Fidelity Global Equity Investment Trust

Transcription

1 Fidelity Global Equity Investment Trust Semi-Annual Report December 31, 2015 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.

2 Fidelity Global Equity Investment Trust Schedule of Investments December 31, 2015 (Unaudited) Showing Percentage of Net Assets Attributable to Holders of Redeemable Units (Net Assets) Equities 92.4% Australia 2.2% CONSUMER DISCRETIONARY 0.1% Flight Centre Travel Group Ltd. 4,069 $ 162 $ 162 CONSUMER STAPLES 0.1% Woolworths Ltd. 4, ENERGY 0.1% Santos Ltd. 28, FINANCIALS 1.2% AMP Ltd. 34, Australia & New Zealand Banking Group Ltd. 12, Challenger Ltd. 13, Insurance Australia Group Ltd. 8, Macquarie Group Ltd. 3, Westfield Corp. unit 16, Westpac Banking Corp. 6, TOTAL FINANCIALS 1,250 1,397 HEALTH CARE 0.1% Ansell Ltd. 3, INDUSTRIALS 0.2% Brambles Ltd. 9, SEEK Ltd. 6, TOTAL INDUSTRIALS MATERIALS 0.2% Incitec Pivot Ltd. 37, Rio Tinto Ltd. 2, TOTAL MATERIALS TELECOMMUNICATION SERVICES 0.2% Telstra Corp. Ltd. 49, TOTAL AUSTRALIA 2,501 2,595 Austria 0.2% FINANCIALS 0.1% Erste Group Bank AG 3, INDUSTRIALS 0.1% Andritz AG 1, TOTAL AUSTRIA Bailiwick of Jersey 1.0% CONSUMER DISCRETIONARY 0.4% Delphi Automotive PLC 4, HEALTH CARE 0.4% Shire PLC 4, INDUSTRIALS 0.1% Wolseley PLC 1, MATERIALS 0.1% Randgold Resources Ltd. 1, TOTAL BAILIWICK OF JERSEY 1,003 1,253 Belgium 0.6% CONSUMER STAPLES 0.5% Anheuser Busch InBev SA NV 3, FINANCIALS 0.1% KBC Groep NV 1,464 $ 81 $ 127 TOTAL BELGIUM Bermuda 0.3% FINANCIALS 0.3% Hongkong Land Holdings Ltd. 7, Invesco Ltd. 6, TOTAL FINANCIALS Canada 2.8% CONSUMER DISCRETIONARY 0.3% Gildan Activewear, Inc. 3, Magna International, Inc. Class A (sub. vtg.) 2, Quebecor, Inc. Class B (sub. vtg.) 2, TOTAL CONSUMER DISCRETIONARY CONSUMER STAPLES 0.2% Alimentation Couche Tard, Inc. Class B (sub. vtg.) 2, Loblaw Companies Ltd. 1, TOTAL CONSUMER STAPLES ENERGY 0.7% ARC Resources Ltd. 1, Canadian Natural Resources Ltd. 6, Imperial Oil Ltd. 1, Keyera Corp. 2, Peyto Exploration & Development Corp. 5, Suncor Energy, Inc. 6, Tourmaline Oil Corp. 1, TOTAL ENERGY FINANCIALS 1.1% Brookfield Asset Management, Inc. Class A 3, Intact Financial Corp. 2, Royal Bank of Canada 4, Sun Life Financial, Inc. 5, The Toronto Dominion Bank 6, TOTAL FINANCIALS 1,177 1,304 HEALTH CARE 0.0% Valeant Pharmaceuticals International, Inc. (Canada) INDUSTRIALS 0.1% Stantec, Inc. 3, INFORMATION TECHNOLOGY 0.1% Constellation Software, Inc MATERIALS 0.2% Agrium, Inc. 1, Eldorado Gold Corp. 30, TOTAL MATERIALS Semi-Annual Reportport 2

3 Equities continued Canada continued TELECOMMUNICATION SERVICES 0.1% Rogers Communications, Inc. Class B (non vtg.) 2,600 $ 121 $ 124 TOTAL CANADA 3,214 3,397 Cayman Islands 0.3% FINANCIALS 0.1% Cheung Kong Property Holdings Ltd. 12, INDUSTRIALS 0.2% CK Hutchison Holdings Ltd. 13, TOTAL CAYMAN ISLANDS Curacao 0.6% ENERGY 0.6% Schlumberger Ltd. 7, Denmark 0.7% FINANCIALS 0.2% Danske Bank A/S 6, HEALTH CARE 0.5% Novo Nordisk A/S Series B 6, TOTAL DENMARK Finland 0.2% FINANCIALS 0.2% Sampo Oyj (A ) 2, France 3.9% CONSUMER DISCRETIONARY 0.7% Accor SA 1, LVMH Moet Hennessy Louis Vuitton SA Renault SA 1, Valeo SA Vivendi SA 8, TOTAL CONSUMER DISCRETIONARY CONSUMER STAPLES 0.3% Danone SA 2, L Oreal SA TOTAL CONSUMER STAPLES ENERGY 0.6% Total SA 11, FINANCIALS 0.6% AXA SA 9, Societe Generale Series A 5, TOTAL FINANCIALS HEALTH CARE 0.5% Sanofi SA 5, INDUSTRIALS 0.7% Compagnie de St. Gobain 3, Edenred SA 4, Rexel SA 7,344 $ 157 $ 136 Safran SA 1, Zodiac Aerospace 4, TOTAL INDUSTRIALS TELECOMMUNICATION SERVICES 0.3% Iliad SA Orange SA 10, TOTAL TELECOMMUNICATION SERVICES UTILITIES 0.2% Suez Environnement SA 8, TOTAL FRANCE 4,430 4,714 Germany 2.8% CONSUMER DISCRETIONARY 0.8% adidas AG 1, Axel Springer Verlag AG 1, Continental AG 1, ProSiebenSat.1 Media AG 2, TOTAL CONSUMER DISCRETIONARY CONSUMER STAPLES 0.1% Beiersdorf AG 1, FINANCIALS 0.1% Deutsche Boerse AG 1, HEALTH CARE 0.6% Bayer AG 2, Fresenius SE & Co. KGaA 3, TOTAL HEALTH CARE INFORMATION TECHNOLOGY 0.3% Rocket Internet AG 2, SAP AG United Internet AG 2, TOTAL INFORMATION TECHNOLOGY MATERIALS 0.1% Symrise AG 1, TELECOMMUNICATION SERVICES 0.5% Deutsche Telekom AG 16, Telefonica Deutschland Holding AG 16, TOTAL TELECOMMUNICATION SERVICES UTILITIES 0.3% E.ON AG 22, TOTAL GERMANY 2,884 3,318 Hong Kong 0.8% CONSUMER DISCRETIONARY 0.2% Techtronic Industries Co. Ltd. 34, FINANCIALS 0.5% AIA Group Ltd. 42, Hang Seng Bank Ltd. 7, Hysan Development Co. Ltd. 10, Sino Land Ltd. 34, TOTAL FINANCIALS Semi-Annual Report

