1,772,167 | $77,958,709 | $18,534,579 |
| Reinvestment of distributions | 112,410 | 70,595 | 1,116,229 | 777,256 |
| Shares redeemed | (1,787,997) | (2,136,425) | (18,222,997) | (22,904,245) |
| Net increase (decrease) | 5,546,256 | (293,663) | $60,851,941 | $(3,592,410) |
| Class I | ||||
| Shares sold | 1,936,878 | 421,240 | $21,178,679 | $4,563,340 |
| Reinvestment of distributions | 14,612 | 8,237 | 144,954 | 90,609 |
| Shares redeemed | (700,942) | (229,844) | (7,340,498) | (2,428,352) |
| Net increase (decrease) | 1,250,548 | 199,633 | $13,983,135 | $2,225,597 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Total Emerging Markets Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Total Emerging Markets Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Total Emerging Markets Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 19, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.65% | |||
| Actual | $1,000.00 | $1,101.10 | $8.71 | |
| Hypothetical-C | $1,000.00 | $1,016.84 | $8.36 | |
| Class T | 1.90% | |||
| Actual | $1,000.00 | $1,100.00 | $10.03 | |
| Hypothetical-C | $1,000.00 | $1,015.58 | $9.63 | |
| Class C | 2.40% | |||
| Actual | $1,000.00 | $1,096.50 | $12.65 | |
| Hypothetical-C | $1,000.00 | $1,013.07 | $12.14 | |
| Total Emerging Markets | 1.40% | |||
| Actual | $1,000.00 | $1,102.00 | $7.40 | |
| Hypothetical-C | $1,000.00 | $1,018.10 | $7.10 | |
| Class I | 1.40% | |||
| Actual | $1,000.00 | $1,102.10 | $7.40 | |
| Hypothetical-C | $1,000.00 | $1,018.10 | $7.10 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Total Emerging Markets 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 Total Emerging Markets Fund | ||||
| Class A | 12/19/16 | 12/16/16 | $0.120 | $0.009 |
| Class T | 12/19/16 | 12/16/16 | $0.086 | $0.009 |
| Class C | 12/19/16 | 12/16/16 | $0.056 | $0.009 |
| Total Emerging Markets | 12/19/16 | 12/16/16 | $0.135 | $0.009 |
| Class I | 12/19/16 | 12/16/16 | $0.137 | $0.009 |
Class A designates 37%; Class T designates 43%; Class C designates 58%; Total Emerging Markets designates 31% and Class I designates 31% of the dividends distributed 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 | |
| Fidelity Total Emerging Markets Fund | |||
| Class A | 12/07/15 | $0.2583 | $0.0163 |
| Class T | 12/07/15 | $0.2193 | $0.0163 |
| Class C | 12/07/15 | $0.1613 | $0.0163 |
| Total Emerging Markets | 12/07/15 | $0.3063 | $0.0163 |
| Class I | 12/07/15 | $0.3093 | $0.0163 |
The funds will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Total Emerging Markets Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there were portfolio management changes for the fund in September 2014 and October 2015.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index for the most recent one- and three-year periods, as shown below. A peer group is not shown below because the fund does not generally utilize a peer group for performance comparison purposes.Fidelity Total Emerging Markets Fund
Fidelity Total Emerging Markets Fund
ATEK-ANN-1216
1.931268.104
|
Fidelity Advisor® International Small Cap Opportunities Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® International Small Cap Opportunities Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (4.53)% | 8.40% | 1.83% |
| Class T (incl. 3.50% sales charge) | (2.58)% | 8.61% | 1.80% |
| Class C (incl. contingent deferred sales charge) | (0.56)% | 8.84% | 1.66% |
| Class I | 1.56% | 10.00% | 2.72% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® International Small Cap Opportunities Fund - Class A on October 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Small Cap Index performed over the same period.
| Period Ending Values | ||
|
| $11,987 | Fidelity Advisor® International Small Cap Opportunities Fund - Class A |
|
| $14,563 | MSCI EAFE Small Cap Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: The fund’s share classes (excluding sales charges, if applicable) produced small gains for the annual reporting period ending October 31, 2016, but lagged the 3.12% return of the benchmark MSCI EAFE Small Cap Index by about 2 percentage points. The fund’s results were hurt by allocations to out-of-benchmark regions, as well as positioning in the U.K., coupled with the negative effects on the portfolio of a weaker British pound. Stock picking in the real estate sector, especially in the U.K., detracted most by far. Within this market, student-housing operator Unite Group, real estate developer Great Portland Estates and homebuilder Bellway all struggled. Stock picking in continental Europe added substantial value. Among sectors, positioning in consumer discretionary, consumer staples and information technology hurt. In contrast, stock picking in industrials, health care and materials added value, as did an unusually large cash allocation at certain times of market weakness. On an individual basis, the fund benefited from an out-of-benchmark holding in Fagerhult, a Swedish maker of high-end lighting fixtures. Also, our position in CompuGroup Medical, a German software manufacturer for medical professionals, added value.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 30.1% | |
| United Kingdom | 18.2% | |
| United States of America* | 8.5% | |
| Germany | 7.0% | |
| Sweden | 4.1% | |
| Italy | 3.2% | |
| Australia | 2.5% | |
| Netherlands | 2.4% | |
| France | 2.3% | |
| Other | 21.7% | |
* 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 April 30, 2016 | ||
| Japan | 25.1% | |
| United Kingdom | 20.5% | |
| United States of America* | 15.5% | |
| Germany | 6.6% | |
| Italy | 3.7% | |
| Sweden | 3.2% | |
| Netherlands | 2.5% | |
| France | 2.2% | |
| Canada | 2.0% | |
| Other | 18.7% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 98.4 | 92.2 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.6 | 7.8 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| USS Co. Ltd. (Japan, Specialty Retail) | 2.2 | 2.0 |
| CompuGroup Medical AG (Germany, Health Care Technology) | 2.0 | 1.6 |
| Sartorius AG (non-vtg.) (Germany, Health Care Equipment & Supplies) | 1.8 | 1.4 |
| CTS Eventim AG (Germany, Media) | 1.8 | 1.7 |
| Spirax-Sarco Engineering PLC (United Kingdom, Machinery) | 1.8 | 1.8 |
| OBIC Co. Ltd. (Japan, IT Services) | 1.7 | 1.5 |
| Azbil Corp. (Japan, Electronic Equipment & Components) | 1.6 | 1.3 |
| Nihon Parkerizing Co. Ltd. (Japan, Chemicals) | 1.6 | 1.1 |
| Interpump Group SpA (Italy, Machinery) | 1.5 | 1.3 |
| OSG Corp. (Japan, Machinery) | 1.5 | 1.1 |
| 17.5 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Industrials | 20.9 | 18.1 |
| Consumer Discretionary | 19.4 | 20.6 |
| Health Care | 12.6 | 10.3 |
| Information Technology | 11.7 | 10.7 |
| Consumer Staples | 10.1 | 8.5 |
| Real Estate | 8.1 | 0.0 |
| Materials | 7.8 | 6.7 |
| Financials | 6.4 | 15.9 |
| Energy | 1.4 | 1.4 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 96.6% | |||
| Shares | Value | ||
| Australia - 2.5% | |||
| Beacon Lighting Group Ltd. | 2,695,741 | $3,475,852 | |
| DuluxGroup Ltd. | 1,736,117 | 8,505,077 | |
| Imdex Ltd. (a) | 2,434,488 | 1,111,149 | |
| RCG Corp. Ltd. (b) | 6,879,148 | 7,613,968 | |
| TFS Corp. Ltd. (b) | 4,654,304 | 4,956,741 | |
| TOTAL AUSTRALIA | 25,662,787 | ||
| Austria - 1.8% | |||
| Andritz AG | 172,500 | 9,023,093 | |
| Buwog-Gemeinnuetzige Wohnung | 283,444 | 6,849,982 | |
| Zumtobel AG | 165,481 | 2,905,600 | |
| TOTAL AUSTRIA | 18,778,675 | ||
| Bailiwick of Jersey - 0.3% | |||
| Integrated Diagnostics Holdings PLC | 1,289,279 | 3,545,517 | |
| Belgium - 1.4% | |||
| Gimv NV | 56,688 | 3,049,233 | |
| KBC Ancora (a) | 304,448 | 11,550,221 | |
| TOTAL BELGIUM | 14,599,454 | ||
| Bermuda - 0.6% | |||
| Vostok New Ventures Ltd. SDR (a) | 812,589 | 6,095,216 | |
| Canada - 1.8% | |||
| Cara Operations Ltd. | 216,900 | 4,298,220 | |
| McCoy Global, Inc. (a) | 636,215 | 830,073 | |
| New Look Vision Group, Inc. | 207,200 | 4,353,162 | |
| Pason Systems, Inc. | 372,000 | 4,229,479 | |
| ShawCor Ltd. Class A | 110,600 | 2,766,443 | |
| Tesco Corp. | 301,747 | 2,066,967 | |
| TOTAL CANADA | 18,544,344 | ||
| Cayman Islands - 0.6% | |||
| 58.com, Inc. ADR (a) | 87,900 | 3,678,615 | |
| Value Partners Group Ltd. | 3,028,000 | 2,896,991 | |
| TOTAL CAYMAN ISLANDS | 6,575,606 | ||
| Denmark - 2.1% | |||
| Jyske Bank A/S (Reg.) | 203,127 | 9,218,329 | |
| Scandinavian Tobacco Group A/S | 264,149 | 4,572,844 | |
| Spar Nord Bank A/S | 776,369 | 7,791,418 | |
| TOTAL DENMARK | 21,582,591 | ||
| Finland - 0.7% | |||
| Tikkurila Oyj | 382,646 | 7,371,871 | |
| France - 2.3% | |||
| Elis SA | 414,962 | 6,896,642 | |
| Laurent-Perrier Group SA | 51,163 | 3,931,493 | |
| Vetoquinol SA | 121,184 | 6,094,092 | |
| Virbac SA (a) | 44,252 | 7,043,757 | |
| TOTAL FRANCE | 23,965,984 | ||
| Germany - 5.2% | |||
| CompuGroup Medical AG | 474,478 | 21,006,212 | |
| CTS Eventim AG | 528,280 | 18,980,761 | |
| Fielmann AG | 113,273 | 7,856,145 | |
| Nexus AG | 278,558 | 5,727,391 | |
| TOTAL GERMANY | 53,570,509 | ||
| India - 0.6% | |||
| Jyothy Laboratories Ltd. (a) | 1,189,354 | 6,392,033 | |
| Ireland - 1.6% | |||
| FBD Holdings PLC (a) | 240,328 | 1,609,302 | |
| James Hardie Industries PLC CDI | 970,350 | 14,489,791 | |
| TOTAL IRELAND | 16,099,093 | ||
| Isle of Man - 0.7% | |||
| Playtech Ltd. | 655,514 | 7,445,800 | |
| Israel - 2.2% | |||
| Azrieli Group | 140,005 | 5,963,250 | |
| Ituran Location & Control Ltd. | 335,908 | 8,935,153 | |
| Strauss Group Ltd. | 484,244 | 7,624,101 | |
| TOTAL ISRAEL | 22,522,504 | ||
| Italy - 3.2% | |||
| Azimut Holding SpA | 710,097 | 11,396,421 | |
| Banco di Desio e della Brianza SpA | 384,500 | 712,901 | |
| Beni Stabili SpA SIIQ | 8,521,382 | 4,971,836 | |
| Interpump Group SpA | 987,943 | 15,855,601 | |
| TOTAL ITALY | 32,936,759 | ||
| Japan - 30.1% | |||
| Aoki Super Co. Ltd. | 311,000 | 3,884,905 | |
| Artnature, Inc. | 851,700 | 5,213,993 | |
| Asahi Co. Ltd. | 398,900 | 4,823,164 | |
| Autobacs Seven Co. Ltd. | 400,300 | 5,702,758 | |
| Azbil Corp. | 571,900 | 17,014,666 | |
| Broadleaf Co. Ltd. | 93,100 | 1,048,451 | |
| Central Automotive Products Ltd. | 134,000 | 1,160,217 | |
| Century21 Real Estate Japan Ltd. | 72,900 | 915,508 | |
| Coca-Cola Central Japan Co. Ltd. | 248,700 | 5,492,412 | |
| Daiichikosho Co. Ltd. | 232,300 | 10,112,039 | |
| Daikokutenbussan Co. Ltd. | 170,700 | 8,032,845 | |
| Funai Soken Holdings, Inc. | 235,700 | 3,650,012 | |
| GCA Savvian Group Corp. | 542,761 | 4,062,815 | |
| Glory Ltd. | 5,600 | 185,563 | |
| Goldcrest Co. Ltd. | 559,130 | 10,188,781 | |
| Iwatsuka Confectionary Co. Ltd. | 50,400 | 1,674,874 | |
| Japan Digital Laboratory Co. | 499,100 | 7,776,575 | |
| Kobayashi Pharmaceutical Co. Ltd. | 252,000 | 13,192,333 | |
| Koshidaka Holdings Co. Ltd. | 166,900 | 2,718,272 | |
| Kusuri No Aoki Co. Ltd. | 61,100 | 3,122,876 | |
| Lasertec Corp. | 391,136 | 7,601,174 | |
| Medikit Co. Ltd. | 113,000 | 4,908,124 | |
| Misumi Group, Inc. | 452,400 | 8,269,770 | |
| Nagaileben Co. Ltd. | 558,200 | 12,284,978 | |
| Nakano Refrigerators Co. Ltd. | 140,000 | 3,778,011 | |
| ND Software Co. Ltd. | 85,043 | 687,675 | |
| Nihon Parkerizing Co. Ltd. | 1,195,100 | 16,524,220 | |
| NS Tool Co. Ltd. (b) | 35,600 | 869,038 | |
| OBIC Co. Ltd. | 331,500 | 17,259,369 | |
| OSG Corp. (b) | 720,000 | 15,372,175 | |
| Paramount Bed Holdings Co. Ltd. | 224,600 | 8,566,797 | |
| ProNexus, Inc. | 592,800 | 6,268,859 | |
| San-Ai Oil Co. Ltd. | 635,000 | 4,486,841 | |
| Seven Bank Ltd. | 826,500 | 2,545,623 | |
| SHO-BOND Holdings Co. Ltd. | 293,700 | 14,199,094 | |
| Shoei Co. Ltd. | 309,926 | 5,656,512 | |
| SK Kaken Co. Ltd. | 82,000 | 8,546,391 | |
| Software Service, Inc. | 65,300 | 2,646,372 | |
| Techno Medica Co. Ltd. | 79,491 | 1,359,086 | |
| The Monogatari Corp. | 109,300 | 5,028,821 | |
| TKC Corp. | 247,400 | 7,325,041 | |
| Tocalo Co. Ltd. | 117,000 | 2,630,743 | |
| Tsutsumi Jewelry Co. Ltd. | 156,100 | 2,476,880 | |
| USS Co. Ltd. | 1,356,500 | 22,998,536 | |
| Welcia Holdings Co. Ltd. | 50,000 | 3,418,518 | |
| Workman Co. Ltd. | 229,500 | 7,287,451 | |
| Yamada Consulting Group Co. Ltd. | 135,700 | 5,732,345 | |
| Yamato Kogyo Co. Ltd. | 114,100 | 3,217,257 | |
| TOTAL JAPAN | 311,918,760 | ||
| Korea (South) - 1.7% | |||
| BGFretail Co. Ltd. | 98,022 | 14,912,134 | |
| Leeno Industrial, Inc. | 78,630 | 2,956,131 | |
| TOTAL KOREA (SOUTH) | 17,868,265 | ||
| Mexico - 0.6% | |||
| Consorcio ARA S.A.B. de CV | 17,546,078 | 6,609,601 | |
| Netherlands - 2.4% | |||
| Aalberts Industries NV | 319,501 | 10,092,320 | |
| Heijmans NV (Certificaten Van Aandelen) (a)(b) | 304,192 | 2,917,518 | |
| Takeaway.com Holding BV (c) | 62,849 | 1,478,164 | |
| VastNed Retail NV | 277,355 | 10,659,371 | |
| TOTAL NETHERLANDS | 25,147,373 | ||
| Norway - 0.4% | |||
| Kongsberg Gruppen ASA | 305,600 | 4,364,473 | |
| Philippines - 0.6% | |||
| Jollibee Food Corp. | 1,176,090 | 5,779,730 | |
| South Africa - 0.8% | |||
| Clicks Group Ltd. | 944,913 | 8,794,778 | |
| Spain - 2.3% | |||
| Hispania Activos Inmobiliarios SA | 359,031 | 4,422,097 | |
| Merlin Properties Socimi SA | 630,300 | 7,085,177 | |
| Prosegur Compania de Seguridad SA (Reg.) | 1,699,190 | 12,348,192 | |
| TOTAL SPAIN | 23,855,466 | ||
| Sweden - 4.1% | |||
| Addlife AB (a) | 173,200 | 2,675,044 | |
| AddTech AB (B Shares) | 325,943 | 4,637,177 | |
| Fagerhult AB | 563,159 | 14,340,613 | |
| Intrum Justitia AB | 163,934 | 5,054,790 | |
| Loomis AB (B Shares) | 224,700 | 6,393,594 | |
| Saab AB (B Shares) | 256,100 | 9,073,366 | |
| TOTAL SWEDEN | 42,174,584 | ||
| Switzerland - 0.5% | |||
| Tecan Group AG | 33,098 | 5,451,947 | |
| Taiwan - 0.4% | |||
| Addcn Technology Co. Ltd. | 578,435 | 3,687,630 | |
| United Kingdom - 18.2% | |||
| AA PLC | 1,241,400 | 3,891,372 | |
| Alliance Pharma PLC | 4,548,400 | 2,519,177 | |
| Avon Rubber PLC | 50,000 | 607,104 | |
| Bellway PLC | 344,672 | 9,981,646 | |
| Berendsen PLC | 1,153,163 | 13,634,815 | |
| Britvic PLC | 458,571 | 3,115,165 | |
| Dechra Pharmaceuticals PLC | 659,609 | 10,859,011 | |
| Domino's Pizza UK & IRL PLC | 17,030 | 70,893 | |
| DP Poland PLC (a)(d) | 8,208,000 | 5,450,276 | |
| Elementis PLC | 3,501,710 | 10,209,474 | |
| Great Portland Estates PLC | 1,015,989 | 7,386,809 | |
| Hilton Food Group PLC | 262,072 | 1,942,299 | |
| Howden Joinery Group PLC | 1,695,300 | 7,779,352 | |
| Informa PLC | 1,779,956 | 14,651,530 | |
| InterContinental Hotel Group PLC ADR (b) | 170,775 | 6,737,074 | |
| ITE Group PLC | 3,080,234 | 5,419,672 | |
| JUST EAT Ltd. (a) | 640,770 | 4,407,780 | |
| Rightmove PLC | 182,147 | 8,327,105 | |
| Shaftesbury PLC | 1,059,573 | 11,892,732 | |
| Spectris PLC | 592,778 | 14,866,730 | |
| Spirax-Sarco Engineering PLC | 339,491 | 18,333,492 | |
| Ted Baker PLC | 151,900 | 4,601,659 | |
| Topps Tiles PLC | 3,130,908 | 3,506,492 | |
| Ultra Electronics Holdings PLC | 392,558 | 8,927,523 | |
| Unite Group PLC | 1,309,123 | 8,869,099 | |
| TOTAL UNITED KINGDOM | 187,988,281 | ||
| United States of America - 6.9% | |||
| Autoliv, Inc. (b) | 56,800 | 5,497,104 | |
| Broadridge Financial Solutions, Inc. | 43,905 | 2,838,897 | |
| China Biologic Products, Inc. (a) | 94,280 | 11,135,411 | |
| Domino's Pizza, Inc. | 46,200 | 7,818,888 | |
| Energizer Holdings, Inc. | 57,009 | 2,651,489 | |
| Kennedy-Wilson Holdings, Inc. | 271,029 | 5,583,197 | |
| Martin Marietta Materials, Inc. | 31,720 | 5,880,254 | |
| Mohawk Industries, Inc. (a) | 35,800 | 6,597,940 | |
| PriceSmart, Inc. | 126,294 | 11,486,439 | |
| ResMed, Inc. | 75,095 | 4,488,428 | |
| SS&C Technologies Holdings, Inc. | 218,116 | 6,964,444 | |
| TOTAL UNITED STATES OF AMERICA | 70,942,491 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $924,582,238) | 1,000,272,122 | ||
| Nonconvertible Preferred Stocks - 1.8% | |||
| Germany - 1.8% | |||
| Sartorius AG (non-vtg.) | |||
| (Cost $8,849,834) | 242,080 | 19,019,250 | |
| Money Market Funds - 2.1% | |||
| Fidelity Cash Central Fund, 0.41% (e) | 9,612,830 | 9,615,714 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 11,863,768 | 11,866,141 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $21,480,829) | 21,481,855 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.5% | |||
| (Cost $954,912,901) | 1,040,773,227 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.5)% | (5,185,619) | ||
| NET ASSETS - 100% | $1,035,587,608 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $1,478,164 or 0.1% of net assets.
(d) Affiliated company
(e) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
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 | $257,746 |
| Fidelity Securities Lending Cash Central Fund | 117,062 |
| Total | $374,808 |
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, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| DP Poland PLC | $2,507,081 | $321,456 | $-- | $-- | $5,450,276 |
| Total | $2,507,081 | $321,456 | $-- | $-- | $5,450,276 |
Investment Valuation
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.
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $269,098,224 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $11,412,617) — See accompanying schedule: Unaffiliated issuers (cost $931,311,519) | $1,013,841,096 | |
| Fidelity Central Funds (cost $21,480,830) | 21,481,855 | |
| Other affiliated issuers (cost $2,120,552) | 5,450,276 | |
| Total Investments (cost $954,912,901) | $1,040,773,227 | |
| Cash | 85,259 | |
| Foreign currency held at value (cost $170,953) | 170,953 | |
| Receivable for investments sold | 4,749,303 | |
| Receivable for fund shares sold | 1,854,797 | |
| Dividends receivable | 3,523,084 | |
| Distributions receivable from Fidelity Central Funds | 16,186 | |
| Prepaid expenses | 2,955 | |
| Other receivables | 8,043 | |
| Total assets | 1,051,183,807 | |
| Liabilities | ||
| Payable for investments purchased | $861,625 | |
| Payable for fund shares redeemed | 1,735,629 | |
| Accrued management fee | 788,442 | |
| Distribution and service plan fees payable | 25,728 | |
| Other affiliated payables | 227,586 | |
| Other payables and accrued expenses | 93,379 | |
| Collateral on securities loaned, at value | 11,863,810 | |
| Total liabilities | 15,596,199 | |
| Net Assets | $1,035,587,608 | |
| Net Assets consist of: | ||
| Paid in capital | $1,148,134,262 | |
| Undistributed net investment income | 9,497,402 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (207,778,387) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 85,734,331 | |
| Net Assets | $1,035,587,608 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($45,151,330 ÷ 3,046,480 shares) | $14.82 | |
| Maximum offering price per share (100/94.25 of $14.82) | $15.72 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($12,307,937 ÷ 838,211 shares) | $14.68 | |
| Maximum offering price per share (100/96.50 of $14.68) | $15.21 | |
| Class C: | ||
| Net Asset Value and offering price per share ($12,624,735 ÷ 884,417 shares)(a) | $14.27 | |
| International Small Cap Opportunities: | ||
| Net Asset Value, offering price and redemption price per share ($809,952,219 ÷ 53,996,061 shares) | $15.00 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($155,551,387 ÷ 10,375,816 shares) | $14.99 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $24,100,317 | |
| Income from Fidelity Central Funds | 374,808 | |
| Income before foreign taxes withheld | 24,475,125 | |
| Less foreign taxes withheld | (1,864,442) | |
| Total income | 22,610,683 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $9,269,739 | |
| Performance adjustment | 315,755 | |
| Transfer agent fees | 2,324,940 | |
| Distribution and service plan fees | 342,195 | |
| Accounting and security lending fees | 506,368 | |
| Custodian fees and expenses | 182,238 | |
| Independent trustees' fees and expenses | 4,655 | |
| Registration fees | 109,356 | |
| Audit | 81,090 | |
| Legal | 3,289 | |
| Miscellaneous | 7,802 | |
| Total expenses before reductions | 13,147,427 | |
| Expense reductions | (38,847) | 13,108,580 |
| Net investment income (loss) | 9,502,103 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 53,777,888 | |
| Fidelity Central Funds | 3,210 | |
| Foreign currency transactions | 61,218 | |
| Total net realized gain (loss) | 53,842,316 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (43,675,907) | |
| Assets and liabilities in foreign currencies | (89,164) | |
| Total change in net unrealized appreciation (depreciation) | (43,765,071) | |
| Net gain (loss) | 10,077,245 | |
| Net increase (decrease) in net assets resulting from operations | $19,579,348 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $9,502,103 | $4,880,273 |
| Net realized gain (loss) | 53,842,316 | 32,155,951 |
| Change in net unrealized appreciation (depreciation) | (43,765,071) | 15,708,708 |
| Net increase (decrease) in net assets resulting from operations | 19,579,348 | 52,744,932 |
| Distributions to shareholders from net investment income | (4,852,691) | (3,982,311) |
| Distributions to shareholders from net realized gain | (4,655,673) | (949,656) |
| Total distributions | (9,508,364) | (4,931,967) |
| Share transactions - net increase (decrease) | 68,430,907 | 250,623,581 |
| Redemption fees | 241,368 | 196,651 |
| Total increase (decrease) in net assets | 78,743,259 | 298,633,197 |
| Net Assets | ||
| Beginning of period | 956,844,349 | 658,211,152 |
| End of period | $1,035,587,608 | $956,844,349 |
| Other Information | ||
| Undistributed net investment income end of period | $9,497,402 | $4,878,283 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.75 | $13.65 | $13.68 | $10.78 | $9.75 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .06 | .05 | .07 | .08 |
| Net realized and unrealized gain (loss) | .10 | 1.11 | .05 | 2.91 | 1.07 |
| Total from investment operations | .19 | 1.17 | .10 | 2.98 | 1.15 |
| Distributions from net investment income | (.05) | (.05) | (.06) | (.08) | (.11) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.12) | (.07) | (.13)B | (.08)C | (.12) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $14.82 | $14.75 | $13.65 | $13.68 | $10.78 |
| Total ReturnE,F | 1.30% | 8.62% | .78% | 27.85% | 12.00% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.45% | 1.52% | 1.63% | 1.70% | 1.75% |
| Expenses net of fee waivers, if any | 1.45% | 1.52% | 1.63% | 1.65% | 1.65% |
| Expenses net of all reductions | 1.45% | 1.51% | 1.63% | 1.64% | 1.64% |
| Net investment income (loss) | .62% | .38% | .33% | .59% | .85% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $45,151 | $42,289 | $25,041 | $22,052 | $18,194 |
| Portfolio turnover rateI | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.13 per share is comprised of distributions from net investment income of $.055 and distributions from net realized gain of $.079 per share.
C Total distributions of $.08 per share is comprised of distributions from net investment income of $.077 and distributions from net realized gain of $.005 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.62 | $13.53 | $13.56 | $10.69 | $9.66 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .04 | .01 | .01 | .04 | .06 |
| Net realized and unrealized gain (loss) | .10 | 1.11 | .06 | 2.89 | 1.06 |
| Total from investment operations | .14 | 1.12 | .07 | 2.93 | 1.12 |
| Distributions from net investment income | (.01) | (.01) | (.02) | (.05) | (.08) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.08) | (.03) | (.10) | (.06) | (.09) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.68 | $14.62 | $13.53 | $13.56 | $10.69 |
| Total ReturnC,D | .95% | 8.27% | .55% | 27.53% | 11.72% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.77% | 1.80% | 1.89% | 1.96% | 2.02% |
| Expenses net of fee waivers, if any | 1.77% | 1.80% | 1.89% | 1.90% | 1.90% |
| Expenses net of all reductions | 1.77% | 1.80% | 1.89% | 1.89% | 1.89% |
| Net investment income (loss) | .30% | .10% | .07% | .34% | .60% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,308 | $13,296 | $9,913 | $9,634 | $8,169 |
| Portfolio turnover rateG | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.26 | $13.23 | $13.28 | $10.48 | $9.47 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.03) | (.05) | (.06) | (.02) | .01 |
| Net realized and unrealized gain (loss) | .09 | 1.08 | .06 | 2.84 | 1.04 |
| Total from investment operations | .06 | 1.03 | – | 2.82 | 1.05 |
| Distributions from net investment income | – | – | – | (.01) | (.03) |
| Distributions from net realized gain | (.05) | – | (.05) | (.01) | (.01) |
| Total distributions | (.05) | – | (.05) | (.02) | (.04) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.27 | $14.26 | $13.23 | $13.28 | $10.48 |
| Total ReturnC,D | .44% | 7.79% | .03% | 26.91% | 11.13% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.26% | 2.27% | 2.38% | 2.45% | 2.50% |
| Expenses net of fee waivers, if any | 2.26% | 2.27% | 2.38% | 2.40% | 2.40% |
| Expenses net of all reductions | 2.25% | 2.26% | 2.38% | 2.39% | 2.39% |
| Net investment income (loss) | (.19)% | (.36)% | (.42)% | (.16)% | .10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,625 | $17,370 | $8,438 | $8,070 | $6,608 |
| Portfolio turnover rateG | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.91 | $13.80 | $13.82 | $10.88 | $9.85 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .13 | .10 | .09 | .10 | .11 |
| Net realized and unrealized gain (loss) | .11 | 1.12 | .06 | 2.95 | 1.07 |
| Total from investment operations | .24 | 1.22 | .15 | 3.05 | 1.18 |
| Distributions from net investment income | (.08) | (.09) | (.09) | (.10) | (.14) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.15) | (.11) | (.17) | (.11) | (.15) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $15.00 | $14.91 | $13.80 | $13.82 | $10.88 |
| Total ReturnC | 1.58% | 8.92% | 1.11% | 28.24% | 12.21% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.17% | 1.23% | 1.30% | 1.39% | 1.47% |
| Expenses net of fee waivers, if any | 1.17% | 1.22% | 1.30% | 1.39% | 1.40% |
| Expenses net of all reductions | 1.16% | 1.22% | 1.30% | 1.38% | 1.39% |
| Net investment income (loss) | .90% | .68% | .65% | .85% | 1.10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $809,952 | $762,563 | $584,253 | $518,121 | $334,918 |
| Portfolio turnover rateF | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.91 | $13.81 | $13.83 | $10.90 | $9.86 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .13 | .10 | .08 | .11 | .11 |
| Net realized and unrealized gain (loss) | .10 | 1.13 | .07 | 2.93 | 1.08 |
| Total from investment operations | .23 | 1.23 | .15 | 3.04 | 1.19 |
| Distributions from net investment income | (.08) | (.11) | (.09) | (.10) | (.14) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.15) | (.13) | (.17) | (.11) | (.15) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.99 | $14.91 | $13.81 | $13.83 | $10.90 |
| Total ReturnC | 1.56% | 8.98% | 1.11% | 28.11% | 12.32% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.16% | 1.19% | 1.36% | 1.38% | 1.44% |
| Expenses net of fee waivers, if any | 1.16% | 1.19% | 1.36% | 1.37% | 1.40% |
| Expenses net of all reductions | 1.16% | 1.18% | 1.36% | 1.37% | 1.39% |
| Net investment income (loss) | .91% | .71% | .60% | .87% | 1.10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $155,551 | $120,723 | $29,822 | $5,670 | $4,591 |
| Portfolio turnover rateF | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Small Cap Opportunities 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, International Small Cap Opportunities and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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), 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 | $170,782,184 |
| Gross unrealized depreciation | (93,697,092) |
| Net unrealized appreciation (depreciation) on securities | $77,085,092 |
| Tax Cost | $963,688,135 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $11,959,956 |
| Capital loss carryforward | $(201,465,311) |
| Net unrealized appreciation (depreciation) on securities and other investments | $76,958,702 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(201,465,311) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $9,508,364 | $ 4,931,967 |
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.
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 $372,005,221 and $241,349,228, 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. 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 International Small Cap Opportunities as compared to its benchmark index, the MSCI EAFE Small Cap Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .88% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $117,685 | $5,501 |
| Class T | .25% | .25% | 66,543 | – |
| Class B | .75% | .25% | 2,915 | 2,186 |
| Class C | .75% | .25% | 155,052 | 37,902 |
| $342,195 | $45,589 |
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 by FDC |
|
| Class A | $17,862 |
| Class T | 4,386 |
| Class B(a) | 13 |
| Class C(a) | 4,100 |
| $26,361 |
(a) When Class B and C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $114,731 | .24 |
| Class T | 41,848 | .31 |
| Class B | 817 | .28 |
| Class C | 46,193 | .30 |
| International Small Cap Opportunities | 1,834,246 | .21 |
| Class I | 287,105 | .20 |
| $2,324,940 |
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 $1,273 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $1,010.
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 $2,807 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $117,062, including $1,988 from 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 $31,440 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $102.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7,305.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $159,395 | $91,925 |
| Class T | 9,385 | 4,261 |
| International Small Cap Opportunities | 3,989,748 | 3,599,410 |
| Class I | 694,163 | 286,715 |
| Total | $4,852,691 | $3,982,311 |
| From net realized gain | ||
| Class A | $214,570 | $38,609 |
| Class T | 65,696 | 14,913 |
| Class C | 66,143 | – |
| International Small Cap Opportunities | 3,723,825 | 839,863 |
| Class I | 585,439 | 56,271 |
| Total | $4,655,673 | $949,656 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 1,351,287 | 1,605,762 | $19,658,244 | $23,674,805 |
| Reinvestment of distributions | 24,184 | 9,185 | 359,376 | 124,545 |
| Shares redeemed | (1,195,179) | (582,997) | (17,426,031) | (8,244,833) |
| Net increase (decrease) | 180,292 | 1,031,950 | $2,591,589 | $15,554,517 |
| Class T | ||||
| Shares sold | 193,483 | 309,765 | $2,768,529 | $4,543,322 |
| Reinvestment of distributions | 5,021 | 1,404 | 74,158 | 18,926 |
| Shares redeemed | (269,450) | (134,926) | (3,846,732) | (1,907,198) |
| Net increase (decrease) | (70,946) | 176,243 | $(1,004,045) | $2,655,050 |
| Class B | ||||
| Shares sold | 3,601 | 9,791 | $51,563 | $136,845 |
| Shares redeemed | (45,696) | (23,615) | (635,715) | (329,326) |
| Net increase (decrease) | (42,095) | (13,824) | $(584,152) | $(192,481) |
| Class C | ||||
| Shares sold | 246,339 | 838,785 | $3,449,372 | $12,019,463 |
| Reinvestment of distributions | 4,483 | – | 64,648 | – |
| Shares redeemed | (584,363) | (258,762) | (8,102,721) | (3,578,649) |
| Net increase (decrease) | (333,541) | 580,023 | $(4,588,701) | $8,440,814 |
| International Small Cap Opportunities | ||||
| Shares sold | 26,676,267 | 18,903,102 | $389,947,202 | $282,906,392 |
| Reinvestment of distributions | 402,267 | 239,997 | 6,034,011 | 3,280,752 |
| Shares redeemed | (24,218,791) | (10,354,861) | (357,874,849) | (146,998,081) |
| Net increase (decrease) | 2,859,743 | 8,788,238 | $38,106,364 | $139,189,063 |
| Class I | ||||
| Shares sold | 5,357,445 | 7,108,830 | $78,823,330 | $102,023,907 |
| Reinvestment of distributions | 75,351 | 23,468 | 1,129,506 | 320,812 |
| Shares redeemed | (3,153,630) | (1,195,608) | (46,042,984) | (17,368,101) |
| Net increase (decrease) | 2,279,166 | 5,936,690 | $33,909,852 | $84,976,618 |
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.
Mutual funds managed by the investment adviser or its affiliates were the owners of record, in the aggregate, of approximately 21% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Small Cap Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Small Cap Opportunities Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Small Cap Opportunities Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.44% | |||
| Actual | $1,000.00 | $1,004.10 | $7.25 | |
| Hypothetical-C | $1,000.00 | $1,017.90 | $7.30 | |
| Class T | 1.76% | |||
| Actual | $1,000.00 | $1,002.00 | $8.86 | |
| Hypothetical-C | $1,000.00 | $1,016.29 | $8.92 | |
| Class C | 2.24% | |||
| Actual | $1,000.00 | $999.30 | $11.26 | |
| Hypothetical-C | $1,000.00 | $1,013.88 | $11.34 | |
| International Small Cap Opportunities | 1.15% | |||
| Actual | $1,000.00 | $1,005.40 | $5.80 | |
| Hypothetical-C | $1,000.00 | $1,019.36 | $5.84 | |
| Class I | 1.15% | |||
| Actual | $1,000.00 | $1,005.40 | $5.80 | |
| Hypothetical-C | $1,000.00 | $1,019.36 | $5.84 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Advisor International Small Cap Opportunities 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 | |
| Advisor International Small Cap Opportunities Fund | ||||
| Class A | 12/12/16 | 12/09/16 | $0.118 | $0.040 |
| Class T | 12/12/16 | 12/09/16 | $0.055 | $0.040 |
| Class C | 12/12/16 | 12/09/16 | $0.000 | $0.000 |
| International Small Cap Opportunities | 12/12/16 | 12/09/16 | $0.168 | $0.040 |
| Class I | 12/12/16 | 12/09/16 | $0.176 | $0.040 |
Class A designates 5%, Class T designates 7%, Class C designates 9%, International Small Cap Opportunities designates 4% and Class I designates 4% of the dividends distributed in December 2015, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class C, International Small Cap Opportunities, and Class I designates 100% of the dividends distributed 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 | |
| Advisor International Small Cap Opportunities Fund | |||
| Class A | 12/07/2015 | $0.1391 | $0.0171 |
| Class T | 12/07/2015 | $0.0971 | $0.0171 |
| Class C | 12/07/2015 | $0.0701 | $0.0171 |
| International Small Cap Opportunities | 12/07/2015 | $0.1621 | $0.0171 |
| Class I | 12/07/2015 | $0.1701 | $0.0171 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Small Cap Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Small Cap Opportunities Fund
Fidelity International Small Cap Opportunities Fund
AILS-ANN-1216
1.815091.111
|
Fidelity® International Small Cap Opportunities Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® International Small Cap Opportunities Fund | 1.58% | 9.99% | 2.71% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® International Small Cap Opportunities Fund, a class of the fund, on October 31, 2006.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Small Cap Index performed over the same period.
| Period Ending Values | ||
|
| $13,065 | Fidelity® International Small Cap Opportunities Fund |
|
| $14,563 | MSCI EAFE Small Cap Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: The fund’s share classes (excluding sales charges, if applicable) produced small gains for the annual reporting period ending October 31, 2016, but lagged the 3.12% return of the benchmark MSCI EAFE Small Cap Index by about 2 percentage points. The fund’s results were hurt by allocations to out-of-benchmark regions, as well as positioning in the U.K., coupled with the negative effects on the portfolio of a weaker British pound. Stock picking in the real estate sector, especially in the U.K., detracted most by far. Within this market, student-housing operator Unite Group, real estate developer Great Portland Estates and homebuilder Bellway all struggled. Stock picking in continental Europe added substantial value. Among sectors, positioning in consumer discretionary, consumer staples and information technology hurt. In contrast, stock picking in industrials, health care and materials added value, as did an unusually large cash allocation at certain times of market weakness. On an individual basis, the fund benefited from an out-of-benchmark holding in Fagerhult, a Swedish maker of high-end lighting fixtures. Also, our position in CompuGroup Medical, a German software manufacturer for medical professionals, added value.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 30.1% | |
| United Kingdom | 18.2% | |
| United States of America* | 8.5% | |
| Germany | 7.0% | |
| Sweden | 4.1% | |
| Italy | 3.2% | |
| Australia | 2.5% | |
| Netherlands | 2.4% | |
| France | 2.3% | |
| Other | 21.7% | |
* 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 April 30, 2016 | ||
| Japan | 25.1% | |
| United Kingdom | 20.5% | |
| United States of America* | 15.5% | |
| Germany | 6.6% | |
| Italy | 3.7% | |
| Sweden | 3.2% | |
| Netherlands | 2.5% | |
| France | 2.2% | |
| Canada | 2.0% | |
| Other | 18.7% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 98.4 | 92.2 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.6 | 7.8 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| USS Co. Ltd. (Japan, Specialty Retail) | 2.2 | 2.0 |
| CompuGroup Medical AG (Germany, Health Care Technology) | 2.0 | 1.6 |
| Sartorius AG (non-vtg.) (Germany, Health Care Equipment & Supplies) | 1.8 | 1.4 |
| CTS Eventim AG (Germany, Media) | 1.8 | 1.7 |
| Spirax-Sarco Engineering PLC (United Kingdom, Machinery) | 1.8 | 1.8 |
| OBIC Co. Ltd. (Japan, IT Services) | 1.7 | 1.5 |
| Azbil Corp. (Japan, Electronic Equipment & Components) | 1.6 | 1.3 |
| Nihon Parkerizing Co. Ltd. (Japan, Chemicals) | 1.6 | 1.1 |
| Interpump Group SpA (Italy, Machinery) | 1.5 | 1.3 |
| OSG Corp. (Japan, Machinery) | 1.5 | 1.1 |
| 17.5 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Industrials | 20.9 | 18.1 |
| Consumer Discretionary | 19.4 | 20.6 |
| Health Care | 12.6 | 10.3 |
| Information Technology | 11.7 | 10.7 |
| Consumer Staples | 10.1 | 8.5 |
| Real Estate | 8.1 | 0.0 |
| Materials | 7.8 | 6.7 |
| Financials | 6.4 | 15.9 |
| Energy | 1.4 | 1.4 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 96.6% | |||
| Shares | Value | ||
| Australia - 2.5% | |||
| Beacon Lighting Group Ltd. | 2,695,741 | $3,475,852 | |
| DuluxGroup Ltd. | 1,736,117 | 8,505,077 | |
| Imdex Ltd. (a) | 2,434,488 | 1,111,149 | |
| RCG Corp. Ltd. (b) | 6,879,148 | 7,613,968 | |
| TFS Corp. Ltd. (b) | 4,654,304 | 4,956,741 | |
| TOTAL AUSTRALIA | 25,662,787 | ||
| Austria - 1.8% | |||
| Andritz AG | 172,500 | 9,023,093 | |
| Buwog-Gemeinnuetzige Wohnung | 283,444 | 6,849,982 | |
| Zumtobel AG | 165,481 | 2,905,600 | |
| TOTAL AUSTRIA | 18,778,675 | ||
| Bailiwick of Jersey - 0.3% | |||
| Integrated Diagnostics Holdings PLC | 1,289,279 | 3,545,517 | |
| Belgium - 1.4% | |||
| Gimv NV | 56,688 | 3,049,233 | |
| KBC Ancora (a) | 304,448 | 11,550,221 | |
| TOTAL BELGIUM | 14,599,454 | ||
| Bermuda - 0.6% | |||
| Vostok New Ventures Ltd. SDR (a) | 812,589 | 6,095,216 | |
| Canada - 1.8% | |||
| Cara Operations Ltd. | 216,900 | 4,298,220 | |
| McCoy Global, Inc. (a) | 636,215 | 830,073 | |
| New Look Vision Group, Inc. | 207,200 | 4,353,162 | |
| Pason Systems, Inc. | 372,000 | 4,229,479 | |
| ShawCor Ltd. Class A | 110,600 | 2,766,443 | |
| Tesco Corp. | 301,747 | 2,066,967 | |
| TOTAL CANADA | 18,544,344 | ||
| Cayman Islands - 0.6% | |||
| 58.com, Inc. ADR (a) | 87,900 | 3,678,615 | |
| Value Partners Group Ltd. | 3,028,000 | 2,896,991 | |
| TOTAL CAYMAN ISLANDS | 6,575,606 | ||
| Denmark - 2.1% | |||
| Jyske Bank A/S (Reg.) | 203,127 | 9,218,329 | |
| Scandinavian Tobacco Group A/S | 264,149 | 4,572,844 | |
| Spar Nord Bank A/S | 776,369 | 7,791,418 | |
| TOTAL DENMARK | 21,582,591 | ||
| Finland - 0.7% | |||
| Tikkurila Oyj | 382,646 | 7,371,871 | |
| France - 2.3% | |||
| Elis SA | 414,962 | 6,896,642 | |
| Laurent-Perrier Group SA | 51,163 | 3,931,493 | |
| Vetoquinol SA | 121,184 | 6,094,092 | |
| Virbac SA (a) | 44,252 | 7,043,757 | |
| TOTAL FRANCE | 23,965,984 | ||
| Germany - 5.2% | |||
| CompuGroup Medical AG | 474,478 | 21,006,212 | |
| CTS Eventim AG | 528,280 | 18,980,761 | |
| Fielmann AG | 113,273 | 7,856,145 | |
| Nexus AG | 278,558 | 5,727,391 | |
| TOTAL GERMANY | 53,570,509 | ||
| India - 0.6% | |||
| Jyothy Laboratories Ltd. (a) | 1,189,354 | 6,392,033 | |
| Ireland - 1.6% | |||
| FBD Holdings PLC (a) | 240,328 | 1,609,302 | |
| James Hardie Industries PLC CDI | 970,350 | 14,489,791 | |
| TOTAL IRELAND | 16,099,093 | ||
| Isle of Man - 0.7% | |||
| Playtech Ltd. | 655,514 | 7,445,800 | |
| Israel - 2.2% | |||
| Azrieli Group | 140,005 | 5,963,250 | |
| Ituran Location & Control Ltd. | 335,908 | 8,935,153 | |
| Strauss Group Ltd. | 484,244 | 7,624,101 | |
| TOTAL ISRAEL | 22,522,504 | ||
| Italy - 3.2% | |||
| Azimut Holding SpA | 710,097 | 11,396,421 | |
| Banco di Desio e della Brianza SpA | 384,500 | 712,901 | |
| Beni Stabili SpA SIIQ | 8,521,382 | 4,971,836 | |
| Interpump Group SpA | 987,943 | 15,855,601 | |
| TOTAL ITALY | 32,936,759 | ||
| Japan - 30.1% | |||
| Aoki Super Co. Ltd. | 311,000 | 3,884,905 | |
| Artnature, Inc. | 851,700 | 5,213,993 | |
| Asahi Co. Ltd. | 398,900 | 4,823,164 | |
| Autobacs Seven Co. Ltd. | 400,300 | 5,702,758 | |
| Azbil Corp. | 571,900 | 17,014,666 | |
| Broadleaf Co. Ltd. | 93,100 | 1,048,451 | |
| Central Automotive Products Ltd. | 134,000 | 1,160,217 | |
| Century21 Real Estate Japan Ltd. | 72,900 | 915,508 | |
| Coca-Cola Central Japan Co. Ltd. | 248,700 | 5,492,412 | |
| Daiichikosho Co. Ltd. | 232,300 | 10,112,039 | |
| Daikokutenbussan Co. Ltd. | 170,700 | 8,032,845 | |
| Funai Soken Holdings, Inc. | 235,700 | 3,650,012 | |
| GCA Savvian Group Corp. | 542,761 | 4,062,815 | |
| Glory Ltd. | 5,600 | 185,563 | |
| Goldcrest Co. Ltd. | 559,130 | 10,188,781 | |
| Iwatsuka Confectionary Co. Ltd. | 50,400 | 1,674,874 | |
| Japan Digital Laboratory Co. | 499,100 | 7,776,575 | |
| Kobayashi Pharmaceutical Co. Ltd. | 252,000 | 13,192,333 | |
| Koshidaka Holdings Co. Ltd. | 166,900 | 2,718,272 | |
| Kusuri No Aoki Co. Ltd. | 61,100 | 3,122,876 | |
| Lasertec Corp. | 391,136 | 7,601,174 | |
| Medikit Co. Ltd. | 113,000 | 4,908,124 | |
| Misumi Group, Inc. | 452,400 | 8,269,770 | |
| Nagaileben Co. Ltd. | 558,200 | 12,284,978 | |
| Nakano Refrigerators Co. Ltd. | 140,000 | 3,778,011 | |
| ND Software Co. Ltd. | 85,043 | 687,675 | |
| Nihon Parkerizing Co. Ltd. | 1,195,100 | 16,524,220 | |
| NS Tool Co. Ltd. (b) | 35,600 | 869,038 | |
| OBIC Co. Ltd. | 331,500 | 17,259,369 | |
| OSG Corp. (b) | 720,000 | 15,372,175 | |
| Paramount Bed Holdings Co. Ltd. | 224,600 | 8,566,797 | |
| ProNexus, Inc. | 592,800 | 6,268,859 | |
| San-Ai Oil Co. Ltd. | 635,000 | 4,486,841 | |
| Seven Bank Ltd. | 826,500 | 2,545,623 | |
| SHO-BOND Holdings Co. Ltd. | 293,700 | 14,199,094 | |
| Shoei Co. Ltd. | 309,926 | 5,656,512 | |
| SK Kaken Co. Ltd. | 82,000 | 8,546,391 | |
| Software Service, Inc. | 65,300 | 2,646,372 | |
| Techno Medica Co. Ltd. | 79,491 | 1,359,086 | |
| The Monogatari Corp. | 109,300 | 5,028,821 | |
| TKC Corp. | 247,400 | 7,325,041 | |
| Tocalo Co. Ltd. | 117,000 | 2,630,743 | |
| Tsutsumi Jewelry Co. Ltd. | 156,100 | 2,476,880 | |
| USS Co. Ltd. | 1,356,500 | 22,998,536 | |
| Welcia Holdings Co. Ltd. | 50,000 | 3,418,518 | |
| Workman Co. Ltd. | 229,500 | 7,287,451 | |
| Yamada Consulting Group Co. Ltd. | 135,700 | 5,732,345 | |
| Yamato Kogyo Co. Ltd. | 114,100 | 3,217,257 | |
| TOTAL JAPAN | 311,918,760 | ||
| Korea (South) - 1.7% | |||
| BGFretail Co. Ltd. | 98,022 | 14,912,134 | |
| Leeno Industrial, Inc. | 78,630 | 2,956,131 | |
| TOTAL KOREA (SOUTH) | 17,868,265 | ||
| Mexico - 0.6% | |||
| Consorcio ARA S.A.B. de CV | 17,546,078 | 6,609,601 | |
| Netherlands - 2.4% | |||
| Aalberts Industries NV | 319,501 | 10,092,320 | |
| Heijmans NV (Certificaten Van Aandelen) (a)(b) | 304,192 | 2,917,518 | |
| Takeaway.com Holding BV (c) | 62,849 | 1,478,164 | |
| VastNed Retail NV | 277,355 | 10,659,371 | |
| TOTAL NETHERLANDS | 25,147,373 | ||
| Norway - 0.4% | |||
| Kongsberg Gruppen ASA | 305,600 | 4,364,473 | |
| Philippines - 0.6% | |||
| Jollibee Food Corp. | 1,176,090 | 5,779,730 | |
| South Africa - 0.8% | |||
| Clicks Group Ltd. | 944,913 | 8,794,778 | |
| Spain - 2.3% | |||
| Hispania Activos Inmobiliarios SA | 359,031 | 4,422,097 | |
| Merlin Properties Socimi SA | 630,300 | 7,085,177 | |
| Prosegur Compania de Seguridad SA (Reg.) | 1,699,190 | 12,348,192 | |
| TOTAL SPAIN | 23,855,466 | ||
| Sweden - 4.1% | |||
| Addlife AB (a) | 173,200 | 2,675,044 | |
| AddTech AB (B Shares) | 325,943 | 4,637,177 | |
| Fagerhult AB | 563,159 | 14,340,613 | |
| Intrum Justitia AB | 163,934 | 5,054,790 | |
| Loomis AB (B Shares) | 224,700 | 6,393,594 | |
| Saab AB (B Shares) | 256,100 | 9,073,366 | |
| TOTAL SWEDEN | 42,174,584 | ||
| Switzerland - 0.5% | |||
| Tecan Group AG | 33,098 | 5,451,947 | |
| Taiwan - 0.4% | |||
| Addcn Technology Co. Ltd. | 578,435 | 3,687,630 | |
| United Kingdom - 18.2% | |||
| AA PLC | 1,241,400 | 3,891,372 | |
| Alliance Pharma PLC | 4,548,400 | 2,519,177 | |
| Avon Rubber PLC | 50,000 | 607,104 | |
| Bellway PLC | 344,672 | 9,981,646 | |
| Berendsen PLC | 1,153,163 | 13,634,815 | |
| Britvic PLC | 458,571 | 3,115,165 | |
| Dechra Pharmaceuticals PLC | 659,609 | 10,859,011 | |
| Domino's Pizza UK & IRL PLC | 17,030 | 70,893 | |
| DP Poland PLC (a)(d) | 8,208,000 | 5,450,276 | |
| Elementis PLC | 3,501,710 | 10,209,474 | |
| Great Portland Estates PLC | 1,015,989 | 7,386,809 | |
| Hilton Food Group PLC | 262,072 | 1,942,299 | |
| Howden Joinery Group PLC | 1,695,300 | 7,779,352 | |
| Informa PLC | 1,779,956 | 14,651,530 | |
| InterContinental Hotel Group PLC ADR (b) | 170,775 | 6,737,074 | |
| ITE Group PLC | 3,080,234 | 5,419,672 | |
| JUST EAT Ltd. (a) | 640,770 | 4,407,780 | |
| Rightmove PLC | 182,147 | 8,327,105 | |
| Shaftesbury PLC | 1,059,573 | 11,892,732 | |
| Spectris PLC | 592,778 | 14,866,730 | |
| Spirax-Sarco Engineering PLC | 339,491 | 18,333,492 | |
| Ted Baker PLC | 151,900 | 4,601,659 | |
| Topps Tiles PLC | 3,130,908 | 3,506,492 | |
| Ultra Electronics Holdings PLC | 392,558 | 8,927,523 | |
| Unite Group PLC | 1,309,123 | 8,869,099 | |
| TOTAL UNITED KINGDOM | 187,988,281 | ||
| United States of America - 6.9% | |||
| Autoliv, Inc. (b) | 56,800 | 5,497,104 | |
| Broadridge Financial Solutions, Inc. | 43,905 | 2,838,897 | |
| China Biologic Products, Inc. (a) | 94,280 | 11,135,411 | |
| Domino's Pizza, Inc. | 46,200 | 7,818,888 | |
| Energizer Holdings, Inc. | 57,009 | 2,651,489 | |
| Kennedy-Wilson Holdings, Inc. | 271,029 | 5,583,197 | |
| Martin Marietta Materials, Inc. | 31,720 | 5,880,254 | |
| Mohawk Industries, Inc. (a) | 35,800 | 6,597,940 | |
| PriceSmart, Inc. | 126,294 | 11,486,439 | |
| ResMed, Inc. | 75,095 | 4,488,428 | |
| SS&C Technologies Holdings, Inc. | 218,116 | 6,964,444 | |
| TOTAL UNITED STATES OF AMERICA | 70,942,491 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $924,582,238) | 1,000,272,122 | ||
| Nonconvertible Preferred Stocks - 1.8% | |||
| Germany - 1.8% | |||
| Sartorius AG (non-vtg.) | |||
| (Cost $8,849,834) | 242,080 | 19,019,250 | |
| Money Market Funds - 2.1% | |||
| Fidelity Cash Central Fund, 0.41% (e) | 9,612,830 | 9,615,714 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 11,863,768 | 11,866,141 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $21,480,829) | 21,481,855 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.5% | |||
| (Cost $954,912,901) | 1,040,773,227 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.5)% | (5,185,619) | ||
| NET ASSETS - 100% | $1,035,587,608 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $1,478,164 or 0.1% of net assets.
(d) Affiliated company
(e) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
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 | $257,746 |
| Fidelity Securities Lending Cash Central Fund | 117,062 |
| Total | $374,808 |
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, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| DP Poland PLC | $2,507,081 | $321,456 | $-- | $-- | $5,450,276 |
| Total | $2,507,081 | $321,456 | $-- | $-- | $5,450,276 |
Investment Valuation
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.
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $269,098,224 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $11,412,617) — See accompanying schedule: Unaffiliated issuers (cost $931,311,519) | $1,013,841,096 | |
| Fidelity Central Funds (cost $21,480,830) | 21,481,855 | |
| Other affiliated issuers (cost $2,120,552) | 5,450,276 | |
| Total Investments (cost $954,912,901) | $1,040,773,227 | |
| Cash | 85,259 | |
| Foreign currency held at value (cost $170,953) | 170,953 | |
| Receivable for investments sold | 4,749,303 | |
| Receivable for fund shares sold | 1,854,797 | |
| Dividends receivable | 3,523,084 | |
| Distributions receivable from Fidelity Central Funds | 16,186 | |
| Prepaid expenses | 2,955 | |
| Other receivables | 8,043 | |
| Total assets | 1,051,183,807 | |
| Liabilities | ||
| Payable for investments purchased | $861,625 | |
| Payable for fund shares redeemed | 1,735,629 | |
| Accrued management fee | 788,442 | |
| Distribution and service plan fees payable | 25,728 | |
| Other affiliated payables | 227,586 | |
| Other payables and accrued expenses | 93,379 | |
| Collateral on securities loaned, at value | 11,863,810 | |
| Total liabilities | 15,596,199 | |
| Net Assets | $1,035,587,608 | |
| Net Assets consist of: | ||
| Paid in capital | $1,148,134,262 | |
| Undistributed net investment income | 9,497,402 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (207,778,387) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 85,734,331 | |
| Net Assets | $1,035,587,608 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($45,151,330 ÷ 3,046,480 shares) | $14.82 | |
| Maximum offering price per share (100/94.25 of $14.82) | $15.72 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($12,307,937 ÷ 838,211 shares) | $14.68 | |
| Maximum offering price per share (100/96.50 of $14.68) | $15.21 | |
| Class C: | ||
| Net Asset Value and offering price per share ($12,624,735 ÷ 884,417 shares)(a) | $14.27 | |
| International Small Cap Opportunities: | ||
| Net Asset Value, offering price and redemption price per share ($809,952,219 ÷ 53,996,061 shares) | $15.00 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($155,551,387 ÷ 10,375,816 shares) | $14.99 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $24,100,317 | |
| Income from Fidelity Central Funds | 374,808 | |
| Income before foreign taxes withheld | 24,475,125 | |
| Less foreign taxes withheld | (1,864,442) | |
| Total income | 22,610,683 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $9,269,739 | |
| Performance adjustment | 315,755 | |
| Transfer agent fees | 2,324,940 | |
| Distribution and service plan fees | 342,195 | |
| Accounting and security lending fees | 506,368 | |
| Custodian fees and expenses | 182,238 | |
| Independent trustees' fees and expenses | 4,655 | |
| Registration fees | 109,356 | |
| Audit | 81,090 | |
| Legal | 3,289 | |
| Miscellaneous | 7,802 | |
| Total expenses before reductions | 13,147,427 | |
| Expense reductions | (38,847) | 13,108,580 |
| Net investment income (loss) | 9,502,103 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 53,777,888 | |
| Fidelity Central Funds | 3,210 | |
| Foreign currency transactions | 61,218 | |
| Total net realized gain (loss) | 53,842,316 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (43,675,907) | |
| Assets and liabilities in foreign currencies | (89,164) | |
| Total change in net unrealized appreciation (depreciation) | (43,765,071) | |
| Net gain (loss) | 10,077,245 | |
| Net increase (decrease) in net assets resulting from operations | $19,579,348 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $9,502,103 | $4,880,273 |
| Net realized gain (loss) | 53,842,316 | 32,155,951 |
| Change in net unrealized appreciation (depreciation) | (43,765,071) | 15,708,708 |
| Net increase (decrease) in net assets resulting from operations | 19,579,348 | 52,744,932 |
| Distributions to shareholders from net investment income | (4,852,691) | (3,982,311) |
| Distributions to shareholders from net realized gain | (4,655,673) | (949,656) |
| Total distributions | (9,508,364) | (4,931,967) |
| Share transactions - net increase (decrease) | 68,430,907 | 250,623,581 |
| Redemption fees | 241,368 | 196,651 |
| Total increase (decrease) in net assets | 78,743,259 | 298,633,197 |
| Net Assets | ||
| Beginning of period | 956,844,349 | 658,211,152 |
| End of period | $1,035,587,608 | $956,844,349 |
| Other Information | ||
| Undistributed net investment income end of period | $9,497,402 | $4,878,283 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.75 | $13.65 | $13.68 | $10.78 | $9.75 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .06 | .05 | .07 | .08 |
| Net realized and unrealized gain (loss) | .10 | 1.11 | .05 | 2.91 | 1.07 |
| Total from investment operations | .19 | 1.17 | .10 | 2.98 | 1.15 |
| Distributions from net investment income | (.05) | (.05) | (.06) | (.08) | (.11) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.12) | (.07) | (.13)B | (.08)C | (.12) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $14.82 | $14.75 | $13.65 | $13.68 | $10.78 |
| Total ReturnE,F | 1.30% | 8.62% | .78% | 27.85% | 12.00% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.45% | 1.52% | 1.63% | 1.70% | 1.75% |
| Expenses net of fee waivers, if any | 1.45% | 1.52% | 1.63% | 1.65% | 1.65% |
| Expenses net of all reductions | 1.45% | 1.51% | 1.63% | 1.64% | 1.64% |
| Net investment income (loss) | .62% | .38% | .33% | .59% | .85% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $45,151 | $42,289 | $25,041 | $22,052 | $18,194 |
| Portfolio turnover rateI | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.13 per share is comprised of distributions from net investment income of $.055 and distributions from net realized gain of $.079 per share.
