Semi-Annual Report and Accounts - Fidelity International

Fidelity Funds

Soci?t? d'investissement ? capital variable Established in Luxembourg RCS Luxembourg B 34 036

Semi-Annual Report and Accounts

For the period ended 31 October 2022 Unaudited

The following sub-funds of the Fidelity Funds are not authorised in Hong Kong and are not available to Hong Kong residents (as at 31 October 2022):

Fidelity Funds - European Low Volatility Equity Fund Fidelity Funds - Global Low Volatility Equity Fund Fidelity Funds - Greater China Fund II Fidelity Funds - Sustainable Asia Equity II Fund Fidelity Funds - Sustainable Biodiversity Fund Fidelity Funds - Sustainable China A Shares Fund Fidelity Funds - Sustainable Climate Solutions Fund Fidelity Funds - Sustainable European Smaller Companies Fund Fidelity Funds - Sustainable Future Connectivity Fund Fidelity Funds - Global Equity Income Fund Fidelity Funds - Sustainable European Dividend Plus Fund Fidelity Funds - Sustainable Global Equity Income Fund Fidelity Funds - Strategic European Fund Fidelity Funds - Asia Pacific Multi Asset Growth & Income Fund Fidelity Funds - Global Multi Asset Defensive Fund Fidelity Funds - Global Multi Asset Growth & Income Fund Fidelity Funds - SMART Global Defensive Fund Fidelity Funds - China Government Bond Fund Fidelity Funds - Emerging Market Local Currency Debt Fund Fidelity Funds - Emerging Market Total Return Debt Fund Fidelity Funds - Global Corporate Bond Fund Fidelity Funds - Global High Yield Fund Fidelity Funds - Global Hybrids Bond Fund Fidelity Funds - Structured Credit Income Fund Fidelity Funds - Sustainable Asian Bond Fund Fidelity Funds - Sustainable Climate Bond Fund Fidelity Funds - Sustainable US High Yield Fund Fidelity Funds - Fidelity TargetTM 2020 (Euro) Fund Fidelity Funds - Fidelity TargetTM 2035 (Euro) Fund Fidelity Funds - Fidelity TargetTM 2040 (Euro) Fund Fidelity Funds - Fidelity TargetTM 2045 (Euro) Fund Fidelity Funds - Fidelity TargetTM 2050 (Euro) Fund Fidelity Funds - Fidelity TargetTM 2055 (Euro) Fund Fidelity Funds - Fidelity TargetTM 2060 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2015 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2020 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2025 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2030 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2035 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2040 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2045 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2050 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2055 (Euro) Fund Fidelity Funds - Fidelity Institutional TargetTM 2060 (Euro) Fund Fidelity Funds - Multi Asset Target Income 2024 Fund Fidelity Funds - Absolute Return Asian Equity Fund Fidelity Funds - Absolute Return Global Equity Fund Fidelity Funds - Absolute Return Global Fixed Income Fund Fidelity Funds - Absolute Return Multi Strategy Fund Fidelity Funds - Institutional European Larger Companies Fund Fidelity Funds - Institutional Global Focus Fund Fidelity Funds - Institutional Global Sector Fund

Fidelity Funds

Contents

Introduction

Directors and Conducting Officers

Investment Manager's Report

Footnotes

Schedule of Investments

Equity Funds America Fund 8 American Growth Fund 8 ASEAN Fund 8

Asia Pacific Opportunities Fund

Asian Smaller Companies Fund Asian Special Situations Fund 8

Australian Diversified Equity Fund China Consumer Fund 8

China Focus Fund China Innovation Fund 8 Emerging Asia Fund 8

Emerging Europe, Middle East and Africa Fund Emerging Markets Fund 8 Euro STOXX 50? Fund 2 European Dynamic Growth Fund 8 European Growth Fund 8 European Larger Companies Fund 8 European Low Volatility Equity Fund 4,8

European Smaller Companies Fund FIRST All Country World Fund 8

Germany Fund Global Financial Services Fund 8 Global Focus Fund 8 Global Industrials Fund Global Low Volatility Equity Fund 4 Global Property Fund 6 Global Technology Fund 8 Global Thematic Opportunities Fund 8 Greater China Fund 8 Greater China Fund II 1,3,4,5,8 Iberia Fund 8 India Focus Fund 7,8

Indonesia Fund Italy Fund 8 Japan Growth Fund 8 Japan Value Fund 8

Latin America Fund Nordic Fund 8 Pacific Fund 8 Sustainable Asia Equity Fund 8 Sustainable Asia Equity II Fund 1,3,4,5,8 Sustainable Biodiversity Fund 4,8 Sustainable China A Shares Fund 4,8 Sustainable Climate Solutions Fund 4,8 Sustainable Consumer Brands Fund 8 Sustainable Demographics Fund 8 Sustainable Emerging Markets Equity Fund 8 Sustainable Europe Equity Fund 8 Sustainable European Smaller Companies Fund 4,8 Sustainable Eurozone Equity Fund 8 Sustainable Future Connectivity Fund 4,8 Sustainable Global Health Care Fund 8 Sustainable Japan Equity Fund 8 Sustainable US Equity Fund 8 Sustainable Water & Waste Fund 8 Switzerland Fund 8