4 Fidelity Global Equity Investment Trust Schedule of Investments (Unaudited) continued Equities continued Hong Kong continued TELECOMMUNICATION SERVICES 0.1% HKT Trust/HKT Ltd. unit 40,680 $ 46 $ 72 TOTAL HONG KONG Ireland 3.2% FINANCIALS 0.0% Bank of Ireland 110, HEALTH CARE 2.1% Allergan PLC 2, ,167 Endo Health Solutions, Inc. 2, Medtronic PLC 10, ,149 TOTAL HEALTH CARE 2,017 2,545 INDUSTRIALS 0.8% Eaton Corp. PLC 7, Ingersoll Rand PLC 5, TOTAL INDUSTRIALS MATERIALS 0.3% CRH PLC 2, James Hardie Industries PLC CDI 13, TOTAL MATERIALS TOTAL IRELAND 3,289 3,891 Israel 0.5% HEALTH CARE 0.5% Teva Pharmaceutical Industries Ltd. 1, Teva Pharmaceutical Industries Ltd. sponsored ADR 4, TOTAL HEALTH CARE TELECOMMUNICATION SERVICES 0.0% Bezeq The Israel Telecommunication Corp. Ltd. 19, TOTAL ISRAEL Italy 0.9% FINANCIALS 0.6% Assicurazioni Generali SpA 6, Intesa Sanpaolo SpA 87, Unione di Banche Italiane ScpA 9, Unione di Banche Italiane ScpA rights 7, TOTAL FINANCIALS INDUSTRIALS 0.2% Finmeccanica SpA 15, TELECOMMUNICATION SERVICES 0.1% Telecom Italia SpA 97, TOTAL ITALY 894 1,121 Japan 8.2% CONSUMER DISCRETIONARY 1.7% Bridgestone Corp. 3, Casio Computer Co. Ltd. 2,500 $ 72 $ 81 DENSO Corp. 1, Dentsu, Inc. 1, Don Quijote Holdings Co. Ltd. 1, Fast Retailing Co. Ltd Isuzu Motors Ltd. 4, Nitori Holdings Co. Ltd Sony Corp. 7, Suzuki Motor Corp. 4, Toyota Motor Corp. 8, Yamaha Motor Co. Ltd. 5, TOTAL CONSUMER DISCRETIONARY 1,725 2,072 CONSUMER STAPLES 0.6% Asahi Group Holdings 3, Japan Tobacco, Inc. 7, Seven & i Holdings Co. Ltd. 4, TOTAL CONSUMER STAPLES FINANCIALS 1.6% ACOM Co. Ltd. 6, AEON MALL Co. Ltd. 2, Leopalace21 Corp. 16, Mitsubishi UFJ Financial Group, Inc. 67, Mitsui Fudosan Co. Ltd. 5, Nippon Prologis REIT, Inc ORIX Corp. 18, Seven Bank Ltd. 22, Shinsei Bank Ltd. 25, Sony Financial Holdings, Inc. 3, Sumitomo Mitsui Financial Group, Inc. 4, Tokio Marine Holdings, Inc. 1, TOTAL FINANCIALS 1,745 1,974 HEALTH CARE 0.9% Astellas Pharma, Inc. 17, Hoya Corp. 5, Miraca Holdings, Inc. 1, Olympus Corp. 5, TOTAL HEALTH CARE 813 1,043 INDUSTRIALS 1.2% East Japan Railway Co. 3, Glory Ltd. 1, IHI Corp. 21, Itochu Corp. 6, Mabuchi Motor Co. Ltd Makita Corp. 2, Minebea Ltd. 5, Misumi Group, Inc. 6, Mitsubishi Heavy Industries Ltd. 7, NGK Insulators Ltd. 3, Nidec Corp. 1, Taisei Corp. 11, Toto Ltd. 1, TOTAL INDUSTRIALS 1,269 1,451 INFORMATION TECHNOLOGY 0.9% Hitachi Ltd. 29, Semi-Annual Reportport 4