C Total distributions of $.08 per share is comprised of distributions from net investment income of $.077 and distributions from net realized gain of $.005 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.62 | $13.53 | $13.56 | $10.69 | $9.66 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .04 | .01 | .01 | .04 | .06 |
| Net realized and unrealized gain (loss) | .10 | 1.11 | .06 | 2.89 | 1.06 |
| Total from investment operations | .14 | 1.12 | .07 | 2.93 | 1.12 |
| Distributions from net investment income | (.01) | (.01) | (.02) | (.05) | (.08) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.08) | (.03) | (.10) | (.06) | (.09) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.68 | $14.62 | $13.53 | $13.56 | $10.69 |
| Total ReturnC,D | .95% | 8.27% | .55% | 27.53% | 11.72% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.77% | 1.80% | 1.89% | 1.96% | 2.02% |
| Expenses net of fee waivers, if any | 1.77% | 1.80% | 1.89% | 1.90% | 1.90% |
| Expenses net of all reductions | 1.77% | 1.80% | 1.89% | 1.89% | 1.89% |
| Net investment income (loss) | .30% | .10% | .07% | .34% | .60% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,308 | $13,296 | $9,913 | $9,634 | $8,169 |
| Portfolio turnover rateG | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.26 | $13.23 | $13.28 | $10.48 | $9.47 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.03) | (.05) | (.06) | (.02) | .01 |
| Net realized and unrealized gain (loss) | .09 | 1.08 | .06 | 2.84 | 1.04 |
| Total from investment operations | .06 | 1.03 | – | 2.82 | 1.05 |
| Distributions from net investment income | – | – | – | (.01) | (.03) |
| Distributions from net realized gain | (.05) | – | (.05) | (.01) | (.01) |
| Total distributions | (.05) | – | (.05) | (.02) | (.04) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.27 | $14.26 | $13.23 | $13.28 | $10.48 |
| Total ReturnC,D | .44% | 7.79% | .03% | 26.91% | 11.13% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.26% | 2.27% | 2.38% | 2.45% | 2.50% |
| Expenses net of fee waivers, if any | 2.26% | 2.27% | 2.38% | 2.40% | 2.40% |
| Expenses net of all reductions | 2.25% | 2.26% | 2.38% | 2.39% | 2.39% |
| Net investment income (loss) | (.19)% | (.36)% | (.42)% | (.16)% | .10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,625 | $17,370 | $8,438 | $8,070 | $6,608 |
| Portfolio turnover rateG | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.91 | $13.80 | $13.82 | $10.88 | $9.85 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .13 | .10 | .09 | .10 | .11 |
| Net realized and unrealized gain (loss) | .11 | 1.12 | .06 | 2.95 | 1.07 |
| Total from investment operations | .24 | 1.22 | .15 | 3.05 | 1.18 |
| Distributions from net investment income | (.08) | (.09) | (.09) | (.10) | (.14) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.15) | (.11) | (.17) | (.11) | (.15) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $15.00 | $14.91 | $13.80 | $13.82 | $10.88 |
| Total ReturnC | 1.58% | 8.92% | 1.11% | 28.24% | 12.21% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.17% | 1.23% | 1.30% | 1.39% | 1.47% |
| Expenses net of fee waivers, if any | 1.17% | 1.22% | 1.30% | 1.39% | 1.40% |
| Expenses net of all reductions | 1.16% | 1.22% | 1.30% | 1.38% | 1.39% |
| Net investment income (loss) | .90% | .68% | .65% | .85% | 1.10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $809,952 | $762,563 | $584,253 | $518,121 | $334,918 |
| Portfolio turnover rateF | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Opportunities Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.91 | $13.81 | $13.83 | $10.90 | $9.86 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .13 | .10 | .08 | .11 | .11 |
| Net realized and unrealized gain (loss) | .10 | 1.13 | .07 | 2.93 | 1.08 |
| Total from investment operations | .23 | 1.23 | .15 | 3.04 | 1.19 |
| Distributions from net investment income | (.08) | (.11) | (.09) | (.10) | (.14) |
| Distributions from net realized gain | (.07) | (.02) | (.08) | (.01) | (.01) |
| Total distributions | (.15) | (.13) | (.17) | (.11) | (.15) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.99 | $14.91 | $13.81 | $13.83 | $10.90 |
| Total ReturnC | 1.56% | 8.98% | 1.11% | 28.11% | 12.32% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.16% | 1.19% | 1.36% | 1.38% | 1.44% |
| Expenses net of fee waivers, if any | 1.16% | 1.19% | 1.36% | 1.37% | 1.40% |
| Expenses net of all reductions | 1.16% | 1.18% | 1.36% | 1.37% | 1.39% |
| Net investment income (loss) | .91% | .71% | .60% | .87% | 1.10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $155,551 | $120,723 | $29,822 | $5,670 | $4,591 |
| Portfolio turnover rateF | 24% | 21% | 18% | 31% | 28% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Small Cap Opportunities 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, International Small Cap Opportunities and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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), 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 | $170,782,184 |
| Gross unrealized depreciation | (93,697,092) |
| Net unrealized appreciation (depreciation) on securities | $77,085,092 |
| Tax Cost | $963,688,135 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $11,959,956 |
| Capital loss carryforward | $(201,465,311) |
| Net unrealized appreciation (depreciation) on securities and other investments | $76,958,702 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2017 | $(201,465,311) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $9,508,364 | $ 4,931,967 |
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.
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 $372,005,221 and $241,349,228, 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. 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 International Small Cap Opportunities as compared to its benchmark index, the MSCI EAFE Small Cap Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .88% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $117,685 | $5,501 |
| Class T | .25% | .25% | 66,543 | – |
| Class B | .75% | .25% | 2,915 | 2,186 |
| Class C | .75% | .25% | 155,052 | 37,902 |
| $342,195 | $45,589 |
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 by FDC |
|
| Class A | $17,862 |
| Class T | 4,386 |
| Class B(a) | 13 |
| Class C(a) | 4,100 |
| $26,361 |
(a) When Class B and C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $114,731 | .24 |
| Class T | 41,848 | .31 |
| Class B | 817 | .28 |
| Class C | 46,193 | .30 |
| International Small Cap Opportunities | 1,834,246 | .21 |
| Class I | 287,105 | .20 |
| $2,324,940 |
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 $1,273 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $1,010.
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 $2,807 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $117,062, including $1,988 from 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 $31,440 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $102.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7,305.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $159,395 | $91,925 |
| Class T | 9,385 | 4,261 |
| International Small Cap Opportunities | 3,989,748 | 3,599,410 |
| Class I | 694,163 | 286,715 |
| Total | $4,852,691 | $3,982,311 |
| From net realized gain | ||
| Class A | $214,570 | $38,609 |
| Class T | 65,696 | 14,913 |
| Class C | 66,143 | – |
| International Small Cap Opportunities | 3,723,825 | 839,863 |
| Class I | 585,439 | 56,271 |
| Total | $4,655,673 | $949,656 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 1,351,287 | 1,605,762 | $19,658,244 | $23,674,805 |
| Reinvestment of distributions | 24,184 | 9,185 | 359,376 | 124,545 |
| Shares redeemed | (1,195,179) | (582,997) | (17,426,031) | (8,244,833) |
| Net increase (decrease) | 180,292 | 1,031,950 | $2,591,589 | $15,554,517 |
| Class T | ||||
| Shares sold | 193,483 | 309,765 | $2,768,529 | $4,543,322 |
| Reinvestment of distributions | 5,021 | 1,404 | 74,158 | 18,926 |
| Shares redeemed | (269,450) | (134,926) | (3,846,732) | (1,907,198) |
| Net increase (decrease) | (70,946) | 176,243 | $(1,004,045) | $2,655,050 |
| Class B | ||||
| Shares sold | 3,601 | 9,791 | $51,563 | $136,845 |
| Shares redeemed | (45,696) | (23,615) | (635,715) | (329,326) |
| Net increase (decrease) | (42,095) | (13,824) | $(584,152) | $(192,481) |
| Class C | ||||
| Shares sold | 246,339 | 838,785 | $3,449,372 | $12,019,463 |
| Reinvestment of distributions | 4,483 | – | 64,648 | – |
| Shares redeemed | (584,363) | (258,762) | (8,102,721) | (3,578,649) |
| Net increase (decrease) | (333,541) | 580,023 | $(4,588,701) | $8,440,814 |
| International Small Cap Opportunities | ||||
| Shares sold | 26,676,267 | 18,903,102 | $389,947,202 | $282,906,392 |
| Reinvestment of distributions | 402,267 | 239,997 | 6,034,011 | 3,280,752 |
| Shares redeemed | (24,218,791) | (10,354,861) | (357,874,849) | (146,998,081) |
| Net increase (decrease) | 2,859,743 | 8,788,238 | $38,106,364 | $139,189,063 |
| Class I | ||||
| Shares sold | 5,357,445 | 7,108,830 | $78,823,330 | $102,023,907 |
| Reinvestment of distributions | 75,351 | 23,468 | 1,129,506 | 320,812 |
| Shares redeemed | (3,153,630) | (1,195,608) | (46,042,984) | (17,368,101) |
| Net increase (decrease) | 2,279,166 | 5,936,690 | $33,909,852 | $84,976,618 |
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.
Mutual funds managed by the investment adviser or its affiliates were the owners of record, in the aggregate, of approximately 21% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Small Cap Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Small Cap Opportunities Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Small Cap Opportunities Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.44% | |||
| Actual | $1,000.00 | $1,004.10 | $7.25 | |
| Hypothetical-C | $1,000.00 | $1,017.90 | $7.30 | |
| Class T | 1.76% | |||
| Actual | $1,000.00 | $1,002.00 | $8.86 | |
| Hypothetical-C | $1,000.00 | $1,016.29 | $8.92 | |
| Class C | 2.24% | |||
| Actual | $1,000.00 | $999.30 | $11.26 | |
| Hypothetical-C | $1,000.00 | $1,013.88 | $11.34 | |
| International Small Cap Opportunities | 1.15% | |||
| Actual | $1,000.00 | $1,005.40 | $5.80 | |
| Hypothetical-C | $1,000.00 | $1,019.36 | $5.84 | |
| Class I | 1.15% | |||
| Actual | $1,000.00 | $1,005.40 | $5.80 | |
| Hypothetical-C | $1,000.00 | $1,019.36 | $5.84 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Advisor International Small Cap Opportunities 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 | |
| Advisor International Small Cap Opportunities Fund | ||||
| Class A | 12/12/16 | 12/09/16 | $0.118 | $0.040 |
| Class T | 12/12/16 | 12/09/16 | $0.055 | $0.040 |
| Class C | 12/12/16 | 12/09/16 | $0.000 | $0.000 |
| International Small Cap Opportunities | 12/12/16 | 12/09/16 | $0.168 | $0.040 |
| Class I | 12/12/16 | 12/09/16 | $0.176 | $0.040 |
Class A designates 5%, Class T designates 7%, Class C designates 9%, International Small Cap Opportunities designates 4% and Class I designates 4% of the dividends distributed in December 2015, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class C, International Small Cap Opportunities, and Class I designates 100% of the dividends distributed 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 | |
| Advisor International Small Cap Opportunities Fund | |||
| Class A | 12/07/2015 | $0.1391 | $0.0171 |
| Class T | 12/07/2015 | $0.0971 | $0.0171 |
| Class C | 12/07/2015 | $0.0701 | $0.0171 |
| International Small Cap Opportunities | 12/07/2015 | $0.1621 | $0.0171 |
| Class I | 12/07/2015 | $0.1701 | $0.0171 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Small Cap Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Small Cap Opportunities Fund
Fidelity International Small Cap Opportunities Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
ILS-ANN-1216
1.815075.112
|
Fidelity Advisor® Global Commodity Stock Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® Global Commodity Stock Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Class A (incl. 5.75% sales charge) | 3.01% | (6.61)% | 1.19% |
| Class T (incl. 3.50% sales charge) | 5.26% | (6.41)% | 1.24% |
| Class C (incl. contingent deferred sales charge) | 7.46% | (6.21)% | 1.21% |
| Class I | 9.63% | (5.22)% | 2.28% |
A From March 25, 2009
Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Global Commodity Stock Fund - Class A on March 25, 2009, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) Index performed over the same period.
| Period Ending Values | ||
|
| $10,943 | Fidelity Advisor® Global Commodity Stock Fund - Class A |
|
| $23,902 | MSCI ACWI (All Country World Index) Index |
Management's Discussion of Fund Performance
Market Recap: Global equities eked a 2.48% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) Index. After early-2016 volatility largely driven by concern about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-caps outpaced large-cap stocks; value bested growth. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodities prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific group (+9%). The U.S. (+4%) also rose, but Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+13%) and energy (+6%) overcame early-2016 lows. Technology (+11%) also performed well. Financials (-1%) trailed ex the recently created real estate sector (+4%). Telecom services (+1%) lost momentum amid a mode switch from “risk off” to “risk on,” though utilities (+7%), mostly in the U.S., outperformed. Meanwhile, health care (-7%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager S. Joseph Wickwire II, CFA: The fund’s share classes (excluding sales charges, if applicable) gained roughly 9% for the fiscal year, underperforming the 11.42% gain of the industry index, the MSCI All Country World Commodity Producers Sector Capped Index. At the same time, the fund significantly outdistanced the broader global equity market, as measured by the MSCI ACWI (All Country World Index) Index. A strong rebound in the broader commodity complex after January 2016 helped lift commodity stocks this period. Versus the commodities-focused industry index, the fund was held back by positioning in our two biggest areas of investment: diversified metals & mining and fertilizers & agricultural chemicals. In both cases, I misjudged the timing for when prices would improve. Among individual stocks, the fund's biggest detractor was nitrogen fertilizer maker CF Industries Holdings, which struggled amid low fertilizer prices. On the plus side, stock picks and a slight overweighting in gold stocks helped most. The fund's top relative contributor was gold miner B2Gold, which executed well.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Monsanto Co. | 5.7 | 5.5 |
| BHP Billiton PLC | 4.2 | 3.3 |
| Syngenta AG (Switzerland) | 4.2 | 4.5 |
| Chevron Corp. | 4.0 | 4.0 |
| Rio Tinto PLC | 3.5 | 3.6 |
| Archer Daniels Midland Co. | 3.4 | 0.7 |
| Suncor Energy, Inc. | 2.4 | 1.2 |
| Glencore Xstrata PLC | 2.4 | 1.2 |
| Potash Corp. of Saskatchewan, Inc. | 2.3 | 3.0 |
| Anadarko Petroleum Corp. | 2.3 | 2.1 |
| 34.4 |
Top Sectors (% of fund's net assets)
| As of October 31, 2016 | ||
| Agriculture | 32.2% | |
| Energy | 30.3% | |
| Metals | 30.2% | |
| Other | 6.4% | |
| Short-Term Investments and Net Other Assets | 1.0% | |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
| As of April 30, 2016 | ||
| Agriculture | 34.2% | |
| Energy | 32.2% | |
| Metals | 26.0% | |
| Other | 5.5% | |
| Short-Term Investments and Net Other Assets | 2.1% | |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.5% | |||
| Shares | Value | ||
| Aerospace & Defense - 0.5% | |||
| Aerospace & Defense - 0.5% | |||
| Rolls-Royce Holdings PLC | 184,620 | $1,638,800 | |
| Chemicals - 22.7% | |||
| Commodity Chemicals - 0.5% | |||
| LyondellBasell Industries NV Class A | 22,800 | 1,813,740 | |
| Diversified Chemicals - 1.0% | |||
| Ashland Global Holdings, Inc. | 6,300 | 703,899 | |
| E.I. du Pont de Nemours & Co. | 10,900 | 749,811 | |
| Eastman Chemical Co. | 15,100 | 1,085,841 | |
| The Dow Chemical Co. | 20,000 | 1,076,200 | |
| 3,615,751 | |||
| Fertilizers & Agricultural Chemicals - 20.7% | |||
| Agrium, Inc. | 65,000 | 5,966,935 | |
| CF Industries Holdings, Inc. (a) | 314,460 | 7,550,185 | |
| FMC Corp. | 42,900 | 2,011,581 | |
| Monsanto Co. | 200,100 | 20,164,076 | |
| OCI NV (a)(b) | 52,800 | 733,209 | |
| Potash Corp. of Saskatchewan, Inc. | 503,900 | 8,193,588 | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | 75,000 | 2,194,500 | |
| Syngenta AG (Switzerland) | 36,998 | 14,805,338 | |
| The Mosaic Co. | 273,761 | 6,441,596 | |
| UPL Ltd. (b) | 85,400 | 893,362 | |
| Yara International ASA | 111,400 | 3,936,991 | |
| 72,891,361 | |||
| Specialty Chemicals - 0.5% | |||
| W.R. Grace & Co. | 23,700 | 1,586,952 | |
| TOTAL CHEMICALS | 79,907,804 | ||
| Construction & Engineering - 0.2% | |||
| Construction & Engineering - 0.2% | |||
| Dycom Industries, Inc. (b) | 10,700 | 823,151 | |
| Construction Materials - 0.2% | |||
| Construction Materials - 0.2% | |||
| West China Cement Ltd. (b) | 7,176,000 | 730,966 | |
| Containers & Packaging - 0.4% | |||
| Paper Packaging - 0.4% | |||
| Smurfit Kappa Group PLC | 42,500 | 931,221 | |
| WestRock Co. | 14,659 | 677,099 | |
| 1,608,320 | |||
| Diversified Financial Services - 0.2% | |||
| Other Diversified Financial Services - 0.2% | |||
| Extraction Oil & Gas, Inc.(a) | 33,787 | 721,690 | |
| Electrical Equipment - 0.5% | |||
| Electrical Components & Equipment - 0.5% | |||
| Regal Beloit Corp. | 27,700 | 1,637,070 | |
| Food & Staples Retailing - 0.0% | |||
| Food Distributors - 0.0% | |||
| Andersons, Inc. | 1,000 | 38,050 | |
| Food Products - 7.2% | |||
| Agricultural Products - 6.9% | |||
| Archer Daniels Midland Co. | 278,000 | 12,112,460 | |
| Bunge Ltd. | 82,200 | 5,097,222 | |
| Darling International, Inc. (b) | 107,500 | 1,462,000 | |
| First Resources Ltd. | 1,359,100 | 1,777,942 | |
| Golden Agri-Resources Ltd. | 2,515,100 | 696,003 | |
| Ingredion, Inc. | 8,400 | 1,101,828 | |
| SLC Agricola SA | 408,400 | 2,022,808 | |
| 24,270,263 | |||
| Packaged Foods & Meats - 0.3% | |||
| Adecoagro SA (b) | 97,700 | 1,074,700 | |
| TOTAL FOOD PRODUCTS | 25,344,963 | ||
| Household Products - 0.2% | |||
| Household Products - 0.2% | |||
| Svenska Cellulosa AB (SCA) (B Shares) | 25,000 | 708,303 | |
| Independent Power and Renewable Electricity Producers - 0.6% | |||
| Independent Power Producers & Energy Traders - 0.3% | |||
| China Resources Power Holdings Co. Ltd. | 610,000 | 1,036,651 | |
| Renewable Electricity - 0.3% | |||
| NextEra Energy Partners LP | 38,700 | 1,058,445 | |
| TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 2,095,096 | ||
| Machinery - 1.3% | |||
| Agricultural & Farm Machinery - 0.5% | |||
| Jain Irrigation Systems Ltd. (b) | 1,131,194 | 1,822,990 | |
| Construction Machinery & Heavy Trucks - 0.5% | |||
| Allison Transmission Holdings, Inc. | 27,700 | 811,333 | |
| Caterpillar, Inc. | 8,700 | 726,102 | |
| 1,537,435 | |||
| Industrial Machinery - 0.3% | |||
| Rexnord Corp. (b) | 55,120 | 1,096,337 | |
| TOTAL MACHINERY | 4,456,762 | ||
| Metals & Mining - 29.2% | |||
| Aluminum - 0.4% | |||
| Arconic, Inc. | 47,300 | 1,358,456 | |
| Copper - 1.1% | |||
| First Quantum Minerals Ltd. | 154,024 | 1,462,958 | |
| Freeport-McMoRan, Inc. | 228,300 | 2,552,394 | |
| 4,015,352 | |||
| Diversified Metals & Mining - 12.1% | |||
| Anglo American PLC (United Kingdom) (b) | 207,551 | 2,873,220 | |
| BHP Billiton PLC | 987,583 | 14,850,352 | |
| Glencore Xstrata PLC (b) | 2,702,269 | 8,268,943 | |
| Grupo Mexico SA de CV Series B | 350,511 | 863,621 | |
| Ivanhoe Mines Ltd. (b) | 405,400 | 631,690 | |
| Korea Zinc Co. Ltd. | 1,310 | 521,134 | |
| MMC Norilsk Nickel PJSC sponsored ADR | 45,800 | 690,664 | |
| Rio Tinto PLC | 353,787 | 12,303,052 | |
| South32 Ltd. | 378,378 | 739,729 | |
| Teck Resources Ltd. Class B (sub. vtg.) | 33,900 | 731,935 | |
| 42,474,340 | |||
| Gold - 10.3% | |||
| Acacia Mining PLC | 114,600 | 727,302 | |
| Agnico Eagle Mines Ltd. (Canada) | 55,900 | 2,838,968 | |
| AngloGold Ashanti Ltd. sponsored ADR (b) | 84,900 | 1,166,526 | |
| Argonaut Gold, Inc. (b) | 179,200 | 362,061 | |
| B2Gold Corp. (b) | 751,180 | 2,172,950 | |
| Barrick Gold Corp. | 336,900 | 5,927,712 | |
| Continental Gold, Inc. (b) | 336,400 | 925,457 | |
| Detour Gold Corp. (b) | 48,600 | 926,491 | |
| Eldorado Gold Corp. (b) | 229,300 | 723,134 | |
| Franco-Nevada Corp. | 27,500 | 1,799,914 | |
| Gold Fields Ltd. sponsored ADR | 160,900 | 667,735 | |
| Goldcorp, Inc. | 119,610 | 1,816,488 | |
| New Gold, Inc. (b) | 185,400 | 731,206 | |
| Newcrest Mining Ltd. (b) | 133,922 | 2,298,288 | |
| Newmont Mining Corp. | 142,400 | 5,274,496 | |
| Premier Gold Mines Ltd. (b) | 518,700 | 1,090,535 | |
| Randgold Resources Ltd. sponsored ADR | 30,700 | 2,724,011 | |
| SEMAFO, Inc. (b) | 185,200 | 726,275 | |
| Sibanye Gold Ltd. ADR | 65,000 | 728,000 | |
| Tahoe Resources, Inc. | 113,300 | 1,358,282 | |
| Torex Gold Resources, Inc. (b) | 60,570 | 1,126,684 | |
| 36,112,515 | |||
| Precious Metals & Minerals - 0.5% | |||
| Gold Standard Ventures Corp. (b) | 296,700 | 703,427 | |
| Impala Platinum Holdings Ltd. (b) | 67,400 | 270,925 | |
| Industrias Penoles SA de CV | 31,150 | 755,455 | |
| 1,729,807 | |||
| Silver - 0.8% | |||
| Silver Wheaton Corp. | 122,000 | 2,939,715 | |
| Steel - 4.0% | |||
| AK Steel Holding Corp. (b) | 70,000 | 364,000 | |
| ArcelorMittal SA Class A unit (a)(b) | 374,610 | 2,521,125 | |
| Hitachi Metals Ltd. | 57,000 | 713,111 | |
| Hyundai Steel Co. | 25,252 | 1,090,661 | |
| JFE Holdings, Inc. | 51,700 | 742,691 | |
| Nippon Steel & Sumitomo Metal Corp. | 61,700 | 1,222,880 | |
| Nucor Corp. | 60,992 | 2,979,459 | |
| POSCO | 15,462 | 3,218,610 | |
| Thyssenkrupp AG | 58,400 | 1,352,050 | |
| 14,204,587 | |||
| TOTAL METALS & MINING | 102,834,772 | ||
| Oil, Gas & Consumable Fuels - 29.8% | |||
| Coal & Consumable Fuels - 0.3% | |||
| Cameco Corp. | 122,800 | 945,742 | |
| Integrated Oil & Gas - 14.4% | |||
| BP PLC | 297,700 | 1,759,915 | |
| Cenovus Energy, Inc. | 119,400 | 1,722,501 | |
| Chevron Corp. | 135,200 | 14,162,200 | |
| China Petroleum & Chemical Corp. (H Shares) | 1,338,000 | 967,643 | |
| Exxon Mobil Corp. | 67,100 | 5,590,772 | |
| Imperial Oil Ltd. | 46,200 | 1,498,323 | |
| Lukoil PJSC sponsored ADR | 41,700 | 2,032,875 | |
| Occidental Petroleum Corp. | 24,700 | 1,800,877 | |
| Royal Dutch Shell PLC: | |||
| Class A (United Kingdom) | 83,900 | 2,089,700 | |
| Class B (United Kingdom) | 44,393 | 1,145,007 | |
| Statoil ASA | 106,100 | 1,732,189 | |
| Suncor Energy, Inc. | 289,432 | 8,685,334 | |
| Total SA | 160,000 | 7,664,785 | |
| 50,852,121 | |||
| Oil & Gas Exploration & Production - 15.1% | |||
| Anadarko Petroleum Corp. | 134,900 | 8,018,456 | |
| Apache Corp. | 26,800 | 1,594,064 | |
| Cabot Oil & Gas Corp. | 47,300 | 987,624 | |
| Canadian Natural Resources Ltd. | 16,600 | 526,849 | |
| Carrizo Oil & Gas, Inc. (b) | 21,200 | 717,196 | |
| Cimarex Energy Co. | 5,600 | 723,128 | |
| CNOOC Ltd. sponsored ADR | 12,000 | 1,505,760 | |
| Concho Resources, Inc. (b) | 5,700 | 723,558 | |
| ConocoPhillips Co. | 165,400 | 7,186,630 | |
| Continental Resources, Inc. (b) | 14,800 | 723,868 | |
| Crescent Point Energy Corp. | 59,900 | 713,191 | |
| Devon Energy Corp. | 35,800 | 1,356,462 | |
| Diamondback Energy, Inc. (b) | 8,000 | 730,320 | |
| EOG Resources, Inc. | 37,000 | 3,345,540 | |
| EQT Corp. | 19,201 | 1,267,266 | |
| Hess Corp. | 21,400 | 1,026,558 | |
| INPEX Corp. | 73,300 | 688,896 | |
| Marathon Oil Corp. | 58,700 | 773,666 | |
| Newfield Exploration Co. (b) | 21,100 | 856,449 | |
| Noble Energy, Inc. | 94,200 | 3,247,074 | |
| NOVATEK OAO GDR (Reg. S) | 13,400 | 1,432,460 | |
| Oil Search Ltd. ADR | 136,500 | 691,545 | |
| Parsley Energy, Inc. Class A (b) | 30,800 | 1,013,320 | |
| PDC Energy, Inc. (b) | 29,700 | 1,821,501 | |
| Pioneer Natural Resources Co. | 12,210 | 2,185,834 | |
| PrairieSky Royalty Ltd. | 83,898 | 1,824,577 | |
| QEP Resources, Inc. | 83,400 | 1,340,238 | |
| Range Resources Corp. | 22,900 | 773,791 | |
| Rice Energy, Inc. (b) | 32,300 | 713,507 | |
| Santos Ltd. | 261,000 | 708,797 | |
| SM Energy Co. | 22,400 | 753,312 | |
| Southwestern Energy Co. (b) | 70,500 | 732,495 | |
| Whiting Petroleum Corp. (b) | 150,900 | 1,243,416 | |
| Woodside Petroleum Ltd. | 55,911 | 1,206,619 | |
| 53,153,967 | |||
| TOTAL OIL, GAS & CONSUMABLE FUELS | 104,951,830 | ||
| Paper & Forest Products - 4.3% | |||
| Forest Products - 1.1% | |||
| Boise Cascade Co. (b) | 47,000 | 904,750 | |
| Norbord, Inc. | 30,800 | 724,476 | |
| TFS Corp. Ltd. | 1,333,847 | 1,420,520 | |
| West Fraser Timber Co. Ltd. | 31,800 | 1,088,687 | |
| 4,138,433 | |||
| Paper Products - 3.2% | |||
| Empresas CMPC SA | 587,079 | 1,271,636 | |
| Fibria Celulose SA | 92,400 | 739,316 | |
| Mondi PLC | 116,000 | 2,266,065 | |
| Nine Dragons Paper (Holdings) Ltd. | 821,000 | 669,033 | |
| Oji Holdings Corp. | 332,000 | 1,408,792 | |
| Sappi Ltd. (b) | 134,161 | 746,237 | |
| Stora Enso Oyj (R Shares) | 215,100 | 2,034,226 | |
| UPM-Kymmene Corp. | 88,700 | 2,064,253 | |
| 11,199,558 | |||
| TOTAL PAPER & FOREST PRODUCTS | 15,337,991 | ||
| Semiconductors & Semiconductor Equipment - 0.2% | |||
| Semiconductor Equipment - 0.2% | |||
| SolarEdge Technologies, Inc. (a)(b) | 66,900 | 916,530 | |
| TOTAL COMMON STOCKS | |||
| (Cost $416,193,454) | 343,752,098 | ||
| Nonconvertible Preferred Stocks - 1.5% | |||
| Aerospace & Defense - 0.0% | |||
| Aerospace & Defense - 0.0% | |||
| Rolls-Royce Holdings PLC: | |||
| (C Shares) (b) | 8,542,720 | 10,456 | |
| 0.00% | 8,202,720 | 10,040 | |
| 20,496 | |||
| Metals & Mining - 1.0% | |||
| Steel - 1.0% | |||
| Vale SA (PN-A) sponsored ADR | 564,100 | 3,632,804 | |
| Oil, Gas & Consumable Fuels - 0.2% | |||
| Integrated Oil & Gas - 0.2% | |||
| Petroleo Brasileiro SA - Petrobras (PN) sponsored (non-vtg.) (b) | 62,700 | 693,462 | |
| Paper & Forest Products - 0.3% | |||
| Paper Products - 0.3% | |||
| Suzano Papel e Celulose SA | 243,700 | 859,669 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $6,205,626) | 5,206,431 | ||
| Money Market Funds - 2.9% | |||
| Fidelity Cash Central Fund, 0.41% (c) | 2,396,109 | 2,396,827 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 7,972,566 | 7,974,160 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $10,370,987) | 10,370,987 | ||
| TOTAL INVESTMENT PORTFOLIO - 101.9% | |||
| (Cost $432,770,067) | 359,329,516 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.9)% | (6,800,467) | ||
| NET ASSETS - 100% | $352,529,049 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $18,110 |
| Fidelity Securities Lending Cash Central Fund | 176,619 |
| Total | $194,729 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $343,752,098 | $281,576,707 | $62,175,391 | $-- |
| Nonconvertible Preferred Stocks | 5,206,431 | 5,206,431 | -- | -- |
| Money Market Funds | 10,370,987 | 10,370,987 | -- | -- |
| Total Investments in Securities: | $359,329,516 | $297,154,125 | $62,175,391 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $9,521,448 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 41.6% |
| Canada | 17.2% |
| United Kingdom | 11.2% |
| Switzerland | 4.2% |
| Bailiwick of Jersey | 3.4% |
| Brazil | 2.3% |
| France | 2.2% |
| Australia | 1.8% |
| Bermuda | 1.7% |
| Norway | 1.6% |
| Korea (South) | 1.4% |
| Japan | 1.4% |
| Russia | 1.2% |
| Finland | 1.2% |
| Luxembourg | 1.0% |
| South Africa | 1.0% |
| Chile | 1.0% |
| Others (Individually Less Than 1%) | 4.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $7,663,851) — See accompanying schedule: Unaffiliated issuers (cost $422,399,080) | $348,958,529 | |
| Fidelity Central Funds (cost $10,370,987) | 10,370,987 | |
| Total Investments (cost $432,770,067) | $359,329,516 | |
| Receivable for investments sold | 3,650,640 | |
| Receivable for fund shares sold | 261,697 | |
| Dividends receivable | 569,742 | |
| Distributions receivable from Fidelity Central Funds | 2,610 | |
| Prepaid expenses | 887 | |
| Other receivables | 10,329 | |
| Total assets | 363,825,421 | |
| Liabilities | ||
| Payable for investments purchased | $2,623,841 | |
| Payable for fund shares redeemed | 319,510 | |
| Accrued management fee | 207,763 | |
| Distribution and service plan fees payable | 20,149 | |
| Other affiliated payables | 93,587 | |
| Other payables and accrued expenses | 58,267 | |
| Collateral on securities loaned, at value | 7,973,255 | |
| Total liabilities | 11,296,372 | |
| Net Assets | $352,529,049 | |
| Net Assets consist of: | ||
| Paid in capital | $515,009,368 | |
| Undistributed net investment income | 3,009,856 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (92,019,133) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (73,471,042) | |
| Net Assets | $352,529,049 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($34,791,288 ÷ 3,241,263 shares) | $10.73 | |
| Maximum offering price per share (100/94.25 of $10.73) | $11.38 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($6,068,177 ÷ 566,145 shares) | $10.72 | |
| Maximum offering price per share (100/96.50 of $10.72) | $11.11 | |
| Class C: | ||
| Net Asset Value and offering price per share ($12,619,897 ÷ 1,189,052 shares)(a) | $10.61 | |
| Global Commodity Stock: | ||
| Net Asset Value, offering price and redemption price per share ($228,981,854 ÷ 21,270,575 shares) | $10.77 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($70,067,833 ÷ 6,509,838 shares) | $10.76 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $7,251,993 | |
| Income from Fidelity Central Funds | 194,729 | |
| Income before foreign taxes withheld | 7,446,722 | |
| Less foreign taxes withheld | (488,823) | |
| Total income | 6,957,899 | |
| Expenses | ||
| Management fee | $1,897,794 | |
| Transfer agent fees | 761,119 | |
| Distribution and service plan fees | 218,802 | |
| Accounting and security lending fees | 142,214 | |
| Custodian fees and expenses | 64,974 | |
| Independent trustees' fees and expenses | 1,125 | |
| Registration fees | 92,080 | |
| Audit | 62,450 | |
| Legal | 3,377 | |
| Miscellaneous | 2,170 | |
| Total expenses before reductions | 3,246,105 | |
| Expense reductions | (20,847) | 3,225,258 |
| Net investment income (loss) | 3,732,641 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (22,391,117) | |
| Fidelity Central Funds | 2,292 | |
| Foreign currency transactions | (68,057) | |
| Total net realized gain (loss) | (22,456,882) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | 48,483,094 | |
| Assets and liabilities in foreign currencies | (4,699) | |
| Total change in net unrealized appreciation (depreciation) | 48,478,395 | |
| Net gain (loss) | 26,021,513 | |
| Net increase (decrease) in net assets resulting from operations | $29,754,154 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $3,732,641 | $5,601,197 |
| Net realized gain (loss) | (22,456,882) | (22,741,457) |
| Change in net unrealized appreciation (depreciation) | 48,478,395 | (54,129,193) |
| Net increase (decrease) in net assets resulting from operations | 29,754,154 | (71,269,453) |
| Distributions to shareholders from net investment income | (5,140,876) | (3,898,874) |
| Distributions to shareholders from net realized gain | (224,075) | (629,272) |
| Total distributions | (5,364,951) | (4,528,146) |
| Share transactions - net increase (decrease) | 97,100,151 | (20,805,112) |
| Redemption fees | 14,543 | 7,987 |
| Total increase (decrease) in net assets | 121,503,897 | (96,594,724) |
| Net Assets | ||
| Beginning of period | 231,025,152 | 327,619,876 |
| End of period | $352,529,049 | $231,025,152 |
| Other Information | ||
| Undistributed net investment income end of period | $3,009,856 | $4,650,806 |
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.05 | $13.25 | $14.17 | $14.59 | $15.14 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .22 | .15 | .16 | .11 |
| Net realized and unrealized gain (loss) | .79 | (3.25) | (.91) | (.45) | (.59) |
| Total from investment operations | .90 | (3.03) | (.76) | (.29) | (.48) |
| Distributions from net investment income | (.21) | (.14) | (.15) | (.13) | (.05) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.22) | (.17) | (.16) | (.13) | (.07)B |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.73 | $10.05 | $13.25 | $14.17 | $14.59 |
| Total ReturnD,E,F | 9.29% | (23.16)% | (5.41)% | (2.00)% | (3.19)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.38% | 1.34% | 1.35% | 1.36% | 1.34% |
| Expenses net of fee waivers, if any | 1.38% | 1.34% | 1.35% | 1.35% | 1.34% |
| Expenses net of all reductions | 1.37% | 1.34% | 1.35% | 1.34% | 1.33% |
| Net investment income (loss) | 1.18% | 1.85% | 1.05% | 1.12% | .80% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $34,791 | $31,391 | $51,586 | $71,293 | $99,694 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.07 per share is comprised of distributions from net investment income of $.052 and distributions from net realized gain of $.014 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.02 | $13.21 | $14.13 | $14.54 | $15.08 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .19 | .11 | .12 | .08 |
| Net realized and unrealized gain (loss) | .79 | (3.25) | (.90) | (.45) | (.60) |
| Total from investment operations | .88 | (3.06) | (.79) | (.33) | (.52) |
| Distributions from net investment income | (.17) | (.10) | (.11) | (.08) | (.01) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.18) | (.13) | (.13)B | (.08) | (.02) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.72 | $10.02 | $13.21 | $14.13 | $14.54 |
| Total ReturnD,E,F | 9.08% | (23.40)% | (5.65)% | (2.26)% | (3.43)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.65% | 1.63% | 1.62% | 1.62% | 1.61% |
| Expenses net of fee waivers, if any | 1.65% | 1.63% | 1.62% | 1.61% | 1.61% |
| Expenses net of all reductions | 1.64% | 1.62% | 1.62% | 1.60% | 1.60% |
| Net investment income (loss) | .90% | 1.57% | .78% | .86% | .53% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $6,068 | $6,335 | $9,867 | $12,551 | $16,692 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.13 per share is comprised of distributions from net investment income of $.113 and distributions from net realized gain of $.013 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $9.92 | $13.06 | $13.96 | $14.37 | $14.95 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .04 | .13 | .04 | .05 | .01 |
| Net realized and unrealized gain (loss) | .78 | (3.22) | (.89) | (.44) | (.59) |
| Total from investment operations | .82 | (3.09) | (.85) | (.39) | (.58) |
| Distributions from net investment income | (.12) | (.03) | (.03) | (.02) | – |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | – |
| Total distributions | (.13) | (.05)B | (.05)C | (.02) | – |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.61 | $9.92 | $13.06 | $13.96 | $14.37 |
| Total ReturnE,F,G | 8.46% | (23.74)% | (6.13)% | (2.75)% | (3.88)% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 2.13% | 2.12% | 2.11% | 2.11% | 2.10% |
| Expenses net of fee waivers, if any | 2.13% | 2.12% | 2.11% | 2.11% | 2.10% |
| Expenses net of all reductions | 2.12% | 2.11% | 2.11% | 2.10% | 2.09% |
| Net investment income (loss) | .43% | 1.08% | .29% | .36% | .03% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,620 | $11,274 | $17,659 | $23,830 | $31,865 |
| Portfolio turnover rateJ | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.05 per share is comprised of distributions from net investment income of $.025 and distributions from net realized gain of $.026 per share.
C Total distributions of $.05 per share is comprised of distributions from net investment income of $.033 and distributions from net realized gain of $.013 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Global Commodity Stock Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.09 | $13.31 | $14.24 | $14.66 | $15.21 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .14 | .25 | .19 | .19 | .15 |
| Net realized and unrealized gain (loss) | .79 | (3.27) | (.92) | (.45) | (.60) |
| Total from investment operations | .93 | (3.02) | (.73) | (.26) | (.45) |
| Distributions from net investment income | (.24) | (.18) | (.19) | (.16) | (.08) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.25) | (.20)B | (.20) | (.16) | (.10)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.77 | $10.09 | $13.31 | $14.24 | $14.66 |
| Total ReturnE,F | 9.62% | (22.97)% | (5.16)% | (1.75)% | (2.96)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.13% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of fee waivers, if any | 1.13% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of all reductions | 1.12% | 1.11% | 1.11% | 1.09% | 1.09% |
| Net investment income (loss) | 1.43% | 2.08% | 1.29% | 1.37% | 1.04% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $228,982 | $156,320 | $223,084 | $273,476 | $387,242 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.20 per share is comprised of distributions from net investment income of $.178 and distributions from net realized gain of $.026 per share.
C Total distributions of $.10 per share is comprised of distributions from net investment income of $.084 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.09 | $13.31 | $14.24 | $14.67 | $15.22 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16 | .25 | .19 | .20 | .16 |
| Net realized and unrealized gain (loss) | .77 | (3.26) | (.92) | (.45) | (.60) |
| Total from investment operations | .93 | (3.01) | (.73) | (.25) | (.44) |
| Distributions from net investment income | (.25) | (.19) | (.19) | (.18) | (.09) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.26) | (.21)B | (.20) | (.18) | (.11)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.76 | $10.09 | $13.31 | $14.24 | $14.67 |
| Total ReturnE,F | 9.63% | (22.93)% | (5.16)% | (1.71)% | (2.90)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.01% | 1.09% | 1.06% | 1.04% | 1.04% |
| Expenses net of fee waivers, if any | 1.01% | 1.08% | 1.06% | 1.04% | 1.04% |
| Expenses net of all reductions | 1.00% | 1.08% | 1.06% | 1.03% | 1.03% |
| Net investment income (loss) | 1.55% | 2.11% | 1.34% | 1.43% | 1.10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $70,068 | $24,841 | $23,840 | $31,613 | $50,540 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.21 per share is comprised of distributions from net investment income of $.186 and distributions from net realized gain of $.026 per share.
C Total distributions of $.11 per share is comprised of distributions from net investment income of $.093 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Global Commodity Stock 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, Global Commodity Stock and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period May 1, 2016 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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), partnerships, 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 | $15,272,041 |
| Gross unrealized depreciation | (95,148,056) |
| Net unrealized appreciation (depreciation) on securities | $(79,876,015) |
| Tax Cost | $439,205,531 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $5,299,952 |
| Capital loss carryforward | $(87,874,265) |
| Net unrealized appreciation (depreciation) on securities and other investments | $(79,906,001) |
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 | |
| 2019 | $(6,952,413) |
| No expiration | |
| Short-term | (8,754,263) |
| Long-term | (72,167,588) |
| Total no expiration | (80,921,851) |
| Total capital loss carryforward | $(87,874,264) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $5,364,951 | $ 4,528,146 |
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 $321,091,890 and $228,853,844, 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 annual management fee rate was .69% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $76,091 | $393 |
| Class T | .25% | .25% | 28,441 | – |
| Class B | .75% | .25% | 4,719 | 3,539 |
| Class C | .75% | .25% | 109,551 | 17,152 |
| $218,802 | $21,084 |
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 by FDC |
|
| Class A | $21,557 |
| Class T | 1,769 |
| Class B(a) | 386 |
| Class C(a) | 708 |
| $24,420 |
(a) 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-Level Average Net Assets |
|
| Class A | $91,970 | .30 |
| Class T | 18,383 | .32 |
| Class B | 1,315 | .28 |
| Class C | 33,264 | .30 |
| Global Commodity Stock | 529,302 | .30 |
| Class I | 86,885 | .18 |
| $761,119 |
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 $9,978 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $699 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $176,619. 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 $19,393 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,454.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $638,599 | $520,699 |
| Class T | 103,956 | 72,766 |
| Class B | 8,861 | 1,871 |
| Class C | 133,173 | 32,755 |
| Global Commodity Stock | 3,642,366 | 2,937,401 |
| Class I | 613,921 | 333,382 |
| Total | $5,140,876 | $3,898,874 |
| From net realized gain | ||
| Class A | $30,410 | $97,397 |
| Class T | 6,044 | 19,110 |
| Class B | 836 | 3,040 |
| Class C | 11,098 | 34,065 |
| Global Commodity Stock | 151,130 | 429,058 |
| Class I | 24,557 | 46,602 |
| Total | $224,075 | $629,272 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 995,820 | 526,290 | $9,707,856 | $6,210,169 |
| Reinvestment of distributions | 70,559 | 46,881 | 655,495 | 594,452 |
| Shares redeemed | (948,589) | (1,342,823) | (9,072,163) | (16,036,860) |
| Net increase (decrease) | 117,790 | (769,652) | $1,291,188 | $(9,232,239) |
| Class T | ||||
| Shares sold | 109,904 | 79,898 | $1,057,407 | $963,935 |
| Reinvestment of distributions | 11,521 | 7,092 | 107,030 | 89,851 |
| Shares redeemed | (187,357) | (201,781) | (1,802,838) | (2,371,414) |
| Net increase (decrease) | (65,932) | (114,791) | $(638,401) | $(1,317,628) |
| Class B | ||||
| Shares sold | 2,904 | 580 | $29,587 | $7,071 |
| Reinvestment of distributions | 982 | 371 | 9,133 | 4,698 |
| Shares redeemed | (90,607) | (35,007) | (897,527) | (422,886) |
| Net increase (decrease) | (86,721) | (34,056) | $(858,807) | $(411,117) |
| Class C | ||||
| Shares sold | 318,100 | 206,447 | $3,098,053 | $2,471,711 |
| Reinvestment of distributions | 14,787 | 4,962 | 136,635 | 62,526 |
| Shares redeemed | (280,508) | (426,784) | (2,667,860) | (5,161,590) |
| Net increase (decrease) | 52,379 | (215,375) | $566,828 | $(2,627,353) |
| Global Commodity Stock | ||||
| Shares sold | 11,244,608 | 4,004,137 | $110,744,052 | $47,467,615 |
| Reinvestment of distributions | 376,092 | 238,065 | 3,493,876 | 3,023,431 |
| Shares redeemed | (5,847,902) | (5,506,523) | (57,190,452) | (65,599,040) |
| Net increase (decrease) | 5,772,798 | (1,264,321) | $57,047,476 | $(15,107,994) |
| Class I | ||||
| Shares sold | 6,770,473 | 1,576,324 | $66,305,135 | $18,219,363 |
| Reinvestment of distributions | 60,388 | 24,972 | 560,405 | 316,895 |
| Shares redeemed | (2,783,838) | (929,289) | (27,173,673) | (10,645,039) |
| Net increase (decrease) | 4,047,023 | 672,007 | $39,691,867 | $7,891,219 |
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 18% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Global Commodity Stock Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Global Commodity Stock Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Global Commodity Stock Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Christopher S. Bartel (1971)
Year of Election or Appointment: 2009
Vice President
Mr. Bartel also serves as Vice President of other funds. Mr. Bartel serves as Head of Global Fixed Income Research (2016-present). Previously, Mr. Bartel served as Head of Global Equity Research (2010-2016), a Director of Fidelity Management & Research (Hong Kong) (investment adviser firm, 2012-2016), a Director, President, and Chief Executive Officer of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2012-2016), Senior Vice President of Equity Research (2009-2010), Managing Director of Research (2006-2009), and an analyst and portfolio manager (2000-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.34% | |||
| Actual | $1,000.00 | $1,029.80 | $6.84 | |
| Hypothetical-C | $1,000.00 | $1,018.40 | $6.80 | |
| Class T | 1.61% | |||
| Actual | $1,000.00 | $1,028.80 | $8.21 | |
| Hypothetical-C | $1,000.00 | $1,017.04 | $8.16 | |
| Class C | 2.10% | |||
| Actual | $1,000.00 | $1,026.10 | $10.70 | |
| Hypothetical-C | $1,000.00 | $1,014.58 | $10.63 | |
| Global Commodity Stock | 1.10% | |||
| Actual | $1,000.00 | $1,031.60 | $5.62 | |
| Hypothetical-C | $1,000.00 | $1,019.61 | $5.58 | |
| Class I | .98% | |||
| Actual | $1,000.00 | $1,031.60 | $5.00 | |
| Hypothetical-C | $1,000.00 | $1,020.21 | $4.98 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Global Commodity Stock 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 Global Commodity Stock Fund | ||||
| Class A | 12/12/16 | 12/09/16 | $0.078 | $0.068 |
| Class T | 12/12/16 | 12/09/16 | $0.051 | $0.068 |
| Class C | 12/12/16 | 12/09/16 | $0.012 | $0.068 |
| Global Commodity Stock | 12/12/16 | 12/09/16 | $0.105 | $0.068 |
| Class I | 12/12/16 | 12/09/16 | $0.118 | $0.068 |
Class A designates 47%, Class T designates 57%, Class B designates 86%, Class C designates 77%, Global Commodity Stock designates 42%, and Class I designates 40% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class B, Class C, Global Commodity Stock and Class I designate 100% of the dividend distributed 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 | |
| Fidelity Global Commodity Stock Fund | |||
| Class A | 12/07/15 | $0.2301 | $0.0101 |
| Class T | 12/07/15 | $0.1921 | $0.0101 |
| Class B | 12/07/15 | $0.1261 | $0.0101 |
| Class C | 12/07/15 | $0.1401 | $0.0101 |
| Global Commodity Stock | 12/07/15 | $0.2611 | $0.0101 |
| Class I | 12/07/15 | $0.2701 | $0.0101 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Global Commodity Stock Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods, as shown below. A peer group is not shown below because the fund does not generally utilize a peer group for performance comparison purposes.Fidelity Global Commodity Stock Fund
Fidelity Global Commodity Stock Fund
AGCS-ANN-1216
1.879396.107
|
Fidelity® Global Commodity Stock Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Global Commodity Stock Fund | 9.62% | (5.25)% | 2.24% |
A From March 25, 2009
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Global Commodity Stock Fund, a class of the fund, on March 25, 2009, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) Index performed over the same period.
