FIDELITY GLOBAL INVESTMENT FUND

FIDELITYGLOBALINVESTMENTFUNDExplanatory Memorandum

IMPORTANT: AVAILABILITY OF SUB-FUNDS

Investment in the Global Equity Fund, Growth Fund, Balanced Fund, Stable Growth Fund, Capital Stable Fund, World Bond Fund, Fidelity SaveEasy 2020 Fund, Fidelity SaveEasy 2025 Fund, Fidelity SaveEasy 2030 Fund, Fidelity SaveEasy 2035 Fund and Fidelity SaveEasy 2040 Fund (together, the “Restricted Offer Funds”) of the Fidelity Global Investment Fund are not available to the general investing public. Investments in the Restricted Offer Funds are available only to Professional Investors, ORSO and MPF retirement schemes, their related Approved Pooled Investment Funds, or those who have recently been or still are members of an ORSO or MPF retirement scheme.

If you are not a Professional Investor, or a current or former member of an ORSO or MPF retirement scheme wishing to invest your accrued benefits and want to invest in Fidelity managed funds, please contact Fidelity for further details about our other ranges of investment funds, which are available to the general investing public.

Fidelity Global Investment FundPlease note:

• Fidelity SaveEasy Funds are not savings deposits and involve investment risks and this product may not be suitable for everyone. Investors should also consider factors other than age and review their own investment objectives.

• The Fund is an umbrella fund with a number of Sub-funds with different investment objectives and risk profiles. These Sub-funds may invest in equities, debt, money market securities and/or other instruments, including derivatives.

• Some Sub-funds invest in emerging market securities which may be more volatile than securities in more developed markets. There may be a greater risk of a suspension of redemptions in such funds due to political and economic factors.

• Some Sub-funds may invest in one single or a limited number of geographical market(s). The investment focus of such Sub-funds gives rise to concentrated market risk when compared to a more diversified fund.

• Further details of the potential risks involved are contained in the Risk Factors section of the Explanatory Memorandum. In the worst case scenario, the value of the Sub-fund may be worth substantially less than the original amount you have invested and in an extreme case, you may suffer substantial loss.

• The investment decision is yours. You should not invest in the product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.

IMPORTANT: IF YOU ARe IN ANY DOUBT ABOUT The MeANING OR eFFecT OF The cONTeNTS OF ThIS eXPLANATORY MeMORANDUM, YOU ShOULD Seek INDePeNDeNT PROFeSSIONAL FINANcIAL ADVIce.

FIL Investment Management (hong kong) Limited accepts responsibility for the information contained in this Explanatory Memorandum as being accurate as at the date of this Explanatory Memorandum. Neither the delivery of this Explanatory Memorandum nor the offer or issue of Units shall under any circumstances constitute a representation that the information contained in this Explanatory Memorandum is correct as of any time subsequent to the date of this Explanatory Memorandum. To reflect material changes, this Explanatory Memorandum may from time to time be updated. Intending subscribers should enquire of the Investment Manager as to the issue of any later Explanatory Memorandum.

Distribution of this Explanatory Memorandum must be accompanied by a copy of the latest available annual report and accounts of the Fund and any subsequent interim report. Units are offered on the basis only of the information contained in this Explanatory Memorandum and (where applicable) the above mentioned annual reports and accounts and interim reports. Any information given or representations made by any dealer, salesman or other person and (in any case) not contained in this Explanatory Memorandum should be regarded as unauthorised and accordingly must not be relied upon.

The Fund has been authorised by the SFC and approved by the MPF Authority. In granting such authorisation and approval, neither the SFC nor the MPF Authority takes any responsibility for the financial soundness of the Fund or for the accuracy of any of the statements made or opinions expressed in this Explanatory Memorandum. Such authorisation and approval does not imply that investment in the Fund is recommended by the SFC or the MPF Authority.

No action has been taken to permit an offering of Units or the distribution of this Explanatory Memorandum in any jurisdiction other than Hong Kong where action would be required for such purposes. Accordingly, this Explanatory Memorandum may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is not authorised.

In particular: (a) Units in the Fund have not been registered under the United States Securities Act of 1933 (as amended) and, except in a transaction which does not violate such Act, may not be directly or indirectly offered or sold in the United States of America, or any of its territories or possessions or areas subject to its jurisdiction, or for the benefit of a US Person; and (b) the Fund has not been and will not be registered under the United States Investment Company Act of 1940 as amended.

Potential applicants for Units should inform themselves as to (a) the possible tax consequences, (b) the legal requirements and (c) any foreign exchange restrictions or exchange control requirements which they might encounter under the laws of the countries of their incorporation, citizenship, residence or domicile and which might be relevant to the subscription, holding, switching or disposal of Units.

September 2009

TABLe OF cONTeNTSPAGe NO.

GLOSSARY................................................................................................................... 1

A. GeNeRAL DeTAILS OF The FUND .................................................................... 3

B. MANAGeMeNT AND ADMINISTRATION OF The FUND ................................... 4

Investment Manager .............................................................................................. 4 Investment Sub-Managers ..................................................................................... 5 Trustee, Registrar and Custodian .......................................................................... 6 Legal Adviser ......................................................................................................... 6 Auditor ................................................................................................................... 6

c. INVeSTMeNT OBjecTIVeS AND POLIcIeS ..................................................... 7

Statements of Investment Policy ........................................................................... 7 Asset Allocation ................................................................................................... 15 Investment and Borrowing Restrictions ............................................................... 15 Risk Factors ......................................................................................................... 18 Risk and Return Profile ........................................................................................ 20

D. ISSUe, ReALISATION AND SWITchING OF UNITS ........................................ 22

Initial Application and Subsequent Dealing Instructions ...................................... 22 Issue of Units ....................................................................................................... 22 Issue Price ........................................................................................................... 22 Procedures for Application and Payment ............................................................. 22 Switching between Sub-Funds ............................................................................ 23 Realisation of Units .............................................................................................. 24 Limitation and Suspension ................................................................................... 24 Calculation of Net Asset Value ............................................................................. 25 Calculation of Issue and Realisation Prices ......................................................... 26 Publication of Issue and Realisation Prices ......................................................... 27

e. FeeS, chARGeS AND eXPeNSeS .................................................................. 28

Fees and Charges Payable Directly by Investors ................................................ 30 Fees, Charges and Expenses Payable by the Sub-Funds .................................. 31 Soft Dollars and Cash Rebates ........................................................................... 35

F. GeNeRAL INFORMATION ................................................................................. 36

MPF Hotline and other assistance ....................................................................... 36 Taxation ............................................................................................................... 36 Financial Year-end ............................................................................................... 36 Trust Deed ........................................................................................................... 36 Termination, Merger or Division of the Fund or any Sub-Fund ............................ 37 Income Distribution .............................................................................................. 37 Reports and Accounts .......................................................................................... 37 Auditor’s Maximum Liability to the Fund .............................................................. 38 Compulsory Realisation or Transfer of Units ....................................................... 38 Anti-Money Laundering Regulations .................................................................... 38 Definition of "US Person" ..................................................................................... 39

APPeNDIX I - FUND STRUcTURe chART ............................................................... IAPPeNDIX II - INDIcATIVe PORTFOLIO DISTRIBUTIONS ....................................II

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GLOSSARY

“APIF” means a collective investment scheme authorised by the SFC and approved by the MPF Authority as an approved pooled investment fund.

“Business Day” means a day, other than a Saturday, on which banks are open for normal banking business in Hong Kong.

“connected Person”, in relation to the Investment Manager, means:

(a) any person beneficially owning, directly or indirectly, 20 per cent. or more of the ordinary share capital of the Investment Manager or able to exercise, directly or indirectly, 20 per cent. or more of the total voting rights attributable to the voting share capital of the Investment Manager;

(b) any company controlled by any such person as is described in paragraph (a) above;

(c) any company which is a subsidiary or a holding company of the Investment Manager or a subsidiary of any such holding company; and

(d) any director or other officer of the Investment Manager or of any company which is a Connected Person of the Investment Manager pursuant to paragraph (a), (b) or (c) above.