5 Equities continued Japan continued INFORMATION TECHNOLOGY continued Keyence Corp. 300 $ 204 $ 228 Konica Minolta, Inc. 7, NEC Corp. 17, Nomura Research Institute Ltd. 1, Taiyo Yuden Co. Ltd. 2, TDK Corp Trend Micro, Inc. 3, TOTAL INFORMATION TECHNOLOGY 944 1,019 MATERIALS 0.5% Daicel Chemical Industries Ltd. 3, Hitachi Metals Ltd. 4, JSR Corp. 4, Mitsui Chemicals, Inc. 17, Sumitomo Chemical Co. Ltd. 26, TOTAL MATERIALS TELECOMMUNICATION SERVICES 0.7% KDDI Corp. 10, Nippon Telegraph & Telephone Corp. 2, SoftBank Corp. 4, TOTAL TELECOMMUNICATION SERVICES UTILITIES 0.1% Kansai Electric Power Co., Inc. 9, TOTAL JAPAN 8,316 9,863 Netherlands 1.6% CONSUMER DISCRETIONARY 0.2% Altice NV: Class A 5, Class B 2, RELX NV 4, TOTAL CONSUMER DISCRETIONARY CONSUMER STAPLES 0.4% Unilever NV (Certificaten Van Aandelen) (Bearer) 7, FINANCIALS 0.2% ABN AMRO Group NV GDR 3, ING Groep NV (Certificaten Van Aandelen) 11, TOTAL FINANCIALS INDUSTRIALS 0.2% Koninklijke Philips Electronics NV 6, MATERIALS 0.6% LyondellBasell Industries NV Class A 5, TOTAL NETHERLANDS 1,772 1,978 Norway 0.3% ENERGY 0.1% Statoil ASA 7, MATERIALS 0.2% Yara International ASA 3,044 $ 178 $ 181 TOTAL NORWAY Singapore 0.6% FINANCIALS 0.2% CapitaLand Ltd. 22, United Overseas Bank Ltd. 12, TOTAL FINANCIALS INFORMATION TECHNOLOGY 0.4% Avago Technologies Ltd. 2, TOTAL SINGAPORE Spain 0.8% CONSUMER DISCRETIONARY 0.2% Inditex SA 4, FINANCIALS 0.1% Bankinter SA 10, INFORMATION TECHNOLOGY 0.2% Amadeus IT Holding SA Class A 3, TELECOMMUNICATION SERVICES 0.0% Telefonica SA 3, UTILITIES 0.3% Iberdrola SA 28, Red Electrica Corporacion SA TOTAL UTILITIES TOTAL SPAIN Sweden 1.5% CONSUMER DISCRETIONARY 0.2% H&M Hennes & Mauritz AB (B ) 5, CONSUMER STAPLES 0.2% Svenska Cellulosa AB (SCA) (B ) 6, ENERGY 0.1% Lundin Petroleum AB 7, FINANCIALS 0.5% Nordea Bank AB 25, Swedbank AB (A ) 7, TOTAL FINANCIALS INDUSTRIALS 0.4% Alfa Laval AB 11, Sandvik AB 14, TOTAL INDUSTRIALS TELECOMMUNICATION SERVICES 0.1% TeliaSonera AB 13, TOTAL SWEDEN 1,742 1,860 Switzerland 3.7% CONSUMER STAPLES 0.7% Nestle SA 7, Semi-Annual Report

6 Fidelity Global Equity Investment Trust Schedule of Investments (Unaudited) continued Equities continued Switzerland continued FINANCIALS 1.5% ACE Ltd. 4,700 $ 671 $ 760 Credit Suisse Group AG 4, Julius Baer Group Ltd. 2, Partners Group Holding AG UBS Group AG 10, Zurich Insurance Group AG 1, TOTAL FINANCIALS 1,683 1,859 HEALTH CARE 0.9% Novartis AG 9,174 1,037 1,092 MATERIALS 0.6% Clariant AG (Reg.) 7, Syngenta AG (Switzerland) TOTAL MATERIALS TOTAL SWITZERLAND 3,991 4,441 United Kingdom 6.5% CONSUMER DISCRETIONARY 1.1% InterContinental Hotel Group PLC 1, ITV PLC 71, Liberty Global PLC Class C 5, Taylor Wimpey PLC 76, Whitbread PLC 1, William Hill PLC 8, TOTAL CONSUMER DISCRETIONARY 1,029 1,284 CONSUMER STAPLES 1.3% British American Tobacco PLC (United Kingdom) 2, Diageo PLC 12, Imperial Tobacco Group PLC 7, Reckitt Benckiser Group PLC 1, Unilever PLC 4, TOTAL CONSUMER STAPLES 1,394 1,625 ENERGY 0.9% Amec Foster Wheeler PLC 10, BG Group PLC 18, BP PLC 21, Royal Dutch Shell PLC: Class A (Netherlands) 1, Class A (United Kingdom) 13, TOTAL ENERGY 1,227 1,102 FINANCIALS 1.8% Aviva PLC 20, Barclays PLC 43, British Land Co. PLC 10, Direct Line Insurance Group PLC 11, HSBC Holdings PLC (United Kingdom) 46, Lloyds Banking Group PLC 293, London Stock Exchange Group PLC 3, Prudential PLC 6, Schroders PLC 2,032 $ 103 $ 123 St. James s Place Capital PLC 2, TOTAL FINANCIALS 1,994 2,190 HEALTH CARE 0.2% GlaxoSmithKline PLC 4, Hikma Pharmaceuticals PLC 2, TOTAL HEALTH CARE INDUSTRIALS 0.3% Capita Group PLC 6, Rolls Royce Group PLC 11, The Weir Group PLC 1, TOTAL INDUSTRIALS MATERIALS 0.3% Croda International PLC 2, Mondi PLC 3, Rio Tinto PLC 3, TOTAL MATERIALS TELECOMMUNICATION SERVICES 0.5% Vodafone Group PLC 131, UTILITIES 0.1% Centrica PLC 36, TOTAL UNITED KINGDOM 7,379 7,888 United States of America 48.2% CONSUMER DISCRETIONARY 6.4% Amazon.com, Inc. 1, AutoZone, Inc Comcast Corp. Class A 11, Dillard s, Inc. Class A 2, General Motors Co. 14, Home Depot, Inc. 2, Interpublic Group of Companies, Inc. 10, L Brands, Inc. 2, Las Vegas Sands Corp. 3, Macy s, Inc. 3, NIKE, Inc. Class B 7, PVH Corp. 1, Starbucks Corp. 3, The Walt Disney Co. 5, Twenty First Century Fox, Inc. Class A 4, VF Corp. 3, Wyndham Worldwide Corp. 2, TOTAL CONSUMER DISCRETIONARY 6,064 7,644 CONSUMER STAPLES 5.6% Constellation Brands, Inc. Class A (sub. vtg.) 3, CVS Health Corp. 5, Estee Lauder Companies, Inc. Class A 4, Mead Johnson Nutrition Co. Class A 4, Molson Coors Brewing Co. Class B 2, Semi-Annual Reportport 6

