Fidelity Total International Equity Fund

Page created by Lori Cole
 
CONTINUE READING
Fidelity Total International Equity Fund
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

Fidelity® Total International
Equity Fund

Key Takeaways                                                                  MARKET RECAP

• For the semiannual reporting ending April 30, 2021, the fund's Retail        The MSCI ACWI (All Country World
  Class shares advanced 28.05%, topping the 27.51% increase in the             Index) ex USA Index gained 27.51% for
  benchmark MSCI ACWI (All Country World Index) ex USA Index.                  the six months ending April 30, 2021,
                                                                               with international equities rising amid
                                                                               improved global economic growth,
• Strong COVID-19 vaccine efficacy data provided investors with                widespread COVID-19 vaccinations, fiscal
  renewed hope for a global economic recovery, ultimately catalyzing a         stimulus in the U.S. and abroad, and
  rally in many cyclical segments of the market the past six months.           fresh government spending programs. In
                                                                               addition, foreign securities were
• At the sector level, the fund's positioning among information                bolstered in part by general U.S.-dollar
  technology, consumer staples and materials stocks contributed most           weakness. The period began with a shift
  to the fund's relative result. Geographically, security selection in China   in momentum. In November,
  and the Netherlands provided the biggest lift.                               international stocks shrugged off a two-
                                                                               month retreat by gaining roughly 13%.
• On a stock-specific basis, the leading relative contributor was South        The momentum continued in December,
  Korean Samsung Electronics, followed by South Africa-based Impala            as positive news on the effectiveness of
  Platinum Holdings, the Netherlands' ASML Holding and German auto             vaccines provided a notable boost to
  maker Porsche Automobil Holding.                                             international equities. In late December,
                                                                               as vaccines were approved by
• Conversely, a lighter-than-benchmark weighting in energy stocks,             government regulatory authorities,
                                                                               investors gained more confidence in the
  along with subpar stock picks in communication services and
                                                                               outlook for the global economy. As the
  financials, detracted the most from a sector perspective. Among
                                                                               new year began, many economists raised
  countries, investment choices in Canada hurt the past six months, as
                                                                               their expectations for a powerful
  did exposure to Australia.                                                   economic recovery in the U.S. and
                                                                               elsewhere, as opposed to the sluggish
• China-based Baidu was the largest individual relative detractor,             rebound they had been anticipating. By
  although Japanese firms Hoya, Misumi Group and Keyence also                  region, the U.K. (+37%) and Canada
  weighed on the fund's relative result.                                       (+35%) led the way. Europe ex U.K.
                                                                               (+33%) and Asia Pacific ex Japan (+31%)
• Although the global economy continues to face a very uncertain               also outperformed. Conversely, Japan
  situation today, we are largely convinced that the world will get            (+17%) and emerging markets (+23%)
  through this given the rapid development of COVID-19 responses –             lagged. Looking at sectors, energy
  both scientific and government support-related – which have been             (+45%) and financials (+40%) fared best,
  nothing short of remarkable.                                                 followed by information technology and
                                                                               materials (+39% each). In contrast,
                                                                               notable "laggards" included health care
                                                                               (+13%), consumer staples (+15%) and
                                                                               utilities (+17%).

     Not FDIC Insured • May Lose Value • No Bank Guarantee
Fidelity Total International Equity Fund
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

                                                                              Q&A
                                                                              An interview with Co-Portfolio
                                                                              Managers Jed Weiss, Alex Zavratsky
                                                                              and Sam Polyak
      Jed Weiss              Alex Zavratsky            Sam Polyak
     Co-Manager               Co-Manager               Co-Manager
                                                                              Q: Jed, how did the fund perform for the
                                                                              semiannual period ending April 30, 2021฀
   Fund Facts
                                                                              J.W. The fund's Retail Class shares advanced 28.05%,
   Trading Symbol:                    FTIEX                                   topping the 27.51% increase in the benchmark MSCI ACWI
                                                                              (All Country World Index) ex USA Index. The fund outpaced
   Start Date:                        November 01, 2007
                                                                              the peer group average by an even wider margin.
   Size (in millions):                $109.93                                 Taking a bit of a longer term view, the fund rose 49.26% over
                                                                              the trailing 12 months, again outperforming both the
                                                                              benchmark and peer group average.

