Fidelity Frontier Emerging Markets ? Fidelity Frontier Emerging Markets Fund Semi-Annual Report ...

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  • Fidelity Frontier Emerging Markets Fund

    Semi-Annual ReportSeptember 30, 2017

    Notice to Readers The accompanying interim financial statements have not been reviewed by the external auditor of the Fund. The external auditor will be auditing the annual financial statements of the Fund in accordance with Canadian generally accepted auditing standards.

  • 2Semi-Annual Reportport

    See accompanying notes which are an integral part of the financial statements.

    Equities 98.6%Shares / Units Cost

    (000s)Market Value

    (000s)

    Argentina 7.0%FINANCIALS 6.1%Banco Macro SA

    sponsoredADR 12,050 $ 1,184 $ 1,764BBVA Banco Frances SA

    sponsoredADR 12,500 304 318Grupo Financiero Galicia

    SA sponsoredADR 25,471 1,050 1,638TOTAL FINANCIALS 2,538 3,720UTILITIES 0.9%Pampa Holding SA

    sponsoredADR 6,700 549 544

    TOTAL ARGENTINA 3,087 4,264

    Austria 0.6%FINANCIALS 0.6%Erste Group BankAG 6,500 323 350

    Bailiwick of Jersey 0.9%INDUSTRIALS 0.5%Wizz Air HoldingsPLC 6,357 262 304MATERIALS 0.4%Glencore XstrataPLC 46,800 209 267

    TOTAL BAILIWICK OF JERSEY 471 571

    Bangladesh 3.4%CONSUMER STAPLES 0.5%Olympic Industries Ltd. 70,078 345 290FINANCIALS 1.2%BRAC Bank Ltd. 324,798 303 424The City Bank Ltd. 492,230 235 342TOTAL FINANCIALS 538 766HEALTH CARE 1.1%Square Pharmaceuticals Ltd. 141,879 587 660MATERIALS 0.6%HeidelbergerCement

    Bangladesh Ltd. 52,152 438 340

    TOTAL BANGLADESH 1,908 2,056

    Bermuda 4.2%CONSUMER DISCRETIONARY 1.6%Central European Media

    Enterprises Ltd. ClassA 110,600 467 559Yue Yuen Industrial

    (Holdings) Ltd. 84,500 411 401TOTAL CONSUMER DISCRETIONARY 878 960FINANCIALS 2.6%Credicorp Ltd. (United

    States) 6,200 1,333 1,586

    TOTAL BERMUDA 2,211 2,546

    Fidelity Frontier Emerging MarketsFund

    Schedule of Investments September 30,2017 (Unaudited)Showing Percentage of Net Assets Attributable to Securityholders (Net Assets)

    Shares / Units Cost

    (000s)Market Value

    (000s)

    Brazil 1.6%CONSUMER DISCRETIONARY 0.5%International Meal Comp

    Holdings S.A. 74,900 $ 157 $ 315INDUSTRIALS 1.1%IochpeMaxion SA 41,200 296 349Randon Participacoes Sa

    (PN) 108,400 172 296TOTAL INDUSTRIALS 468 645

    TOTAL BRAZIL 625 960

    British Virgin Islands 0.6%CONSUMER DISCRETIONARY 0.6%Arcos Dorados Holdings,

    Inc. ClassA 27,900 203 350

    Canada 1.1%ENERGY 0.3%ShawCor Ltd. ClassA 7,800 251 215MATERIALS 0.8%Detour Gold Corp. 15,700 279 216Major Drilling Group

    International, Inc. 35,900 255 251TOTAL MATERIALS 534 467

    TOTAL CANADA 785 682

    Cayman Islands 1.1%CONSUMER DISCRETIONARY 0.5%Shenzhou International

    Group Holdings Ltd. 32,500 261 318INDUSTRIALS 0.6%SITC International Holdings

    Co. Ltd. 305,000 240 345

    TOTAL CAYMAN ISLANDS 501 663

    Chile 2.0%CONSUMER DISCRETIONARY 0.5%S.A.C.I. Falabella 26,321 266 319INDUSTRIALS 1.3%LATAM Airlines GroupSA 26,857 366 440Sociedad Matriz SAAMSA 2,590,220 284 343TOTAL INDUSTRIALS 650 783MATERIALS 0.2%CAP SA 10,000 144 130

    TOTAL CHILE 1,060 1,232

    China 1.1%CONSUMER STAPLES 0.5%Wuliangye Yibin Co. Ltd.

    ClassA 30,088 212 323

  • 3 Semi-Annual Report

    See accompanying notes which are an integral part of the financial statements.

    Equities continuedShares / Units Cost

    (000s)Market Value

    (000s)

    China continuedINDUSTRIALS 0.6%Zhengzhou Yutong Bus Co.

    Ltd. 76,700 $ 307 $ 354

    TOTAL CHINA 519 677

    Colombia 8.6%FINANCIALS 6.9%BancolombiaSA 188,718 2,146 2,629Grupo de Inversiones

    SuramericaSA 74,563 1,233 1,295Grupo de Inversiones

    SuramericaSA 17,682 288 302TOTAL FINANCIALS 3,667 4,226MATERIALS 1.7%Inversiones ArgosSA 112,569 952 1,010

    TOTAL COLOMBIA 4,619 5,236

    Greece 0.5%CONSUMER DISCRETIONARY 0.5%Fourlis HoldingsSA 35,600 226 309

    Hungary 1.3%ENERGY 0.6%MOL Hungarian Oil and

    Gas PLC Series A (For. Reg.) 25,600 361 363

    FINANCIALS 0.6%OTP Bank PLC 8,200 289 384HEALTH CARE 0.1%Richter GedeonPLC 2,000 62 62

    TOTAL HUNGARY 712 809

    India 0.9%CONSUMER DISCRETIONARY 0.5%Bajaj Auto Ltd. 5,124 277 304INFORMATION TECHNOLOGY 0.2%Redington India Ltd. 48,540 139 145UTILITIES 0.2%Gujarat State Petronet Ltd. 31,000 120 119

    TOTAL INDIA 536 568

    Indonesia 1.6%CONSUMER STAPLES 0.1%PT Kino IndonesiaTbk 656,300 225 102ENERGY 0.5%PT United TractorsTbk 107,000 255 317

    Shares / Units Cost

    (000s)Market Value

    (000s)

    FINANCIALS 1.0%PT Bank Danamon

    Indonesia Tbk SeriesA 540,800 $ 275 $ 261PT Bank Rakyat

    IndonesiaTbk 234,200 287 331TOTAL FINANCIALS 562 592

    TOTAL INDONESIA 1,042 1,011

    Kenya 2.8%FINANCIALS 0.8%KCB Group Ltd. 1,015,300 520 504TELECOMMUNICATION SERVICES 2.0%Safaricom Ltd. 4,054,100 1,030 1,214

    TOTAL KENYA 1,550 1,718

    Malaysia 0.6%CONSUMER DISCRETIONARY 0.6%Padini HoldingsBhd 284,000 231 382

    Morocco 1.7%FINANCIALS 1.0%Attijariwafa Bank 9,871 596 607REAL ESTATE 0.7%Douja Promotion Groupe