| Period Ending Values | ||
|
| $11,839 | Fidelity® Global Commodity Stock Fund |
|
| $23,902 | MSCI ACWI (All Country World Index) Index |
Management's Discussion of Fund Performance
Market Recap: Global equities eked a 2.48% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) Index. After early-2016 volatility largely driven by concern about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-caps outpaced large-cap stocks; value bested growth. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodities prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific group (+9%). The U.S. (+4%) also rose, but Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+13%) and energy (+6%) overcame early-2016 lows. Technology (+11%) also performed well. Financials (-1%) trailed ex the recently created real estate sector (+4%). Telecom services (+1%) lost momentum amid a mode switch from “risk off” to “risk on,” though utilities (+7%), mostly in the U.S., outperformed. Meanwhile, health care (-7%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager S. Joseph Wickwire II, CFA: The fund’s share classes (excluding sales charges, if applicable) gained roughly 9% for the fiscal year, underperforming the 11.42% gain of the industry index, the MSCI All Country World Commodity Producers Sector Capped Index. At the same time, the fund significantly outdistanced the broader global equity market, as measured by the MSCI ACWI (All Country World Index) Index. A strong rebound in the broader commodity complex after January 2016 helped lift commodity stocks this period. Versus the commodities-focused industry index, the fund was held back by positioning in our two biggest areas of investment: diversified metals & mining and fertilizers & agricultural chemicals. In both cases, I misjudged the timing for when prices would improve. Among individual stocks, the fund's biggest detractor was nitrogen fertilizer maker CF Industries Holdings, which struggled amid low fertilizer prices. On the plus side, stock picks and a slight overweighting in gold stocks helped most. The fund's top relative contributor was gold miner B2Gold, which executed well.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Monsanto Co. | 5.7 | 5.5 |
| BHP Billiton PLC | 4.2 | 3.3 |
| Syngenta AG (Switzerland) | 4.2 | 4.5 |
| Chevron Corp. | 4.0 | 4.0 |
| Rio Tinto PLC | 3.5 | 3.6 |
| Archer Daniels Midland Co. | 3.4 | 0.7 |
| Suncor Energy, Inc. | 2.4 | 1.2 |
| Glencore Xstrata PLC | 2.4 | 1.2 |
| Potash Corp. of Saskatchewan, Inc. | 2.3 | 3.0 |
| Anadarko Petroleum Corp. | 2.3 | 2.1 |
| 34.4 |
Top Sectors (% of fund's net assets)
| As of October 31, 2016 | ||
| Agriculture | 32.2% | |
| Energy | 30.3% | |
| Metals | 30.2% | |
| Other | 6.4% | |
| Short-Term Investments and Net Other Assets | 1.0% | |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
| As of April 30, 2016 | ||
| Agriculture | 34.2% | |
| Energy | 32.2% | |
| Metals | 26.0% | |
| Other | 5.5% | |
| Short-Term Investments and Net Other Assets | 2.1% | |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.5% | |||
| Shares | Value | ||
| Aerospace & Defense - 0.5% | |||
| Aerospace & Defense - 0.5% | |||
| Rolls-Royce Holdings PLC | 184,620 | $1,638,800 | |
| Chemicals - 22.7% | |||
| Commodity Chemicals - 0.5% | |||
| LyondellBasell Industries NV Class A | 22,800 | 1,813,740 | |
| Diversified Chemicals - 1.0% | |||
| Ashland Global Holdings, Inc. | 6,300 | 703,899 | |
| E.I. du Pont de Nemours & Co. | 10,900 | 749,811 | |
| Eastman Chemical Co. | 15,100 | 1,085,841 | |
| The Dow Chemical Co. | 20,000 | 1,076,200 | |
| 3,615,751 | |||
| Fertilizers & Agricultural Chemicals - 20.7% | |||
| Agrium, Inc. | 65,000 | 5,966,935 | |
| CF Industries Holdings, Inc. (a) | 314,460 | 7,550,185 | |
| FMC Corp. | 42,900 | 2,011,581 | |
| Monsanto Co. | 200,100 | 20,164,076 | |
| OCI NV (a)(b) | 52,800 | 733,209 | |
| Potash Corp. of Saskatchewan, Inc. | 503,900 | 8,193,588 | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | 75,000 | 2,194,500 | |
| Syngenta AG (Switzerland) | 36,998 | 14,805,338 | |
| The Mosaic Co. | 273,761 | 6,441,596 | |
| UPL Ltd. (b) | 85,400 | 893,362 | |
| Yara International ASA | 111,400 | 3,936,991 | |
| 72,891,361 | |||
| Specialty Chemicals - 0.5% | |||
| W.R. Grace & Co. | 23,700 | 1,586,952 | |
| TOTAL CHEMICALS | 79,907,804 | ||
| Construction & Engineering - 0.2% | |||
| Construction & Engineering - 0.2% | |||
| Dycom Industries, Inc. (b) | 10,700 | 823,151 | |
| Construction Materials - 0.2% | |||
| Construction Materials - 0.2% | |||
| West China Cement Ltd. (b) | 7,176,000 | 730,966 | |
| Containers & Packaging - 0.4% | |||
| Paper Packaging - 0.4% | |||
| Smurfit Kappa Group PLC | 42,500 | 931,221 | |
| WestRock Co. | 14,659 | 677,099 | |
| 1,608,320 | |||
| Diversified Financial Services - 0.2% | |||
| Other Diversified Financial Services - 0.2% | |||
| Extraction Oil & Gas, Inc.(a) | 33,787 | 721,690 | |
| Electrical Equipment - 0.5% | |||
| Electrical Components & Equipment - 0.5% | |||
| Regal Beloit Corp. | 27,700 | 1,637,070 | |
| Food & Staples Retailing - 0.0% | |||
| Food Distributors - 0.0% | |||
| Andersons, Inc. | 1,000 | 38,050 | |
| Food Products - 7.2% | |||
| Agricultural Products - 6.9% | |||
| Archer Daniels Midland Co. | 278,000 | 12,112,460 | |
| Bunge Ltd. | 82,200 | 5,097,222 | |
| Darling International, Inc. (b) | 107,500 | 1,462,000 | |
| First Resources Ltd. | 1,359,100 | 1,777,942 | |
| Golden Agri-Resources Ltd. | 2,515,100 | 696,003 | |
| Ingredion, Inc. | 8,400 | 1,101,828 | |
| SLC Agricola SA | 408,400 | 2,022,808 | |
| 24,270,263 | |||
| Packaged Foods & Meats - 0.3% | |||
| Adecoagro SA (b) | 97,700 | 1,074,700 | |
| TOTAL FOOD PRODUCTS | 25,344,963 | ||
| Household Products - 0.2% | |||
| Household Products - 0.2% | |||
| Svenska Cellulosa AB (SCA) (B Shares) | 25,000 | 708,303 | |
| Independent Power and Renewable Electricity Producers - 0.6% | |||
| Independent Power Producers & Energy Traders - 0.3% | |||
| China Resources Power Holdings Co. Ltd. | 610,000 | 1,036,651 | |
| Renewable Electricity - 0.3% | |||
| NextEra Energy Partners LP | 38,700 | 1,058,445 | |
| TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 2,095,096 | ||
| Machinery - 1.3% | |||
| Agricultural & Farm Machinery - 0.5% | |||
| Jain Irrigation Systems Ltd. (b) | 1,131,194 | 1,822,990 | |
| Construction Machinery & Heavy Trucks - 0.5% | |||
| Allison Transmission Holdings, Inc. | 27,700 | 811,333 | |
| Caterpillar, Inc. | 8,700 | 726,102 | |
| 1,537,435 | |||
| Industrial Machinery - 0.3% | |||
| Rexnord Corp. (b) | 55,120 | 1,096,337 | |
| TOTAL MACHINERY | 4,456,762 | ||
| Metals & Mining - 29.2% | |||
| Aluminum - 0.4% | |||
| Arconic, Inc. | 47,300 | 1,358,456 | |
| Copper - 1.1% | |||
| First Quantum Minerals Ltd. | 154,024 | 1,462,958 | |
| Freeport-McMoRan, Inc. | 228,300 | 2,552,394 | |
| 4,015,352 | |||
| Diversified Metals & Mining - 12.1% | |||
| Anglo American PLC (United Kingdom) (b) | 207,551 | 2,873,220 | |
| BHP Billiton PLC | 987,583 | 14,850,352 | |
| Glencore Xstrata PLC (b) | 2,702,269 | 8,268,943 | |
| Grupo Mexico SA de CV Series B | 350,511 | 863,621 | |
| Ivanhoe Mines Ltd. (b) | 405,400 | 631,690 | |
| Korea Zinc Co. Ltd. | 1,310 | 521,134 | |
| MMC Norilsk Nickel PJSC sponsored ADR | 45,800 | 690,664 | |
| Rio Tinto PLC | 353,787 | 12,303,052 | |
| South32 Ltd. | 378,378 | 739,729 | |
| Teck Resources Ltd. Class B (sub. vtg.) | 33,900 | 731,935 | |
| 42,474,340 | |||
| Gold - 10.3% | |||
| Acacia Mining PLC | 114,600 | 727,302 | |
| Agnico Eagle Mines Ltd. (Canada) | 55,900 | 2,838,968 | |
| AngloGold Ashanti Ltd. sponsored ADR (b) | 84,900 | 1,166,526 | |
| Argonaut Gold, Inc. (b) | 179,200 | 362,061 | |
| B2Gold Corp. (b) | 751,180 | 2,172,950 | |
| Barrick Gold Corp. | 336,900 | 5,927,712 | |
| Continental Gold, Inc. (b) | 336,400 | 925,457 | |
| Detour Gold Corp. (b) | 48,600 | 926,491 | |
| Eldorado Gold Corp. (b) | 229,300 | 723,134 | |
| Franco-Nevada Corp. | 27,500 | 1,799,914 | |
| Gold Fields Ltd. sponsored ADR | 160,900 | 667,735 | |
| Goldcorp, Inc. | 119,610 | 1,816,488 | |
| New Gold, Inc. (b) | 185,400 | 731,206 | |
| Newcrest Mining Ltd. (b) | 133,922 | 2,298,288 | |
| Newmont Mining Corp. | 142,400 | 5,274,496 | |
| Premier Gold Mines Ltd. (b) | 518,700 | 1,090,535 | |
| Randgold Resources Ltd. sponsored ADR | 30,700 | 2,724,011 | |
| SEMAFO, Inc. (b) | 185,200 | 726,275 | |
| Sibanye Gold Ltd. ADR | 65,000 | 728,000 | |
| Tahoe Resources, Inc. | 113,300 | 1,358,282 | |
| Torex Gold Resources, Inc. (b) | 60,570 | 1,126,684 | |
| 36,112,515 | |||
| Precious Metals & Minerals - 0.5% | |||
| Gold Standard Ventures Corp. (b) | 296,700 | 703,427 | |
| Impala Platinum Holdings Ltd. (b) | 67,400 | 270,925 | |
| Industrias Penoles SA de CV | 31,150 | 755,455 | |
| 1,729,807 | |||
| Silver - 0.8% | |||
| Silver Wheaton Corp. | 122,000 | 2,939,715 | |
| Steel - 4.0% | |||
| AK Steel Holding Corp. (b) | 70,000 | 364,000 | |
| ArcelorMittal SA Class A unit (a)(b) | 374,610 | 2,521,125 | |
| Hitachi Metals Ltd. | 57,000 | 713,111 | |
| Hyundai Steel Co. | 25,252 | 1,090,661 | |
| JFE Holdings, Inc. | 51,700 | 742,691 | |
| Nippon Steel & Sumitomo Metal Corp. | 61,700 | 1,222,880 | |
| Nucor Corp. | 60,992 | 2,979,459 | |
| POSCO | 15,462 | 3,218,610 | |
| Thyssenkrupp AG | 58,400 | 1,352,050 | |
| 14,204,587 | |||
| TOTAL METALS & MINING | 102,834,772 | ||
| Oil, Gas & Consumable Fuels - 29.8% | |||
| Coal & Consumable Fuels - 0.3% | |||
| Cameco Corp. | 122,800 | 945,742 | |
| Integrated Oil & Gas - 14.4% | |||
| BP PLC | 297,700 | 1,759,915 | |
| Cenovus Energy, Inc. | 119,400 | 1,722,501 | |
| Chevron Corp. | 135,200 | 14,162,200 | |
| China Petroleum & Chemical Corp. (H Shares) | 1,338,000 | 967,643 | |
| Exxon Mobil Corp. | 67,100 | 5,590,772 | |
| Imperial Oil Ltd. | 46,200 | 1,498,323 | |
| Lukoil PJSC sponsored ADR | 41,700 | 2,032,875 | |
| Occidental Petroleum Corp. | 24,700 | 1,800,877 | |
| Royal Dutch Shell PLC: | |||
| Class A (United Kingdom) | 83,900 | 2,089,700 | |
| Class B (United Kingdom) | 44,393 | 1,145,007 | |
| Statoil ASA | 106,100 | 1,732,189 | |
| Suncor Energy, Inc. | 289,432 | 8,685,334 | |
| Total SA | 160,000 | 7,664,785 | |
| 50,852,121 | |||
| Oil & Gas Exploration & Production - 15.1% | |||
| Anadarko Petroleum Corp. | 134,900 | 8,018,456 | |
| Apache Corp. | 26,800 | 1,594,064 | |
| Cabot Oil & Gas Corp. | 47,300 | 987,624 | |
| Canadian Natural Resources Ltd. | 16,600 | 526,849 | |
| Carrizo Oil & Gas, Inc. (b) | 21,200 | 717,196 | |
| Cimarex Energy Co. | 5,600 | 723,128 | |
| CNOOC Ltd. sponsored ADR | 12,000 | 1,505,760 | |
| Concho Resources, Inc. (b) | 5,700 | 723,558 | |
| ConocoPhillips Co. | 165,400 | 7,186,630 | |
| Continental Resources, Inc. (b) | 14,800 | 723,868 | |
| Crescent Point Energy Corp. | 59,900 | 713,191 | |
| Devon Energy Corp. | 35,800 | 1,356,462 | |
| Diamondback Energy, Inc. (b) | 8,000 | 730,320 | |
| EOG Resources, Inc. | 37,000 | 3,345,540 | |
| EQT Corp. | 19,201 | 1,267,266 | |
| Hess Corp. | 21,400 | 1,026,558 | |
| INPEX Corp. | 73,300 | 688,896 | |
| Marathon Oil Corp. | 58,700 | 773,666 | |
| Newfield Exploration Co. (b) | 21,100 | 856,449 | |
| Noble Energy, Inc. | 94,200 | 3,247,074 | |
| NOVATEK OAO GDR (Reg. S) | 13,400 | 1,432,460 | |
| Oil Search Ltd. ADR | 136,500 | 691,545 | |
| Parsley Energy, Inc. Class A (b) | 30,800 | 1,013,320 | |
| PDC Energy, Inc. (b) | 29,700 | 1,821,501 | |
| Pioneer Natural Resources Co. | 12,210 | 2,185,834 | |
| PrairieSky Royalty Ltd. | 83,898 | 1,824,577 | |
| QEP Resources, Inc. | 83,400 | 1,340,238 | |
| Range Resources Corp. | 22,900 | 773,791 | |
| Rice Energy, Inc. (b) | 32,300 | 713,507 | |
| Santos Ltd. | 261,000 | 708,797 | |
| SM Energy Co. | 22,400 | 753,312 | |
| Southwestern Energy Co. (b) | 70,500 | 732,495 | |
| Whiting Petroleum Corp. (b) | 150,900 | 1,243,416 | |
| Woodside Petroleum Ltd. | 55,911 | 1,206,619 | |
| 53,153,967 | |||
| TOTAL OIL, GAS & CONSUMABLE FUELS | 104,951,830 | ||
| Paper & Forest Products - 4.3% | |||
| Forest Products - 1.1% | |||
| Boise Cascade Co. (b) | 47,000 | 904,750 | |
| Norbord, Inc. | 30,800 | 724,476 | |
| TFS Corp. Ltd. | 1,333,847 | 1,420,520 | |
| West Fraser Timber Co. Ltd. | 31,800 | 1,088,687 | |
| 4,138,433 | |||
| Paper Products - 3.2% | |||
| Empresas CMPC SA | 587,079 | 1,271,636 | |
| Fibria Celulose SA | 92,400 | 739,316 | |
| Mondi PLC | 116,000 | 2,266,065 | |
| Nine Dragons Paper (Holdings) Ltd. | 821,000 | 669,033 | |
| Oji Holdings Corp. | 332,000 | 1,408,792 | |
| Sappi Ltd. (b) | 134,161 | 746,237 | |
| Stora Enso Oyj (R Shares) | 215,100 | 2,034,226 | |
| UPM-Kymmene Corp. | 88,700 | 2,064,253 | |
| 11,199,558 | |||
| TOTAL PAPER & FOREST PRODUCTS | 15,337,991 | ||
| Semiconductors & Semiconductor Equipment - 0.2% | |||
| Semiconductor Equipment - 0.2% | |||
| SolarEdge Technologies, Inc. (a)(b) | 66,900 | 916,530 | |
| TOTAL COMMON STOCKS | |||
| (Cost $416,193,454) | 343,752,098 | ||
| Nonconvertible Preferred Stocks - 1.5% | |||
| Aerospace & Defense - 0.0% | |||
| Aerospace & Defense - 0.0% | |||
| Rolls-Royce Holdings PLC: | |||
| (C Shares) (b) | 8,542,720 | 10,456 | |
| 0.00% | 8,202,720 | 10,040 | |
| 20,496 | |||
| Metals & Mining - 1.0% | |||
| Steel - 1.0% | |||
| Vale SA (PN-A) sponsored ADR | 564,100 | 3,632,804 | |
| Oil, Gas & Consumable Fuels - 0.2% | |||
| Integrated Oil & Gas - 0.2% | |||
| Petroleo Brasileiro SA - Petrobras (PN) sponsored (non-vtg.) (b) | 62,700 | 693,462 | |
| Paper & Forest Products - 0.3% | |||
| Paper Products - 0.3% | |||
| Suzano Papel e Celulose SA | 243,700 | 859,669 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $6,205,626) | 5,206,431 | ||
| Money Market Funds - 2.9% | |||
| Fidelity Cash Central Fund, 0.41% (c) | 2,396,109 | 2,396,827 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 7,972,566 | 7,974,160 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $10,370,987) | 10,370,987 | ||
| TOTAL INVESTMENT PORTFOLIO - 101.9% | |||
| (Cost $432,770,067) | 359,329,516 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.9)% | (6,800,467) | ||
| NET ASSETS - 100% | $352,529,049 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $18,110 |
| Fidelity Securities Lending Cash Central Fund | 176,619 |
| Total | $194,729 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $343,752,098 | $281,576,707 | $62,175,391 | $-- |
| Nonconvertible Preferred Stocks | 5,206,431 | 5,206,431 | -- | -- |
| Money Market Funds | 10,370,987 | 10,370,987 | -- | -- |
| Total Investments in Securities: | $359,329,516 | $297,154,125 | $62,175,391 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $9,521,448 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 41.6% |
| Canada | 17.2% |
| United Kingdom | 11.2% |
| Switzerland | 4.2% |
| Bailiwick of Jersey | 3.4% |
| Brazil | 2.3% |
| France | 2.2% |
| Australia | 1.8% |
| Bermuda | 1.7% |
| Norway | 1.6% |
| Korea (South) | 1.4% |
| Japan | 1.4% |
| Russia | 1.2% |
| Finland | 1.2% |
| Luxembourg | 1.0% |
| South Africa | 1.0% |
| Chile | 1.0% |
| Others (Individually Less Than 1%) | 4.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $7,663,851) — See accompanying schedule: Unaffiliated issuers (cost $422,399,080) | $348,958,529 | |
| Fidelity Central Funds (cost $10,370,987) | 10,370,987 | |
| Total Investments (cost $432,770,067) | $359,329,516 | |
| Receivable for investments sold | 3,650,640 | |
| Receivable for fund shares sold | 261,697 | |
| Dividends receivable | 569,742 | |
| Distributions receivable from Fidelity Central Funds | 2,610 | |
| Prepaid expenses | 887 | |
| Other receivables | 10,329 | |
| Total assets | 363,825,421 | |
| Liabilities | ||
| Payable for investments purchased | $2,623,841 | |
| Payable for fund shares redeemed | 319,510 | |
| Accrued management fee | 207,763 | |
| Distribution and service plan fees payable | 20,149 | |
| Other affiliated payables | 93,587 | |
| Other payables and accrued expenses | 58,267 | |
| Collateral on securities loaned, at value | 7,973,255 | |
| Total liabilities | 11,296,372 | |
| Net Assets | $352,529,049 | |
| Net Assets consist of: | ||
| Paid in capital | $515,009,368 | |
| Undistributed net investment income | 3,009,856 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (92,019,133) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | (73,471,042) | |
| Net Assets | $352,529,049 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($34,791,288 ÷ 3,241,263 shares) | $10.73 | |
| Maximum offering price per share (100/94.25 of $10.73) | $11.38 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($6,068,177 ÷ 566,145 shares) | $10.72 | |
| Maximum offering price per share (100/96.50 of $10.72) | $11.11 | |
| Class C: | ||
| Net Asset Value and offering price per share ($12,619,897 ÷ 1,189,052 shares)(a) | $10.61 | |
| Global Commodity Stock: | ||
| Net Asset Value, offering price and redemption price per share ($228,981,854 ÷ 21,270,575 shares) | $10.77 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($70,067,833 ÷ 6,509,838 shares) | $10.76 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $7,251,993 | |
| Income from Fidelity Central Funds | 194,729 | |
| Income before foreign taxes withheld | 7,446,722 | |
| Less foreign taxes withheld | (488,823) | |
| Total income | 6,957,899 | |
| Expenses | ||
| Management fee | $1,897,794 | |
| Transfer agent fees | 761,119 | |
| Distribution and service plan fees | 218,802 | |
| Accounting and security lending fees | 142,214 | |
| Custodian fees and expenses | 64,974 | |
| Independent trustees' fees and expenses | 1,125 | |
| Registration fees | 92,080 | |
| Audit | 62,450 | |
| Legal | 3,377 | |
| Miscellaneous | 2,170 | |
| Total expenses before reductions | 3,246,105 | |
| Expense reductions | (20,847) | 3,225,258 |
| Net investment income (loss) | 3,732,641 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (22,391,117) | |
| Fidelity Central Funds | 2,292 | |
| Foreign currency transactions | (68,057) | |
| Total net realized gain (loss) | (22,456,882) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | 48,483,094 | |
| Assets and liabilities in foreign currencies | (4,699) | |
| Total change in net unrealized appreciation (depreciation) | 48,478,395 | |
| Net gain (loss) | 26,021,513 | |
| Net increase (decrease) in net assets resulting from operations | $29,754,154 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $3,732,641 | $5,601,197 |
| Net realized gain (loss) | (22,456,882) | (22,741,457) |
| Change in net unrealized appreciation (depreciation) | 48,478,395 | (54,129,193) |
| Net increase (decrease) in net assets resulting from operations | 29,754,154 | (71,269,453) |
| Distributions to shareholders from net investment income | (5,140,876) | (3,898,874) |
| Distributions to shareholders from net realized gain | (224,075) | (629,272) |
| Total distributions | (5,364,951) | (4,528,146) |
| Share transactions - net increase (decrease) | 97,100,151 | (20,805,112) |
| Redemption fees | 14,543 | 7,987 |
| Total increase (decrease) in net assets | 121,503,897 | (96,594,724) |
| Net Assets | ||
| Beginning of period | 231,025,152 | 327,619,876 |
| End of period | $352,529,049 | $231,025,152 |
| Other Information | ||
| Undistributed net investment income end of period | $3,009,856 | $4,650,806 |
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.05 | $13.25 | $14.17 | $14.59 | $15.14 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .22 | .15 | .16 | .11 |
| Net realized and unrealized gain (loss) | .79 | (3.25) | (.91) | (.45) | (.59) |
| Total from investment operations | .90 | (3.03) | (.76) | (.29) | (.48) |
| Distributions from net investment income | (.21) | (.14) | (.15) | (.13) | (.05) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.22) | (.17) | (.16) | (.13) | (.07)B |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.73 | $10.05 | $13.25 | $14.17 | $14.59 |
| Total ReturnD,E,F | 9.29% | (23.16)% | (5.41)% | (2.00)% | (3.19)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.38% | 1.34% | 1.35% | 1.36% | 1.34% |
| Expenses net of fee waivers, if any | 1.38% | 1.34% | 1.35% | 1.35% | 1.34% |
| Expenses net of all reductions | 1.37% | 1.34% | 1.35% | 1.34% | 1.33% |
| Net investment income (loss) | 1.18% | 1.85% | 1.05% | 1.12% | .80% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $34,791 | $31,391 | $51,586 | $71,293 | $99,694 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.07 per share is comprised of distributions from net investment income of $.052 and distributions from net realized gain of $.014 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.02 | $13.21 | $14.13 | $14.54 | $15.08 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .19 | .11 | .12 | .08 |
| Net realized and unrealized gain (loss) | .79 | (3.25) | (.90) | (.45) | (.60) |
| Total from investment operations | .88 | (3.06) | (.79) | (.33) | (.52) |
| Distributions from net investment income | (.17) | (.10) | (.11) | (.08) | (.01) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.18) | (.13) | (.13)B | (.08) | (.02) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.72 | $10.02 | $13.21 | $14.13 | $14.54 |
| Total ReturnD,E,F | 9.08% | (23.40)% | (5.65)% | (2.26)% | (3.43)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.65% | 1.63% | 1.62% | 1.62% | 1.61% |
| Expenses net of fee waivers, if any | 1.65% | 1.63% | 1.62% | 1.61% | 1.61% |
| Expenses net of all reductions | 1.64% | 1.62% | 1.62% | 1.60% | 1.60% |
| Net investment income (loss) | .90% | 1.57% | .78% | .86% | .53% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $6,068 | $6,335 | $9,867 | $12,551 | $16,692 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.13 per share is comprised of distributions from net investment income of $.113 and distributions from net realized gain of $.013 per share.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $9.92 | $13.06 | $13.96 | $14.37 | $14.95 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .04 | .13 | .04 | .05 | .01 |
| Net realized and unrealized gain (loss) | .78 | (3.22) | (.89) | (.44) | (.59) |
| Total from investment operations | .82 | (3.09) | (.85) | (.39) | (.58) |
| Distributions from net investment income | (.12) | (.03) | (.03) | (.02) | – |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | – |
| Total distributions | (.13) | (.05)B | (.05)C | (.02) | – |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.61 | $9.92 | $13.06 | $13.96 | $14.37 |
| Total ReturnE,F,G | 8.46% | (23.74)% | (6.13)% | (2.75)% | (3.88)% |
| Ratios to Average Net AssetsH,I | |||||
| Expenses before reductions | 2.13% | 2.12% | 2.11% | 2.11% | 2.10% |
| Expenses net of fee waivers, if any | 2.13% | 2.12% | 2.11% | 2.11% | 2.10% |
| Expenses net of all reductions | 2.12% | 2.11% | 2.11% | 2.10% | 2.09% |
| Net investment income (loss) | .43% | 1.08% | .29% | .36% | .03% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,620 | $11,274 | $17,659 | $23,830 | $31,865 |
| Portfolio turnover rateJ | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.05 per share is comprised of distributions from net investment income of $.025 and distributions from net realized gain of $.026 per share.
C Total distributions of $.05 per share is comprised of distributions from net investment income of $.033 and distributions from net realized gain of $.013 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Total returns do not include the effect of the contingent deferred sales charge.
H 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Global Commodity Stock Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.09 | $13.31 | $14.24 | $14.66 | $15.21 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .14 | .25 | .19 | .19 | .15 |
| Net realized and unrealized gain (loss) | .79 | (3.27) | (.92) | (.45) | (.60) |
| Total from investment operations | .93 | (3.02) | (.73) | (.26) | (.45) |
| Distributions from net investment income | (.24) | (.18) | (.19) | (.16) | (.08) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.25) | (.20)B | (.20) | (.16) | (.10)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.77 | $10.09 | $13.31 | $14.24 | $14.66 |
| Total ReturnE,F | 9.62% | (22.97)% | (5.16)% | (1.75)% | (2.96)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.13% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of fee waivers, if any | 1.13% | 1.12% | 1.11% | 1.11% | 1.10% |
| Expenses net of all reductions | 1.12% | 1.11% | 1.11% | 1.09% | 1.09% |
| Net investment income (loss) | 1.43% | 2.08% | 1.29% | 1.37% | 1.04% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $228,982 | $156,320 | $223,084 | $273,476 | $387,242 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.20 per share is comprised of distributions from net investment income of $.178 and distributions from net realized gain of $.026 per share.
C Total distributions of $.10 per share is comprised of distributions from net investment income of $.084 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Global Commodity Stock Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.09 | $13.31 | $14.24 | $14.67 | $15.22 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16 | .25 | .19 | .20 | .16 |
| Net realized and unrealized gain (loss) | .77 | (3.26) | (.92) | (.45) | (.60) |
| Total from investment operations | .93 | (3.01) | (.73) | (.25) | (.44) |
| Distributions from net investment income | (.25) | (.19) | (.19) | (.18) | (.09) |
| Distributions from net realized gain | (.01) | (.03) | (.01) | – | (.01) |
| Total distributions | (.26) | (.21)B | (.20) | (.18) | (.11)C |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $10.76 | $10.09 | $13.31 | $14.24 | $14.67 |
| Total ReturnE,F | 9.63% | (22.93)% | (5.16)% | (1.71)% | (2.90)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.01% | 1.09% | 1.06% | 1.04% | 1.04% |
| Expenses net of fee waivers, if any | 1.01% | 1.08% | 1.06% | 1.04% | 1.04% |
| Expenses net of all reductions | 1.00% | 1.08% | 1.06% | 1.03% | 1.03% |
| Net investment income (loss) | 1.55% | 2.11% | 1.34% | 1.43% | 1.10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $70,068 | $24,841 | $23,840 | $31,613 | $50,540 |
| Portfolio turnover rateI | 85% | 77% | 75% | 65% | 91% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.21 per share is comprised of distributions from net investment income of $.186 and distributions from net realized gain of $.026 per share.
C Total distributions of $.11 per share is comprised of distributions from net investment income of $.093 and distributions from net realized gain of $.014 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Global Commodity Stock 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, Global Commodity Stock and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period May 1, 2016 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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), partnerships, 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 | $15,272,041 |
| Gross unrealized depreciation | (95,148,056) |
| Net unrealized appreciation (depreciation) on securities | $(79,876,015) |
| Tax Cost | $439,205,531 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $5,299,952 |
| Capital loss carryforward | $(87,874,265) |
| Net unrealized appreciation (depreciation) on securities and other investments | $(79,906,001) |
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 | |
| 2019 | $(6,952,413) |
| No expiration | |
| Short-term | (8,754,263) |
| Long-term | (72,167,588) |
| Total no expiration | (80,921,851) |
| Total capital loss carryforward | $(87,874,264) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $5,364,951 | $ 4,528,146 |
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 $321,091,890 and $228,853,844, 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 annual management fee rate was .69% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $76,091 | $393 |
| Class T | .25% | .25% | 28,441 | – |
| Class B | .75% | .25% | 4,719 | 3,539 |
| Class C | .75% | .25% | 109,551 | 17,152 |
| $218,802 | $21,084 |
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 by FDC |
|
| Class A | $21,557 |
| Class T | 1,769 |
| Class B(a) | 386 |
| Class C(a) | 708 |
| $24,420 |
(a) 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-Level Average Net Assets |
|
| Class A | $91,970 | .30 |
| Class T | 18,383 | .32 |
| Class B | 1,315 | .28 |
| Class C | 33,264 | .30 |
| Global Commodity Stock | 529,302 | .30 |
| Class I | 86,885 | .18 |
| $761,119 |
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 $9,978 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $699 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $176,619. 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 $19,393 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,454.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $638,599 | $520,699 |
| Class T | 103,956 | 72,766 |
| Class B | 8,861 | 1,871 |
| Class C | 133,173 | 32,755 |
| Global Commodity Stock | 3,642,366 | 2,937,401 |
| Class I | 613,921 | 333,382 |
| Total | $5,140,876 | $3,898,874 |
| From net realized gain | ||
| Class A | $30,410 | $97,397 |
| Class T | 6,044 | 19,110 |
| Class B | 836 | 3,040 |
| Class C | 11,098 | 34,065 |
| Global Commodity Stock | 151,130 | 429,058 |
| Class I | 24,557 | 46,602 |
| Total | $224,075 | $629,272 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 995,820 | 526,290 | $9,707,856 | $6,210,169 |
| Reinvestment of distributions | 70,559 | 46,881 | 655,495 | 594,452 |
| Shares redeemed | (948,589) | (1,342,823) | (9,072,163) | (16,036,860) |
| Net increase (decrease) | 117,790 | (769,652) | $1,291,188 | $(9,232,239) |
| Class T | ||||
| Shares sold | 109,904 | 79,898 | $1,057,407 | $963,935 |
| Reinvestment of distributions | 11,521 | 7,092 | 107,030 | 89,851 |
| Shares redeemed | (187,357) | (201,781) | (1,802,838) | (2,371,414) |
| Net increase (decrease) | (65,932) | (114,791) | $(638,401) | $(1,317,628) |
| Class B | ||||
| Shares sold | 2,904 | 580 | $29,587 | $7,071 |
| Reinvestment of distributions | 982 | 371 | 9,133 | 4,698 |
| Shares redeemed | (90,607) | (35,007) | (897,527) | (422,886) |
| Net increase (decrease) | (86,721) | (34,056) | $(858,807) | $(411,117) |
| Class C | ||||
| Shares sold | 318,100 | 206,447 | $3,098,053 | $2,471,711 |
| Reinvestment of distributions | 14,787 | 4,962 | 136,635 | 62,526 |
| Shares redeemed | (280,508) | (426,784) | (2,667,860) | (5,161,590) |
| Net increase (decrease) | 52,379 | (215,375) | $566,828 | $(2,627,353) |
| Global Commodity Stock | ||||
| Shares sold | 11,244,608 | 4,004,137 | $110,744,052 | $47,467,615 |
| Reinvestment of distributions | 376,092 | 238,065 | 3,493,876 | 3,023,431 |
| Shares redeemed | (5,847,902) | (5,506,523) | (57,190,452) | (65,599,040) |
| Net increase (decrease) | 5,772,798 | (1,264,321) | $57,047,476 | $(15,107,994) |
| Class I | ||||
| Shares sold | 6,770,473 | 1,576,324 | $66,305,135 | $18,219,363 |
| Reinvestment of distributions | 60,388 | 24,972 | 560,405 | 316,895 |
| Shares redeemed | (2,783,838) | (929,289) | (27,173,673) | (10,645,039) |
| Net increase (decrease) | 4,047,023 | 672,007 | $39,691,867 | $7,891,219 |
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 18% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Global Commodity Stock Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Global Commodity Stock Fund (a fund of Fidelity Investment Trust) at October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Global Commodity Stock Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 15, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Christopher S. Bartel (1971)
Year of Election or Appointment: 2009
Vice President
Mr. Bartel also serves as Vice President of other funds. Mr. Bartel serves as Head of Global Fixed Income Research (2016-present). Previously, Mr. Bartel served as Head of Global Equity Research (2010-2016), a Director of Fidelity Management & Research (Hong Kong) (investment adviser firm, 2012-2016), a Director, President, and Chief Executive Officer of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2012-2016), Senior Vice President of Equity Research (2009-2010), Managing Director of Research (2006-2009), and an analyst and portfolio manager (2000-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.34% | |||
| Actual | $1,000.00 | $1,029.80 | $6.84 | |
| Hypothetical-C | $1,000.00 | $1,018.40 | $6.80 | |
| Class T | 1.61% | |||
| Actual | $1,000.00 | $1,028.80 | $8.21 | |
| Hypothetical-C | $1,000.00 | $1,017.04 | $8.16 | |
| Class C | 2.10% | |||
| Actual | $1,000.00 | $1,026.10 | $10.70 | |
| Hypothetical-C | $1,000.00 | $1,014.58 | $10.63 | |
| Global Commodity Stock | 1.10% | |||
| Actual | $1,000.00 | $1,031.60 | $5.62 | |
| Hypothetical-C | $1,000.00 | $1,019.61 | $5.58 | |
| Class I | .98% | |||
| Actual | $1,000.00 | $1,031.60 | $5.00 | |
| Hypothetical-C | $1,000.00 | $1,020.21 | $4.98 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Global Commodity Stock 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 Global Commodity Stock Fund | ||||
| Class A | 12/12/16 | 12/09/16 | $0.078 | $0.068 |
| Class T | 12/12/16 | 12/09/16 | $0.051 | $0.068 |
| Class C | 12/12/16 | 12/09/16 | $0.012 | $0.068 |
| Global Commodity Stock | 12/12/16 | 12/09/16 | $0.105 | $0.068 |
| Class I | 12/12/16 | 12/09/16 | $0.118 | $0.068 |
Class A designates 47%, Class T designates 57%, Class B designates 86%, Class C designates 77%, Global Commodity Stock designates 42%, and Class I designates 40% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class T, Class B, Class C, Global Commodity Stock and Class I designate 100% of the dividend distributed 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 | |
| Fidelity Global Commodity Stock Fund | |||
| Class A | 12/07/15 | $0.2301 | $0.0101 |
| Class T | 12/07/15 | $0.1921 | $0.0101 |
| Class B | 12/07/15 | $0.1261 | $0.0101 |
| Class C | 12/07/15 | $0.1401 | $0.0101 |
| Global Commodity Stock | 12/07/15 | $0.2611 | $0.0101 |
| Class I | 12/07/15 | $0.2701 | $0.0101 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Global Commodity Stock Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods, as shown below. A peer group is not shown below because the fund does not generally utilize a peer group for performance comparison purposes.Fidelity Global Commodity Stock Fund
Fidelity Global Commodity Stock Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
GCS-ANN-1216
1.879380.107
|
Fidelity® Global Equity Income Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Life of fundA |
| Fidelity® Global Equity Income Fund | 2.13% | 8.65% |
A From May 2, 2012
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Global Equity Income Fund on May 2, 2012, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) Index performed over the same period.
| Period Ending Values | ||
|
| $14,525 | Fidelity® Global Equity Income Fund |
|
| $13,994 | MSCI ACWI (All Country World Index) Index |
Management's Discussion of Fund Performance
Market Recap: Global equities eked a 2.48% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) Index. After early-2016 volatility largely driven by concern about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-caps outpaced large-cap stocks; value bested growth. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodities prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific group (+9%). The U.S. (+4%) also rose, but Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+13%) and energy (+6%) overcame early-2016 lows. Technology (+11%) also performed well. Financials (-1%) trailed ex the recently created real estate sector (+4%). Telecom services (+1%) lost momentum amid a mode switch from “risk off” to “risk on,” though utilities (+7%), mostly in the U.S., outperformed. Meanwhile, health care (-7%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Ramona Persaud: For the year, the fund advanced 2.13%, modestly underperforming the benchmark MSCI ACWI (All Country World Index) Index. Picks in the U.K. were the biggest disappointment, as stocks here suffered amid the region’s Brexit vote and the resulting decline of the British pound. Here, our overweighting in British commercial TV giant ITV was the fund’s biggest individual detractor. Two other names from the region also weighed on relative results: retail and commercial bank Lloyds Banking Group and WH Smith, which sells books, stationery, magazines and other entertainment goods in hospitals and transportation stations. On the flip side, an overweighting in Taiwan Semiconductor Manufacturing was the fund’s largest relative contributor. Shares rallied due in part to record third-quarter sales and profits. The chipmaker is a supplier for Apple, and better-than-expected demand for the iPhone 7 accounted for the strong results. A non-index stake in Micro Focus International, a U.K.-based software provider, also lifted relative performance. From a geographical perspective, choices in Japan and Europe – particularly Germany and Switzerland – were helpful.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| United States of America* | 45.1% | |
| Japan | 13.2% | |
| United Kingdom | 9.8% | |
| Canada | 5.1% | |
| Ireland | 4.0% | |
| Taiwan | 3.0% | |
| Germany | 3.0% | |
| Israel | 2.3% | |
| France | 1.9% | |
| Other | 12.6% | |
* 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 April 30, 2016 | ||
| United States of America* | 49.8% | |
| Japan | 10.7% | |
| United Kingdom | 10.6% | |
| Ireland | 4.2% | |
| Canada | 3.5% | |
| Israel | 2.8% | |
| France | 2.8% | |
| Taiwan | 2.2% | |
| Hong Kong | 1.8% | |
| Other | 11.6% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 97.5 | 88.8 |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.5 | 11.2 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Apple, Inc. (United States of America, Technology Hardware, Storage & Peripherals) | 3.0 | 1.9 |
| Microsoft Corp. (United States of America, Software) | 2.3 | 1.6 |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 2.2 | 1.8 |
| Johnson & Johnson (United States of America, Pharmaceuticals) | 2.1 | 2.6 |
| Chevron Corp. (United States of America, Oil, Gas & Consumable Fuels) | 2.1 | 1.8 |
| Medtronic PLC (Ireland, Health Care Equipment & Supplies) | 1.8 | 1.5 |
| Micro Focus International PLC (United Kingdom, Software) | 1.8 | 1.4 |
| Suncor Energy, Inc. (Canada, Oil, Gas & Consumable Fuels) | 1.8 | 1.5 |
| JPMorgan Chase & Co. (United States of America, Banks) | 1.7 | 1.6 |
| CVS Health Corp. (United States of America, Food & Staples Retailing) | 1.7 | 1.7 |
| 20.5 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Information Technology | 17.8 | 14.6 |
| Financials | 16.1 | 17.3 |
| Health Care | 14.2 | 12.6 |
| Consumer Staples | 14.1 | 13.0 |
| Consumer Discretionary | 12.8 | 11.9 |
| Energy | 7.7 | 6.5 |
| Industrials | 5.7 | 8.1 |
| Telecommunication Services | 3.5 | 3.2 |
| Materials | 3.0 | 1.6 |
| Real Estate | 2.6 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.5% | |||
| Shares | Value | ||
| Australia - 0.1% | |||
| Asaleo Care Ltd. | 97,037 | $107,771 | |
| Austria - 0.1% | |||
| Andritz AG | 1,600 | 83,692 | |
| Bailiwick of Jersey - 0.9% | |||
| Wolseley PLC | 12,057 | 627,353 | |
| Belgium - 0.8% | |||
| Anheuser-Busch InBev SA NV | 5,000 | 573,849 | |
| Canada - 5.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 7,200 | 361,691 | |
| Constellation Software, Inc. | 1,300 | 609,002 | |
| Fairfax Financial Holdings Ltd. (sub. vtg.) | 741 | 379,505 | |
| Imperial Oil Ltd. | 28,200 | 914,561 | |
| PrairieSky Royalty Ltd. | 5,100 | 110,913 | |
| Suncor Energy, Inc. | 43,600 | 1,308,358 | |
| TOTAL CANADA | 3,684,030 | ||
| Cayman Islands - 0.6% | |||
| Goodbaby International Holdings Ltd. | 155,000 | 74,946 | |
| SITC International Holdings Co. Ltd. | 551,000 | 326,101 | |
| TOTAL CAYMAN ISLANDS | 401,047 | ||
| Chile - 0.6% | |||
| Vina San Pedro SA | 37,219,054 | 430,752 | |
| Denmark - 0.2% | |||
| Pandora A/S | 1,300 | 169,220 | |
| France - 1.9% | |||
| Alstom SA (a) | 7,768 | 208,664 | |
| Bouygues SA | 7,382 | 240,717 | |
| Cegedim SA (a) | 6,000 | 152,807 | |
| Maisons du Monde SA | 7,700 | 217,234 | |
| Sanofi SA | 6,954 | 541,152 | |
| TOTAL FRANCE | 1,360,574 | ||
| Germany - 3.0% | |||
| adidas AG | 5,100 | 837,899 | |
| AURELIUS AG | 8,099 | 482,586 | |
| GEA Group AG | 2,529 | 97,792 | |
| SAP AG | 8,269 | 728,494 | |
| TOTAL GERMANY | 2,146,771 | ||
| Hong Kong - 1.7% | |||
| HKT Trust/HKT Ltd. unit | 284,600 | 391,183 | |
| Techtronic Industries Co. Ltd. | 220,500 | 830,193 | |
| TOTAL HONG KONG | 1,221,376 | ||
| Ireland - 4.0% | |||
| Accenture PLC Class A | 7,940 | 922,946 | |
| Allergan PLC (a) | 1,600 | 334,304 | |
| Greencore Group PLC | 75,086 | 303,287 | |
| Medtronic PLC | 16,000 | 1,312,320 | |
| TOTAL IRELAND | 2,872,857 | ||
| Isle of Man - 1.3% | |||
| Paysafe Group PLC (a) | 103,000 | 545,892 | |
| Playtech Ltd. | 32,778 | 372,316 | |
| TOTAL ISLE OF MAN | 918,208 | ||
| Israel - 2.3% | |||
| Bezeq The Israel Telecommunication Corp. Ltd. | 279,400 | 507,629 | |
| Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. | 4,496 | 181,185 | |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 21,850 | 933,869 | |
| TOTAL ISRAEL | 1,622,683 | ||
| Japan - 13.2% | |||
| A/S One Corp. | 11,200 | 503,557 | |
| Astellas Pharma, Inc. | 63,400 | 940,974 | |
| Broadleaf Co. Ltd. | 10,000 | 112,616 | |
| Casio Computer Co. Ltd. (b) | 10,700 | 149,578 | |
| Daiichikosho Co. Ltd. | 21,800 | 948,956 | |
| Daito Trust Construction Co. Ltd. | 4,600 | 770,907 | |
| Hoya Corp. | 25,000 | 1,045,342 | |
| Inaba Denki Sangyo Co. Ltd. | 4,700 | 170,978 | |
| Japan Meat Co. Ltd. | 18,100 | 254,922 | |
| Japan Tobacco, Inc. | 10,600 | 403,704 | |
| KDDI Corp. | 26,600 | 808,458 | |
| Morinaga & Co. Ltd. | 1,600 | 74,530 | |
| Nippon Telegraph & Telephone Corp. | 13,100 | 580,813 | |
| Olympus Corp. | 16,300 | 582,865 | |
| ORIX Corp. | 17,400 | 276,339 | |
| Recruit Holdings Co. Ltd. | 3,900 | 156,937 | |
| Shinsei Bank Ltd. | 365,000 | 591,685 | |
| Sony Corp. | 14,200 | 447,559 | |
| Tsuruha Holdings, Inc. | 4,500 | 520,072 | |
| USS Co. Ltd. | 6,800 | 115,289 | |
| TOTAL JAPAN | 9,456,081 | ||
| Korea (South) - 1.0% | |||
| Hyundai Fire & Marine Insurance Co. Ltd. | 1,292 | 39,932 | |
| Samsung Biologics Co. Ltd. (a) | 114 | 13,555 | |
| Samsung Electronics Co. Ltd. | 442 | 633,386 | |
| TOTAL KOREA (SOUTH) | 686,873 | ||
| Netherlands - 1.4% | |||
| Koninklijke Philips Electronics NV | 6,500 | 195,859 | |
| LyondellBasell Industries NV Class A | 7,700 | 612,535 | |
| NXP Semiconductors NV (a) | 1,700 | 170,000 | |
| TOTAL NETHERLANDS | 978,394 | ||
| Singapore - 0.0% | |||
| United Overseas Bank Ltd. | 477 | 6,439 | |
| South Africa - 1.1% | |||
| Capitec Bank Holdings Ltd. | 11,300 | 574,061 | |
| EOH Holdings Ltd. | 19,400 | 230,059 | |
| TOTAL SOUTH AFRICA | 804,120 | ||
| Spain - 1.1% | |||
| Amadeus IT Holding SA Class A | 14,700 | 693,888 | |
| Ferrovial SA | 4,700 | 91,451 | |
| Ferrovial SA rights 11/14/16 (a) | 4,700 | 2,012 | |
| TOTAL SPAIN | 787,351 | ||
| Sweden - 0.5% | |||
| Loomis AB (B Shares) | 13,000 | 369,901 | |
| Switzerland - 1.2% | |||
| Banque Cantonale Vaudoise | 570 | 357,996 | |
| Chubb Ltd. | 3,800 | 482,600 | |
| TOTAL SWITZERLAND | 840,596 | ||
| Taiwan - 3.0% | |||
| ECLAT Textile Co. Ltd. | 45,298 | 515,787 | |
| King's Town Bank | 120,000 | 98,387 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 261,000 | 1,567,795 | |
| TOTAL TAIWAN | 2,181,969 | ||
| United Kingdom - 9.8% | |||
| Beijing Yanjing Brewery (UBS Warrant Programme) ELS warrants 10/6/17 (a)(c) | 62,500 | 70,287 | |
| British American Tobacco PLC (United Kingdom) | 11,100 | 636,174 | |
| BT Group PLC | 56,530 | 259,475 | |
| Coca-Cola European Partners PLC | 4,600 | 176,824 | |
| GlaxoSmithKline PLC | 26,800 | 529,416 | |
| Hilton Food Group PLC | 56,200 | 416,516 | |
| Howden Joinery Group PLC | 51,800 | 237,699 | |
| Imperial Tobacco Group PLC | 7,649 | 370,329 | |
| ITV PLC | 299,000 | 623,989 | |
| Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. ELS (UBS Warrant Programme) warrants 10/23/17 (a)(c) | 7,672 | 78,862 | |
| Lloyds Banking Group PLC | 646,300 | 451,326 | |
| Mears Group PLC | 16,500 | 90,932 | |
| Micro Focus International PLC | 50,000 | 1,310,292 | |
| Reckitt Benckiser Group PLC | 4,551 | 407,135 | |
| St. James's Place Capital PLC | 30,291 | 350,370 | |
| The Restaurant Group PLC | 13,200 | 60,669 | |
| WH Smith PLC | 36,152 | 651,803 | |
| Whitbread PLC | 4,561 | 201,813 | |
| Wuliangye Yibin Co. Ltd. ELS (A Shares) (UBS Warrant Programme) warrants 3/7/19 (a)(c) | 27,300 | 140,936 | |
| TOTAL UNITED KINGDOM | 7,064,847 | ||
| United States of America - 42.6% | |||
| American Tower Corp. | 8,960 | 1,050,022 | |
| Amgen, Inc. | 4,220 | 595,695 | |
| Apple, Inc. | 18,750 | 2,128,872 | |
| AutoZone, Inc. (a) | 500 | 371,080 | |
| Ball Corp. | 3,900 | 300,573 | |
| Bank of America Corp. | 66,580 | 1,098,570 | |
| Bristol-Myers Squibb Co. | 4,600 | 234,186 | |
| Chevron Corp. | 14,465 | 1,515,209 | |
| Comcast Corp. Class A | 15,700 | 970,574 | |
| ConocoPhillips Co. | 16,900 | 734,305 | |
| Coty, Inc. Class A | 5,624 | 129,296 | |
| CVS Health Corp. | 14,400 | 1,211,040 | |
| Danaher Corp. | 8,400 | 659,820 | |
| Dell Technologies, Inc. (a) | 2,753 | 135,145 | |
| Deluxe Corp. | 2,700 | 165,240 | |
| Diamond Hill Investment Group, Inc. | 2,900 | 527,829 | |
| Dr. Pepper Snapple Group, Inc. | 6,241 | 547,897 | |
| E.I. du Pont de Nemours & Co. | 8,300 | 570,957 | |
| Exxon Mobil Corp. | 11,030 | 919,020 | |
| Fortive Corp. | 4,200 | 214,410 | |
| Gilead Sciences, Inc. | 5,100 | 375,513 | |
| H&R Block, Inc. | 20,100 | 461,697 | |
| Johnson & Johnson | 13,100 | 1,519,469 | |
| JPMorgan Chase & Co. | 17,730 | 1,227,980 | |
| L Brands, Inc. | 5,600 | 404,264 | |
| McDonald's Corp. | 4,400 | 495,308 | |
| Microsoft Corp. | 27,364 | 1,639,651 | |
| Molson Coors Brewing Co. Class B | 5,600 | 581,336 | |
| Monsanto Co. | 2,500 | 251,925 | |
| MSCI, Inc. | 7,400 | 593,406 | |
| Oracle Corp. | 15,126 | 581,141 | |
| PepsiCo, Inc. | 8,500 | 911,200 | |
| Procter & Gamble Co. | 8,159 | 708,201 | |
| Roper Technologies, Inc. | 1,800 | 311,958 | |
| S&P Global, Inc. | 8,140 | 991,859 | |
| Sabre Corp. | 6,900 | 178,227 | |
| Stock Yards Bancorp, Inc. | 2,300 | 78,430 | |
| SunTrust Banks, Inc. | 14,900 | 673,927 | |
| Target Corp. | 4,800 | 329,904 | |
| The Coca-Cola Co. | 16,400 | 695,360 | |
| Total System Services, Inc. | 4,100 | 204,508 | |
| U.S. Bancorp | 18,980 | 849,545 | |
| United Technologies Corp. | 6,100 | 623,420 | |
| VF Corp. | 3,900 | 211,419 | |
| W.R. Grace & Co. | 5,000 | 334,800 | |
| Wells Fargo & Co. | 26,057 | 1,198,883 | |
| TOTAL UNITED STATES OF AMERICA | 30,513,071 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $63,688,457) | 69,909,825 | ||
| Principal Amount | Value | ||
| Nonconvertible Bonds - 0.0% | |||
| Canada - 0.0% | |||
| Constellation Software, Inc. 7.6% 3/31/40 (Cost $2,060)(d) | CAD | 2,400 | 2,076 |
| Shares | Value | ||
| Money Market Funds - 2.2% | |||
| Fidelity Cash Central Fund, 0.41% (e) | 1,403,643 | 1,404,064 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 154,835 | 154,866 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $1,558,569) | 1,558,930 | ||
| TOTAL INVESTMENT PORTFOLIO - 99.7% | |||
| (Cost $65,249,086) | 71,470,831 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.3% | 203,858 | ||
| NET ASSETS - 100% | $71,674,689 |
Currency Abbreviations
CAD – Canadian dollar
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) 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 $290,085 or 0.4% of net assets.
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
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 | $14,442 |
| Fidelity Securities Lending Cash Central Fund | 4,533 |
| Total | $18,975 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $9,089,181 | $7,803,723 | $1,285,458 | $-- |
| Consumer Staples | 10,003,071 | 8,959,762 | 1,043,309 | -- |
| Energy | 5,502,366 | 5,502,366 | -- | -- |
| Financials | 11,621,740 | 10,880,329 | 741,411 | -- |
| Health Care | 10,274,844 | 8,249,747 | 2,025,097 | -- |
| Industrials | 4,215,116 | 4,019,257 | 195,859 | -- |
| Information Technology | 12,764,230 | 10,467,941 | 2,296,289 | -- |
| Materials | 2,070,790 | 2,070,790 | -- | -- |
| Real Estate | 1,820,929 | 1,820,929 | -- | -- |
| Telecommunication Services | 2,547,558 | 898,812 | 1,648,746 | -- |
| Corporate Bonds | 2,076 | -- | 2,076 | -- |
| Money Market Funds | 1,558,930 | 1,558,930 | -- | -- |
| Total Investments in Securities: | $71,470,831 | $62,232,586 | $9,238,245 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $7,037,294 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $147,421) — See accompanying schedule: Unaffiliated issuers (cost $63,690,517) | $69,911,901 | |
| Fidelity Central Funds (cost $1,558,569) | 1,558,930 | |
| Total Investments (cost $65,249,086) | $71,470,831 | |
| Receivable for investments sold | 217,082 | |
| Receivable for fund shares sold | 195,378 | |
| Dividends receivable | 164,138 | |
| Interest receivable | 12 | |
| Distributions receivable from Fidelity Central Funds | 751 | |
| Prepaid expenses | 198 | |
| Other receivables | 929 | |
| Total assets | 72,049,319 | |
| Liabilities | ||
| Payable for investments purchased | $13,691 | |
| Payable for fund shares redeemed | 89,742 | |
| Accrued management fee | 41,980 | |
| Other affiliated payables | 19,420 | |
| Audit fees payable | 43,680 | |
| Other payables and accrued expenses | 11,251 | |
| Collateral on securities loaned, at value | 154,866 | |
| Total liabilities | 374,630 | |
| Net Assets | $71,674,689 | |
| Net Assets consist of: | ||
| Paid in capital | $66,771,719 | |
| Undistributed net investment income | 66,681 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,380,727) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 6,217,016 | |
| Net Assets, for 5,943,693 shares outstanding | $71,674,689 | |
| Net Asset Value, offering price and redemption price per share ($71,674,689 ÷ 5,943,693 shares) | $12.06 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $1,831,551 | |
| Interest | 158 | |
| Income from Fidelity Central Funds | 18,975 | |
| Income before foreign taxes withheld | 1,850,684 | |
| Less foreign taxes withheld | (96,615) | |
| Total income | 1,754,069 | |
| Expenses | ||
| Management fee | $506,682 | |
| Transfer agent fees | 196,199 | |
| Accounting and security lending fees | 37,627 | |
| Custodian fees and expenses | 22,456 | |
| Independent trustees' fees and expenses | 311 | |
| Registration fees | 22,841 | |
| Audit | 69,212 | |
| Legal | 754 | |
| Miscellaneous | 634 | |
| Total expenses before reductions | 856,716 | |
| Expense reductions | (1,067) | 855,649 |
| Net investment income (loss) | 898,420 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (1,270,551) | |
| Fidelity Central Funds | 1,122 | |
| Foreign currency transactions | (5,658) | |
| Total net realized gain (loss) | (1,275,087) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | 1,966,223 | |
| Assets and liabilities in foreign currencies | (2,699) | |
| Total change in net unrealized appreciation (depreciation) | 1,963,524 | |
| Net gain (loss) | 688,437 | |
| Net increase (decrease) in net assets resulting from operations | $1,586,857 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $898,420 | $812,981 |
| Net realized gain (loss) | (1,275,087) | 1,091,922 |
| Change in net unrealized appreciation (depreciation) | 1,963,524 | (622,502) |
| Net increase (decrease) in net assets resulting from operations | 1,586,857 | 1,282,401 |
| Distributions to shareholders from net investment income | (921,832) | (855,399) |
| Distributions to shareholders from net realized gain | (910,524) | (3,941,634) |
| Total distributions | (1,832,356) | (4,797,033) |
| Share transactions | ||
| Proceeds from sales of shares | 29,645,365 | 33,328,285 |
| Reinvestment of distributions | 1,694,504 | 4,498,152 |
| Cost of shares redeemed | (27,349,989) | (18,426,196) |
| Net increase (decrease) in net assets resulting from share transactions | 3,989,880 | 19,400,241 |
| Redemption fees | 4,736 | 1,475 |
| Total increase (decrease) in net assets | 3,749,117 | 15,887,084 |
| Net Assets | ||
| Beginning of period | 67,925,572 | 52,038,488 |
| End of period | $71,674,689 | $67,925,572 |
| Other Information | ||
| Undistributed net investment income end of period | $66,681 | $89,501 |
| Shares | ||
| Sold | 2,505,409 | 2,706,849 |
| Issued in reinvestment of distributions | 141,047 | 370,373 |
| Redeemed | (2,305,213) | (1,519,683) |
| Net increase (decrease) | 341,243 | 1,557,539 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Global Equity Income Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $12.12 | $12.87 | $12.20 | $10.16 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | .15 | .16 | .28C | .22 | .08 |
| Net realized and unrealized gain (loss) | .11 | .21 | .92 | 2.06 | .15 |
| Total from investment operations | .26 | .37 | 1.20 | 2.28 | .23 |
| Distributions from net investment income | (.15) | (.16) | (.25) | (.21) | (.07) |
| Distributions from net realized gain | (.16) | (.95) | (.28) | (.03) | – |
| Total distributions | (.32)D | (1.12)E | (.53) | (.24) | (.07) |
| Redemption fees added to paid in capitalB,F | – | – | – | – | – |
| Net asset value, end of period | $12.06 | $12.12 | $12.87 | $12.20 | $10.16 |
| Total ReturnG,H | 2.13% | 2.93% | 10.10% | 22.73% | 2.25% |
| Ratios to Average Net AssetsI,J | |||||
| Expenses before reductions | 1.18% | 1.15% | 1.16% | 1.28% | 2.18%K |
| Expenses net of fee waivers, if any | 1.18% | 1.15% | 1.16% | 1.20% | 1.20%K |
| Expenses net of all reductions | 1.18% | 1.14% | 1.16% | 1.19% | 1.17%K |
| Net investment income (loss) | 1.24% | 1.27% | 2.21%C | 1.94% | 1.62%K |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $71,675 | $67,926 | $52,038 | $42,271 | $26,838 |
| Portfolio turnover rateL | 40% | 64% | 92% | 66% | 33%M |
A For the period May 2, 2012 (commencement of operations) to October 31, 2012.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.56%.
D Total distributions of $.32 per share is comprised of distributions from net investment income of $.153 and distributions from net realized gain of $.162 per share.
E Total distributions of $1.12 per share is comprised of distributions from net investment income of $.164 and distributions from net realized gain of $.954 per share.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J 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. 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 Fund.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Global Equity Income Fund (the Fund) is a fund of Fidelity Investment Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
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.
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 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.
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 October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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) 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 | $9,523,657 |
| Gross unrealized depreciation | (3,580,829) |
| Net unrealized appreciation (depreciation) on securities | $5,942,828 |
| Tax Cost | $65,528,003 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $66,681 |
| Capital loss carryforward | $(1,101,811) |
| Net unrealized appreciation (depreciation) on securities and other investments | $5,938,099 |
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 fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(854,867) |
| Long-term | (246,944) |
| Total no expiration | $(1,101,811) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $921,832 | $ 1,107,432 |
| Long-term Capital Gains | 910,524 | 3,689,601 |
| Total | $1,832,356 | $ 4,797,033 |
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.
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 $31,583,142 and $27,374,537, 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 annual 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 annual rate of .27% 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 $105 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $187 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in 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. Total security lending income during the period amounted to $4,533.
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 $579 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $485.
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Global Equity Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Global Equity Income Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from May 2, 2012 (commencement of operations) to October 31, 2012. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Global Equity Income Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from May 2, 2012 (commencement of operations) to October 31, 2012 in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 19, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Actual | 1.16% | $1,000.00 | $1,018.10 | $5.88 |
| Hypothetical-C | $1,000.00 | $1,019.30 | $5.89 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
A total of 0.24% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates 57%, 76%, 76%, and 76% of the dividends distributed in December, April, July, and October respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the 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 |
| 12/07/15 | $0.0346 | $0.0030 |
| 04/11/16 | $0.0101 | $0.0011 |
| 07/11/16 | $0.0626 | $0.0066 |
| 10/10/16 | $0.0340 | $0.0036 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Global Equity Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one- and three-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity Global Equity Income Fund
Fidelity Global Equity Income Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
GED-ANN-1216
1.938162.104
|
Fidelity Advisor® Emerging Europe, Middle East, Africa (EMEA) Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® Emerging Europe, Middle East, Africa (EMEA) Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Class A (incl. 5.75% sales charge) | 3.88% | 0.16% | (1.73)% |
| Class T (incl. 3.50% sales charge) | 6.14% | 0.36% | (1.72)% |
| Class C (incl. contingent deferred sales charge) | 8.33% | 0.58% | (1.80)% |
| Class I | 10.69% | 1.73% | (0.73)% |
A From May 8, 2008
Class C shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Emerging Europe, Middle East, Africa (EMEA) Fund - Class A on May 8, 2008, when the fund started, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EM (Emerging Markets) Europe, Middle East and Africa Index performed over the same period.
| Period Ending Values | ||
|
| $8,625 | Fidelity Advisor® Emerging Europe, Middle East, Africa (EMEA) Fund - Class A |
|
| $7,085 | MSCI EM (Emerging Markets) Europe, Middle East and Africa Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Adam Kutas: For the one-year period ending October 31, 2016, the fund’s share classes (excluding sales charges, if applicable) advanced solidly, outperforming the 2.88% result of the fund’s benchmark MSCI EM (Emerging Markets) Europe, Middle East and Africa Index. Volatility was high this period, driven by the bottoming-out of the commodities market and the subsequent rebound, which significantly buoyed emerging markets stocks. Choices in financials and materials added the most value, along with picks consumer staples and consumer discretionary. Our non-index stake in DRDGOLD was by far the largest relative individual contributor. In January, shares began rising steadily, benefitting from increasing gold prices. By period end, I trimmed our position to keep it in check and take profits. AngloGold Ashanti, a South African miner, also contributed. Like DRDGOLD, the stock rose steadily from January until August when it pulled back somewhat. Conversely, the fund’s largest individual detractor was an out-of-benchmark investment in equity-linked notes in select Saudi Arabian stocks (issued by HSBC Bank). Many of the Saudi Arabian stocks we owned through HSBC were those of companies dependent on consumers, who were pressured by the country’s recent tax hikes and reduced subsidies.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| South Africa | 43.5% | |
| Russia | 22.0% | |
| United Arab Emirates | 5.2% | |
| United Kingdom | 3.7% | |
| Romania | 3.1% | |
| Hungary | 2.1% | |
| Poland | 2.0% | |
| Netherlands | 1.9% | |
| Qatar | 1.8% | |
| Other* | 14.7% | |
* 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 April 30, 2016 | ||
| South Africa | 41.5% | |
| Russia | 23.7% | |
| Turkey | 4.1% | |
| United Arab Emirates | 3.8% | |
| Romania | 3.4% | |
| United Kingdom | 3.2% | |
| Hungary | 2.3% | |
| Poland | 2.2% | |
| Qatar | 2.0% | |
| Other* | 13.8% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 99.3 | 98.9 |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.7 | 1.1 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Naspers Ltd. Class N (South Africa, Media) | 8.3 | 6.0 |
| Sberbank of Russia (Russia, Banks) | 5.0 | 5.1 |
| Lukoil PJSC (Russia, Oil, Gas & Consumable Fuels) | 4.7 | 4.5 |
| Gazprom OAO (Russia, Oil, Gas & Consumable Fuels) | 4.0 | 5.7 |
| FirstRand Ltd. (South Africa, Diversified Financial Services) | 3.0 | 2.5 |
| Shoprite Holdings Ltd. (South Africa, Food & Staples Retailing) | 2.3 | 1.9 |
| Standard Bank Group Ltd. (South Africa, Banks) | 2.3 | 1.3 |
| NOVATEK OAO (Russia, Oil, Gas & Consumable Fuels) | 2.2 | 1.5 |
| OTP Bank PLC (Hungary, Banks) | 2.1 | 2.3 |
| Remgro Ltd. (South Africa, Diversified Financial Services) | 2.0 | 2.7 |
| 35.9 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 31.0 | 32.9 |
| Consumer Discretionary | 18.3 | 14.8 |
| Energy | 15.6 | 18.3 |
| Materials | 11.7 | 10.1 |
| Consumer Staples | 10.4 | 10.9 |
| Industrials | 5.9 | 7.2 |
| Real Estate | 2.6 | 0.0 |
| Telecommunication Services | 2.3 | 2.5 |
| Health Care | 1.5 | 2.2 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Market Sectors may include more than one industry category.