    Investment Approach                                                       Q: What was noteworthy about international
                                                                              equity markets the past six months฀
    • Fidelity® Total International Equity Fund is a team-
      managed, diversified international equity strategy that                 J.W. The reporting period commenced with strong COVID-
      leverages the style-specific expertise of three portfolio               19 vaccine efficacy data, providing investors with renewed
      managers to provide shareholders with "one-stop"                        hope for a global economic recovery, which, in turn,
      international exposure.                                                 ultimately catalyzed a rally in many cyclical segments within
    • The fund is structured into four subportfolios, with                    equity markets. This came none too soon for a number of
      dedicated exposure across a broad range of market                       highly debt-laden companies hit hard by the pandemic, that
      capitalizations, investment styles and geographies.                     were in very precarious situations but were now able to see a
                                                                              potential light at the end of the tunnel.
    • In general, we favor companies with high returns on
      invested capital, strong free cash flow, clean corporate                Another key factor impacting the markets, and Chinese
      governance and attractive valuations.                                   stocks specifically, was an antitrust regulation draft proposed
                                                                              by the country's government, aimed at cracking down on
    • We employ a disciplined investment process that
                                                                              platform business models (i.e., ecommerce, ride sharing,
      emphasizes active stock selection as the primary source
      of excess return.                                                       social media, food delivery, cloud, etc.).

    • Our investment team works together to identify                          S.P. In terms of emerging markets (EM) more broadly, China
      attractive opportunity sets, supported by in-depth                      was ahead of most other countries with respect to its
      fundamental and macroeconomic analysis that leverages                   recovery from the pandemic. Most EM nations continued to
      Fidelity's global research capabilities, with the goal of               pursue stimulative policies, with varying results. In some
      capturing market upside while limiting downside                         countries, notably India and Brazil, COVID-19 infections
      participation.                                                          remained much higher than expected at this stage of the
                                                                              pandemic, despite vaccination programs.

                                                                              Q: Which factors had the biggest positive
                                                                              impact on relative performance this period฀
                                                                              A.Z. At the sector level, the fund's positioning among
                                                                              information technology, consumer staples and materials
                                                                              stocks contributed most the past six months. Geographically,
                                                                              security selection in China and the Netherlands provided the
                                                                              biggest lift in terms of the portfolio's relative result.

2 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
Fidelity Total International Equity Fund
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

S.P. On a stock-specific basis, the fund's leading relative                   China-based internet search engine Baidu (-33%) made this
contributor and largest overall position was Samsung                          stock the portfolio's biggest relative detractor. Beginning in
Electronics (+50%). A notable overweighting in the shares of                  February, I initiated a moderately overweight position, as
this South Korea-based electronics conglomerate was                           management had greatly improved execution.
helpful, with most of the stock's gain coming in the final two                Unfortunately, shortly thereafter, most internet stocks sold
months of 2020. The company benefited from strong                             off globally, including Baidu, amid China's moves to regulate
demand in its DRAM memory chip, OLED screen display and                       its internet companies more tightly. This situation was
smartphone businesses. Then, in April, Samsung reported its                   exacerbated by Archegos Capital Management, a large
highest first-quarter operating profit in three years,                        Baidu shareholder that got into financial difficulties and was
commenting that it expected memory-chip earnings to                           a forced seller. At that point, I used the sell-off to increase
improve "significantly" in the second quarter on the back of                  exposure in the stock.
strong server demand. However, it also said profit and sales
                                                                              A.Z. Several of the fund's high-quality, more-defensive
at its mobile business are likely to fall after a robust first
                                                                              investments unperformed in the decidedly pro-cyclical
quarter, due to supply issues for some components and a
                                                                              backdrop the past six months. These types of stock fit my
decline in sales for its flagship smartphones.
                                                                              "quality value" approach – meaning companies I consider to
An outsized stake in Impala Platinum Holdings, which gained                   be long-term compounders with sustainable free-cash-flow
about 120% in the fund, added meaningful value. Based in                      streams. The portfolio's overweighting in Hoya, a noteworthy
South Africa, the firm produces platinum, palladium and                       detractor this period, fit this description. The firm is a
other platinum-group metals, as well as nickel, copper and                    Japanese manufacturer of optical products in health care, as
cobalt. Platinum and palladium play an important role in                      well as a provider of photomask technology for extreme
automobile catalytic converters, and auto sales have                          ultraviolet lithography in tech markets. This higher-quality
recovered markedly since the second quarter of 2020. On                       stock gained about 1% this period, notably underperforming
the other hand, copper, nickel and cobalt are all used in                     the benchmark.
electric vehicle batteries and also have many other uses in
                                                                              J.W. Lastly, some noteworthy larger-than-benchmark
construction and industry.
                                                                              positions in Japanese exporters – Misumi Group (-4%) and
J.W. On the whole, semiconductor capital equipment-                           Keyence (+7%) – hampered the fund's relative performance
related stocks fared quite well the past six months, including                this period given the high correlation between still weak
overweighted exposure to Netherlands-based ASML Holding                       Japanese machine tool orders and factory automation
(+80%). In addition to the firm's compelling and functional                   stocks.
long-term thesis, these types of businesses generally tend to
be oligopolistic players within their respective markets that                 Q: Any closing thoughts for shareholders as of
gained meaningfully due to an acute global shortage in                        April 30฀
semiconductor supply this period.
                                                                              A.Z. We continue to face a very uncertain situation today.
A.Z. The portfolio's overweighting in German luxury auto                      While I am convinced that the world will get through this
maker Porsche Automobil Holding also helped. Given my                         pandemic and though the rapid development of COVID-19
favorable outlook for the economic and investment                             responses – both scientific and government support-related
environment, I began favoring stocks with a deeper value                      – have been nothing short of remarkable, the current
orientation in October 2020. Particularly, I favored market                   recovery could take many different paths from here.
segments at the epicenter of the coronavirus crisis, including                Additional risks to the market include a further escalation in
auto-related stocks. The stock rallied this period on strong                  Sino-American disagreements and important elections
demand from China and speculation that parent company                         coming up in Europe and U.S. ■
Volkswagen might spin off its Porsche subsidiary through an
initial public offering (IPO), in order to fund VW's electric
vehicle (EV) initiatives. While no IPO materialized this period,
the fund benefited from the stock's roughly 97% advance.