    AddohaSA 71,046 463 406

    TOTAL MOROCCO 1,059 1,013

    Nigeria 4.8%CONSUMER STAPLES 1.4%Nigerian BreweriesPLC 1,460,297 876 837FINANCIALS 2.9%Guaranty Trust BankPLC 6,708,405 670 933Zenith BankPLC 10,682,824 703 869TOTAL FINANCIALS 1,373 1,802MATERIALS 0.5%Dangote CementPLC 372,148 281 275

    TOTAL NIGERIA 2,530 2,914

    Oman 1.0%FINANCIALS 1.0%BankMuscat SAOG 464,633 653 593

    Pakistan 4.5%CONSUMER DISCRETIONARY 0.5%Indus Motor Co. Ltd. 14,330 258 292ENERGY 0.5%Shell Pakistan Ltd. 60,550 414 298FINANCIALS 2.2%MCB Bank Ltd. 293,800 827 727United Bank Ltd. 266,800 675 601TOTAL FINANCIALS 1,502 1,328

  • 4Semi-Annual Reportport

    See accompanying notes which are an integral part of the financial statements.

    Fidelity Frontier Emerging MarketsFundSchedule of Investments (Unaudited) continued

    Equities continuedShares / Units Cost

    (000s)Market Value

    (000s)

    Pakistan continuedINDUSTRIALS 0.1%Pak Electron Ltd. 70,000 $ 61 $ 63MATERIALS 1.2%Engro Corp. Ltd. 149,900 593 538Maple Leaf Cement Factory

    Ltd. 233,400 311 232Maple Leaf Cement Factory

    Ltd. rights 10/24/17 29,175 0 6TOTAL MATERIALS 904 776

    TOTAL PAKISTAN 3,139 2,757

    Peru 3.5%CONSUMER STAPLES 0.7%Alicorp SA ClassC 124,016 361 439INDUSTRIALS 0.8%FerreycorpSAA 440,000 357 358Grana y Montero SAA

    sponsoredADR 22,200 121 133TOTAL INDUSTRIALS 478 491MATERIALS 2.0%Cementos PacasmayoSAA 67,260 209 216Compania de Minas

    Buenaventura SA sponsoredADR 61,064 973 975

    TOTAL MATERIALS 1,182 1,191

    TOTAL PERU 2,021 2,121

    Philippines 14.7%CONSUMER DISCRETIONARY 0.9%Jollibee Food Corp. 95,150 560 569CONSUMER STAPLES 1.8%PUREGOLD Price Club, Inc. 250,000 291 320Universal Robina Corp. 204,880 1,003 768TOTAL CONSUMER STAPLES 1,294 1,088FINANCIALS 5.5%Ayala Corp. 71,630 1,500 1,704BDO Unibank, Inc. 514,860 1,565 1,650TOTAL FINANCIALS 3,065 3,354INDUSTRIALS 5.9%International Container

    Terminal Services, Inc. 155,000 405 395JG Summit Holdings, Inc. 758,440 1,463 1,395LT Group, Inc. 808,500 318 349SM Investments Corp. 67,630 1,190 1,464TOTAL INDUSTRIALS 3,376 3,603TELECOMMUNICATION SERVICES 0.6%Globe Telecom, Inc. 7,020 313 353

    TOTAL PHILIPPINES 8,608 8,967

    Shares / Units Cost

    (000s)Market Value

    (000s)

    Poland 1.8%CONSUMER DISCRETIONARY 0.9%Inter CarsSA 3,000 $ 314 $ 296LPP SA 100 232 279TOTAL CONSUMER DISCRETIONARY 546 575FINANCIALS 0.4%Kruk SA 2,739 177 275REAL ESTATE 0.5%Globe Trade CentreSA 88,000 243 284

    TOTAL POLAND 966 1,134

    Romania 3.0%FINANCIALS 3.0%Banca TransilvaniaSA 1,158,771 731 826BRDGroupe Societe

    Generale 178,909 695 715Fondul Propietatea SAGDR 23,600 317 325TOTAL FINANCIALS 1,743 1,866

    Slovenia 0.5%CONSUMER DISCRETIONARY 0.5%Petrol d.d., Ljubljana 569 272 301

    South Africa 5.3%CONSUMER DISCRETIONARY 0.5%Imperial Holdings Ltd. 17,600 262 310CONSUMER STAPLES 0.5%Shoprite Holdings Ltd. 15,500 266 296FINANCIALS 0.6%Sanlam Ltd. 55,700 364 347INDUSTRIALS 1.4%Barloworld Ltd. 26,700 222 306Grindrod Ltd. 202,800 242 258Murray & Roberts Holdings

    Ltd. 225,600 247 333TOTAL INDUSTRIALS 711 897MATERIALS 2.3%African Rainbow Minerals

    Ltd. 35,000 345 329DRDGOLD Ltd. 612,300 323 291Nampak Ltd. 310,800 567 504Pretoria Portland Cement

    Co. Ltd. 491,300 272 286TOTAL MATERIALS 1,507 1,410

    TOTAL SOUTH AFRICA 3,110 3,260

    Spain 1.1%FINANCIALS 0.6%Prosegur CashSA 106,200 326 399MATERIALS 0.5%Cemex Latam HoldingsSA 60,845 355 298

    TOTAL SPAIN 681 697

  • 5 Semi-Annual Report

    See accompanying notes which are an integral part of the financial statements.

    Equities continuedShares / Units Cost

    (000s)Market Value

    (000s)

    Sri Lanka 1.1%INDUSTRIALS 0.9%John Keells Holdings Ltd. 427,942 $ 575 $ 567MATERIALS 0.2%Chevron Lubricants Lanka

    Ltd. 96,228 149 96

    TOTAL SRI LANKA 724 663

    Taiwan 0.6%CONSUMER STAPLES 0.4%President Chain Store Corp. 25,000 307 262INFORMATION TECHNOLOGY 0.2%United Microelectronics

    Corp. 200,000 130 125

    TOTAL TAIWAN 437 387

    Thailand 1.3%CONSUMER DISCRETIONARY 0.4%MC Group PCL 422,500 244 242CONSUMER STAPLES 0.4%Thai BeveragePCL 327,500 256 271ENERGY 0.5%Star Petroleum Refining PCL

    unit 470,000 261 311

    TOTAL THAILAND 761 824

    United Arab Emirates 2.5%CONSUMER DISCRETIONARY 0.5%Dubai Parks and Resorts

    PJSC 1,128,913 448 291CONSUMER STAPLES 0.3%Agthia Group PJSC 113,541 267 205FINANCIALS 0.6%Dubai Financial Market

    PJSC 999,663 431 377INDUSTRIALS 1.1%Aramex Co. 202,265 321 342DP World Ltd. 11,386 330 319TOTAL INDUSTRIALS 651 661

    TOTAL UNITED ARAB EMIRATES 1,797 1,534

    United Kingdom 4.4%FINANCIALS 2.8%ALDREES Petroleum and

    Transport Services Co. ELS (HSBC Warrant Program) warrants 1/30/20 35,700 384 330

