Fidelity Global Bond Fund · PDF file1 Annual Management Report of Fund Performance as at...

Annual Management Report of Fund PerformanceMarch 31, 2017

Fidelity Global Bond Fund

Caution Regarding Forward-looking Statements

Certain portions of this report, including, but not limited to, “Results of Operations” and “Recent Developments”, may contain forward-looking statements about the Fund, including its strategy, risks, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” and similar forward-looking expressions or negative versions thereof.

In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inher-ently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date.

Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digres-sions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events.

It should be stressed that the above-mentioned list of important factors is not exhaustive. You are encouraged to consider these and other factors carefully before making any investment decisions and you are urged to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance.

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Annual Management Report of Fund Performance as at March 31, 2017Fidelity Global Bond FundThis annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling 1-800-263-4077, by writing to us at Fidelity Investments, 483 Bay St. Suite 300, Toronto ON M5G 2N7 or by visiting our website at www.fidelity.ca or SEDAR at www.sedar.com.

Securityholders may also contact us using one of these methods to request a copy of the investment fund’s proxy voting policies and proce-dures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund.

Management Discussion of Fund PerformanceInvestment Objective and Strategies

Investment Objective: Fidelity Global Bond Fund (Fund) aims to provide a steady flow of income and the potential for capital gains. It invests primarily in foreign fixed-income securities, including government and non-government bonds, and corporate bonds.

Strategies: The Fund’s portfolio managers use the Bloomberg Barclays Global Aggregate Bond Index as a guide to structuring the Fund and selecting investments. While the portfolio managers run the Fund to have overall interest rate risk similar to that of the Index, the Fund’s specific investments may or may not be included in the Index. The Fund’s assets are allocated among different market sectors, such as foreign corporate and government securities, as well as different maturities based on the portfolio managers’ view of the relative value of each sector or maturity.

When buying and selling fixed-income securities, the portfolio managers analyze each security’s features, its current price compared to its estimated long-term value, the credit quality of the issuer, and any short-term trading opportunities resulting from market inefficiencies. The non-government bond portion of the portfolio includes bonds issued by government agencies and supranational entities. The Fund may invest in fixed-income securities of any quality or term. The Fund may also invest a portion of its assets in securities of other funds, including ETFs managed by third parties and funds managed by Fidelity, in accordance with its investment objectives.

Currently, the portfolio managers use derivatives to hedge various portfolio risks. Derivatives may include credit default swaps, currency for-ward contracts, non-deliverable forwards, future contracts, interest rate swaps and options.

Risk

The risks associated with investing in the Fund remain as discussed in the prospectus. Any changes to the Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for medium- to long-term investors who seek the potential for income from their portfolios and are willing to accept a low to medium level of risk. The suitability of the Fund has not changed from what has been dis-closed in the prospectus.

Results of Operations

Fidelity Global Bond Fund, Series B, returned 1.2%, after fees and expenses, for the one-year period ended March 31, 2017. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. The global fixed-income market, as represented by the Bloomberg Barclays Global Aggregate Bond Index, returned 1.1% (in Canadian dollar terms) for the review period.

Market Overview:

Global fixed-income markets remained weak during the review period as President Trump’s proposed fiscal policies, which were generally viewed as positive for equity markets, did not support the bond markets. Bond markets weakened further after the U.S. Federal Reserve increased the target federal funds rate twice during the review period citing improvement in the labor market – once in December 2016 from 0.50% to 0.75%, and again in March 2017 from 0.75% to 1.0%. Stable personal spending and business investment also supported growth in the U.S. economy. Central banks in Europe, Japan and around the world maintained their monetary stimulus programs, which provided some sup-port to the bond markets. China’s policymakers also became increasingly aggressive in their efforts to support the economy through fiscal policy. The demand for U.S. fixed-income assets strengthened following decreases in sovereign yields in Europe and Japan. Demand for emerging markets bonds also increased due to attractive valuations, despite being relatively riskier than investment-grade bonds.

Factors affecting performance:

The Fund’s larger-than-benchmark allocation to investment-grade corporate bonds, especially to financial issues, contributed to relative performance as investment grade bonds outperformed the overall global fixed-income market. The Fund’s exposure to high-yield bonds, which were not part of the benchmark, also contributed. Conversely, security selection within corporate bonds, particularly exposure to the industrial sector, detracted from relative performance.