Thailand Fund

UK Special Situations Fund World Fund 8

Equity Income Funds Asia Pacific Dividend Fund 8 European Dividend Fund 8 Global Dividend Fund 8 Global Equity Income Fund 4,8 Sustainable European Dividend Plus Fund 4,8 Sustainable Global Dividend Plus Fund 8 Sustainable Global Equity Income Fund 4,8

Asset Allocation Fund Strategic European Fund 4,8

Multi Asset Funds Asia Pacific Multi Asset Growth & Income Fund 1,4 European Multi Asset Income Fund 8 Global Multi Asset Defensive Fund 4

Global Multi Asset Dynamic Fund Global Multi Asset Growth & Income Fund 4 Global Multi Asset Income Fund 6,8 Greater China Multi Asset Growth & Income Fund 1 Sustainable Multi Asset Income Fund 8

Fidelity SMART Fund

SYSTEMATIC MULTI ASSET RISK TARGETED (SMART) SMART Global Defensive Fund 4

Bond Funds

Asia Pacific Strategic Income Fund

2

Asian Bond Fund

208

4

Asian High Yield Fund

211

5

China Government Bond Fund 4

214

7

China High Yield Fund

215

China RMB Bond Fund 8

218

Emerging Market Corporate Debt Fund 8

221

8

Emerging Market Debt Fund 8

225

10

Emerging Market Local Currency Debt Fund 4,8

229

11

Emerging Market Total Return Debt Fund 4,8

233

13

Euro Bond Fund 8

238

14

Euro Corporate Bond Fund 8

240

16

Euro Short Term Bond Fund 8

242

18

European High Yield Fund 8

244

19

Flexible Bond Fund 8

248

20

Global Bond Fund 8

254

21

Global Corporate Bond Fund 4,8

259

22

Global High Yield Fund 4,8

262

24

Global Hybrids Bond Fund 4,8

265

26

Global Income Fund 8

267

28

Global Inflation-linked Bond Fund 8

270

29

Global Short Duration Income Fund 8

274

31

Structured Credit Income Fund 4,8

277

32

Sustainable Asian Bond Fund 4,8

278

33

Sustainable Climate Bond Fund 4,8

280

35

Sustainable Strategic Bond Fund 8

283

37

Sustainable US High Yield Fund 4,8

289

38

US Dollar Bond Fund 8

291

39

US High Yield Fund

294

40

Cash Funds

42

Sustainable Euro Cash Fund 8

298

43

Sustainable US Dollar Cash Fund 8

299

45

Fidelity Lifestyle Funds

46

Fidelity TargetTM 2020 Fund

300

48

Fidelity TargetTM 2020 (Euro) Fund 4

301

51

Fidelity TargetTM 2025 (Euro) Fund

302

52

Fidelity TargetTM 2030 (Euro) Fund

315

53

Fidelity TargetTM 2035 (Euro) Fund 4

328

54

Fidelity TargetTM 2040 (Euro) Fund 4

341

55

Fidelity TargetTM 2045 (Euro) Fund 4

350

56

Fidelity TargetTM 2050 (Euro) Fund 4

359

57

Fidelity TargetTM 2055 (Euro) Fund 4

368

58

Fidelity TargetTM 2060 (Euro) Fund 4

377

59

Institutional Target Funds

60

Fidelity Institutional TargetTM 2015 (Euro) Fund 1,4,5

386

61

Fidelity Institutional TargetTM 2020 (Euro) Fund 1,4,5

391

63

Fidelity Institutional TargetTM 2025 (Euro) Fund 1,4,5

401

65

Fidelity Institutional TargetTM 2030 (Euro) Fund 1,4,5

413

66

Fidelity Institutional TargetTM 2035 (Euro) Fund 1,4,5

425

67

Fidelity Institutional TargetTM 2040 (Euro) Fund 1,4,5

438

68

Fidelity Institutional TargetTM 2045 (Euro) Fund 1,4,5

451

69

Fidelity Institutional TargetTM 2050 (Euro) Fund 1,4,5

462

71

Fidelity Institutional TargetTM 2055 (Euro) Fund 1,4,5

470

73

Fidelity Institutional TargetTM 2060 (Euro) Fund 1,4,5

478

74

Multi Asset Target Fund

75

Multi Asset Target Income 2024 Fund 1,4

486

77

Absolute Return Funds

78

Absolute Return Asian Equity Fund 4,5

491

80

Absolute Return Global Equity Fund 4

493

81

Absolute Return Global Fixed Income Fund 4

495

82

Absolute Return Multi Strategy Fund 4

498

83

Institutional Reserved Equity Funds

84

Institutional Emerging Markets Equity Fund 8

505

85

Institutional European Larger Companies Fund 1,3,4,5,8

506

86

Institutional Global Focus Fund 4,8

507

88

Institutional Global Sector Fund 3,4

508

Statement of Net Assets

512

90

Statement of Net Asset Value per Share

534

91

Notes to the Financial Statements

563

92

Supplementary Information

596

95

Directory

613

96

98

101

102

104 111 124 128 137 156 181 186

.