The Fund may invest up to 35% of its total assets in any industry that represents more than 20% of the emerging Europe, Middle East and Africa markets. As of October 31, 2016, the Fund did not have more than 25% of its total assets invested in any one industry.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.0% | |||
| Shares | Value | ||
| Austria - 0.6% | |||
| Buwog-Gemeinnuetzige Wohnung | 23,299 | $563,066 | |
| Bailiwick of Jersey - 0.7% | |||
| Glencore Xstrata PLC (a) | 137,200 | 413,724 | |
| Wizz Air Holdings PLC (a) | 13,888 | 256,854 | |
| TOTAL BAILIWICK OF JERSEY | 670,578 | ||
| Bermuda - 0.5% | |||
| Central European Media Enterprises Ltd.: | |||
| Class A (a)(b) | 50,000 | 122,500 | |
| Class A (Czech Republic) (a) | 131,600 | 320,455 | |
| TOTAL BERMUDA | 442,955 | ||
| Botswana - 0.3% | |||
| First National Bank of Botswana Ltd. | 1,042,331 | 301,817 | |
| British Virgin Islands - 0.5% | |||
| Lenta Ltd. GDR (a) | 65,900 | 478,434 | |
| Canada - 0.7% | |||
| Detour Gold Corp. (a) | 31,300 | 596,691 | |
| ShawCor Ltd. Class A | 3,700 | 92,548 | |
| TOTAL CANADA | 689,239 | ||
| Czech Republic - 0.5% | |||
| MONETA Money Bank A/S | 134,000 | 467,269 | |
| Estonia - 0.5% | |||
| Tallinna Kaubamaja AS | 57,700 | 500,387 | |
| Germany - 0.3% | |||
| UNIWHEELS AG | 5,305 | 274,834 | |
| Greece - 1.3% | |||
| Jumbo SA | 26,536 | 377,232 | |
| Motor Oil (HELLAS) Corinth Refineries SA | 37,500 | 449,117 | |
| Sarantis SA | 37,800 | 416,609 | |
| TOTAL GREECE | 1,242,958 | ||
| Hungary - 2.1% | |||
| OTP Bank PLC | 73,400 | 2,061,739 | |
| Israel - 0.6% | |||
| Elbit Systems Ltd. (Israel) | 5,700 | 564,607 | |
| Kenya - 1.4% | |||
| British American Tobacco Kenya Ltd. | 33,400 | 276,006 | |
| Kcb Group Ltd. | 1,335,600 | 358,043 | |
| Safaricom Ltd. | 4,039,244 | 788,775 | |
| TOTAL KENYA | 1,422,824 | ||
| Lithuania - 0.4% | |||
| Apranga AB (a) | 142,922 | 398,507 | |
| Netherlands - 1.9% | |||
| AmRest Holdings NV (a) | 8,200 | 520,540 | |
| Steinhoff International Holdings NV (South Africa) | 169,300 | 913,941 | |
| X5 Retail Group NV GDR (Reg. S) (a) | 15,100 | 450,584 | |
| TOTAL NETHERLANDS | 1,885,065 | ||
| Nigeria - 1.7% | |||
| Dangote Cement PLC | 738,994 | 410,227 | |
| Nigerian Breweries PLC | 1,446,285 | 670,406 | |
| Zenith Bank PLC | 13,157,876 | 613,547 | |
| TOTAL NIGERIA | 1,694,180 | ||
| Oman - 0.5% | |||
| BankMuscat SAOG (a) | 450,000 | 483,833 | |
| Pakistan - 1.6% | |||
| Engro Corp. Ltd. | 142,100 | 378,490 | |
| Indus Motor Co. Ltd. | 20,150 | 290,664 | |
| Millat Tractors Ltd. | 56,050 | 364,250 | |
| United Bank Ltd. | 259,400 | 498,701 | |
| TOTAL PAKISTAN | 1,532,105 | ||
| Poland - 2.0% | |||
| Globe Trade Centre SA (a) | 210,000 | 429,822 | |
| Kruk SA | 7,100 | 411,712 | |
| NG2 SA | 13,200 | 669,883 | |
| Orbis SA | 25,500 | 461,480 | |
| TOTAL POLAND | 1,972,897 | ||
| Qatar - 1.8% | |||
| Qatar National Bank SAQ | 41,521 | 1,824,322 | |
| Romania - 3.1% | |||
| Banca Transilvania SA | 2,056,052 | 1,159,616 | |
| BRD-Groupe Societe Generale | 557,318 | 1,490,852 | |
| Fondul Propietatea SA GDR | 43,000 | 436,450 | |
| TOTAL ROMANIA | 3,086,918 | ||
| Russia - 19.7% | |||
| Alrosa Co. Ltd. (a) | 740,000 | 1,034,112 | |
| Gazprom OAO (a) | 1,821,736 | 3,991,985 | |
| Lukoil PJSC (a) | 15,400 | 751,485 | |
| Lukoil PJSC sponsored ADR | 78,395 | 3,821,756 | |
| Magnit OJSC | 7,080 | 1,187,049 | |
| Moscow Exchange MICEX-RTS OAO (a) | 402,000 | 740,008 | |
| NOVATEK OAO (a) | 207,400 | 2,161,628 | |
| Novolipetsk Steel OJSC GDR (Reg. S) | 54,800 | 887,760 | |
| Sberbank of Russia (a) | 2,109,220 | 4,909,524 | |
| TOTAL RUSSIA | 19,485,307 | ||
| Slovenia - 0.1% | |||
| Petrol d.d., Ljubljana | 300 | 105,302 | |
| South Africa - 43.5% | |||
| African Rainbow Minerals Ltd. | 140,300 | 1,014,499 | |
| AngloGold Ashanti Ltd. (a) | 101,400 | 1,380,631 | |
| ArcelorMittal South Africa Ltd. (a) | 530,000 | 452,026 | |
| Aveng Ltd. (a) | 1,189,200 | 623,539 | |
| Barloworld Ltd. | 153,400 | 993,637 | |
| Cashbuild Ltd. | 16,000 | 467,241 | |
| City Lodge Hotels Ltd. | 45,300 | 489,762 | |
| Clicks Group Ltd. | 118,107 | 1,099,281 | |
| DRDGOLD Ltd. | 2,464,814 | 1,249,824 | |
| Exxaro Resources Ltd. | 91,300 | 671,694 | |
| FirstRand Ltd. | 838,400 | 3,004,467 | |
| Grindrod Ltd. | 610,300 | 502,860 | |
| Holdsport Ltd. | 124,700 | 545,549 | |
| Hulamin Ltd. (a) | 1,096,900 | 423,832 | |
| Imperial Holdings Ltd. | 93,000 | 1,174,730 | |
| KAP Industrial Holdings Ltd. | 1,253,800 | 720,642 | |
| Kumba Iron Ore Ltd. (a) | 55,000 | 557,516 | |
| Mr Price Group Ltd. | 104,300 | 1,189,061 | |
| MTN Group Ltd. | 89,550 | 773,474 | |
| Murray & Roberts Holdings Ltd. | 559,000 | 382,651 | |
| Nampak Ltd. | 960,000 | 1,338,500 | |
| Naspers Ltd. Class N | 49,000 | 8,212,486 | |
| Northam Platinum Ltd. (a) | 310,400 | 1,133,289 | |
| Pioneer Foods Ltd. | 112,400 | 1,356,844 | |
| Pretoria Portland Cement Co. Ltd. | 918,549 | 374,675 | |
| PSG Group Ltd. | 118,300 | 1,848,581 | |
| Remgro Ltd. | 117,600 | 1,953,640 | |
| RMB Holdings Ltd. | 226,500 | 999,817 | |
| Sasol Ltd. | 33,100 | 914,056 | |
| Shoprite Holdings Ltd. | 156,300 | 2,306,754 | |
| Spar Group Ltd. | 70,500 | 998,647 | |
| Spur Corp. Ltd. | 191,500 | 453,053 | |
| Standard Bank Group Ltd. | 210,643 | 2,234,882 | |
| Super Group Ltd. (a) | 161,000 | 475,224 | |
| Telkom SA Ltd. | 142,900 | 659,298 | |
| TOTAL SOUTH AFRICA | 42,976,662 | ||
| Turkey - 1.8% | |||
| Koc Holding A/S | 232,850 | 970,757 | |
| Turk Traktor ve Ziraat Makinalari A/S | 15,000 | 389,270 | |
| Turkiye Garanti Bankasi A/S | 145,000 | 394,102 | |
| TOTAL TURKEY | 1,754,129 | ||
| United Arab Emirates - 5.2% | |||
| Agthia Group PJSC | 274,787 | 448,882 | |
| Aldar Properties PJSC (a) | 1,299,101 | 933,753 | |
| Dubai Financial Market PJSC (a) | 940,000 | 294,314 | |
| Dubai Islamic Bank Pakistan Ltd. (a) | 653,740 | 932,656 | |
| Dubai Parks and Resorts PJSC (a) | 1,205,140 | 515,136 | |
| Emaar Malls Group PJSC (a) | 967,209 | 676,766 | |
| First Gulf Bank PJSC | 334,223 | 1,046,452 | |
| SHUAA Capital PSC (a) | 983,913 | 297,348 | |
| TOTAL UNITED ARAB EMIRATES | 5,145,307 | ||
| United Kingdom - 3.7% | |||
| Aldrees Petoleum & Transport ELS (HSBC Warrant Program) warrants 2/7/17 (a)(c) | 40,000 | 324,406 | |
| Bupa Arabia ELS (HSBC Warrant Program) warrants 10/19/18(a)(c) | 10,300 | 330,020 | |
| Georgia Healthcare Group PLC (a) | 107,500 | 465,793 | |
| Mediclinic International PLC | 35,300 | 389,684 | |
| NMC Health PLC | 32,100 | 574,033 | |
| Saudi Dairy & Foodstuff Co. ELS (HSBC Warrant Program) warrants 6/4/18 (a)(c) | 14,000 | 431,289 | |
| Savola Group ELS (HSBC Warrant Program) warrants 2/6/17 (a)(c) | 64,800 | 541,778 | |
| Tullow Oil PLC (a)(b) | 60,600 | 196,340 | |
| United International Transportation Co. ELS (HSBC Warrant Program) warrants 7/31/17 (a)(c) | 66,861 | 440,292 | |
| TOTAL UNITED KINGDOM | 3,693,635 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $80,203,352) | 95,718,876 | ||
| Nonconvertible Preferred Stocks - 2.3% | |||
| Russia - 2.3% | |||
| Surgutneftegas OJSC (a) | 3,196,200 | 1,449,224 | |
| Tatneft PAO (a) | 246,700 | 789,891 | |
| TOTAL RUSSIA | 2,239,115 | ||
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $2,428,530) | 2,239,115 | ||
| Money Market Funds - 0.7% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 536,251 | 536,412 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 195,478 | 195,517 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $731,912) | 731,929 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.0% | |||
| (Cost $83,363,794) | 98,689,920 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 25,680 | ||
| NET ASSETS - 100% | $98,715,600 |
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,067,785 or 2.1% of net assets.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
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 | $4,578 |
| Fidelity Securities Lending Cash Central Fund | 529 |
| Total | $5,107 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $17,977,580 | $17,977,580 | $-- | $-- |
| Consumer Staples | 10,189,883 | 10,189,883 | -- | -- |
| Energy | 15,289,724 | 8,182,974 | 7,106,750 | -- |
| Financials | 30,831,477 | 23,854,168 | 6,977,309 | -- |
| Health Care | 1,429,510 | 1,429,510 | -- | -- |
| Industrials | 5,769,067 | 5,769,067 | -- | -- |
| Materials | 11,645,796 | 9,015,341 | 2,630,455 | -- |
| Real Estate | 2,603,407 | 2,603,407 | -- | -- |
| Telecommunication Services | 2,221,547 | 1,448,073 | 773,474 | -- |
| Money Market Funds | 731,929 | 731,929 | -- | -- |
| Total Investments in Securities: | $98,689,920 | $81,201,932 | $17,487,988 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $294,372 |
| Level 2 to Level 1 | $1,684,126 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $182,702) — See accompanying schedule: Unaffiliated issuers (cost $82,631,882) | $97,957,991 | |
| Fidelity Central Funds (cost $731,912) | 731,929 | |
| Total Investments (cost $83,363,794) | $98,689,920 | |
| Foreign currency held at value (cost $104,766) | 105,759 | |
| Receivable for investments sold | 12,701 | |
| Receivable for fund shares sold | 257,757 | |
| Dividends receivable | 100,257 | |
| Distributions receivable from Fidelity Central Funds | 489 | |
| Prepaid expenses | 242 | |
| Other receivables | 1,390 | |
| Total assets | 99,168,515 | |
| Liabilities | ||
| Payable for fund shares redeemed | $47,920 | |
| Accrued management fee | 70,931 | |
| Distribution and service plan fees payable | 7,784 | |
| Other affiliated payables | 26,790 | |
| Audit fees | 46,689 | |
| Custody fees | 31,623 | |
| Other payables and accrued expenses | 25,678 | |
| Collateral on securities loaned, at value | 195,500 | |
| Total liabilities | 452,915 | |
| Net Assets | $98,715,600 | |
| Net Assets consist of: | ||
| Paid in capital | $106,043,529 | |
| Undistributed net investment income | 1,115,481 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (23,749,190) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 15,305,780 | |
| Net Assets | $98,715,600 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($7,867,007 ÷ 967,625 shares) | $8.13 | |
| Maximum offering price per share (100/94.25 of $8.13) | $8.63 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($2,579,520 ÷ 318,298 shares) | $8.10 | |
| Maximum offering price per share (100/96.50 of $8.10) | $8.39 | |
| Class C: | ||
| Net Asset Value and offering price per share ($6,269,091 ÷ 777,407 shares)(a) | $8.06 | |
| Emerging Europe, Middle East, Africa (EMEA): | ||
| Net Asset Value, offering price and redemption price per share ($76,192,646 ÷ 9,355,033 shares) | $8.14 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($5,807,336 ÷ 713,661 shares) | $8.14 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $3,402,759 | |
| Income from Fidelity Central Funds | 5,107 | |
| Income before foreign taxes withheld | 3,407,866 | |
| Less foreign taxes withheld | (402,754) | |
| Total income | 3,005,112 | |
| Expenses | ||
| Management fee | $675,936 | |
| Transfer agent fees | 244,631 | |
| Distribution and service plan fees | 76,394 | |
| Accounting and security lending fees | 43,862 | |
| Custodian fees and expenses | 121,777 | |
| Independent trustees' fees and expenses | 360 | |
| Registration fees | 80,464 | |
| Audit | 69,765 | |
| Legal | 250 | |
| Miscellaneous | 779 | |
| Total expenses before reductions | 1,314,218 | |
| Expense reductions | (60,509) | 1,253,709 |
| Net investment income (loss) | 1,751,403 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of foreign taxes of $6,694) | (6,330,602) | |
| Fidelity Central Funds | 162 | |
| Foreign currency transactions | (4,960) | |
| Total net realized gain (loss) | (6,335,400) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $7,733) | 12,445,211 | |
| Assets and liabilities in foreign currencies | 223 | |
| Total change in net unrealized appreciation (depreciation) | 12,445,434 | |
| Net gain (loss) | 6,110,034 | |
| Net increase (decrease) in net assets resulting from operations | $7,861,437 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,751,403 | $1,633,113 |
| Net realized gain (loss) | (6,335,400) | (10,780,681) |
| Change in net unrealized appreciation (depreciation) | 12,445,434 | (7,778,956) |
| Net increase (decrease) in net assets resulting from operations | 7,861,437 | (16,926,524) |
| Distributions to shareholders from net investment income | (1,323,710) | (2,091,570) |
| Distributions to shareholders from net realized gain | – | (504,771) |
| Total distributions | (1,323,710) | (2,596,341) |
| Share transactions - net increase (decrease) | 9,065,893 | (17,106,646) |
| Redemption fees | 36,545 | 15,219 |
| Total increase (decrease) in net assets | 15,640,165 | (36,614,292) |
| Net Assets | ||
| Beginning of period | 83,075,435 | 119,689,727 |
| End of period | $98,715,600 | $83,075,435 |
| Other Information | ||
| Undistributed net investment income end of period | $1,115,481 | $1,236,658 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.49 | $9.04 | $9.49 | $8.71 | $8.34 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .14 | .12 | .13 | .16 | .18 |
| Net realized and unrealized gain (loss) | .61 | (1.50) | (.46) | .85 | .34 |
| Total from investment operations | .75 | (1.38) | (.33) | 1.01 | .52 |
| Distributions from net investment income | (.11) | (.14) | (.12) | (.15) | (.15) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.11) | (.17)B | (.12) | (.23)C | (.15) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $8.13 | $7.49 | $9.04 | $9.49 | $8.71 |
| Total ReturnE,F | 10.22% | (15.42)% | (3.48)% | 11.75% | 6.38% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.69% | 1.61% | 1.60% | 1.64% | 1.62% |
| Expenses net of fee waivers, if any | 1.65% | 1.61% | 1.60% | 1.63% | 1.62% |
| Expenses net of all reductions | 1.64% | 1.60% | 1.60% | 1.62% | 1.60% |
| Net investment income (loss) | 1.90% | 1.51% | 1.45% | 1.82% | 2.09% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $7,867 | $5,788 | $7,889 | $10,883 | $8,934 |
| Portfolio turnover rateI | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.17 per share is comprised of distributions from net investment income of $.135 and distributions from net realized gain of $.039 per share.
C Total distributions of $.23 per share is comprised of distributions from net investment income of $.151 and distributions from net realized gain of $.074 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.44 | $9.01 | $9.46 | $8.68 | $8.31 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .12 | .10 | .11 | .14 | .15 |
| Net realized and unrealized gain (loss) | .61 | (1.51) | (.46) | .84 | .35 |
| Total from investment operations | .73 | (1.41) | (.35) | .98 | .50 |
| Distributions from net investment income | (.07) | (.13) | (.10) | (.12) | (.13) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.07) | (.16)B | (.10) | (.20)C | (.13) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $8.10 | $7.44 | $9.01 | $9.46 | $8.68 |
| Total ReturnE,F | 9.98% | (15.80)% | (3.67)% | 11.42% | 6.14% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.00% | 1.92% | 1.92% | 1.93% | 1.89% |
| Expenses net of fee waivers, if any | 1.90% | 1.90% | 1.90% | 1.90% | 1.89% |
| Expenses net of all reductions | 1.89% | 1.89% | 1.90% | 1.88% | 1.86% |
| Net investment income (loss) | 1.65% | 1.22% | 1.15% | 1.55% | 1.82% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,580 | $2,003 | $2,465 | $3,465 | $3,336 |
| Portfolio turnover rateI | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.16 per share is comprised of distributions from net investment income of $.125 and distributions from net realized gain of $.039 per share.
C Total distributions of $.20 per share is comprised of distributions from net investment income of $.122 and distributions from net realized gain of $.074 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.39 | $8.93 | $9.39 | $8.62 | $8.24 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .06 | .06 | .09 | .11 |
| Net realized and unrealized gain (loss) | .60 | (1.48) | (.46) | .83 | .35 |
| Total from investment operations | .69 | (1.42) | (.40) | .92 | .46 |
| Distributions from net investment income | (.02) | (.08) | (.06) | (.08) | (.08) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.02) | (.12) | (.06) | (.15) | (.08) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $8.06 | $7.39 | $8.93 | $9.39 | $8.62 |
| Total ReturnC,D | 9.33% | (16.08)% | (4.24)% | 10.83% | 5.68% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.47% | 2.41% | 2.40% | 2.42% | 2.37% |
| Expenses net of fee waivers, if any | 2.40% | 2.40% | 2.40% | 2.40% | 2.37% |
| Expenses net of all reductions | 2.39% | 2.39% | 2.40% | 2.38% | 2.35% |
| Net investment income (loss) | 1.15% | .72% | .65% | 1.05% | 1.34% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $6,269 | $4,104 | $6,662 | $6,782 | $7,770 |
| Portfolio turnover rateG | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.50 | $9.08 | $9.52 | $8.75 | $8.37 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16 | .14 | .16 | .18 | .20 |
| Net realized and unrealized gain (loss) | .61 | (1.51) | (.47) | .84 | .35 |
| Total from investment operations | .77 | (1.37) | (.31) | 1.02 | .55 |
| Distributions from net investment income | (.13) | (.17) | (.13) | (.18) | (.17) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.13) | (.21) | (.13) | (.25) | (.17) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $8.14 | $7.50 | $9.08 | $9.52 | $8.75 |
| Total ReturnC | 10.54% | (15.33)% | (3.21)% | 11.90% | 6.81% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.46% | 1.39% | 1.37% | 1.40% | 1.37% |
| Expenses net of fee waivers, if any | 1.40% | 1.38% | 1.37% | 1.40% | 1.37% |
| Expenses net of all reductions | 1.39% | 1.38% | 1.37% | 1.38% | 1.34% |
| Net investment income (loss) | 2.15% | 1.74% | 1.68% | 2.05% | 2.34% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $76,193 | $67,521 | $96,784 | $110,265 | $111,441 |
| Portfolio turnover rateF | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.50 | $9.08 | $9.52 | $8.75 | $8.37 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .17 | .15 | .16 | .19 | .21 |
| Net realized and unrealized gain (loss) | .61 | (1.51) | (.46) | .84 | .35 |
| Total from investment operations | .78 | (1.36) | (.30) | 1.03 | .56 |
| Distributions from net investment income | (.14) | (.18) | (.14) | (.19) | (.18) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.14) | (.22) | (.14) | (.26) | (.18) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $8.14 | $7.50 | $9.08 | $9.52 | $8.75 |
| Total ReturnC | 10.69% | (15.23)% | (3.09)% | 12.05% | 6.93% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.31% | 1.25% | 1.26% | 1.30% | 1.28% |
| Expenses net of fee waivers, if any | 1.31% | 1.25% | 1.26% | 1.30% | 1.28% |
| Expenses net of all reductions | 1.30% | 1.24% | 1.26% | 1.28% | 1.25% |
| Net investment income (loss) | 2.24% | 1.88% | 1.79% | 2.15% | 2.43% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,807 | $3,478 | $5,596 | $10,231 | $8,586 |
| Portfolio turnover rateF | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Emerging Europe, Middle East, Africa (EMEA) 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 Europe, Middle East, Africa (EMEA) and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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), 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 | $20,876,797 |
| Gross unrealized depreciation | (5,915,293) |
| Net unrealized appreciation (depreciation) on securities | $14,961,504 |
| Tax Cost | $83,728,416 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $1,115,476 |
| Capital loss carryforward | $(23,384,568) |
| Net unrealized appreciation (depreciation) on securities and other investments | $14,961,843 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2018 | $(1,624,705) |
| No expiration | |
| Short-term | (4,750,173) |
| Long-term | (17,009,690) |
| Total no expiration | (21,759,863) |
| Total capital loss carryforward | $(23,384,568) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $1,323,710 | $ 2,596,341 |
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 $53,982,586 and $45,754,672, 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 .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 annual 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, except for the Class I. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $15,166 | $– |
| Class T | .25% | .25% | 10,642 | – |
| Class B | .75% | .25% | 915 | 686 |
| Class C | .75% | .25% | 49,671 | 6,003 |
| $76,394 | $6,689 |
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 by FDC |
|
| Class A | $2,731 |
| Class T | 1,104 |
| Class B(a) | – |
| Class C(a) | 157 |
| $3,992 |
(a) 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-Level Average Net Assets |
|
| Class A | $17,232 | .28 |
| Class T | 7,230 | .34 |
| Class B | 256 | .28 |
| Class C | 15,151 | .30 |
| Emerging Europe, Middle East, Africa (EMEA) | 199,119 | .29 |
| Class I | 5,643 | .16 |
| $244,631 |
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 $23 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $218 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $529. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.65% | $2,593 |
| Class T | 1.90% | 2,233 |
| Class B | 2.40% | 105 |
| Class C | 2.40% | 3,612 |
| Emerging Europe, Middle East, Africa (EMEA) | 1.40% | 43,649 |
| $52,192 |
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 $7,783 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $534.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $80,414 | $113,464 |
| Class T | 18,230 | 35,916 |
| Class B | 201 | 1,835 |
| Class C | 9,270 | 58,320 |
| Emerging Europe, Middle East, Africa (EMEA) | 1,152,813 | 1,776,301 |
| Class I | 62,782 | 105,734 |
| Total | $1,323,710 | $2,091,570 |
| From net realized gain | ||
| Class A | $– | $32,778 |
| Class T | – | 11,206 |
| Class B | – | 1,213 |
| Class C | – | 29,160 |
| Emerging Europe, Middle East, Africa (EMEA) | – | 407,505 |
| Class I | – | 22,909 |
| Total | $– | $504,771 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 455,903 | 200,433 | $3,437,125 | $1,636,757 |
| Reinvestment of distributions | 10,903 | 16,251 | 75,669 | 135,531 |
| Shares redeemed | (272,430) | (315,855) | (1,968,300) | (2,546,115) |
| Net increase (decrease) | 194,376 | (99,171) | $1,544,494 | $(773,827) |
| Class T | ||||
| Shares sold | 127,263 | 86,058 | $957,632 | $721,254 |
| Reinvestment of distributions | 2,627 | 5,631 | 18,230 | 46,793 |
| Shares redeemed | (80,720) | (96,309) | (600,724) | (767,911) |
| Net increase (decrease) | 49,170 | (4,620) | $375,138 | $136 |
| Class B | ||||
| Shares sold | 6,222 | 3,390 | $48,688 | $28,032 |
| Reinvestment of distributions | 29 | 349 | 201 | 2,936 |
| Shares redeemed | (30,363) | (12,164) | (224,475) | (100,803) |
| Net increase (decrease) | (24,112) | (8,425) | $(175,586) | $(69,835) |
| Class C | ||||
| Shares sold | 511,536 | 210,315 | $3,858,488 | $1,702,630 |
| Reinvestment of distributions | 776 | 8,117 | 5,381 | 67,210 |
| Shares redeemed | (290,654) | (408,507) | (2,107,856) | (3,365,409) |
| Net increase (decrease) | 221,658 | (190,075) | $1,756,013 | $(1,595,569) |
| Emerging Europe, Middle East, Africa (EMEA) | ||||
| Shares sold | 3,096,394 | 1,440,703 | $23,505,412 | $11,732,025 |
| Reinvestment of distributions | 155,366 | 247,446 | 1,078,225 | 2,063,699 |
| Shares redeemed | (2,896,341) | (3,348,545) | (21,342,473) | (27,229,428) |
| Net increase (decrease) | 355,419 | (1,660,396) | $3,241,164 | $(13,433,704) |
| Class I | ||||
| Shares sold | 627,690 | 131,915 | $5,110,628 | $1,069,757 |
| Reinvestment of distributions | 7,594 | 12,912 | 52,629 | 107,558 |
| Shares redeemed | (385,176) | (297,795) | (2,838,587) | (2,411,162) |
| Net increase (decrease) | 250,108 | (152,968) | $2,324,670 | $(1,233,847) |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 15, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.65% | |||
| Actual | $1,000.00 | $1,041.00 | $8.47 | |
| Hypothetical-C | $1,000.00 | $1,016.84 | $8.36 | |
| Class T | 1.90% | |||
| Actual | $1,000.00 | $1,038.50 | $9.74 | |
| Hypothetical-C | $1,000.00 | $1,015.58 | $9.63 | |
| Class C | 2.40% | |||
| Actual | $1,000.00 | $1,036.00 | $12.28 | |
| Hypothetical-C | $1,000.00 | $1,013.07 | $12.14 | |
| Emerging Europe, Middle East, Africa (EMEA) | 1.40% | |||
| Actual | $1,000.00 | $1,040.90 | $7.18 | |
| Hypothetical-C | $1,000.00 | $1,018.10 | $7.10 | |
| Class I | 1.26% | |||
| Actual | $1,000.00 | $1,042.30 | $6.47 | |
| Hypothetical-C | $1,000.00 | $1,018.80 | $6.39 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Class A, Class T, Class B, Class C, Emerging Europe, Middle East, Africa (EMEA) and Class I designate 100% of the dividend distributed 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 | |
| Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund | |||
| Class A | 12/07/15 | $0.1428 | $0.0358 |
| Class T | 12/07/15 | $0.1068 | $0.0358 |
| Class B | 12/07/15 | $0.0448 | $0.0358 |
| Class C | 12/07/15 | $0.0528 | $0.0358 |
| Emerging Europe, Middle East, Africa (EMEA) | 12/07/15 | $0.1638 | $0.0358 |
| Class I | 12/07/15 | $0.1738 | $0.0358 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods, as shown below. A peer group is not shown below because the fund does not generally utilize a peer group for performance comparison purposes.Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
AEME-ANN-1216
1.861989.108
|
Fidelity® Emerging Europe, Middle East, Africa (EMEA) Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Emerging Europe, Middle East, Africa (EMEA) Fund | 10.54% | 1.60% | (0.80)% |
A From May 8, 2008
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Emerging Europe, Middle East, Africa (EMEA) Fund, a class of the fund, on May 8, 2008, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EM (Emerging Markets) Europe, Middle East and Africa Index performed over the same period.
| Period Ending Values | ||
|
| $9,337 | Fidelity® Emerging Europe, Middle East, Africa (EMEA) Fund |
|
| $7,085 | MSCI EM (Emerging Markets) Europe, Middle East and Africa Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Adam Kutas: For the one-year period ending October 31, 2016, the fund’s share classes (excluding sales charges, if applicable) advanced solidly, outperforming the 2.88% result of the fund’s benchmark MSCI EM (Emerging Markets) Europe, Middle East and Africa Index. Volatility was high this period, driven by the bottoming-out of the commodities market and the subsequent rebound, which significantly buoyed emerging markets stocks. Choices in financials and materials added the most value, along with picks consumer staples and consumer discretionary. Our non-index stake in DRDGOLD was by far the largest relative individual contributor. In January, shares began rising steadily, benefitting from increasing gold prices. By period end, I trimmed our position to keep it in check and take profits. AngloGold Ashanti, a South African miner, also contributed. Like DRDGOLD, the stock rose steadily from January until August when it pulled back somewhat. Conversely, the fund’s largest individual detractor was an out-of-benchmark investment in equity-linked notes in select Saudi Arabian stocks (issued by HSBC Bank). Many of the Saudi Arabian stocks we owned through HSBC were those of companies dependent on consumers, who were pressured by the country’s recent tax hikes and reduced subsidies.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| South Africa | 43.5% | |
| Russia | 22.0% | |
| United Arab Emirates | 5.2% | |
| United Kingdom | 3.7% | |
| Romania | 3.1% | |
| Hungary | 2.1% | |
| Poland | 2.0% | |
| Netherlands | 1.9% | |
| Qatar | 1.8% | |
| Other* | 14.7% | |
* 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 April 30, 2016 | ||
| South Africa | 41.5% | |
| Russia | 23.7% | |
| Turkey | 4.1% | |
| United Arab Emirates | 3.8% | |
| Romania | 3.4% | |
| United Kingdom | 3.2% | |
| Hungary | 2.3% | |
| Poland | 2.2% | |
| Qatar | 2.0% | |
| Other* | 13.8% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 99.3 | 98.9 |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.7 | 1.1 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Naspers Ltd. Class N (South Africa, Media) | 8.3 | 6.0 |
| Sberbank of Russia (Russia, Banks) | 5.0 | 5.1 |
| Lukoil PJSC (Russia, Oil, Gas & Consumable Fuels) | 4.7 | 4.5 |
| Gazprom OAO (Russia, Oil, Gas & Consumable Fuels) | 4.0 | 5.7 |
| FirstRand Ltd. (South Africa, Diversified Financial Services) | 3.0 | 2.5 |
| Shoprite Holdings Ltd. (South Africa, Food & Staples Retailing) | 2.3 | 1.9 |
| Standard Bank Group Ltd. (South Africa, Banks) | 2.3 | 1.3 |
| NOVATEK OAO (Russia, Oil, Gas & Consumable Fuels) | 2.2 | 1.5 |
| OTP Bank PLC (Hungary, Banks) | 2.1 | 2.3 |
| Remgro Ltd. (South Africa, Diversified Financial Services) | 2.0 | 2.7 |
| 35.9 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 31.0 | 32.9 |
| Consumer Discretionary | 18.3 | 14.8 |
| Energy | 15.6 | 18.3 |
| Materials | 11.7 | 10.1 |
| Consumer Staples | 10.4 | 10.9 |
| Industrials | 5.9 | 7.2 |
| Real Estate | 2.6 | 0.0 |
| Telecommunication Services | 2.3 | 2.5 |
| Health Care | 1.5 | 2.2 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Market Sectors may include more than one industry category.
The Fund may invest up to 35% of its total assets in any industry that represents more than 20% of the emerging Europe, Middle East and Africa markets. As of October 31, 2016, the Fund did not have more than 25% of its total assets invested in any one industry.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.0% | |||
| Shares | Value | ||
| Austria - 0.6% | |||
| Buwog-Gemeinnuetzige Wohnung | 23,299 | $563,066 | |
| Bailiwick of Jersey - 0.7% | |||
| Glencore Xstrata PLC (a) | 137,200 | 413,724 | |
| Wizz Air Holdings PLC (a) | 13,888 | 256,854 | |
| TOTAL BAILIWICK OF JERSEY | 670,578 | ||
| Bermuda - 0.5% | |||
| Central European Media Enterprises Ltd.: | |||
| Class A (a)(b) | 50,000 | 122,500 | |
| Class A (Czech Republic) (a) | 131,600 | 320,455 | |
| TOTAL BERMUDA | 442,955 | ||
| Botswana - 0.3% | |||
| First National Bank of Botswana Ltd. | 1,042,331 | 301,817 | |
| British Virgin Islands - 0.5% | |||
| Lenta Ltd. GDR (a) | 65,900 | 478,434 | |
| Canada - 0.7% | |||
| Detour Gold Corp. (a) | 31,300 | 596,691 | |
| ShawCor Ltd. Class A | 3,700 | 92,548 | |
| TOTAL CANADA | 689,239 | ||
| Czech Republic - 0.5% | |||
| MONETA Money Bank A/S | 134,000 | 467,269 | |
| Estonia - 0.5% | |||
| Tallinna Kaubamaja AS | 57,700 | 500,387 | |
| Germany - 0.3% | |||
| UNIWHEELS AG | 5,305 | 274,834 | |
| Greece - 1.3% | |||
| Jumbo SA | 26,536 | 377,232 | |
| Motor Oil (HELLAS) Corinth Refineries SA | 37,500 | 449,117 | |
| Sarantis SA | 37,800 | 416,609 | |
| TOTAL GREECE | 1,242,958 | ||
| Hungary - 2.1% | |||
| OTP Bank PLC | 73,400 | 2,061,739 | |
| Israel - 0.6% | |||
| Elbit Systems Ltd. (Israel) | 5,700 | 564,607 | |
| Kenya - 1.4% | |||
| British American Tobacco Kenya Ltd. | 33,400 | 276,006 | |
| Kcb Group Ltd. | 1,335,600 | 358,043 | |
| Safaricom Ltd. | 4,039,244 | 788,775 | |
| TOTAL KENYA | 1,422,824 | ||
| Lithuania - 0.4% | |||
| Apranga AB (a) | 142,922 | 398,507 | |
| Netherlands - 1.9% | |||
| AmRest Holdings NV (a) | 8,200 | 520,540 | |
| Steinhoff International Holdings NV (South Africa) | 169,300 | 913,941 | |
| X5 Retail Group NV GDR (Reg. S) (a) | 15,100 | 450,584 | |
| TOTAL NETHERLANDS | 1,885,065 | ||
| Nigeria - 1.7% | |||
| Dangote Cement PLC | 738,994 | 410,227 | |
| Nigerian Breweries PLC | 1,446,285 | 670,406 | |
| Zenith Bank PLC | 13,157,876 | 613,547 | |
| TOTAL NIGERIA | 1,694,180 | ||
| Oman - 0.5% | |||
| BankMuscat SAOG (a) | 450,000 | 483,833 | |
| Pakistan - 1.6% | |||
| Engro Corp. Ltd. | 142,100 | 378,490 | |
| Indus Motor Co. Ltd. | 20,150 | 290,664 | |
| Millat Tractors Ltd. | 56,050 | 364,250 | |
| United Bank Ltd. | 259,400 | 498,701 | |
| TOTAL PAKISTAN | 1,532,105 | ||
| Poland - 2.0% | |||
| Globe Trade Centre SA (a) | 210,000 | 429,822 | |
| Kruk SA | 7,100 | 411,712 | |
| NG2 SA | 13,200 | 669,883 | |
| Orbis SA | 25,500 | 461,480 | |
| TOTAL POLAND | 1,972,897 | ||
| Qatar - 1.8% | |||
| Qatar National Bank SAQ | 41,521 | 1,824,322 | |
| Romania - 3.1% | |||
| Banca Transilvania SA | 2,056,052 | 1,159,616 | |
| BRD-Groupe Societe Generale | 557,318 | 1,490,852 | |
| Fondul Propietatea SA GDR | 43,000 | 436,450 | |
| TOTAL ROMANIA | 3,086,918 | ||
| Russia - 19.7% | |||
| Alrosa Co. Ltd. (a) | 740,000 | 1,034,112 | |
| Gazprom OAO (a) | 1,821,736 | 3,991,985 | |
| Lukoil PJSC (a) | 15,400 | 751,485 | |
| Lukoil PJSC sponsored ADR | 78,395 | 3,821,756 | |
| Magnit OJSC | 7,080 | 1,187,049 | |
| Moscow Exchange MICEX-RTS OAO (a) | 402,000 | 740,008 | |
| NOVATEK OAO (a) | 207,400 | 2,161,628 | |
| Novolipetsk Steel OJSC GDR (Reg. S) | 54,800 | 887,760 | |
| Sberbank of Russia (a) | 2,109,220 | 4,909,524 | |
| TOTAL RUSSIA | 19,485,307 | ||
| Slovenia - 0.1% | |||
| Petrol d.d., Ljubljana | 300 | 105,302 | |
| South Africa - 43.5% | |||
| African Rainbow Minerals Ltd. | 140,300 | 1,014,499 | |
| AngloGold Ashanti Ltd. (a) | 101,400 | 1,380,631 | |
| ArcelorMittal South Africa Ltd. (a) | 530,000 | 452,026 | |
| Aveng Ltd. (a) | 1,189,200 | 623,539 | |
| Barloworld Ltd. | 153,400 | 993,637 | |
| Cashbuild Ltd. | 16,000 | 467,241 | |
| City Lodge Hotels Ltd. | 45,300 | 489,762 | |
| Clicks Group Ltd. | 118,107 | 1,099,281 | |
| DRDGOLD Ltd. | 2,464,814 | 1,249,824 | |
| Exxaro Resources Ltd. | 91,300 | 671,694 | |
| FirstRand Ltd. | 838,400 | 3,004,467 | |
| Grindrod Ltd. | 610,300 | 502,860 | |
| Holdsport Ltd. | 124,700 | 545,549 | |
| Hulamin Ltd. (a) | 1,096,900 | 423,832 | |
| Imperial Holdings Ltd. | 93,000 | 1,174,730 | |
| KAP Industrial Holdings Ltd. | 1,253,800 | 720,642 | |
| Kumba Iron Ore Ltd. (a) | 55,000 | 557,516 | |
| Mr Price Group Ltd. | 104,300 | 1,189,061 | |
| MTN Group Ltd. | 89,550 | 773,474 | |
| Murray & Roberts Holdings Ltd. | 559,000 | 382,651 | |
| Nampak Ltd. | 960,000 | 1,338,500 | |
| Naspers Ltd. Class N | 49,000 | 8,212,486 | |
| Northam Platinum Ltd. (a) | 310,400 | 1,133,289 | |
| Pioneer Foods Ltd. | 112,400 | 1,356,844 | |
| Pretoria Portland Cement Co. Ltd. | 918,549 | 374,675 | |
| PSG Group Ltd. | 118,300 | 1,848,581 | |
| Remgro Ltd. | 117,600 | 1,953,640 | |
| RMB Holdings Ltd. | 226,500 | 999,817 | |
| Sasol Ltd. | 33,100 | 914,056 | |
| Shoprite Holdings Ltd. | 156,300 | 2,306,754 | |
| Spar Group Ltd. | 70,500 | 998,647 | |
| Spur Corp. Ltd. | 191,500 | 453,053 | |
| Standard Bank Group Ltd. | 210,643 | 2,234,882 | |
| Super Group Ltd. (a) | 161,000 | 475,224 | |
| Telkom SA Ltd. | 142,900 | 659,298 | |
| TOTAL SOUTH AFRICA | 42,976,662 | ||
| Turkey - 1.8% | |||
| Koc Holding A/S | 232,850 | 970,757 | |
| Turk Traktor ve Ziraat Makinalari A/S | 15,000 | 389,270 | |
| Turkiye Garanti Bankasi A/S | 145,000 | 394,102 | |
| TOTAL TURKEY | 1,754,129 | ||
| United Arab Emirates - 5.2% | |||
| Agthia Group PJSC | 274,787 | 448,882 | |
| Aldar Properties PJSC (a) | 1,299,101 | 933,753 | |
| Dubai Financial Market PJSC (a) | 940,000 | 294,314 | |
| Dubai Islamic Bank Pakistan Ltd. (a) | 653,740 | 932,656 | |
| Dubai Parks and Resorts PJSC (a) | 1,205,140 | 515,136 | |
| Emaar Malls Group PJSC (a) | 967,209 | 676,766 | |
| First Gulf Bank PJSC | 334,223 | 1,046,452 | |
| SHUAA Capital PSC (a) | 983,913 | 297,348 | |
| TOTAL UNITED ARAB EMIRATES | 5,145,307 | ||
| United Kingdom - 3.7% | |||
| Aldrees Petoleum & Transport ELS (HSBC Warrant Program) warrants 2/7/17 (a)(c) | 40,000 | 324,406 | |
| Bupa Arabia ELS (HSBC Warrant Program) warrants 10/19/18(a)(c) | 10,300 | 330,020 | |
| Georgia Healthcare Group PLC (a) | 107,500 | 465,793 | |
| Mediclinic International PLC | 35,300 | 389,684 | |
| NMC Health PLC | 32,100 | 574,033 | |
| Saudi Dairy & Foodstuff Co. ELS (HSBC Warrant Program) warrants 6/4/18 (a)(c) | 14,000 | 431,289 | |
| Savola Group ELS (HSBC Warrant Program) warrants 2/6/17 (a)(c) | 64,800 | 541,778 | |
| Tullow Oil PLC (a)(b) | 60,600 | 196,340 | |
| United International Transportation Co. ELS (HSBC Warrant Program) warrants 7/31/17 (a)(c) | 66,861 | 440,292 | |
| TOTAL UNITED KINGDOM | 3,693,635 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $80,203,352) | 95,718,876 | ||
| Nonconvertible Preferred Stocks - 2.3% | |||
| Russia - 2.3% | |||
| Surgutneftegas OJSC (a) | 3,196,200 | 1,449,224 | |
| Tatneft PAO (a) | 246,700 | 789,891 | |
| TOTAL RUSSIA | 2,239,115 | ||
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $2,428,530) | 2,239,115 | ||
| Money Market Funds - 0.7% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 536,251 | 536,412 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 195,478 | 195,517 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $731,912) | 731,929 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.0% | |||
| (Cost $83,363,794) | 98,689,920 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | 25,680 | ||
| NET ASSETS - 100% | $98,715,600 |
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,067,785 or 2.1% of net assets.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
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 | $4,578 |
| Fidelity Securities Lending Cash Central Fund | 529 |
| Total | $5,107 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $17,977,580 | $17,977,580 | $-- | $-- |
| Consumer Staples | 10,189,883 | 10,189,883 | -- | -- |
| Energy | 15,289,724 | 8,182,974 | 7,106,750 | -- |
| Financials | 30,831,477 | 23,854,168 | 6,977,309 | -- |
| Health Care | 1,429,510 | 1,429,510 | -- | -- |
| Industrials | 5,769,067 | 5,769,067 | -- | -- |
| Materials | 11,645,796 | 9,015,341 | 2,630,455 | -- |
| Real Estate | 2,603,407 | 2,603,407 | -- | -- |
| Telecommunication Services | 2,221,547 | 1,448,073 | 773,474 | -- |
| Money Market Funds | 731,929 | 731,929 | -- | -- |
| Total Investments in Securities: | $98,689,920 | $81,201,932 | $17,487,988 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $294,372 |
| Level 2 to Level 1 | $1,684,126 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $182,702) — See accompanying schedule: Unaffiliated issuers (cost $82,631,882) | $97,957,991 | |
| Fidelity Central Funds (cost $731,912) | 731,929 | |
| Total Investments (cost $83,363,794) | $98,689,920 | |
| Foreign currency held at value (cost $104,766) | 105,759 | |
| Receivable for investments sold | 12,701 | |
| Receivable for fund shares sold | 257,757 | |
| Dividends receivable | 100,257 | |
| Distributions receivable from Fidelity Central Funds | 489 | |
| Prepaid expenses | 242 | |
| Other receivables | 1,390 | |
| Total assets | 99,168,515 | |
| Liabilities | ||
| Payable for fund shares redeemed | $47,920 | |
| Accrued management fee | 70,931 | |
| Distribution and service plan fees payable | 7,784 | |
| Other affiliated payables | 26,790 | |
| Audit fees | 46,689 | |
| Custody fees | 31,623 | |
| Other payables and accrued expenses | 25,678 | |
| Collateral on securities loaned, at value | 195,500 | |
| Total liabilities | 452,915 | |
| Net Assets | $98,715,600 | |
| Net Assets consist of: | ||
| Paid in capital | $106,043,529 | |
| Undistributed net investment income | 1,115,481 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (23,749,190) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 15,305,780 | |
| Net Assets | $98,715,600 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($7,867,007 ÷ 967,625 shares) | $8.13 | |
| Maximum offering price per share (100/94.25 of $8.13) | $8.63 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($2,579,520 ÷ 318,298 shares) | $8.10 | |
| Maximum offering price per share (100/96.50 of $8.10) | $8.39 | |
| Class C: | ||
| Net Asset Value and offering price per share ($6,269,091 ÷ 777,407 shares)(a) | $8.06 | |
| Emerging Europe, Middle East, Africa (EMEA): | ||
| Net Asset Value, offering price and redemption price per share ($76,192,646 ÷ 9,355,033 shares) | $8.14 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($5,807,336 ÷ 713,661 shares) | $8.14 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $3,402,759 | |
| Income from Fidelity Central Funds | 5,107 | |
| Income before foreign taxes withheld | 3,407,866 | |
| Less foreign taxes withheld | (402,754) | |
| Total income | 3,005,112 | |
| Expenses | ||
| Management fee | $675,936 | |
| Transfer agent fees | 244,631 | |
| Distribution and service plan fees | 76,394 | |
| Accounting and security lending fees | 43,862 | |
| Custodian fees and expenses | 121,777 | |
| Independent trustees' fees and expenses | 360 | |
| Registration fees | 80,464 | |
| Audit | 69,765 | |
| Legal | 250 | |
| Miscellaneous | 779 | |
| Total expenses before reductions | 1,314,218 | |
| Expense reductions | (60,509) | 1,253,709 |
| Net investment income (loss) | 1,751,403 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of foreign taxes of $6,694) | (6,330,602) | |
| Fidelity Central Funds | 162 | |
| Foreign currency transactions | (4,960) | |
| Total net realized gain (loss) | (6,335,400) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $7,733) | 12,445,211 | |
| Assets and liabilities in foreign currencies | 223 | |
| Total change in net unrealized appreciation (depreciation) | 12,445,434 | |
| Net gain (loss) | 6,110,034 | |
| Net increase (decrease) in net assets resulting from operations | $7,861,437 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,751,403 | $1,633,113 |
| Net realized gain (loss) | (6,335,400) | (10,780,681) |
| Change in net unrealized appreciation (depreciation) | 12,445,434 | (7,778,956) |
| Net increase (decrease) in net assets resulting from operations | 7,861,437 | (16,926,524) |
| Distributions to shareholders from net investment income | (1,323,710) | (2,091,570) |
| Distributions to shareholders from net realized gain | – | (504,771) |
| Total distributions | (1,323,710) | (2,596,341) |
| Share transactions - net increase (decrease) | 9,065,893 | (17,106,646) |
| Redemption fees | 36,545 | 15,219 |
| Total increase (decrease) in net assets | 15,640,165 | (36,614,292) |
| Net Assets | ||
| Beginning of period | 83,075,435 | 119,689,727 |
| End of period | $98,715,600 | $83,075,435 |
| Other Information | ||
| Undistributed net investment income end of period | $1,115,481 | $1,236,658 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.49 | $9.04 | $9.49 | $8.71 | $8.34 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .14 | .12 | .13 | .16 | .18 |
| Net realized and unrealized gain (loss) | .61 | (1.50) | (.46) | .85 | .34 |
| Total from investment operations | .75 | (1.38) | (.33) | 1.01 | .52 |
| Distributions from net investment income | (.11) | (.14) | (.12) | (.15) | (.15) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.11) | (.17)B | (.12) | (.23)C | (.15) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $8.13 | $7.49 | $9.04 | $9.49 | $8.71 |
| Total ReturnE,F | 10.22% | (15.42)% | (3.48)% | 11.75% | 6.38% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.69% | 1.61% | 1.60% | 1.64% | 1.62% |
| Expenses net of fee waivers, if any | 1.65% | 1.61% | 1.60% | 1.63% | 1.62% |
| Expenses net of all reductions | 1.64% | 1.60% | 1.60% | 1.62% | 1.60% |
| Net investment income (loss) | 1.90% | 1.51% | 1.45% | 1.82% | 2.09% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $7,867 | $5,788 | $7,889 | $10,883 | $8,934 |
| Portfolio turnover rateI | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.17 per share is comprised of distributions from net investment income of $.135 and distributions from net realized gain of $.039 per share.
C Total distributions of $.23 per share is comprised of distributions from net investment income of $.151 and distributions from net realized gain of $.074 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.44 | $9.01 | $9.46 | $8.68 | $8.31 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .12 | .10 | .11 | .14 | .15 |
| Net realized and unrealized gain (loss) | .61 | (1.51) | (.46) | .84 | .35 |
| Total from investment operations | .73 | (1.41) | (.35) | .98 | .50 |
| Distributions from net investment income | (.07) | (.13) | (.10) | (.12) | (.13) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.07) | (.16)B | (.10) | (.20)C | (.13) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $8.10 | $7.44 | $9.01 | $9.46 | $8.68 |
| Total ReturnE,F | 9.98% | (15.80)% | (3.67)% | 11.42% | 6.14% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 2.00% | 1.92% | 1.92% | 1.93% | 1.89% |
| Expenses net of fee waivers, if any | 1.90% | 1.90% | 1.90% | 1.90% | 1.89% |
| Expenses net of all reductions | 1.89% | 1.89% | 1.90% | 1.88% | 1.86% |
| Net investment income (loss) | 1.65% | 1.22% | 1.15% | 1.55% | 1.82% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,580 | $2,003 | $2,465 | $3,465 | $3,336 |
| Portfolio turnover rateI | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.16 per share is comprised of distributions from net investment income of $.125 and distributions from net realized gain of $.039 per share.
C Total distributions of $.20 per share is comprised of distributions from net investment income of $.122 and distributions from net realized gain of $.074 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.39 | $8.93 | $9.39 | $8.62 | $8.24 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .06 | .06 | .09 | .11 |
| Net realized and unrealized gain (loss) | .60 | (1.48) | (.46) | .83 | .35 |
| Total from investment operations | .69 | (1.42) | (.40) | .92 | .46 |
| Distributions from net investment income | (.02) | (.08) | (.06) | (.08) | (.08) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.02) | (.12) | (.06) | (.15) | (.08) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $8.06 | $7.39 | $8.93 | $9.39 | $8.62 |
| Total ReturnC,D | 9.33% | (16.08)% | (4.24)% | 10.83% | 5.68% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.47% | 2.41% | 2.40% | 2.42% | 2.37% |
| Expenses net of fee waivers, if any | 2.40% | 2.40% | 2.40% | 2.40% | 2.37% |
| Expenses net of all reductions | 2.39% | 2.39% | 2.40% | 2.38% | 2.35% |
| Net investment income (loss) | 1.15% | .72% | .65% | 1.05% | 1.34% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $6,269 | $4,104 | $6,662 | $6,782 | $7,770 |
| Portfolio turnover rateG | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.50 | $9.08 | $9.52 | $8.75 | $8.37 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16 | .14 | .16 | .18 | .20 |
| Net realized and unrealized gain (loss) | .61 | (1.51) | (.47) | .84 | .35 |
| Total from investment operations | .77 | (1.37) | (.31) | 1.02 | .55 |
| Distributions from net investment income | (.13) | (.17) | (.13) | (.18) | (.17) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.13) | (.21) | (.13) | (.25) | (.17) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $8.14 | $7.50 | $9.08 | $9.52 | $8.75 |
| Total ReturnC | 10.54% | (15.33)% | (3.21)% | 11.90% | 6.81% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.46% | 1.39% | 1.37% | 1.40% | 1.37% |
| Expenses net of fee waivers, if any | 1.40% | 1.38% | 1.37% | 1.40% | 1.37% |
| Expenses net of all reductions | 1.39% | 1.38% | 1.37% | 1.38% | 1.34% |
| Net investment income (loss) | 2.15% | 1.74% | 1.68% | 2.05% | 2.34% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $76,193 | $67,521 | $96,784 | $110,265 | $111,441 |
| Portfolio turnover rateF | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $7.50 | $9.08 | $9.52 | $8.75 | $8.37 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .17 | .15 | .16 | .19 | .21 |
| Net realized and unrealized gain (loss) | .61 | (1.51) | (.46) | .84 | .35 |
| Total from investment operations | .78 | (1.36) | (.30) | 1.03 | .56 |
| Distributions from net investment income | (.14) | (.18) | (.14) | (.19) | (.18) |
| Distributions from net realized gain | – | (.04) | – | (.07) | – |
| Total distributions | (.14) | (.22) | (.14) | (.26) | (.18) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $8.14 | $7.50 | $9.08 | $9.52 | $8.75 |
| Total ReturnC | 10.69% | (15.23)% | (3.09)% | 12.05% | 6.93% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.31% | 1.25% | 1.26% | 1.30% | 1.28% |
| Expenses net of fee waivers, if any | 1.31% | 1.25% | 1.26% | 1.30% | 1.28% |
| Expenses net of all reductions | 1.30% | 1.24% | 1.26% | 1.28% | 1.25% |
| Net investment income (loss) | 2.24% | 1.88% | 1.79% | 2.15% | 2.43% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,807 | $3,478 | $5,596 | $10,231 | $8,586 |
| Portfolio turnover rateF | 54% | 50% | 38% | 64% | 30% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Emerging Europe, Middle East, Africa (EMEA) 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 Europe, Middle East, Africa (EMEA) and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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), 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 | $20,876,797 |
| Gross unrealized depreciation | (5,915,293) |
| Net unrealized appreciation (depreciation) on securities | $14,961,504 |
| Tax Cost | $83,728,416 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $1,115,476 |
| Capital loss carryforward | $(23,384,568) |
| Net unrealized appreciation (depreciation) on securities and other investments | $14,961,843 |
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 fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| 2018 | $(1,624,705) |
| No expiration | |
| Short-term | (4,750,173) |
| Long-term | (17,009,690) |
| Total no expiration | (21,759,863) |
| Total capital loss carryforward | $(23,384,568) |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $1,323,710 | $ 2,596,341 |
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 $53,982,586 and $45,754,672, 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 .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 annual 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, except for the Class I. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $15,166 | $– |
| Class T | .25% | .25% | 10,642 | – |
| Class B | .75% | .25% | 915 | 686 |
| Class C | .75% | .25% | 49,671 | 6,003 |
| $76,394 | $6,689 |
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 by FDC |
|
| Class A | $2,731 |
| Class T | 1,104 |
| Class B(a) | – |
| Class C(a) | 157 |
| $3,992 |
(a) 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-Level Average Net Assets |
|
| Class A | $17,232 | .28 |
| Class T | 7,230 | .34 |
| Class B | 256 | .28 |
| Class C | 15,151 | .30 |
| Emerging Europe, Middle East, Africa (EMEA) | 199,119 | .29 |
| Class I | 5,643 | .16 |
| $244,631 |
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 $23 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $218 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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 $529. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Class A | 1.65% | $2,593 |
| Class T | 1.90% | 2,233 |
| Class B | 2.40% | 105 |
| Class C | 2.40% | 3,612 |
| Emerging Europe, Middle East, Africa (EMEA) | 1.40% | 43,649 |
| $52,192 |
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 $7,783 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $534.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $80,414 | $113,464 |
| Class T | 18,230 | 35,916 |
| Class B | 201 | 1,835 |
| Class C | 9,270 | 58,320 |
| Emerging Europe, Middle East, Africa (EMEA) | 1,152,813 | 1,776,301 |
| Class I | 62,782 | 105,734 |
| Total | $1,323,710 | $2,091,570 |
| From net realized gain | ||
| Class A | $– | $32,778 |
| Class T | – | 11,206 |
| Class B | – | 1,213 |
| Class C | – | 29,160 |
| Emerging Europe, Middle East, Africa (EMEA) | – | 407,505 |
| Class I | – | 22,909 |
| Total | $– | $504,771 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 455,903 | 200,433 | $3,437,125 | $1,636,757 |
| Reinvestment of distributions | 10,903 | 16,251 | 75,669 | 135,531 |
| Shares redeemed | (272,430) | (315,855) | (1,968,300) | (2,546,115) |
| Net increase (decrease) | 194,376 | (99,171) | $1,544,494 | $(773,827) |
| Class T | ||||
| Shares sold | 127,263 | 86,058 | $957,632 | $721,254 |
| Reinvestment of distributions | 2,627 | 5,631 | 18,230 | 46,793 |
| Shares redeemed | (80,720) | (96,309) | (600,724) | (767,911) |
| Net increase (decrease) | 49,170 | (4,620) | $375,138 | $136 |
| Class B | ||||
| Shares sold | 6,222 | 3,390 | $48,688 | $28,032 |
| Reinvestment of distributions | 29 | 349 | 201 | 2,936 |
| Shares redeemed | (30,363) | (12,164) | (224,475) | (100,803) |
| Net increase (decrease) | (24,112) | (8,425) | $(175,586) | $(69,835) |
| Class C | ||||
| Shares sold | 511,536 | 210,315 | $3,858,488 | $1,702,630 |
| Reinvestment of distributions | 776 | 8,117 | 5,381 | 67,210 |
| Shares redeemed | (290,654) | (408,507) | (2,107,856) | (3,365,409) |
| Net increase (decrease) | 221,658 | (190,075) | $1,756,013 | $(1,595,569) |
| Emerging Europe, Middle East, Africa (EMEA) | ||||
| Shares sold | 3,096,394 | 1,440,703 | $23,505,412 | $11,732,025 |
| Reinvestment of distributions | 155,366 | 247,446 | 1,078,225 | 2,063,699 |
| Shares redeemed | (2,896,341) | (3,348,545) | (21,342,473) | (27,229,428) |
| Net increase (decrease) | 355,419 | (1,660,396) | $3,241,164 | $(13,433,704) |
| Class I | ||||
| Shares sold | 627,690 | 131,915 | $5,110,628 | $1,069,757 |
| Reinvestment of distributions | 7,594 | 12,912 | 52,629 | 107,558 |
| Shares redeemed | (385,176) | (297,795) | (2,838,587) | (2,411,162) |
| Net increase (decrease) | 250,108 | (152,968) | $2,324,670 | $(1,233,847) |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 15, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.65% | |||
| Actual | $1,000.00 | $1,041.00 | $8.47 | |
| Hypothetical-C | $1,000.00 | $1,016.84 | $8.36 | |
| Class T | 1.90% | |||
| Actual | $1,000.00 | $1,038.50 | $9.74 | |
| Hypothetical-C | $1,000.00 | $1,015.58 | $9.63 | |
| Class C | 2.40% | |||
| Actual | $1,000.00 | $1,036.00 | $12.28 | |
| Hypothetical-C | $1,000.00 | $1,013.07 | $12.14 | |
| Emerging Europe, Middle East, Africa (EMEA) | 1.40% | |||
| Actual | $1,000.00 | $1,040.90 | $7.18 | |
| Hypothetical-C | $1,000.00 | $1,018.10 | $7.10 | |
| Class I | 1.26% | |||
| Actual | $1,000.00 | $1,042.30 | $6.47 | |
| Hypothetical-C | $1,000.00 | $1,018.80 | $6.39 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Class A, Class T, Class B, Class C, Emerging Europe, Middle East, Africa (EMEA) and Class I designate 100% of the dividend distributed 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 | |
| Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund | |||
| Class A | 12/07/15 | $0.1428 | $0.0358 |
| Class T | 12/07/15 | $0.1068 | $0.0358 |
| Class B | 12/07/15 | $0.0448 | $0.0358 |
| Class C | 12/07/15 | $0.0528 | $0.0358 |
| Emerging Europe, Middle East, Africa (EMEA) | 12/07/15 | $0.1638 | $0.0358 |
| Class I | 12/07/15 | $ 0.1738 | $0.0358 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index for the most recent one-, three-, and five-year periods, as shown below. A peer group is not shown below because the fund does not generally utilize a peer group for performance comparison purposes.Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
EME-ANN-1216
1.861972.108
|
Fidelity® Series Emerging Markets Fund Fidelity® Series International Growth Fund Fidelity® Series International Value Fund Fidelity® Series International Small Cap Fund Annual Report October 31, 2016 |
|
|
Contents
|
Fidelity® Series Emerging Markets Fund | |
|
Fidelity® Series International Growth Fund | |
|
Fidelity® Series International Value Fund | |
|
Fidelity® Series International Small Cap Fund | |
|
Board Approval of Investment Advisory Contracts and Management Fees |
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, or for Class F, 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. © 2016 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.institutional.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.