Portfolio Changes:

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Management Discussion of Fund Performance – continued

Portfolio managers Curt Hollingsworth and Jeff Moore believe that, given the prevailing market conditions, both high-yield and investment-grade corporate bonds may offer the best potential for active returns given the attractive yields and stable issuer fundamentals. They therefore increased exposure to investment grade corporate bonds, especially to those of financial issuers and to high-yield bonds, while the allocation to government bonds was reduced during the review period.

At the end of the period, the Fund had its largest allocation to the U.S.

Derivative Disclosure:

During the period under review, the Fund invested in derivatives, including interest rate futures, currency forwards and credit default swaps. These derivatives were used primarily for hedging various forms of risk, including interest rate risk, foreign exchange rate risk and credit default risk. Security selection continued to drive the Fund’s performance, and these derivatives had no material impact on performance.

More specifically, the portfolio managers used interest rate futures to manage the interest rate risk both of specific holdings and of the overall portfolio. In some instances, interest rate futures were used to execute investment strategies that allowed the Fund to potentially benefit from attractive yields in certain securities, while mitigating the possible interest rate risk that would have otherwise accompanied these investments. In general, the futures contracts engaged for this purpose tended to be more liquid and less expensive than purchasing cash bonds with similar attributes.

Currency forwards were used with the aim of mitigating the impact of foreign exchange rate changes. The use of currency forward contracts for this purpose allowed the portfolio managers to actively allocate portions of the Fund’s assets to more attractive markets and securities, while mitigating the exchange rate risk that such active capital allocation would otherwise entail.

Credit default swaps were used to gain exposure to certain companies. These credit default swaps allow the Fund to realize attractive return potential of certain securities at minimal cost.

Recent Developments

Effective April 12, 2017, Andrew Lewis and effective June 1, 2017, Michael Foggin assumed portfolio co-management responsibilities for the Fund. The Fund’s investment objective and strategy have not been affected by this change.

Looking ahead, portfolio managers Michael Foggin, Andrew Lewis, Curt Hollingsworth and Jeff Moore are focused on maintaining a well diver-sified and liquid bond portfolio that can adapt to changing market environments. They continue to focus on bottom-up, fundamental security selection, capitalizing on idiosyncratic investment opportunities. At the moment, they believe that global central bank actions will continue to dominate the financial landscape. In addition, they continue to believe that corporate bonds offer the best potential for active returns.

Fidelity Balanced Income Private Pool became a holder of more than 10% of the outstanding securities of the Fund in the period ending March 31, 2017.

Independent Review Committee

Effective February 28, 2017, Helen M. Meyer retired from the Independent Review Committee and was replaced by James E. Cook as Chair. Also effective on that date, Frances Horodelski of Toronto, Ontario became a member of the Independent Review Committee.

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Related Party Transactions

Manager and Portfolio Adviser

The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader group of companies collectively known as Fidelity Investments.

Fidelity provides or arranges for the provision of all general management and administrative services required by the Fund in its day–to–day operations, bookkeeping, record–keeping and other administrative services for the Fund.

Fidelity is the portfolio adviser to the Fund and it provides investment advisory services to the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity Investments Money Management, Inc. and Fidelity Management & Research (UK) Inc., to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements.

The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $765,000 for the period ended March 31, 2017.

Administration Fee

Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commis-sions and interest charges). The Fund pays an annual rate, which is calculated on a tiered basis, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $85,000 for the period ended March 31, 2017.

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Financial Highlights

The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the period end of the years shown. This information is derived from the Fund’s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund’s annual or semi-annual financial statements.