    Banque Saudi Fransi ELS (HSBC Bank Warrant Program) warrants 3/24/20 25,700 247 258

    BGEO GroupPLC 2,000 118 109

    Shares / Units Cost

    (000s)Market Value

    (000s)

    Bupa Arabia ELS (HSBC Warrant Program) warrants 10/19/18 5,475 $ 243 $ 215

    Fawaz Alhokair Group ELS (HSBC Bank Warrant Program) warrants 2/28/20 16,500 214 237

    The Savola Group ELS (HSBC Warrant Program) warrants 1/24/20 17,800 236 270

    United International Transportation Co. (HSBC Bank Warrant Program) warrants 7/8/20 40,817 292 318

    TOTAL FINANCIALS 1,734 1,737HEALTH CARE 0.9%Georgia Healthcare

    GroupPLC 44,600 247 220NMC HealthPLC 6,591 137 303TOTAL HEALTH CARE 384 523MATERIALS 0.7%AntofagastaPLC 28,500 390 452

    TOTAL UNITED KINGDOM 2,508 2,712

    Vietnam 6.9%CONSUMER STAPLES 2.7%Vietnam Dairy Products

    Corp. 198,630 1,580 1,627ENERGY 1.1%Petrovietnam Dr & Well

    SerJsc 447,320 508 348PetroVietnam Technical

    Services Corp. 344,800 344 309TOTAL ENERGY 852 657FINANCIALS 1.5%Bank For Foreign TradeJsc 302,383 614 624Saigon Securities, Inc. 228,210 284 314TOTAL FINANCIALS 898 938INDUSTRIALS 1.6%Binh Minh PlasticJSC 62,376 330 265Ho Chi Minh City

    Infrastructure InvestmentJSC 123,510 212 217

    Vietjet AviationJSC 84,000 452 499TOTAL INDUSTRIALS 994 981

    TOTAL VIETNAM 4,324 4,203TOTAL EQUITIES 55,942 60,330TOTAL INVESTMENT IN

    SECURITIES 98.6% $55,942 60,330

    NET OTHER ASSETS (LIABILITIES) 1.4% 835NET ASSETS 100% $ 61,165

  • 6Semi-Annual Reportport

    See accompanying notes which are an integral part of the financial statements.

    Fidelity Frontier Emerging MarketsFundSchedule of Investments (Unaudited) continued

    PresentationNotes Cost amount includes broker commissions and other trading expenses, ifany.

    Investment ValuationThe following is a summary of the inputs used, as of September 30, 2017 and March 31, 2017, involving the Funds 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 in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

    Valuation Inputs at September 30, 2017:Description Total Level 1 Level 2 Level 3(Amounts in thousands)Investments in Securities:Equities:

    Consumer Discretionary $ 5,837 $ 5,837 $ $ Consumer Staples 5,740 5,740 Energy 2,161 2,161 Financials 25,751 24,123 1,628 Health Care 1,245 1,245 Industrials 9,694 9,694 Information Technology 270 145 125 Materials 6,712 6,712 Real Estate 690 690 Telecommunication Services 1,567 1,567 Utilities 663 663

    Total Investments in Securities: $ 60,330 $ 58,577 $ 1,753 $

    Valuation Inputs at March 31, 2017:Description Total Level 1 Level 2 Level 3(Amounts in thousands)Investments in Securities:Equities:

    Consumer Discretionary $ 5,141 $ 5,141 $ $ Consumer Staples 5,477 5,477 Energy 2,553 2,553 Financials 20,673 19,373 1,300 Health Care 1,343 1,343 Industrials 8,016 8,016 Materials 5,663 5,454 209 Real Estate 1,259 1,259 Telecommunication Services 1,453 1,453 Utilities 452 452

    Total Investments in Securities: $ 52,030 $ 50,521 $ 1,509 $

    The following is a summary of transfers between Level 1 and Level 2 for the periods ended September 30, 2017. 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 Level2 $ 0Level 2 to Level1 $ 209

  • 7 Semi-Annual Report

    See accompanying notes which are an integral part of the financial statements.

    Financial Statements (Unaudited)

    Statements of Financial Position

    Amounts in thousands of Canadian Dollars (except per security amounts)

    As atSeptember 30,

    2017March 31,

    2017

    Current assets (Note 3)Investments at fair value through profit or loss $ 60,330 $ 52,030Cash 848 1,014Receivable for investments sold 255Other receivables 1 5Accrued interest and dividends receivable 211 206Subscriptions receivable 123 90

    61,513 53,600

    Current liabilities (Note 3)Payable for investments purchased 251 804Redemptions payable 31 11Management and advisory fees payable (Note 4) 35 30Other payables to affiliates (Note 4) 6 5Other payables and accrued expenses (Notes 4 and 5) 25 44

    348 894Net assets attributable to securityholders (Notes 3 and 6) $ 61,165 $ 52,706

    Net assets attributable to securityholders per Series and per security (Note 6)Series A: ($3,101 and $2,345, respectively) $ 17.80 $ 17.35

    Series B: ($14,672 and $14,270, respectively) $ 17.91 $ 17.43

    Series F: ($6,223 and $3,000, respectively) $ 19.31 $ 18.69

    Series O: ($31,392 and $30,196, respectively) $ 6.70 $ 6.44

    Series E1: ($1,306 and $1,103, respectively) $ 12.33 $ 11.99

    Series E2: ($177 and $96, respectively) $ 12.33 $ 11.99

    Series E3: ($178 and $1, respectively) $ 12.35 $ 12.02

    Series E4: ($1 and $1, respectively) $ 12.38 $ 12.03

    Series P1: ($2,532 and $814, respectively) $ 11.61 $ 11.23

    Series P2: ($809 and $880, respectively) $ 10.90 $ 10.54

    Series P3: ($773 and $, respectively) $ 10.12 $

    Series P4: ($1 and $, respectively) $ 9.77 $

  • 8Semi-Annual Reportport

    See accompanying notes which are an integral part of the financial statements.