7 Equities continued United States of America continued CONSUMER STAPLES continued Mondelez International, Inc. 7,500 $ 298 $ 465 Monster Beverage Corp. 3, Procter & Gamble Co. 7, Reynolds American, Inc. 12, The Coca Cola Co. 21, ,278 TOTAL CONSUMER STAPLES 5,036 6,799 ENERGY 2.3% Apache Corp. 6, Devon Energy Corp. 5, EQT Corp. 1, Halliburton Co. 8, Marathon Oil Corp. 14, Marathon Petroleum Corp. 10, Occidental Petroleum Corp. 3, Oceaneering International, Inc. 3, Whiting Petroleum Corp. 7, TOTAL ENERGY 3,337 2,775 FINANCIALS 8.3% American Tower Corp. 2, Bank of America Corp. 33, Berkshire Hathaway, Inc. Class B 2, BlackRock, Inc. Class A 1, Boston Properties, Inc. 3, Capital One Financial Corp. 5, Citigroup, Inc. 12, Comerica, Inc. 6, Duke Realty LP 6, Extra Space Storage, Inc. 4, JPMorgan Chase & Co. 11, ,087 M&T Bank Corp. 2, McGraw Hill Financial, Inc. 2, MetLife, Inc. 4, The Travelers Companies, Inc. 3, U.S. Bancorp 11, Wells Fargo & Co. 17, ,346 TOTAL FINANCIALS 7,654 10,024 HEALTH CARE 6.7% Aetna, Inc. 3, Agilent Technologies, Inc. 7, Air Methods Corp. 4, AmSurg Corp. 5, BioMarin Pharmaceutical, Inc. 4, Boston Scientific Corp. 24, Bristol Myers Squibb Co. 6, Gilead Sciences, Inc. 3, Global Blood Therapeutics, Inc. 1, HCA Holdings, Inc. 2, Johnson & Johnson 9,500 1,137 1,350 McKesson Corp. 1, Medivation, Inc. 7, Seres Therapeutics, Inc. 4, The Cooper Companies, Inc. 1, UnitedHealth Group, Inc. 2,500 $ 366 $ 407 Vertex Pharmaceuticals, Inc. 2, TOTAL HEALTH CARE 6,535 8,026 INDUSTRIALS 4.7% Acuity Brands, Inc. 1, AGCO Corp. 5, AMETEK, Inc. 5, BWX Technologies, Inc. 14, Danaher Corp. 6, Deere & Co. 6, General Electric Co. 38,100 1,307 1,642 Textron, Inc. 6, United Parcel Service, Inc. Class B 1, United Technologies Corp. 1, TOTAL INDUSTRIALS 4,706 5,676 INFORMATION TECHNOLOGY 10.1% Activision Blizzard, Inc. 10, Adobe Systems, Inc. 4, Alliance Data Systems Corp. 1, Alphabet, Inc.: Class A ,033 Class C Analog Devices, Inc. 6, Apple, Inc. 16,000 1,614 2,324 Cognizant Technology Solutions Corp. Class A 6, Facebook, Inc. Class A 7, ,028 Fidelity National Information Services, Inc. 4, Fiserv, Inc. 3, HP, Inc. 34, MasterCard, Inc. Class A 5, Maxim Integrated Products, Inc. 3, Oracle Corp. 3, PayPal Holdings, Inc. 9, Qualcomm Technologies, Inc. 5, Visa, Inc. Class A 8, TOTAL INFORMATION TECHNOLOGY 9,198 12,168 MATERIALS 1.5% Ashland, Inc. 2, E.I. du Pont de Nemours & Co. 6, Monsanto Co. 3, WestRock Co. 5, TOTAL MATERIALS 1,599 1,779 TELECOMMUNICATION SERVICES 1.5% AT&T, Inc. 11, Cogent Communications Group, Inc. 8, SBA Communications Corp. Class A 3, T Mobile U.S., Inc. 7, TOTAL TELECOMMUNICATION SERVICES 1,449 1,818 UTILITIES 1.1% CMS Energy Corp. 7, Semi-Annual Report

8 Fidelity Global Equity Investment Trust Schedule of Investments (Unaudited) continued Equities continued United States of America continued UTILITIES continued Edison International 5,500 $ 393 $ 451 Xcel Energy, Inc. 10, TOTAL UTILITIES 1,091 1,337 TOTAL UNITED STATES OF AMERICA 46,669 58,046 TOTAL EQUITIES 94, ,369 TOTAL INVESTMENT PORTFOLIO 92.4% $94, ,369 NET OTHER ASSETS (LIABILITIES) 7.6% 9,161 NET ASSETS 100% $ 120,530 Futures Contracts Purchased Expiration Date Underlying Face Amount at Value Unrealized Appreciation/ (Depreciation) Equity Index Contracts 23 CME E mini S&P 500 Index Contracts (United States) March ,239 $ ICE E mini MSCI EAFE Index Contracts (United States) March , TOTAL FUTURES CONTRACTS $ 5,236 $ 92 The face value of futures purchased as a percentage of Net Assets is 4.4% Presentation Notes amount includes broker commissions and other trading expenses, if any. Investment Valuation The following is a summary of the inputs used, as of December 31, 2015 and June 30, 2015, involving the Fund s 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 December 31, 2015: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Semi-Annual Reportport 8

