Interim Report and Financial Statements
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Fidelity Investment Funds Interim Report and Financial Statements For the six months ended 31 August 2017 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2017 Contents Director’s Report* 2 General Information* 3 Statement of Authorised Corporate Director’s Responsibilities 3 Director’s statement 3 Authorised Fund Manager’s Report* and Financial Statements Market Performance Review 4 Accounting Policies of Fidelity Investment Funds and its sub-funds 6 Fidelity American Fund 7 Fidelity American Special Situations Fund 9 Fidelity Asia Fund 11 Fidelity Asia Pacific Opportunities Fund 13 Fidelity Asian Dividend Fund 15 Fidelity Cash Fund 18 Fidelity China Consumer Fund 21 Fidelity Emerging Asia Fund 23 Fidelity Emerging Europe, Middle East and Africa Fund 25 Fidelity Enhanced Income Fund 27 Fidelity European Fund 31 Fidelity European Opportunities Fund 34 Fidelity Extra Income Fund 36 Fidelity Global Dividend Fund 40 Fidelity Global Enhanced Income Fund 44 Fidelity Global Focus Fund 48 Fidelity Global High Yield Fund 50 Fidelity Global Property Fund 55 Fidelity Global Special Situations Fund 58 Fidelity Index Emerging Markets Fund 60 Fidelity Index Europe ex UK Fund 63 Fidelity Index Japan Fund 66 Fidelity Index Pacific ex Japan Fund 69 Fidelity Index UK Fund 72 Fidelity Index US Fund 75 Fidelity Index World Fund 78 Fidelity Japan Fund 81 Fidelity Japan Smaller Companies Fund 83 Fidelity MoneyBuilder Balanced Fund 85 Fidelity MoneyBuilder Dividend Fund 88 Fidelity MoneyBuilder Growth Fund 92 Fidelity MoneyBuilder Income Fund 95 Fidelity Short Dated Corporate Bond Fund 100 Fidelity Special Situations Fund 103 Fidelity Sterling Core Plus Reduced Duration Bond Fund 105 Fidelity Strategic Bond Fund 107 Fidelity UK Select Fund 111 Fidelity UK Smaller Companies Fund 113 Portfolio Statements 115 Total Purchases and Sales 320 EU Securities Financing Transaction Regulation Tables 321 Further information* 325 * These collectively comprise the Authorised Corporate Director’s (ACD) report. 1 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2017 Each fund has the investment powers equivalent to those of an undertaking Director’s Report for collective investment in transferable securities (a UCITS) scheme as per the Prospectus. We are pleased to present the interim report and financial statements for Shareholders are not liable for the debts of the Company. A shareholder is not Fidelity Investment Funds (the Company), covering the six month period to 31 liable to make any further payment to the Company after they have paid the August 2017. purchase price of the shares. Company and Status The Company is governed by the requirements of the Open-Ended Investment The Company is an open-ended investment company with variable capital Companies Regulations 2001 (SI 2001/1228) (“OEIC Regulations”) and the FCA’s incorporated in England and Wales under number IC8 and authorised by the Handbook of rules and guidance, specifically the Collective Investment Schemes Financial Conduct Authority (FCA) on 7 April 1998. sourcebook (COLL). As permitted by the COLL, the Company no longer holds The Company is structured as an umbrella company comprising various Annual General Meetings. funds, each of which is operated as a distinct fund, with their own portfolio of The Company has segregated liability status between funds. This means that investments. the assets of a fund belong exclusively to that fund and shall not be used to The funds in which shares are currently available are: discharge directly or indirectly the liability of, or claims against, any other person or body, including the Company, or any other fund. Fidelity American Fund Reference in this document to specific securities should not be construed as a Fidelity American Special Situations Fund recommendation to buy or sell these securities; but is included for the purpose Fidelity Asia Fund of illustration only. Investors should also note that the views expressed may no Fidelity Asia Pacific Opportunities Fund longer be current and may already have been acted upon by Fidelity. Fidelity Asian Dividend Fund Holdings in other sub-funds within the same Company Fidelity Cash Fund There were no cross sub-fund holdings as at 31 August 2017. Fidelity China Consumer Fund Objectives Fidelity Emerging Asia Fund The broad aim of the Company is to provide investors with revenue and/or Fidelity Emerging Europe, Middle East and Africa Fund capital growth over the medium to long term. Fidelity Enhanced Income Fund The aim of the equity funds is to provide investors with either a combination Fidelity European Fund of revenue and long term capital growth or long