“Dealing Day” means each Business Day, or such other day as the Investment Manager may determine with the agreement of the Trustee, provided that if the markets in which a majority of the assets of a Sub-Fund are traded are closed on any Business Day, the Investment Manager may determine that such day is not a Dealing Day for Units of the relevant Sub-Fund.

“Fidelity International” means FIL Limited, a Bermuda-registered company providing investment management services to investors primarily outside the United States of America, with its headquarters in Bermuda.

“Fidelity Organisation” means the family of companies beneficially owned by Fidelity International, together with the family of companies beneficially owned by FMR LLC., an affiliate of Fidelity International which has its headquarters in Boston.

“Fund” means Fidelity Global Investment Fund.

“General Regulation” means the Mandatory Provident Fund Schemes (General) Regulation as amended from time to time.

“hkD” means Hong Kong dollars, the lawful currency of Hong Kong.

“hong kong” means the Hong Kong Special Administrative Region of the People’s Republic of China.

“Investment Manager” means FIL Investment Management (Hong Kong) Limited, with its current address at 17/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong.

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“Investment Sub-Manager” in relation to a Sub-Fund, means the investment sub-manager appointed by the Investment Manager from time to time referred to in the section headed “Management and Administration of the Fund”.

“MPF Authority” means the Mandatory Provident Fund Schemes Authority established under the MPF Ordinance.

“MPF Ordinance” means the Mandatory Provident Fund Schemes Ordinance (Cap. 485 of the laws of Hong Kong) as amended from time to time.

“Professional Investor” has the meaning given to it in the Securities and Futures Ordinance, including the Securities and Futures (Professional Investor) Rules made thereunder.

“Securities and Futures Ordinance” means the Securities and Futures Ordinance (Cap. 571 of the laws of Hong Kong) as amended from time to time.

“SFc” means the Securities & Futures Commission of Hong Kong.

“Sub-Fund” means a separate fund in relation to each part of the Fund, which is invested in accordance with separate and distinct investment policies and/or objectives.

“Trust Deed” means the trust deed dated 30 August 2000 made between the Trustee and the Investment Manager establishing the Fund, as amended.

“Trustee” means HSBC Institutional Trust Services (Asia) Limited.

“Unitholder” means a registered holder of Units.

“Unit” means a unit of a Sub-Fund.

“US Person” has the meaning given to it at page 39.

“USD” means US dollars, the lawful currency of the United States of America.

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A. GeNeRAL DeTAILS OF The FUND

The Fund is a unit trust constituted by the Trust Deed and governed by Hong Kong law.

The Fund is an umbrella fund and currently has 23 Sub-Funds. Units of a Sub-Fund may be issued in different classes. Currently, only one class of Units is available for each Sub-Fund. Each current Sub-Fund and its currency of denomination is listed below.

Sub-Fund currency Sub-Fund currency

Growth FundBalanced FundStable Growth FundCapital Stable Fund

(together, the “Lifecycle Funds”)

HKDHKDHKD HKD

Fidelity SaveEasy 2020 FundFidelity SaveEasy 2025 FundFidelity SaveEasy 2030 FundFidelity SaveEasy 2035 FundFidelity SaveEasy 2040 Fund

(together, the “Saveeasy Funds”)

HKDHKDHKDHKDHKD

Global Bond US$ Hedged FundGlobal Bond HK$ Hedged Fund

(together, the “Global Bond

currency hedged Funds”)

USD

HKD

Hong Kong Equity Fund Asia Pacific Equity FundJapanese Equity FundEuropean Equity FundAmericas Equity Fund Hong Kong Bond Fund Global Bond Fund

(together, the “Market Investment Funds”)

HKD HKD HKD HKD HKD HKD HKD

US$ Money FundHK$ Money Fund

(together, the “Money Market

Funds”)

USDHKD

Asia Pacific Equity Fund (MPF) Global Equity Fund World Bond Fund

(together, the “Level 1 Funds”)

HKDHKDHKD

Further details regarding each of the Sub-Funds are found in Section C.

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B. MANAGeMeNT AND ADMINISTRATION OF The FUND

Investment Manager

FIL Investment Management (hong kong) Limited17/F, One International Finance Centre1 Harbour View StreetCentral, Hong Kong.

The current members of the board of directors of the Investment Manager are Allan Liu, Andrew Wells, Christopher Ryan, Jonathan O’Brien and K C Lee.

The Investment Manager is a subsidiary of Fidelity International.

The Investment Manager is a company with limited liability incorporated in Hong Kong and is licensed by the SFC to carry on regulated activities type 1 – dealing in securities, type 4 – advising on securities, type 5 – advising on futures contracts and type 9 – asset management.

Fidelity International is a leading global, independent investment management firm. The company was established in Bermuda in 1969 to provide investment products and asset management services to investors outside the Americas and has access to resources based in the United States of our affiliate company.

In Hong Kong, Fidelity International offers a full range of investment products and services, which encompass mutual funds, defined contribution pension schemes, and segregated portfolios, to retail and institutional investors.

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Investment Sub-Managers

The Investment Manager provides investment management for the Sub-Funds. However, the Investment Manager has delegated the investment management functions of some of the Sub-Funds to other Investment Sub-Managers within the Fidelity Organisation as listed below:

Sub-Funds

Hong Kong Equity FundAsia Pacific Equity FundAsia Pacific Equity Fund (MPF) Global Equity FundGrowth FundBalanced FundStable Growth FundCapital Stable FundHong Kong Bond FundWorld Bond FundGlobal Bond HK$ Hedged FundGlobal Bond US$ Hedged FundHK$ Money FundUS$ Money FundFidelity SaveEasy 2020 FundFidelity SaveEasy 2025 FundFidelity SaveEasy 2030 FundFidelity SaveEasy 2035 FundFidelity SaveEasy 2040 Fund

FIL Investment Management (hong kong) Limited 17/F, One International Financial Centre, 1 Harbour View Street, Central Hong Kong

European Equity Fund Global Bond Fund

FIL Investments InternationalOakhill House, Hildenborough,Tonbridge, Kent, United Kingdom

Americas Equity Fund Pyramis Global Advisors, LLc.53 State Street, Boston,MA 02109, United States

Japanese Equity Fund Fidelity Investments japan Limited (to be renamed as FIL Investments (Japan) Limited with effect from 1 October 2009) 20/F, Shiroyama JT Trust Tower3-1, Toranomon 4-chome, Minato-ku, Tokyo 105-6019, Japan

The Investment Manager may, with respect to any Sub-Fund, also procure investment advice from companies within the Fidelity Organisation, while retaining the discretion to make investment decisions.

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Trustee, Registrar and custodian

hSBc Institutional Trust Services (Asia) Limited1 Queen’s Road CentralHong Kong

The Trustee is registered as a trust company in Hong Kong and has been approved by the MPF Authority as an approved trustee for MPF purposes.

The Trustee is a wholly-owned subsidiary of HSBC Holdings plc. HSBC Holdings plc is incorporated in England, with its head office in London. The HSBC Group is one of the largest banking and financial services organisation in the world with well-established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

Under the Trust Deed, the Trustee is responsible for the safekeeping of the assets of the Fund. In connection with such duty, the Trustee has appointed The Hongkong and Shanghai Banking Corporation Limited (the “Additional custodian”) as custodian of certain assets of the Fund. The Trustee shall remain custodian of all assets of the Fund except those in relation to which the Additional Custodian is acting as custodian. The Additional Custodian is an affiliate of the Trustee. The Trustee is responsible for paying the Additional Custodian compensation out of the Trustee’s fees described at page 33.

Legal Adviser

Deacons5/F, Alexandra House18 Chater RoadCentralHong Kong

Auditor

Pricewaterhousecoopers33/F, Cheung Kong Centre2 Queen’s Road CentralHong Kong

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c. INVeSTMeNT OBjecTIVeS AND POLIcIeS

Statements of Investment Policy

The Investment Manager believes that, in general, fundamental research can uncover investment opportunities. A bottom up investment process drives investment decision making and portfolio implementation.