    Financial Statements (Unaudited) continued

    Statements of Comprehensive Income

    Amounts in thousands of Canadian Dollars (except per security amounts)For the six-month periods ended September 30, (Note 1) 2017 2016

    Investment income (Note 3)Interest $ $ Dividends 932 260

    Net gain (loss) on investments Net realized gain (loss) on investments 862 430Change in net unrealized appreciation (depreciation) on investments 641 1,382

    1,503 1,812Net gain (loss) on foreign currencies

    Net realized gain (loss) on foreign currency transactions (106) (32)Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies 5 4

    (101) (28)Total investment income (loss) 2,334 2,044

    Operating expenses (Note 4)Management and advisory fees 203 168Administration fees 37 30Independent Review Committee fees Commissions and other portfolio costs 94 50Foreign taxes withheld (Note 5) 96 20Sales tax 27 22

    Total operating expenses 457 290Expenses waived (Note 4) (5) (4)

    Net operating expenses 452 286Net increase (decrease) in net assets attributable to securityholders from operations $ 1,882 $ 1,758

    Increase (decrease) in net assets attributable to securityholders from operations per Series (Note 3)Series A $ 64 $ 248

    Series B $ 391 $ 1,391

    Series F $ 134 $ 67

    Series O $ 1,195 $

    Series E1 $ 33 $ 47

    Series E2 $ 3 $ 3

    Series E3 $ 3 $

    Series E4 $ $

    Series P1 $ 32 $ 2

    Series P2 $ 22 $

    Series P3 $ 11 $

    Series P4 $ (6) $

    Increase (decrease) in net assets attributable to securityholders from operations per Series per security (Notes 3 and 6)Series A $ .43 $ 1.50

    Series B $ .48 $ 1.52

    Series F $ .52 $ 1.64

    Series O $ .25 $ .63

    Series E1 $ .34 $ .92

    Series E2 $ .39 $ 1.13

    Series E3 $ .51 $ 1.06

    Series E4 $ .35 $ 1.06

    Series P1 $ .20 $ .80

  • 9 Semi-Annual Report

    See accompanying notes which are an integral part of the financial statements.

    Statements of Comprehensive Income continued

    Amounts in thousands of Canadian Dollars (except per security amounts)For the six-month periods ended September 30, (Note 1) 2017 2016

    Series P2 $ .30 $

    Series P3 $ .19 $

    Series P4 $ (1.00) $

  • 10Semi-Annual Reportport

    See accompanying notes which are an integral part of the financial statements.

    Financial Statements (Unaudited) continued

    Statements of Changes in Net Assets Attributable to Securityholders

    Amounts in thousands of Canadian DollarsFor the six-month period ended September 30, 2017 (Note 1) Total Series A Series B Series F Series O Series E1Net assets attributable to securityholders, beginning of period $ 52,706 $ 2,345 $ 14,270 $ 3,000 $ 30,196 $ 1,103Increase (decrease) in net assets attributable to securityholders

    from operations 1,882 64 391 134 1,195 33

    Distributions to securityholders (Note 5)Management fee reduction (8) (6) (2)

    (8) (6) (2)

    Security transactions (Note 6)Proceeds from sale of securities 13,411 1,193 2,269 5,465 466Reinvestment of distributions 8 6 2 Amounts paid upon redemption of securities (6,834) (501) (2,258) (2,376) 1 (296)

    6,585 692 17 3,091 1 170Net assets attributable to securityholders, end of period $ 61,165 $ 3,101 $ 14,672 $ 6,223 $ 31,392 $ 1,306

    For the six-month period ended September 30, 2017 (Note 1) Series E2 Series E3 Series E4 Series P1 Series P2Net assets attributable to securityholders, beginning of period $ 96 $ 1 $ 1 $ 814 $ 880Increase (decrease) in net assets attributable to securityholders from operations 3 3 32 22

    Distributions to securityholders (Note 5)Management fee reduction

    Security transactions (Note 6)Proceeds from sale of securities 80 174 2,074 690Reinvestment of distributions Amounts paid upon redemption of securities (2) (388) (783)

    78 174 1,686 (93)Net assets attributable to securityholders, end of period $ 177 $ 178 $ 1 $ 2,532 $ 809

    For the six-month period ended September 30, 2017 (Note 1) Series P3 Series P4Net assets attributable to securityholders, beginning of period $ $ Increase (decrease) in net assets attributable to securityholders from operations 11 (6)

    Distributions to securityholders (Note 5)Management fee reduction

    Security transactions (Note 6)Proceeds from sale of securities 889 111Reinvestment of distributions Amounts paid upon redemption of securities (127) (104)

    762 7Net assets attributable to securityholders, end of period $ 773 $ 1

  • 11 Semi-Annual Report

    See accompanying notes which are an integral part of the financial statements.

    Statements of Changes in Net Assets Attributable to Securityholders continued

    For the six-month period ended September 30, 2016 (Note 1) Total Series A Series B Series F Series O Series E1Net assets attributable to securityholders, beginning of period $ 17,838 $ 2,655 $ 14,148 $ 600 $ 1 $ 428Increase (decrease) in net assets attributable to securityholders from

    operations 1,758 248 1,391 67 47

    Distributions to securityholders (Note 5)Management fee reduction (3) (3)

    (3) (3)

    Security transactions (Note 6)Proceeds from sale of securities 2,329 303 1,014 420 410Reinvestment of distributions 3 3 Amounts paid upon redemption of securities (3,245) (793) (2,143) (161) (145)

    (913) (490) (1,126) 259 265Net assets attributable to securityholders, end of period $ 18,680 $ 2,413 $ 14,410 $ 926 $ 1 $ 740

    For the six-month period ended September 30, 2016 (Note 1) Series E2 Series E3 Series E4 Series P1 Series P2Net assets attributable to securityholders, beginning of period $ 1 $ 1 $ 1 $ 3 $ Increase (decrease) in net assets attributable to securityholders from operations 3 2

    Distributions to securityholders (Note 5)Management fee reduction

    Security transactions (Note 6)Proceeds from sale of securities 82 100 Reinvestment of distributions Amounts paid upon redemption of securities (1) (2)

    81 98 Net assets attributable to securityholders, end of period $ 85 $ 1 $ 1 $ 103 $

    For the six-month period ended September 30, 2016 (Note 1) Series P3 Series P4Net assets attributable to securityholders, beginning of period $ $ Increase (decrease) in net assets attributable to securityholders from operations

    Distributions to securityholders (Note 5)Management fee reduction

    Security transactions (Note 6)Proceeds from sale of securities Reinvestment of distributions Amounts paid upon redemption of securities

    Net assets attributable to securityholders, end of period $ $

  • 12Semi-Annual Reportport

    See accompanying notes which are an integral part of the financial statements.

    Financial Statements (Unaudited) continued

    Statements of Cash Flows

    Amounts in thousands of Canadian DollarsFor the six-month periods ended September 30, (Note 1) 2017 2016Cash flows from (used in) operating activities:

    Purchases of investments and derivatives $ (20,405) $ (7,592)Proceeds from sale and maturity of investments and derivatives 13,213 8,268Cash receipts from dividend income 831 325Cash receipts from interest income Cash paid for operating expenses (369) (303)

    Net cash from (used in) operating activities (6,730) 698Cash flows from (used in) financing activities:

    Proceeds from sales of securities 8,954 1,445Amounts paid upon redemption of securities (2,390) (2,283)

    Net cash from (used in) financing activities 6,564 (838)Net change in cash (166) (140)Foreign exchange gain (loss) on cash 4Cash, beginning of period 1,014 153Cash, end of period $ 848 $ 17

  • 13 Semi-Annual Report

    Notes to Financial Statements (Unaudited)For the period ended September 30,2017(Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts))

    1. Formation of theFund

    Fidelity Frontier Emerging Markets Fund (Fund) is an openend mutual fund trust formed under the laws of Ontario and governed by a Master Declaration of Trust dated January 14, 1994 (Inception Date), as amended thereafter from time to time. The Fund is authorized to issue an unlimited number of securities. Fidelity Investments Canada ULC (Fidelity), as manager and trustee of the Fund, is responsible for the day-to-day operations and provides all general management and administrative services. Fidelity, as the investment advisor, is responsible for the investment management of the Funds portfolio. On December 31, 2015, the investment advisor changed from FIAM LLC (formerly Pyramis Global Advisors, LLC) to Fidelity. The registered office of the Fund is located at 483 Bay Street, Suite 300, Toronto, Ontario, M5G2N7.