193

205 1

Fidelity

Funds Introduction

Fidelity Funds (the "Company") is an open-ended investment company established in Luxembourg as a soci?t? d'investissement ? capital variable ("SICAV"). It has an umbrella structure and its assets are held in a number of different funds ("sub-funds"). Each sub-fund is a separate portfolio of securities and other assets managed in accordance with specific investment objectives. Separate classes of shares in the Company (the "Shares") are issued in relation to the sub-funds. Each sub-fund provides an investment opportunity in professionally managed pools of securities in different geographical areas and currencies, with the investment objective of capital growth, income or a balance between capital growth and income. Shares are authorised for sale in a number of jurisdictions and may be listed on the Luxembourg Stock Exchange's Euro MTF market. However, shares in the Reserved Funds and the Institutional Reserved Funds are not presently listed. Further information on the stock exchange listings can be found on list or may be obtained from the Management Company upon request. Swiss investors are advised that with the exception of the Asia Pacific Multi Asset Growth & Income Fund, Greater China Fund II, Greater China Multi Asset growth & Income Fund, the Institutional Target Funds, Institutional European Larger Companies Fund, Multi Asset Target Income 2024 Fund, Sustainable Asia Equity II Fund, the present sub-funds of the Company have been authorised by the Swiss Financial Market Supervisory Authority for distribution in Switzerland.

Russia/Ukraine War

The consequences of Russia's invasion of Ukraine in February 2022 were significant areas of focus for the Management Company over the latter half of the financial year ended 30 April 2022 and this has continued to be the case. Exposures to Russia and Ukraine and any liquidity and valuation related issues for all associated holdings have been closely monitored and all applicable sanctions have been followed. As referenced in the Notes to the Financial Statements, the Fund's exposure to Russia and Ukraine was relatively low, with only one sub-Fund, Fidelity Funds - Emerging Europe, Middle East and Africa Fund, that had exposure in excess of 10% of total net assets. With price discovery on Russian securities becoming increasingly difficult, a price discount of 50% was applied on 28 February 2022. On 1 March 2022 the Moscow Exchange remained closed and local securities' valuations were further reduced to nil. Consideration was given to whether it was appropriate and in the best interests of shareholders to suspend the calculation of the NAV. However, given that this is a well-diversified global portfolio, it was not believed that such a suspension was either necessary, nor would it be in the best interests of shareholders. Given the seriousness of the events, Fidelity International decided that it would not be investing in Russia and Belarus for the foreseeable future. As such, a firm-wide prohibition has been implemented on new or additional purchases of Russian and Belarusian securities. Existing exposures have been addressed and where possible or appropriate, options to reduce it in a thoughtful way which protects the interests of shareholders and mitigates unintended consequences have been considered. The Board of Directors of the Company (the "Board") has been kept duly and appropriately informed of all matters relating to the impact of the Russia/Ukraine crisis on the Company and the steps that have been taken to ensure that the interests of shareholders remain a priority.

2

Fidelity

Funds Introduction

Board of Directors

The Directors of the Company as at 31 October 2022 are listed on page 4. Eight of the ten Directors serving as at 31 October 2022 are considered non-executive Directors, three of whom are considered by the Board to be independent of the Investment Manager and free from any other relationship which could materially interfere with the exercise of their independent judgment. At the Annual General Meeting of Shareholders (the "AGM") held on 6 October 2022, the re-election of the following Directors was approved: Ms Anne Richards Mr Yousef Al-Awadi Mr Didier Cherpitel Ms Carine Feipel Mr Glen Moreno Mr Jon Skillman FIL (Luxembourg) S.A. The appointment of Mr Jeffrey Lagarce, who had co-opted the seat vacated by Ms Abby Johnson up to the AGM, was also approved at this AGM. Finally, the AGM also approved the election of Ms Anouk Agnes and Mr Romain Boscher as additional Directors on the Board. There has been the following changes to the Board of the Management Company during the period to 31 October 2022:

? Mr Romain Boscher has been appointed with effect from 11 July 2022. ? Ms Sera Sadrettin-Perry has been appointed with effect from 11 July 2022. Conducting Officers

As at 31 October 2022 the Conducting Officers (COs) appointed by FIL Investment Management (Luxembourg) S.A. ("FIMLUX") were as listed on page 4. . .

______________________________________________________________________________________________________________________________________ This Semi-Annual Report of the Company does not constitute an offer of Shares. Shares are offered on the basis of the information contained in the current Prospectus (and the documents referred to within it) supplemented by the last available Annual Report of the Company and any subsequently published Semi-Annual Report. Copies of the current Prospectus, latest Annual and Semi-Annual Reports and Portfolio Changes for the Company are available free of charge from the registered office of the Company or from any of the companies registered as distributors of the Company, or, for investors in Switzerland, from the Representative of the Company in Switzerland.

This Semi-Annual Report has been approved for circulation in the United Kingdom by FIL Investments International, UK distributor of the Company, authorised and regulated in the UK by the Financial Conduct Authority.

3

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download