For the purpose of the below descriptions, the “long term” is defined as ten years or longer. The “short term” is defined as five years or less.

Sub-Fund Investment Objective Investment Policy

Lifecycle Funds

Growth Fund • to build real wealth over the long term,

• to focus investment into the global equity markets,

• to have the flexibility to invest in global bonds,

• to maintain a broad geographic diversification with a bias towards Hong Kong, and

• to manage the volatility of returns in the short term.

The Growth Fund is a fund of funds, investing into the Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds.

Balanced Fund • to build capital value over the long term,

• to provide a degree of asset diversification within a predominately equity portfolio,



The Balanced Fund is a fund of funds, investing into the Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds.

Stable Growth Fund • to generate a positive return over the long term,

• to broadly diversify the portfolio as to asset type as between equities and bonds,


• to limit the volatility of returns in the short term.

The Stable Growth Fund is a fund of funds, investing into the Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds.

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Capital Stable Fund • to produce a positive return over the long term,

• to focus investment towards less volatile assets of bonds and cash whilst retaining some equity exposure,


• to ensure that the risk to the capital base is limited in the short term.

The Capital Stable Fund is a fund of funds, investing into the Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds.

Global Bond Currency Hedged Funds

Global Bond US$ Hedged Fund

• to invest into world bond markets,

• to produce returns that are related to those achieved on the major bond market indices,

• to minimize currency volatility by implementing a fully USD hedged strategy, and


The Global Bond US$ Hedged Fund is a feeder fund that invests in the Global Bond Fund.

Global Bond HK$ Hedged Fund

• to invest into world bond markets,


• to minimize currency volatility by implementing a fully HKD hedged strategy, and


The Global Bond HK$ Hedged Fund is a feeder fund, that invests in the Global Bond Fund.

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SaveEasy Funds

Fidelity SaveEasy 2020 Fund

• to achieve long term capital growth for investors to 2020,

• to invest typically in a wide range of investments covering markets throughout the world, initially with a greater exposure to equities and thereafter, as the year 2020 is approached, greater exposure to bonds and cash,

• to maintain an asset allocation appropriate to achieve a combination of income and long term capital growth as the year 2020 is approached, and


The Fidelity SaveEasy 2020 Fund is a fund of funds, investing into the Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds.







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• to invest typically in a wide range of investments covering markets throughout the world, initially with greater exposure to equities and thereafter, as the year 2035 is approached, greater exposure to bonds and cash,






• to invest typically in a wide range of investments covering markets throughout the world, initially with greater exposure to equities and thereafter, as the year 2040 is approached, greater exposure to bonds and cash,




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Level 1 Funds

Asia Pacific Equity Fund (MPF)

• to focus investment into the equity markets of Asia Pacific,

• to produce returns that are related to those achieved on the major stock market indices of Asia Pacific,

• to have the flexibility to invest in bonds in a limited manner, and


The Asia Pacific Equity Fund (MPF) is a feeder fund that invests in the Asia Pacific Equity Fund, which invests directly in the market.

Global Equity Fund • to focus investment into the global equity markets,

• to produce returns that are related to those achieved on the major world stock market indices,

• to have the flexibility to have limited investment into bonds, and


The Global Equity Fund is a fund of funds, investing into the Market Investment Funds and the Money Market Funds.

World Bond Fund • to focus investment into the bond markets of the world,

• to produce returns that are related to those achieved on the major bond market indices, and


The World Bond Fund is a fund of funds, investing into the Global Bond HK$ Hedged Fund and the Global Bond Fund.

Market Investment Funds

Hong Kong Equity Fund

• to focus investment into the equity markets and companies of Hong Kong and Greater China,

• to produce returns that are related to those achieved on the major stock market indices of Hong Kong,

• to have the flexibility to invest in bonds in a limited manner,

• to accept a high level of return volatility in the short term.

The Hong Kong Equity Fund invests directly in the market.

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Asia Pacific Equity Fund

• to focus investment into the equity markets of Asia Pacific,

• to produce returns that are related to those achieved on the major stock market indices of Asia Pacific,



The Asia Pacific Equity Fund invests directly in the market.

Japanese Equity Fund • to focus investment into the equity market of Japan,

• to produce returns that are related to those achieved on the major stock market indices of Japan,



The Japanese Equity Fund invests directly in the market.

European Equity Fund • to focus investment into the equity markets of Europe,

• to produce returns that are related to those achieved on the major stock market indices of Europe,



The European Equity Fund invests directly in the market.

Americas Equity Fund • to focus investment into the equity markets of the Americas,

• to produce returns that are related to those achieved on the major stock market indices of the Americas,



The Americas Equity Fund invests directly in the market.

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Hong Kong Bond Fund

• to invest in world bond markets with a focus on HK dollar denominated bonds and issuers,


• to limit the volatility of returns in the short term in HK dollar market terms, and

• to minimize currency volatility by implementing a HKD hedged strategy (where investments are made other than in HKD).

The Hong Kong Bond Fund invests directly in the market.

Global Bond Fund • to focus investment into the bond markets of the world,

• to produce returns that are related to those achieved on the major bond market indices, and


The Global Bond Fund invests directly in the market.

Money Market Funds

US$ Money Fund • to provide a positive return each month equal to or better than the USD Federal Funds Rate,

• to focus investments into short term instruments,

• to limit exposure only to USD instruments, and

• to ensure that there is minimal risk to the capital.

The US$ Money Fund invests directly in the market.

HK$ Money Fund • to provide a positive return each month equal to or better than the HKD savings account rate,

• to focus investments into short term instruments

• to invest only into HKD securities, and

• to ensure that there is minimal risk to the capital.

The HK$ Money Fund invests directly in the market. The portfolio of the HK$ Money Fund will be held in HKD deposits and money market instruments and invested in a manner consistent with those set out in Section 37 of the General Regulation.

Unitholders will be notified of any changes to the statement of investment policy of a Sub-Fund.

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Funds of Funds

The Lifecycle Funds, the SaveEasy Funds and the Level 1 Funds (except the Asia Pacific Equity Fund (MPF)) are funds of funds, such that they invest in “underlying” funds that are selected by the Investment Manager by reference to their appropriateness to meet the investment objective of the particular Lifecycle Fund, SaveEasy Fund or Level 1 Fund (as the case may be) and the desired geographic or asset exposure required by the Investment Manager. An “underlying” fund may, subject to any conditions that may apply to that “underlying” fund (a) permit payments for units after the issue date of such units and (b) accept applications for units for the relevant “underlying” fund where final subscription amounts are confirmed after the dealing cut-off time for the relevant “underlying” fund provided that the relevant subscription orders are placed by the Investment Manager with the Trustee for onward transmission before the dealing cut-off time.

For the SaveEasy Funds in particular, their investments into underlying funds investing in equities will shift towards a greater exposure to underlying funds investing in bonds and cash as the relevant SaveEasy Fund approaches its particular target year. The SaveEasy Funds are intended to provide investors with assistance and greater flexibility in terms of the rebalancing of their asset allocation as they move towards retirement. In particular, the SaveEasy Funds would normally follow the Fidelity SaveEasy Funds Asset Rolldown (see Appendix II for further details) with respect to the effective rebalancing of the particular SaveEasy Fund from a greater exposure to equities to increasing exposures to bonds and cash.

Feeder Funds

The Global Bond HK$ Hedged Fund and the Global Bond US$ Hedged Fund are feeder funds, each investing into the Global Bond Fund. The Asia Pacific Equity Fund (MPF) is a feeder fund investing into the Asia Pacific Equity Fund.

Direct Investment Funds

The Money Market Funds and the Market Investment Funds invest directly in debt securities, equities and other securities, convertible debt securities, warrants, deposits, underwritings, public offers, futures and options, currency forwards, unit trusts and mutual funds.