    Currently, Fidelity mutual funds are offered in the following Series: Series A, Series C, Series T5 and Series T8 securities are available to all investors in a deferred sales charge (DSC) option. Series A, Series T5 and Series T8 securities will be converted to lower management and advisory fee Series B, Series S5 and Series S8 securities, respectively, one year after completion of their redemption schedule. Series B, Series D, Series S5 and Series S8 securities are available to all investors in an initial sales charge (ISC) option. Series C and Series D securities are available to investors who have enrolled in the rebalancing service. Series F, Series F5 and Series F8 securities are usually only available to investors who have feebased accounts with dealers who have signed an eligibility agreement with Fidelity. Series E1, Series E1T5, Series E2, Series E2T5, Series E3, Series E3T5, Series E4, Series E4T5, Series E5 and Series E5T5 securities are available only to investors who initially hold Series B and/or Series S5 securities and then become eligible to hold certain Series E securities. Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P3T5, Series P4, Series P4T5, Series P5 and Series P5T5 securities are available only to investors who initially hold Series F and/or Series F5 securities and then become eligible to hold certain Series P securities. Series O securities are only available to other funds and accounts managed or advised by Fidelity and are not available for public purchase. Series I, Series I5 and Series I8 securities are available to all investors who have entered into a Series I Agreement with Fidelity and are available to all investors in an initial sales charge (ISC) option.

    In addition, Series F5, Series F8, Series I5, Series I8, Series T5, Series T8, Series S5, Series S8, Series E1T5, Series E2T5, Series E3T5, Series E4T5, Series E5T5, Series P1T5, Series P2T5, Series P3T5, Series P4T5 and Series P5T5 securities distribute an amount comprised of net income and/or return of capital monthly, if available. The Fund commenced the offering of Series P1 securities on December 4, 2015, com-menced the offering of Series E1, Series E2, Series E3 and Series E4 securities on February 5, 2016. The Fund commenced the offering of Series P2 securities on January 6, 2017, commenced the offering of Series P3 securities on April 21, 2017 and commenced the offering of Series P4 securities on May 10,2017.

    The Fund meets the definition of an investment entity and its purpose is to provide investment management services to its securityholders by investing its net assets for capital growth and/or investment income and by measuring its investment performance on a fair value basis. Refer to the Financial Instruments Risk note below for the Funds investment objective.

    2. Basis of Preparation

    Statement of Compliance- These interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) and as applicable to the preparation of interim finan-cial statements, including IAS 34 Interim Financial Reporting. The accounting policies set out below have been applied consistently unless otherwise stated.

    The policies applied in these interim financial statements are based on IFRS issued as of November 7, 2017, which is the date on which the interim financial statements were authorized for issue by Fidelitys board of directors. Any subsequent changes to IFRS that are given effect in the Funds annual financial statements for the period ending March 31, 2018 could result in restatement of these interim financial statements.

    Functional and Presentation Currency These financial statements are presented in Canadian dollars, which is the Funds functional currency.

    Comparative Figures- Per security comparative figures have been conformed to the current rounding presentation of two decimal places.

    In addition, certain comparative figures in the Statements of Cash Flows have been revised to appropriately reflect the following non-cashitems:

    Amounts related to Proceeds from sales of securities and Amounts paid upon redemption of securities have been revised to exclude non-cash subscriptions and redemptions arising from switches between series within the Fund. There is no net impact on cash flows from financing activities.

    3. Summary of Significant Accounting Policies

    Basis of Measurement These financial statements have been prepared on the historical cost basis except for investments which are mea-sured at fair value in the Statements of Financial Position.

  • 14Semi-Annual Reportport

    Notes to Financial Statements (Unaudited) continued(Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts))

    Use of Estimates and Judgments Under IFRS, management is required to make certain estimates and judgments at the date of the finan-cial statements. The principal financial statement components subject to significant accounting estimates and judgments include:

    Fair value measurements-The Fund may invest in financial instruments that are not quoted in an active market. Where applicable, these instruments are categorized in Level 2 and Level 3 of the fair value hierarchy explained below. When current market prices or quotations are not readily available or reliable, valuation techniques will be applied in good faith and in accordance with procedures adopted by the manager. Factors used in determining fair value may include, but are not limited to, broker quotes from reputable pricing sources, market or secu-rity specific events, changes in interest rates and credit quality. Fair value models use observable data, to the extent practical; however, the manager is required from time to time to make estimates and assumptions that are based on the best information available at that particular time. Changes in these estimates could impact the fair values of the financial instruments, and the impact could be material. The aggregate fair value of investments measured by valuation techniques as at September 30, 2017 and March 31, 2017, is included at the end of the Funds Schedule of Investments.

    Classification and measurement of financial instruments-The Fund has made significant judgments when determining the classification and measurement of its financial instruments under IAS 39, Financial Instruments Recognition and Measurement (IAS 39). These judg-ments centre upon the determination that certain investments are held-for-trading and that the fair value measurement option can be applied to those that are not due to factors including performance evaluation and management of the Fund on a fair valuebasis.

    Presentation of financial instruments-The Fund has made significant judgments when determining the classification of its redeemable securities as financial liabilities in accordance with IAS 32 Financial Instruments Presentation (IAS 32). These judgments centre upon the determination that the Funds redeemable securities do not have identical features and their entitlements include a contractual obligation to distribute any net income and net realized capital gains at least annually in cash (at the request of the securityholder). Therefore, the ongoing redemption feature is not the securities only contractual obligation.

    Investment Valuation Investments are designated at their fair value through profit or loss in accordance with IAS 39 and are carried at their fairvalue.

    The Fund categorizes the inputs to valuation techniques used to fair value its investments into a disclosure hierarchy consisting of three levels as shownbelow:

    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 Funds own assumptions based on the best information available)

    Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. There were no signifi-cant transfers between Level 1 and Level 2 during the periods. Information on transfers between Level 1 and Level 2 for the period ended September 30, 2017, is included at the end of the Funds Schedule of Investments. The aggregate value of investments by input level, as at September 30, 2017 and March 31, 2017, as well as a roll forward of Level 3 securities, where applicable, is included at the end of the Funds Schedule of Investments. The Fund did not hold any significant positions of Level 3 investments at the beginning of or end of the period.

    Valuation techniques used to value the Funds investments by major category are as follows:

    Equity securities, including restricted equity securities and Exchange-traded funds (ETFs) for which market quotations are readily available, are valued at the last sales price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event that the last sales price or official closing price is not readily available, or is outside the bid-ask spread, the point within the bidask spread that is most representative of fair value based on specific facts and circumstances will be used. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted equity 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.