Fidelity® Series Emerging Markets Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Series Emerging Markets Fund | 11.02% | 2.62% | 9.94% |
| Class F | 11.23% | 2.81% | 10.14% |
A From December 9, 2008
The initial offering of Class F shares took place on June 26, 2009. Returns prior to June 26, 2009 are those of Fidelity® Series Emerging Markets Fund, the original class of the fund.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series Emerging Markets Fund, a class of the fund, on December 9, 2008, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI Emerging Markets Index performed over the same period.
| Period Ending Values | ||
|
| $21,137 | Fidelity® Series Emerging Markets Fund |
|
| $20,918 | MSCI Emerging Markets Index |
Fidelity® Series Emerging Markets Fund
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Co-Portfolio Manager Sam Polyak: For the year, the fund's share classes returned about 11%, outperforming the 9.67% return of the benchmark MSCI Emerging Markets Index. Versus the benchmark, successful security selection drove the fund’s outperformance. Choices within the consumer discretionary sector added the most value. Picks within financials, industrials, energy and materials also lifted results. Among individual names, our non-index stake in Smiles was the biggest relative contributor. Smiles manages the frequent-flyer program of Brazilian air carrier GOL Airlines, and its stock rallied this year along with Brazilian market. Brazilian stocks benefited from prospects for the impeachment of the country’s president, which materialized in August. The fund’s financials subportfolio also benefited from its exposure to Brazil, as bank stocks such as Itau Unibanco Holding and Banco Estado Rio Grande posted strong results. Turning to detractors, security selection in health care hurt most from a sector standpoint. However, a lighter-than-benchmark stake in Brazilian bank Banco Bradesco was the fund’s biggest individual detractor. We underweighted Banco Bradesco in favor of other Latin American banks, but, in aggregate, didn't have enough exposure to this strong-performing group.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Series Emerging Markets Fund
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Korea (South) | 12.5% | |
| Cayman Islands | 10.9% | |
| India | 9.1% | |
| Brazil | 9.1% | |
| Taiwan | 8.0% | |
| South Africa | 7.1% | |
| China | 6.7% | |
| Hong Kong | 5.5% | |
| Russia | 5.4% | |
| Other* | 25.7% | |
* 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 April 30, 2016 | ||
| Korea (South) | 13.1% | |
| Cayman Islands | 10.2% | |
| India | 8.5% | |
| Brazil | 8.1% | |
| China | 8.1% | |
| Taiwan | 6.6% | |
| South Africa | 6.0% | |
| Hong Kong | 5.6% | |
| Mexico | 5.5% | |
| Other* | 28.3% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks and Equity Futures | 98.7 | 97.2 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.3 | 2.8 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 4.2 | 3.2 |
| Tencent Holdings Ltd. (Cayman Islands, Internet Software & Services) | 3.5 | 2.2 |
| Naspers Ltd. Class N (South Africa, Media) | 3.5 | 2.8 |
| Samsung Electronics Co. Ltd. (Korea (South), Technology Hardware, Storage & Peripherals) | 3.3 | 1.5 |
| Alibaba Group Holding Ltd. sponsored ADR (Cayman Islands, Internet Software & Services) | 2.4 | 2.0 |
| China Mobile Ltd. (Hong Kong, Wireless Telecommunication Services) | 1.8 | 1.8 |
| Itau Unibanco Holding SA sponsered ADR (Brazil, Banks) | 1.6 | 1.3 |
| Industrial & Commercial Bank of China Ltd. (H Shares) (China, Banks) | 1.4 | 1.8 |
| Grupo Financiero Banorte S.A.B. de CV Series O (Mexico, Banks) | 1.3 | 1.4 |
| Ambev SA sponsored ADR (Brazil, Beverages) | 1.1 | 1.1 |
| 24.1 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 22.9 | 25.6 |
| Information Technology | 22.1 | 19.2 |
| Consumer Discretionary | 12.5 | 10.9 |
| Energy | 8.0 | 7.7 |
| Consumer Staples | 7.8 | 8.0 |
| Materials | 6.5 | 7.0 |
| Industrials | 5.6 | 6.7 |
| Telecommunication Services | 5.1 | 5.5 |
| Utilities | 3.0 | 2.7 |
| Real Estate | 2.5 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity® Series Emerging Markets Fund
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 91.1% | |||
| Shares | Value | ||
| Argentina - 0.4% | |||
| Grupo Superveille SA sponsored ADR (a) | 633,652 | $9,618,837 | |
| Telecom Argentina SA Class B sponsored ADR (a) | 1,326,073 | 24,956,694 | |
| YPF SA Class D sponsored ADR | 1,779,100 | 31,596,816 | |
| TOTAL ARGENTINA | 66,172,347 | ||
| Australia - 0.0% | |||
| Frontier Digital Ventures Ltd. (b) | 15,575,924 | 6,042,789 | |
| Austria - 0.4% | |||
| Erste Group Bank AG | 2,058,040 | 64,636,096 | |
| Bermuda - 1.3% | |||
| AGTech Holdings Ltd. (c) | 74,748,000 | 15,613,562 | |
| Credicorp Ltd. (United States) | 299,240 | 44,491,003 | |
| GP Investments Ltd. Class A (depositary receipt) (b)(c) | 7,978,637 | 17,347,037 | |
| PAX Global Technology Ltd. | 37,938,000 | 23,724,855 | |
| Shangri-La Asia Ltd. | 74,510,000 | 81,950,384 | |
| VimpelCom Ltd. sponsored ADR | 7,306,720 | 24,404,445 | |
| TOTAL BERMUDA | 207,531,286 | ||
| Brazil - 3.2% | |||
| B2W Companhia Global do Varejo (c) | 9,406,294 | 46,206,356 | |
| BB Seguridade Participacoes SA | 5,742,200 | 57,817,766 | |
| BR Malls Participacoes SA | 3,376,600 | 13,519,094 | |
| Cielo SA | 3,909,725 | 39,685,179 | |
| Companhia de Saneamento de Minas Gerais | 4,079,070 | 42,579,766 | |
| Cosan SA Industria e Comercio | 2,691,800 | 36,194,253 | |
| Direcional Engenharia SA (b) | 13,592,100 | 23,505,135 | |
| FPC Par Corretora de Seguros (b) | 10,796,500 | 51,039,845 | |
| Minerva SA (b)(c) | 12,847,500 | 40,691,800 | |
| Smiles SA (b) | 7,533,600 | 137,502,361 | |
| TOTAL BRAZIL | 488,741,555 | ||
| British Virgin Islands - 0.2% | |||
| Mail.Ru Group Ltd. GDR (Reg. S) (c) | 1,939,501 | 31,749,631 | |
| Canada - 0.5% | |||
| Pan American Silver Corp. | 3,200,800 | 51,308,824 | |
| Torex Gold Resources, Inc. (c) | 1,079,590 | 20,081,839 | |
| TOTAL CANADA | 71,390,663 | ||
| Cayman Islands - 10.7% | |||
| 51job, Inc. sponsored ADR (a)(c) | 900,100 | 30,603,400 | |
| 58.com, Inc. ADR (a)(c) | 3,521,522 | 147,375,696 | |
| Alibaba Group Holding Ltd. sponsored ADR (c) | 3,627,606 | 368,891,254 | |
| Bitauto Holdings Ltd. ADR (a)(c) | 2,306,460 | 58,883,924 | |
| BizLink Holding, Inc. | 2,755,277 | 13,982,407 | |
| China State Construction International Holdings Ltd. | 31,906,000 | 46,652,274 | |
| CK Hutchison Holdings Ltd. | 2,784,270 | 34,446,391 | |
| Ctrip.com International Ltd. ADR (c) | 407,900 | 18,008,785 | |
| Fang Holdings Ltd. ADR (a)(c) | 4,852,295 | 16,158,142 | |
| Haitian International Holdings Ltd. | 15,980,000 | 32,967,359 | |
| Himax Technologies, Inc. sponsored ADR (a) | 2,271,100 | 17,828,135 | |
| JD.com, Inc. sponsored ADR (c) | 5,230,300 | 135,726,285 | |
| Sino Biopharmaceutical Ltd. | 73,576,000 | 51,513,778 | |
| Sunny Optical Technology Group Co. Ltd. | 1,102,000 | 5,385,279 | |
| Tencent Holdings Ltd. | 20,225,099 | 536,012,385 | |
| Uni-President China Holdings Ltd. | 110,383,000 | 74,722,070 | |
| Vipshop Holdings Ltd. ADR (c) | 4,835,300 | 66,098,551 | |
| TOTAL CAYMAN ISLANDS | 1,655,256,115 | ||
| Chile - 1.8% | |||
| Compania Cervecerias Unidas SA sponsored ADR (a) | 2,722,400 | 58,531,600 | |
| CorpBanca SA | 4,311,584,171 | 39,042,008 | |
| Enersis SA | 253,001,673 | 42,798,268 | |
| Inversiones La Construccion SA | 2,686,616 | 32,882,482 | |
| Sociedad Quimica y Minera de Chile SA (PN-B) sponsored ADR | 1,492,200 | 43,661,772 | |
| Vina Concha y Toro SA | 34,096,719 | 59,453,420 | |
| TOTAL CHILE | 276,369,550 | ||
| China - 6.7% | |||
| Anhui Conch Cement Co. Ltd. (H Shares) | 15,521,500 | 43,028,831 | |
| BBMG Corp. (H Shares) | 156,886,500 | 57,450,169 | |
| China Life Insurance Co. Ltd. (H Shares) | 36,870,900 | 91,282,524 | |
| China Longyuan Power Grid Corp. Ltd. (H Shares) | 46,844,410 | 35,817,879 | |
| China Pacific Insurance (Group) Co. Ltd. (H Shares) | 27,954,894 | 101,106,276 | |
| China Petroleum & Chemical Corp. (H Shares) | 63,186,000 | 45,696,184 | |
| China Shenhua Energy Co. Ltd. (H Shares) | 24,125,500 | 50,207,344 | |
| China Suntien Green Energy Corp. Ltd. (H Shares) | 27,059,750 | 3,628,645 | |
| China Telecom Corp. Ltd. (H Shares) | 88,048,882 | 45,525,594 | |
| Industrial & Commercial Bank of China Ltd. (H Shares) | 353,319,400 | 212,076,335 | |
| Inner Mongoli Yili Industries Co. Ltd. (A Shares) | 13,671,079 | 36,297,221 | |
| Kweichow Moutai Co. Ltd. (A Shares) | 1,429,129 | 67,060,947 | |
| Maanshan Iron & Steel Ltd. (H Shares) (a)(c) | 72,204,000 | 16,478,661 | |
| PICC Property & Casualty Co. Ltd. (H Shares) | 34,964,500 | 56,624,497 | |
| Qingdao Haier Co. Ltd. | 53,518,837 | 78,827,296 | |
| Shanghai International Airport Co. Ltd. (A Shares) | 8,259,398 | 33,045,881 | |
| Tsingtao Brewery Co. Ltd. (H Shares) | 6,900,000 | 27,580,249 | |
| Zhengzhou Yutong Bus Co. Ltd. | 11,884,554 | 37,798,066 | |
| TOTAL CHINA | 1,039,532,599 | ||
| Colombia - 0.3% | |||
| Bancolombia SA sponsored ADR | 1,160,311 | 44,416,705 | |
| Czech Republic - 0.3% | |||
| MONETA Money Bank A/S | 11,024,800 | 38,444,363 | |
| Egypt - 0.1% | |||
| Global Telecom Holding GDR (c) | 6,624,856 | 13,580,955 | |
| Qalaa Holdings SAE (c) | 42,580,600 | 3,404,549 | |
| TOTAL EGYPT | 16,985,504 | ||
| Greece - 0.4% | |||
| Titan Cement Co. SA (Reg.) | 2,474,800 | 57,512,787 | |
| Hong Kong - 5.5% | |||
| AIA Group Ltd. | 10,845,120 | 68,450,158 | |
| China Mobile Ltd. | 5,507,295 | 63,093,744 | |
| China Mobile Ltd. sponsored ADR | 3,708,070 | 212,954,460 | |
| China Resources Beer Holdings Co. Ltd. | 50,634,666 | 107,725,692 | |
| China Resources Power Holdings Co. Ltd. | 20,713,397 | 35,200,930 | |
| CNOOC Ltd. | 132,184,000 | 166,323,728 | |
| Far East Horizon Ltd. | 121,017,750 | 110,476,455 | |
| Sinotruk Hong Kong Ltd. | 42,356,000 | 23,429,317 | |
| Techtronic Industries Co. Ltd. | 17,159,000 | 64,604,419 | |
| TOTAL HONG KONG | 852,258,903 | ||
| India - 9.1% | |||
| Adani Ports & Special Economic Zone | 15,288,386 | 70,362,084 | |
| Axis Bank Ltd. | 6,364,422 | 46,455,531 | |
| Bharti Infratel Ltd. | 6,722,948 | 34,836,538 | |
| Coal India Ltd. | 13,702,048 | 66,717,565 | |
| Dalmia Bharat Ltd. | 28,836 | 889,369 | |
| Edelweiss Financial Services Ltd. (c) | 17,215,609 | 31,486,247 | |
| Eicher Motors Ltd. | 123,870 | 44,604,412 | |
| Grasim Industries Ltd. | 1,157,423 | 16,786,011 | |
| Housing Development Finance Corp. Ltd. | 3,811,126 | 79,512,904 | |
| ICICI Bank Ltd. (c) | 7,522,446 | 31,304,543 | |
| ICICI Bank Ltd. sponsored ADR | 2,433,600 | 20,174,544 | |
| ITC Ltd. | 23,667,964 | 86,255,052 | |
| JK Cement Ltd. | 3,180,810 | 45,078,457 | |
| Larsen & Toubro Ltd. | 2,663,943 | 59,133,105 | |
| LIC Housing Finance Ltd. | 5,456,295 | 47,667,108 | |
| Lupin Ltd. | 4,182,662 | 93,324,683 | |
| Petronet LNG Ltd. | 7,752,511 | 45,186,357 | |
| Phoenix Mills Ltd. | 6,619,816 | 37,418,256 | |
| Power Grid Corp. of India Ltd. | 38,796,765 | 102,305,748 | |
| Reliance Industries Ltd. | 7,200,936 | 113,883,160 | |
| SREI Infrastructure Finance Ltd. (b)(c) | 41,882,982 | 45,678,231 | |
| State Bank of India | 20,668,933 | 79,942,264 | |
| Sun Pharmaceutical Industries Ltd. | 9,194,697 | 102,470,454 | |
| Tata Consultancy Services Ltd. | 3,034,412 | 109,116,183 | |
| TOTAL INDIA | 1,410,588,806 | ||
| Indonesia - 1.6% | |||
| PT Astra International Tbk | 145,034,900 | 91,424,897 | |
| PT Bank Mandiri (Persero) Tbk | 45,457,900 | 40,041,533 | |
| PT Bank Rakyat Indonesia Tbk | 72,143,200 | 67,454,555 | |
| PT Kalbe Farma Tbk | 164,657,800 | 21,957,739 | |
| PT Link Net Tbk | 52,028,841 | 19,937,477 | |
| TOTAL INDONESIA | 240,816,201 | ||
| Israel - 0.5% | |||
| Bezeq The Israel Telecommunication Corp. Ltd. | 43,978,337 | 79,902,252 | |
| Japan - 1.8% | |||
| Alps Electric Co. Ltd. | 857,500 | 20,605,512 | |
| DeNA Co. Ltd. | 410,800 | 13,240,240 | |
| Nexon Co. Ltd. | 1,219,200 | 20,810,222 | |
| Nissha Printing Co. Ltd. (a) | 745,800 | 18,084,957 | |
| Rakuten, Inc. | 2,571,300 | 29,729,200 | |
| Sony Corp. | 878,700 | 27,695,084 | |
| Sumco Corp. | 3,256,300 | 34,218,009 | |
| Suzuki Motor Corp. | 3,131,900 | 111,394,937 | |
| TOTAL JAPAN | 275,778,161 | ||
| Korea (South) - 11.3% | |||
| AMOREPACIFIC Group, Inc. | 352,298 | 45,586,777 | |
| Daou Technology, Inc. | 2,478,272 | 44,852,464 | |
| Duk San Neolux Co. Ltd. (c) | 319,937 | 8,251,891 | |
| EO Technics Co. Ltd. | 129,790 | 7,149,057 | |
| Fila Korea Ltd. (b) | 670,598 | 51,126,461 | |
| Hanon Systems | 3,488,604 | 32,636,415 | |
| Hyundai Fire & Marine Insurance Co. Ltd. | 1,391,463 | 43,005,903 | |
| Hyundai Glovis Co. Ltd. | 266,616 | 40,443,868 | |
| Hyundai Industrial Development & Construction Co. | 857,741 | 36,371,809 | |
| Hyundai Mobis | 476,970 | 114,263,789 | |
| InterPark INT Corp. (b) | 3,068,694 | 30,049,593 | |
| Kakao Corp. | 120,045 | 8,018,709 | |
| KB Financial Group, Inc. | 3,759,221 | 139,214,574 | |
| KEPCO Plant Service & Engineering Co. Ltd. | 515,113 | 24,725,316 | |
| Korea Electric Power Corp. | 1,501,984 | 65,004,943 | |
| Korea Express Co. Ltd. (c) | 110,546 | 19,427,015 | |
| Korean Reinsurance Co. (b) | 7,317,390 | 75,492,743 | |
| KT Corp. | 571,148 | 16,118,892 | |
| KT Corp. sponsored ADR (a) | 234,100 | 3,743,259 | |
| LG Chemical Ltd. | 200,055 | 43,115,490 | |
| LG Display Co. Ltd. | 1,627,505 | 38,929,875 | |
| NCSOFT Corp. | 204,777 | 47,355,873 | |
| Samsung Electronics Co. Ltd. | 354,630 | 508,184,506 | |
| Samsung Fire & Marine Insurance Co. Ltd. | 84,342 | 21,495,594 | |
| Samsung SDI Co. Ltd. | 599,157 | 49,399,133 | |
| Shinhan Financial Group Co. Ltd. | 3,890,398 | 149,152,530 | |
| Shinhan Financial Group Co. Ltd. sponsored ADR | 22,600 | 873,264 | |
| SK Hynix, Inc. | 980,536 | 35,149,115 | |
| SK Telecom Co. Ltd. | 9,914 | 1,944,301 | |
| SK Telecom Co. Ltd. sponsored ADR | 1,630,300 | 35,622,055 | |
| Viatron Technologies, Inc. | 593,068 | 10,448,322 | |
| TOTAL KOREA (SOUTH) | 1,747,153,536 | ||
| Mauritius - 0.2% | |||
| MakeMyTrip Ltd. (a)(c) | 1,185,696 | 33,673,766 | |
| Mexico - 4.9% | |||
| America Movil S.A.B. de CV Series L sponsored ADR | 3,040,920 | 39,957,689 | |
| Banregio Grupo Financiero S.A.B. de CV (a) | 3,999,971 | 26,207,947 | |
| CEMEX S.A.B. de CV sponsored ADR | 8,432,812 | 73,196,808 | |
| El Puerto de Liverpool S.A.B. de CV Class C | 5,200,400 | 54,510,515 | |
| Fibra Uno Administracion SA de CV | 33,814,100 | 64,529,633 | |
| Grupo Aeroportuario del Pacifico S.A.B. de CV Series B | 5,470,600 | 52,876,774 | |
| Grupo Comercial Chedraui S.A.B. de CV | 12,170,788 | 27,147,792 | |
| Grupo Financiero Banorte S.A.B. de CV Series O | 33,258,400 | 195,862,256 | |
| Infraestructura Energetica Nova S.A.B. de CV | 9,943,200 | 44,021,320 | |
| Macquarie Mexican (REIT) (b) | 71,932,213 | 90,614,570 | |
| Promotora y Operadora de Infraestructura S.A.B. de CV | 3,110,025 | 34,767,911 | |
| Wal-Mart de Mexico SA de CV Series V | 25,831,500 | 54,653,282 | |
| TOTAL MEXICO | 758,346,497 | ||
| Netherlands - 0.9% | |||
| Altice NV Class B (c) | 1,149,493 | 21,394,768 | |
| Cnova NV (a)(c) | 1,600,608 | 8,579,259 | |
| Hangzhou Hikvision Digital Technology Co. Ltd. ELS (BNP Paribas Warrant Program) warrants 9/29/17 (c)(d) | 10,192,900 | 36,915,754 | |
| Yandex NV Series A (c) | 3,404,180 | 67,028,304 | |
| TOTAL NETHERLANDS | 133,918,085 | ||
| Nigeria - 0.3% | |||
| Guaranty Trust Bank PLC | 61,718,922 | 4,600,776 | |
| Guaranty Trust Bank PLC GDR (Reg. S) | 4,534,017 | 18,045,388 | |
| Transnational Corp. of Nigeria PLC (c) | 1,190,421,518 | 3,436,268 | |
| Zenith Bank PLC | 526,686,758 | 24,559,224 | |
| TOTAL NIGERIA | 50,641,656 | ||
| Pakistan - 0.4% | |||
| Habib Bank Ltd. | 30,750,600 | 65,632,578 | |
| Panama - 0.4% | |||
| Copa Holdings SA Class A | 645,900 | 59,571,357 | |
| Philippines - 0.9% | |||
| Alliance Global Group, Inc. | 85,280,500 | 25,110,727 | |
| Metropolitan Bank & Trust Co. | 35,294,087 | 59,249,203 | |
| Robinsons Land Corp. | 92,061,670 | 58,834,155 | |
| TOTAL PHILIPPINES | 143,194,085 | ||
| Romania - 0.1% | |||
| Banca Transilvania SA | 39,141,395 | 22,075,800 | |
| Russia - 5.4% | |||
| Lukoil PJSC sponsored ADR | 3,237,700 | 157,837,875 | |
| Magnit OJSC GDR (Reg. S) | 2,636,800 | 104,654,592 | |
| MegaFon PJSC (c) | 1,766,040 | 16,768,693 | |
| MegaFon PJSC GDR | 1,005,100 | 9,578,603 | |
| MMC Norilsk Nickel PJSC sponsored ADR | 5,671,700 | 85,529,236 | |
| Mobile TeleSystems OJSC (c) | 8,912,850 | 31,445,024 | |
| Mobile TeleSystems OJSC sponsored ADR | 629,200 | 4,851,132 | |
| NOVATEK OAO GDR (Reg. S) | 887,100 | 94,830,990 | |
| Rosneft Oil Co. OJSC (c) | 12,433,000 | 68,174,247 | |
| Sberbank of Russia (c) | 31,669,810 | 73,716,205 | |
| Sberbank of Russia sponsored ADR | 13,641,831 | 129,460,976 | |
| Sistema JSFC (c) | 67,498,200 | 20,520,539 | |
| Sistema JSFC sponsored GDR | 786,300 | 5,873,661 | |
| Unipro PJSC (c) | 782,571,400 | 36,017,324 | |
| TOTAL RUSSIA | 839,259,097 | ||
| Singapore - 0.7% | |||
| Ascendas Real Estate Investment Trust | 37,156,100 | 63,295,567 | |
| First Resources Ltd. | 28,640,700 | 37,467,079 | |
| TOTAL SINGAPORE | 100,762,646 | ||
| South Africa - 7.1% | |||
| Alexander Forbes Group Holdings Ltd. | 48,685,097 | 22,097,176 | |
| Aspen Pharmacare Holdings Ltd. | 2,360,382 | 51,418,560 | |
| Barclays Africa Group Ltd. | 4,822,101 | 55,917,954 | |
| Bidcorp Ltd. | 2,411,145 | 42,514,117 | |
| Bidvest Group Ltd. | 3,787,245 | 47,021,243 | |
| Imperial Holdings Ltd. | 7,010,400 | 88,551,874 | |
| JSE Ltd. | 1,905,292 | 22,222,696 | |
| Life Healthcare Group Holdings Ltd. | 15,883,300 | 42,406,512 | |
| Naspers Ltd. Class N | 3,195,600 | 535,588,129 | |
| Nedbank Group Ltd. | 2,307,300 | 37,731,317 | |
| Sasol Ltd. | 819,000 | 22,616,679 | |
| Shoprite Holdings Ltd. | 6,320,700 | 93,284,086 | |
| Telkom SA Ltd. | 8,584,600 | 39,606,783 | |
| TOTAL SOUTH AFRICA | 1,100,977,126 | ||
| Spain - 0.5% | |||
| Banco Bilbao Vizcaya Argentaria SA | 9,598,398 | 69,095,860 | |
| Taiwan - 8.0% | |||
| Advantech Co. Ltd. | 7,924,000 | 64,591,338 | |
| Boardtek Electronics Corp. | 10,592,000 | 10,515,235 | |
| Chroma ATE, Inc. | 6,959,000 | 17,679,747 | |
| E.SUN Financial Holdings Co. Ltd. | 71,710,420 | 40,826,618 | |
| eMemory Technology, Inc. | 953,000 | 10,125,918 | |
| Hermes Microvision, Inc. | 438,000 | 19,379,609 | |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | 13,486,000 | 36,486,220 | |
| HTC Corp. (c) | 2,346,000 | 6,875,379 | |
| King's Town Bank | 28,696,000 | 23,527,653 | |
| Largan Precision Co. Ltd. | 835,000 | 98,917,646 | |
| MediaTek, Inc. | 6,751,000 | 51,389,695 | |
| Taiwan Cement Corp. | 66,350,000 | 79,653,250 | |
| Taiwan Fertilizer Co. Ltd. | 15,211,000 | 20,407,736 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 104,891,284 | 630,069,030 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 469,801 | 14,610,811 | |
| Universal Cement Corp. | 25,285,914 | 19,689,144 | |
| Vanguard International Semiconductor Corp. | 11,379,000 | 23,242,704 | |
| Wistron NeWeb Corp. | 5,829,800 | 16,253,213 | |
| Yuanta Financial Holding Co. Ltd. | 144,209,206 | 53,972,394 | |
| TOTAL TAIWAN | 1,238,213,340 | ||
| Thailand - 2.0% | |||
| Jasmine Broadband Internet Infrastructure Fund | 71,462,900 | 24,679,303 | |
| Kasikornbank PCL (For. Reg.) | 21,810,204 | 107,066,859 | |
| PTT Global Chemical PCL (For. Reg.) | 32,737,500 | 56,061,363 | |
| PTT PCL (For. Reg.) | 7,695,900 | 75,998,042 | |
| Star Petroleum Refining PCL | 75,862,700 | 27,281,342 | |
| Thai Union Frozen Products PCL (For. Reg.) | 38,492,900 | 23,840,055 | |
| TOTAL THAILAND | 314,926,964 | ||
| Turkey - 1.4% | |||
| Aselsan A/S | 8,562,000 | 26,010,439 | |
| Bim Birlesik Magazalar A/S JSC | 3,467,000 | 56,471,455 | |
| Enka Insaat ve Sanayi A/S | 14,312,550 | 21,832,507 | |
| Tupras Turkiye Petrol Rafinelleri A/S | 3,349,796 | 68,257,134 | |
| Turkiye Garanti Bankasi A/S | 14,314,500 | 38,906,018 | |
| TOTAL TURKEY | 211,477,553 | ||
| United Arab Emirates - 1.1% | |||
| DP World Ltd. | 2,410,405 | 43,266,770 | |
| Emaar Properties PJSC | 34,144,306 | 64,794,188 | |
| First Gulf Bank PJSC | 18,699,354 | 58,547,645 | |
| TOTAL UNITED ARAB EMIRATES | 166,608,603 | ||
| United Kingdom - 0.3% | |||
| Fresnillo PLC | 1,999,500 | 40,137,163 | |
| United States of America - 0.4% | |||
| Cognizant Technology Solutions Corp. Class A (c) | 693,672 | 35,620,057 | |
| First Cash Financial Services, Inc. | 590,800 | 27,885,760 | |
| TOTAL UNITED STATES OF AMERICA | 63,505,817 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $12,385,897,697) | 14,083,297,842 | ||
| Preferred Stocks - 7.3% | |||
| Convertible Preferred Stocks - 0.2% | |||
| Cayman Islands - 0.2% | |||
| China Internet Plus Holdings Ltd. Series A-11 (e) | 7,577,282 | 29,253,613 | |
| Nonconvertible Preferred Stocks - 7.1% | |||
| Brazil - 5.9% | |||
| Ambev SA sponsored ADR | 29,360,300 | 173,225,770 | |
| Banco do Estado Rio Grande do Sul SA | 9,061,136 | 38,606,344 | |
| Companhia Paranaense de Energia-Copel: | |||
| (PN-B) | 154,100 | 1,764,522 | |
| (PN-B) sponsored ADR (a) | 5,212,013 | 59,469,068 | |
| Itau Unibanco Holding SA sponsored ADR | 21,393,994 | 255,230,348 | |
| Metalurgica Gerdau SA (PN) (b)(c) | 37,824,122 | 56,285,896 | |
| Petroleo Brasileiro SA - Petrobras (PN) sponsored (non-vtg.) (c) | 14,005,200 | 154,897,512 | |
| Telefonica Brasil SA | 4,003,400 | 57,918,863 | |
| Vale SA (PN-A) sponsored ADR | 19,026,000 | 122,527,440 | |
| 919,925,763 | |||
| Korea (South) - 1.2% | |||
| Hyundai Motor Co. Series 2 | 572,700 | 50,322,272 | |
| Samsung Electronics Co. Ltd. | 86,671 | 99,799,089 | |
| Samsung Fire & Marine Insurance Co. Ltd. | 191,001 | 31,561,994 | |
| 181,683,355 | |||
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 1,101,609,118 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $889,777,693) | 1,130,862,731 | ||
| Principal Amount | Value | ||
| Government Obligations - 0.0% | |||
| United States of America - 0.0% | |||
| U.S. Treasury Bills, yield at date of purchase 0.27% to 0.33% 11/3/16 to 1/19/17 (f) (Cost $3,059,211) | 3,060,000 | 3,059,323 | |
| Shares | Value | ||
| Money Market Funds - 2.4% | |||
| Fidelity Cash Central Fund, 0.41% (g) | 274,893,424 | 274,975,892 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (g)(h) | 99,831,545 | 99,851,512 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $374,757,711) | 374,827,404 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.8% | |||
| (Cost $13,653,492,312) | 15,592,047,300 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.8)% | (131,377,170) | ||
| NET ASSETS - 100% | $15,460,670,130 |
| Futures Contracts | |||
| Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||
| Equity Index Contracts | |||
| 1,006 ICE E-mini MSCI Emerging Markets Index Contracts (United States) | Dec. 2016 | 45,446,050 | $41,090 |
The face value of futures purchased as a percentage of Net Assets is 0.3%
Security Type Abbreviations
ELS – Equity-Linked Security
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Affiliated company
(c) Non-income producing
(d) 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 $36,915,754 or 0.2% of net assets.
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $29,253,613 or 0.2% of net assets.
(f) 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 $2,127,328.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| China Internet Plus Holdings Ltd. Series A-11 | 1/26/15 | $23,950,652 |
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 | $1,998,029 |
| Fidelity Securities Lending Cash Central Fund | 875,958 |
| Total | $2,873,987 |
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, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| Aquarius Platinum Ltd. (Australia) | $15,805,131 | $-- | $-- | $-- | $-- |
| China Suntien Green Energy Corp. Ltd. (H Shares) | 18,471,705 | 1,654,608 | 10,943,686 | 187,935 | -- |
| Direcional Engenharia SA | 12,974,783 | 201,995 | 1,042,836 | 1,118,109 | 23,505,135 |
| Fila Korea Ltd. | 57,918,933 | 4,383,793 | 3,491,849 | 112,515 | 51,126,461 |
| FPC Par Corretora de Seguros | 21,739,477 | 13,778,209 | 4,139,849 | 2,356,610 | 51,039,845 |
| Frontier Digital Ventures Ltd. | -- | 1,126,302 | -- | -- | 6,042,789 |
| GP Investments Ltd. Class A (depositary receipt) | 17,741,993 | -- | 3,249,032 | -- | 17,347,037 |
| InterPark INT Corp. | -- | 47,996,397 | -- | 160,455 | 30,049,593 |
| Korean Reinsurance Co. | 75,545,757 | 15,371,044 | 4,560,300 | 1,474,511 | 75,492,743 |
| Macquarie Mexican (REIT) | 99,884,761 | 1,695,026 | 1,786,051 | 7,114,348 | 90,614,570 |
| Metalurgica Gerdau SA (PN) | -- | 18,809,798 | 1,386,192 | -- | 56,285,896 |
| Minerva SA | 40,386,125 | 2,654,775 | 595,203 | -- | 40,691,800 |
| Smiles SA | 23,204,758 | 62,995,986 | 15,124,164 | 5,588,045 | 137,502,361 |
| SREI Infrastructure Finance Ltd. | 30,184,892 | -- | 2,264,636 | 312,244 | 45,678,231 |
| Total | $413,858,315 | $170,667,933 | $48,583,798 | $18,424,772 | $625,376,461 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,968,666,933 | $1,911,718,236 | $27,695,084 | $29,253,613 |
| Consumer Staples | 1,217,163,056 | 1,217,163,056 | -- | -- |
| Energy | 1,229,327,873 | 994,691,282 | 234,636,591 | -- |
| Financials | 3,526,311,050 | 2,832,663,722 | 693,647,328 | -- |
| Health Care | 363,091,726 | 363,091,726 | -- | -- |
| Industrials | 876,535,389 | 876,535,389 | -- | -- |
| Information Technology | 3,411,369,257 | 2,206,357,967 | 1,205,011,290 | -- |
| Materials | 957,132,137 | 940,346,126 | 16,786,011 | -- |
| Real Estate | 393,005,463 | 393,005,463 | -- | -- |
| Telecommunication Services | 803,141,653 | 690,539,692 | 112,601,961 | -- |
| Utilities | 468,416,036 | 403,411,093 | 65,004,943 | -- |
| Government Obligations | 3,059,323 | -- | 3,059,323 | -- |
| Money Market Funds | 374,827,404 | 374,827,404 | -- | -- |
| Total Investments in Securities: | $15,592,047,300 | $13,204,351,156 | $2,358,442,531 | $29,253,613 |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $41,090 | $41,090 | $-- | $-- |
| Total Assets | $41,090 | $41,090 | $-- | $-- |
| Total Derivative Instruments: | $41,090 | $41,090 | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $2,731,479,859 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2016. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $41,090 | $0 |
| Total Equity Risk | 41,090 | 0 |
| Total Value of Derivatives | $41,090 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin for derivative instruments, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series Emerging Markets Fund
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $95,623,817) — See accompanying schedule: Unaffiliated issuers (cost $12,700,073,885) | $14,591,843,435 | |
| Fidelity Central Funds (cost $374,757,711) | 374,827,404 | |
| Other affiliated issuers (cost $578,660,716) | 625,376,461 | |
| Total Investments (cost $13,653,492,312) | $15,592,047,300 | |
| Foreign currency held at value (cost $13,768,656) | 13,774,323 | |
| Receivable for investments sold | 36,872,085 | |
| Receivable for fund shares sold | 4,562,955 | |
| Dividends receivable | 7,025,245 | |
| Distributions receivable from Fidelity Central Funds | 275,925 | |
| Receivable for daily variation margin for derivative instruments | 231,380 | |
| Prepaid expenses | 38,050 | |
| Other receivables | 2,205,096 | |
| Total assets | 15,657,032,359 | |
| Liabilities | ||
| Payable for investments purchased | $62,536,169 | |
| Payable for fund shares redeemed | 8,461,723 | |
| Accrued management fee | 10,319,311 | |
| Other affiliated payables | 1,098,344 | |
| Other payables and accrued expenses | 14,114,819 | |
| Collateral on securities loaned, at value | 99,831,863 | |
| Total liabilities | 196,362,229 | |
| Net Assets | $15,460,670,130 | |
| Net Assets consist of: | ||
| Paid in capital | $14,782,485,604 | |
| Undistributed net investment income | 151,855,674 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (1,400,218,345) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,926,547,197 | |
| Net Assets | $15,460,670,130 | |
| Series Emerging Markets: | ||
| Net Asset Value, offering price and redemption price per share ($6,998,218,573 ÷ 416,883,045 shares) | $16.79 | |
| Class F: | ||
| Net Asset Value, offering price and redemption price per share ($8,462,451,557 ÷ 502,299,098 shares) | $16.85 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends (including $18,424,772 earned from other affiliated issuers) | $339,681,412 | |
| Interest | 42,313 | |
| Income from Fidelity Central Funds | 2,873,987 | |
| Income before foreign taxes withheld | 342,597,712 | |
| Less foreign taxes withheld | (34,820,952) | |
| Total income | 307,776,760 | |
| Expenses | ||
| Management fee | $107,919,964 | |
| Transfer agent fees | 10,176,167 | |
| Accounting and security lending fees | 1,936,279 | |
| Custodian fees and expenses | 7,539,614 | |
| Independent trustees' fees and expenses | 56,746 | |
| Registration fees | 72,881 | |
| Audit | 155,569 | |
| Legal | 37,295 | |
| Miscellaneous | 100,581 | |
| Total expenses before reductions | 127,995,096 | |
| Expense reductions | (853,170) | 127,141,926 |
| Net investment income (loss) | 180,634,834 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (369,576,594) | |
| Fidelity Central Funds | 21,475 | |
| Other affiliated issuers | (55,049,337) | |
| Foreign currency transactions | 642,603 | |
| Futures contracts | 21,886,546 | |
| Total net realized gain (loss) | (402,075,307) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $11,161,621) | 1,936,076,758 | |
| Assets and liabilities in foreign currencies | (47,476) | |
| Futures contracts | (5,267,279) | |
| Total change in net unrealized appreciation (depreciation) | 1,930,762,003 | |
| Net gain (loss) | 1,528,686,696 | |
| Net increase (decrease) in net assets resulting from operations | $1,709,321,530 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $180,634,834 | $152,994,942 |
| Net realized gain (loss) | (402,075,307) | (735,166,832) |
| Change in net unrealized appreciation (depreciation) | 1,930,762,003 | (961,074,063) |
| Net increase (decrease) in net assets resulting from operations | 1,709,321,530 | (1,543,245,953) |
| Distributions to shareholders from net investment income | (158,339,864) | (89,825,646) |
| Share transactions - net increase (decrease) | 1,997,447,805 | 3,499,387,207 |
| Total increase (decrease) in net assets | 3,548,429,471 | 1,866,315,608 |
| Net Assets | ||
| Beginning of period | 11,912,240,659 | 10,045,925,051 |
| End of period | $15,460,670,130 | $11,912,240,659 |
| Other Information | ||
| Undistributed net investment income end of period | $151,855,674 | $129,474,166 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series Emerging Markets Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.31 | $17.77 | $17.56 | $16.25 | $16.06 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19 | .21B | .21 | .20 | .21 |
| Net realized and unrealized gain (loss) | 1.47 | (2.53) | .17 | 1.34 | .59 |
| Total from investment operations | 1.66 | (2.32) | .38 | 1.54 | .80 |
| Distributions from net investment income | (.18) | (.14) | (.17) | (.22) | (.09) |
| Distributions from net realized gain | – | – | (.01) | (.01) | (.52) |
| Total distributions | (.18) | (.14) | (.17)C | (.23) | (.61) |
| Net asset value, end of period | $16.79 | $15.31 | $17.77 | $17.56 | $16.25 |
| Total ReturnD | 11.02% | (13.14)% | 2.20% | 9.59% | 5.40% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.03% | 1.04% | 1.06% | 1.09% | 1.10% |
| Expenses net of fee waivers, if any | 1.03% | 1.04% | 1.06% | 1.09% | 1.10% |
| Expenses net of all reductions | 1.03% | 1.03% | 1.06% | 1.06% | 1.07% |
| Net investment income (loss) | 1.24% | 1.29%B | 1.18% | 1.22% | 1.37% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $6,998,219 | $5,571,493 | $4,837,497 | $3,623,928 | $3,182,644 |
| Portfolio turnover rateG | 45% | 64% | 93% | 79% | 80% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.00%.
C Total distributions of $.17 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $.006 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series Emerging Markets Fund Class F
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.36 | $17.83 | $17.62 | $16.30 | $16.11 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .21 | .24B | .24 | .23 | .25 |
| Net realized and unrealized gain (loss) | 1.49 | (2.54) | .17 | 1.35 | .58 |
| Total from investment operations | 1.70 | (2.30) | .41 | 1.58 | .83 |
| Distributions from net investment income | (.21) | (.17) | (.19) | (.26) | (.12) |
| Distributions from net realized gain | – | – | (.01) | (.01) | (.52) |
| Total distributions | (.21) | (.17) | (.20) | (.26)C | (.64) |
| Net asset value, end of period | $16.85 | $15.36 | $17.83 | $17.62 | $16.30 |
| Total ReturnD | 11.23% | (13.02)% | 2.35% | 9.84% | 5.60% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .87% | .88% | .89% | .90% | .90% |
| Expenses net of fee waivers, if any | .87% | .88% | .89% | .90% | .90% |
| Expenses net of all reductions | .86% | .87% | .89% | .88% | .87% |
| Net investment income (loss) | 1.41% | 1.45%B | 1.35% | 1.40% | 1.57% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $8,462,452 | $6,340,748 | $5,208,429 | $3,490,320 | $2,570,780 |
| Portfolio turnover rateG | 45% | 64% | 93% | 79% | 80% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.17%.
C Total distributions of $.26 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $.009 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series International Growth Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Series International Growth Fund | (3.10)% | 7.03% | 5.91% |
| Class F | (2.85)% | 7.22% | 6.12% |
A From December 3, 2009
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series International Growth Fund, a class of the fund, on December 3, 2009, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Growth Index performed over the same period.
| Period Ending Values | ||
|
| $14,870 | Fidelity® Series International Growth Fund |
|
| $13,688 | MSCI EAFE Growth Index |
Fidelity® Series International Growth Fund
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: The fund’s share classes returned about -3% for the fiscal year, roughly in line with the -3.07% return of the MSCI EAFE Growth Index. Relative to the benchmark, the fund was hurt the most by its positioning in Japan, where subpar security selection hampered results, as did underexposure to a stronger yen. Poor stock picking in the U.K. also detracted – especially a position in Associated British Foods. Although a weaker British pound hurt our absolute performance, an underweight stance proved favorable versus the index. Also, on the positive side, we benefited from out-of-benchmark stock picking in the U.S. – where many of our globally oriented holdings happen to be domiciled – and in emerging markets. In sector terms, the fund was hurt by stock picking in real estate as well as a combination of security selection and an unfavorable overweighting in industrials. Within health care, the fund was hindered by investments in drug manufacturers Novo Nordisk and Novartis, based in Denmark and Switzerland, respectively. In contrast, the fund was well-positioned in technology and also saw good stock selection in consumer discretionary. Within tech, out-of-benchmark fund holding Taiwan Semiconductor Manufacturing gained steadily. Elsewhere, the fund’s holding in Keyence, a Japanese maker of sensors for factory automation, also added relative value.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Series International Growth Fund
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| United States of America* | 23.9% | |
| Japan | 13.8% | |
| Switzerland | 12.5% | |
| United Kingdom | 8.8% | |
| Spain | 5.1% | |
| Belgium | 4.0% | |
| Sweden | 4.0% | |
| Australia | 4.0% | |
| Germany | 3.9% | |
| Other | 20.0% | |
* 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 April 30, 2016 | ||
| United States of America* | 22.1% | |
| Japan | 14.2% | |
| United Kingdom | 13.3% | |
| Switzerland | 12.8% | |
| Spain | 4.7% | |
| Belgium | 4.3% | |
| Australia | 4.0% | |
| Sweden | 3.8% | |
| Denmark | 3.1% | |
| Other | 17.7% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 94.8 | 95.7 |
| Short-Term Investments and Net Other Assets (Liabilities) | 5.2 | 4.3 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 5.5 | 4.9 |
| Anheuser-Busch InBev SA NV (Belgium, Beverages) | 3.5 | 3.3 |
| Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 3.1 | 3.5 |
| CSL Ltd. (Australia, Biotechnology) | 3.0 | 2.9 |
| Inditex SA (Spain, Specialty Retail) | 2.7 | 2.6 |
| Novartis AG (Switzerland, Pharmaceuticals) | 2.7 | 3.1 |
| Reckitt Benckiser Group PLC (United Kingdom, Household Products) | 2.4 | 3.1 |
| Visa, Inc. Class A (United States of America, IT Services) | 2.3 | 1.9 |
| SAP AG (Germany, Software) | 2.2 | 1.9 |
| ASSA ABLOY AB (B Shares) (Sweden, Building Products) | 2.2 | 2.5 |
| 29.6 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Consumer Staples | 19.8 | 20.3 |
| Health Care | 17.9 | 18.6 |
| Information Technology | 15.7 | 13.9 |
| Consumer Discretionary | 12.9 | 13.2 |
| Industrials | 10.9 | 10.7 |
| Financials | 9.1 | 14.0 |
| Materials | 5.3 | 4.3 |
| Real Estate | 2.5 | 0.0 |
| Telecommunication Services | 0.4 | 0.3 |
| Energy | 0.3 | 0.4 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity® Series International Growth Fund
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 94.8% | |||
| Shares | Value | ||
| Australia - 4.0% | |||
| CSL Ltd. | 4,924,354 | $376,506,046 | |
| Sydney Airport unit | 8,032,050 | 38,248,477 | |
| Transurban Group unit | 10,438,207 | 82,500,175 | |
| TOTAL AUSTRALIA | 497,254,698 | ||
| Austria - 1.6% | |||
| Andritz AG | 2,767,698 | 144,772,160 | |
| Buwog-Gemeinnuetzige Wohnung | 2,210,109 | 53,411,630 | |
| TOTAL AUSTRIA | 198,183,790 | ||
| Belgium - 4.0% | |||
| Anheuser-Busch InBev SA NV | 3,845,981 | 441,402,328 | |
| KBC Groep NV | 1,007,931 | 61,419,387 | |
| TOTAL BELGIUM | 502,821,715 | ||
| Canada - 1.1% | |||
| Alimentation Couche-Tard, Inc. Class B (sub. vtg.) | 984,800 | 49,471,277 | |
| Franco-Nevada Corp. | 701,500 | 45,914,177 | |
| Pason Systems, Inc. | 3,575,569 | 40,652,671 | |
| TOTAL CANADA | 136,038,125 | ||
| Cayman Islands - 0.9% | |||
| 58.com, Inc. ADR (a)(b) | 1,031,900 | 43,185,015 | |
| Alibaba Group Holding Ltd. sponsored ADR (b) | 687,700 | 69,932,213 | |
| TOTAL CAYMAN ISLANDS | 113,117,228 | ||
| Denmark - 2.2% | |||
| Jyske Bank A/S (Reg.) | 1,334,500 | 60,562,406 | |
| Novo Nordisk A/S Series B sponsored ADR | 6,129,281 | 217,834,647 | |
| TOTAL DENMARK | 278,397,053 | ||
| Finland - 0.3% | |||
| Tikkurila Oyj | 1,985,479 | 38,251,271 | |
| France - 1.1% | |||
| Essilor International SA (a) | 1,185,451 | 133,256,073 | |
| Germany - 3.9% | |||
| Bayer AG | 2,098,900 | 208,399,125 | |
| SAP AG | 3,190,191 | 281,054,009 | |
| TOTAL GERMANY | 489,453,134 | ||
| Hong Kong - 2.0% | |||
| AIA Group Ltd. | 39,602,000 | 249,952,344 | |
| India - 0.8% | |||
| Housing Development Finance Corp. Ltd. | 4,557,011 | 95,074,574 | |
| Ireland - 3.2% | |||
| CRH PLC sponsored ADR | 6,810,505 | 219,979,312 | |
| James Hardie Industries PLC CDI | 12,279,270 | 183,360,702 | |
| TOTAL IRELAND | 403,340,014 | ||
| Isle of Man - 0.4% | |||
| Playtech Ltd. | 4,792,493 | 54,436,586 | |
| Israel - 0.3% | |||
| Azrieli Group | 1,019,186 | 43,410,315 | |
| Italy - 0.7% | |||
| Azimut Holding SpA | 1,613,606 | 25,896,932 | |
| Interpump Group SpA | 3,440,349 | 55,214,523 | |
| TOTAL ITALY | 81,111,455 | ||
| Japan - 13.8% | |||
| Astellas Pharma, Inc. | 14,658,700 | 217,562,414 | |
| Coca-Cola Central Japan Co. Ltd. | 86,200 | 1,903,683 | |
| DENSO Corp. | 3,324,600 | 144,720,120 | |
| East Japan Railway Co. | 1,343,100 | 118,557,039 | |
| Hoya Corp. | 2,571,300 | 107,515,500 | |
| Japan Tobacco, Inc. | 4,859,000 | 185,056,222 | |
| Keyence Corp. | 322,200 | 236,757,242 | |
| Misumi Group, Inc. | 3,529,600 | 64,520,294 | |
| Mitsui Fudosan Co. Ltd. | 5,634,000 | 128,426,404 | |
| Nintendo Co. Ltd. | 238,400 | 57,468,750 | |
| Olympus Corp. | 3,223,200 | 115,256,985 | |
| OSG Corp. | 3,087,200 | 65,912,471 | |
| Seven Bank Ltd. | 10,790,600 | 33,235,089 | |
| SHO-BOND Holdings Co. Ltd. (c) | 1,496,100 | 72,329,808 | |
| USS Co. Ltd. | 10,690,800 | 181,255,291 | |
| TOTAL JAPAN | 1,730,477,312 | ||
| Kenya - 0.4% | |||
| Safaricom Ltd. | 244,964,300 | 47,836,118 | |
| Korea (South) - 0.7% | |||
| BGFretail Co. Ltd. | 526,744 | 80,133,819 | |
| Samsung Biologics Co. Ltd. (b) | 20,054 | 2,384,553 | |
| TOTAL KOREA (SOUTH) | 82,518,372 | ||
| Mexico - 0.6% | |||
| Fomento Economico Mexicano S.A.B. de CV sponsored ADR | 792,412 | 75,810,056 | |
| Netherlands - 1.1% | |||
| ASML Holding NV (Netherlands) | 1,351,200 | 142,948,821 | |
| South Africa - 1.8% | |||
| Clicks Group Ltd. | 6,902,484 | 64,244,868 | |
| Naspers Ltd. Class N | 995,310 | 166,815,691 | |
| TOTAL SOUTH AFRICA | 231,060,559 | ||
| Spain - 5.1% | |||
| Amadeus IT Holding SA Class A | 3,818,800 | 180,259,772 | |
| Hispania Activos Inmobiliarios SA | 2,473,010 | 30,459,458 | |
| Inditex SA | 9,678,471 | 338,338,527 | |
| Merlin Properties Socimi SA | 2,920,800 | 32,832,596 | |
| Prosegur Compania de Seguridad SA (Reg.) | 7,701,289 | 55,966,076 | |
| TOTAL SPAIN | 637,856,429 | ||
| Sweden - 4.0% | |||
| ASSA ABLOY AB (B Shares) | 15,083,417 | 274,117,810 | |
| Fagerhult AB | 954,369 | 24,302,616 | |
| Intrum Justitia AB | 707,800 | 21,824,516 | |
| Svenska Cellulosa AB (SCA) (B Shares) | 3,166,300 | 89,708,006 | |
| Svenska Handelsbanken AB (A Shares) | 6,611,013 | 90,128,766 | |
| TOTAL SWEDEN | 500,081,714 | ||
| Switzerland - 12.5% | |||
| Nestle SA (Reg. S) | 9,430,767 | 683,861,807 | |
| Novartis AG | 4,760,410 | 337,834,789 | |
| Roche Holding AG (participation certificate) | 1,671,608 | 383,937,776 | |
| Schindler Holding AG: | |||
| (participation certificate) | 692,593 | 128,712,903 | |
| (Reg.) | 154,309 | 28,536,756 | |
| TOTAL SWITZERLAND | 1,562,884,031 | ||
| Taiwan - 0.8% | |||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 17,665,000 | 106,111,479 | |
| United Kingdom - 8.8% | |||
| Associated British Foods PLC | 850,700 | 25,635,743 | |
| BAE Systems PLC | 13,275,600 | 87,960,872 | |
| Berendsen PLC | 5,439,100 | 64,311,048 | |
| Howden Joinery Group PLC | 5,721,200 | 26,253,305 | |
| Informa PLC | 14,194,171 | 116,837,900 | |
| InterContinental Hotel Group PLC ADR (a) | 6,641,452 | 262,005,281 | |
| Prudential PLC | 9,350,918 | 152,596,342 | |
| Reckitt Benckiser Group PLC | 3,338,687 | 298,680,615 | |
| Rightmove PLC | 603,670 | 27,597,619 | |
| Shaftesbury PLC | 3,385,400 | 37,998,001 | |
| Unite Group PLC | 594,258 | 4,026,003 | |
| TOTAL UNITED KINGDOM | 1,103,902,729 | ||
| United States of America - 18.7% | |||
| Alphabet, Inc. Class A | 234,294 | 189,754,711 | |
| Autoliv, Inc. (a) | 1,281,327 | 124,006,827 | |
| Berkshire Hathaway, Inc. Class B (b) | 894,050 | 129,011,415 | |
| China Biologic Products, Inc. (b) | 563,750 | 66,584,513 | |
| Domino's Pizza, Inc. | 648,040 | 109,674,290 | |
| Martin Marietta Materials, Inc. | 455,200 | 84,384,976 | |
| MasterCard, Inc. Class A | 2,329,310 | 249,282,756 | |
| Mohawk Industries, Inc. (b) | 855,415 | 157,652,985 | |
| Molson Coors Brewing Co. Class B | 767,400 | 79,663,794 | |
| Moody's Corp. | 709,300 | 71,298,836 | |
| MSCI, Inc. | 867,200 | 69,540,768 | |
| Philip Morris International, Inc. | 1,803,392 | 173,919,124 | |
| PriceSmart, Inc. | 645,004 | 58,663,114 | |
| ResMed, Inc. (a) | 1,227,900 | 73,391,583 | |
| Reynolds American, Inc. | 2,945,300 | 162,227,124 | |
| S&P Global, Inc. | 805,171 | 98,110,086 | |
| Sherwin-Williams Co. | 340,100 | 83,276,886 | |
| SS&C Technologies Holdings, Inc. | 2,000,356 | 63,871,367 | |
| Visa, Inc. Class A | 3,527,496 | 291,053,694 | |
| TOTAL UNITED STATES OF AMERICA | 2,335,368,849 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $9,620,507,330) | 11,870,954,844 | ||
| Money Market Funds - 5.9% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 578,835,501 | 579,009,152 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 154,355,497 | 154,386,368 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $733,267,172) | 733,395,520 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.7% | |||
| (Cost $10,353,774,502) | 12,604,350,364 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.7)% | (86,461,857) | ||
| NET ASSETS - 100% | $12,517,888,507 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Affiliated company
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
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 | $1,674,178 |
| Fidelity Securities Lending Cash Central Fund | 1,858,978 |
| Total | $3,533,156 |
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, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| SHO-BOND Holdings Co. Ltd. | $61,860,089 | $-- | $2,777,406 | $1,101,442 | $72,329,808 |
| Total | $61,860,089 | $-- | $2,777,406 | $1,101,442 | $72,329,808 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,601,306,912 | $1,601,306,912 | $-- | $-- |
| Consumer Staples | 2,470,381,580 | 1,487,839,158 | 982,542,422 | -- |
| Energy | 40,652,671 | 40,652,671 | -- | -- |
| Financials | 1,136,826,945 | 894,101,837 | 242,725,108 | -- |
| Health Care | 2,240,464,004 | 1,090,345,347 | 1,150,118,657 | -- |
| Industrials | 1,354,040,849 | 991,962,167 | 362,078,682 | -- |
| Information Technology | 1,993,714,035 | 1,406,130,976 | 587,583,059 | -- |
| Materials | 655,167,324 | 655,167,324 | -- | -- |
| Real Estate | 330,564,407 | 330,564,407 | -- | -- |
| Telecommunication Services | 47,836,118 | 47,836,118 | -- | -- |
| Money Market Funds | 733,395,519 | 733,395,519 | -- | -- |
| Total Investments in Securities: | $12,604,350,364 | $9,279,302,436 | $3,325,047,928 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $182,696,164 |
| Level 2 to Level 1 | $2,150,446,580 |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series International Growth Fund
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $151,284,416) — See accompanying schedule: Unaffiliated issuers (cost $9,576,320,891) | $11,798,625,036 | |
| Fidelity Central Funds (cost $733,267,172) | 733,395,520 | |
| Other affiliated issuers (cost $44,186,439) | 72,329,808 | |
| Total Investments (cost $10,353,774,502) | $12,604,350,364 | |
| Receivable for investments sold | 45,978,693 | |
| Receivable for fund shares sold | 4,176,758 | |
| Dividends receivable | 47,956,739 | |
| Distributions receivable from Fidelity Central Funds | 228,122 | |
| Prepaid expenses | 32,684 | |
| Other receivables | 90,027 | |
| Total assets | 12,702,813,387 | |
| Liabilities | ||
| Payable to custodian bank | $64,124 | |
| Payable for investments purchased | 13,852,708 | |
| Payable for fund shares redeemed | 7,251,610 | |
| Accrued management fee | 8,045,616 | |
| Other affiliated payables | 954,928 | |
| Other payables and accrued expenses | 394,421 | |
| Collateral on securities loaned, at value | 154,361,473 | |
| Total liabilities | 184,924,880 | |
| Net Assets | $12,517,888,507 | |
| Net Assets consist of: | ||
| Paid in capital | $9,974,231,032 | |
| Undistributed net investment income | 157,868,017 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 136,703,425 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,249,086,033 | |
| Net Assets | $12,517,888,507 | |
| Series International Growth: | ||
| Net Asset Value, offering price and redemption price per share ($5,618,983,212 ÷ 420,132,223 shares) | $13.37 | |
| Class F: | ||
| Net Asset Value, offering price and redemption price per share ($6,898,905,295 ÷ 514,180,789 shares) | $13.42 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends (including $1,101,442 earned from other affiliated issuers) | $248,399,275 | |
| Special dividends | 41,910,809 | |
| Income from Fidelity Central Funds | 3,533,156 | |
| Income before foreign taxes withheld | 293,843,240 | |
| Less foreign taxes withheld | (25,626,652) | |
| Total income | 268,216,588 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $84,715,372 | |
| Performance adjustment | 6,052,536 | |
| Transfer agent fees | 9,187,781 | |
| Accounting and security lending fees | 1,891,114 | |
| Custodian fees and expenses | 1,136,177 | |
| Independent trustees' fees and expenses | 51,991 | |
| Registration fees | 45,668 | |
| Audit | 87,432 | |
| Legal | 37,767 | |
| Miscellaneous | 99,784 | |
| Total expenses before reductions | 103,305,622 | |
| Expense reductions | (488,370) | 102,817,252 |
| Net investment income (loss) | 165,399,336 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 164,485,032 | |
| Fidelity Central Funds | 48,208 | |
| Other affiliated issuers | (80,591) | |
| Foreign currency transactions | 2,054,163 | |
| Total net realized gain (loss) | 166,506,812 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (655,178,746) | |
| Assets and liabilities in foreign currencies | (1,665,404) | |
| Total change in net unrealized appreciation (depreciation) | (656,844,150) | |
| Net gain (loss) | (490,337,338) | |
| Net increase (decrease) in net assets resulting from operations | $(324,938,002) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $165,399,336 | $144,455,176 |
| Net realized gain (loss) | 166,506,812 | 260,002,474 |
| Change in net unrealized appreciation (depreciation) | (656,844,150) | 72,057,794 |
| Net increase (decrease) in net assets resulting from operations | (324,938,002) | 476,515,444 |
| Distributions to shareholders from net investment income | (141,417,551) | (177,438,330) |
| Distributions to shareholders from net realized gain | (272,101,876) | (186,668,096) |
| Total distributions | (413,519,427) | (364,106,426) |
| Share transactions - net increase (decrease) | 1,248,358,990 | (731,969,049) |
| Total increase (decrease) in net assets | 509,901,561 | (619,560,031) |
| Net Assets | ||
| Beginning of period | 12,007,986,946 | 12,627,546,977 |
| End of period | $12,517,888,507 | $12,007,986,946 |
| Other Information | ||
| Undistributed net investment income end of period | $157,868,017 | $134,692,373 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series International Growth Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.28 | $14.17 | $13.95 | $11.55 | $10.53 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .17B | .15 | .17 | .16 | .15 |
| Net realized and unrealized gain (loss) | (.60) | .36 | .20 | 2.43 | .99 |
| Total from investment operations | (.43) | .51 | .37 | 2.59 | 1.14 |
| Distributions from net investment income | (.16) | (.19) | (.10) | (.19) | (.12) |
| Distributions from net realized gain | (.33) | (.21) | (.05) | – | (.01) |
| Total distributions | (.48)C | (.40) | (.15) | (.19) | (.12)D |
| Net asset value, end of period | $13.37 | $14.28 | $14.17 | $13.95 | $11.55 |
| Total ReturnE | (3.10)% | 3.65% | 2.66% | 22.72% | 11.00% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .94% | .92% | .97% | 1.04% | 1.05% |
| Expenses net of fee waivers, if any | .94% | .91% | .97% | 1.04% | 1.05% |
| Expenses net of all reductions | .94% | .91% | .97% | 1.02% | 1.04% |
| Net investment income (loss) | 1.27%B | 1.06% | 1.23% | 1.26% | 1.38% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,618,983 | $5,563,674 | $6,049,347 | $5,642,298 | $5,045,151 |
| Portfolio turnover rateH | 26% | 24% | 33% | 41% | 27% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .93%.