Global Bond Currency Hedged Funds

Investors should note that the Global Bond Currency Hedged Funds are not hedge funds or alternative investment funds within the meaning of Chapter 8.7 of the SFC’s Code on Unit Trusts and Mutual Funds. Rather, the objectives of each of the Global Bond Currency Hedged Funds are to minimize currency volatility and limit the volatility of returns in the short term by implementing a fully USD hedged strategy (in the case of the Global Bond US$ Hedged Fund) and a fully HKD hedged strategy (in the case of the Global Bond HK$ Hedged Fund).

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Asset Allocation

The underlying portfolio of a Sub-Fund will vary among cash, bonds and equities and among various geographic regions in accordance with its investment objective. The indicative portfolio distributions as at the date of this Explanatory Memorandum are set out in the Appendix II to this Explanatory Memorandum. Investors should note that actual portfolios will at times vary considerably from that shown in the Appendix II as market, political, structural, economic and other conditions change. Please also refer to “Investment and Borrowing Restrictions” below.

With respect to the SaveEasy Funds in particular, they are designed to provide for a prescribed shift in asset allocation during the duration of the SaveEasy Funds, normally following the Fidelity SaveEasy Funds Asset Rolldown (please refer to Appendix II for further details); initially starting with a greater exposure to equities (achieved by investing in a number of the equities related Market Investment Funds) to a reduction in equities exposure and an increase in exposures to bonds and cash assets (achieved by reducing investments in the equities related Market Investment Funds and increasing investments in the bond related Market Investment Funds and the Money Market Funds).

Investment and Borrowing Restrictions

Each Sub-Fund is subject to the investment and borrowing restrictions in Schedule 1 of the General Regulation and the SFC’s Code on Unit Trusts and Mutual Funds. In addition, the Investment Manager may not for the account of any Sub-Fund invest in the securities (other than units in permitted collective investment schemes) issued by the Trustee or the Investment Manager, except where either is a substantial financial institution.

Where a Sub-Fund invests in other collective investment schemes, the underlying collective investment schemes will be selected on the following basis:

(a) appropriateness to meet the investment objectives of the relevant Sub-Fund, and

(b) exposure to the desired geographic or asset exposure required by the Investment Manager.

If any of the investment or borrowing restrictions applicable to a Sub-Fund are breached, the Investment Manager shall, within a reasonable period of time, take as a priority objective all such steps as are necessary to remedy the situation, having due regard to the interests of Unitholders. The Investment Manager is not immediately required to sell applicable investments if any of the investment restrictions are exceeded as a result of changes in the value of a Sub-Fund’s investments, reconstructions or amalgamations, payments out of the assets of the Sub-Fund or realisations of Units but for so long as such limits are exceeded will not acquire any further investments subject to the relevant restriction.

Feeder Funds

When applying investment and borrowing restrictions imposed by the SFC, Sub-Funds that are operated as feeder funds are deemed to be a single entity together with the underlying fund into which they invest.

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Funds of Funds

Generally, each Sub-Fund operated as a fund of funds:

(a) must invest in 5 or more APIFs; and

(b) must not invest more than 30 per cent of its latest available net asset value in any one APIF.

However, at the request of the Investment Manager, the SFC has provided certain Sub-Funds with a waiver from the restriction in (b) above, as described below:

• The Capital Stable Fund may invest up to 75% of its latest available net asset value in the Global Bond Fund and the Global Bond Currency Hedged Funds in aggregate.

• The Stable Growth Fund may invest up to 60% of its latest available net asset value in the Global Bond Fund and the Global Bond Currency Hedged Funds in aggregate.

• The Balanced Fund may invest up to 40% of its latest available net asset value in the Global Bond Fund and the Global Bond Currency Hedged Funds in aggregate and up to 35% of its latest available net asset value in the Hong Kong Equity Fund.

• The World Bond Fund may invest up to 80% of its latest available net asset value in the Global Bond Fund and up to 40% of its latest available net asset value in the Global Bond HK$ Hedged Fund.

• The Global Equity Fund may invest up to 65% of its latest available net asset value in each of the Americas Equity Fund and the European Equity Fund, provided that the maximum total aggregate investment in both the Americas Equity Fund and the European Equity Fund does not exceed 90% of the Global Equity Fund’s latest available net asset value.

• The Growth Fund may invest up to 45% of its latest available net asset value in the Hong Kong Equity Fund.

• SaveEasy Funds

The SaveEasy Funds may invest up to 65% of their respective latest available net asset values in each of the Americas Equity Fund, the European Equity Fund and/or the Asia Pacific Equity Fund, provided that the maximum total aggregate investment in both the Americas Equity Fund, the European Equity Fund and the Asia Pacific Equity Fund does not exceed 90% of the respective SaveEasy Funds latest available net asset values.

The SaveEasy Funds may invest up to 50% of their respective latest available net asset values in the Hong Kong Equity Fund.

The SaveEasy Funds may invest up to 70% of their respect latest available net asset values in each of the Global Bond Fund, Hong Kong Bond Fund, Global Bond HK$ Hedged Fund and/or the Global Bond US$ Hedged Fund.

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The above waivers would generally be applied in line with the Fidelity SaveEasy Funds Asset Rolldown set out under the section headed “Risk and Return Profile” below, subject at all times to the fact that at any particular given point in time actual portfolios may at times vary considerably from that shown in the Fidelity SaveEasy Funds Asset Rolldown as market, political, structural, economic and other conditions change.

Direct Investment Funds

Subject as noted below for the HK$ Money Fund, the Money Market Funds and the Market Investment Funds invest directly in debt securities, equities and other securities, convertible debt securities, warrants, deposits, underwritings, public offers, futures and options, currency forwards, unit trusts, mutual funds and other permissible investments. Such direct investment must comply with the terms of the Trust Deed and Schedule 1 of the General Regulation.

In addition, the HK$ Money Fund will invest in a manner consistent with Section 37 of the General Regulation.

Use of Currency Forward Contracts, Financial Futures Contracts and Financial Option Contracts

Each of the Sub-Funds may invest in financial futures contracts, financial option contracts and/or currency forward contracts subject to the General Regulation and the terms of the Trust Deed. Such investment will be made to hedge the portfolios’ exposure to certain currencies, assets or instruments.

The use of such instruments must be in a manner consistent with the stated investment objectives of the relevant Sub-Fund and the Investment Manager will have regard as to the economic appropriateness of all transactions and their permissibility under the General Regulation.

Security Lending

The Sub-Funds may engage in security lending and repurchase transactions subject to the General Regulation and the terms of the Trust Deed.

Security lending by any Sub-Fund will be conducted in accordance with normal market practice and will not exceed the limits (currently 10% of the net asset value of a Sub-Fund) provided for in the General Regulation. Security lending agreements will be entered into only with counterparties which are rated “A” or better (or such other rating as the Investment Manager and the Trustee may determine from time to time) by Standard & Poor’s or Moody’s (or an equivalent rating from another rating agency) and only if an equivalent or greater value of collateral, compared to the value of the securities lent, will be obtained in the form of cash, government debt securities, and other public debt securities as required by the General Regulation. Cash received as collateral may only be invested in government and other public securities, or deposited in a bank as required by the General Regulation. Income (being either income earned from the collateral or income from the counterparty) from any security lending transaction, after the deduction of the security lending agent’s fees, will be shared between the Sub-Fund and the Trustee. The Sub-Fund will retain not less than 50% of such income arising from the security lending transaction. The Investment Manager and its Connected Persons will not act as security lending agent, but the Trustee may act as security lending agent and the Trustee is entitled to retain fees for acting as agent (which may include an amount calculated by reference to a portion of the income arising from the security lending transaction).

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Risk Factors

each Sub-Fund’s portfolio is subject to market fluctuations and to the risks inherent in all investments and markets. As a result, the price of Units, and the level of income from them, may go down as well as up.

