Fidelity Investment Funds Interim Report and Financial Statements For the six months ended 31 August 2018 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2018 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, including the financial highlights and financial statements Market Performance Review 4 Accounting Policies of Fidelity Investment Funds and its sub-funds 5 Fidelity American Fund 6 Fidelity American Special Situations Fund 8 Fidelity Asia Fund 10 Fidelity Asia Pacific Opportunities Fund 12 Fidelity Asian Dividend Fund 14 Fidelity Cash Fund 16 Fidelity China Consumer Fund 18 Fidelity Emerging Asia Fund 20 Fidelity Emerging Europe, Middle East and Africa Fund 22 Fidelity Enhanced Income Fund 24 Fidelity European Fund 26 Fidelity European Opportunities Fund 28 Fidelity Extra Income Fund 30 Fidelity Global Dividend Fund 32 Fidelity Global Enhanced Income Fund 34 Fidelity Global Focus Fund 36 Fidelity Global High Yield Fund 38 Fidelity Global Property Fund 40 Fidelity Global Special Situations Fund 42 Fidelity Index Emerging Markets Fund 44 Fidelity Index Europe ex UK Fund 46 Fidelity Index Japan Fund 48 Fidelity Index Pacific ex Japan Fund 50 Fidelity Index UK Fund 52 Fidelity Index US Fund 54 Fidelity Index World Fund 56 Fidelity Japan Fund 58 Fidelity Japan Smaller Companies Fund 60 Fidelity MoneyBuilder Balanced Fund 62 Fidelity MoneyBuilder Dividend Fund 64 Fidelity MoneyBuilder Growth Fund 66 Fidelity MoneyBuilder Income Fund 68 Fidelity Short Dated Corporate Bond Fund 70 Fidelity Special Situations Fund 72 Fidelity Sterling Core Plus Reduced Duration Bond Fund 74 Fidelity Strategic Bond Fund 76 Fidelity UK Select Fund 78 Fidelity UK Smaller Companies Fund 80 Portfolio Statements* 82 Total Purchases and Sales 289 EU Securities Financing Transaction Regulation Tables 290 Further information* 293 * 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 2018 In the future additional funds or new classes of shares within the existing funds Director’s Report may be launched by the ACD. Each fund has the investment powers equivalent to those of an undertaking We are pleased to present the interim report and financial statements for for collective investment in transferable securities (a UCITS) scheme as per the Fidelity Investment Funds (the Company), covering the six month period to 31 Prospectus. August 2018. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities; but is included Shareholders are not liable for the debts of the Company. A shareholder is not for the purpose of illustration only. Investors should also note that the views liable to make any further payment to the Company after they have paid the expressed may no longer be current and may already have been acted upon purchase price of the shares. by Fidelity. The Company is governed by the requirements of the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (“OEIC Regulations”) and the FCA’s Company and Status Handbook of rules and guidance, specifically the COLL. As permitted by the The Company is an open-ended investment company with variable capital COLL, the Company no longer holds Annual General Meetings. incorporated in England and Wales under number IC8 and authorised by the The Company has segregated liability status between funds. This means that Financial Conduct Authority (FCA) on 7 April 1998. the assets of a fund belong exclusively to that fund and shall not be used to The Company is structured as an umbrella company comprising various discharge directly or indirectly the liability of, or claims against, any other person funds, each of which is operated as a distinct fund, with their own portfolio of or body, including the Company, or any other fund. investments. Remuneration Disclosure The funds in which shares are currently available are: The Fidelity International Remuneration Committee has established a Global Fidelity American Fund Remuneration Policy to ensure the requirements of the UCITS Directive are met Fidelity American Special Situations Fund at a global level for all of its UCITS management companies. The Remuneration Fidelity Asia Fund Committee reviews the remuneration policy at least annually. The Directors Fidelity Asia Pacific Opportunities Fund of relevant management companies are responsible for the adoption of the Global Remuneration Policy, for reviewing its general principles at least Fidelity Asian Dividend Fund annually, for overseeing its Implementation and for ensuring compliance with Fidelity Cash Fund the relevant local legislation