Fidelity Global Bond Fund Series A

Periods ended March 31, 2017 2016 2015 2014 2013The Series’ Net Assets per Security A Net assets, beginning of period B $ 11.69 $ 11.45 $ 10.58 $ 9.81 $ 9.80Increase (decrease) from operations: Total revenue .31 .32 .27 .28 .23Total expenses (excluding distributions) (.22) (.22) (.21) (.20) (.19)Realized gains (losses) .08 .38 .47 .27 (.13)Unrealized gains (losses) (.15) (.02) .48 .35 .12Total increase (decrease) from operationsB .02 .45 1.01 .71 .03Distributions: From net investment income (excluding dividends) (.26) (.16) (.10) (.03) (.05)From dividends – – – – –From capital gains – (.10) (.02) – –Return of capital – – – – –Total distributionsB,C (.26) (.27) (.12) (.03) (.05)Net assets, end of periodB $ 11.54 $ 11.69 $ 11.45 $ 10.58 $ 9.81Ratios and Supplemental Data Net asset value (000s) D $ 20,703 $ 20,678 $ 6,126 $ 3,854 $ 4,865Securities outstandingD 1,792,355 1,771,839 535,723 364,858 496,125Management expense ratio E,F 1.88% 1.89% 1.91% 1.93% 1.89%Management expense ratio before waivers or absorptions E,F 1.94% 1.93% 1.93% 1.93% 1.89%Trading expense ratioG —% —% —% —% —%Portfolio turnover rateH 123.34% 105.24% 230.96% 184.29% 190.26%Net asset value per security, end of period $ 11.5378 $ 11.6931 $ 11.4505 $ 10.5814 $ 9.8070

Fidelity Global Bond Fund Series B

Periods ended March 31, 2017 2016 2015 2014 2013The Series’ Net Assets per Security A Net assets, beginning of period B $ 11.74 $ 11.49 $ 10.61 $ 9.83 $ 9.82Increase (decrease) from operations: Total revenue .31 .32 .27 .28 .23Total expenses (excluding distributions) (.18) (.19) (.17) (.16) (.15)Realized gains (losses) .09 .36 .46 .30 (.17)Unrealized gains (losses) (.11) (.23) .45 .38 .15Total increase (decrease) from operationsB .11 .26 1.00 .80 .06Distributions: From net investment income (excluding dividends) (.29) (.19) (.13) (.05) (.08)From dividends – – – – –From capital gains – (.11) (.02) – –Return of capital – – – – –Total distributionsB,C (.29) (.30) (.15) (.05) (.08)Net assets, end of periodB $ 11.59 $ 11.74 $ 11.49 $ 10.61 $ 9.83Ratios and Supplemental Data Net asset value (000s) D $ 18,117 $ 19,712 $ 9,132 $ 8,904 $ 9,531Securities outstandingD 1,564,851 1,680,381 798,652 839,044 969,526Management expense ratio E,I 1.54% 1.56% 1.59% 1.60% 1.56%Management expense ratio before waivers or absorptions E,I 1.56% 1.58% 1.59% 1.60% 1.56%Trading expense ratioG —% —% —% —% —%Portfolio turnover rateH 123.34% 105.24% 230.96% 184.29% 190.26%Net asset value per security, end of period $ 11.5874 $ 11.7364 $ 11.4887 $ 10.6108 $ 9.8303

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Fidelity Global Bond Fund Series F

Periods ended March 31, 2017 2016 2015 2014 2013The Series’ Net Assets per Security A Net assets, beginning of period B $ 11.75 $ 11.50 $ 10.61 $ 9.82 $ 9.79Increase (decrease) from operations: Total revenue .31 .32 .27 .28 .23Total expenses (excluding distributions) (.11) (.12) (.11) (.10) (.10)Realized gains (losses) .11 .38 .47 .34 (.16)Unrealized gains (losses) (.14) (.41) .50 .34 .20Total increase (decrease) from operationsB .17 .17 1.13 .85 .18Distributions: From net investment income (excluding dividends) (.35) (.26) (.18) (.10) (.13)From dividends – – – – –From capital gains – (.11) (.03) – –Return of capital – – – – –Total distributionsB,C (.35) (.37) (.20) (.10) (.13)Net assets, end of periodB $ 11.61 $ 11.75 $ 11.50 $ 10.61 $ 9.82Ratios and Supplemental Data Net asset value (000s) D $ 13,409 $ 17,112 $ 5,695 $ 3,399 $ 2,598Securities outstandingD 1,154,156 1,451,394 496,337 320,702 264,652Management expense ratio E,F .96% .96% .99% 1.00% .96%Management expense ratio before waivers or absorptions E,F .97% .98% 1.01% 1.00% .96%Trading expense ratioG —% —% —% —% —%Portfolio turnover rateH 123.34% 105.24% 230.96% 184.29% 190.26%Net asset value per security, end of period $ 11.6138 $ 11.7516 $ 11.4984 $ 10.6080 $ 9.8177