Q: What hurt the fund's relative result฀
A.Z. A lighter-than-benchmark weighting in energy stocks,
along with subpar stock picks in communication services and
financials, detracted the most from a sector perspective.
Among countries, investment choices in Canada hurt the
past six months, as did exposure to Australia.
S.P. Turning to individual holdings, untimely positioning in

3 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

                                                                              LARGEST CONTRIBUTORS VS. BENCHMARK

                                                                                                                              Average    Relative
     Jed Weiss on the improving                                               Holding                  Market Segment
                                                                                                                              Relative Contribution
                                                                                                                               Weight (basis points)*
     environment for aerospace stocks:                                        Samsung Electronics      Information
                                                                                                                                1.46%        32
                                                                              Co. Ltd.                 Technology
     "It doesn't come as a surprise to most that the                          Impala Platinum
                                                                                                       Materials                0.44%        31
     COVID-19 pandemic hit the travel and supporting                          Holdings Ltd.
     aerospace industry particularly hard. Still, against                     ASML Holding NV          Information
                                                                                                                                0.69%        30
     this difficult backdrop, many businesses have done                       (Netherlands)            Technology
     an admirable job of cutting costs, maintaining                           Porsche Automobil    Consumer
                                                                                                                                0.51%        28
     pricing and improving their competitive position so                      Holding SE (Germany) Discretionary
     that they are that much more poised to thrive when                                                Information
                                                                              Lasertec Corp.                                    0.41%        27
     the global economy returns to some semblance of                                                   Technology
     normality.                                                               * 1 basis point = 0.01%.