and regulation. The Global Remuneration Policy Fidelity China Consumer Fund is consistent with and promotes sound and effective risk management and is designed not to encourage risk-taking which is inconsistent with the risk profile Fidelity Emerging Asia Fund of the funds. The Global Remuneration Policy is in line with the business strategy, Fidelity Emerging Europe, Middle East and Africa Fund objectives, values and interests of the ACD and the funds and includes measures Fidelity Enhanced Income Fund to avoid conflicts of interest. Fidelity European Fund During 2017 the Global Remuneration Policy was reviewed and changes were made to ensure compliance with the applicable European remuneration Fidelity European Opportunities Fund requirements. The Global Remuneration Policy applies to all employees, with Fidelity Extra Income Fund particular focus on staff whose professional activities have a material impact Fidelity Global Dividend Fund on the risk profile of the ACD or the funds (the Material Risk Takers). The UCITS Fidelity Global Enhanced Income Fund Material Risk Takers (“UCITS MRTs”) are individuals whose roles can materially affect the risk of the management company or any UCITS Directive and Fidelity Global Focus Fund guidance issued by the European Securities and Markets Authority. Fidelity Global High Yield Fund The aggregate total remuneration paid out to UCITS MRTs related to FISL, Fidelity Global Property Fund considering all the existing delegation arrangements, in respect of the Fidelity Global Special Situations Fund performance period started 1 June 2017 and ended 30 June 2018 is EUR 20.6 million. This figure includes the amounts attributed either to the FISL entity Fidelity Index Emerging Markets Fund or to the UCITS funds that it manages. For any additional information on the Fidelity Index Europe ex UK Fund remuneration policy a copy of the summary Remuneration Policy are available Fidelity Index Japan Fund via https://www.fil.com. Fidelity Index Pacific ex Japan Fund Holdings In other sub-funds within the same Company Fidelity Index UK Fund There were no such holdings as at 31 August 2018 (2017: none). Fidelity Index US Fund Objectives Fidelity Index World Fund The broad aim of the Company is to provide investors with revenue and/or Fidelity Japan Fund capital growth over the medium to long term. Fidelity Japan Smaller Companies Fund The aim of the equity funds is to provide investors with either a combination Fidelity MoneyBuilder Balanced 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 MoneyBuilder Dividend Fund range of stock markets. The revenue from those funds with a long term capital Fidelity MoneyBuilder Growth Fund growth structure is expected to be low. The equity funds will invest primarily Fidelity MoneyBuilder Income Fund in equities in the markets reflected in the title of each individual fund and in Fidelity Short Dated Corporate Bond Fund companies established outside those markets but which derive a significant proportion of their earnings from those markets. Fidelity Special Situations Fund The aim of the bond funds is to provide investors with relatively high revenue Fidelity Sterling Core Plus Reduced Duration Bond Fund with the possibility of capital gains. Fidelity Strategic Bond Fund The investment objective and a review of the investment activities of Fidelity UK Select Fund each fund during the period under review are included within the Fund Fidelity UK Smaller Companies Fund Manager Reviews. 2 Fidelity Investment Funds Interim Report and Financial Statements for the six month period ended 31 August 2018 Changes to the prospectus For the six months ended 31 August 2018 the following significant changes were Statement of Authorised Corporate Director’s (ACD) made to the Prospectus and Instrument of Incorporation: Responsibilities in relation to the Report and Financial • The Fidelity Global High Yield Fund’s Gross paying A Income, Gross paying Statements of the Company Y Accumulation and Gross paying Y Income Share classes converted into The Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) and A Income, Y Accumulation and Y Income share classes respectively on Collective Investment Schemes sourcebook (COLL) require the ACD to prepare 1 May 2018. financial statements for each annual and half-yearly accounting period which • The Fidelity Short Dated Corporate Bond Fund Gross paying Y Accumulation give a true and fair view of the financial position of the Company and of its net Shares changed