US$ Money Fund and HK$ Money Fund are not bank deposits

Investors should note that the purchase of a Unit in the US$ Money Fund or HK$ Money Fund is not the same as placing funds on deposit with a bank or deposit-taking company. The Investment Manager has no obligation to realise Units at the issue price. Neither of these Sub-Funds is subject to the supervision of the Hong Kong Monetary Authority.

Interest Rates

Changes in interest rates may cause the value of an investment in any Sub-Fund to diminish or increase. Bonds with longer maturity dates are particularly susceptible to interest rate changes and may experience significant price volatility. Any fluctuation in interest rates may have a direct effect on the income received by the Sub-Funds.

Currency Risk

A Sub-Fund may be invested in whole or in part in assets quoted in currencies other than the currency of denomination of the relevant Sub-Fund. The performance of such Sub-Fund will therefore be affected by movements in the exchange rate between the currencies in which the assets are held and the currency of denomination of the relevant Sub-Fund. Since the Investment Manager aims to maximise returns for Sub-Fund in the currency of denomination of the relevant Sub-Fund, investors whose base currency is not the currency of denomination of the relevant Sub-Fund (or a currency linked to it) may be exposed to additional currency risk.

Political, Economic and Social Factors

Investing in asset classes such as deposits, bonds or equities carries risks, and changes in the political, economic or social environment of a country will impact financial markets. The investment return from assets, and the value of those assets, may be impacted positively or negatively.

Financial and economic history indicates countries have at various times experienced different levels of economic growth, stagnation and recession. This varied history over the long term has produced relative financial market returns and risks. Individual financial markets have demonstrated greater return and risk variability than the global market indices of which they are a part. The Investment Manager expects that the relative financial market returns and risks inherent within the “Risk and Return Profile” below will be maintained over the long term.

Counterparty Risks

Investments in deposits and bonds are subject to counterparty defaults.

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Emerging Markets Risk

The history of financial markets shows that emerging markets have been volatile while producing high returns when compared to the larger more mature markets which have tended to be less volatile while generating lower returns. The securities markets of some emerging markets are not yet fully developed which may, in some circumstances, lead to a potential lack of liquidity. Accounting, auditing and financial reporting standards in some emerging markets may be less vigorous than international standards. As a result, certain material disclosures may not be made by some companies.

Portfolio Risk

In general terms, equities have a higher risk profile than bonds whilst cash is considered to have the lowest risk profile.

Instrument Risk

Individual instruments have historically demonstrated a greater range of outcomes at both the return and volatility levels than the asset classes in which they fall. The Investment Manager expects this relative interrelationship will be maintained in the long term. For the instruments that may at various times form the assets of a Sub-Fund the assessment of their risk characteristics is part of the overall investment process.

Implementation Impact

The Investment Manager expects that implementing the investment policy of a Sub-Fund by utilising the full range of instruments available to it as set out in the General Regulation and the Trust Deed will result in the efficient management of the portfolio of the Sub-Fund in a manner consistent with meeting the stated investment objective of the Sub-Fund. Within the investment process a clear understanding as to risk forms an important and regularly assessed element. The Investment Manager is permitted, but not obliged, to use hedging techniques to attempt to offset market risks. There is no guarantee that hedging techniques will achieve their desired result.

SaveEasy Funds

The SaveEasy Funds will invest in certain Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds (collectively the “Relevant FGIF Funds”). The SaveEasy Funds unit will vary daily based on the performance of the Relevant FGIF Funds that each SaveEasy Fund invests into. The ability of each SaveEasy Fund to meet its investment objective is directly related to its target asset allocation among the Relevant FGIF Funds and the ability of the Relevant FGIF funds to meet their investment objectives. Further, if the asset allocation strategy of the Investment Manager with respect to the SaveEasy Funds does not work as intended, the SaveEasy Funds may not achieve their objectives.

SaveEasy Funds, Lifecycle Funds, Level 1 Funds and Global Bond Currency Hedged Funds (collectively the “Applicable Funds”)

For the Applicable Funds, there is a risk with respect to aggregation of holdings of underlying Relevant FGIF Funds holdings, which may result in an Applicable Fund indirectly concentrating assets in a particular industry or group of industries or in a single issuer. Such indirect concentration may have the effect of increasing the volatility of the Applicable Funds’ returns. The Applicable Funds do not control the investments of the Relevant FGIF Funds and any indirect concentration is a result of the Relevant FGIF Funds pursuing their own investment objectives.

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Risk and Return Profile

Investors should always consider their individual risk and return profile. Return means the expected percentage return of a Sub-Fund over any measured time period. Rates of returns vary over time and may be positive or negative. Risk means the expected level of volatility of returns over any measured time period. The level of volatility varies over time.

The Investment Manager has created the below risk/return profile for each Sub-Fund after consideration of the “Risk Factors” described above and the anticipated asset allocation of each Sub-Fund.

Risk/Return Sub-Fund

Highest

Lowest

Hong Kong Equity FundAsia Pacific Equity FundAsia Pacific Equity Fund (MPF) Japanese Equity FundEuropean Equity Fund Americas Equity FundGlobal Equity FundFidelity SaveEasy 2040 Fund*Fidelity SaveEasy 2035 Fund*Fidelity SaveEasy 2030 Fund*Fidelity SaveEasy 2025 Fund*Fidelity SaveEasy 2020 Fund* Growth FundBalanced FundStable Growth FundCapital Stable FundHong Kong Bond FundWorld Bond FundGlobal Bond FundGlobal Bond US$ Hedged FundGlobal Bond HK$ Hedged FundUS$ Money FundHK$ Money Fund

* The SaveEasy Funds will initially have greater exposure to underlying funds investing into equities. However, as the SaveEasy Funds draw closer to the applicable target year, the SaveEasy Funds would have a greater exposure to underlying funds investing in bonds and cash. As and when the SaveEasy Funds exposures change, the risk/return profile of the SaveEasy Funds would move lower down the above risk/return profile scale. Please refer to the below chart displaying the Fidelity SaveEasy Funds Asset Rolldown.

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The Fidelity SaveEasy Funds Asset Rolldown chart above provides a simple method for investors to view the indicative asset allocations of the various SaveEasy Funds and also the shift in their risk/return profile over the duration of the particular SaveEasy Fund. Investors are reminded that this is an indicative rolldown and that at any particular given point in time actual portfolios may at times vary considerably from that shown above as market, political, structural, economic and other conditions change.

Fidelity Saveeasy Funds Asset Rolldown chart

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D. ISSUe, ReALISATION AND SWITchING OF UNITS

Initial Application and Subsequent Dealing Instructions

For initial applications for Units, an original executed application form must be sent to the Trustee. Subsequent instructions to issue, switch and realise Units must be given to the Trustee. Where agreed with the Trustee, subsequent instructions may be given by fax. Neither the Trustee nor the Investment Manager will be responsible for any loss resulting from the non-receipt of any document sent at the applicant’s risk by fax. Applicants are recommended to check with the Trustee to confirm receipt of their fax instruction.

Issue of Units

The issue of Units is at the discretion of the Investment Manager. Units in respect of which cleared funds have been received will normally be issued on every Dealing Day in respect of an application received not later than:

• 12 noon (Hong Kong time) on that Dealing Day, for the HK$ Money Fund and US$ Money Fund, and

• 5 p.m. (Hong Kong time) on that Dealing Day, for all other Sub-Funds,

or such other time agreed by the Trustee and the Investment Manager. The Investment Manager may, as it deems appropriate, agree with the Trustee to issue Units in respect of an application before receipt of cleared funds.

Issue Price

The first Units of each of the SaveEasy Funds will be issued at an initial issue price of HKD10.00.

After the first issue of Units, Units of a class will be issued at the issue price for such Units on the relevant Dealing Day, as described below under “Calculation of Issue and Realisation Prices”.

Procedures for Application and Payment

The Trustee and the Investment Manager reserve the right to reject any application and to accept any application in part only. However, duly completed applications submitted on behalf of the Fidelity Retirement Master Trust will be accepted.

The subscription monies should be forwarded in full at the same time the application form is sent to the Trustee. Payment of subscription monies and any preliminary charge should normally be made in HKD (or in the case of the US$ Money Fund and the Global Bond US$ Hedged Fund, USD).