C Total distributions of $.48 per share is comprised of distributions from net investment income of $.156 and distributions from net realized gain of $.326 per share.
D Total distributions of $.12 per share is comprised of distributions from net investment income of $.115 and distributions from net realized gain of $.007 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series International Growth Fund Class F
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.32 | $14.21 | $13.99 | $11.59 | $10.57 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19B | .18 | .20 | .18 | .17 |
| Net realized and unrealized gain (loss) | (.58) | .35 | .19 | 2.43 | 1.00 |
| Total from investment operations | (.39) | .53 | .39 | 2.61 | 1.17 |
| Distributions from net investment income | (.18) | (.21) | (.12) | (.21) | (.14) |
| Distributions from net realized gain | (.33) | (.21) | (.05) | – | (.01) |
| Total distributions | (.51) | (.42) | (.17) | (.21) | (.15) |
| Net asset value, end of period | $13.42 | $14.32 | $14.21 | $13.99 | $11.59 |
| Total ReturnC | (2.85)% | 3.83% | 2.80% | 22.88% | 11.23% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .78% | .75% | .80% | .85% | .85% |
| Expenses net of fee waivers, if any | .77% | .75% | .80% | .85% | .85% |
| Expenses net of all reductions | .77% | .75% | .80% | .84% | .84% |
| Net investment income (loss) | 1.44%B | 1.23% | 1.40% | 1.44% | 1.58% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $6,898,905 | $6,444,313 | $6,578,200 | $5,536,085 | $4,064,357 |
| Portfolio turnover rateF | 26% | 24% | 33% | 41% | 27% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.09%.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series International Value Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Series International Value Fund | (4.49)% | 5.25% | 1.76% |
| Class F | (4.30)% | 5.43% | 1.96% |
A From December 3, 2009
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series International Value Fund, a class of the fund, on December 3, 2009, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Value Index performed over the same period.
| Period Ending Values | ||
|
| $11,283 | Fidelity® Series International Value Fund |
|
| $11,702 | MSCI EAFE Value Index |
Fidelity® Series International Value Fund
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Alexander Zavratsky: For the year, the fund's share classes returned about -4%, underperforming the -3.10% return of the benchmark MSCI EAFE Value Index. Versus the benchmark, positioning in Australia and stock picking in the U.K. disappointed. Brexit and the associated sharp fall in the British pound significantly hurt some of the fund's positions, notably an out-of-index stake in London-based commercial television giant ITV – our largest individual relative detractor this period – as well as multinational banking firm Barclays and retail and commercial bank Lloyds Banking Group. We exited our stake in Barclays prior to period end. On the flip side, picks among U.S.-listed names with international exposure were a positive, as were choices within Europe, especially Spain and Sweden. An out-of-index stake in German technology services firm Atos was the fund's largest relative contributor. The firm displayed a very strong free-cash-flow yield and had no debt and low expectations, plus the prospect of improving fundamentals, and the market rewarded its stock.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Series International Value Fund
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 21.7% | |
| United Kingdom | 21.0% | |
| France | 14.4% | |
| Switzerland | 7.5% | |
| Germany | 6.3% | |
| United States of America* | 4.6% | |
| Australia | 4.5% | |
| Netherlands | 3.8% | |
| Spain | 3.4% | |
| Other | 12.8% | |
* 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 April 30, 2016 | ||
| United Kingdom | 20.8% | |
| Japan | 19.6% | |
| France | 17.9% | |
| Switzerland | 7.9% | |
| United States of America* | 6.2% | |
| Germany | 6.0% | |
| Netherlands | 3.8% | |
| Australia | 3.7% | |
| Italy | 3.1% | |
| Other | 11.0% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 98.8 | 99.1 |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.2 | 0.9 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Toyota Motor Corp. (Japan, Automobiles) | 3.1 | 2.2 |
| Total SA (France, Oil, Gas & Consumable Fuels) | 3.0 | 3.5 |
| Mitsubishi UFJ Financial Group, Inc. (Japan, Banks) | 2.4 | 1.5 |
| Westpac Banking Corp. (Australia, Banks) | 2.3 | 2.3 |
| BASF AG (Germany, Chemicals) | 2.0 | 1.7 |
| BP PLC (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 0.0 |
| AstraZeneca PLC (United Kingdom) (United Kingdom, Pharmaceuticals) | 1.8 | 1.6 |
| HSBC Holdings PLC sponsored ADR (United Kingdom, Banks) | 1.8 | 1.6 |
| ING Groep NV (Certificaten Van Aandelen) (Netherlands, Banks) | 1.8 | 1.2 |
| Sanofi SA (France, Pharmaceuticals) | 1.8 | 2.1 |
| 21.9 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Financials | 29.1 | 24.3 |
| Industrials | 11.4 | 9.0 |
| Health Care | 10.9 | 13.5 |
| Consumer Discretionary | 10.6 | 13.8 |
| Materials | 8.8 | 5.9 |
| Energy | 8.2 | 8.2 |
| Consumer Staples | 6.3 | 9.3 |
| Information Technology | 4.8 | 4.5 |
| Telecommunication Services | 4.5 | 6.8 |
| Utilities | 3.3 | 3.8 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity® Series International Value Fund
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 98.8% | |||
| Shares | Value | ||
| Australia - 4.5% | |||
| Ansell Ltd. (a) | 2,820,819 | $46,542,337 | |
| Insurance Australia Group Ltd. | 21,559,956 | 90,367,628 | |
| Macquarie Group Ltd. | 1,792,164 | 108,791,272 | |
| Magellan Financial Group Ltd. | 2,734,870 | 44,292,048 | |
| Westpac Banking Corp. | 12,506,436 | 289,210,701 | |
| TOTAL AUSTRALIA | 579,203,986 | ||
| Bailiwick of Jersey - 0.5% | |||
| Wolseley PLC | 1,198,604 | 62,366,051 | |
| Belgium - 1.1% | |||
| KBC Groep NV | 2,420,578 | 147,500,590 | |
| Canada - 0.9% | |||
| Imperial Oil Ltd. | 2,651,400 | 85,988,146 | |
| Potash Corp. of Saskatchewan, Inc. | 2,026,400 | 32,949,962 | |
| TOTAL CANADA | 118,938,108 | ||
| Finland - 1.2% | |||
| Sampo Oyj (A Shares) | 3,298,713 | 151,127,333 | |
| France - 14.4% | |||
| Atos Origin SA | 1,758,127 | 182,615,079 | |
| AXA SA | 9,461,373 | 213,470,532 | |
| Capgemini SA | 1,623,905 | 134,553,797 | |
| Havas SA | 9,169,131 | 74,594,780 | |
| Sanofi SA | 2,886,856 | 224,651,722 | |
| Societe Generale Series A | 4,980,100 | 194,261,298 | |
| SR Teleperformance SA | 841,800 | 88,961,755 | |
| Total SA | 8,171,245 | 391,442,711 | |
| VINCI SA | 3,036,000 | 219,896,100 | |
| Vivendi SA | 6,044,481 | 122,343,603 | |
| TOTAL FRANCE | 1,846,791,377 | ||
| Germany - 6.3% | |||
| Axel Springer Verlag AG | 1,168,400 | 58,506,306 | |
| BASF AG | 2,996,220 | 264,114,772 | |
| Fresenius SE & Co. KGaA | 1,661,400 | 122,632,437 | |
| GEA Group AG | 1,700,463 | 65,753,918 | |
| HeidelbergCement Finance AG | 1,026,200 | 97,060,193 | |
| Linde AG | 629,400 | 103,845,855 | |
| SAP AG | 1,164,356 | 102,579,100 | |
| TOTAL GERMANY | 814,492,581 | ||
| Hong Kong - 1.6% | |||
| AIA Group Ltd. | 17,261,600 | 108,948,472 | |
| Power Assets Holdings Ltd. | 9,954,550 | 93,634,162 | |
| TOTAL HONG KONG | 202,582,634 | ||
| Indonesia - 0.6% | |||
| PT Bank Rakyat Indonesia Tbk | 83,598,300 | 78,165,179 | |
| Ireland - 2.1% | |||
| Allergan PLC (a) | 286,800 | 59,923,992 | |
| CRH PLC | 2,891,300 | 93,863,347 | |
| Medtronic PLC | 1,353,000 | 110,973,060 | |
| TOTAL IRELAND | 264,760,399 | ||
| Israel - 0.8% | |||
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 2,378,392 | 101,652,474 | |
| Italy - 0.5% | |||
| Telecom Italia SpA (a) | 75,035,000 | 65,227,434 | |
| Japan - 21.7% | |||
| Astellas Pharma, Inc. | 5,562,700 | 82,560,830 | |
| Daito Trust Construction Co. Ltd. | 597,300 | 100,100,577 | |
| Dentsu, Inc. | 1,303,200 | 65,116,506 | |
| East Japan Railway Co. | 740,200 | 65,338,337 | |
| Fuji Heavy Industries Ltd. | 2,963,300 | 115,683,706 | |
| Hoya Corp. | 2,804,900 | 117,283,174 | |
| Itochu Corp. | 8,536,900 | 108,146,006 | |
| Japan Tobacco, Inc. | 3,075,300 | 117,123,564 | |
| Kao Corp. | 1,223,000 | 63,033,422 | |
| KDDI Corp. | 3,700,800 | 112,479,065 | |
| Komatsu Ltd. | 4,375,000 | 97,383,577 | |
| Makita Corp. | 1,369,000 | 94,904,453 | |
| Mitsubishi UFJ Financial Group, Inc. | 59,535,300 | 307,190,931 | |
| Nintendo Co. Ltd. | 187,400 | 45,174,680 | |
| Nippon Prologis REIT, Inc. | 7,777 | 17,597,808 | |
| Nippon Telegraph & Telephone Corp. | 4,222,400 | 187,207,876 | |
| OBIC Co. Ltd. | 1,552,600 | 80,835,282 | |
| Olympus Corp. | 3,337,300 | 119,337,036 | |
| ORIX Corp. | 9,402,900 | 149,332,793 | |
| Seven & i Holdings Co. Ltd. | 2,694,530 | 112,616,811 | |
| Shin-Etsu Chemical Co. Ltd. | 811,600 | 61,688,410 | |
| Sony Corp. | 3,720,600 | 117,266,793 | |
| Sony Financial Holdings, Inc. | 4,563,100 | 64,223,664 | |
| Toyota Motor Corp. | 6,790,300 | 393,883,304 | |
| TOTAL JAPAN | 2,795,508,605 | ||
| Luxembourg - 0.3% | |||
| RTL Group SA | 445,620 | 34,756,193 | |
| Netherlands - 3.8% | |||
| ING Groep NV (Certificaten Van Aandelen) | 17,203,634 | 225,832,423 | |
| PostNL NV (a) | 6,894,649 | 32,484,435 | |
| RELX NV | 8,648,607 | 145,837,444 | |
| Wolters Kluwer NV | 2,162,376 | 83,686,495 | |
| TOTAL NETHERLANDS | 487,840,797 | ||
| Norway - 0.8% | |||
| Statoil ASA (b) | 6,567,688 | 107,224,128 | |
| Spain - 3.4% | |||
| Banco Bilbao Vizcaya Argentaria SA | 5,124,900 | 36,892,549 | |
| Banco Santander SA (Spain) | 16,586,400 | 81,273,839 | |
| CaixaBank SA | 27,874,200 | 84,107,299 | |
| Iberdrola SA | 28,717,887 | 195,739,101 | |
| Mediaset Espana Comunicacion SA | 3,310,748 | 36,979,752 | |
| TOTAL SPAIN | 434,992,540 | ||
| Sweden - 2.4% | |||
| Nordea Bank AB | 17,942,133 | 188,615,726 | |
| Swedbank AB (A Shares) | 5,110,400 | 119,723,503 | |
| TOTAL SWEDEN | 308,339,229 | ||
| Switzerland - 7.5% | |||
| ABB Ltd. (Reg.) | 6,668,430 | 137,572,572 | |
| Credit Suisse Group AG | 6,224,365 | 86,847,168 | |
| Lafargeholcim Ltd. (Reg.) | 2,226,270 | 118,900,884 | |
| Nestle SA (Reg. S) | 1,307,281 | 94,796,060 | |
| Novartis AG | 2,508,447 | 178,018,419 | |
| Syngenta AG (Switzerland) | 66,485 | 26,605,030 | |
| UBS Group AG | 10,831,671 | 152,401,611 | |
| Zurich Insurance Group AG | 658,109 | 172,183,740 | |
| TOTAL SWITZERLAND | 967,325,484 | ||
| United Kingdom - 21.0% | |||
| AstraZeneca PLC (United Kingdom) | 4,213,078 | 235,911,611 | |
| Aviva PLC | 25,445,772 | 137,884,942 | |
| BAE Systems PLC | 21,845,350 | 144,741,936 | |
| BHP Billiton PLC | 9,699,420 | 145,850,836 | |
| BP PLC | 42,338,108 | 250,290,454 | |
| British American Tobacco PLC (United Kingdom) | 238,206 | 13,652,288 | |
| Bunzl PLC | 4,745,736 | 127,735,092 | |
| Compass Group PLC | 7,716,917 | 139,632,068 | |
| HSBC Holdings PLC sponsored ADR (b) | 6,070,220 | 228,422,379 | |
| Imperial Tobacco Group PLC | 4,012,095 | 194,246,864 | |
| Informa PLC | 14,795,950 | 121,791,383 | |
| ITV PLC | 21,733,785 | 45,356,671 | |
| Lloyds Banking Group PLC | 202,590,500 | 141,473,642 | |
| Micro Focus International PLC | 3,498,500 | 91,681,132 | |
| National Grid PLC | 11,123,852 | 144,696,585 | |
| Rio Tinto PLC | 5,942,384 | 206,648,235 | |
| Royal Dutch Shell PLC Class B (United Kingdom) | 4,881,619 | 125,909,206 | |
| Vodafone Group PLC sponsored ADR | 7,454,966 | 207,546,253 | |
| TOTAL UNITED KINGDOM | 2,703,471,577 | ||
| United States of America - 3.4% | |||
| ConocoPhillips Co. | 2,244,200 | 97,510,490 | |
| Constellation Brands, Inc. Class A (sub. vtg.) | 631,000 | 105,452,720 | |
| Edgewell Personal Care Co. (a) | 527,600 | 39,781,040 | |
| Molson Coors Brewing Co. Class B | 707,100 | 73,404,051 | |
| S&P Global, Inc. | 957,000 | 116,610,451 | |
| TOTAL UNITED STATES OF AMERICA | 432,758,752 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $12,288,492,377) | 12,705,025,451 | ||
| Money Market Funds - 2.2% | |||
| Fidelity Cash Central Fund, 0.41% (c) | 131,352,682 | 131,392,087 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (c)(d) | 159,585,933 | 159,617,850 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $290,998,373) | 291,009,937 | ||
| TOTAL INVESTMENT PORTFOLIO - 101.0% | |||
| (Cost $12,579,490,750) | 12,996,035,388 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | (133,920,764) | ||
| NET ASSETS - 100% | $12,862,114,624 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
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 | $368,412 |
| Fidelity Securities Lending Cash Central Fund | 8,144,484 |
| Total | $8,512,896 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,325,911,065 | $552,785,297 | $773,125,768 | $-- |
| Consumer Staples | 814,106,820 | 705,658,472 | 108,448,348 | -- |
| Energy | 1,058,365,135 | 183,498,636 | 874,866,499 | -- |
| Financials | 3,719,151,712 | 1,769,579,055 | 1,949,572,657 | -- |
| Health Care | 1,399,487,092 | 678,344,510 | 721,142,582 | -- |
| Industrials | 1,474,808,171 | 949,272,642 | 525,535,529 | -- |
| Information Technology | 637,439,070 | 489,685,290 | 147,753,780 | -- |
| Materials | 1,151,527,524 | 678,560,076 | 472,967,448 | -- |
| Real Estate | 117,698,385 | 117,698,385 | -- | -- |
| Telecommunication Services | 572,460,628 | 207,546,253 | 364,914,375 | -- |
| Utilities | 434,069,848 | 289,373,263 | 144,696,585 | -- |
| Money Market Funds | 291,009,938 | 291,009,938 | -- | -- |
| Total Investments in Securities: | $12,996,035,388 | $6,913,011,817 | $6,083,023,571 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $485,823,832 |
| Level 2 to Level 1 | $1,949,436,041 |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series International Value Fund
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $150,721,454) — See accompanying schedule: Unaffiliated issuers (cost $12,288,492,377) | $12,705,025,451 | |
| Fidelity Central Funds (cost $290,998,373) | 291,009,937 | |
| Total Investments (cost $12,579,490,750) | $12,996,035,388 | |
| Foreign currency held at value (cost $80) | 80 | |
| Receivable for investments sold | 35,553,112 | |
| Receivable for fund shares sold | 4,176,758 | |
| Dividends receivable | 48,621,686 | |
| Distributions receivable from Fidelity Central Funds | 62,925 | |
| Prepaid expenses | 32,251 | |
| Other receivables | 325,857 | |
| Total assets | 13,084,808,057 | |
| Liabilities | ||
| Payable for investments purchased | $46,699,582 | |
| Payable for fund shares redeemed | 7,251,610 | |
| Accrued management fee | 7,812,840 | |
| Other affiliated payables | 961,628 | |
| Other payables and accrued expenses | 362,103 | |
| Collateral on securities loaned, at value | 159,605,670 | |
| Total liabilities | 222,693,433 | |
| Net Assets | $12,862,114,624 | |
| Net Assets consist of: | ||
| Paid in capital | $13,003,162,587 | |
| Undistributed net investment income | 300,818,093 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (856,585,334) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 414,719,278 | |
| Net Assets | $12,862,114,624 | |
| Series International Value: | ||
| Net Asset Value, offering price and redemption price per share ($5,774,975,622 ÷ 622,953,993 shares) | $9.27 | |
| Class F: | ||
| Net Asset Value, offering price and redemption price per share ($7,087,139,002 ÷ 762,114,717 shares) | $9.30 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $455,370,555 | |
| Income from Fidelity Central Funds | 8,512,896 | |
| Income before foreign taxes withheld | 463,883,451 | |
| Less foreign taxes withheld | (36,025,844) | |
| Total income | 427,857,607 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $84,508,573 | |
| Performance adjustment | 8,493,367 | |
| Transfer agent fees | 9,172,640 | |
| Accounting and security lending fees | 1,877,051 | |
| Custodian fees and expenses | 920,856 | |
| Independent trustees' fees and expenses | 51,809 | |
| Registration fees | 61,240 | |
| Audit | 69,233 | |
| Legal | 36,488 | |
| Interest | 9,692 | |
| Miscellaneous | 99,293 | |
| Total expenses before reductions | 105,300,242 | |
| Expense reductions | (923,553) | 104,376,689 |
| Net investment income (loss) | 323,480,918 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (494,998,643) | |
| Fidelity Central Funds | 46,225 | |
| Foreign currency transactions | 6,316,690 | |
| Total net realized gain (loss) | (488,635,728) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (310,154,199) | |
| Assets and liabilities in foreign currencies | (3,970,134) | |
| Total change in net unrealized appreciation (depreciation) | (314,124,333) | |
| Net gain (loss) | (802,760,061) | |
| Net increase (decrease) in net assets resulting from operations | $(479,279,143) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $323,480,918 | $274,484,451 |
| Net realized gain (loss) | (488,635,728) | (309,998,752) |
| Change in net unrealized appreciation (depreciation) | (314,124,333) | (7,266,459) |
| Net increase (decrease) in net assets resulting from operations | (479,279,143) | (42,780,760) |
| Distributions to shareholders from net investment income | (256,925,581) | (519,162,017) |
| Distributions to shareholders from net realized gain | – | (371,264,934) |
| Total distributions | (256,925,581) | (890,426,951) |
| Share transactions - net increase (decrease) | 1,605,266,994 | 487,487,592 |
| Total increase (decrease) in net assets | 869,062,270 | (445,720,119) |
| Net Assets | ||
| Beginning of period | 11,993,052,354 | 12,438,772,473 |
| End of period | $12,862,114,624 | $11,993,052,354 |
| Other Information | ||
| Undistributed net investment income end of period | $300,818,093 | $234,573,457 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series International Value Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $9.91 | $10.73 | $11.14 | $9.16 | $8.59 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .24 | .22 | .45B | .26 | .29 |
| Net realized and unrealized gain (loss) | (.68) | (.28) | (.59) | 2.03 | .50 |
| Total from investment operations | (.44) | (.06) | (.14) | 2.29 | .79 |
| Distributions from net investment income | (.20) | (.44) | (.24) | (.26) | (.22) |
| Distributions from net realized gain | – | (.32) | (.04) | (.06) | – |
| Total distributions | (.20) | (.76) | (.27)C | (.31)D | (.22) |
| Net asset value, end of period | $9.27 | $9.91 | $10.73 | $11.14 | $9.16 |
| Total ReturnE | (4.49)% | (.65)% | (1.25)% | 25.78% | 9.56% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .96% | .89% | .82% | .88% | .90% |
| Expenses net of fee waivers, if any | .96% | .89% | .82% | .88% | .90% |
| Expenses net of all reductions | .95% | .88% | .81% | .85% | .87% |
| Net investment income (loss) | 2.58% | 2.12% | 4.05%B | 2.58% | 3.35% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,774,976 | $5,556,957 | $5,971,189 | $5,710,397 | $5,107,633 |
| Portfolio turnover rateH | 45% | 44% | 70% | 80% | 63% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.18 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.46%.
C Total distributions of $.27 per share is comprised of distributions from net investment income of $.237 and distributions from net realized gain of $.036 per share.
D Total distributions of $.31 per share is comprised of distributions from net investment income of $.256 and distributions from net realized gain of $.057 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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 does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series International Value Fund Class F
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $9.94 | $10.76 | $11.18 | $9.19 | $8.62 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .25 | .23 | .47B | .28 | .30 |
| Net realized and unrealized gain (loss) | (.67) | (.27) | (.60) | 2.04 | .51 |
| Total from investment operations | (.42) | (.04) | (.13) | 2.32 | .81 |
| Distributions from net investment income | (.22) | (.46) | (.25) | (.27) | (.24) |
| Distributions from net realized gain | – | (.32) | (.04) | (.06) | – |
| Total distributions | (.22) | (.78) | (.29) | (.33) | (.24) |
| Net asset value, end of period | $9.30 | $9.94 | $10.76 | $11.18 | $9.19 |
| Total ReturnC | (4.30)% | (.46)% | (1.18)% | 26.05% | 9.77% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .79% | .73% | .65% | .69% | .70% |
| Expenses net of fee waivers, if any | .79% | .73% | .65% | .69% | .70% |
| Expenses net of all reductions | .79% | .72% | .64% | .67% | .67% |
| Net investment income (loss) | 2.75% | 2.28% | 4.22%B | 2.76% | 3.55% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $7,087,139 | $6,436,096 | $6,467,583 | $5,601,176 | $4,114,635 |
| Portfolio turnover rateF | 45% | 44% | 70% | 80% | 63% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.18 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.64%.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series International Small Cap Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Series International Small Cap Fund | 0.02% | 9.26% | 8.62% |
| Class F | 0.13% | 9.44% | 8.82% |
A From December 3, 2009
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series International Small Cap Fund, a class of the fund, on December 3, 2009, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Small Cap Index performed over the same period.
| Period Ending Values | ||
|
| $17,712 | Fidelity® Series International Small Cap Fund |
|
| $16,591 | MSCI EAFE Small Cap Index |
Fidelity® Series International Small Cap Fund
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the fiscal year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Jed Weiss: For the year, the fund’s share classes produced flattish returns, significantly lagging the 3.12% gain of the benchmark MSCI EAFE Small Cap Index. The fund’s relative performance was hurt by stock selection in the U.K., coupled with the negative effects on the portfolio of a weaker British pound. In sector terms, stock picking in real estate, especially among U.K. firms, detracted most by far. Here, student housing operator Unite Group, real estate developer Great Portland Estates and homebuilder Bellway all struggled. The fund also was hurt by stock picking in the consumer discretionary, consumer staples and information technology sectors. In contrast, stock picking in health care and industrials added value, as did a beneficial underweighting in the weak-performing financials sector. Among individual stocks, the fund was helped by an out-of-benchmark holding in Fagerhult, a Swedish maker of high-end lighting fixtures. Also adding value was our position in CompuGroup Medical, a German software manufacturer for medical professionals.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® Series International Small Cap Fund
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 28.3% | |
| United Kingdom | 17.4% | |
| United States of America* | 11.3% | |
| Germany | 6.7% | |
| Sweden | 4.0% | |
| Italy | 2.8% | |
| Netherlands | 2.7% | |
| Australia | 2.6% | |
| Spain | 2.3% | |
| Other | 21.9% | |
* 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.
| As of April 30, 2016 | ||
| Japan | 25.9% | |
| United Kingdom | 21.7% | |
| United States of America* | 10.4% | |
| Germany | 6.8% | |
| Italy | 3.7% | |
| Sweden | 3.4% | |
| Netherlands | 2.9% | |
| France | 2.4% | |
| Australia | 2.2% | |
| Other | 20.6% | |
* 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.
Asset Allocation as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 95.2 | 97.6 |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.8 | 2.4 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| USS Co. Ltd. (Japan, Specialty Retail) | 2.2 | 2.0 |
| CompuGroup Medical AG (Germany, Health Care Technology) | 1.8 | 1.6 |
| Spirax-Sarco Engineering PLC (United Kingdom, Machinery) | 1.8 | 1.8 |
| CTS Eventim AG (Germany, Media) | 1.7 | 1.8 |
| Sartorius AG (non-vtg.) (Germany, Health Care Equipment & Supplies) | 1.7 | 1.3 |
| OBIC Co. Ltd. (Japan, IT Services) | 1.5 | 1.6 |
| Nihon Parkerizing Co. Ltd. (Japan, Chemicals) | 1.5 | 1.1 |
| Azbil Corp. (Japan, Electronic Equipment & Components) | 1.4 | 1.3 |
| OSG Corp. (Japan, Machinery) | 1.4 | 1.3 |
| Fagerhult AB (Sweden, Electrical Equipment) | 1.4 | 1.8 |
| 16.4 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Industrials | 20.2 | 18.4 |
| Consumer Discretionary | 17.6 | 21.4 |
| Health Care | 11.3 | 10.4 |
| Information Technology | 11.3 | 11.5 |
| Consumer Staples | 9.9 | 8.9 |
| Real Estate | 7.9 | 0.0 |
| Materials | 7.8 | 7.3 |
| Financials | 7.4 | 18.0 |
| Energy | 1.8 | 1.7 |
| Utilities | 0.0 | 0.0 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity® Series International Small Cap Fund
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 93.4% | |||
| Shares | Value | ||
| Australia - 2.6% | |||
| Austal Ltd. | 1,711,336 | $2,004,792 | |
| Beacon Lighting Group Ltd. | 6,979,670 | 8,999,492 | |
| Credit Corp. Group Ltd. | 79,931 | 1,077,438 | |
| DuluxGroup Ltd. | 4,369,853 | 21,407,508 | |
| Imdex Ltd. (a) | 11,854,005 | 5,410,405 | |
| John Fairfax Holdings Ltd. | 5,184,643 | 3,253,765 | |
| Nanosonics Ltd. (a) | 322,622 | 851,602 | |
| Pact Group Holdings Ltd. | 150,000 | 749,670 | |
| RCG Corp. Ltd. (b) | 16,803,658 | 18,598,600 | |
| SomnoMed Ltd. (a) | 137,914 | 419,645 | |
| TFS Corp. Ltd. (b) | 12,670,705 | 13,494,047 | |
| TOTAL AUSTRALIA | 76,266,964 | ||
| Austria - 1.9% | |||
| Andritz AG | 428,024 | 22,388,989 | |
| Buwog-Gemeinnuetzige Wohnung | 702,695 | 16,982,006 | |
| IMMOFINANZ Immobilien Anlagen AG | 1,414,851 | 3,048,839 | |
| RHI AG | 28,800 | 725,253 | |
| Wienerberger AG | 104,800 | 1,675,619 | |
| Zumtobel AG | 526,218 | 9,239,605 | |
| TOTAL AUSTRIA | 54,060,311 | ||
| Bailiwick of Jersey - 0.4% | |||
| Integrated Diagnostics Holdings PLC | 3,310,832 | 9,104,788 | |
| Regus PLC | 642,400 | 1,957,095 | |
| TOTAL BAILIWICK OF JERSEY | 11,061,883 | ||
| Belgium - 1.3% | |||
| Econocom Group SA | 58,186 | 865,808 | |
| Gimv NV | 140,309 | 7,547,186 | |
| KBC Ancora (a) | 730,073 | 27,697,685 | |
| Van de Velde | 7,951 | 559,740 | |
| TOTAL BELGIUM | 36,670,419 | ||
| Bermuda - 0.5% | |||
| APT Satellite Holdings Ltd. | 625,000 | 410,996 | |
| BW Offshore Ltd. (a) | 12,000,000 | 493,806 | |
| Vostok New Ventures Ltd. SDR (a) | 1,970,942 | 14,784,002 | |
| TOTAL BERMUDA | 15,688,804 | ||
| Brazil - 0.0% | |||
| Magnesita Refratarios SA (a) | 62,400 | 442,977 | |
| Canada - 2.0% | |||
| Cara Operations Ltd. | 595,300 | 11,796,820 | |
| McCoy Global, Inc. (a) | 1,111,450 | 1,450,114 | |
| New Look Vision Group, Inc. | 523,300 | 10,994,255 | |
| Pason Systems, Inc. | 1,175,900 | 13,369,474 | |
| ShawCor Ltd. Class A | 350,300 | 8,762,070 | |
| Tesco Corp. | 1,068,193 | 7,317,122 | |
| Total Energy Services, Inc. | 71,900 | 680,780 | |
| Whitecap Resources, Inc. (b) | 200,000 | 1,598,449 | |
| ZCL Composites, Inc. | 200,000 | 1,743,085 | |
| TOTAL CANADA | 57,712,169 | ||
| Cayman Islands - 0.8% | |||
| 58.com, Inc. ADR (a) | 221,400 | 9,265,590 | |
| SITC International Holdings Co. Ltd. | 3,635,000 | 2,151,317 | |
| Value Partners Group Ltd. | 11,205,000 | 10,720,207 | |
| TOTAL CAYMAN ISLANDS | 22,137,114 | ||
| Denmark - 2.2% | |||
| Jyske Bank A/S (Reg.) | 531,719 | 24,130,522 | |
| Royal Unibrew A/S | 31,600 | 1,478,379 | |
| Scandinavian Tobacco Group A/S | 883,866 | 15,301,143 | |
| Spar Nord Bank A/S | 2,166,062 | 21,737,982 | |
| TOTAL DENMARK | 62,648,026 | ||
| Finland - 0.7% | |||
| Olvi PLC (A Shares) | 76,250 | 2,309,378 | |
| Oriola-KD Oyj | 104,300 | 488,895 | |
| Tikkurila Oyj | 972,630 | 18,738,216 | |
| TOTAL FINLAND | 21,536,489 | ||
| France - 2.3% | |||
| Elis SA | 1,055,000 | 17,534,032 | |
| Ipsen SA | 13,300 | 919,221 | |
| Laurent-Perrier Group SA | 126,224 | 9,699,368 | |
| Parrot SA (a)(b) | 310,018 | 2,756,610 | |
| Rubis | 8,900 | 811,690 | |
| Somfy SA | 2,200 | 917,719 | |
| Vetoquinol SA | 286,927 | 14,428,964 | |
| Virbac SA (a) | 118,600 | 18,878,007 | |
| TOTAL FRANCE | 65,945,611 | ||
| Germany - 5.0% | |||
| alstria office REIT-AG | 231,129 | 2,982,500 | |
| CompuGroup Medical AG | 1,189,170 | 52,647,241 | |
| CTS Eventim AG | 1,405,124 | 50,485,203 | |
| EDAG Engineering Group AG | 45,000 | 740,981 | |
| Fielmann AG | 296,890 | 20,591,057 | |
| MLP AG | 730,646 | 2,967,647 | |
| Nexus AG | 519,508 | 10,681,530 | |
| Scout24 Holding GmbH (a) | 68,000 | 2,344,662 | |
| SMA Solar Technology AG (b) | 103,733 | 2,661,210 | |
| TOTAL GERMANY | 146,102,031 | ||
| Greece - 0.1% | |||
| Motor Oil (HELLAS) Corinth Refineries SA | 150,000 | 1,796,468 | |
| Mytilineos Holdings SA | 290,800 | 1,663,166 | |
| TOTAL GREECE | 3,459,634 | ||
| India - 0.7% | |||
| Jyothy Laboratories Ltd. (a) | 3,501,337 | 18,817,493 | |
| Torrent Pharmaceuticals Ltd. | 31,832 | 675,361 | |
| TOTAL INDIA | 19,492,854 | ||
| Ireland - 1.7% | |||
| FBD Holdings PLC (a) | 1,298,400 | 8,694,444 | |
| James Hardie Industries PLC CDI | 2,541,486 | 37,950,844 | |
| United Drug PLC (United Kingdom) | 166,200 | 1,329,407 | |
| TOTAL IRELAND | 47,974,695 | ||
| Isle of Man - 0.6% | |||
| Playtech Ltd. | 1,630,433 | 18,519,632 | |
| Israel - 2.0% | |||
| Azrieli Group | 364,179 | 15,511,521 | |
| Ituran Location & Control Ltd. | 918,362 | 24,428,429 | |
| Sarine Technologies Ltd. | 523,100 | 612,868 | |
| Strauss Group Ltd. | 1,169,555 | 18,413,868 | |
| TOTAL ISRAEL | 58,966,686 | ||
| Italy - 2.8% | |||
| Astm SpA | 67,100 | 724,437 | |
| Azimut Holding SpA | 1,586,764 | 25,466,142 | |
| Beni Stabili SpA SIIQ | 23,183,420 | 13,526,462 | |
| Cerved Information Solutions SpA | 336,105 | 2,706,316 | |
| Interpump Group SpA | 2,418,666 | 38,817,425 | |
| TOTAL ITALY | 81,240,782 | ||
| Japan - 28.3% | |||
| Aeon Delight Co. Ltd. | 43,000 | 1,273,148 | |
| Ain Holdings, Inc. | 19,300 | 1,304,825 | |
| Aoki Super Co. Ltd. | 100,000 | 1,249,166 | |
| Arcland Service Holdings Co. Ltd. | 47,500 | 1,410,914 | |
| Artnature, Inc. (c) | 1,966,400 | 12,038,036 | |
| Asahi Co. Ltd. | 1,001,600 | 12,110,506 | |
| Asante, Inc. | 55,100 | 835,931 | |
| Autobacs Seven Co. Ltd. | 928,700 | 13,230,455 | |
| Azbil Corp. | 1,408,200 | 41,895,528 | |
| Broadleaf Co. Ltd. | 306,800 | 3,455,047 | |
| Central Automotive Products Ltd. | 119,000 | 1,030,342 | |
| Chugoku Marine Paints Ltd. | 200,000 | 1,458,949 | |
| Coca-Cola Central Japan Co. Ltd. | 635,200 | 14,028,065 | |
| Daiichikosho Co. Ltd. | 570,900 | 24,851,325 | |
| Daikokutenbussan Co. Ltd. | 569,400 | 26,794,975 | |
| Funai Soken Holdings, Inc. | 534,000 | 8,269,438 | |
| GCA Savvian Group Corp. | 1,848,987 | 13,840,515 | |
| Glory Ltd. | 14,900 | 493,730 | |
| GMO Internet, Inc. | 263,300 | 3,527,572 | |
| Goldcrest Co. Ltd. | 1,454,110 | 26,497,609 | |
| Iwatsuka Confectionary Co. Ltd. | 158,600 | 5,270,535 | |
| Japan Digital Laboratory Co. | 1,319,900 | 20,565,620 | |
| Kaken Pharmaceutical Co. Ltd. | 16,600 | 1,047,888 | |
| Kamigumi Co. Ltd. | 213,000 | 1,821,884 | |
| Kobayashi Pharmaceutical Co. Ltd. | 621,600 | 32,541,089 | |
| Konoike Transport Co. Ltd. | 148,200 | 1,965,731 | |
| Koshidaka Holdings Co. Ltd. | 384,200 | 6,257,401 | |
| Kusuri No Aoki Co. Ltd. | 156,700 | 8,009,078 | |
| Lasertec Corp. | 942,200 | 18,310,323 | |
| Leopalace21 Corp. | 511,600 | 3,336,840 | |
| Mandom Corp. | 38,800 | 1,812,911 | |
| Medikit Co. Ltd. | 294,400 | 12,787,184 | |
| Meiko Network Japan Co. Ltd. | 129,400 | 1,220,336 | |
| Miraca Holdings, Inc. | 14,300 | 692,705 | |
| Miraial Co. Ltd. | 231,300 | 1,647,574 | |
| Mirait Holdings Corp. | 151,300 | 1,344,632 | |
| Misumi Group, Inc. | 1,180,900 | 21,586,586 | |
| Mitsuboshi Belting Ltd. | 125,000 | 1,081,100 | |
| Monex Group, Inc. | 1,255,148 | 2,884,435 | |
| Nagaileben Co. Ltd. | 1,397,800 | 30,763,063 | |
| Nakanishi, Inc. | 25,600 | 916,640 | |
| Nakano Refrigerators Co. Ltd. | 20,000 | 539,716 | |
| ND Software Co. Ltd. | 222,536 | 1,799,471 | |
| Nihon Parkerizing Co. Ltd. | 3,133,800 | 43,329,932 | |
| Nippon Kanzai Co. Ltd. | 6,600 | 96,417 | |
| Nitto Kohki Co. Ltd. | 61,600 | 1,425,605 | |
| NOF Corp. | 250,000 | 2,724,802 | |
| NS Tool Co. Ltd. | 2,000 | 48,822 | |
| OBIC Co. Ltd. | 858,400 | 44,692,133 | |
| OSG Corp. (b) | 1,901,500 | 40,597,487 | |
| Paramount Bed Holdings Co. Ltd. | 552,460 | 21,072,185 | |
| ProNexus, Inc. | 1,241,000 | 13,123,572 | |
| S Foods, Inc. | 63,600 | 1,704,167 | |
| Sacs Bar Holdings, Inc. | 163,100 | 1,746,556 | |
| Sakai Moving Service Co. Ltd. | 13,100 | 283,935 | |
| San-A Co. Ltd. | 62,700 | 3,419,891 | |
| San-Ai Oil Co. Ltd. | 1,783,000 | 12,598,484 | |
| Sekisui Jushi Corp. | 103,300 | 1,704,100 | |
| Seven Bank Ltd. | 2,231,500 | 6,873,029 | |
| Shinko Plantech Co. Ltd. | 138,200 | 1,026,583 | |
| Shinsei Bank Ltd. | 1,658,000 | 2,687,709 | |
| Ship Healthcare Holdings, Inc. | 20,600 | 604,034 | |
| SHO-BOND Holdings Co. Ltd. | 778,800 | 37,651,530 | |
| Shoei Co. Ltd. (c) | 733,100 | 13,379,931 | |
| SK Kaken Co. Ltd. | 189,000 | 19,698,388 | |
| Software Service, Inc. | 171,300 | 6,942,166 | |
| Techno Medica Co. Ltd. | 283,000 | 4,838,552 | |
| The Monogatari Corp. | 199,000 | 9,155,860 | |
| TKC Corp. | 684,400 | 20,263,774 | |
| Tocalo Co. Ltd. | 458,400 | 10,307,115 | |
| Toshiba Plant Systems & Services Corp. | 89,000 | 1,438,495 | |
| Tsuruha Holdings, Inc. | 22,770 | 2,631,567 | |
| Tsutsumi Jewelry Co. Ltd. | 389,100 | 6,173,953 | |
| USS Co. Ltd. | 3,712,900 | 62,949,710 | |
| Welcia Holdings Co. Ltd. | 182,500 | 12,477,591 | |
| Workman Co. Ltd. | 525,700 | 16,692,867 | |
| Yamato Kogyo Co. Ltd. | 270,100 | 7,615,960 | |
| Yuasa Trading Co. Ltd. | 63,800 | 1,532,490 | |
| Yusen Logistics Co. Ltd. | 161,500 | 1,647,802 | |
| TOTAL JAPAN | 822,956,012 | ||
| Korea (South) - 1.6% | |||
| BGFretail Co. Ltd. | 255,761 | 38,909,044 | |
| iMarketKorea, Inc. | 86,705 | 970,334 | |
| Leeno Industrial, Inc. | 193,525 | 7,275,662 | |
| TOTAL KOREA (SOUTH) | 47,155,040 | ||
| Marshall Islands - 0.0% | |||
| StealthGas, Inc. (a) | 62,954 | 195,157 | |
| Mexico - 0.5% | |||
| Consorcio ARA S.A.B. de CV | 39,884,127 | 15,024,337 | |
| Netherlands - 2.7% | |||
| Aalberts Industries NV | 984,900 | 31,110,781 | |
| Arcadis NV | 64,918 | 855,165 | |
| BinckBank NV | 558,952 | 3,317,065 | |
| Heijmans NV (Certificaten Van Aandelen) (a) | 729,571 | 6,997,346 | |
| Takeaway.com Holding BV (d) | 174,251 | 4,098,260 | |
| Van Lanschot NV unit | 157,645 | 3,234,394 | |
| VastNed Retail NV | 706,428 | 27,149,602 | |
| TOTAL NETHERLANDS | 76,762,613 | ||
| New Zealand - 0.1% | |||
| EBOS Group Ltd. | 95,063 | 1,159,051 | |
| Trade Maine Group Ltd. | 479,251 | 1,665,582 | |
| TOTAL NEW ZEALAND | 2,824,633 | ||
| Norway - 0.6% | |||
| ABG Sundal Collier ASA | 3,103,049 | 1,836,513 | |
| Borregaard ASA | 260,000 | 2,548,912 | |
| Kongsberg Gruppen ASA | 808,848 | 11,551,685 | |
| Spectrum ASA (a) | 400,000 | 1,258,722 | |
| TOTAL NORWAY | 17,195,832 | ||
| Philippines - 0.5% | |||
| Jollibee Food Corp. | 2,970,820 | 14,599,679 | |
| Singapore - 0.1% | |||
| Boustead Singapore Ltd. | 2,851,300 | 1,834,259 | |
| Hour Glass Ltd. | 1,558,300 | 756,049 | |
| TOTAL SINGAPORE | 2,590,308 | ||
| South Africa - 0.7% | |||
| Clicks Group Ltd. | 2,170,481 | 20,201,751 | |
| Spain - 2.3% | |||
| Baron de Ley SA (a) | 20,300 | 2,297,514 | |
| Hispania Activos Inmobiliarios SA | 1,078,350 | 13,281,773 | |
| Merlin Properties Socimi SA | 1,540,500 | 17,316,699 | |
| Prosegur Compania de Seguridad SA (Reg.) | 4,696,686 | 34,131,310 | |
| TOTAL SPAIN | 67,027,296 | ||
| Sweden - 4.0% | |||
| Addlife AB (a) | 525,700 | 8,119,346 | |
| AddTech AB (B Shares) | 831,060 | 11,823,454 | |
| Fagerhult AB | 1,578,495 | 40,195,729 | |
| Granges AB | 230,000 | 2,234,518 | |
| Intrum Justitia AB | 441,603 | 13,616,518 | |
| Loomis AB (B Shares) | 532,000 | 15,137,481 | |
| Mekonomen AB | 67,200 | 1,194,134 | |
| Saab AB (B Shares) | 657,300 | 23,287,479 | |
| Swedish Orphan Biovitrum AB (a) | 86,400 | 885,317 | |
| TOTAL SWEDEN | 116,493,976 | ||
| Switzerland - 0.2% | |||
| Daetwyler Holdings AG | 6,945 | 950,283 | |
| Tecan Group AG | 8,555 | 1,409,191 | |
| Vontobel Holdings AG | 61,576 | 3,014,863 | |
| TOTAL SWITZERLAND | 5,374,337 | ||
| Taiwan - 0.3% | |||
| Addcn Technology Co. Ltd. | 1,441,570 | 9,190,275 | |
| United Kingdom - 17.4% | |||
| AA PLC | 3,558,798 | 11,155,636 | |
| Alliance Pharma PLC | 12,963,196 | 7,179,796 | |
| BCA Marketplace PLC | 222,700 | 491,334 | |
| Bellway PLC | 911,100 | 26,385,310 | |
| Berendsen PLC | 3,083,809 | 36,462,464 | |
| Britvic PLC | 1,322,212 | 8,982,051 | |
| Cineworld Group PLC | 114,500 | 757,500 | |
| Countrywide PLC | 1,185,069 | 2,613,845 | |
| Dechra Pharmaceuticals PLC | 1,665,163 | 27,413,246 | |
| Dignity PLC | 14,807 | 480,824 | |
| Domino's Pizza UK & IRL PLC | 180,900 | 753,055 | |
| Elementis PLC | 8,683,382 | 25,316,991 | |
| Great Portland Estates PLC | 2,529,000 | 18,387,246 | |
| H&T Group PLC | 1,482,680 | 4,999,775 | |
| Hill & Smith Holdings PLC | 82,563 | 1,014,613 | |
| Hilton Food Group PLC | 911,038 | 6,751,994 | |
| Howden Joinery Group PLC | 4,745,900 | 21,777,872 | |
| Informa PLC | 4,550,785 | 37,459,332 | |
| InterContinental Hotel Group PLC ADR | 454,621 | 17,934,798 | |
| ITE Group PLC | 7,089,572 | 12,474,102 | |
| John David Group PLC | 33,800 | 628,429 | |
| JUST EAT Ltd. (a) | 1,643,325 | 11,304,236 | |
| LivaNova PLC (a) | 18,300 | 1,037,244 | |
| Luxfer Holdings PLC sponsored ADR | 225,000 | 2,112,750 | |
| Mears Group PLC | 445,312 | 2,454,141 | |
| Mitie Group PLC | 658,691 | 1,697,937 | |
| PayPoint PLC | 94,400 | 1,242,115 | |
| Polypipe Group PLC | 287,800 | 887,713 | |
| Rightmove PLC | 469,900 | 21,482,136 | |
| Shaftesbury PLC | 2,722,755 | 30,560,420 | |
| Sinclair Pharma PLC (a) | 1,678,024 | 595,631 | |
| Spectris PLC | 1,555,416 | 39,009,460 | |
| Spirax-Sarco Engineering PLC | 962,628 | 51,984,685 | |
| Ted Baker PLC | 396,867 | 12,022,689 | |
| Topps Tiles PLC | 8,606,450 | 9,638,880 | |
| Tullett Prebon PLC | 665,016 | 2,889,628 | |
| Ultra Electronics Holdings PLC | 994,010 | 22,605,696 | |
| Unite Group PLC | 3,468,563 | 23,498,959 | |
| Zoopla Property Group PLC | 246,125 | 917,026 | |
| TOTAL UNITED KINGDOM | 505,361,559 | ||
| United States of America - 6.5% | |||
| Autoliv, Inc. | 146,100 | 14,139,558 | |
| Broadridge Financial Solutions, Inc. | 111,895 | 7,235,131 | |
| China Biologic Products, Inc. (a) | 241,308 | 28,500,888 | |
| Compass Minerals International, Inc. | 25,000 | 1,796,250 | |
| Domino's Pizza, Inc. | 120,800 | 20,444,192 | |
| Energizer Holdings, Inc. | 149,232 | 6,940,780 | |
| Kennedy-Wilson Holdings, Inc. | 723,088 | 14,895,613 | |
| Martin Marietta Materials, Inc. | 85,080 | 15,772,130 | |
| Mohawk Industries, Inc. (a) | 96,162 | 17,722,657 | |
| PriceSmart, Inc. | 324,678 | 29,529,464 | |
| ResMed, Inc. | 214,700 | 12,832,619 | |
| Resources Connection, Inc. | 69,500 | 1,032,075 | |
| SS&C Technologies Holdings, Inc. | 570,176 | 18,205,720 | |
| Utah Medical Products, Inc. | 11,550 | 717,833 | |
| TOTAL UNITED STATES OF AMERICA | 189,764,910 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $2,186,985,887) | 2,712,644,796 | ||
| Nonconvertible Preferred Stocks - 1.8% | |||
| Brazil - 0.1% | |||
| Banco ABC Brasil SA | 586,254 | 2,824,745 | |
| Germany - 1.7% | |||
| Sartorius AG (non-vtg.) | 613,172 | 48,174,452 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
| (Cost $18,897,508) | 50,999,197 | ||
| Money Market Funds - 5.6% | |||
| Fidelity Cash Central Fund, 0.41% (e) | 129,874,894 | 129,913,856 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (e)(f) | 34,116,306 | 34,123,129 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $163,992,143) | 164,036,985 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.8% | |||
| (Cost $2,369,875,538) | 2,927,680,978 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.8)% | (23,330,436) | ||
| NET ASSETS - 100% | $2,904,350,542 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) 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 $4,098,260 or 0.1% of net assets.
(e) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
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 | $505,502 |
| Fidelity Securities Lending Cash Central Fund | 441,737 |
| Total | $947,239 |
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, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| Artnature, Inc. | $17,350,955 | $3,671,344 | $1,717,041 | $475,152 | $12,038,036 |
| Cara Operations Ltd. | 15,755,782 | 1,659,870 | 1,562,118 | 171,015 | -- |
| Fagerhult AB | 37,911,673 | -- | 15,862,879 | 787,066 | -- |
| Shoei Co. Ltd. | 12,037,779 | 597,793 | -- | 512,542 | 13,379,931 |
| Total | $83,056,189 | $5,929,007 | $19,142,038 | $1,945,775 | $25,417,967 |
Investment Valuation
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.
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $789,024,754 |
See accompanying notes which are an integral part of the financial statements.