9 Valuation Inputs at December 31, 2015: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Consumer Discretionary $ 14,680 $10,340 $ 4,340 $ Consumer Staples 12,240 8,208 4,032 Energy 6,498 4,395 2,103 Financials 23,545 13,591 9,954 Health Care 16,012 11,269 4,743 Industrials 11,055 7,496 3,559 Information Technology 14,378 13,003 1,375 Materials 5,432 2,973 2,459 Telecommunication Services 4,968 2,109 2,859 Utilities 2,561 1, Total Investments in Securities: $111,369 $75,047 $36,322 $ Derivative Instruments: Assets Futures Contracts $ 92 $ 92 $ $ Total Derivative Instruments: $ 92 $ 92 $ $ Valuation Inputs at June 30, 2015: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $11,038 $10,222 $ 816 $ Consumer Staples 7,982 5,984 1,998 Energy 5,744 4,285 1,459 Financials 17,190 14,791 2,399 Health Care 12,353 10,010 2,343 Industrials 8,254 8, Information Technology 10,452 10, Materials 4,365 3, Telecommunication Services 3,161 1,780 1,381 Utilities 1,463 1, Total Investments in Securities: $82,002 $70,708 $11,294 $ Derivative Instruments: Liabilities: Futures Contracts $ (95) $ (95) $ $ Total Derivative Instruments: $ (95) $ (95) $ $ The following is a summary of transfers between Level 1 and Level 2 for the periods ended December 31, 2015 and June 30, 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: Total Transfers Level 1 to Level 2 $ 12,035 Level 2 to Level 1 $ 634 Transfers Total Level 1 to Level 2 $ 329 Level 2 to Level 1 $2,202 9 Semi-Annual Report

10 Financial Statements (Unaudited) Statements of Financial Position Amounts in thousands of Canadian Dollars /thousands of units (except per unit amounts) As at December 31, 2015 June 30, 2015 Assets (Note 3) Current assets Investments at fair value through profit or loss $ 111,369 $ 82,002 Cash 9,138 5,334 Cash collateral (Note 8) Receivable for investments sold Other receivables 4 Accrued interest and dividends receivable Receivable on sale of units ,139 87,777 Liabilities (Note 3) Current liabilities Payable for investments purchased Payable on redemption of units Payable for daily variation for derivative instruments (Note 8) 57 Other payables and accrued expenses (Notes 4 and 5) Net assets attributable to holders of redeemable units (Notes 3 and 6) $ 120,530 $ 87,422 Net assets attributable to holders of redeemable units per Series and per unit (Note 6) Series O: ($120,530 / 6,213 units and $87,422 / 4,563 units, respectively) $ $ Semi-Annual Reportport 10

11 Statements of Comprehensive Income Amounts in thousands of Canadian Dollars (except per unit amounts) For the six-month periods ended December 31, Investment income (Note 3) Interest $ 4 $ Dividends 1, Security lending 1 2 Net gain (loss) on Investments Net realized gain (loss) on investments 2,359 1,710 Change in net unrealized appreciation (depreciation) on investments 2,632 2,222 4,991 3,932 Net gain (loss) on Foreign Currencies Net realized gain (loss) on foreign currency transactions Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies (1) (1) Net gain (loss) on Derivatives Net realized gain (loss) on derivatives (371) Change in net unrealized appreciation (depreciation) on derivatives 187 (184) Total investment income (loss) 6,149 4,556 Operating expenses (Note 4) Management and advisory fees Other operating expenses Independent Review Committee fees Commissions and other portfolio costs Sales tax Foreign taxes withheld (Note 5) Total operating expenses Net increase (decrease) in net assets attributable to holders of redeemable units from operations $ 5,995 $ 4,476 Other information: Increase (decrease) in net assets attributable to holders of redeemable units from operations per Series (Note 3) Series O $ 5,995 $ 4,476 Increase (decrease) in net assets attributable to holders of redeemable units from operations per Series per unit (Note 3) Series O $ $ Semi-Annual Report

12 Financial Statements (Unaudited) continued Statements of Changes in Net Assets Attributable to Holders of Redeemable Units Amounts in thousands of Canadian Dollars For the six-month period ended December 31, 2015 Series O Net assets attributable to holders of redeemable units, beginning of period $ 87,422 Distributions to holders of redeemable units (Note 5) From net investment income (1,612) From net realized gain (3,899) (5,511) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 32,752 Reinvestment of distributions 5,511 Amounts paid upon redemption of redeemable units (5,639) 32,624 Increase (decrease) in net assets attributable to holders of redeemable units from operations 5,995 Net increase (decrease) in net assets attributable to holders of redeemable units 33,108 Net assets attributable to holders of redeemable units, end of period $ 120,530 Amounts in thousands of Canadian Dollars For the six-month period ended December 31, 2014 Series O Net assets attributable to holders of redeemable units, beginning of period $ 55,278 Distributions to holders of redeemable units (Note 5) From net investment income (1,266) From net realized gain (2,600) (3,866) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 6,820 Reinvestment of distributions 3,866 Amounts paid upon redemption of redeemable units (6,581) 4,105 Increase (decrease) in net assets attributable to holders of redeemable units from operations 4,476 Net increase (decrease) in net assets attributable to holders of redeemable units 4,715 Net assets attributable to holders of redeemable units, end of period $ 59,993 Semi-Annual Reportport 12

13 Statements of Cash Flows Amounts in thousands of Canadian Dollars For the six-month periods ended December 31, Cash, beginning of period $ 5,334 $ 979 Cash flows from (used in) operating activities: Purchases of investments and derivatives (44,142) (16,407) Proceeds from sale and maturity of investments and derivatives 19,769 15,134 Cash (deposited) returned for collateral (73) Cash receipts from dividend income 1, Cash receipts from interest income 13 Cash receipts from other investment income 1 2 Cash paid for operating expenses (44) (80) Net cash from (used in) operating activities (23,260) (730) Cash flows from (used in) financing activities: Proceeds from sales of units 32,697 7,234 Amounts paid upon redemption of units (5,631) (6,551) Net cash from (used in) financing activities 27, Net change in cash 3,806 (47) Foreign exchange gain (loss) on cash (2) 88 Cash, end of period $ 9,138 $ 1, Semi-Annual Report

