MPR.en.xx.20210831.LU0048580004.pdf For Investment Professionals Only FIDELITY FUNDS MONTHLY PERFORMANCE REVIEW GERMANY FUND A-EURO 31 AUGUST 2021 Portfolio manager: Christian von Engelbrechten, Tom Ackermans Performance over month in EUR (%) Performance for 12 month periods in EUR (%) Fund 1.8 Market index 1.9 Deutsche Boerse HDAX Total Return Index Market index is for comparative purposes only. Source of fund performance is Fidelity. Basis: nav-nav with income reinvested, in EUR, net of fees. Other share classes may be available. Please refer to the prospectus for more details. Fund Index Market Environment German equities, along with the broader European market, continued to rise in August, driven by strong quarterly earnings and optimism over an economic recovery, supported by high rates of vaccination. At the annual Jackson Hole Symposium, US Fed Chair Jerome Powell indicated that the central bank is in no rush to tighten its monetary policy. However, gains were capped as data showed that inflation surged to a 10-year high in August, and that further rises were likely, challenging the European Central Bank's (ECB) benign view on price growth. Consumer prices saw an increase of 3% this month (2.2% in July), well above the ECB’s target of 2%, fuelled by rising costs of energy, food and industrial goods. However, the ECB argues that the majority of the inflation increase can be attributed to supply chain constraints and should ease by early next year. There were increased uncertainties surrounding the ECB’s next steps regarding the future of its asset purchase programme, as differences over when to relax stimulus measures grew within the governing council. Almost all sectors posted positive returns, with technology, health care and utilities leading the way. Conversely, consumer discretionary lagged the market. From an investment style perspective, quality and growth outperformed value stocks. Meanwhile, small-cap companies outperformed their mid and large-cap counterparts. Fund Performance The fund returned 1.8% while the index returned 1.9% in August. Stock selection in software/technology, selected health care and insurance companies combined with the underweight stance in automobiles contributed to returns. Conversely, some holdings in industrials and financial services held back gains. Semiconductor manufacturer Infineon Technologies was a key contributor to performance. Its shares rose along with the broader semiconductor industry as market participants remained positive on semiconductor demand. Health care software provider Compugroup Medical rose following solid second quarter results, with revenues/operating income significantly beating consensus estimates. The underweight stance in automobile proved positive, as chip shortages continue to impact production volumes. Selected positions in health care and insurance companies also supported performance. In health care, the holding in life sciences conglomerate Merck rose after it received US Food and Drug Administration (FDA) approvals for two kidney cancer drugs this month. Reinsurer Hannover Re’s second quarter results exceeded expectations, with better than expected earnings both in the property & casualty and life & health segments. This was partially offset by the position in Allianz, which fell despite reporting solid second quarter results and raising its full-year guidance. The stock came under pressure as the US Department of Justice (DOJ) launched an investigation into the firm’s structured alpha funds to determine whether a misrepresentation of risk to investors had taken place. Though the share price is likely to be subdued in the near term, we believe the litigation risk is more than priced in, while the launch of a share buyback programme suggests that management is confident in its capital resilience. In industrials, the underweight stance in industrial conglomerate Siemens hurt relative performance, as its shares rose on the back of strong sales growth in the third quarter (despite digital industries margins being a little underwhelming). In financial services, shares in online brokerage firm Flatex declined following disappointing preliminary second quarter results, which confirmed slowing market dynamics, showing a more aggressive normalisation than expected. Fund Positioning The market upswing since the sell-off in the first quarter of 2020 has been very strong, pricing in a swift economic recovery and reflecting high expectations, particularly for cyclicals. However, as we enter the second half of 2021, earnings comparisons to prior reporting periods will get tougher. Of late, sentiment in Germany has started to deteriorate (for the fourth month in a row in September) as investors expect raw material scarcity and chip shortages to slow the recovery in Europe's largest economy. Longer term, the manager expects overhangs of this pandemic (such as higher corporate and consumer debt, rising taxes to offset the