     "European commercial aircraft manufacturer Airbus
     is one example of a company that could potentially
     emerge from the coronavirus crisis in a stronger
                                                                              LARGEST DETRACTORS VS. BENCHMARK
     position. In fact, I believe the firm has the
     opportunity to make market-share inroads as the                                                                          Average    Relative
                                                                                                                              Relative Contribution
     travel industry rebounds given Boeing's struggles                        Holding                  Market Segment          Weight (basis points)*
     with its 737 Max aircraft and Airbus' relatively strong
                                                                              Baidu.com, Inc.          Communication
     fleet of narrow-body options, including its highly                       sponsored ADR            Services
                                                                                                                               -0.08%        -27
     regarded A321 as well as its smaller A220 aircraft,
                                                                              Hoya Corp.               Health Care              0.81%        -24
     acquired from Bombardier. With favorable long-
                                                                              JD.com, Inc.             Consumer
     term growth drivers, most notably improving air                          sponsored ADR            Discretionary
                                                                                                                                0.64%        -23
     traffic growth and high technological barriers to
                                                                              Franco-Nevada Corp.      Materials                0.63%        -20
     entry, Airbus is a strong fit in terms my of investment
                                                                              Misumi Group, Inc.       Industrials              0.53%        -19
     criteria.
                                                                              * 1 basis point = 0.01%.
     "Similarly, France-based aircraft engine and
     aerospace systems company Safran – as part of its
     joint venture with General Electric – enjoys a strong
     majority of narrow-body jet market share in terms of
     both original equipment manufacturer and
     aftermarket service. The firm did a good job of
     reducing costs yet maintaining pricing during the
     recent downturn and has the potential to emerge
     with improved returns once travel industry
     fundamentals normalize.
     "CAE is a Canadian supplier of training simulation
     products and training solutions for civil aviation,
     defense and health care markets. The company built
     on its competitive position during the pandemic,
     acquiring a pilot training equipment competitor and
     growing its training service capabilities even as
     others deemphasized or exited the business.
     "Airbus, Safran and CAE were all newly added
     positions this period that were held in the fund as of
     April 30."

4 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

ASSET ALLOCATION

                                                                                                                                          Relative Change
                                                                                                                                          From Six Months
Asset Class                                                             Portfolio Weight       Index Weight         Relative Weight              Ago
Developed Value & Growth                                                     64.39%                68.30%                 -3.91%                2.25%
Developed Small Cap                                                          4.34%                 0.94%                  3.40%                 -0.30%
Emerging Markets                                                             29.33%                30.76%                 -1.43%                -1.60%
Cash & Net Other Assets                                                      1.94%                 0.00%                  1.94%                 -0.35%
Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of
the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future
settlement, Net Other Assets can be a negative number.

"Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation.

MARKET-SEGMENT DIVERSIFICATION

                                                                                                                                          Relative Change
                                                                                                                                          From Six Months
Market Segment                                                          Portfolio Weight       Index Weight         Relative Weight              Ago
Financials                                                                   21.29%                18.86%                 2.43%                 1.00%
Information Technology                                                       17.08%                13.03%                 4.05%                 -1.89%
Industrials                                                                  16.21%                11.61%                 4.60%                 0.20%
Consumer Discretionary                                                       9.67%                 13.54%                 -3.87%                -0.07%
Materials                                                                    9.65%                 8.48%                  1.17%                 -0.09%
Health Care                                                                  7.38%                 8.95%                  -1.57%                -0.51%
Consumer Staples                                                             5.82%                 8.39%                  -2.57%                0.98%
Communication Services                                                       5.62%                 7.06%                  -1.44%                0.48%
Energy                                                                       3.33%                 4.36%                  -1.03%                0.26%
Utilities                                                                    1.03%                 3.12%                  -2.09%                0.07%
Real Estate                                                                  1.00%                 2.59%                  -1.59%                -0.07%
Other                                                                        0.00%                 0.00%                  0.00%                 0.00%

5 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

COUNTRY DIVERSIFICATION

                                                                                                                                      Relative Change
                                                                                                                                      From Six Months
Country                                                               Portfolio Weight      Index Weight         Relative Weight             Ago
Japan                                                                      13.36%               14.85%                -1.49%                 0.59%
China                                                                      9.50%                11.55%                -2.05%                 -2.75%
France                                                                     7.19%                7.17%                 0.02%                  1.02%
United Kingdom                                                             7.17%                9.04%                 -1.87%                 0.40%
Canada                                                                     6.69%                6.83%                 -0.14%                 -0.16%
United States                                                              6.12%                   --                 6.12%                  -0.21%
Germany                                                                    5.86%                5.93%                 -0.07%                 -0.40%
Switzerland                                                                4.98%                5.76%                 -0.78%                 -0.49%
Taiwan                                                                     4.64%                4.48%                 0.16%                  -0.81%
Korea (South)                                                              3.99%                4.12%                 -0.13%                 0.17%
Sweden                                                                     3.16%                2.26%                 0.90%                  0.16%
India                                                                      3.04%                2.88%                 0.16%                  0.87%
Brazil                                                                     2.75%                1.42%                 1.33%                  0.79%
Netherlands                                                                2.62%                2.69%                 -0.07%                 0.75%
Hong Kong                                                                  1.98%                2.09%                 -0.11%                 0.17%
Spain                                                                      1.59%                1.56%                 0.03%                  0.19%
Mexico                                                                     1.51%                0.54%                 0.97%                  -0.68%
Italy                                                                      1.45%                1.53%                 -0.08%                 -0.07%
Australia                                                                  1.32%                4.47%                 -3.15%                 -0.41%
Russia                                                                     1.13%                0.93%                 0.20%                  0.20%
Belgium                                                                    1.02%                0.60%                 0.42%                  0.42%
Other Countries                                                            7.28%                  N/A                  N/A                    N/A
Cash & Net Other Assets                                                    1.65%                0.00%                 1.65%                  -0.68%