14 Notes to Financial Statements (Unaudited) For the period ended December 31, 2015 (Unaudited) (Amounts in thousands of Canadian dollars except per unit amounts) 1. Formation of the Fund Fidelity Global Equity Investment Trust (Fund) is a unit trust formed under the laws of Ontario and governed by a Declaration of Trust dated October 31, 2008 (Inception Date), as amended thereafter from time to time. The Fund is authorized to issue an unlimited number of units. 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. FIAM LLC (FIAM) (formerly Pyramis Global Advisors, LLC), an affiliate of Fidelity, is responsible for the investment management of the Fund s portfolio. The registered office of the Fund is located at 483 Bay Street, Suite 300, Toronto, Ontario, M5G 2N7. The Fund offers Series O units, which are only available to other Fidelity products and are not available for public purchase. The Fund meets the definition of an investment entity and its purpose is to provide investment management services to its unitholders 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 Fund s investment objective. Effective at the close of business on December 31, 2015, the investment advisor was changed from FIAM to Fidelity and, as such, all investment management services previously provided by FIAM will be provided by Fidelity. 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 financial 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 and outstanding as of February 9, 2016, which is the date on which the interim financial statements were authorized for issue by Fidelity s board of directors. Any subsequent changes to IFRS that are given effect in the Fund s annual financial statements for the period ending June 30, 2016 could result in restatement of these interim financial statements, including the transition adjustments recognized on transition to IFRS. Functional and Presentation Currency These financial statements are presented in Canadian dollars, which is the Fund s functional currency. 3. Summary of Significant Accounting Policies Basis of Measurement These financial statements have been prepared on the historical cost basis except for investments and derivatives which are measured at fair value in the Statements of Financial Position. Use of Estimates and Judgments Under IFRS, management is required to make certain estimates and judgments at the date of the financial 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 security specific events. 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 December 31, 2015 and June 30, 2015, is included at the end of the Fund s Schedule of Investments. Classification and measurement of financial instrument 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 judgments 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 value basis. Presentation of financial instruments The Fund has made significant judgments when determining the classification of its redeemable units as financial liabilities in accordance with IAS 32 Financial Instruments Presentation (IAS 32). These judgments centre upon the determination that the Fund s redeemable units 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 unitholder) and, therefore, the ongoing redemption feature is not the units only contractual obligation. Investment and Derivative Valuation Investments, excluding derivatives, are designated at their fair value through profit or loss in accordance with IAS 39 and are carried at their fair value. Semi-Annual Reportport 14

15 Derivatives are classified as held-for-trading in accordance with IAS 39 and are carried at fair value. The Fund categorizes the inputs to valuation techniques used to fair value its investments and derivatives into a disclosure hierarchy consisting of three levels as shown below: 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 Fund s 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. Information on transfers between Level 1 and Level 2 for the period ended December 31, 2015 and June 30, 2015, is included at the end of the Fund s Schedule of Investments. The aggregate value of investments by input level, as at December 31, 2015 and June 30, 2015, as well as a roll forward of Level 3 securities, where applicable, is included at the end of the Fund s Schedule of Investments. Valuation techniques used to value the Fund s investments and derivatives by major category are as follows: Equity securities, including restricted securities, 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 bid ask 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, Exchange-traded funds (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 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 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 December 31, 2015 and June 30, Impairment of Financial Assets At each reporting date, the Fund assesses whether there is objective evidence that a financial asset carried at amortized cost is impaired. If such impairment exists, the Fund recognizes the difference between the amortized cost of the financial assets and the present value of the estimated future cash flows, discounted using the instrument s original effective interest rate as an impairment 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 to exist. Other Assets and Liabilities Other assets and liabilities may include amounts due to or from the custodian, affiliates or other counterparties for accrued income, investment transactions, unit 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 shortterm nature. Offsetting Financial Instruments Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. Classification of redeemable units issued by the Fund In accordance with IAS 32, the Fund s redeemable units 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 unitholder) and, therefore, the ongoing redemption feature is not the units only contractual obligation. Therefore, the Fund s redeemable units do not meet the criteria for classification as equity and have been classified as financial liabilities on the Statements of Financial Position. The Fund s obligation for net assets attributable to holders of redeemable units is recorded at the redemption amount. As at December 31, 2015 and June 30, 2015, the Fund s net asset value per unit may differ by less than $0.01 from its net assets attributable to holders of redeemable units per unit 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 s Regular way purchases and sales of financial assets are recognized at their trade date. The cost of investments is determined on an average cost basis, excluding commissions and other portfolio transaction costs. However, for presentation purposes, the Schedule of Investments includes broker commissions and other trading expenses. Income from investments is recognized on an accrual basis. Interest income is accrued as earned. Dividend income 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 Fund is informed of the ex-dividend date. Distributions received from investment trusts are recorded as income, capital gains or a return of capital based 15 Semi-Annual Report