Fidelity® Series International Small Cap Fund
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $32,431,551) — See accompanying schedule: Unaffiliated issuers (cost $2,178,019,219) | $2,738,226,026 | |
| Fidelity Central Funds (cost $163,992,143) | 164,036,985 | |
| Other affiliated issuers (cost $27,864,176) | 25,417,967 | |
| Total Investments (cost $2,369,875,538) | $2,927,680,978 | |
| Cash | 134,010 | |
| Receivable for investments sold | 12,842,371 | |
| Receivable for fund shares sold | 954,949 | |
| Dividends receivable | 9,248,308 | |
| Distributions receivable from Fidelity Central Funds | 113,881 | |
| Prepaid expenses | 7,454 | |
| Other receivables | 23,322 | |
| Total assets | 2,951,005,273 | |
| Liabilities | ||
| Payable for investments purchased | $8,410,158 | |
| Payable for fund shares redeemed | 1,659,281 | |
| Accrued management fee | 2,040,302 | |
| Other affiliated payables | 288,678 | |
| Other payables and accrued expenses | 141,928 | |
| Collateral on securities loaned, at value | 34,114,384 | |
| Total liabilities | 46,654,731 | |
| Net Assets | $2,904,350,542 | |
| Net Assets consist of: | ||
| Paid in capital | $2,262,443,333 | |
| Undistributed net investment income | 30,407,595 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 53,976,291 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 557,523,323 | |
| Net Assets | $2,904,350,542 | |
| Series International Small Cap: | ||
| Net Asset Value, offering price and redemption price per share ($1,303,649,779 ÷ 86,805,225 shares) | $15.02 | |
| Class F: | ||
| Net Asset Value, offering price and redemption price per share ($1,600,700,763 ÷ 106,268,144 shares) | $15.06 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends (including $1,945,775 earned from other affiliated issuers) | $62,497,600 | |
| Income from Fidelity Central Funds | 947,239 | |
| Income before foreign taxes withheld | 63,444,839 | |
| Less foreign taxes withheld | (5,542,355) | |
| Total income | 57,902,484 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $23,756,227 | |
| Performance adjustment | (416,781) | |
| Transfer agent fees | 2,116,959 | |
| Accounting and security lending fees | 1,218,361 | |
| Custodian fees and expenses | 325,757 | |
| Independent trustees' fees and expenses | 11,973 | |
| Registration fees | 10,971 | |
| Audit | 76,630 | |
| Legal | 8,657 | |
| Miscellaneous | 22,931 | |
| Total expenses before reductions | 27,131,685 | |
| Expense reductions | (95,171) | 27,036,514 |
| Net investment income (loss) | 30,865,970 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 78,662,081 | |
| Fidelity Central Funds | 10,233 | |
| Other affiliated issuers | 7,214,957 | |
| Foreign currency transactions | 130,027 | |
| Total net realized gain (loss) | 86,017,298 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (99,844,593) | |
| Assets and liabilities in foreign currencies | (242,560) | |
| Total change in net unrealized appreciation (depreciation) | (100,087,153) | |
| Net gain (loss) | (14,069,855) | |
| Net increase (decrease) in net assets resulting from operations | $16,796,115 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $30,865,970 | $27,947,392 |
| Net realized gain (loss) | 86,017,298 | 147,303,806 |
| Change in net unrealized appreciation (depreciation) | (100,087,153) | 59,667,213 |
| Net increase (decrease) in net assets resulting from operations | 16,796,115 | 234,918,411 |
| Distributions to shareholders from net investment income | (27,359,738) | (28,569,877) |
| Distributions to shareholders from net realized gain | (162,604,163) | (36,994,296) |
| Total distributions | (189,963,901) | (65,564,173) |
| Share transactions - net increase (decrease) | 324,362,862 | (195,735,081) |
| Total increase (decrease) in net assets | 151,195,076 | (26,380,843) |
| Net Assets | ||
| Beginning of period | 2,753,155,466 | 2,779,536,309 |
| End of period | $2,904,350,542 | $2,753,155,466 |
| Other Information | ||
| Undistributed net investment income end of period | $30,407,595 | $26,891,199 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series International Small Cap Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $16.11 | $15.21 | $15.75 | $12.44 | $11.22 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15 | .14 | .14 | .15 | .15 |
| Net realized and unrealized gain (loss) | (.13) | 1.10 | (.11) | 3.29 | 1.19 |
| Total from investment operations | .02 | 1.24 | .03 | 3.44 | 1.34 |
| Distributions from net investment income | (.15) | (.14) | (.13) | (.12) | (.11) |
| Distributions from net realized gain | (.96) | (.20) | (.44) | (.01) | (.01) |
| Total distributions | (1.11) | (.34) | (.57) | (.13) | (.12) |
| Net asset value, end of period | $15.02 | $16.11 | $15.21 | $15.75 | $12.44 |
| Total ReturnB | .02% | 8.36% | .21% | 27.95% | 12.07% |
| Ratios to Average Net AssetsC,D | |||||
| Expenses before reductions | 1.06% | 1.10% | 1.18% | 1.23% | 1.22% |
| Expenses net of fee waivers, if any | 1.06% | 1.10% | 1.18% | 1.23% | 1.22% |
| Expenses net of all reductions | 1.05% | 1.10% | 1.18% | 1.22% | 1.22% |
| Net investment income (loss) | 1.01% | .89% | .86% | 1.05% | 1.27% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,303,650 | $1,276,570 | $1,330,809 | $1,163,381 | $1,040,585 |
| Portfolio turnover rateE | 21% | 16% | 18% | 29% | 25% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C 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.
D 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.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Series International Small Cap Fund Class F
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $16.16 | $15.27 | $15.79 | $12.48 | $11.26 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .18 | .17 | .16 | .17 | .17 |
| Net realized and unrealized gain (loss) | (.14) | 1.10 | (.09) | 3.30 | 1.19 |
| Total from investment operations | .04 | 1.27 | .07 | 3.47 | 1.36 |
| Distributions from net investment income | (.18) | (.17) | (.15) | (.15) | (.13) |
| Distributions from net realized gain | (.96) | (.20) | (.44) | (.01) | (.01) |
| Total distributions | (1.14) | (.38)B | (.59) | (.16) | (.14) |
| Net asset value, end of period | $15.06 | $16.16 | $15.27 | $15.79 | $12.48 |
| Total ReturnC | .13% | 8.49% | .47% | 28.14% | 12.25% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .89% | .94% | 1.01% | 1.04% | 1.02% |
| Expenses net of fee waivers, if any | .89% | .93% | 1.01% | 1.04% | 1.02% |
| Expenses net of all reductions | .89% | .93% | 1.01% | 1.03% | 1.01% |
| Net investment income (loss) | 1.18% | 1.06% | 1.04% | 1.24% | 1.47% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,600,701 | $1,476,586 | $1,448,727 | $1,141,808 | $836,468 |
| Portfolio turnover rateF | 21% | 16% | 18% | 29% | 25% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.38 per share is comprised of distributions from net investment income of $.172 and distributions from net realized gain of $.203 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity Series Emerging Markets Fund, Fidelity Series International Growth Fund, Fidelity Series International Small Cap Fund and Fidelity Series International Value Fund (the Funds) are funds of Fidelity Investment Trust (the Trust). 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. Each Fund is authorized to issue an unlimited number of shares. Shares of the Funds are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. Fidelity Series Emerging Markets Fund offers Series Emerging Markets shares and Class F shares. Fidelity Series International Growth Fund offers Series International Growth shares and Class F shares. Fidelity Series International Small Cap Fund offers Series International Small Cap shares and Class F shares. Fidelity Series International Value Fund offers Series International Value shares and Class F shares. All classes have equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. The Funds' 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 Funds invest 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 Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, 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 Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fair Value Committee (the Committee) established by each Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each 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 each 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.
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. 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 October 31, 2016, including information on transfers between Levels 1 and 2 is included at the end of each applicable Fund's Schedule of Investments.
Foreign Currency. The Funds 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 Funds' 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 Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 Funds determine the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Funds 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 is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each 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 each 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, each 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. As of October 31, 2016, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each 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 each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Fidelity Series Emerging Markets Fund is subject to a tax imposed on capital gains by certain countries in which they invest. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on Fidelity Series Emerging Markets Fund's 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), partnerships, 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 for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities | |
| Fidelity Series Emerging Markets Fund | $13,758,215,609 | $2,666,052,169 | $(832,220,478) | $1,833,831,691 |
| Fidelity Series International Growth Fund | 10,383,401,300 | 2,671,095,739 | (450,146,675) | 2,220,949,064 |
| Fidelity Series International Small Cap Fund | 2,400,949,343 | 728,272,270 | (201,540,635) | 526,731,635 |
| Fidelity Series International Value Fund | 12,705,299,105 | 1,186,899,810 | (896,163,527) | 290,736,283 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed ordinary income | Undistributed long-term capital gain | Capital loss carryforward | Net unrealized appreciation (depreciation) on securities and other investments | |
| Fidelity Series Emerging Markets Fund | $184,043,365 | $– | $(1,327,652,909) | $1,833,758,627 |
| Fidelity Series International Growth Fund | 157,866,823 | 166,330,223 | – | 2,219,460,428 |
| Fidelity Series International Small Cap Fund | 34,317,405 | 81,141,273 | – | 526,448,532 |
| Fidelity Series International Value Fund | 320,658,144 | – | (750,626,063) | 288,919,957 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are 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 fiscal period end and is subject to adjustment.
| No expiration | ||||
| Short-term | Long-term | Total no expiration | Total capital loss carryfoward | |
| Fidelity Series Emerging Markets Fund | $(1,027,032,217) | $(300,620,692) | $(1,327,652,909) | $(1,327,652,909) |
| Fidelity Series Inter- national Value Fund | (478,490,553) | (272,135,510) | (750,626,063) | (750,626,063) |
The tax character of distributions paid was as follows:
| October 31, 2016 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Series Emerging Markets Fund | $158,339,864 | $– | $158,339,864 |
| Fidelity Series International Growth Fund | 154,772,244 | 258,747,183 | 413,519,427 |
| Fidelity Series International Small Cap Fund | 43,062,944 | 146,900,957 | 189,963,901 |
| Fidelity Series International Value Fund | 256,925,581 | – | 256,925,581 |
| October 31, 2015 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Series Emerging Markets Fund | $89,825,646 | $– | $89,825,646 |
| Fidelity Series International Growth Fund | 177,438,330 | 186,668,096 | 364,106,426 |
| Fidelity Series International Small Cap Fund | 31,850,159 | 33,714,014 | 65,564,173 |
| Fidelity Series International Value Fund | 519,162,017 | 371,264,934 | 890,426,951 |
Restricted Securities. The Funds 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 each applicable Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Funds' investment objective allows the Funds 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 Funds 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 Funds may not achieve their objectives.
The Funds' use of derivatives increased or decreased their 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 Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Funds 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 Funds. 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 Funds used futures contracts to manage their 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. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is included in the Statement of Operations.
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.
During the period the Fidelity Series Emerging Markets Fund recognized net realized gain (loss) of $21,886,546 and a change in net unrealized appreciation (depreciation) of $(5,267,279) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Series Emerging Markets Fund | 8,343,883,199 | 5,776,320,197 |
| Fidelity Series International Growth Fund | 3,791,647,434 | 3,051,379,178 |
| Fidelity Series International Small Cap Fund | 713,730,456 | 565,332,779 |
| Fidelity Series International Value Fund | 7,150,718,189 | 5,485,806,874 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and an annualized group fee rate. The individual fund fee rate is applied to each Fund's average net assets. 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 for Fidelity Series International Growth Fund, Fidelity Series International Small Cap Fund and Fidelity Series International Value Fund is subject to a performance adjustment (up to a maximum of +/- .20% of each applicable Fund's average net assets over a 36 month performance period.) The upward or downward adjustment to the management fee is based on relative investment performance of Series International Growth, Series International Small Cap and Series International Value as compared to its benchmark index over the same 36 month performance period. For the reporting period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets, including the performance adjustment, if applicable, was as follows. 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 asset for the reporting and performance periods.
| Individual Rate | Group Rate | Total | |
| Fidelity Series Emerging Markets Fund | .55% | .25% | .80% |
| Fidelity Series International Growth Fund | .45% | .25% | .75% |
| Fidelity Series International Small Cap Fund | .60% | .25% | .83% |
| Fidelity Series International Value Fund | .45% | .25% | .77% |
| Performance Benchmark | |
| Fidelity Series International Growth Fund | MSCI EAFE Growth Index |
| Fidelity Series International Small Cap Fund | MSCI EAFE Small Cap Index |
| Fidelity Series International Value Fund | MSCI EAFE Value Index |
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 Funds. 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 each Fund, except for Class F. FIIOC receives no fees for providing transfer agency services to Class F. 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-Level Average Net Assets |
|
| Fidelity Series Emerging Markets Fund | ||
| Series Emerging Markets | $10,176,167 | .16 |
| Fidelity Series International Growth Fund | ||
| Series International Growth | $9,187,781 | .17 |
| Fidelity Series International Small Cap Fund | ||
| Series International Small Cap | $2,116,959 | .17 |
| Fidelity Series International Value Fund | ||
| Series International Value | $9,172,640 | .17 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains each 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. Certain Funds placed a portion of their 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 as follows:
| Amount | |
| Fidelity Series Emerging Markets Fund | $69,868 |
| Fidelity Series International Growth Fund | 7,494 |
| Fidelity Series International Small Cap Fund | 1,977 |
| Fidelity Series International Value Fund | 9,741 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, 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. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
| Fidelity Series International Value Fund | Borrower | $37,218,312 | .59% | $9,692 |
Interfund Trades. The Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Funds for certain losses as follows:
| Amount | |
| Fidelity Series Emerging Markets Fund | $7,794 |
| Fidelity Series International Growth Fund | 97,747 |
| Fidelity Series International Small Cap Fund | 63,434 |
| Fidelity Series International Value Fund | 92,918 |
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Fidelity Series Emerging Markets Fund | $34,414 |
| Fidelity Series International Growth Fund | 30,982 |
| Fidelity Series International Small Cap Fund | 7,138 |
| Fidelity Series International Value Fund | 30,887 |
During the period, the Funds did not borrow on this line of credit.
8. Security Lending.
Certain Funds lend 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 Funds. On the settlement date of the loan, each applicable 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 Funds and any additional required collateral is delivered to the Funds on the next business day. The Funds or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds may apply collateral received from the borrower against the obligation. The Funds 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 each applicable 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 on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds. FCM security lending activity was as follows:
| Total Security Lending Income | Security Lending Income From Securities Loaned to FCM | Value of Securities Loaned to FCM at Period End | |
| Fidelity Series Emerging Markets Fund | $875,958 | $16,059 | $– |
| Fidelity Series International Growth Fund | $1,858,978 | $155,319 | $– |
| Fidelity Series International Small Cap Fund | $441,737 | $1,925 | $181,889 |
| Fidelity Series International Value Fund | $8,144,484 | $926 | $– |
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of Certain Funds include an amount in addition to trade execution, which may be rebated back to the Funds to offset certain expenses. In addition, through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage Service reduction | Custody expense reduction |
|
| Fidelity Series Emerging Markets Fund | $764,951 | $1,613 |
| Fidelity Series International Growth Fund | 403,810 | 251 |
| Fidelity Series International Small Cap Fund | 75,584 | – |
| Fidelity Series International Value Fund | 839,517 | – |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses as follows:
| Fund-Level Amount | |
| Fidelity Series Emerging Markets Fund | $86,606 |
| Fidelity Series International Growth Fund | 84,309 |
| Fidelity Series International Small Cap Fund | 19,587 |
| Fidelity Series International Value Fund | 84,036 |
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 |
|
| Fidelity Series Emerging Markets Fund | ||
| From net investment income | ||
| Series Emerging Markets | $69,080,205 | $39,027,374 |
| Class F | 89,259,659 | 50,798,272 |
| Total | $158,339,864 | $89,825,646 |
| Fidelity Series International Growth Fund | ||
| From net investment income | ||
| Series International Growth | $60,262,280 | $78,746,368 |
| Class F | 81,155,271 | 98,691,962 |
| Total | $141,417,551 | $177,438,330 |
| From net realized gain | ||
| Series International Growth | $125,932,714 | $88,907,190 |
| Class F | 146,169,162 | 97,760,906 |
| Total | $272,101,876 | $186,668,096 |
| Fidelity Series International Small Cap Fund | ||
| From net investment income | ||
| Series International Small Cap | $11,493,851 | $12,140,821 |
| Class F | 15,865,887 | 16,429,056 |
| Total | $27,359,738 | $28,569,877 |
| From net realized gain | ||
| Series International Small Cap | $75,296,455 | $17,604,190 |
| Class F | 87,307,708 | 19,390,106 |
| Total | $162,604,163 | $36,994,296 |
| Fidelity Series International Value Fund | ||
| From net investment income | ||
| Series International Value | $113,519,073 | $241,458,154 |
| Class F | 143,406,508 | 277,703,863 |
| Total | $256,925,581 | $519,162,017 |
| From net realized gain | ||
| Series International Value | $– | $176,811,463 |
| Class F | – | 194,453,471 |
| Total | $– | $371,264,934 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Fidelity Series Emerging Markets Fund | ||||
| Series Emerging Markets | ||||
| Shares sold | 86,255,737 | 123,959,808 | $1,225,904,043 | $2,044,867,266 |
| Reinvestment of distributions | 4,686,581 | 2,286,314 | 69,080,205 | 39,027,374 |
| Shares redeemed | (38,072,375) | (34,411,277) | (572,922,905) | (566,233,556) |
| Net increase (decrease) | 52,869,943 | 91,834,845 | $722,061,343 | $1,517,661,084 |
| Class F | ||||
| Shares sold | 121,860,800 | 153,928,469 | $1,759,396,538 | $2,538,996,172 |
| Reinvestment of distributions | 6,043,308 | 2,968,923 | 89,259,659 | 50,798,272 |
| Shares redeemed | (38,417,155) | (36,125,669) | (573,269,735) | (608,068,321) |
| Net increase (decrease) | 89,486,953 | 120,771,723 | $1,275,386,462 | $1,981,726,123 |
| Fidelity Series International Growth Fund | ||||
| Series International Growth | ||||
| Shares sold | 71,557,147 | 25,324,796 | $950,043,740 | $359,926,491 |
| Reinvestment of distributions | 13,492,391 | 12,078,787 | 186,194,994 | 167,653,558 |
| Shares redeemed | (54,629,273) | (74,712,848) | (742,386,563) | (1,062,121,684) |
| Net increase (decrease) | 30,420,265 | (37,309,265) | $393,852,171 | $(534,541,635) |
| Class F | ||||
| Shares sold | 111,047,353 | 48,332,641 | $1,484,673,797 | $686,631,779 |
| Reinvestment of distributions | 16,448,946 | 14,123,139 | 227,324,433 | 196,452,868 |
| Shares redeemed | (63,260,483) | (75,307,908) | (857,491,411) | (1,080,512,061) |
| Net increase (decrease) | 64,235,816 | (12,852,128) | $854,506,819 | $(197,427,414) |
| Fidelity Series International Small Cap Fund | ||||
| Series International Small Cap | ||||
| Shares sold | 13,970,665 | 6,213,162 | $203,844,367 | $98,321,887 |
| Reinvestment of distributions | 5,687,438 | 2,000,337 | 86,790,306 | 29,745,011 |
| Shares redeemed | (12,099,806) | (16,436,223) | (183,237,403) | (261,823,586) |
| Net increase (decrease) | 7,558,297 | (8,222,724) | $107,397,270 | $(133,756,688) |
| Class F | ||||
| Shares sold | 21,616,390 | 11,766,506 | $317,805,284 | $186,255,220 |
| Reinvestment of distributions | 6,752,199 | 2,405,585 | 103,173,595 | 35,819,162 |
| Shares redeemed | (13,495,964) | (17,677,411) | (204,013,287) | (284,052,775) |
| Net increase (decrease) | 14,872,625 | (3,505,320) | $216,965,592 | $(61,978,393) |
| Fidelity Series International Value Fund | ||||
| Series International Value | ||||
| Shares sold | 127,074,626 | 51,219,354 | $1,158,126,260 | $514,770,315 |
| Reinvestment of distributions | 11,715,075 | 41,826,962 | 113,519,073 | 418,269,617 |
| Shares redeemed | (76,426,474) | (89,083,944) | (713,679,690) | (900,543,214) |
| Net increase (decrease) | 62,363,227 | 3,962,372 | $557,965,643 | $32,496,718 |
| Class F | ||||
| Shares sold | 189,019,529 | 89,487,681 | $1,732,715,824 | $902,577,936 |
| Reinvestment of distributions | 14,784,176 | 47,121,490 | 143,406,508 | 472,157,334 |
| Shares redeemed | (88,864,488) | (90,319,635) | (828,820,981) | (919,744,396) |
| Net increase (decrease) | 114,939,217 | 46,289,536 | $1,047,301,351 | $454,990,874 |
12. Other.
The Funds' 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 Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Funds.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and the Shareholders of Fidelity Series International Growth Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Series International Growth Fund (each a fund of Fidelity Investment Trust) at October 31, 2016, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fidelity Series International Growth Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 20, 2016
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and the Shareholders of Fidelity Series Emerging Markets Fund, Fidelity Series International Value Fund and Fidelity Series International Small Cap Fund:
We have audited the accompanying statements of assets and liabilities of Fidelity Series Emerging Markets Fund, Fidelity Series International Value Fund and Fidelity Series International Small Cap Fund (the Funds), each a fund of the Fidelity Investment Trust, including the schedules of investments, as of October 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Series Emerging Markets Fund, Fidelity Series International Value Fund and Fidelity Series International Small Cap Fund as of October 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 20, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 for Fidelity® Series Emerging Markets Fund, Fidelity® Series International Growth Fund, Fidelity® Series International Small Cap Fund, and Fidelity® Series International Value Fund or 1-800-835-5092 for Class F.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds' Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2014
Vice President of certain Equity Funds
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs 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 (May 1, 2016 to October 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Annualized Expense RatioA | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Fidelity Series Emerging Markets Fund | ||||
| Series Emerging Markets | 1.03% | |||
| Actual | $1,000.00 | $1,109.00 | $5.46 | |
| Hypothetical-C | $1,000.00 | $1,019.96 | $5.23 | |
| Class F | .87% | |||
| Actual | $1,000.00 | $1,110.00 | $4.61 | |
| Hypothetical-C | $1,000.00 | $1,020.76 | $4.42 | |
| Fidelity Series International Growth Fund | ||||
| Series International Growth | .96% | |||
| Actual | $1,000.00 | $991.10 | $4.80 | |
| Hypothetical-C | $1,000.00 | $1,020.31 | $4.88 | |
| Class F | .79% | |||
| Actual | $1,000.00 | $992.60 | $3.96 | |
| Hypothetical-C | $1,000.00 | $1,021.17 | $4.01 | |
| Fidelity Series International Small Cap Fund | ||||
| Series International Small Cap | 1.03% | |||
| Actual | $1,000.00 | $996.70 | $5.17 | |
| Hypothetical-C | $1,000.00 | $1,019.96 | $5.23 | |
| Class F | .87% | |||
| Actual | $1,000.00 | $997.40 | $4.37 | |
| Hypothetical-C | $1,000.00 | $1,020.76 | $4.42 | |
| Fidelity Series International Value Fund | ||||
| Series International Value | .94% | |||
| Actual | $1,000.00 | $992.50 | $4.71 | |
| Hypothetical-C | $1,000.00 | $1,020.41 | $4.77 | |
| Class F | .78% | |||
| Actual | $1,000.00 | $993.60 | $3.91 | |
| Hypothetical-C | $1,000.00 | $1,021.22 | $3.96 | |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period).
C 5% return per year before expenses
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 Series Emerging Markets Fund | ||||
| Series Emerging Markets | 12/19/16 | 12/16/16 | $0.194 | $0.036 |
| Class F | 12/19/16 | 12/16/16 | $0.218 | $0.036 |
| Fidelity Series International Growth Fund | ||||
| Series International Growth | 12/19/16 | 12/16/16 | $0.159 | $0.166 |
| Class F | 12/19/16 | 12/16/16 | $0.179 | $0.166 |
| Fidelity Series International Small Cap Fund | ||||
| Series International Small Cap | 12/19/16 | 12/16/16 | $0.154 | $0.417 |
| Class F | 12/19/16 | 12/16/16 | $0.177 | $0.417 |
| Fidelity Series International Value Fund | ||||
| Series International Value | 12/19/16 | 12/16/16 | $0.223 | $0.017 |
| Class F | 12/19/16 | 12/16/16 | $ 0.237 | $ 0.017 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended October 31, 2016, or, if subsequently determined to be different, the net capital gain of such year.
| Fidelity Series International Growth Fund | $167,014,771 |
| Fidelity Series International Small Cap Fund | $ 81,482,024 |
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends–received deduction for corporate shareholders:
| December 04, 2015 | |
| Fidelity Series Emerging Markets Fund | |
| Series Emerging Markets | 0% |
| Class F | 0 % |
| Fidelity Series International Growth Fund | |
| Series International Growth | 11% |
| Class F | 10% |
| Fidelity Series International Small Cap Fund | |
| Series International Small Cap | 4% |
| Class F | 4% |
| Fidelity Series International Value Fund | |
| Series International Value | 3% |
| Class F | 2% |
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 04, 2015 | |
| Fidelity Series Emerging Markets Fund | |
| Series Emerging Markets | 98% |
| Class F | 88% |
| Fidelity Series International Growth Fund | |
| Series International Growth | 100% |
| Class F | 100% |
| Fidelity Series International Small Cap Fund | |
| Series International Small Cap | 100% |
| Class F | 100% |
| Fidelity Series International Value Fund | |
| Series International Value | 98% |
| Class F | 91% |
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 | |
| Fidelity Series Emerging Markets Fund | |||
| Series Emerging Markets | 12/07/15 | $0.2143 | $0.0323 |
| Class F | 12/07/15 | $0.2383 | $0.0323 |
| Fidelity Series International Growth Fund | |||
| Series International Growth | 12/07/15 | $0.1946 | $0.0226 |
| Class F | 12/07/15 | $0.2196 | $0.0226 |
| Fidelity Series International Small Cap Fund | |||
| Series International Small Cap | 12/07/15 | $0.2671 | $0.0271 |
| Class F | 12/07/15 | $0.2951 | $0.0271 |
| Fidelity Series International Value Fund | |||
| Series International Value | 12/07/15 | $0.2152 | $0.0112 |
| Class F | 12/07/15 | $ 0.2332 | $ 0.0112 |
The funds will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Series Emerging Markets Fund
Fidelity Series International Growth Fund
Fidelity Series International Small Cap Fund
Fidelity Series International Value Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the funds, including the backgrounds of investment personnel of Fidelity, and also considered the funds' investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there were portfolio management changes for Fidelity Series Emerging Markets Fund in October 2013, September 2014, and October 2015.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for each fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. For each fund (except Fidelity Series Emerging Markets Fund), returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity Series Emerging Markets Fund
Fidelity Series International Growth Fund
Fidelity Series International Small Cap Fund
Fidelity Series International Value Fund
Fidelity Series Emerging Markets Fund
Fidelity Series International Growth Fund
Fidelity Series International Small Cap Fund
Fidelity Series International Value Fund
GSV-S-ANN-1216
1.907943.106
|
Fidelity Advisor® International Small Cap Fund - Class A, Class T, Class C and Class I Annual Report October 31, 2016 Class A, Class T, Class C and Class I are classes of Fidelity® International Small Cap Fund |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 2.84% | 8.97% | 4.88% |
| Class T (incl. 3.50% sales charge) | 4.99% | 9.19% | 4.85% |
| Class C (incl. contingent deferred sales charge) | 7.26% | 9.44% | 4.72% |
| Class I | 9.43% | 10.68% | 5.85% |
Prior to April 1, 2014, the fund compared its performance to a different benchmark. The fund's historical performance may not represent its current investment policies.
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® International Small Cap Fund - Class A on October 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) ex USA Small Cap Index performed over the same period.
| Period Ending Values | ||
|
| $16,098 | Fidelity Advisor® International Small Cap Fund - Class A |
|
| $15,038 | MSCI ACWI (All Country World Index) ex USA Small Cap Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.'s June vote to exit the European Union – dubbed "Brexit" – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from "risk off" to "risk on." Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Samuel Chamovitz: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) posted high single-digit gains that considerably outperformed the 4.33% return of the benchmark MSCI ACWI (All Country World Index) ex USA Small Cap Index. Versus the benchmark, stock selection in several sectors added significant value. The fund also enjoyed broad-based success on a geographical basis. Nitori Holdings, our top relative contributor, is a Japan-based home-furnishings retailer. During the period, the company estimated that its operating profit increased by approximately 30% in the six months from March through August. Also lifting relative results were Japanese drugstore chain Tsuruha Holdings, Australia-based drilling-services provider Imdex Limited and EBOS Group, an Australian distributor of medical products. All but Tsuruha were non-benchmark positions. Conversely, my picks in energy detracted by a relatively modest amount. Canada was the biggest negative among countries. At the stock level, eight of our 20 largest relative detractors were based in the U.K. The biggest relative detractor was Countrywide, a U.K.-based real estate agency. Other detractors included Amec Foster Wheeler, a U.K.-headquartered oilfield-services provider, and U.S. department store Dillards, a non-benchmark holding.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 22.1% | |
| United Kingdom | 13.5% | |
| United States of America* | 6.0% | |
| Canada | 5.2% | |
| Australia | 4.3% | |
| Cayman Islands | 4.0% | |
| France | 3.6% | |
| Switzerland | 2.9% | |
| Finland | 2.8% | |
| Other | 35.6% | |
* 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 April 30, 2016 | ||
| Japan | 22.2% | |
| United Kingdom | 14.8% | |
| United States of America* | 5.9% | |
| Canada | 4.1% | |
| France | 4.0% | |
| Cayman Islands | 3.9% | |
| Australia | 3.6% | |
| Switzerland | 3.3% | |
| Ireland | 2.5% | |
| Other | 35.7% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 94.8 | 95.0 |
| Short-Term Investments and Net Other Assets (Liabilities) | 5.2 | 5.0 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Micro Focus International PLC (United Kingdom, Software) | 1.2 | 1.3 |
| JSR Corp. (Japan, Chemicals) | 1.0 | 0.9 |
| Allied World Assurance Co. Holdings AG (Switzerland, Insurance) | 1.0 | 1.0 |
| Vontobel Holdings AG (Switzerland, Capital Markets) | 0.9 | 0.9 |
| S Foods, Inc. (Japan, Food Products) | 0.9 | 0.9 |
| Toshiba Plant Systems & Services Corp. (Japan, Construction & Engineering) | 0.9 | 0.8 |
| Frutarom Industries Ltd. (Israel, Chemicals) | 0.9 | 1.0 |
| Open Text Corp. (Canada, Software) | 0.9 | 0.9 |
| EBOS Group Ltd. (New Zealand, Health Care Providers & Services) | 0.8 | 1.2 |
| GUD Holdings Ltd. (Australia, Household Durables) | 0.8 | 0.9 |
| 9.3 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Industrials | 18.4 | 19.4 |
| Consumer Discretionary | 16.2 | 15.2 |
| Financials | 13.9 | 20.9 |
| Information Technology | 9.7 | 9.4 |
| Materials | 9.7 | 7.8 |
| Health Care | 9.5 | 8.9 |
| Consumer Staples | 8.4 | 8.9 |
| Real Estate | 4.8 | 0.0 |
| Energy | 3.9 | 4.1 |
| Utilities | 0.3 | 0.4 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 93.4% | |||
| Shares | Value | ||
| Australia - 4.3% | |||
| Aub Group Ltd. | 550,234 | $4,143,774 | |
| Austal Ltd. (a) | 2,621,086 | 3,070,545 | |
| Challenger Ltd. | 611,334 | 5,003,849 | |
| GUD Holdings Ltd. | 1,132,946 | 8,187,404 | |
| Imdex Ltd. (b) | 14,323,674 | 6,537,611 | |
| Life Healthcare Group Ltd. | 2,075,053 | 3,314,835 | |
| Nanosonics Ltd. (b) | 1,532,896 | 4,046,277 | |
| Pact Group Holdings Ltd. | 472,422 | 2,361,070 | |
| Programmed Maintenance Services Ltd. | 3,501,712 | 3,822,485 | |
| SomnoMed Ltd. (a)(b) | 726,815 | 2,211,553 | |
| TOTAL AUSTRALIA | 42,699,403 | ||
| Austria - 2.7% | |||
| Andritz AG | 124,232 | 6,498,301 | |
| Buwog-Gemeinnuetzige Wohnung | 199,838 | 4,829,478 | |
| IMMOFINANZ Immobilien Anlagen AG | 2,558,443 | 5,513,146 | |
| RHI AG | 222,940 | 5,614,161 | |
| Wienerberger AG | 284,500 | 4,548,793 | |
| TOTAL AUSTRIA | 27,003,879 | ||
| Bailiwick of Jersey - 0.6% | |||
| Regus PLC | 1,791,000 | 5,456,346 | |
| Belgium - 0.9% | |||
| Barco NV | 67,583 | 5,311,949 | |
| Econocom Group SA | 224,685 | 3,343,313 | |
| TOTAL BELGIUM | 8,655,262 | ||
| Bermuda - 2.2% | |||
| BW Offshore Ltd. (b) | 82,996,886 | 3,415,365 | |
| Hiscox Ltd. | 340,981 | 4,261,253 | |
| Petra Diamonds Ltd. | 3,220,074 | 5,986,942 | |
| Skyworth Digital Holdings Ltd. | 6,380,000 | 4,129,636 | |
| Travelport Worldwide Ltd. | 284,600 | 4,018,552 | |
| TOTAL BERMUDA | 21,811,748 | ||
| Brazil - 0.3% | |||
| MAHLE Metal Leve SA | 402,100 | 2,787,742 | |
| British Virgin Islands - 0.3% | |||
| Gem Diamonds Ltd. | 1,844,162 | 2,618,415 | |
| Canada - 5.2% | |||
| AutoCanada, Inc. (a) | 281,984 | 4,635,613 | |
| Dorel Industries, Inc. Class B (sub. vtg.) | 129,503 | 3,287,540 | |
| Genesis Land Development Corp. | 1,563,422 | 3,356,934 | |
| Lassonde Industries, Inc. Class A (sub. vtg.) | 39,869 | 5,944,830 | |
| McCoy Global, Inc. (b) | 1,341,870 | 1,750,744 | |
| North West Co., Inc. | 226,500 | 4,322,970 | |
| Open Text Corp. | 136,048 | 8,447,087 | |
| ShawCor Ltd. Class A | 111,385 | 2,786,078 | |
| TransForce, Inc. | 239,800 | 5,440,330 | |
| Western Forest Products, Inc. | 3,067,700 | 4,665,703 | |
| Whitecap Resources, Inc. (a) | 886,253 | 7,083,152 | |
| TOTAL CANADA | 51,720,981 | ||
| Cayman Islands - 4.0% | |||
| AMVIG Holdings Ltd. | 17,038,000 | 5,755,821 | |
| Best Pacific International Holdings Ltd. | 2,784,000 | 2,300,990 | |
| China High Precision Automation Group Ltd. (b) | 712,000 | 1 | |
| China Metal Recycling (Holdings) Ltd. (b) | 436,800 | 1 | |
| Greatview Aseptic Pack Co. Ltd. | 6,321,000 | 3,211,215 | |
| Haitian International Holdings Ltd. | 2,703,000 | 5,576,394 | |
| Lifestyle China Group Ltd. (b) | 4,600,000 | 1,293,010 | |
| Lifestyle International Holdings Ltd. | 3,311,500 | 4,440,639 | |
| Pico Far East Holdings Ltd. | 18,482,000 | 5,624,040 | |
| SITC International Holdings Co. Ltd. | 13,012,000 | 7,700,947 | |
| Value Partners Group Ltd. | 4,081,000 | 3,904,432 | |
| TOTAL CAYMAN ISLANDS | 39,807,490 | ||
| Chile - 1.0% | |||
| Quinenco SA | 2,409,395 | 5,901,583 | |
| Vina San Pedro SA | 380,410,732 | 4,402,659 | |
| TOTAL CHILE | 10,304,242 | ||
| China - 0.4% | |||
| Qingdao Port International Co. Ltd. | 6,191,000 | 3,775,803 | |
| Denmark - 0.7% | |||
| Jyske Bank A/S (Reg.) | 156,203 | 7,088,819 | |
| Finland - 2.8% | |||
| Amer Group PLC (A Shares) | 228,445 | 6,219,232 | |
| Asiakastieto Group Oyj | 192,023 | 4,019,827 | |
| Cramo Oyj (B Shares) | 186,710 | 4,908,814 | |
| Olvi PLC (A Shares) | 134,838 | 4,083,828 | |
| Oriola-KD Oyj | 743,766 | 3,486,323 | |
| Tikkurila Oyj | 280,346 | 5,401,009 | |
| TOTAL FINLAND | 28,119,033 | ||
| France - 3.6% | |||
| ALTEN | 89,219 | 6,376,884 | |
| Maisons du Monde SA | 171,100 | 4,827,103 | |
| Rexel SA | 328,700 | 4,559,092 | |
| The Lisi Group | 125,409 | 3,712,210 | |
| The Vicat Group | 101,756 | 6,397,211 | |
| Thermador Groupe SA | 36,407 | 3,147,306 | |
| Wendel SA | 58,135 | 6,688,095 | |
| TOTAL FRANCE | 35,707,901 | ||
| Germany - 2.3% | |||
| AURELIUS AG | 85,535 | 5,096,677 | |
| Axel Springer Verlag AG | 111,200 | 5,568,214 | |
| CompuGroup Medical AG | 137,949 | 6,107,314 | |
| mutares AG | 164,200 | 2,388,320 | |
| SHW Group (a) | 118,139 | 4,085,143 | |
| TOTAL GERMANY | 23,245,668 | ||
| Greece - 0.4% | |||
| Metka Industrial-Construction | 522,469 | 4,393,319 | |
| Hong Kong - 1.8% | |||
| Dah Sing Banking Group Ltd. | 3,385,600 | 6,129,007 | |
| Far East Horizon Ltd. | 4,840,000 | 4,418,410 | |
| Magnificent Hotel Investment Ltd. | 121,606,000 | 2,853,736 | |
| Shun Ho Technology Holdings Ltd. | 1,422,033 | 502,398 | |
| Techtronic Industries Co. Ltd. | 1,116,500 | 4,203,674 | |
| TOTAL HONG KONG | 18,107,225 | ||
| India - 0.8% | |||
| Edelweiss Financial Services Ltd. (b) | 2,781,738 | 5,087,621 | |
| Torrent Pharmaceuticals Ltd. | 154,730 | 3,282,815 | |
| TOTAL INDIA | 8,370,436 | ||
| Indonesia - 0.7% | |||
| PT ACE Hardware Indonesia Tbk | 50,758,800 | 3,326,086 | |
| PT Media Nusantara Citra Tbk | 21,315,900 | 3,430,671 | |
| TOTAL INDONESIA | 6,756,757 | ||
| Ireland - 2.1% | |||
| C&C Group PLC | 844,980 | 3,246,519 | |
| Mincon Group PLC | 5,731,523 | 4,775,461 | |
| Origin Enterprises PLC | 785,800 | 4,873,758 | |
| United Drug PLC (United Kingdom) | 952,449 | 7,618,487 | |
| TOTAL IRELAND | 20,514,225 | ||
| Isle of Man - 0.6% | |||
| Paysafe Group PLC (b) | 1,050,400 | 5,567,036 | |
| Israel - 0.9% | |||
| Frutarom Industries Ltd. | 167,089 | 8,841,610 | |
| Italy - 0.6% | |||
| Banco di Desio e della Brianza SpA | 669,139 | 1,240,650 | |
| Recordati SpA | 158,261 | 4,478,786 | |
| TOTAL ITALY | 5,719,436 | ||
| Japan - 22.1% | |||
| A/S One Corp. | 142,500 | 6,406,861 | |
| Aeon Delight Co. Ltd. | 205,900 | 6,096,305 | |
| Arc Land Sakamoto Co. Ltd. | 510,000 | 6,088,681 | |
| Broadleaf Co. Ltd. | 385,300 | 4,339,080 | |
| Central Automotive Products Ltd. | 337,000 | 2,917,860 | |
| Daiwa Industries Ltd. | 495,600 | 4,324,154 | |
| Dexerials Corp. | 664,100 | 5,344,716 | |
| Fuji Corp. | 149,100 | 2,972,901 | |
| Fukuda Denshi Co. Ltd. | 42,800 | 2,579,346 | |
| Funai Soken Holdings, Inc. | 196,820 | 3,047,923 | |
| GMO Internet, Inc. | 446,600 | 5,983,341 | |
| Iida Group Holdings Co. Ltd. | 268,751 | 5,199,731 | |
| Japan Meat Co. Ltd. | 394,300 | 5,553,362 | |
| JSR Corp. | 665,800 | 10,145,403 | |
| Kaken Pharmaceutical Co. Ltd. | 128,100 | 8,086,412 | |
| Kotobuki Spirits Co. Ltd. | 127,500 | 3,012,730 | |
| Leopalace21 Corp. | 1,069,300 | 6,974,361 | |
| Meitec Corp. | 141,100 | 4,816,802 | |
| Minebea Mitsumi, Inc. | 512,000 | 5,243,521 | |
| Miraca Holdings, Inc. | 153,000 | 7,411,462 | |
| Mitani Shoji Co. Ltd. | 247,700 | 7,392,972 | |
| Morinaga & Co. Ltd. (a) | 86,200 | 4,015,324 | |
| Nihon Parkerizing Co. Ltd. | 539,500 | 7,459,474 | |
| Nitori Holdings Co. Ltd. | 59,200 | 7,095,871 | |
| Otsuka Corp. | 97,300 | 4,639,077 | |
| Paramount Bed Holdings Co. Ltd. | 172,500 | 6,579,575 | |
| Ricoh Leasing Co. Ltd. | 247,100 | 7,151,221 | |
| S Foods, Inc. (a) | 345,100 | 9,246,982 | |
| San-Ai Oil Co. Ltd. | 589,000 | 4,161,810 | |
| Shinsei Bank Ltd. | 3,971,000 | 6,437,208 | |
| Ship Healthcare Holdings, Inc. | 174,800 | 5,125,489 | |
| TKC Corp. | 250,400 | 7,413,865 | |
| Toshiba Plant Systems & Services Corp. | 552,900 | 8,936,450 | |
| Tsuruha Holdings, Inc. | 70,200 | 8,113,131 | |
| VT Holdings Co. Ltd. | 1,312,400 | 7,070,716 | |
| Welcia Holdings Co. Ltd. | 64,300 | 4,396,214 | |
| Yamada Consulting Group Co. Ltd. | 168,200 | 7,105,235 | |
| TOTAL JAPAN | 218,885,566 | ||
| Korea (South) - 1.2% | |||
| BGFretail Co. Ltd. | 16,949 | 2,578,460 | |
| Fila Korea Ltd. | 52,928 | 4,035,236 | |
| Hy-Lok Corp. | 125,792 | 2,507,580 | |
| NS Shopping Co. Ltd. (b) | 20,408 | 2,944,092 | |
| TOTAL KOREA (SOUTH) | 12,065,368 | ||
| Luxembourg - 0.4% | |||
| SAF-Holland SA | 303,900 | 4,078,336 | |
| Netherlands - 2.4% | |||
| Amsterdam Commodities NV | 207,955 | 4,695,773 | |
| Arcadis NV | 212,989 | 2,805,704 | |
| Basic-Fit NV | 242,500 | 4,404,351 | |
| BinckBank NV | 1,021,257 | 6,060,585 | |
| IMCD Group BV | 142,000 | 6,142,471 | |
| TOTAL NETHERLANDS | 24,108,884 | ||
| New Zealand - 0.8% | |||
| EBOS Group Ltd. | 671,717 | 8,189,879 | |
| Norway - 1.7% | |||
| ABG Sundal Collier ASA | 6,890,610 | 4,078,148 | |
| Ekornes A/S | 356,197 | 4,483,529 | |
| Kongsberg Gruppen ASA | 295,933 | 4,226,412 | |
| Spectrum ASA (b) | 1,183,572 | 3,724,470 | |
| TOTAL NORWAY | 16,512,559 | ||
| Philippines - 0.3% | |||
| Century Pacific Food, Inc. | 7,712,400 | 2,659,476 | |
| Romania - 0.4% | |||
| Banca Transilvania SA | 6,683,668 | 3,769,598 | |
| Singapore - 1.7% | |||
| Boustead Projects Pte Ltd. (b) | 994,106 | 518,043 | |
| Boustead Singapore Ltd. | 3,691,769 | 2,374,939 | |
| Hour Glass Ltd. | 8,087,500 | 3,923,854 | |
| Mapletree Industrial (REIT) | 4,048,594 | 5,005,270 | |
| Wing Tai Holdings Ltd. | 4,268,200 | 5,200,071 | |
| TOTAL SINGAPORE | 17,022,177 | ||
| South Africa - 0.7% | |||
| Clicks Group Ltd. | 713,016 | 6,636,396 | |
| Spain - 0.6% | |||
| Hispania Activos Inmobiliarios SA | 454,085 | 5,592,854 | |
| Sweden - 1.2% | |||
| Addlife AB (b) | 98,854 | 1,526,783 | |
| AddTech AB (B Shares) | 231,619 | 3,295,233 | |
| Coor Service Management Holding AB | 494,483 | 2,874,217 | |
| Granges AB | 388,120 | 3,770,700 | |
| TOTAL SWEDEN | 11,466,933 | ||
| Switzerland - 2.9% | |||
| Allied World Assurance Co. Holdings AG | 223,504 | 9,606,202 | |
| Daetwyler Holdings AG | 28,893 | 3,953,426 | |
| Vontobel Holdings AG | 189,326 | 9,269,713 | |
| VZ Holding AG | 20,231 | 5,990,281 | |
| TOTAL SWITZERLAND | 28,819,622 | ||
| Taiwan - 2.2% | |||
| King's Town Bank | 4,627,000 | 3,793,645 | |
| Makalot Industrial Co. Ltd. | 942,540 | 3,721,910 | |
| Test Research, Inc. | 932,000 | 1,182,422 | |
| Tripod Technology Corp. | 2,747,000 | 6,508,426 | |
| Vanguard International Semiconductor Corp. | 1,324,000 | 2,704,398 | |
| Yageo Corp. | 400,000 | 806,889 | |
| Yung Chi Paint & Varnish Manufacturing Co. Ltd. | 1,254,000 | 3,090,404 | |
| TOTAL TAIWAN | 21,808,094 | ||
| Thailand - 1.0% | |||
| Delta Electronics PCL (For. Reg.) | 2,654,900 | 5,948,188 | |
| TISCO Financial Group PCL | 2,917,600 | 4,309,263 | |
| TOTAL THAILAND | 10,257,451 | ||
| Turkey - 0.3% | |||
| Aygaz A/S | 892,000 | 3,147,981 | |
| United Kingdom - 13.5% | |||
| Aberdeen Asset Management PLC | 892,249 | 3,496,945 | |
| AEW UK REIT PLC | 2,828,268 | 3,414,200 | |
| Alliance Pharma PLC | 6,425,358 | 3,558,749 | |
| Amec Foster Wheeler PLC | 680,210 | 3,723,285 | |
| Ashmore Group PLC | 1,036,507 | 4,454,352 | |
| Bond International Software PLC (b) | 899,666 | 1,365,477 | |
| Cineworld Group PLC | 488,776 | 3,233,605 | |
| Close Brothers Group PLC | 303,580 | 4,930,892 | |
| Countrywide PLC | 2,373,907 | 5,236,003 | |
| Diploma PLC | 330,451 | 3,791,925 | |
| Elementis PLC | 1,348,200 | 3,930,769 | |
| Empiric Student Property PLC | 2,112,172 | 2,863,218 | |
| Essentra PLC | 679,700 | 4,242,959 | |
| Exova Group Ltd. PLC | 1,002,769 | 2,577,517 | |
| Informa PLC | 766,043 | 6,305,606 | |
| ITE Group PLC | 2,416,764 | 4,252,296 | |
| James Fisher and Sons PLC | 164,400 | 3,255,830 | |
| Jardine Lloyd Thompson Group PLC | 316,200 | 3,978,656 | |
| John Wood Group PLC | 573,300 | 5,396,221 | |
| LivaNova PLC (b) | 86,700 | 4,914,156 | |
| Luxfer Holdings PLC sponsored ADR | 687,209 | 6,452,893 | |
| McColl's Retail Group PLC | 3,022,481 | 6,307,676 | |
| Mears Group PLC | 1,304,910 | 7,191,437 | |
| Melrose Industries PLC | 2,338,999 | 4,831,202 | |
| Micro Focus International PLC | 459,944 | 12,053,216 | |
| PayPoint PLC | 243,511 | 3,204,118 | |
| Sinclair Pharma PLC (b) | 8,929,806 | 3,169,724 | |
| Spectris PLC | 189,947 | 4,763,825 | |
| The Restaurant Group PLC | 734,800 | 3,377,229 | |
| Ultra Electronics Holdings PLC | 155,125 | 3,527,840 | |
| TOTAL UNITED KINGDOM | 133,801,821 | ||
| United States of America - 0.8% | |||
| Dillard's, Inc. Class A | 112,894 | 6,920,402 | |
| Hornbeck Offshore Services, Inc. (a)(b) | 152,170 | 604,115 | |
| YOU On Demand Holdings, Inc. warrants 8/30/17 (b)(c) | 27,500 | 26 | |
| TOTAL UNITED STATES OF AMERICA | 7,524,543 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $878,368,986) | 925,420,314 | ||
| Preferred Stocks - 1.4% | |||
| Convertible Preferred Stocks - 0.4% | |||
| India - 0.4% | |||
| PC Jeweller Ltd. 13.00% (c) | 20,810,176 | 3,751,335 | |
| Nonconvertible Preferred Stocks - 1.0% | |||
| Brazil - 1.0% | |||
| Alpargatas SA (PN) | 1,319,300 | 4,385,267 | |
| Banco ABC Brasil SA | 1,172,705 | 5,650,440 | |
| 10,035,707 | |||
| TOTAL PREFERRED STOCKS | |||
| (Cost $11,560,390) | 13,787,042 | ||
| Money Market Funds - 5.8% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 48,987,599 | 49,002,295 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 8,845,580 | 8,847,349 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $57,834,708) | 57,849,644 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.6% | |||
| (Cost $947,764,084) | 997,057,000 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.6)% | (5,911,724) | ||
| NET ASSETS - 100% | $991,145,276 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,751,361 or 0.4% of net assets.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PC Jeweller Ltd. 13.00% | 7/28/16 | $3,105,681 |
| YOU On Demand Holdings, Inc. warrants 8/30/17 | 9/14/12 | $0 |
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 | $164,100 |
| Fidelity Securities Lending Cash Central Fund | 227,592 |
| Total | $391,692 |
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, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| Imdex Ltd. | $1,246,756 | $1,304,092 | $-- | $-- | $-- |
| Total | $1,246,756 | $1,304,092 | $-- | $-- | $-- |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $162,865,705 | $159,114,344 | $3,751,361 | $-- |
| Consumer Staples | 84,090,088 | 84,090,088 | -- | -- |
| Energy | 38,276,009 | 38,276,009 | -- | -- |
| Financials | 138,428,056 | 138,428,056 | -- | -- |
| Health Care | 92,094,826 | 92,094,826 | -- | -- |
| Industrials | 181,622,143 | 181,622,143 | -- | -- |
| Information Technology | 96,117,742 | 96,117,741 | -- | 1 |
| Materials | 94,579,271 | 94,579,270 | -- | 1 |
| Real Estate | 47,985,535 | 47,985,535 | -- | -- |
| Utilities | 3,147,981 | 3,147,981 | -- | -- |
| Money Market Funds | 57,849,644 | 57,849,644 | -- | -- |
| Total Investments in Securities: | $997,057,000 | $993,305,637 | $3,751,361 | $2 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $257,243,096 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $8,388,682) — See accompanying schedule: Unaffiliated issuers (cost $889,929,376) | $939,207,356 | |
| Fidelity Central Funds (cost $57,834,708) | 57,849,644 | |
| Total Investments (cost $947,764,084) | $997,057,000 | |
| Foreign currency held at value (cost $1,304,373) | 1,305,613 | |
| Receivable for investments sold | 2,599,994 | |
| Receivable for fund shares sold | 2,164,462 | |
| Dividends receivable | 2,945,718 | |
| Distributions receivable from Fidelity Central Funds | 25,303 | |
| Prepaid expenses | 2,299 | |
| Other receivables | 18,973 | |
| Total assets | 1,006,119,362 | |
| Liabilities | ||
| Payable to custodian bank | $84,397 | |
| Payable for investments purchased | 4,279,236 | |
| Payable for fund shares redeemed | 514,645 | |
| Accrued management fee | 811,699 | |
| Distribution and service plan fees payable | 23,448 | |
| Other affiliated payables | 190,797 | |
| Other payables and accrued expenses | 222,876 | |
| Collateral on securities loaned, at value | 8,846,988 | |
| Total liabilities | 14,974,086 | |
| Net Assets | $991,145,276 | |
| Net Assets consist of: | ||
| Paid in capital | $924,761,439 | |
| Undistributed net investment income | 13,974,440 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 3,325,412 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 49,083,985 | |
| Net Assets | $991,145,276 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($36,480,267 ÷ 1,531,841 shares) | $23.81 | |
| Maximum offering price per share (100/94.25 of $23.81) | $25.26 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($13,330,959 ÷ 563,663 shares) | $23.65 | |
| Maximum offering price per share (100/96.50 of $23.65) | $24.51 | |
| Class C: | ||
| Net Asset Value and offering price per share ($12,186,728 ÷ 530,453 shares)(a) | $22.97 | |
| International Small Cap: | ||
| Net Asset Value, offering price and redemption price per share ($906,420,084 ÷ 37,408,491 shares) | $24.23 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($22,727,238 ÷ 930,573 shares) | $24.42 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $28,969,499 | |
| Income from Fidelity Central Funds | 391,692 | |
| Income before foreign taxes withheld | 29,361,191 | |
| Less foreign taxes withheld | (2,109,934) | |
| Total income | 27,251,257 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $7,428,257 | |
| Performance adjustment | 1,328,853 | |
| Transfer agent fees | 2,135,879 | |
| Distribution and service plan fees | 252,105 | |
| Accounting and security lending fees | 417,104 | |
| Custodian fees and expenses | 239,127 | |
| Independent trustees' fees and expenses | 3,735 | |
| Registration fees | 95,012 | |
| Audit | 91,826 | |
| Legal | 2,623 | |
| Miscellaneous | 7,128 | |
| Total expenses before reductions | 12,001,649 | |
| Expense reductions | (28,363) | 11,973,286 |
| Net investment income (loss) | 15,277,971 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 12,182,811 | |
| Fidelity Central Funds | 1,845 | |
| Foreign currency transactions | (99,887) | |
| Total net realized gain (loss) | 12,084,769 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $79,683) | 50,033,952 | |
| Assets and liabilities in foreign currencies | (58,456) | |
| Total change in net unrealized appreciation (depreciation) | 49,975,496 | |
| Net gain (loss) | 62,060,265 | |
| Net increase (decrease) in net assets resulting from operations | $77,338,236 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $15,277,971 | $11,998,423 |
| Net realized gain (loss) | 12,084,769 | 25,838,406 |
| Change in net unrealized appreciation (depreciation) | 49,975,496 | 6,824,724 |
| Net increase (decrease) in net assets resulting from operations | 77,338,236 | 44,661,553 |
| Distributions to shareholders from net investment income | (10,933,091) | (7,662,528) |
| Distributions to shareholders from net realized gain | (23,540,154) | (116,906,834) |
| Total distributions | (34,473,245) | (124,569,362) |
| Share transactions - net increase (decrease) | 74,066,306 | 53,722,708 |
| Redemption fees | 222,176 | 103,111 |
| Total increase (decrease) in net assets | 117,153,473 | (26,081,990) |
| Net Assets | ||
| Beginning of period | 873,991,803 | 900,073,793 |
| End of period | $991,145,276 | $873,991,803 |
| Other Information | ||
| Undistributed net investment income end of period | $13,974,440 | $10,946,744 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.69 | $24.98 | $26.34 | $19.74 | $18.97 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .34 | .27 | .17 | .06 | .06 |
| Net realized and unrealized gain (loss) | 1.64 | 1.05 | (.89) | 6.94 | 1.09 |
| Total from investment operations | 1.98 | 1.32 | (.72) | 7.00 | 1.15 |
| Distributions from net investment income | (.25) | (.16) | (.05) | (.07) | (.11) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.33) | (.27) |
| Total distributions | (.87) | (3.61) | (.65) | (.40) | (.38) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $23.81 | $22.69 | $24.98 | $26.34 | $19.74 |
| Total ReturnC,D | 9.11% | 6.21% | (2.79)% | 36.18% | 6.28% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.61% | 1.59% | 1.50% | 1.61% | 1.63% |
| Expenses net of fee waivers, if any | 1.61% | 1.58% | 1.50% | 1.61% | 1.63% |
| Expenses net of all reductions | 1.61% | 1.58% | 1.50% | 1.60% | 1.60% |
| Net investment income (loss) | 1.50% | 1.18% | .65% | .25% | .32% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $36,480 | $28,238 | $24,572 | $24,020 | $14,125 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.55 | $24.81 | $26.17 | $19.59 | $18.80 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .27 | .21 | .10 | –B | .01 |
| Net realized and unrealized gain (loss) | 1.63 | 1.04 | (.87) | 6.90 | 1.08 |
| Total from investment operations | 1.90 | 1.25 | (.77) | 6.90 | 1.09 |
| Distributions from net investment income | (.19) | (.06) | – | – | (.03) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.32) | (.27) |
| Total distributions | (.81) | (3.51) | (.60) | (.32) | (.30) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $23.65 | $22.55 | $24.81 | $26.17 | $19.59 |
| Total ReturnC,D | 8.79% | 5.90% | (3.00)% | 35.80% | 5.97% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.90% | 1.87% | 1.77% | 1.87% | 1.88% |
| Expenses net of fee waivers, if any | 1.90% | 1.86% | 1.77% | 1.87% | 1.88% |
| Expenses net of all reductions | 1.90% | 1.86% | 1.76% | 1.85% | 1.85% |
| Net investment income (loss) | 1.21% | .90% | .38% | (.01)% | .07% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $13,331 | $12,400 | $12,296 | $13,530 | $9,262 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $21.96 | $24.27 | $25.68 | $19.18 | $18.38 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16 | .09 | (.02) | (.11) | (.08) |
| Net realized and unrealized gain (loss) | 1.59 | 1.02 | (.85) | 6.79 | 1.07 |
| Total from investment operations | 1.75 | 1.11 | (.87) | 6.68 | .99 |
| Distributions from net investment income | (.13) | – | – | – | – |
| Distributions from net realized gain | (.62) | (3.42) | (.55) | (.18) | (.19) |
| Total distributions | (.75) | (3.42) | (.55) | (.18) | (.19) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $22.97 | $21.96 | $24.27 | $25.68 | $19.18 |
| Total ReturnC,D | 8.26% | 5.37% | (3.43)% | 35.15% | 5.46% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.40% | 2.36% | 2.23% | 2.33% | 2.38% |
| Expenses net of fee waivers, if any | 2.40% | 2.35% | 2.22% | 2.33% | 2.38% |
| Expenses net of all reductions | 2.39% | 2.35% | 2.22% | 2.32% | 2.35% |
| Net investment income (loss) | .71% | .41% | (.07)% | (.47)% | (.43)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,187 | $11,359 | $12,576 | $13,426 | $6,799 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.06 | $25.34 | $26.67 | $19.99 | $19.23 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .40 | .34 | .25 | .12 | .11 |
| Net realized and unrealized gain (loss) | 1.67 | 1.07 | (.90) | 7.02 | 1.10 |
| Total from investment operations | 2.07 | 1.41 | (.65) | 7.14 | 1.21 |
| Distributions from net investment income | (.29) | (.24) | (.09) | (.14) | (.18) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.33) | (.27) |
| Total distributions | (.91) | (3.69) | (.69) | (.46)B | (.45) |
| Redemption fees added to paid in capitalA | .01 | –C | .01 | –C | –C |
| Net asset value, end of period | $24.23 | $23.06 | $25.34 | $26.67 | $19.99 |
| Total ReturnD | 9.39% | 6.53% | (2.48)% | 36.56% | 6.55% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.34% | 1.31% | 1.21% | 1.33% | 1.35% |
| Expenses net of fee waivers, if any | 1.34% | 1.31% | 1.20% | 1.32% | 1.35% |
| Expenses net of all reductions | 1.33% | 1.31% | 1.20% | 1.31% | 1.33% |
| Net investment income (loss) | 1.77% | 1.45% | .95% | .53% | .59% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $906,420 | $811,534 | $842,031 | $1,029,629 | $692,769 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.46 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $.327 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.24 | $25.34 | $26.67 | $20.00 | $19.24 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .41 | .36 | .29 | .16 | .13 |
| Net realized and unrealized gain (loss) | 1.69 | 1.07 | (.90) | 7.00 | 1.10 |
| Total from investment operations | 2.10 | 1.43 | (.61) | 7.16 | 1.23 |
| Distributions from net investment income | (.31) | (.08) | (.13) | (.16) | (.20) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.33) | (.27) |
| Total distributions | (.93) | (3.53) | (.73) | (.49) | (.47) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $24.42 | $23.24 | $25.34 | $26.67 | $20.00 |
| Total ReturnC | 9.43% | 6.60% | (2.35)% | 36.68% | 6.65% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.31% | 1.24% | 1.08% | 1.20% | 1.25% |
| Expenses net of fee waivers, if any | 1.31% | 1.23% | 1.08% | 1.20% | 1.25% |
| Expenses net of all reductions | 1.31% | 1.23% | 1.08% | 1.18% | 1.22% |
| Net investment income (loss) | 1.80% | 1.53% | 1.07% | .66% | .70% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $22,727 | $10,070 | $8,092 | $67,038 | $9,503 |
| Portfolio turnover rateF | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Small Cap 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, International Small Cap and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, including information on transfers between Levels 1 and 2, is included at the end of each 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $149,403,625 |
| Gross unrealized depreciation | (109,195,253) |
| Net unrealized appreciation (depreciation) on securities | $40,208,372 |
| Tax Cost | $956,848,628 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $15,845,883 |
| Undistributed long-term capital gain | $10,536,654 |
| Net unrealized appreciation (depreciation) on securities and other investments | $40,080,985 |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $15,375,346 | $ 8,729,905 |
| Long-term Capital Gains | 19,097,899 | 115,839,457 |
| Total | $34,473,245 | $ 124,569,362 |
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 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.