Payment should be made in one of the ways set out in the application form.

Where payment is made by cheque or bank draft drawn on a bank in Hong Kong, cleared funds will not normally be received by the Trustee until the second Business Day following first presentation. When payment is made in USD, there may be a delay in receiving cleared funds and this will result in a delay in the processing of subscription applications.

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Cash subscriptions will not be accepted. Subscription moneys will not be treated as having been received unless paid in one of the ways described in the application form.

Where subscription moneys are paid in any currency other than HKD (or in the case of the US$ Money Fund and the Global Bond US$ Hedged Fund, other than USD), the Trustee will convert the subscription moneys into HKD (or USD, as the case may be), if necessary, and the cost of currency conversion will be deducted from those subscription moneys before being applied towards the purchase of Units. Conversion of currencies may result in a delay in the processing of subscription applications.

No money should be paid to any intermediary in Hong Kong who is not licensed or registered to carry on Type 1 regulated activity under Part V of the Securities and Futures Ordinance or otherwise exempt from such licensing requirement.

Fractions of a Unit may be issued rounded down to three decimal places. Smaller fractions will be ignored.

No certificates for Units will be issued. A confirmation notice will be issued by the Trustee as soon as reasonably practicable after acceptance of an application for the issue of Units and sent by post at the Unitholder’s risk.

If an application form and application monies have not been received within 5 Business Days of the Dealing Day upon which the application was dealt with, the Investment Manager may enforce payment of the sum due or cancel the Units in the relevant Sub-Fund applied for.

Switching between Sub-Funds

Unitholders will have the right (subject to any suspension or limitation of the right of Unitholders to require the realisation of Units of any relevant class as described below) to switch all or part of their Units of any Sub-Fund (the “Original Sub-Fund”) into Units of another Sub-Fund or Sub-Funds (each a “New Sub-Fund”) by giving to the Trustee notice in writing of their requirements.

The Investment Manager has the discretion not to effect a switch until the full amount of the issue price of the Units of the Original Sub-Fund has been received in full in cleared funds and intends to exercise this discretion in respect of switches into Units of the Money Market Funds. Switching of part of a holding of Units of the Original Sub-Fund is permitted only if it will not result in the Unitholder holding a number of Units of either the Original Sub-Fund or any New Sub-Fund the aggregate net asset value of which is below the minimum holding for the relevant Sub-Fund. There is currently no minimum holding for Units in any Sub-Fund.

In order for a switching notice to be dealt with on a particular Dealing Day, the switching notice signed by the Unitholder must be received by the Trustee before 5 p.m. (Hong Kong time) on that Dealing Day or such other time agreed by the Trustee and the Investment Manager.

Where the whole or any part of a holding of Units of the Original Sub-Fund is to be switched on any Dealing Day into Units of a New Sub-Fund, the number of Units of the New Sub-Fund to which the Unitholder in question will be entitled will be determined in accordance with the provisions in the Trust Deed.

No interest is payable to any Unitholder for the period required to effect a switching.

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Realisation of Units

Subject to the conditions set out in the Trust Deed, the Trustee will realise Units on each Dealing Day in respect of requests received by the Trustee up to 5 p.m. (Hong Kong time) on that Dealing Day, or such other time agreed by the Trustee and the Investment Manager.

Realisation of part of a holding of Units of a Sub-Fund is permitted only if it will not result in the Unitholder continuing to hold Units of that class the aggregate net asset value of which is below the minimum holding for the relevant class. There is currently no minimum holding for Units in any Sub-Fund.

Units of a class will be realised at the realisation price for such Units on the relevant Dealing Day, as described below under “Calculation of Issue and Realisation Prices”.

Subject as mentioned below, payment of the realisation moneys will normally be despatched by wire transfer to the realising Unitholder within seven Business Days after the later of the relevant Dealing Day or receipt of the realisation form and such other documentation as the Investment Manager may require. Payment may be sent at the discretion of the Trustee by cheque to the address on record for the Unitholder, but at the Unitholder’s risk. Assuming no delay in submitting completed documentation and the Investment Manager does not exercise any of the powers described below under "Limitation and Suspension", the maximum period which should normally elapse between the receipt of a valid realisation request and the date of despatch of realisation moneys is 28 days.

No interest is payable to any Unitholder for the period between the making of a realisation request and the receipt of realisation moneys by the Unitholder.

Limitation and Suspension

Limitation

With a view to protecting the interests of Unitholders, the Investment Manager with the approval of the Trustee, may, where the realisation requests on any Dealing Day exceed 10% of the total number of Units of any class in issue, limit the number of Units of that class realised on that Dealing Day to 10 per cent of the total number of Units of that class then in issue and defer to the next Dealing Day realisation requests in excess of that 10%. Any limitation will apply pro rata so that all Unitholders wishing to realise Units of an affected class on that Dealing Day realise the same proportion of such Units. Realisation requests in respect of all Units not realised but which would otherwise have been realised on that Dealing Day, together with all realisation requests subsequently received, will be carried forward to the next Dealing Day relating to that class. All Units of that class the subject of such realisation requests will (subject to the same limitation and as provided below) be realised on the next Dealing Day. On any subsequent Dealing Day priority will be given to requests which have been carried forward according to the length of time for which they have been carried forward.

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Suspension

The Investment Manager may upon written notice to the Trustee defer or suspend the issue of Units and the right of Unitholders to require the realisation or switching of Units relating to a Sub-Fund and/or delay the payment of realisation moneys in relation to those Units during:

(i) any period when any market on which a substantial part of the relevant Sub-Fund’s investments is quoted, listed or dealt in is closed otherwise than for ordinary holidays,

(ii) any period when dealings on any such market are restricted or suspended,

(iii) the existence of any state of affairs as a result of which disposal of some or all of the relevant Sub-Fund’s investments cannot, in the opinion of the Investment Manager, be effected normally or without seriously prejudicing the interests of Unitholders,

(iv) the breakdown in the means of communications normally employed in determining the net asset value of the relevant Sub-Fund or when for any other reason the value of any of the relevant Sub-Fund’s investments cannot be promptly and accurately ascertained,

(v) any period when the realisation of the relevant Sub-Fund’s investments or the transfer of funds involved in such realisation cannot, in the opinion of the Investment Manager, be effected at normal prices or normal rates of exchange, and

(vi) any period when the payment or receipt of the proceeds of the realisation of any of the relevant Sub-Fund’s investments is the subject of delay.

Units will not be created or issued by the Trustee nor shall the payment of monies in respect of any realisation be made during the period of suspension. Notice of the imposition and raising of any suspension or deferral will be given to persons who have applied to acquire, switch or realise Units of the class affected. Unless withdrawn, applications, switching notices and realisation requests will be dealt with on the first Dealing Day relating to the relevant class which follows the lifting of the suspension or deferral. Any suspension in dealing of a Sub-Fund shall be consistent with any relevant official rules and regulations.

calculation of Net Asset Value

The net asset value of each Sub-Fund and the net asset value per Unit of each class of each Sub-Fund will be determined by the Trustee as at 9 a.m. (Hong Kong time) on the Business Day following each Dealing Day.

The net asset value of each Sub-Fund is calculated by determining the value of each of the investments of the Sub-Fund on the basis as stated below, adding the value of other assets and not yet completed purchases of investments of the Sub-Fund, and subtracting from this amount the aggregate amount of borrowings attributable to the Sub-Fund, the value of not yet completed sales of investments, and other accrued or incurred liabilities and expenses of the Sub-Fund (including the fees of the Trustee and of the Investment Manager).