Fidelity Global Bond Fund Series O

Periods ended March 31, 2017 2016 2015 2014 2013The Series’ Net Assets per Security A Net assets, beginning of period B $ 11.81 $ 11.55 $ 10.65 $ 9.84 $ 9.81Increase (decrease) from operations: Total revenue .31 .32 .27 .28 .23Total expenses (excluding distributions) – – – – –Realized gains (losses) .08 .37 .46 .42 (.16)Unrealized gains (losses) (.09) .10 .49 .47 .17Total increase (decrease) from operationsB .30 .78 1.22 1.17 .24Distributions: From net investment income (excluding dividends) (.46) (.36) (.28) (.19) (.21)From dividends – – – – –From capital gains – (.12) (.03) – –Return of capital – – – – –Total distributionsB,C (.46) (.48) (.31) (.19) (.21)Net assets, end of periodB $ 11.68 $ 11.81 $ 11.55 $ 10.65 $ 9.84Ratios and Supplemental Data Net asset value (000s) D $ 3,736,275 $ 3,087,179 $ 1,420,537 $ 1,032,201 $ 497,361Securities outstandingD 320,888,309 263,977,895 123,486,428 97,068,389 50,520,826Management expense ratio –% –% –% —% —%Management expense ratio before waivers or absorptions —% —% —% —% —%Trading expense ratioG —% —% —% —% —%Portfolio turnover rateH 123.34% 105.24% 230.96% 184.29% 190.26%Net asset value per security, end of period $ 11.6754 $ 11.8095 $ 11.5527 $ 10.6538 $ 9.8447

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Financial Highlights – continued

Fidelity Global Bond Fund Series E1

Periods ended March 31, 2017 2016J

The Series’ Net Assets per Security A Net assets, beginning of period B $ 9.61 $ 10.00Increase (decrease) from operations: Total revenue .25 .03Total expenses (excluding distributions) (.14) (.02)Realized gains (losses) – .07Unrealized gains (losses) (.20) (.43)Total increase (decrease) from operationsB (.09) (.35)Distributions: From net investment income (excluding dividends) (.25) (.05)From dividends – –From capital gains – –Return of capital – –Total distributionsB,C (.25) (.05)Net assets, end of periodB $ 9.49 $ 9.61Ratios and Supplemental Data Net asset value (000s) D $ 3,115 $ 2,693Securities outstandingD 318,688 280,492Management expense ratio E,K 1.43% 1.44%Management expense ratio before waivers or absorptions E,K 1.46% 1.47%Trading expense ratioG —% —%Portfolio turnover rateH 123.34% 105.24%Net asset value per security, end of period $ 9.4922 $ 9.6150



The Series’ Net Assets per Security A Net assets, beginning of period B $ 9.61 $ 10.00Increase (decrease) from operations: Total revenue .26 .03Total expenses (excluding distributions) (.13) (.02)Realized gains (losses) .17 .08Unrealized gains (losses) .66 (.42)Total increase (decrease) from operationsB .96 (.34)Distributions: From net investment income (excluding dividends) (.25) (.05)From dividends – –From capital gains – –Return of capital – –Total distributionsB,C (.25) (.05)Net assets, end of periodB $ 9.49 $ 9.61Ratios and Supplemental Data Net asset value (000s) D $ 416 $ 1,010Securities outstandingD 43,844 105,186Management expense ratio E,K 1.37% 1.39%Management expense ratio before waivers or absorptions E,K 1.39% 1.41%Trading expense ratioG —% —%Portfolio turnover rateH 123.34% 105.24%Net asset value per security, end of period $ 9.4933 $ 9.6143