    Cash Cash is comprised of cash on deposit and may include cash equivalents which are short-term debt instruments with terms to maturity of less than 90 days at acquisition which are held for the purpose of meeting short-term cash commitments. Foreign currencies are comprised of cash amounts denominated in currencies other than Canadian dollars, which are on deposit with the custodian to facilitate the settlement of foreign denominated security transactions. Cash is carried at amortized cost which approximates its fair value. The Fund did not hold any cash equivalents as at September 30, 2017 and March 31,2017.

    Impairment of Financial Assets At each reporting date, the Fund assesses whether there is objective evidence that a financial asset car-ried at amortized cost is impaired. If such impairment exists, the Fund recognizes the difference between the amortized cost of the financial

  • 15 Semi-Annual Report

    assets and the present value of the estimated future cash flows, discounted using the instruments original effective interest rate as an impair-ment loss on the Statements of Comprehensive Income. Such impairment losses are reversed in subsequent periods in the Statements of Comprehensive Income if the conditions that lead to the initial recognition of the loss diminish or cease toexist.

    Other Assets and Liabilities Other assets and liabilities may include amounts due to or from the custodian, affiliates or other counterpar-ties for accrued income, investment transactions, Funds security transactions, accrued expenses and other unsettled transactions at period end. These amounts are classified as loans and receivables or financial liabilities and are carried at amortized cost, which approximates fair value due to their short-term nature.

    Classification of redeemable securities issued by the Fund In accordance with IAS 32, the Funds redeemable securities entitle-ments include a contractual obligation to distribute any net income and net realized capital gains at least annually in cash (at the request of the securityholder) and, therefore, the ongoing redemption feature is not the securities only contractual obligation. In addition, each series of redeemable securities are equally subordinated to each other, but have differing features as outlined in the notes below. Therefore, the Funds redeemable securities do not meet the criteria for classification as equity and have been classified as financial liabilities on the Statements of Financial Position. The Funds obligation for net assets attributable to securityholders is recorded at the redemption amount. As at September 30, 2017 and March 31, 2017, the Funds net asset value per Series per security may differ by less than $0.01 from its net assets attributable to securityholders per Series per securities calculated in accordance with IFRS as a result of normal reporting period end procedures to close off the books and records.

    Investment Transactions, Income Recognition and Transaction Costs- Regular way purchases and sales of financial assets are recog-nized at their trade date. The cost of investments is determined on an average cost basis, excluding commissions and other portfolio transac-tion costs. Net realized gains and losses from the sale of investments (which may include proceeds received from litigation) and change in net unrealized appreciation (depreciation) on investments are calculated with reference to average cost of the related investment securities. Interest income is accrued as earned. Dividend income, including income received from ETFs, is recognized 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 ex-dividend date is known to Fidelity. Distributions received from investment trusts are recorded as income, capital gains or a return of capital based on the best information available. Due to the nature of these investments, actual allocations could vary from this information. Distributions from invest-ment trusts treated as a return of capital reduce the average cost of the underlying investmenttrust.

    Transaction costs, such as brokerage commissions, incurred in the purchase and sale of investment securities by the Fund are recognized as Commissions and other portfolio costs in the Statements of Comprehensive Income.

    Foreign Currency Translation Securities and other assets and liabilities denominated in a foreign currency are translated into Canadian dollars at the period-end exchange rates. Purchases and sales of securities, income and expenses denominated in foreign currencies are trans-lated into Canadian dollars at the exchange rate on the date of the respective transaction. The effects of exchange rate fluctuations on invest-ments are included in the Net realized gain (loss) and change in net unrealized appreciation (depreciation) on investments and exchange rate fluctuations on other foreign currency transactions are included in the Net realized gain (loss) on foreign currency transactions and Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies in the Statements of Comprehensive Income.

    Valuation of Series Separate net assets attributable to securityholders is calculated for each Series of securities of the Fund. The net assets attributable to securityholders of a Series is computed by calculating the Series proportionate share of the assets and liabilities of the Fund common to all Series, adjusted for the assets and liabilities of the Fund attributable only to that Series. Expenses directly attributable to a Series are charged to that Series. Investment income and operating expenses are allocated proportionately to each Series based upon the relative net assets attributable to securityholders of each Series, except for items that can be specifically attributed to one or more Series.

    Per Security from Operations- The increase (decrease) in net assets attributable to securityholders resulting from operations per security in the Statements of Comprehensive Income represent the operational increase (decrease) for each Series of the Fund, divided by the relevant weighted average securities outstanding during the period. Refer to the Security Transactions Note for the Funds weighted average securities outstanding.

    Statements of Cash Flows When preparing the Statements of Cash Flows, the Fund nets the rollover activity of its short-term invest-ments, and includes only the net cash flow impact in Purchases of investments and derivatives or Proceeds from sale and maturity of investments and derivatives, as applicable. Additionally, in accordance with IFRS, the Funds Statements of Cash Flows excludes non-cash transactions from its operating and financing activities.

    Recent Accounting Pronouncements The final version of IFRS 9, Financial Instruments, was issued by the IASB in July 2014 and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces a model for classification and measurement, a single, forward-looking expected loss impairment model and a substantially reformed approach to hedge accounting. The new single, principle based approach for determining the classification of financial assets is driven by cash flow characteristics and the business model in which an asset is held. The new model also results in a single impairment model being applied to all financial instruments, which will require more timely recog-nition of expected credit losses. It also includes changes in respect of an entitys own credit risk in measuring liabilities elected to be measured

  • 16Semi-Annual Reportport

    Notes to Financial Statements (Unaudited) continued(Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts))

    at fair value, so that gains caused by the deterioration of an entitys own credit risk on such liabilities are no longer recognized in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, however is available for early adoption. In addition, the entitys own credit risk changes can be early applied in isolation without otherwise changing the accounting for financial instruments. Fidelity is in the process of assessing the impact of IFRS 9 and does not plan to adopt the new standardearly.

    4. Expenses and Other Related Party Transactions

    Management and Advisory Fees- Fidelity serves as the manager and investment advisor of the Fund. Fidelity is part of a broader group of companies collectively known as Fidelity Investments. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity Management & Research (UK) Inc., to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services and the provision of key management personnel to the Fund, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity may reduce the management and advisory fee or fund expenses for certain investors by reducing the management and advisory fee it charges to the Fund or reducing the amount charged to the Fund for certain expenses and having the Fund pay out the amount of the reduction to the investors as a distribution. These distributions are disclosed as Management fee reduction in the Statements of Changes in Net Assets Attributable to Securityholders. No management and advisory fees are charged with respect to the Series O securities, but investors will be charged a negotiated management fee. The annual management and advisory fee rates for each Series were as follows:

    Annual Management and Advisory Fee Rate (%)

    Series A 2.000Series B 1.850Series F 0.850Series E1 1.825Series E2 1.800Series E3 1.775

    Annual Management and Advisory Fee Rate (%)