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Quoted investments (other than interests in collective investment schemes) will normally be valued at the latest available traded price on the stock exchange or over-the-counter market on which the investment is listed, traded or ordinarily dealt in or (as the case may be) quoted by the person, firm or institution making a market in that investment (or, if the investment is listed, traded or ordinarily dealt in on more than one stock exchange or over-the-counter market or there is more than one market-maker, the price on such one of those stock exchanges or over-the-counter markets, or quoted by such market-maker, as may be selected by the Trustee after consulting the Investment Manager as providing the principal market for such securities) as at the close of business of the last session of the market on or prior to the relevant Dealing Day. The Trustee shall be entitled to use and rely on electronic price feeds from such source or sources as it may determine from time to time for the purposes of valuing quoted investments.

The value of unquoted investments (other than interests in collective investment schemes) will be the initial value of the investments or the value as assessed on the most recent revaluation.

The value of each unit in any collective investment scheme will be the latest available net asset value per unit in such collective investment scheme (or, if not available, the latest available bid price), or in the case of a Unit in another Sub-Fund, the net asset value per Unit of such Sub-Fund calculated as at the same valuation point.

Cash, deposits and similar property will be valued at their face value, together with accrued interest.

There is included in, or deducted from, the assets of the Sub-Fund in respect of each outstanding futures contract entered into on behalf of the Sub-Fund an amount equal to the gain or (as the case may be) loss which would have accrued to the Sub-Fund at the time as at which the relevant valuation is made if the Investment Manager had at that time closed out the position of the Sub-Fund under that contract by entering into an equal and opposite futures contract at market prices prevailing at that time.

The Trust Deed permits the Trustee after consultation with the Investment Manager to adjust the value of any investment or permit some other method of valuation to be used if the Trustee considers that such adjustment or other method of valuation is required to reflect more fairly the value of the relevant investment.

calculation of Issue and Realisation Prices

The net asset value per Unit of a particular class of each Sub-Fund is calculated by apportioning the net asset value of the Sub-Fund (calculated in accordance with the Trust Deed) among the shares in the Sub-Fund represented by all Units of each class, accounting for assets and liabilities specifically attributable to that particular class, and then dividing by the number of Units of that class then in issue.

The price at which Units of a class are issued in respect of any Dealing Day is the net asset value per Unit of that class, rounded down to the nearest HKD0.01 (or, if applicable, USD0.01).

The price at which Units of a class are realised in respect of any Dealing Day will be the net asset value per Unit of that class, rounded down to the nearest HKD0.01 (or, if applicable, USD0.01).

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In determining the issue price of any class of Units, the Investment Manager may add (prior to any rounding) an allowance for transaction costs (which shall not exceed one per cent of the net asset value per Unit) which might be payable to buy investments for the account of the relevant Sub-Fund. Similarly, in determining the realisation price of any class of Units, the Investment Manager may deduct (prior to any rounding) an allowance for transaction costs (which shall not exceed one per cent of such net asset value per Unit) which might be payable to sell investments for the account of the relevant Sub-Fund.

Please note that charges may apply to the issue and realisation of Units (please see page 30 for details).

Publication of Issue and Realisation Prices

Issue prices and realisation prices will be published regularly in the South China Morning Post and the Hong Kong Economic Times.

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e. FeeS, chARGeS AND eXPeNSeS

The below table and explanatory notes distinguish between “fees”, “charges” and “expenses”. “Fees” are agreed fees payable to the Investment Manager, the Trustee or persons appointed by the Trustee to provide services to the Fund, generally determined by reference to a Sub-Fund’s net asset value. “charges” are set charges payable to the Investment Manager, the Trustee or persons appointed by the Trustee to provide services to the Fund, generally applied when a particular service or transaction is provided. “expenses” are expenses paid and properly relating to the operation of the Fund. Expenses may be paid by the Fund directly or incurred by the Trustee or the Investment Manager, which may then seek reimbursement from the Fund. Expenses are accrued daily, based on estimates.

All expenses incurred are charged to the Sub-Funds on an accrual basis except for establishment costs, which are charged over 5 years

1. All expenses are charged to the Sub-Funds.

1 Establishment CostsEstablishment costs for the Sub-Funds are apportioned between and borne by the Sub-Funds in proportion to their respective net asset values and will be charged over a period of five years starting at a date (the “Amortisation Date”) after the first anniversary of each particular Sub-Fund and before the fourth anniver-sary of such Sub-Fund, as determined by the Investment Manager. Prospective investors should note that such amortisation does not comply with International Financial Reporting Standards.

The date of establishment, establishment costs, apportionment and Amortisation Date with respect to the Sub-Funds is set out below:

Sub-FundDate of establishment

establishment costs

ApportionmentAmortisation Date

Growth, Balanced, Stable Growth, Capital Stable, Hong Kong Equity, Japanese Equity, US$ Money, HK$ Money, Global Bond, European Equity, Americas Equity and Asia Pacific Equity

January 31, 2000 HKD2,188,177 in proportion to their respective net asset values as at December 31, 2001(except for the HK$ Money Fund)

April 1, 2003

Global Bond US$ Hedged, the Global Bond HK$ Hedged and Hong Kong Bond

March 6, 2003 HKD409,833 in proportion to their respective net asset values as at December 31, 2003

March 1, 2007

World Bond and Global Equity June 30, 2003 HKD125,499 in proportion to their respective net asset values as at December 31, 2003

June 1, 2007

Asia Pacific Equity Fund (MPF) August 7, 2006 HKD45,000 N/A To be determined

Fidelity SaveEasy 2020 Fund, Fidelity SaveEasy 2025 Fund, Fidelity SaveEasy 2030 Fund, Fidelity SaveEasy 2035 Fund and Fidelity SaveEasy 2040 Fund

October 27, 2008 Estimated to be approximately HKD40,000

in proportion to their respective net asset values as at December 31, 2009

To be determined

The establishment costs of the Global Bond US$ Hedged, the Global Bond HK$ Hedged and the Hong Kong Bond Funds were estimated to be HKD225,000. The actual establishment costs were HKD409,833. The actual establishment costs exceeded the estimated establishment costs primarily due to resulting legal fees being higher than expected.

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The application of fees and charges payable to the Investment Manager and/or to its Connected Persons are subject to the “no double charging” principle, such that the investment by the Sub-Funds into other Sub-Funds may not result in an overall increase in fees and charges payable to the Investment Manager and/or to its Connected Persons. To respect the “no double charging” principle, there is no initial charge or realisation charge applicable with respect to the investment by a Sub-Fund into another Sub-Fund. The investment management fees applicable to the Lifecycle Funds and the Global Bond Currency Hedged Funds have been waived, such that the Investment Manager only receives investment management fees with respect to the Market Investment Funds and the Money Market Funds. However, for accurate disclosure purposes we have identified the aggregate investment management fees charged at the Market Investment Fund level and which are then attributed to the Lifecycle Funds and the Global Bond Currency Hedged Funds. With respect to the Level 1 Funds and the SaveEasy Funds, an aggregate investment management fee is applied across both the Level 1 Funds and the SaveEasy Funds and the underlying Market Investment Funds that these two categories of FGIF Funds invest into. In effect the aggregate investment management fees payable by the Level 1 Funds and the SaveEasy Funds is equivalent to the investment management fees payable by the Market Investment Funds.

The fees and charges described below represent both the maximum and current levels that may be paid. The current fees, charges and expenses may be waived, reduced or, in the case of establishment costs, deferred at the discretion of the Trustee and the Investment Manager, subject to the MPF Ordinance and the General Regulation. Once such change has occurred they may be reset again or returned to the prior levels without notice.

No fee payable to the Investment Manager or the Trustee may exceed the current level unless not less than three months’ notice (or such shorter period of notice as the SFC may permit) is given to relevant Unitholders.

All fees, charges and expenses may only be charged where not prohibited by the MPF Ordinance and/or the General Regulation.

No advertising, promotional or other selling expenses will be charged to the Sub-Funds.

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Please note that the fee tables below do not take into account any rebates or waivers with respect to fees and charges that may be offered to specific investors from time to time.

The fees and charges described below use terminology that may not match the description of the fees, charges and expenses used in the Trust Deed.