term capital growth from diversified, actively and passively managed portfolios of securities in a wide Fidelity European Opportunities Fund range of stock markets. The revenue from those funds with a long term capital Fidelity Extra Income Fund growth structure is expected to be low. The equity funds will invest primarily Fidelity Global Dividend Fund in equities in the markets reflected in the title of each individual fund and in Fidelity Global Enhanced Income Fund companies established outside those markets but which derive a significant proportion of their earnings from those markets. Fidelity Global Focus Fund The aim of the bond funds is to provide investors with relatively high revenue Fidelity Global High Yield Fund with the possibility of capital gains. Fidelity Global Property Fund The investment objective and a review of the investment activities of Fidelity Global Special Situations Fund each fund during the year under review are included within the Fund Fidelity Index Emerging Markets Fund Manager Reviews. Fidelity Index Europe ex UK Fund Changes to the prospectus Fidelity Index Japan Fund For the six months ended 31 August 2017 the following significant changes were Fidelity Index Pacific ex Japan Fund made to the Prospectus and Instrument of Incorporation: Fidelity Index UK Fund • Effective from 6 April 2017, all interest distributions from UK authorised Funds Fidelity Index US Fund will be paid gross i.e. without a requirement to deduct basic rate income tax (currently 20%). Fidelity Index World Fund Fidelity Japan Fund Fidelity Japan Smaller Companies Fund Fidelity MoneyBuilder Balanced Fund Fidelity MoneyBuilder Dividend Fund Fidelity MoneyBuilder Growth Fund Fidelity MoneyBuilder Income Fund Fidelity Short Dated Corporate Bond Fund Fidelity Special Situations Fund Fidelity Sterling Core Plus Reduced Duration Bond Fund Fidelity Strategic Bond Fund Fidelity UK Select Fund Fidelity UK Smaller Companies Fund In the future additional funds or new classes of shares within the existing funds may be launched by the ACD. 2 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2017 General information Statement of Authorised Corporate Director’s (ACD) Responsibilities in relation to the Report and Financial Fidelity Investment Funds Registered Office Statements of the Company Oakhill House 130 Tonbridge Road The Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) and Hildenborough Collective Investment Schemes sourcebook (COLL) require the ACD to prepare Tonbridge financial statements for each annual and half-yearly accounting period which Kent TN11 9DZ give a true and fair view of the financial position of the Company and of its net United Kingdom revenue and net capital gains or losses on the property of the Company for the www.fidelity.co.uk year. In preparing the financial statements the ACD is required to: Authorised and regulated in the UK by the Financial Conduct Authority. • select suitable accounting policies and then apply them consistently Authorised Corporate Director (ACD), Investment Manager, General • comply with the requirements of the UK Financial Reporting Standard Distributor, Administrator and Registrar 102 (FRS 102) and the Statement of Recommended Practice for Financial FIL Investment Services (UK) Limited Statements of Authorised Funds issued by the Investment Management Oakhill House Association (IMA) in May 2014, the COLL, the Prospectus and the Instrument 130 Tonbridge Road of Incorporation Hildenborough • follow generally accepted accounting principles and applicable accounting Tonbridge Kent TN11 9DZ standards United Kingdom • keep proper accounting records which enable it to demonstrate that the The ACD is FIL Investment Services (UK) Limited and Is the sole director. financial statements as prepared comply with the above requirements Authorised and regulated in the UK by the Financial Conduct Authority. • prepare the financial statements on the going concern basis unless it is Registered in England and Wales No 2016555 inappropriate to presume the Company will continue in operation Depositary • take reasonable steps for the prevention and detection of fraud or other J.P. Morgan Europe Limited irregularities. Registered Office: 25 Bank Street London E14 5JP Director’s statement United Kingdom Head Office: In accordance with the requirements of the COLL as issued and amended by the Chaseside Financial Conduct Authority, the report and financial statements are approved Bournemouth on behalf of the Directors of FIL Investment Services (UK) Limited, the ACD. Dorset BH7 7DA United Kingdom Authorised and regulated in the UK by the Financial Conduct Authority. Independent Auditors PricewaterhouseCoopers LLP 7 More London Riverside London SE1