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The Series’ Net Assets per Security A Net assets, beginning of period B $ 9.61 $ 10.00Increase (decrease) from operations: Total revenue .25 .03Total expenses (excluding distributions) (.12) (.02)Realized gains (losses) .07 .07Unrealized gains (losses) (.06) (.41)Total increase (decrease) from operationsB .14 (.33)Distributions: From net investment income (excluding dividends) (.26) (.05)From dividends – –From capital gains – –Return of capital – –Total distributionsB,C (.26) (.05)Net assets, end of periodB $ 9.50 $ 9.61Ratios and Supplemental Data Net asset value (000s) D $ 1 $ 1Securities outstandingD 103 101Management expense ratio E,K 1.26% 1.26%Management expense ratio before waivers or absorptions E,K 1.26% 1.26%Trading expense ratioG —% —%Portfolio turnover rateH 123.34% 105.24%Net asset value per security, end of period $ 9.4989 $ 9.6154

Fidelity Global Bond Fund Series P1

Periods ended March 31, 2017 2016L

The Series’ Net Assets per Security A Net assets, beginning of period B $ 10.03 $ 10.00Increase (decrease) from operations: Total revenue .26 .08Total expenses (excluding distributions) (.08) (.03)Realized gains (losses) (.07) .13Unrealized gains (losses) (.19) (.51)Total increase (decrease) from operationsB (.08) (.33)Distributions: From net investment income (excluding dividends) (.31) (.10)From dividends – –From capital gains – (.10)Return of capital – –Total distributionsB,C (.31) (.20)Net assets, end of periodB $ 9.91 $ 10.03Ratios and Supplemental Data Net asset value (000s) D $ 2,709 $ 1,374Securities outstandingD 273,441 137,238Management expense ratio E,M .83% .86%Management expense ratio before waivers or absorptions E,M .84% .86%Trading expense ratioG —% —%Portfolio turnover rateH 123.34% 105.24%Net asset value per security, end of period $ 9.9087 $ 10.0263

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Financial Highlights – continued

Fidelity Global Bond Fund Series P2

Periods ended March 31, 2017 2016L

The Series’ Net Assets per Security A Net assets, beginning of period B $ 10.03 $ 10.00Increase (decrease) from operations: Total revenue .26 .08Total expenses (excluding distributions) (.08) (.03)Realized gains (losses) .03 .13Unrealized gains (losses) (.27) (.30)Total increase (decrease) from operationsB (.06) (.12)Distributions: From net investment income (excluding dividends) (.32) (.11)From dividends – –From capital gains – (.10)Return of capital – –Total distributionsB,C (.32) (.20)Net assets, end of periodB $ 9.91 $ 10.03Ratios and Supplemental Data Net asset value (000s) D $ 848 $ 507Securities outstandingD 85,584 50,646Management expense ratio E,M .75% .75%Management expense ratio before waivers or absorptions E,M .76% .76%Trading expense ratioG —% —%Portfolio turnover rateH 123.34% 105.24%Net asset value per security, end of period $ 9.9118 $ 10.0266

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Financial Highlights FootnotesA This information is derived from the Fund’s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 2013 follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 2013

follow Canadian Generally Accepted Accounting Principles (Canadian GAAP). The net assets attributable to securityholders per security presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. An explanation of these differences can be found in the notes to financial statements. For reporting periods ending after January 1, 2017 per security comparative figures (except for net asset value per security, end of period) have been conformed to the current rounding presentation of two decimal places. As a result, prior period figures in the tables above may not foot due to this rounding change.

B Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of securities outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per security.

C Distributions were paid in cash or reinvested in additional securities of the Fund, or both, and excludes any applicable distributions of management fee reduction to securityholders. Distributions are presented based on management’s best estimate of the tax character.

D This information is provided as at period end of the year shown.E Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset values during the period,

including the Fund’s pro-rata share of estimated expenses incurred in any underlying investment fund, if applicable.F Effective November 1, 2014, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its

sole discretion. It is not known when such waivers will be terminated.G The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period, including the Fund’s pro-rata share of estimated trading costs

incurred in any underlying investment fund, if applicable.H The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio adviser manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course

of the year. The higher the Fund’s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high portfolio turnover rate and the performance of the Fund. The portfolio turnover rate is calculated based on the lesser of purchases or sales of securities divided by the weighted average market value of the portfolio securities, excluding short-term securities. For periods greater than six months, but less than a full fiscal year, the portfolio turnover rate is annualized.

I Effective October 1, 2015, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated.