COVID-19 burden and potentially rising insolvencies). Against this backdrop, it is worth noting that given the fund’s focus on quality growth, i.e. businesses that can generate sustainable returns over the long term irrespective of the macroeconomic backdrop, it is significantly underweight cyclical businesses such as automobile manufacturers and chemical firms, which are particularly affected by shortage issues. Instead, the fund favours the steady growth, value creation and payout offered by the health care sector, which currently presents interesting opportunities and represents the largest exposure in the portfolio. The manager also finds attractive opportunities among software and insurance companies, which offer good growth and return potential. Important Information Past performance is not a reliable indicator of future results. The fund's returns can be affected by fluctuations in currency exchange rates. The value of investments and any income from them may go down as well as up and an investor may not get back the amount invested. The use of financial derivative instruments may result in increased gains or losses within the fund. MPR.en.xx.20210831.LU0048580004.pdf For Investment Professionals Only FIDELITY FUNDS MONTHLY PERFORMANCE REVIEW GERMANY FUND A-EURO 31 AUGUST 2021 Attribution Performance attribution is produced in the currency shown below. For funds with multiple share classes, the attribution return reflects the aggregate performance across all the share classes. It may therefore deviate from the published return for a particular share class. When using the analysis for hedged share classes, please consider that the attribution is shown before the impact of hedging. The contributions shown in the tables are before the impact of charges. If charges are applied, their effect is captured in the “Other” category in the tables and will also be reflected in the fund return. All investments, including derivatives, linked to a particular issuing company have been combined to form a total percentage for each issuing company. The sector/industry and geographic contribution tables (where relevant) display a maximum of eleven individual entries. Where applicable, only top five and bottom five are listed, with the remaining contribution shown in the "Other Sectors" or “Others” category. Currency of attribution Euro (EUR) One month relative return (%) -0.02 Position Contribution (%) 1 month Average Relative Average Relative Relative Performance Relative Performance TOP CONTRIBUTORS Weight Contribution TOP DETRACTORS Weight Contribution DAIMLER AG -3.8 0.28 PORSCHE AUTOMOBIL HLDG SE 4.6 -0.39 MERCK KGAA 1.9 0.26 SIEMENS AG -4.9 -0.23 HANNOVER RUECK SA 2.6 0.20 FLATEX AG 1.1 -0.20 INFINEON TECHNOLOGIES AG 1.9 0.18 ALLIANZ SE 2.4 -0.17 COMPUGROUP MEDICAL SE 1.2 0.16 GRIFOLS SA 1.7 -0.15 BASF SE -3.8 0.11 MUNICH RE GROUP -2.1 -0.13 BAYERISCHE MOTR WERKE (BMW) AG -1.6 0.10 HELLOFRESH AG -0.9 -0.12 VOLKSWAGEN AG -2.3 0.10 RWE AG -1.3 -0.11 SIEMENS HEALTHINEERS AG 2.3 0.09 FRESENIUS MED CRE AG & CO KGAA 2.3 -0.09 DELIVERY HERO SE -1.4 0.07 ADIDAS AG 2.5 -0.09 Positions in other funds - including ETFs (Exchange Traded Funds) - can appear in this table, but index derivatives form part of an "Index / Unclassified" category which will appear in the table(s) below when relevant. Sector/Industry Contribution (%) 1 month CONTRIBUTIONS TO RELATIVE RETURN Average Sector/ Total Relative Security Industry Relative GICS Sector Weight Selection Selection Contribution Information Technology 3.3 0.03 0.21 0.24 Health Care 15.1 -0.10 0.26 0.16 Materials -11.1 0.08 0.05 0.13 Consumer Discretionary -1.5 -0.04 0.15 0.11 Real Estate 0.5 0.06 0.00 0.06 Consumer Staples -1.5 0.00 0.04 0.04 Energy 0.7 -0.06 0.00 -0.06 Communication Services -3.3 0.01 -0.10 -0.09 Financials 6.2 -0.06 -0.07 -0.13 Utilities -3.0 0.00 -0.18 -0.18 Industrials -6.4 -0.02 -0.27 -0.29 Index / Unclassified 0.0 0.00 0.00 0.00 Total Primary Assets -0.8 -0.11 0.11 0.00 Other* 0.8 -0.02 TOTAL 0.0 -0.02 *Other includes portfolio components not already listed such as cash, expenses and other miscellaneous items. MPR.en.xx.20210831.LU0048580004.pdf For Investment Professionals Only FIDELITY FUNDS MONTHLY PERFORMANCE REVIEW GERMANY FUND A-EURO 31 AUGUST 2021 Important Information This information must not be reproduced or circulated without prior permission. Fidelity International refers to the group of companies which form the global investment management organisation that provides information on products and services in designated jurisdictions outside of North America. Fidelity only offers information on its own products and services and does not provide investment advice based on individual circumstances, other than when specifically stipulated by an appropriately authorised firm, in a formal communication with the client. This communication is not directed at, and must not be acted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required.