6 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

10 LARGEST HOLDINGS

                                                                                                                                          Portfolio Weight
                                                             Market Segment                                        Portfolio Weight
Holding                                                                                                                                   Six Months Ago
Samsung Electronics Co. Ltd.                                 Information Technology                                       2.81%                2.38%
Tencent Holdings Ltd.                                        Communication Services                                       2.72%                3.42%
Taiwan Semiconductor Manufacturing Co. Ltd.                  Information Technology                                       1.78%                1.72%
ASML Holding NV (Netherlands)                                Information Technology                                       1.74%                1.26%
Nestle SA (Reg. S)                                           Consumer Staples                                             1.57%                1.89%
Alibaba Group Holding Ltd.                                   Consumer Discretionary                                       1.55%                2.70%
AIA Group Ltd.                                               Financials                                                   1.24%                1.12%
Roche Holding AG (participation certificate)                 Health Care                                                  1.22%                1.59%
BHP Group PLC                                                Materials                                                    1.20%                0.94%
LVMH Moet Hennessy Louis Vuitton SE                          Consumer Discretionary                                       1.19%                0.71%
10 Largest Holdings as a % of Net Assets                                                                                 17.03%               19.14%
Total Number of Holdings                                                                                                   319                  299
The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings
do not include money market investments.

FISCAL PERFORMANCE SUMMARY:                                                Cumulative                                 Annualized

Periods ending April 30, 2021                                         6                             1              3                5           10 Year/
                                                                    Month           YTD            Year           Year             Year          LOF1
Fidelity Total International Equity Fund
                                                                   28.05%          6.74%          49.26%         11.05%           12.09%          6.58%
 Gross Expense Ratio: 1.34%2
MSCI All Country World ex US Index (Net MA)                        27.51%          6.61%          43.17%          7.16%           10.01%          4.89%
Morningstar Fund Foreign Large Growth                              22.15%          4.37%          47.43%         12.52%           13.00%          7.48%
% Rank in Morningstar Category (1% = Best)                            --                --         38%            58%              58%            68%
# of Funds in Morningstar Category                                    --                --          441            383             322             225
1 Lifeof Fund (LOF) if performance is less than 10 years. Fund inception date: 11/01/2007.
2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. It

does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.
Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a
gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the
fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different
returns. To learn more or to obtain the most recent month-end or other share-class performance, visit fidelity.com/performance,
institutional.fidelity.com, or 401k.com. Total returns are historical and include change in share value and reinvestment of dividends and capital gains,
if any. Cumulative total returns are reported as of the period indicated. Please see the last page(s) of this Q&A document for most-recent calendar-
quarter performance.

7 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

Definitions and Important Information                                        mutual fund performance, you should check the fund's current
                                                                             prospectus for the most up-to-date information concerning
                                                                             applicable loads, fees and expenses.
Information provided in this document is for informational and
educational purposes only. To the extent any investment information          % Rank in Morningstar Category is the fund's total-return
in this material is deemed to be a recommendation, it is not meant to        percentile rank relative to all funds that have the same Morningstar
be impartial investment advice or advice in a fiduciary capacity and is      Category. The highest (or most favorable) percentile rank is 1 and
not intended to be used as a primary basis for you or your client's          the lowest (or least favorable) percentile rank is 100. The top-
investment decisions. Fidelity, and its representatives may have a           performing fund in a category will always receive a rank of 1%. %
conflict of interest in the products or services mentioned in this           Rank in Morningstar Category is based on total returns which
material because they have a financial interest in, and receive              include reinvested dividends and capital gains, if any, and exclude
compensation, directly or indirectly, in connection with the                 sales charges. Multiple share classes of a fund have a common
management, distribution and/or servicing of these products or               portfolio but impose different expense structures.
services including Fidelity funds, certain third-party funds and
products, and certain investment services.
                                                                             RELATIVE WEIGHTS
FUND RISKS                                                                   Relative weights represents the % of fund assets in a particular
Stock markets, especially foreign markets, are volatile and can              market segment, asset class or credit quality relative to the
decline significantly in response to adverse issuer, political,              benchmark. A positive number represents an overweight, and a
regulatory, market, or economic developments. Foreign securities             negative number is an underweight. The fund's benchmark is listed
are subject to interest rate, currency exchange rate, economic, and          immediately under the fund name in the Performance Summary.
political risks, all of which are magnified in emerging markets. Value
stocks can perform differently than other types of stocks and can
continue to be undervalued by the market for long periods of time.
The securities of smaller, less well-known companies can be more
volatile than those of larger companies.