J For the period February 5, 2016 (commencement of sale of securities) to March 31, 2016.K Effective February 9, 2016, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole

discretion. It is not known when such waivers will be terminated.L For the period December 4, 2015 (commencement of sale of securities) to March 31, 2016.M Effective December 8, 2015, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its

sole discretion. It is not known when such waivers will be terminated.

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Management and Advisory Fees

Fidelity serves as manager and investment advisor of the Fund. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for the general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed 100% of the fees earned by Fidelity during the period. For new Funds or Series the amounts presented may not be indicative of longer term operating periods.

Management Fees

Dealer Compensation

Investment management, administration

and other

Series A 1.500% 64.71% 35.29%Series B 1.250% 40.00% 60.00%Series F 0.750% — 100.00%Series E1 1.175% 42.55% 57.45%Series E2 1.125% 44.44% 55.56%Series E3 1.100% 45.45% 54.55%Series P1 0.675% — 100.00%Series P2 0.625% — 100.00%

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Past PerformanceThe performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securi-ties of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future.

Year-by-Year Returns

The following bar chart shows the Fund’s annual performance for each of the years shown, and illustrates how the Fund’s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year.

Series A

10

5

0

-5

-10

2017

0.9

2016

4.4

2015

9.5

2014

8.2

2013

0.6

2012

5.7

2011

0.7

2010

-6.3

2009

7.3

2008

1.6

Fiscal Years

(%)

Commencement of Operations is April 13, 2007

Series B

10

5

0

-5

-10

2017

1.2

2016

4.8

2015

9.8

2014

8.5

2013

1.0

2012

6.1

2011

1.1

2010

-6.0

2009

7.7

2008

1.9

Fiscal Years

(%)


Series F

15

10

5

0

-5

-10

2017

1.8

2016

5.4

2015

10.4

2014

9.2

2013

1.5

2012

6.6

2011

1.6

2010

-5.5

2009

8.2

2008

2.4

Fiscal Years

(%)


Series O

15

10

5

0

-5

2017

2.8

2016

6.5

2015

11.5

2014

10.3

2013

2.5

2012

7.7

2011

2.6

2010

-4.5

2009

9.4

2008

3.4

Fiscal Years

(%)


Series E1

5

0

-5

2017

1.3

2016

-3.4

Fiscal Years

(%)

Commencement of Operations is February 5, 2016

Series E2

5

0

-5

2017

1.4

2016

-3.4

Fiscal Years

(%)


12


Past Performance – continued

Series E3

5

0

-5

2017

1.5

2016

-3.3

Fiscal Years

(%)


Series P1

5

0

-5

-10

2017

1.9

2016

2.2

Fiscal Years

(%)

Commencement of Operations is December 4, 2015

Series P2

5

0

-5

-10

2017

2.0

2016

2.3

Fiscal Years

(%)

Commencement of Operations is December 4, 2015

Annual Compound ReturnsThis table shows the Fund’s historical annual compound total returns for the periods indicated, compared with the Fund’s benchmark, the Bloomberg Barclays Global Aggregate Bond Index.

Average Annual Total ReturnsPast 1 year

Past 3 years

Past 5 years

Since Inception

Fidelity Global Bond Fund – Series A 0.9% 4.9% 4.6% 3.2%Fidelity Global Bond Fund – Series B 1.2% 5.2% 5.0% 3.5%Fidelity Global Bond Fund – Series F 1.8% 5.8% 5.6% 4.1%Fidelity Global Bond Fund – Series O 2.8% 6.9% 6.6% 5.1%Fidelity Global Bond Fund – Series E1 1.3% n/a n/a (1.8)%Fidelity Global Bond Fund – Series E2 1.4% n/a n/a (1.8)%Fidelity Global Bond Fund – Series E3 1.5% n/a n/a (1.6)%Fidelity Global Bond Fund – Series P1 1.9% n/a n/a 3.1%Fidelity Global Bond Fund – Series P2 2.0% n/a n/a 3.3%Bloomberg Barclays Global Aggregate Bond Index 1.1% 6.1% 6.3% 5.0%

The period used for the since inception Bloomberg Barclays Global Aggregate Bond Index returns are based on Series A which has been in exist-ence the longest compared to all Series with less than 10 years of operations.