16 Notes to Financial Statements (Unaudited) continued (Amounts in thousands of Canadian dollars except per unit amounts) on the best information available to the manager. Due to the nature of these investments, actual allocations could vary from this information. Distributions from investment trusts treated as a return of capital reduce the average cost of the underlying investment trust. Net realized gains and losses from the sale of investments and change in net unrealized appreciation (depreciation) on investments are calculated with reference to average cost of the related investment securities which exclude transaction costs and may include proceeds received from litigation. Transaction costs, such as brokerage commissions, incurred in the purchase and sale of securities by the Fund are recognized as Commissions and other portfolio costs in the Statements of Comprehensive Income. Foreign taxes are estimated based on the Fund s understanding of the tax rules and actual rates that exist in the foreign markets in which it invests. Investment income is recorded gross of foreign taxes withheld. 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 translated into Canadian dollars at the exchange rate on the date of the respective transaction. The effects of exchange rate fluctuations on investments 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. Securities Lending The Fund lends portfolio securities from time to time in order to earn additional income. The Fund has entered into a securities lending program with its custodian, State Street Trust Company of Canada. The aggregate market value of all securities loaned under securities lending transactions or sold in repurchase transactions cannot exceed 50% of the net asset value of the Fund. The Fund receives collateral (in the form of obligations of, or guaranteed by, the Government of Canada, or a province thereof, or by the United States government or its agencies) against the loaned securities and maintains collateral in an amount of at least 105% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined daily at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. There were no security loans outstanding as at December 31, As at June 30, 2015, the Fund s aggregate values of the securities loaned and the collateral received were as follows: Type of Collateral Value of Securities Loaned ($) Value of Collateral Received($) June 30, 2015 Canadian and U.S. Government Obligations Futures Contracts The Fund may invest in futures contracts to manage its exposure to the markets. Upon entering into a futures contract, the Fund is required to deposit with the clearing broker, no later than the following business day, an amount (initial margin) equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on the settlement date. Subsequent payments (variation margin) are made or received by the Fund depending on the daily fluctuations in the value of the futures contract and are accounted for as change in net unrealized appreciation (depreciation) on derivatives in the Statements of Comprehensive Income. Upon the expiration or closing of the futures contract, realized gains or losses are recognized, and are recorded in the Statements of Comprehensive Income as Net realized gain (loss) on derivatives. The Fund pledged $224 (June 30, 2015: $151) as cash collateral, which is included in Cash collateral in the Statements of Financial Position. Futures contracts involve, to varying degrees, risk of loss in excess of the futures variation margin reflected in the Statements of Financial Position. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption Futures Contracts. This amount reflects each contract s exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract s terms. Per Unit from Operations - The increase (decrease) in net assets attributable to holders of redeemable units resulting from operations per unit in the Statements of Comprehensive Income represent the increase (decrease) in net assets attributable to holders of redeemable units resulting from operations for the Fund, divided by the weighted average units outstanding for the Fund during the period as follows: Weighted Average Units Period ended December 31, 2015 Series O 5,132 Period ended December 31, 2014 Series O 3,303 Statements of Cash Flows When preparing the Statements of Cash Flows, the Fund nets the rollover activity of its short-term investments, 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 Fund s Statements of Cash Flows excludes non-cash transactions from its operating and financing activities. Semi-Annual Reportport 16

17 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 recognition of expected credit losses. It also includes changes in respect of an entity s own credit risk in measuring liabilities elected to be measured at fair value, so that gains caused by the deterioration of an entity s own credit risk on such liabilities are no longer recognised 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 entity s own credit risk changes can be early applied in isolation without otherwise changing the accounting for financial instruments. The Fund is in the process of assessing the impact of IFRS 9 and has not yet determined when it will adopt the new standard. 4. Expenses and Other Related Party Transactions Management and Advisory Fees Fidelity serves as the manager of the Fund and FIAM serves as investment advisor of the Fund. FIAM has entered into a sub-advisory agreement with Fidelity Institutional Asset Management Trust Company, an affiliate of Fidelity, to provide investment advice with respect to all or a portion of the investments of the Fund. The Fund pays Fidelity and FIAM 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, calculated daily and payable monthly. No management and advisory fees are charged with respect to the Series O units. Independent Review Committee Fees - The Independent Review Committee (IRC), as required under National Instrument , 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 duties. These costs are allocated among the individual funds proportionately by assets. No IRC fees are charged with respect to the Series O units. 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 HST liability or refund is calculated using the residency of unitholders 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 the Fund is based on the unitholders proportionate investments by province, using each province s HST rate or GST rate in the case of non-participating provinces. All amounts are included in the Statements of Comprehensive Income as Sales tax. Other Operating Expenses - Fidelity is responsible for the payment of all expenses relating to the operation of the Fund except for brokerage commissions, interest charges and taxes which are paid by the Fund. Commissions and Other Portfolio s - Commissions and other portfolio costs paid for security transactions during the period were $57 (December 31, 2014: $22), of which $- (December 31, 2014: $-) were paid to brokerage firms that are affiliates of Fidelity. The Fund may execute certain portfolio trades with brokers who reimbursed a portion of their commissions to the Fund. Commissions reimbursed under this arrangement were $8 (December 31, 2014: $7) 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 $19 (December 31, 2014: $6). Amounts paid for research provided to the Fund by executing brokers are estimates made by Fidelity. FIAM 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 commissions paid. 5. Taxation and Distributions The Fund qualifies as a unit trust under the provisions of the Income Tax Act (Canada). For tax purposes, the Fund has a December year end. In each tax year, the Fund declares and credits as due and payable sufficient net investment income and net realized capital gains to unitholders 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. The Fund is subject to foreign withholding taxes imposed by certain countries on investment income. 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 unitholders hands. At the end of each tax year, the character of the distributions is determined for tax purposes. Under the terms of the Declaration of Trust, the trustee may capitalize any distribution amount without any increase in the number of units outstanding. 17 Semi-Annual Report