IMPORTANT FUND INFORMATION
Relative positioning data presented in this commentary is based on
the fund's primary benchmark (index) unless a secondary benchmark
is provided to assess performance.

INDICES
It is not possible to invest directly in an index. All indices represented
are unmanaged. All indices include reinvestment of dividends and
interest income unless otherwise noted.

MSCI All Country World ex USA Index (Net MA Tax) is a market-
capitalization-weighted index designed to measure the investable
equity market performance for global investors of large and mid-cap
stocks in developed and emerging markets, excluding the United
States. Index returns are adjusted for tax withholding rates
applicable to U.S. based mutual funds organized as Massachusetts
business trusts.

MARKET-SEGMENT WEIGHTS
Market-segment weights illustrate examples of sectors or
industries in which the fund may invest, and may not be
representative of the fund's current or future investments. They
should not be construed or used as a recommendation for any
sector or industry.

RANKING INFORMATION
© 2021 Morningstar, Inc. All rights reserved. The Morningstar
information contained herein: (1) is proprietary to Morningstar
and/or its content providers; (2) may not be copied or
redistributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are
responsible for any damages or losses arising from any use of this
information. Fidelity does not review the Morningstar data and, for

8 |
PORTFOLIO MANAGER Q&A | AS OF APRIL 30, 2021

                                                                              Global Natural Resources Fund, and co-managed Fidelity Global
Manager Facts                                                                 Telecommunications Fund. He has been in the financial industry
                                                                              since joining Fidelity in 1996 as a member of the Fixed Income
Jed Weiss is a portfolio manager in the Equity division at Fidelity           division.
Investments. Fidelity Investments is a leading provider of
investment management, retirement planning, portfolio                         Mr. Zavratsky earned his bachelor of science degree from
guidance, brokerage, benefits outsourcing, and other financial                Boston College.
products and services to institutions, financial intermediaries,
and individuals.
                                                                              Sam Polyak is a portfolio manager in the Equity division at
                                                                              Fidelity Investments. Fidelity Investments is a leading provider of
In this role, Mr. Weiss manages Fidelity Series International
                                                                              investment management, retirement planning, portfolio
Growth Fund, Fidelity Series International Small Cap Fund,
                                                                              guidance, brokerage, benefits outsourcing, and other financial
Fidelity International Small Cap Opportunities Fund, Fidelity
                                                                              products and services to institutions, financial intermediaries,
Advisor International Small Cap Opportunities Fund, Fidelity
                                                                              and individuals.
International Growth Fund, and Fidelity Advisor International
Growth Fund. Additionally, he co-manages Fidelity Total
                                                                              In this role, he is responsible for the FIAM Emerging Markets
International Equity Fund and Fidelity Advisor Total International
                                                                              strategy, FIAM Concentrated Emerging Markets strategy, the
Equity Fund.
                                                                              Emerging Markets Multi-Manager product with an emphasis on
                                                                              the consumer and materials space, and also serves as manager
Prior to assuming his current position in 2007, Mr. Weiss covered
                                                                              of Fidelity Advisor Emerging Markets Fund and VIP Emerging
the telecommunications, health care, and consumer sectors as
                                                                              Markets Portfolio.
an analyst on Fidelity's Global Emerging Markets team.
Previously, he worked as an analyst and portfolio manager of
                                                                              Prior to joining Fidelity in June 2010, Mr. Polyak was a principal,
Select Environment Fund, during which he also covered a wide
                                                                              co-portfolio manager at Ninth Wave Capital Management from
range of industries within the cyclical sector. Prior to that, Mr.
                                                                              2007 to 2009, where he was a founding partner of the long-only
Weiss held various other roles at Fidelity, including equity
                                                                              and long-short Emerging Markets Equity fund. Previously, he
research analyst covering communications, semiconductors, and
                                                                              worked as head of emerging markets (EM) research at
networking stocks, during which he also managed Select
                                                                              Oppenheimer Funds from 2005 to 2007, and as a co-portfolio
Networking and Infrastructure Portfolio. Additionally, he worked
                                                                              manager, head of EM research, and analyst at Pioneer
as an equity research analyst covering semiconductors and as an
                                                                              Investments from 1998 to 2005. He has been in the financial
associate analyst covering U.S. regional banks.
                                                                              industry since 1998.
Before joining Fidelity in 1997, Mr. Weiss was a summer
                                                                              Mr. Polyak earned his bachelor of arts degree in finance from the
associate at Goldman Sachs and a legislative affairs intern at the
                                                                              University of Massachusetts Amherst and his master of business
White House. He has been in the financial industry since 1997.
                                                                              administration degree in finance from New York University
                                                                              Leonard N. Stern School of Business. He is also a CFA®
Mr. Weiss earned his bachelor of arts degree in government
                                                                              charterholder.
from Harvard University, where he graduated Phi Beta Kappa.

