Fund Objective

Fidelity Funds International Fund Invests principally in equities in markets throughout the world including major markets and smaller emerging markets.

View on Past Performance

Over the quarter, the fund underperformed its benchmark. Stock selection detracted from returns amid heightened volatility in markets. However, the impact was partially mitigated by the positive contribution of asset allocation decisions. In the US segment of the portfolio, positions in energy firms held back performance as oil prices declined. Moreover, holdings in capital goods firms were hampered by expectations of weakening economic activity and a more challenging pricing environment.In the UK sub-portfolio,a bias towards financial services firms hurt returns in light of lower earnings expectations.In contrast,a lack of exposure to selected capital goods companies buoyed returns from the Japanese segment. Meanwhile, a strong underweight in the UK added value, as did an above-benchmark holding in the defensive US market. Conversely, an overweight position in Europe and an offbenchmark exposure to Emerging Markets,which lagged other markets over the quarter,hampered returns.

Fund Details