A discussion of the performance of the Fund can be found in the Results of Operation section of this report.

The Bloomberg Barclays Global Aggregate Bond Index covers the most liquid portion of the global investment grade fixed-rate bond market, including government, credit and collateralized securities. On November 3, 2008, the Lehman Brothers Global Aggregate Bond Index was renamed the Barclays Global Aggregate Bond Index. On August 24, 2016, Bloomberg purchased the Barclays family of benchmark indices. As part of this transaction, all Barclays benchmark indices have been co-branded as the Bloomberg Barclays Indices for an initial period of 5 years.

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Each Series will have different returns due to differences in management fees and expenses.

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Summary of Investment Portfolio as at March 31, 2017Derivative Exposure as of March 31, 2017

% of Fund’s

Net Assets

Futures Contracts 5.8Swaps 2.4Forward Foreign Currency Contracts 0.1

Futures Contracts percentage is calculated by dividing the sum of the underlying face amount at value by total net assets. Forward Foreign Currency Contracts percentage is calculated by dividing the net unrealized gain/loss of all contracts held by total net assets. Swaps percentage is calculated by dividing the sum of the notional and unrealized gain/loss by total net assets.

Geographic Mix as of March 31, 2017

% of Fund’s Net Assets

United States of America 33.0United Kingdom 12.0Japan 8.6Germany 7.5Netherlands 4.3Ireland 3.6Mexico 3.1Italy 3.1France 2.7Luxembourg 1.9Canada 1.8Denmark 1.7Korea (South) 1.2Cyprus 1.2Australia 1.1Others (Individually Less Than 1%) 6.4Cash and Cash Equivalents 5.8Net Other Assets (Liabilities) 1.0

Maturity Diversification as of March 31, 2017

Years% of Fund’s Net Assets

0 – 1 4.81 – 3 4.93 – 5 11.7Over 5 65.0

Quality Diversification as of March 31, 2017


AAA 27.7AA 2.9A 16.4BBB 23.0BB and Below 19.7Not Rated 3.4Equities 0.1Short-Term Investments and Net Other Assets 6.8

We have used ratings from Moody’s Investors Service, Inc. Where Moody’s® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.

Top 25 Issuers


1. U.S. Treasury Obligations 19.12. Japan Government 8.63. Cash and Cash Equivalents 5.84. Fidelity American High Yield Fund –

Series O 3.65. alstria office REIT-AG 2.66. Petroleos Mexicanos 2.47. United Kingdom, Great Britain and

Northern Ireland 2.38. German Federal Republic 1.99. Credit Agricole SA 1.810. Deutsche Bank AG 1.711. Barclays Bank PLC 1.712. Royal Bank of Scotland Group PLC 1.713. Canadian Government 1.614. Irish Republic 1.615. Anheuser-Busch InBev Finance, Inc. 1.216. ABN AMRO Bank NV 1.217. Morgan Stanley 1.218. Aroundtown Property Holdings PLC 1.219. Korean Republic 1.120. Allied Irish Banks PLC 1.121. UniCredit Luxembourg 1.122. Australian Commonwealth 1.123. Merrill Lynch & Co., Inc. 1.024. Volkswagen Leasing GmbH 0.9

25. Spanish Kingdom 0.968.4

Total Fund Net Assets $3,805,675,000

Where applicable, the information in the above tables includes the Fund’s pro-rata share of the investment in any Fidelity Underlying Fund.

Where applicable, percentages in the above tables are adjusted for the effect of TBA Sale Commitments.

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The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling 1-800-263-4077, by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite 300, Toronto ON M5G 2N7 or by visiting our web site at www.fidelity.ca or SEDAR at www.sedar.com.

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

1.856888.109 FICL-GB-MRFPA-0617

Fidelity Investments Canada ULC483 Bay Street, Suite 300Toronto, Ontario M5G 2N7

Manager, Transfer Agent and RegistrarFidelity Investments Canada ULC483 Bay Street, Suite 300Toronto, Ontario M5G 2N7

CustodianState Street Trust Company of CanadaToronto, Ontario

Portfolio AdviserFidelity Investments Canada ULCToronto, Ontario

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

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®Fidelity Investments is a registered trademark of FMR LLC.

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