18 Notes to Financial Statements (Unaudited) continued (Amounts in thousands of Canadian dollars except per unit amounts) Capital losses may be carried forward indefinitely to reduce future realized capital gains. As at the last taxation year-end, the Fund had no capital losses available to be carried forward. Non capital 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 non capital losses available to be carried forward. 6. Capital Risk Management Units issued and outstanding are considered to be the capital of the Fund. The capital of each series of the Fund is divided into an unlimited number of units of equal value, with no par value. All units in a series of the Fund rank equally with respect to distributions. A unitholder of the Fund is entitled to one vote for each one dollar in value of units owned. Fractional units are proportionately entitled to these rights. The Fund generally has no restrictions or specific capital requirements on the subscriptions and redemptions of units other than minimum subscription requirements; although, on rare occasions, Fidelity may temporarily suspend unitholders right to redeem units and postpone paying sale proceeds. The relevant movements attributable to unitholders are shown in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. 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 sufficient liquidity to meet redemptions. Such liquidity is managed by investing the majority of assets in investments that can be readily disposed and via the Fund s ability to borrow up to 5% of its net asset value. Unit Transactions - Unit transactions for each Series were as follows: Units Outstanding, Beginning of Period Issued Reinvested Redeemed Units Outstanding, End of Period Period ended December 31, 2015 Series O 4,563 1, (288) 6,213 Period ended December 31, 2014 Series O 3, (381) 3,541 Affiliated Ownership - As at December 31, 2015 and June 30, 2015, Fidelity and its affiliates held 100% of the Fund. 7. Financial Instruments Risk The Fund s activities expose it to a variety of financial instruments risks: credit risk, liquidity risk, other price risk, interest rate risk and currency risk. FIAM 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 investment mandate. The Fund may use derivative financial instruments to moderate certain risk exposures. Risk, as defined by FIAM, is the mismatch of certain risk factors, such as the market capitalization, beta, common factors such as size, priceearnings ratio, price-to-book ratio and industry exposures, between a portfolio and its benchmark. Such mismatches may result in divergence of returns relative to the benchmark. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1 indicates that the security s price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security s price will be more volatile than the market. For example, if a stock s beta is 1.2, it s theoretically 20% more volatile than the market. FIAM s objective is to provide consistent value-added return over the benchmark. Unsystematic risk is mitigated primarily through investments in a diverse portfolio of securities across many sectors, styles or regions of the market. FIAM s qualitative fundamental security selection is also well diversified across many analysts. Rather than relying on a single valuation process or quantitative model that implicitly assumes that past value-added returns of some sectors or styles will persist into the future, FIAM s analysts select securities based on their own unique valuation processes. The Fund aims to seek long-term capital appreciation by investing primarily in equities of companies anywhere in the world. The Fund s benchmark is the MSCI World Index. 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 Fund s own credit risk in the case of financial liabilities and a counterparty s credit risk in the case of financial assets are considered, where applicable, in determining the fair value of financial assets and financial liabilities, including derivative instruments. The Fund may be exposed to indirect credit risk through its investments in any Underlying Fund. In addition, as part of its cash management, the Semi-Annual Reportport 18

19 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 December 31, 2015 and June 30, Credit risk exposure for derivative instruments is based on the Fund s unrealized gain on the contractual obligations with the counterparty as at the reporting date. The Fund restricts its exposure to credit losses on derivative instruments by limiting its exposure to any one counterparty and by entering into transactions with counterparties who meet the minimum approved credit rating under securities regulations and other pre-set financial and non- financial criteria. Other than outlined above, there were no significant concentrations of credit risk to counterparties as at December 31, 2015 and June 30, Concentration Risk - FIAM analyzes credit concentration based on the counterparty, industry and/or geographical location of the financial assets that the Fund holds. The following tables summarize the investment concentration risks that are relevant for the Fund based on its investment objective. Sector Mix % of Fund s Net Assets as at 12/31/15 % of Fund s Net Assets as at 6/30/15 Financials Health Care Consumer Discretionary Information Technology Consumer Staples Industrials Energy Materials Telecommunication Services Utilities Cash And Short-Term Investments Net Other Assets (Liabilities) Derivative Exposure % of Fund s Net Assets as at 12/31/15 % of Fund s Net Assets as at 6/30/15 Futures Contracts Futures Contracts percentage is calculated by dividing the sum of the underlying face amount at value by total net assets. Geographic Mix % of Fund s Net Assets as at 12/31/15 % of Fund s Net Assets as at 6/30/15 United States of America Japan United Kingdom France Switzerland Ireland Canada Germany Australia Netherlands Sweden Bailiwick of Jersey Others (Individually Less Than 1%) Cash and Short-Term Investments Net Other Assets (Liabilities) Semi-Annual Report

20 Notes to Financial Statements (Unaudited) continued (Amounts in thousands of Canadian dollars except per unit amounts) FIAM regularly monitors the relative weights of individual securities, sectors, countries, and also monitors the market capitalization and trading liquidity of each holding. 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 reasonable price. The Fund is exposed to daily cash redemptions of redeemable units. Redeemable units are redeemed on demand at the unitholder s option based on the Fund s net asset value per unit (NAVPU) at the time of redemption. 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 Fund may, from time to time, invest in securities that are not traded in an active market and may be illiquid. Private and/or restricted securities held, if any, are identified in the Schedule of Investments as at their respective period ends. The liquidity position of the Fund is monitored on a daily basis. The Fund may invest in futures contracts, index options and other index-linked derivatives in order to maintain a fully invested position while at the same time accommodating liquidity requirements. When required, the Fund may also invest in Canadian treasury bills to be posted as collateral for the derivatives. As at December 31, 2015 and June 30, 2015, 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 securities present a risk of loss of capital. The Fund moderates this risk 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 future contracts which can be unlimited. The Fund s investments and derivatives are susceptible to other price risk arising from uncertainties about future prices of the instruments. If the benchmark had increased or decreased by 5% on December 31, 2015 and June 30, 2015, with all other variables held constant, the net assets attributable to holders of redeemable units of the Fund would have increased or decreased by approximately $5,356 (June 30, 2015: $4,100). This change is estimated using the Fund s 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. Interest Rate Risk - Interest rate risk arises on interest-bearing financial instruments held 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 fluctuate due to changes in the prevailing levels of market interest rates. Any excess cash and cash equivalents are invested in short-term investments at market interest rates. The majority of the Fund s financial assets and liabilities are 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 interest rates. Currency Risk - Currency risk arises from financial instruments that are denominated in a currency other than Canadian dollar, which is the Fund s functional currency. The Fund is exposed to the risk that the value of financial instruments denominated in other currencies 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. The Fund considers the foreign exchange exposure relating to nonmonetary assets and liabilities to be a component of other price risk, not foreign currency risk. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in exchange rates. 8. Offsetting of Financial Assets and Liabilities The Fund s derivatives noted below are subject to enforceable master netting arrangements in the form of central clearing arrangements. In the event of default or bankruptcy net settlement of contracts would be enforced. The following table summarizes financial instruments that are offset in the Statements of Financial Position, or are subject to enforceable master netting arrangements or other similar agreements but are not offset: As at December 31, 2015 Amounts offset Amounts not offset Gross Gross assets/liabilities offset Net Master Netting Arrangements Financial Collateral ($) ($) ($) ($) ($) Liabilities Payable for daily variation margin for derivative instruments: Futures (57) (57) 57 Net ($) Semi-Annual Reportport 20