Alex Zavratsky is a portfolio manager in the Equity division at
Fidelity Investments. Fidelity Investments is a leading provider of
investment management, retirement planning, portfolio
guidance, brokerage, benefits outsourcing, and other financial
products and services to institutions, financial intermediaries,
and individuals.

In this role, Mr. Zavratsky is responsible for managing Fidelity
and Fidelity Advisor International Value Fund, Fidelity and
Fidelity Advisor Total International Equity Fund, and Fidelity
Series International Value Fund.

Prior to assuming his current role in September 2011, Mr.
Zavratsky was a portfolio assistant on Fidelity Diversified
International Fund. Previously, he managed various other
Fidelity funds, including a Fidelity International Country
Diversified Equity Fund, Fidelity Global Industrials Fund, Fidelity

9 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.
PERFORMANCE SUMMARY:                                                                                    Annualized

Quarter ending September 30, 2021                                              1                 3                     5                 10 Year/
                                                                              Year              Year                  Year                 LOF1
Fidelity Total International Equity Fund
                                                                          26.59%               12.17%                11.16%               9.77%
 Gross Expense Ratio: 1.34%2
1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 11/01/2007.
2  This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. It
does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.
Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a
gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the
fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different
returns. To learn more or to obtain the most recent month-end or other share-class performance, visit fidelity.com/performance,
institutional.fidelity.com, or 401k.com. Total returns are historical and include change in share value and reinvestment of dividends and capital gains,
if any. Cumulative total returns are reported as of the period indicated.

Before investing in any mutual fund, please carefully consider                 Information included on this page is as of the most recent calendar
the investment objectives, risks, charges, and expenses. For                   quarter.
this and other information, call or write Fidelity for a free                  S&P 500 is a registered service mark of Standard & Poor's Financial
prospectus or, if available, a summary prospectus. Read it                     Services LLC.
carefully before you invest.                                                   Other third-party marks appearing herein are the property of their
                                                                               respective owners.
Past performance is no guarantee of future results.
                                                                               All other marks appearing herein are registered or unregistered
Views expressed are through the end of the period stated and do not            trademarks or service marks of FMR LLC or an affiliated company.
necessarily represent the views of Fidelity. Views are subject to change at
                                                                               Fidelity Brokerage Services LLC, Member NYSE, SIPC., 900 Salem Street,
any time based upon market or other conditions and Fidelity disclaims any
                                                                               Smithfield, RI 02917.
responsibility to update such views. These views may not be relied on as
investment advice and, because investment decisions for a Fidelity fund        Fidelity Distributors Company LLC, 500 Salem Street, Smithfield, RI
are based on numerous factors, may not be relied on as an indication of        02917.
trading intent on behalf of any Fidelity fund. The securities mentioned are    © 2021 FMR LLC. All rights reserved.
not necessarily holdings invested in by the portfolio manager(s) or FMR        Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.
LLC. References to specific company securities should not be construed
                                                                               706808.14.0
as recommendations or investment advice.
Diversification does not ensure a profit or guarantee against a loss.
You can also read