    Series E4 1.725Series P1 0.825Series P2 0.800Series P3 0.775Series P4 0.725

    Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable and administrative expenses, including the provision of key administrative personnel to the Fund. Fidelity, in turn, pays all of the operating expenses of the Fund, other than cer-tain specified fund costs, including the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges. The administration fee is in addition to the management and advisory fee. No administration fees are charged with respect to the Series O securities. The annual rate of the administration fee will fall under one of three tiers, depending on the net asset value of the Fund: Under $100 Million (Tier 1), $100 Million to $1 Billion (Tier 2) and Over $1 Billion (Tier 3). The administration fee is calculated as a fixed annual percentage, accrued daily and payable monthly, of the net asset value of each Series as follows:

    Tier 1 (%) Tier 2 (%) Tier 3 (%)Series A 0.325 0.315 0.305Series B 0.300 0.290 0.280Series F 0.250 0.240 0.230Series E1 0.250 0.240 0.230Series E2 0.200 0.190 0.180Series E3 0.175 0.165 0.155

    Tier 1 (%) Tier 2 (%) Tier 3 (%)Series E4 0.175 0.165 0.155Series P1 0.200 0.190 0.180Series P2 0.150 0.140 0.130Series P3 0.125 0.115 0.105Series P4 0.125 0.115 0.105

    Prior to November 1, 2016, the administration fee was calculated as a fixed annual percentage of the net asset value of each Series as follows (some or all Series administration fees may not have changed):

    Tier 1 (%) Tier 2 (%) Tier 3 (%)Series A 0.350 0.340 0.330Series B 0.325 0.315 0.305Series F 0.290 0.280 0.270Series E1 0.275 0.265 0.255

    Tier 1 (%) Tier 2 (%) Tier 3 (%)Series E2 0.225 0.215 0.205Series E3 0.200 0.190 0.180Series E4 0.200 0.190 0.180Series P1 0.240 0.230 0.220

    Independent Review Committee Fees- The Independent Review Committee (IRC), as required under National Instrument 81-107, reviews conflict of interest matters referred to it by the manager and provides recommendations or approves actions, as appropriate, that are in the best interest of the funds. There are currently four members of the IRC who are independent of Fidelity and its affiliates. IRC members are compensated by way of an annual retainer fee and a per meeting attendance fee, as well as reimbursed for expenses associated with IRC

  • 17 Semi-Annual Report

    duties. These costs are allocated among the individual funds proportionately by assets. No IRC fees are charged with respect to the Series O securities.

    Sales Tax - Certain provinces have harmonized their Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST). The Harmonized Sales Tax (HST) combines the GST rate of 5% with the PST rate of certain provinces. The Provincial GST/HST liability or refund is calculated using the residency of securityholders and the value of their interests in the Fund as at specific times, rather than the physical location of the Fund. The effective GST/HST rate charged to each Series of the Fund is based on the securityholders proportionate invest-ments by province, using each provinces HST rate or GST rate in the case of non-participating provinces. All amounts are included in the Statements of Comprehensive Income as Salestax.

    Expenses Waived- Fidelity may absorb or waive certain expenses at its sole discretion and can terminate the absorption or waiver at any time. Fidelity waived a portion of its administration fee which is disclosed as Expenses waived in the Statements of Comprehensive Income.

    Commissions and Other Portfolio Costs- Commissions and other portfolio costs paid for security transactions during the period were $94 (September 30, 2016: $50), of which $- (September 30, 2016: $-) were paid to brokerage firms that are affiliates of Fidelity Investments.

    The Fund may execute certain portfolio trades with brokers who reimbursed a portion of their commissions to the Fund. Reimbursement estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Commissions reimbursed under this arrangement were $(1) (September 30, 2016: $-) and are included in Commissions and other portfolio costs in the Statements of Comprehensive Income.

    In addition, a portion of commissions may be paid for research. The total of such payments was $7 (September 30, 2016: $3). Amounts paid for research provided to the Fund by executing brokers are estimates made by Fidelity. Fidelity has established procedures to assist them in making a good faith determination that the Fund received a reasonable benefit considering the value of research goods and services and the amount of brokerage commissionspaid.

    5. Taxation and Distributions

    The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada). For tax purposes, the Fund has a December yearend. In each tax year, the Fund declares and credits as due and payable sufficient net investment income and net realized capital gains to securityholders such that the Fund will not be subject to income taxes. As a result, the Fund does not record income taxes under IAS 12 Income Taxes (IAS 12) and accordingly does not recognize the deferred tax benefit associated with tax loss carry forwards and other taxable temporary differences.

    Foreign withholding taxes are imposed by certain countries on investment income and are estimated based on the tax rules and actual rates that exist in the foreign markets. Investment income is recorded gross of foreign taxes withheld. Foreign withholding taxes are accrued for in conjunction with the accrual for the related investment income and are included in Foreign taxes withheld on the Statements of Comprehensive Income and Other payables and accrued expenses on the Statements of Financial Position.

    Distributions are taxable in securityholders hands. At the end of each tax year, the character of the distributions is determined for tax pur-poses. Under the terms of the Declaration of Trust, the trustee may capitalize any distribution amount without any increase in the number of securities outstanding. Distributions, if any, are declared separately for each Series.

    Capital losses may be carried forward indefinitely to reduce future realized capital gains. As at the last taxation year-end, the Fund had $94,164 capital losses available to be carried forward.

    Noncapital losses may be carried forward for up to 20 tax years to reduce future taxable income, but expire in December of the year noted. As at the last taxation year-end, the Fund had no noncapital losses available to be carried forward.

    6. Capital Risk Management

    Securities issued and outstanding are considered to be the capital of the Fund. The capital of each series of the Fund is divided into an unlim-ited number of securities of equal value, with no par value. All securities in a series of the Fund rank equally with respect to distributions. A securityholder of the Fund is entitled to one vote for each one dollar in value of securities owned. Fractional securities are proportionately entitled to these rights. The Fund generally has no restrictions or specific capital requirements on the subscriptions and redemptions of securi-ties other than minimum subscription requirements; although, on rare occasions, Fidelity may temporarily suspend securityholders right to redeem securities and postpone paying sale proceeds. The relevant movements attributable to securityholders are shown in the Statements of Changes in Net Assets Attributable to Securityholders. In accordance with the objectives and the risk management policies outlined in the Financial Instruments Risk notes, the Fund endeavors to invest the subscriptions received in appropriate investments while maintaining suf-ficient liquidity to meet redemptions. Such liquidity is managed by investing the majority of assets in investments that can be readily disposed and via the Funds ability to borrow up to 5% of its net assetvalue.