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 $300,353,437 and $245,220,247, 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. 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 International Small Cap as compared to its benchmark index, the MSCI ACWI (All Country World Index) ex USA Small Cap Index effective April 1, 2014 (the MSCI EAFE Small Cap Index prior to April 1, 2014), over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was 1.00% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $78,646 | $– |
| Class T | .25% | .25% | 63,700 | – |
| Class B | .75% | .25% | 1,971 | 1,478 |
| Class C | .75% | .25% | 107,788 | 16,939 |
| $252,105 | $18,417 |
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 by FDC |
|
| Class A | $17,224 |
| Class T | 2,747 |
| Class B(a) | 9 |
| Class C(a) | 2,387 |
| $22,367 |
(a) 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-Level Average Net Assets |
|
| Class A | $82,865 | .26 |
| Class T | 38,957 | .31 |
| Class B | 549 | .28 |
| Class C | 32,529 | .30 |
| International Small Cap | 1,958,094 | .24 |
| Class I | 22,885 | .22 |
| $2,135,879 |
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 $438 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,223 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $227,592, including $858 from 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 $22,241 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $6,122.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $319,347 | $155,785 |
| Class T | 106,306 | 27,108 |
| Class B | 996 | – |
| Class C | 64,383 | – |
| International Small Cap | 10,307,620 | 7,454,709 |
| Class I | 134,439 | 24,926 |
| Total | $10,933,091 | $7,662,528 |
| From net realized gain | ||
| Class A | $788,825 | $3,382,206 |
| Class T | 339,739 | 1,671,017 |
| Class B | 10,287 | 66,002 |
| Class C | 319,340 | 1,697,539 |
| International Small Cap | 21,811,338 | 109,040,767 |
| Class I | 270,625 | 1,049,303 |
| Total | $23,540,154 | $116,906,834 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 622,254 | 432,152 | $13,846,907 | $9,990,970 |
| Reinvestment of distributions | 49,226 | 159,613 | 1,077,561 | 3,404,539 |
| Shares redeemed | (383,922) | (331,016) | (8,560,022) | (7,450,558) |
| Net increase (decrease) | 287,558 | 260,749 | $6,364,446 | $5,944,951 |
| Class T | ||||
| Shares sold | 133,036 | 124,085 | $2,846,482 | $2,869,552 |
| Reinvestment of distributions | 20,220 | 77,005 | 440,798 | 1,636,354 |
| Shares redeemed | (139,487) | (146,828) | (3,059,683) | (3,289,706) |
| Net increase (decrease) | 13,769 | 54,262 | $227,597 | $1,216,200 |
| Class B | ||||
| Shares sold | 2,210 | 4,667 | $44,410 | $108,058 |
| Reinvestment of distributions | 493 | 2,954 | 10,648 | 62,128 |
| Shares redeemed | (20,270) | (10,732) | (435,806) | (240,945) |
| Net increase (decrease) | (17,567) | (3,111) | $(380,748) | $(70,759) |
| Class C | ||||
| Shares sold | 222,957 | 196,292 | $4,942,382 | $4,379,607 |
| Reinvestment of distributions | 16,869 | 71,584 | 358,801 | 1,488,229 |
| Shares redeemed | (226,514) | (268,981) | (4,770,771) | (5,818,752) |
| Net increase (decrease) | 13,312 | (1,105) | $530,412 | $49,084 |
| International Small Cap | ||||
| Shares sold | 11,991,539 | 7,876,402 | $277,123,750 | $184,799,928 |
| Reinvestment of distributions | 1,408,054 | 5,231,399 | 31,286,953 | 113,102,853 |
| Shares redeemed | (11,188,601) | (11,138,439) | (253,612,350) | (253,855,534) |
| Net increase (decrease) | 2,210,992 | 1,969,362 | $54,798,353 | $44,047,247 |
| Class I | ||||
| Shares sold | 924,076 | 256,693 | $21,994,159 | $5,987,647 |
| Reinvestment of distributions | 16,670 | 46,102 | 373,252 | 1,003,648 |
| Shares redeemed | (443,477) | (188,812) | (9,841,165) | (4,455,310) |
| Net increase (decrease) | 497,269 | 113,983 | $12,526,246 | $2,535,985 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Small Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Small Cap Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Small Cap Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 15, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.57% | |||
| Actual | $1,000.00 | $1,059.60 | $8.13 | |
| Hypothetical-C | $1,000.00 | $1,017.24 | $7.96 | |
| Class T | 1.86% | |||
| Actual | $1,000.00 | $1,058.20 | $9.62 | |
| Hypothetical-C | $1,000.00 | $1,015.79 | $9.42 | |
| Class C | 2.36% | |||
| Actual | $1,000.00 | $1,055.10 | $12.19 | |
| Hypothetical-C | $1,000.00 | $1,013.27 | $11.94 | |
| International Small Cap | 1.28% | |||
| Actual | $1,000.00 | $1,061.30 | $6.63 | |
| Hypothetical-C | $1,000.00 | $1,018.70 | $6.50 | |
| Class I | 1.30% | |||
| Actual | $1,000.00 | $1,060.80 | $6.73 | |
| Hypothetical-C | $1,000.00 | $1,018.60 | $6.60 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity International Small Cap 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 International Small Cap Fund | ||||
| Class A | 12/12/16 | 12/09/16 | $0.276 | $0.289 |
| Class T | 12/12/16 | 12/09/16 | $0.186 | $0.289 |
| Class C | 12/12/16 | 12/09/16 | $0.081 | $0.289 |
| Fidelity International Small Cap Fund | 12/12/16 | 12/09/16 | $0.340 | $0.289 |
| Class I | 12/12/16 | 12/09/16 | $0.370 | $0.289 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended October 31, 2016, $10,536,653, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 99%; Class T, Class B, and Class C designates 100%; Fidelity International Small Cap Fund designates 90%; and Class I designates 87% of the dividend distributed in December, 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 | |
| Fidelity International Small Cap Fund | |||
| Class A | 12/07/15 | $0.4128 | $0.0448 |
| Class T | 12/07/15 | $0.3558 | $0.0448 |
| Class B | 12/07/15 | $0.2218 | $0.0448 |
| Class C | 12/07/15 | $0.2868 | $0.0448 |
| Fidelity International Small Cap Fund | 12/07/15 | $0.4548 | $0.0448 |
| Class I | 12/07/15 | $0.4698 | $0.0448 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Small Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for the fund in March 2014.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Small Cap Fund
Fidelity International Small Cap Fund
AISC-ANN-1216
1.793569.113
|
Fidelity® International Small Cap Fund Annual Report October 31, 2016 |
|
|
Contents
|
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2016 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.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended October 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® International Small Cap Fund | 9.39% | 10.58% | 5.77% |
Prior to April 1, 2014, the fund compared its performance to a different benchmark. The fund's historical performance may not represent its current investment policies.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® International Small Cap Fund, a class of the fund, on October 31, 2006.
The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) ex USA Small Cap Index performed over the same period.
| Period Ending Values | ||
|
| $17,524 | Fidelity® International Small Cap Fund |
|
| $15,038 | MSCI ACWI (All Country World Index) ex USA Small Cap Index |
Management's Discussion of Fund Performance
Market Recap: Non-U.S equities eked a 0.40% gain for the year ending October 31, 2016, according to the MSCI ACWI (All Country World Index) ex USA Index. After early-2016 volatility largely driven by concerns about energy prices and global growth, central banks in Europe, Japan and China took action to reignite their economies; the U.S. Federal Reserve added fuel by softening its rate-hike stance. Stock prices recovered nicely until the U.K.’s June vote to exit the European Union – dubbed “Brexit” – touched off near-tumult in global markets. Starting with a sharp initial rebound, the MSCI index then traced a generally upward arc into autumn. Among segments, small-cap stocks outpaced large-caps; growth and value finished close together. Regionally, Canada (+10%) and emerging markets (+9%) were aided by rising commodity prices. Japan (+4%) bettered the index but lagged the rest of the Asia Pacific region (+9%). Europe (-5%) and the U.K. (-11%) were beset by Brexit stress. Among sectors, materials (+16%) and energy (+11%) overcame early-2016 lows. Information technology (+13%) also performed well. Financials (-3%) trailed ex the recently created real estate sector (+3%). Utilities (-3%) and telecom services (-4%) declined amid a mode switch from “risk off” to “risk on.” Meanwhile, health care (-12%) suffered amid U.S. political uncertainty. Comments from Portfolio Manager Samuel Chamovitz: For the fiscal year, the fund’s share classes (excluding sales charges, if applicable) posted high single-digit gains that considerably outperformed the 4.33% return of the benchmark MSCI ACWI (All Country World Index) ex USA Small Cap Index. Versus the benchmark, stock selection in several sectors added significant value. The fund also enjoyed broad-based success on a geographical basis. Nitori Holdings, our top relative contributor, is a Japan-based home-furnishings retailer. During the period, the company estimated that its operating profit increased by approximately 30% in the six months from March through August. Also lifting relative results were Japanese drugstore chain Tsuruha Holdings, Australia-based drilling-services provider Imdex Limited and EBOS Group, an Australian distributor of medical products. All but Tsuruha were non-benchmark positions. Conversely, my picks in energy detracted by a relatively modest amount. Canada was the biggest negative among countries. At the stock level, eight of our 20 largest relative detractors were based in the U.K. The biggest relative detractor was Countrywide, a U.K.-based real estate agency. Other detractors included Amec Foster Wheeler, a U.K.-headquartered oilfield-services provider, and U.S. department store Dillards, a non-benchmark holding.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Geographic Diversification (% of fund's net assets)
| As of October 31, 2016 | ||
| Japan | 22.1% | |
| United Kingdom | 13.5% | |
| United States of America* | 6.0% | |
| Canada | 5.2% | |
| Australia | 4.3% | |
| Cayman Islands | 4.0% | |
| France | 3.6% | |
| Switzerland | 2.9% | |
| Finland | 2.8% | |
| Other | 35.6% | |
* 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 April 30, 2016 | ||
| Japan | 22.2% | |
| United Kingdom | 14.8% | |
| United States of America* | 5.9% | |
| Canada | 4.1% | |
| France | 4.0% | |
| Cayman Islands | 3.9% | |
| Australia | 3.6% | |
| Switzerland | 3.3% | |
| Ireland | 2.5% | |
| Other | 35.7% | |
* 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 October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Stocks | 94.8 | 95.0 |
| Short-Term Investments and Net Other Assets (Liabilities) | 5.2 | 5.0 |
Top Ten Stocks as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Micro Focus International PLC (United Kingdom, Software) | 1.2 | 1.3 |
| JSR Corp. (Japan, Chemicals) | 1.0 | 0.9 |
| Allied World Assurance Co. Holdings AG (Switzerland, Insurance) | 1.0 | 1.0 |
| Vontobel Holdings AG (Switzerland, Capital Markets) | 0.9 | 0.9 |
| S Foods, Inc. (Japan, Food Products) | 0.9 | 0.9 |
| Toshiba Plant Systems & Services Corp. (Japan, Construction & Engineering) | 0.9 | 0.8 |
| Frutarom Industries Ltd. (Israel, Chemicals) | 0.9 | 1.0 |
| Open Text Corp. (Canada, Software) | 0.9 | 0.9 |
| EBOS Group Ltd. (New Zealand, Health Care Providers & Services) | 0.8 | 1.2 |
| GUD Holdings Ltd. (Australia, Household Durables) | 0.8 | 0.9 |
| 9.3 |
Top Market Sectors as of October 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Industrials | 18.4 | 19.4 |
| Consumer Discretionary | 16.2 | 15.2 |
| Financials | 13.9 | 20.9 |
| Information Technology | 9.7 | 9.4 |
| Materials | 9.7 | 7.8 |
| Health Care | 9.5 | 8.9 |
| Consumer Staples | 8.4 | 8.9 |
| Real Estate | 4.8 | 0.0 |
| Energy | 3.9 | 4.1 |
| Utilities | 0.3 | 0.4 |
Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 93.4% | |||
| Shares | Value | ||
| Australia - 4.3% | |||
| Aub Group Ltd. | 550,234 | $4,143,774 | |
| Austal Ltd. (a) | 2,621,086 | 3,070,545 | |
| Challenger Ltd. | 611,334 | 5,003,849 | |
| GUD Holdings Ltd. | 1,132,946 | 8,187,404 | |
| Imdex Ltd. (b) | 14,323,674 | 6,537,611 | |
| Life Healthcare Group Ltd. | 2,075,053 | 3,314,835 | |
| Nanosonics Ltd. (b) | 1,532,896 | 4,046,277 | |
| Pact Group Holdings Ltd. | 472,422 | 2,361,070 | |
| Programmed Maintenance Services Ltd. | 3,501,712 | 3,822,485 | |
| SomnoMed Ltd. (a)(b) | 726,815 | 2,211,553 | |
| TOTAL AUSTRALIA | 42,699,403 | ||
| Austria - 2.7% | |||
| Andritz AG | 124,232 | 6,498,301 | |
| Buwog-Gemeinnuetzige Wohnung | 199,838 | 4,829,478 | |
| IMMOFINANZ Immobilien Anlagen AG | 2,558,443 | 5,513,146 | |
| RHI AG | 222,940 | 5,614,161 | |
| Wienerberger AG | 284,500 | 4,548,793 | |
| TOTAL AUSTRIA | 27,003,879 | ||
| Bailiwick of Jersey - 0.6% | |||
| Regus PLC | 1,791,000 | 5,456,346 | |
| Belgium - 0.9% | |||
| Barco NV | 67,583 | 5,311,949 | |
| Econocom Group SA | 224,685 | 3,343,313 | |
| TOTAL BELGIUM | 8,655,262 | ||
| Bermuda - 2.2% | |||
| BW Offshore Ltd. (b) | 82,996,886 | 3,415,365 | |
| Hiscox Ltd. | 340,981 | 4,261,253 | |
| Petra Diamonds Ltd. | 3,220,074 | 5,986,942 | |
| Skyworth Digital Holdings Ltd. | 6,380,000 | 4,129,636 | |
| Travelport Worldwide Ltd. | 284,600 | 4,018,552 | |
| TOTAL BERMUDA | 21,811,748 | ||
| Brazil - 0.3% | |||
| MAHLE Metal Leve SA | 402,100 | 2,787,742 | |
| British Virgin Islands - 0.3% | |||
| Gem Diamonds Ltd. | 1,844,162 | 2,618,415 | |
| Canada - 5.2% | |||
| AutoCanada, Inc. (a) | 281,984 | 4,635,613 | |
| Dorel Industries, Inc. Class B (sub. vtg.) | 129,503 | 3,287,540 | |
| Genesis Land Development Corp. | 1,563,422 | 3,356,934 | |
| Lassonde Industries, Inc. Class A (sub. vtg.) | 39,869 | 5,944,830 | |
| McCoy Global, Inc. (b) | 1,341,870 | 1,750,744 | |
| North West Co., Inc. | 226,500 | 4,322,970 | |
| Open Text Corp. | 136,048 | 8,447,087 | |
| ShawCor Ltd. Class A | 111,385 | 2,786,078 | |
| TransForce, Inc. | 239,800 | 5,440,330 | |
| Western Forest Products, Inc. | 3,067,700 | 4,665,703 | |
| Whitecap Resources, Inc. (a) | 886,253 | 7,083,152 | |
| TOTAL CANADA | 51,720,981 | ||
| Cayman Islands - 4.0% | |||
| AMVIG Holdings Ltd. | 17,038,000 | 5,755,821 | |
| Best Pacific International Holdings Ltd. | 2,784,000 | 2,300,990 | |
| China High Precision Automation Group Ltd. (b) | 712,000 | 1 | |
| China Metal Recycling (Holdings) Ltd. (b) | 436,800 | 1 | |
| Greatview Aseptic Pack Co. Ltd. | 6,321,000 | 3,211,215 | |
| Haitian International Holdings Ltd. | 2,703,000 | 5,576,394 | |
| Lifestyle China Group Ltd. (b) | 4,600,000 | 1,293,010 | |
| Lifestyle International Holdings Ltd. | 3,311,500 | 4,440,639 | |
| Pico Far East Holdings Ltd. | 18,482,000 | 5,624,040 | |
| SITC International Holdings Co. Ltd. | 13,012,000 | 7,700,947 | |
| Value Partners Group Ltd. | 4,081,000 | 3,904,432 | |
| TOTAL CAYMAN ISLANDS | 39,807,490 | ||
| Chile - 1.0% | |||
| Quinenco SA | 2,409,395 | 5,901,583 | |
| Vina San Pedro SA | 380,410,732 | 4,402,659 | |
| TOTAL CHILE | 10,304,242 | ||
| China - 0.4% | |||
| Qingdao Port International Co. Ltd. | 6,191,000 | 3,775,803 | |
| Denmark - 0.7% | |||
| Jyske Bank A/S (Reg.) | 156,203 | 7,088,819 | |
| Finland - 2.8% | |||
| Amer Group PLC (A Shares) | 228,445 | 6,219,232 | |
| Asiakastieto Group Oyj | 192,023 | 4,019,827 | |
| Cramo Oyj (B Shares) | 186,710 | 4,908,814 | |
| Olvi PLC (A Shares) | 134,838 | 4,083,828 | |
| Oriola-KD Oyj | 743,766 | 3,486,323 | |
| Tikkurila Oyj | 280,346 | 5,401,009 | |
| TOTAL FINLAND | 28,119,033 | ||
| France - 3.6% | |||
| ALTEN | 89,219 | 6,376,884 | |
| Maisons du Monde SA | 171,100 | 4,827,103 | |
| Rexel SA | 328,700 | 4,559,092 | |
| The Lisi Group | 125,409 | 3,712,210 | |
| The Vicat Group | 101,756 | 6,397,211 | |
| Thermador Groupe SA | 36,407 | 3,147,306 | |
| Wendel SA | 58,135 | 6,688,095 | |
| TOTAL FRANCE | 35,707,901 | ||
| Germany - 2.3% | |||
| AURELIUS AG | 85,535 | 5,096,677 | |
| Axel Springer Verlag AG | 111,200 | 5,568,214 | |
| CompuGroup Medical AG | 137,949 | 6,107,314 | |
| mutares AG | 164,200 | 2,388,320 | |
| SHW Group (a) | 118,139 | 4,085,143 | |
| TOTAL GERMANY | 23,245,668 | ||
| Greece - 0.4% | |||
| Metka Industrial-Construction | 522,469 | 4,393,319 | |
| Hong Kong - 1.8% | |||
| Dah Sing Banking Group Ltd. | 3,385,600 | 6,129,007 | |
| Far East Horizon Ltd. | 4,840,000 | 4,418,410 | |
| Magnificent Hotel Investment Ltd. | 121,606,000 | 2,853,736 | |
| Shun Ho Technology Holdings Ltd. | 1,422,033 | 502,398 | |
| Techtronic Industries Co. Ltd. | 1,116,500 | 4,203,674 | |
| TOTAL HONG KONG | 18,107,225 | ||
| India - 0.8% | |||
| Edelweiss Financial Services Ltd. (b) | 2,781,738 | 5,087,621 | |
| Torrent Pharmaceuticals Ltd. | 154,730 | 3,282,815 | |
| TOTAL INDIA | 8,370,436 | ||
| Indonesia - 0.7% | |||
| PT ACE Hardware Indonesia Tbk | 50,758,800 | 3,326,086 | |
| PT Media Nusantara Citra Tbk | 21,315,900 | 3,430,671 | |
| TOTAL INDONESIA | 6,756,757 | ||
| Ireland - 2.1% | |||
| C&C Group PLC | 844,980 | 3,246,519 | |
| Mincon Group PLC | 5,731,523 | 4,775,461 | |
| Origin Enterprises PLC | 785,800 | 4,873,758 | |
| United Drug PLC (United Kingdom) | 952,449 | 7,618,487 | |
| TOTAL IRELAND | 20,514,225 | ||
| Isle of Man - 0.6% | |||
| Paysafe Group PLC (b) | 1,050,400 | 5,567,036 | |
| Israel - 0.9% | |||
| Frutarom Industries Ltd. | 167,089 | 8,841,610 | |
| Italy - 0.6% | |||
| Banco di Desio e della Brianza SpA | 669,139 | 1,240,650 | |
| Recordati SpA | 158,261 | 4,478,786 | |
| TOTAL ITALY | 5,719,436 | ||
| Japan - 22.1% | |||
| A/S One Corp. | 142,500 | 6,406,861 | |
| Aeon Delight Co. Ltd. | 205,900 | 6,096,305 | |
| Arc Land Sakamoto Co. Ltd. | 510,000 | 6,088,681 | |
| Broadleaf Co. Ltd. | 385,300 | 4,339,080 | |
| Central Automotive Products Ltd. | 337,000 | 2,917,860 | |
| Daiwa Industries Ltd. | 495,600 | 4,324,154 | |
| Dexerials Corp. | 664,100 | 5,344,716 | |
| Fuji Corp. | 149,100 | 2,972,901 | |
| Fukuda Denshi Co. Ltd. | 42,800 | 2,579,346 | |
| Funai Soken Holdings, Inc. | 196,820 | 3,047,923 | |
| GMO Internet, Inc. | 446,600 | 5,983,341 | |
| Iida Group Holdings Co. Ltd. | 268,751 | 5,199,731 | |
| Japan Meat Co. Ltd. | 394,300 | 5,553,362 | |
| JSR Corp. | 665,800 | 10,145,403 | |
| Kaken Pharmaceutical Co. Ltd. | 128,100 | 8,086,412 | |
| Kotobuki Spirits Co. Ltd. | 127,500 | 3,012,730 | |
| Leopalace21 Corp. | 1,069,300 | 6,974,361 | |
| Meitec Corp. | 141,100 | 4,816,802 | |
| Minebea Mitsumi, Inc. | 512,000 | 5,243,521 | |
| Miraca Holdings, Inc. | 153,000 | 7,411,462 | |
| Mitani Shoji Co. Ltd. | 247,700 | 7,392,972 | |
| Morinaga & Co. Ltd. (a) | 86,200 | 4,015,324 | |
| Nihon Parkerizing Co. Ltd. | 539,500 | 7,459,474 | |
| Nitori Holdings Co. Ltd. | 59,200 | 7,095,871 | |
| Otsuka Corp. | 97,300 | 4,639,077 | |
| Paramount Bed Holdings Co. Ltd. | 172,500 | 6,579,575 | |
| Ricoh Leasing Co. Ltd. | 247,100 | 7,151,221 | |
| S Foods, Inc. (a) | 345,100 | 9,246,982 | |
| San-Ai Oil Co. Ltd. | 589,000 | 4,161,810 | |
| Shinsei Bank Ltd. | 3,971,000 | 6,437,208 | |
| Ship Healthcare Holdings, Inc. | 174,800 | 5,125,489 | |
| TKC Corp. | 250,400 | 7,413,865 | |
| Toshiba Plant Systems & Services Corp. | 552,900 | 8,936,450 | |
| Tsuruha Holdings, Inc. | 70,200 | 8,113,131 | |
| VT Holdings Co. Ltd. | 1,312,400 | 7,070,716 | |
| Welcia Holdings Co. Ltd. | 64,300 | 4,396,214 | |
| Yamada Consulting Group Co. Ltd. | 168,200 | 7,105,235 | |
| TOTAL JAPAN | 218,885,566 | ||
| Korea (South) - 1.2% | |||
| BGFretail Co. Ltd. | 16,949 | 2,578,460 | |
| Fila Korea Ltd. | 52,928 | 4,035,236 | |
| Hy-Lok Corp. | 125,792 | 2,507,580 | |
| NS Shopping Co. Ltd. (b) | 20,408 | 2,944,092 | |
| TOTAL KOREA (SOUTH) | 12,065,368 | ||
| Luxembourg - 0.4% | |||
| SAF-Holland SA | 303,900 | 4,078,336 | |
| Netherlands - 2.4% | |||
| Amsterdam Commodities NV | 207,955 | 4,695,773 | |
| Arcadis NV | 212,989 | 2,805,704 | |
| Basic-Fit NV | 242,500 | 4,404,351 | |
| BinckBank NV | 1,021,257 | 6,060,585 | |
| IMCD Group BV | 142,000 | 6,142,471 | |
| TOTAL NETHERLANDS | 24,108,884 | ||
| New Zealand - 0.8% | |||
| EBOS Group Ltd. | 671,717 | 8,189,879 | |
| Norway - 1.7% | |||
| ABG Sundal Collier ASA | 6,890,610 | 4,078,148 | |
| Ekornes A/S | 356,197 | 4,483,529 | |
| Kongsberg Gruppen ASA | 295,933 | 4,226,412 | |
| Spectrum ASA (b) | 1,183,572 | 3,724,470 | |
| TOTAL NORWAY | 16,512,559 | ||
| Philippines - 0.3% | |||
| Century Pacific Food, Inc. | 7,712,400 | 2,659,476 | |
| Romania - 0.4% | |||
| Banca Transilvania SA | 6,683,668 | 3,769,598 | |
| Singapore - 1.7% | |||
| Boustead Projects Pte Ltd. (b) | 994,106 | 518,043 | |
| Boustead Singapore Ltd. | 3,691,769 | 2,374,939 | |
| Hour Glass Ltd. | 8,087,500 | 3,923,854 | |
| Mapletree Industrial (REIT) | 4,048,594 | 5,005,270 | |
| Wing Tai Holdings Ltd. | 4,268,200 | 5,200,071 | |
| TOTAL SINGAPORE | 17,022,177 | ||
| South Africa - 0.7% | |||
| Clicks Group Ltd. | 713,016 | 6,636,396 | |
| Spain - 0.6% | |||
| Hispania Activos Inmobiliarios SA | 454,085 | 5,592,854 | |
| Sweden - 1.2% | |||
| Addlife AB (b) | 98,854 | 1,526,783 | |
| AddTech AB (B Shares) | 231,619 | 3,295,233 | |
| Coor Service Management Holding AB | 494,483 | 2,874,217 | |
| Granges AB | 388,120 | 3,770,700 | |
| TOTAL SWEDEN | 11,466,933 | ||
| Switzerland - 2.9% | |||
| Allied World Assurance Co. Holdings AG | 223,504 | 9,606,202 | |
| Daetwyler Holdings AG | 28,893 | 3,953,426 | |
| Vontobel Holdings AG | 189,326 | 9,269,713 | |
| VZ Holding AG | 20,231 | 5,990,281 | |
| TOTAL SWITZERLAND | 28,819,622 | ||
| Taiwan - 2.2% | |||
| King's Town Bank | 4,627,000 | 3,793,645 | |
| Makalot Industrial Co. Ltd. | 942,540 | 3,721,910 | |
| Test Research, Inc. | 932,000 | 1,182,422 | |
| Tripod Technology Corp. | 2,747,000 | 6,508,426 | |
| Vanguard International Semiconductor Corp. | 1,324,000 | 2,704,398 | |
| Yageo Corp. | 400,000 | 806,889 | |
| Yung Chi Paint & Varnish Manufacturing Co. Ltd. | 1,254,000 | 3,090,404 | |
| TOTAL TAIWAN | 21,808,094 | ||
| Thailand - 1.0% | |||
| Delta Electronics PCL (For. Reg.) | 2,654,900 | 5,948,188 | |
| TISCO Financial Group PCL | 2,917,600 | 4,309,263 | |
| TOTAL THAILAND | 10,257,451 | ||
| Turkey - 0.3% | |||
| Aygaz A/S | 892,000 | 3,147,981 | |
| United Kingdom - 13.5% | |||
| Aberdeen Asset Management PLC | 892,249 | 3,496,945 | |
| AEW UK REIT PLC | 2,828,268 | 3,414,200 | |
| Alliance Pharma PLC | 6,425,358 | 3,558,749 | |
| Amec Foster Wheeler PLC | 680,210 | 3,723,285 | |
| Ashmore Group PLC | 1,036,507 | 4,454,352 | |
| Bond International Software PLC (b) | 899,666 | 1,365,477 | |
| Cineworld Group PLC | 488,776 | 3,233,605 | |
| Close Brothers Group PLC | 303,580 | 4,930,892 | |
| Countrywide PLC | 2,373,907 | 5,236,003 | |
| Diploma PLC | 330,451 | 3,791,925 | |
| Elementis PLC | 1,348,200 | 3,930,769 | |
| Empiric Student Property PLC | 2,112,172 | 2,863,218 | |
| Essentra PLC | 679,700 | 4,242,959 | |
| Exova Group Ltd. PLC | 1,002,769 | 2,577,517 | |
| Informa PLC | 766,043 | 6,305,606 | |
| ITE Group PLC | 2,416,764 | 4,252,296 | |
| James Fisher and Sons PLC | 164,400 | 3,255,830 | |
| Jardine Lloyd Thompson Group PLC | 316,200 | 3,978,656 | |
| John Wood Group PLC | 573,300 | 5,396,221 | |
| LivaNova PLC (b) | 86,700 | 4,914,156 | |
| Luxfer Holdings PLC sponsored ADR | 687,209 | 6,452,893 | |
| McColl's Retail Group PLC | 3,022,481 | 6,307,676 | |
| Mears Group PLC | 1,304,910 | 7,191,437 | |
| Melrose Industries PLC | 2,338,999 | 4,831,202 | |
| Micro Focus International PLC | 459,944 | 12,053,216 | |
| PayPoint PLC | 243,511 | 3,204,118 | |
| Sinclair Pharma PLC (b) | 8,929,806 | 3,169,724 | |
| Spectris PLC | 189,947 | 4,763,825 | |
| The Restaurant Group PLC | 734,800 | 3,377,229 | |
| Ultra Electronics Holdings PLC | 155,125 | 3,527,840 | |
| TOTAL UNITED KINGDOM | 133,801,821 | ||
| United States of America - 0.8% | |||
| Dillard's, Inc. Class A | 112,894 | 6,920,402 | |
| Hornbeck Offshore Services, Inc. (a)(b) | 152,170 | 604,115 | |
| YOU On Demand Holdings, Inc. warrants 8/30/17 (b)(c) | 27,500 | 26 | |
| TOTAL UNITED STATES OF AMERICA | 7,524,543 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $878,368,986) | 925,420,314 | ||
| Preferred Stocks - 1.4% | |||
| Convertible Preferred Stocks - 0.4% | |||
| India - 0.4% | |||
| PC Jeweller Ltd. 13.00% (c) | 20,810,176 | 3,751,335 | |
| Nonconvertible Preferred Stocks - 1.0% | |||
| Brazil - 1.0% | |||
| Alpargatas SA (PN) | 1,319,300 | 4,385,267 | |
| Banco ABC Brasil SA | 1,172,705 | 5,650,440 | |
| 10,035,707 | |||
| TOTAL PREFERRED STOCKS | |||
| (Cost $11,560,390) | 13,787,042 | ||
| Money Market Funds - 5.8% | |||
| Fidelity Cash Central Fund, 0.41% (d) | 48,987,599 | 49,002,295 | |
| Fidelity Securities Lending Cash Central Fund 0.48% (d)(e) | 8,845,580 | 8,847,349 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $57,834,708) | 57,849,644 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.6% | |||
| (Cost $947,764,084) | 997,057,000 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.6)% | (5,911,724) | ||
| NET ASSETS - 100% | $991,145,276 |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,751,361 or 0.4% of net assets.
(d) 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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| PC Jeweller Ltd. 13.00% | 7/28/16 | $3,105,681 |
| YOU On Demand Holdings, Inc. warrants 8/30/17 | 9/14/12 | $0 |
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 | $164,100 |
| Fidelity Securities Lending Cash Central Fund | 227,592 |
| Total | $391,692 |
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, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| Imdex Ltd. | $1,246,756 | $1,304,092 | $-- | $-- | $-- |
| Total | $1,246,756 | $1,304,092 | $-- | $-- | $-- |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $162,865,705 | $159,114,344 | $3,751,361 | $-- |
| Consumer Staples | 84,090,088 | 84,090,088 | -- | -- |
| Energy | 38,276,009 | 38,276,009 | -- | -- |
| Financials | 138,428,056 | 138,428,056 | -- | -- |
| Health Care | 92,094,826 | 92,094,826 | -- | -- |
| Industrials | 181,622,143 | 181,622,143 | -- | -- |
| Information Technology | 96,117,742 | 96,117,741 | -- | 1 |
| Materials | 94,579,271 | 94,579,270 | -- | 1 |
| Real Estate | 47,985,535 | 47,985,535 | -- | -- |
| Utilities | 3,147,981 | 3,147,981 | -- | -- |
| Money Market Funds | 57,849,644 | 57,849,644 | -- | -- |
| Total Investments in Securities: | $997,057,000 | $993,305,637 | $3,751,361 | $2 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2016. 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 | $257,243,096 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| October 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $8,388,682) — See accompanying schedule: Unaffiliated issuers (cost $889,929,376) | $939,207,356 | |
| Fidelity Central Funds (cost $57,834,708) | 57,849,644 | |
| Total Investments (cost $947,764,084) | $997,057,000 | |
| Foreign currency held at value (cost $1,304,373) | 1,305,613 | |
| Receivable for investments sold | 2,599,994 | |
| Receivable for fund shares sold | 2,164,462 | |
| Dividends receivable | 2,945,718 | |
| Distributions receivable from Fidelity Central Funds | 25,303 | |
| Prepaid expenses | 2,299 | |
| Other receivables | 18,973 | |
| Total assets | 1,006,119,362 | |
| Liabilities | ||
| Payable to custodian bank | $84,397 | |
| Payable for investments purchased | 4,279,236 | |
| Payable for fund shares redeemed | 514,645 | |
| Accrued management fee | 811,699 | |
| Distribution and service plan fees payable | 23,448 | |
| Other affiliated payables | 190,797 | |
| Other payables and accrued expenses | 222,876 | |
| Collateral on securities loaned, at value | 8,846,988 | |
| Total liabilities | 14,974,086 | |
| Net Assets | $991,145,276 | |
| Net Assets consist of: | ||
| Paid in capital | $924,761,439 | |
| Undistributed net investment income | 13,974,440 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 3,325,412 | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 49,083,985 | |
| Net Assets | $991,145,276 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($36,480,267 ÷ 1,531,841 shares) | $23.81 | |
| Maximum offering price per share (100/94.25 of $23.81) | $25.26 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($13,330,959 ÷ 563,663 shares) | $23.65 | |
| Maximum offering price per share (100/96.50 of $23.65) | $24.51 | |
| Class C: | ||
| Net Asset Value and offering price per share ($12,186,728 ÷ 530,453 shares)(a) | $22.97 | |
| International Small Cap: | ||
| Net Asset Value, offering price and redemption price per share ($906,420,084 ÷ 37,408,491 shares) | $24.23 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($22,727,238 ÷ 930,573 shares) | $24.42 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended October 31, 2016 | ||
| Investment Income | ||
| Dividends | $28,969,499 | |
| Income from Fidelity Central Funds | 391,692 | |
| Income before foreign taxes withheld | 29,361,191 | |
| Less foreign taxes withheld | (2,109,934) | |
| Total income | 27,251,257 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $7,428,257 | |
| Performance adjustment | 1,328,853 | |
| Transfer agent fees | 2,135,879 | |
| Distribution and service plan fees | 252,105 | |
| Accounting and security lending fees | 417,104 | |
| Custodian fees and expenses | 239,127 | |
| Independent trustees' fees and expenses | 3,735 | |
| Registration fees | 95,012 | |
| Audit | 91,826 | |
| Legal | 2,623 | |
| Miscellaneous | 7,128 | |
| Total expenses before reductions | 12,001,649 | |
| Expense reductions | (28,363) | 11,973,286 |
| Net investment income (loss) | 15,277,971 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 12,182,811 | |
| Fidelity Central Funds | 1,845 | |
| Foreign currency transactions | (99,887) | |
| Total net realized gain (loss) | 12,084,769 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $79,683) | 50,033,952 | |
| Assets and liabilities in foreign currencies | (58,456) | |
| Total change in net unrealized appreciation (depreciation) | 49,975,496 | |
| Net gain (loss) | 62,060,265 | |
| Net increase (decrease) in net assets resulting from operations | $77,338,236 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $15,277,971 | $11,998,423 |
| Net realized gain (loss) | 12,084,769 | 25,838,406 |
| Change in net unrealized appreciation (depreciation) | 49,975,496 | 6,824,724 |
| Net increase (decrease) in net assets resulting from operations | 77,338,236 | 44,661,553 |
| Distributions to shareholders from net investment income | (10,933,091) | (7,662,528) |
| Distributions to shareholders from net realized gain | (23,540,154) | (116,906,834) |
| Total distributions | (34,473,245) | (124,569,362) |
| Share transactions - net increase (decrease) | 74,066,306 | 53,722,708 |
| Redemption fees | 222,176 | 103,111 |
| Total increase (decrease) in net assets | 117,153,473 | (26,081,990) |
| Net Assets | ||
| Beginning of period | 873,991,803 | 900,073,793 |
| End of period | $991,145,276 | $873,991,803 |
| Other Information | ||
| Undistributed net investment income end of period | $13,974,440 | $10,946,744 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class A
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.69 | $24.98 | $26.34 | $19.74 | $18.97 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .34 | .27 | .17 | .06 | .06 |
| Net realized and unrealized gain (loss) | 1.64 | 1.05 | (.89) | 6.94 | 1.09 |
| Total from investment operations | 1.98 | 1.32 | (.72) | 7.00 | 1.15 |
| Distributions from net investment income | (.25) | (.16) | (.05) | (.07) | (.11) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.33) | (.27) |
| Total distributions | (.87) | (3.61) | (.65) | (.40) | (.38) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $23.81 | $22.69 | $24.98 | $26.34 | $19.74 |
| Total ReturnC,D | 9.11% | 6.21% | (2.79)% | 36.18% | 6.28% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.61% | 1.59% | 1.50% | 1.61% | 1.63% |
| Expenses net of fee waivers, if any | 1.61% | 1.58% | 1.50% | 1.61% | 1.63% |
| Expenses net of all reductions | 1.61% | 1.58% | 1.50% | 1.60% | 1.60% |
| Net investment income (loss) | 1.50% | 1.18% | .65% | .25% | .32% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $36,480 | $28,238 | $24,572 | $24,020 | $14,125 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class T
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.55 | $24.81 | $26.17 | $19.59 | $18.80 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .27 | .21 | .10 | –B | .01 |
| Net realized and unrealized gain (loss) | 1.63 | 1.04 | (.87) | 6.90 | 1.08 |
| Total from investment operations | 1.90 | 1.25 | (.77) | 6.90 | 1.09 |
| Distributions from net investment income | (.19) | (.06) | – | – | (.03) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.32) | (.27) |
| Total distributions | (.81) | (3.51) | (.60) | (.32) | (.30) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $23.65 | $22.55 | $24.81 | $26.17 | $19.59 |
| Total ReturnC,D | 8.79% | 5.90% | (3.00)% | 35.80% | 5.97% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.90% | 1.87% | 1.77% | 1.87% | 1.88% |
| Expenses net of fee waivers, if any | 1.90% | 1.86% | 1.77% | 1.87% | 1.88% |
| Expenses net of all reductions | 1.90% | 1.86% | 1.76% | 1.85% | 1.85% |
| Net investment income (loss) | 1.21% | .90% | .38% | (.01)% | .07% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $13,331 | $12,400 | $12,296 | $13,530 | $9,262 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class C
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $21.96 | $24.27 | $25.68 | $19.18 | $18.38 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16 | .09 | (.02) | (.11) | (.08) |
| Net realized and unrealized gain (loss) | 1.59 | 1.02 | (.85) | 6.79 | 1.07 |
| Total from investment operations | 1.75 | 1.11 | (.87) | 6.68 | .99 |
| Distributions from net investment income | (.13) | – | – | – | – |
| Distributions from net realized gain | (.62) | (3.42) | (.55) | (.18) | (.19) |
| Total distributions | (.75) | (3.42) | (.55) | (.18) | (.19) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $22.97 | $21.96 | $24.27 | $25.68 | $19.18 |
| Total ReturnC,D | 8.26% | 5.37% | (3.43)% | 35.15% | 5.46% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.40% | 2.36% | 2.23% | 2.33% | 2.38% |
| Expenses net of fee waivers, if any | 2.40% | 2.35% | 2.22% | 2.33% | 2.38% |
| Expenses net of all reductions | 2.39% | 2.35% | 2.22% | 2.32% | 2.35% |
| Net investment income (loss) | .71% | .41% | (.07)% | (.47)% | (.43)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $12,187 | $11,359 | $12,576 | $13,426 | $6,799 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.06 | $25.34 | $26.67 | $19.99 | $19.23 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .40 | .34 | .25 | .12 | .11 |
| Net realized and unrealized gain (loss) | 1.67 | 1.07 | (.90) | 7.02 | 1.10 |
| Total from investment operations | 2.07 | 1.41 | (.65) | 7.14 | 1.21 |
| Distributions from net investment income | (.29) | (.24) | (.09) | (.14) | (.18) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.33) | (.27) |
| Total distributions | (.91) | (3.69) | (.69) | (.46)B | (.45) |
| Redemption fees added to paid in capitalA | .01 | –C | .01 | –C | –C |
| Net asset value, end of period | $24.23 | $23.06 | $25.34 | $26.67 | $19.99 |
| Total ReturnD | 9.39% | 6.53% | (2.48)% | 36.56% | 6.55% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.34% | 1.31% | 1.21% | 1.33% | 1.35% |
| Expenses net of fee waivers, if any | 1.34% | 1.31% | 1.20% | 1.32% | 1.35% |
| Expenses net of all reductions | 1.33% | 1.31% | 1.20% | 1.31% | 1.33% |
| Net investment income (loss) | 1.77% | 1.45% | .95% | .53% | .59% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $906,420 | $811,534 | $842,031 | $1,029,629 | $692,769 |
| Portfolio turnover rateG | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.46 per share is comprised of distributions from net investment income of $.136 and distributions from net realized gain of $.327 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity International Small Cap Fund Class I
| Years ended October 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.24 | $25.34 | $26.67 | $20.00 | $19.24 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .41 | .36 | .29 | .16 | .13 |
| Net realized and unrealized gain (loss) | 1.69 | 1.07 | (.90) | 7.00 | 1.10 |
| Total from investment operations | 2.10 | 1.43 | (.61) | 7.16 | 1.23 |
| Distributions from net investment income | (.31) | (.08) | (.13) | (.16) | (.20) |
| Distributions from net realized gain | (.62) | (3.45) | (.60) | (.33) | (.27) |
| Total distributions | (.93) | (3.53) | (.73) | (.49) | (.47) |
| Redemption fees added to paid in capitalA | .01 | –B | .01 | –B | –B |
| Net asset value, end of period | $24.42 | $23.24 | $25.34 | $26.67 | $20.00 |
| Total ReturnC | 9.43% | 6.60% | (2.35)% | 36.68% | 6.65% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.31% | 1.24% | 1.08% | 1.20% | 1.25% |
| Expenses net of fee waivers, if any | 1.31% | 1.23% | 1.08% | 1.20% | 1.25% |
| Expenses net of all reductions | 1.31% | 1.23% | 1.08% | 1.18% | 1.22% |
| Net investment income (loss) | 1.80% | 1.53% | 1.07% | .66% | .70% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $22,727 | $10,070 | $8,092 | $67,038 | $9,503 |
| Portfolio turnover rateF | 29% | 36% | 102% | 54% | 68% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2016
1. Organization.
Fidelity International Small Cap 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, International Small Cap and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, 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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2016, including information on transfers between Levels 1 and 2, is included at the end of each 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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.
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. As of October 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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. In addition, the fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $149,403,625 |
| Gross unrealized depreciation | (109,195,253) |
| Net unrealized appreciation (depreciation) on securities | $40,208,372 |
| Tax Cost | $956,848,628 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $15,845,883 |
| Undistributed long-term capital gain | $10,536,654 |
| Net unrealized appreciation (depreciation) on securities and other investments | $40,080,985 |
The tax character of distributions paid was as follows:
| October 31, 2016 | October 31, 2015 | |
| Ordinary Income | $15,375,346 | $ 8,729,905 |
| Long-term Capital Gains | 19,097,899 | 115,839,457 |
| Total | $34,473,245 | $ 124,569,362 |
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 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.
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 $300,353,437 and $245,220,247, 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. 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 International Small Cap as compared to its benchmark index, the MSCI ACWI (All Country World Index) ex USA Small Cap Index effective April 1, 2014 (the MSCI EAFE Small Cap Index prior to April 1, 2014), over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was 1.00% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $78,646 | $– |
| Class T | .25% | .25% | 63,700 | – |
| Class B | .75% | .25% | 1,971 | 1,478 |
| Class C | .75% | .25% | 107,788 | 16,939 |
| $252,105 | $18,417 |
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 by FDC |
|
| Class A | $17,224 |
| Class T | 2,747 |
| Class B(a) | 9 |
| Class C(a) | 2,387 |
| $22,367 |
(a) 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-Level Average Net Assets |
|
| Class A | $82,865 | .26 |
| Class T | 38,957 | .31 |
| Class B | 549 | .28 |
| Class C | 32,529 | .30 |
| International Small Cap | 1,958,094 | .24 |
| Class I | 22,885 | .22 |
| $2,135,879 |
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 $438 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,223 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. 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. Total security lending income during the period amounted to $227,592, including $858 from 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 $22,241 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $6,122.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended October 31, 2016 | Year ended October 31, 2015 | |
| From net investment income | ||
| Class A | $319,347 | $155,785 |
| Class T | 106,306 | 27,108 |
| Class B | 996 | – |
| Class C | 64,383 | – |
| International Small Cap | 10,307,620 | 7,454,709 |
| Class I | 134,439 | 24,926 |
| Total | $10,933,091 | $7,662,528 |
| From net realized gain | ||
| Class A | $788,825 | $3,382,206 |
| Class T | 339,739 | 1,671,017 |
| Class B | 10,287 | 66,002 |
| Class C | 319,340 | 1,697,539 |
| International Small Cap | 21,811,338 | 109,040,767 |
| Class I | 270,625 | 1,049,303 |
| Total | $23,540,154 | $116,906,834 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended October 31, 2016 | Year ended October 31, 2015 | Year ended October 31, 2016 | Year ended October 31, 2015 | |
| Class A | ||||
| Shares sold | 622,254 | 432,152 | $13,846,907 | $9,990,970 |
| Reinvestment of distributions | 49,226 | 159,613 | 1,077,561 | 3,404,539 |
| Shares redeemed | (383,922) | (331,016) | (8,560,022) | (7,450,558) |
| Net increase (decrease) | 287,558 | 260,749 | $6,364,446 | $5,944,951 |
| Class T | ||||
| Shares sold | 133,036 | 124,085 | $2,846,482 | $2,869,552 |
| Reinvestment of distributions | 20,220 | 77,005 | 440,798 | 1,636,354 |
| Shares redeemed | (139,487) | (146,828) | (3,059,683) | (3,289,706) |
| Net increase (decrease) | 13,769 | 54,262 | $227,597 | $1,216,200 |
| Class B | ||||
| Shares sold | 2,210 | 4,667 | $44,410 | $108,058 |
| Reinvestment of distributions | 493 | 2,954 | 10,648 | 62,128 |
| Shares redeemed | (20,270) | (10,732) | (435,806) | (240,945) |
| Net increase (decrease) | (17,567) | (3,111) | $(380,748) | $(70,759) |
| Class C | ||||
| Shares sold | 222,957 | 196,292 | $4,942,382 | $4,379,607 |
| Reinvestment of distributions | 16,869 | 71,584 | 358,801 | 1,488,229 |
| Shares redeemed | (226,514) | (268,981) | (4,770,771) | (5,818,752) |
| Net increase (decrease) | 13,312 | (1,105) | $530,412 | $49,084 |
| International Small Cap | ||||
| Shares sold | 11,991,539 | 7,876,402 | $277,123,750 | $184,799,928 |
| Reinvestment of distributions | 1,408,054 | 5,231,399 | 31,286,953 | 113,102,853 |
| Shares redeemed | (11,188,601) | (11,138,439) | (253,612,350) | (253,855,534) |
| Net increase (decrease) | 2,210,992 | 1,969,362 | $54,798,353 | $44,047,247 |
| Class I | ||||
| Shares sold | 924,076 | 256,693 | $21,994,159 | $5,987,647 |
| Reinvestment of distributions | 16,670 | 46,102 | 373,252 | 1,003,648 |
| Shares redeemed | (443,477) | (188,812) | (9,841,165) | (4,455,310) |
| Net increase (decrease) | 497,269 | 113,983 | $12,526,246 | $2,535,985 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Small Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Small Cap Fund (the Fund), a fund of Fidelity Investment Trust, including the schedule of investments, as of October 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Small Cap Fund as of October 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 15, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 170 funds. Mr. Chiel oversees 120 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), and as a member of the Independent Directors Council (IDC) Governing Council (2010-2015). Mr. Dirks is a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as Chairman (2014-present) and a member (2010-present) of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes) and a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association and as a member of the Board of Directors for The Western Union Company (global money transfer, 2006-2011), The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), and Earth Fare, Inc. (retail grocery, 2010-2014).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of Artis-Naples in Naples, Florida (2012-present), a member of the Council on Foreign Relations (1994-present), and a member of the Board of Governors, State University System of Florida (2013-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Robert W. Selander (1950)
Year of Election or Appointment: 2011
Trustee
Mr. Selander also serves as Trustee of other Fidelity® funds. Mr. Selander serves as a Director of The Western Union Company (global money transfer, 2014-present) and a non-executive Chairman of Health Equity, Inc. (health savings custodian, 2015-present). Previously, Mr. Selander served as a Member of the Advisory Board of certain Fidelity® funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2001
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Previously, Mr. Goebel served as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016), Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
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 (May 1, 2016 to October 31, 2016).
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 Expense Ratio-A | Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During Period-B May 1, 2016 to October 31, 2016 |
|
| Class A | 1.57% | |||
| Actual | $1,000.00 | $1,059.60 | $8.13 | |
| Hypothetical-C | $1,000.00 | $1,017.24 | $7.96 | |
| Class T | 1.86% | |||
| Actual | $1,000.00 | $1,058.20 | $9.62 | |
| Hypothetical-C | $1,000.00 | $1,015.79 | $9.42 | |
| Class C | 2.36% | |||
| Actual | $1,000.00 | $1,055.10 | $12.19 | |
| Hypothetical-C | $1,000.00 | $1,013.27 | $11.94 | |
| International Small Cap | 1.28% | |||
| Actual | $1,000.00 | $1,061.30 | $6.63 | |
| Hypothetical-C | $1,000.00 | $1,018.70 | $6.50 | |
| Class I | 1.30% | |||
| Actual | $1,000.00 | $1,060.80 | $6.73 | |
| Hypothetical-C | $1,000.00 | $1,018.60 | $6.60 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity International Small Cap 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 International Small Cap Fund | ||||
| Class A | 12/12/16 | 12/09/16 | $0.276 | $0.289 |
| Class T | 12/12/16 | 12/09/16 | $0.186 | $0.289 |
| Class C | 12/12/16 | 12/09/16 | $0.081 | $0.289 |
| Fidelity International Small Cap Fund | 12/12/16 | 12/09/16 | $0.340 | $0.289 |
| Class I | 12/12/16 | 12/09/16 | $0.370 | $0.289 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended October 31, 2016, $10,536,653, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 99%; Class T, Class B, and Class C designates 100%; Fidelity International Small Cap Fund designates 90%; and Class I designates 87% of the dividend distributed in December, 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 | |
| Fidelity International Small Cap Fund | |||
| Class A | 12/07/15 | $0.4128 | $0.0448 |
| Class T | 12/07/15 | $0.3558 | $0.0448 |
| Class B | 12/07/15 | $0.2218 | $0.0448 |
| Class C | 12/07/15 | $0.2868 | $0.0448 |
| Fidelity International Small Cap Fund | 12/07/15 | $0.4548 | $0.0448 |
| Class I | 12/07/15 | $0.4698 | $0.0448 |
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Small Cap Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2016 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) broadening eligibility requirements for certain lower-priced share classes of, and streamlining the fee structure for, certain existing equity index funds; (v) lowering expense caps for certain existing funds and classes to reduce expenses paid by shareholders; (vi) eliminating redemption fees for certain variable insurance product funds and classes; (vii) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (viii) launching a lower cost share class for use by the Freedom Index Fund product line; (ix) rationalizing product lines and gaining increased efficiencies through fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; (xi) implementing investment enhancements to further strengthen Fidelity's target date product line to increase investors' probability of success in achieving their goals; (xii) accelerating the conversion of all remaining Class B shares to Class A shares, which have a lower expense structure; and (xiii) implementing changes to Fidelity's money market fund product line in response to recent regulatory reforms. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history. The Board noted that there was a portfolio management change for the fund in March 2014.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund, for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe. Returns of the benchmark index are "net MA," i.e., adjusted for tax withholding rates applicable to U.S.-based funds organized as Massachusetts business trusts.Fidelity International Small Cap Fund
Fidelity International Small Cap Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
ISC-ANN-1216
1.793585.113
Item 2.
Code of Ethics
As of the end of the period, October 31, 2016, Fidelity Investment Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund, Fidelity Global Equity Income Fund, Fidelity International Small Cap Fund, Fidelity International Small Cap Opportunities Fund, Fidelity International Value Fund, Fidelity Series Emerging Markets Fund, Fidelity Series International Small Cap Fund, Fidelity Series International Value Fund, and Fidelity Total International Equity Fund (the “Funds”):
Services Billed by Deloitte Entities
October 31, 2016 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund | $52,000 | $- | $6,300 | $1,400 |
Fidelity Global Equity Income Fund | $49,000 | $- | $6,200 | $1,300 |
Fidelity International Small Cap Fund | $60,000 | $- | $7,200 | $1,600 |
Fidelity International Small Cap Opportunities Fund | $53,000 | $- | $6,100 | $1,400 |
Fidelity International Value Fund | $51,000 | $- | $6,100 | $1,400 |
Fidelity Series Emerging Markets Fund | $45,000 | $- | $7,500 | $1,600 |
Fidelity Series International Small Cap Fund | $47,000 | $- | $6,100 | $1,400 |
Fidelity Series International Value Fund | $47,000 | $- | $6,100 | $1,700 |
Fidelity Total International Equity Fund | $62,000 | $- | $7,000 | $1,600 |
October 31, 2015 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund | $51,000 | $- | $6,000 | $600 |
Fidelity Global Equity Income Fund | $47,000 | $- | $6,000 | $600 |
Fidelity International Small Cap Fund | $127,000 | $- | $6,900 | $800 |
Fidelity International Small Cap Opportunities Fund | $52,000 | $- | $5,800 | $800 |
Fidelity International Value Fund | $50,000 | $- | $5,800 | $700 |
Fidelity Series Emerging Markets Fund | $44,000 | $- | $7,200 | $3,000 |
Fidelity Series International Small Cap Fund | $46,000 | $- | $5,800 | $1,200 |
Fidelity Series International Value Fund | $46,000 | $- | $5,800 | $3,300 |
Fidelity Total International Equity Fund | $60,000 | $- | $6,700 | $700 |
A Amounts may reflect rounding.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Emerging Markets Discovery Fund, Fidelity Global Commodity Stock Fund, Fidelity International Discovery Fund, Fidelity International Growth Fund, Fidelity Series International Growth Fund, and Fidelity Total Emerging Markets Fund (the “Funds”):
Services Billed by PwC
October 31, 2016 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Emerging Markets Discovery Fund | $59,000 | $- | $5,500 | $2,500 |
Fidelity Global Commodity Stock Fund | $46,000 | $- | $3,000 | $1,900 |
Fidelity International Discovery Fund | $87,000 | $- | $14,400 | $3,800 |
Fidelity International Growth Fund | $62,000 | $- | $6,300 | $2,700 |
Fidelity Series International Growth Fund | $53,000 | $- | $16,800 | $2,900 |
Fidelity Total Emerging Markets Fund | $67,000 | $- | $4,600 | $2,700 |
October 31, 2015 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Emerging Markets Discovery Fund | $56,000 | $- | $5,200 | $1,800 |
Fidelity Global Commodity Stock Fund | $45,000 | $- | $3,200 | $1,800 |
Fidelity International Discovery Fund | $82,000 | $- | $23,500 | $5,700 |
Fidelity International Growth Fund | $59,000 | $- | $5,500 | $2,200 |
Fidelity Series International Growth Fund | $59,000 | $- | $10,500 | $6,200 |
Fidelity Total Emerging Markets Fund | $63,000 | $- | $4,400 | $1,800 |
A Amounts may reflect rounding.
The following table presents fees billed by PwC and Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| October 31, 2016A | October 31, 2015A |
Audit-Related Fees | $40,000 | $- |
Tax Fees | $- | $10,000 |
All Other Fees | $- | $60,000 |
A Amounts may reflect rounding.
Services Billed by PwC
| October 31, 2016A | October 31, 2015A |
Audit-Related Fees | $5,775,000 | $3,465,000 |
Tax Fees | $10,000 | $- |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC and Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | October 31, 2016 A | October 31, 2015 A |
PwC | $6,620,000 | $4,835,000 |
Deloitte Entities | $140,000 | $240,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC and Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of PwC and Deloitte Entities in their audits of the Funds, taking into account representations from PwC and Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding their independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
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 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 trust’s 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) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(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/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | December 28, 2016 |
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/ Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | December 28, 2016 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
|
|
Date: | December 28, 2016 |