  • 18Semi-Annual Reportport

    Notes to Financial Statements (Unaudited) continued(Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts))

    Security Transactions- Security transactions and weighted average securities for each Series were as follows:

    Securities Outstanding, Beginning of

    Period Issued Reinvested RedeemedSecurities Outstanding,

    End of Period

    Weighted Average Securities

    Period ended September 30, 2017Series A 135 67 (28) 174 152Series B 819 127 (127) 819 816Series F 161 284 (123) 322 252Series O 4,685 4,685 4,685Series E1 92 38 (24) 106 101Series E2 8 6 14 10Series E3 14 14 7Series E4 Series P1 73 178 (33) 218 163Series P2 84 63 (73) 74 74Series P3 88 (12) 76 59Series P4 11 (11) 6Period ended September 30, 2016Series A 176 19 (49) 146 165Series B 938 63 (133) 868 913Series F 38 23 (9) 52 41Series O Series E1 41 37 (13) 65 51Series E2 7 7 3Series E3 Series E4 Series P1 10 10 2

    Affiliated Ownership- As at September 30, 2017, Fidelity and its affiliates held approximately 51% of the Fund. As at March 31, 2017, Fidelity and its affiliates held approximately 57% of theFund.

    7. Financial InstrumentsRisk

    The Funds activities expose it to a variety of financial instruments risks: credit risk, liquidity risk, other price risk, interest rate risk and cur-rency risk. Fidelity seeks to minimize potential adverse effects of these performance risks by employing professional, experienced portfolio advisors, by daily monitoring of positions and market events, and by diversifying the investment portfolio within the constraints of the invest-ment mandate. Derivative financial instruments may be used to moderate certain risk exposures.

    The Fund aims to achieve high total investment return by investing primarily in equity securities of companies in frontier market and emerging market countries. The Funds benchmark is the MSCI Frontier Emerging MarketsIndex.

    Portfolio risk is monitored daily and reviewed monthly by an investment compliance group. In addition, there is a formal quarterly review of each fund. The investment compliance group, portfolio managers and the senior analysts attend a quarterly portfolio review. Portfolios within each strategy are reviewed relative to each other and to their benchmark. Active industry and security allocations are analyzed.

    Credit Risk- Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund. The Funds own credit risk in the case of financial liabilities and a counterpartys credit risk, both indirect and direct, are considered, where applicable, in determining the fair value of financial assets and financial liabilities. In addition, as part of its cash management, the Fund limits its direct exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of investments and other assets represents the maximum credit risk exposure as at September 30, 2017 and March 31,2017.

    Other than outlined above, there were no significant concentrations of credit risk to counterparties as at September 30, 2017 and March 31,2017.

    Concentration Risk- The Fund may be exposed to risk based on the concentration levels of its financial instruments in various sectors, geo-graphic regions, asset weightings and market capitalization, as applicable. Fidelity analyzes and monitors these concentration risks regularly. Refer to the Geographic Mix, and Sector Mix in the Summary of Investment Portfolio of the Funds Semi-Annual Management Report of Fund Performance as at September 30, 2017, which summarize the investment concentration risks that are relevant for theFund.

    Liquidity Risk- Liquidity risk is defined as the risk that the Fund may not be able to settle or meet its obligations on time or at a reason-able price. The Fund is exposed to daily cash redemptions of its redeemable securities. Redeemable securities are redeemed on demand at

  • 19 Semi-Annual Report

    the securityholders option based on the Funds net asset value per security (NAVPS) at the time of redemption. The Fund may be exposed to indirect liquidity risk through its investments.

    In accordance with securities regulations, investment funds must maintain at least 90% of assets in liquid investments; investments that are traded in an active market and can be readily disposed of. In addition, the Fund aims to retain sufficient cash and short-term investments to maintain liquidity, and has the ability to borrow up to 5% of its net asset value from the custodian for the purpose of funding redemptions. The liquidity position is monitored on a dailybasis.

    As at September 30, 2017 and March 31, 2017, the Fund did not have financial liabilities with maturities greater than 3 months.

    Other Price Risk- Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk on monetary instruments), whether caused by factors specific to an individual investment, its issuer, or other factors affecting all instruments traded in a market or market segment. All financial instruments present a risk of loss of capital. This risk is moderated through a careful selection of securities and other financial instruments within the parameters of the investment strategy. The maximum risk resulting from financial instruments is equivalent to their fair value except for possible losses from options written and futures contracts which can be unlimited. Investments and derivatives, if applicable, are susceptible to other price risk arising from uncertainties about future prices of the instruments.

    In determining a Funds impact from exposure to other price risk, a beta may be used when applicable. Beta, a measure of the volatility of a security or a portfolio in comparison to the market as a whole, is derived from comparing 36 months of returns between the benchmark and a Fund. As such, beta inherently includes effects reflected in interest rate and currency risks. A beta of 1 indicates the securitys price will move with the market. A beta of less than 1 means the security will be less volatile than the market. A beta of greater than 1 indicates the securitys price will be more volatile than the market. For example, if a stocks beta is 1.2, its theoretically 20% more volatile than the market. Beta may not be representative of futurebeta.

    If the benchmark had increased or decreased by 5% on September 30, 2017 and March 31, 2017, with all other variables held constant, the net assets attributable to securityholders of the Fund would have increased or decreased by approximately $2,685 (March 31, 2017: $2,315). This change is estimated using the Funds beta which is calculated based on the historical correlation between the return of the Fund as compared to the return of the benchmark. In practice, the actual trading results may differ from this sensitivity analysis and the difference could be material.

    Emerging Market Risk- The Funds exposure in countries with limited or developing capital markets may involve greater risks than invest-ments in more developed markets, and the prices of such investments may be volatile due to the consequences of political, social, or economic changes.

    Interest Rate Risk- Interest rate risk arises on interest-bearing financial instruments held directly or indirectly in the investment portfolio such as bonds. The Fund is exposed to the risk that the fair value or the future cash flows of interest-bearing financial instruments will fluctu-ate due to changes in the prevailing levels of market interest rates. Any excess cash may be invested in short-term investments at market inter-est rates. The majority of the Funds financial instrument exposure is non-interest bearing. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interestrates.

    Currency Risk- Currency risk arises from financial instruments that are denominated in a currency other than Canadian dollar, which is the Funds functional currency.

    The Fund is exposed to the risk that the value of financial instruments will fluctuate due to changes in exchange rates. Currency risk is not considered to arise from financial instruments that are non-monetary items such as equity investments, or forward foreign exchange contracts related to such non-monetary items. Foreign exchange exposure relating to non-monetary assets and liabilities is considered to be a component of other price risk, not foreign currency risk. As at September 30, 2017 and March 31, 2017, the majority of the Funds monetary assets and liabilities are denominated in Canadian dollars. As a result, the Fund is not subject to significant amounts of currencyrisk.

  • Fidelity Investments CanadaULC483 Bay Street, Suite300Toronto, Ontario M5G2N7

    Manager, Transfer Agent and RegistrarFidelity Investments CanadaULC483 Bay Street, Suite300Toronto, Ontario M5G2N7

    Portfolio AdviserFidelity Investments CanadaULCToronto, Ontario

    CustodianState Street Trust Company ofCanadaToronto, Ontario

    AuditorPricewaterhouseCoopers LLPToronto, Ontario

    Visit us onlineatwww.fidelity.caor call Fidelity Client Servicesat 1-800-263-4077

    Fidelitys mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund or Fidelity U.S. Money Market Fund will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Funds current or future investments. A Funds investments may change at anytime.

    Fidelity Investments is a registered trademark of Fidelity Investments CanadaULC.62.107473E 1.753327.117

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