Fees and charges Payable Directly by Investors

chargePayable Upon

Payable ToMaximum Amount

current Amount

Initial Charge Subscription for Units

Investment Manager

5.0% of issue price

5.0% of issue price

Realisation Charge

Realisation of Units

Investment Manager

5.0% of realisation price


Switching Charge

Switching of Units

Investment Manager


Currently Waived

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Fees, charges and expenses Payable by the Sub-Funds

Fee Payable To Sub-FundsMaximum Level

current Level

Investment Management Fee

Investment Manager

Lifecycle Funds (this is an aggregate fee, including the investment management fee charged by the underlying Market Investment Funds)

2.0% per annum of net asset value

up to 0.75% per annum of net asset value2

Level 1 Funds (this is an aggregate fee, including the investment management fee charged by the underlying Market Investment Funds)



Global Bond Currency Hedged Funds (this is an aggregate fee, including the investment management fee charged by the underlying Market Investment Funds)


0.75% per annum of net asset value2

Money Market Funds



2 The current management fee payable by the Lifecycle Funds, the SaveEasy Funds and the Level 1 Funds is inclusive of the management fees of up to 0.75% per annum charged on the Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds in which the relevant Lifecycle Fund, SaveEasy Fund or Level 1 Fund invests. The maximum total management fee payable to the Investment Manager at both levels is 2.0% per annum of the net asset value of the relevant Lifecycle Fund, SaveEasy Fund or Level 1 Fund. With respect to the Asia Pacific Equity Fund (MPF) within the Level 1 Funds, the current management fee is inclusive of the 0.75% p.a. charged on its underlying fund, the Asia Pacific Equity Fund. With respect to the Global Bond Currency Hedged Funds, the current management fee is inclusive of the 0.75% p.a. charged on its underlying fund, the Global Bond Fund.

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current Level


Investment Manager

SaveEasy

Funds (this is an aggregate fee, including the investment management fee charged by the underlying Market Investment Funds)


up to 0.75% per annum and will reduce to up to 0.5% per annum of net asset value five years prior to reaching the beginning (i.e. 1 January) of the applicable target year for the particular SaveEasy Fund2



0.75 % per annum of net asset value

Incentive Fee3 Investment Manager

All Sub-Funds 20% of increase in net asset value per Unit over an accounting period

Currently Waived

3 Incentive Fee

Although an incentive fee may be charged in relation to each class of Units, the Investment Manager does not currently intend to charge an incentive fee. Such a fee, if applied by the Investment Manager, would be calculated as a percentage (which shall not exceed 20%) of the increase of the net asset value per Unit of the relevant class over an accounting period multiplied by the average number of Units of the relevant class in issue during such accounting period. The increase of the net asset value per Unit will be calculated based on the net asset value of a Unit of the relevant class on the last Dealing Day for the accounting period and the net asset value of that Unit on the initial issue date, or if an incentive fee has been paid, the last Dealing Day for the preceding accounting period in respect of which an incentive fee was paid. If the Investment Manager proposes to charge such incentive fee in the future, then not less than three months’ notice (or such shorter period of notice as the SFC may permit) will be given to relevant Unitholders.

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current Level

Trustee Fee Trustee Lifecycle Funds (this is an aggregate fee, including the trustee fee charged by the underlying Market Investment Funds)



Level 1 Funds (this is an aggregate fee, including the trustee fee charged by the underlying Market Investment Funds)



Global Bond Currency Hedged Funds (this is an aggregate fee, including the trustee fee charged by the underlying Market Investment Funds)



Money Market Funds


up to 0.125% per annum of net asset value

SaveEasy

Funds (this is an aggregate fee, including the trustee fee charged by the underlying Market Investment Funds)





up to 0.125% per annum of net asset value

4 The current trustee fee payable by the Lifecycle Funds, the SaveEasy Funds and the Level 1 Funds is inclusive of the trustee fees of up to 0.125% per annum charged on the Market Investment Funds, the Money Market Funds and the Global Bond Currency Hedged Funds in which the relevant Lifecycle Fund, SaveEasy Fund or Level 1 Fund invests. The maximum total trustee fee payable to the Trustee at both levels is 0.5% per annum of the net asset value of the relevant Lifecycle Fund, SaveEasy Fund or Level 1 Fund. With respect to the Asia Pacific Equity Fund (MPF) within the Level 1 Funds, the current trustee fee is inclusive of the trustee fee of 0.125% p.a. charged on its underlying fund, the Asia Pacific Equity Fund. With respect to the Global Bond Currency Hedged Funds, the current trustee fee is inclusive of the trustee fee of 0.125% p.a. charged on its underlying fund, the Global Bond Fund.

34

Expenses

Fees and expenses incurred in relation to the Sub-Funds may be charged to the assets of the Sub-Funds so long as permitted under the terms of the Trust Deed, which may include all stamp and other duties, taxes, governmental charges, brokerage commissions, exchange costs and commissions, bank charges, transfer fees and expenses, registration fees and expenses, transaction fees of the Trustee, custodian or sub-custodian and proxy fees and expenses, collecting fees and expenses, insurance and security costs, and any other costs, charges or expenses payable in respect of the acquisition, holding and realisation of any investment or other property or any cash, deposit or loan (including the claiming or collection of income or other rights in respect thereof and including any fees or expenses charged or incurred by the Trustee or the Investment Manager or any Connected Person in the event of the Trustee or the Investment Manager or such Connected Person rendering services or effecting transactions giving rise to such fees or expenses, the fees and expenses of the registrar (currently the Trustee’s fees include the registrar’s fees), fees charged by the Trustee in connection with valuing the assets of the Sub-Funds or any part thereof and calculating the issue and realisation prices of units and preparing financial statements, legal fees, audit fees, tax advisor fees, translation fees, out-of-pocket expenses incurred by the Trustee wholly and exclusively in the performance of its duties, the expenses of or incidental to the preparation of deeds supplemental to the Trust Deed, the expenses of holding meetings of Unitholders and of giving notices to Unitholders, the costs and expenses of obtaining and maintaining a listing for the Units on any stock exchange or exchanges selected by the Investment Manager and approved by the Trustee and/or in obtaining and maintaining any approval or authorisation of the Fund or any Sub-Fund or in complying with any undertaking given, or agreement entered into in connection with, or any rules governing such listing approval or authorisation, all costs incurred in publishing the issue and realisation prices of Units, all costs of preparing, printing and distributing all statements, accounts and reports pursuant to the provisions of the Trust Deed, the expenses of preparing and printing any explanatory memorandum, and costs and expenses of the Trustee in connection with time and resources incurred by the Trustee reviewing and producing documentation in connection with the operation of any Sub-Fund and any other expenses, deemed by the Investment Manager to have been incurred in compliance with or in connection with any change in or introduction of any law or regulation or directive (whether or not having the force of law) of any governmental or other regulatory authority or with the provisions of any code relating to unit trusts.

35

Soft Dollars and cash Rebates

The Investment Manager and any of its Connected Persons may effect transactions by or through the agency of another person with whom the Investment Manager or any of its Connected Persons have an arrangement under which that party will from time to time provide to or procure for the Investment Manager or any of its Connected Persons goods, services or other benefits (such as research and advisory services) the nature of which is such that their provision can reasonably be expected to benefit the Fund as a whole and may contribute to an improvement in the performance of the Fund or of the Investment Manager or any of its Connected Persons in providing services to the Fund and for which no direct payment is made but instead the Investment Manager or any of its Connected Persons undertake to place business with that party. For the avoidance of doubt, such goods and services do not include travel, accommodation, entertainment, general administrative goods or services, market data services, general office equipment or premises, membership fees, employee salaries or direct money payments.

Brokerage rates will not be in excess of customary brokerage rates. All transactions will be done with best execution.

The Investment Manager and its Connected Persons shall not retain the benefit of any cash commission rebate (being repayment of a cash commission made by a broker or dealer to the Investment Manager and/or any Connected Person) paid or payable from any such broker or dealer in respect of any business placed with such broker or dealer by the Investment Manager or such Connected Person for or on behalf of the Fund. Any such cash commission rebate received from any such broker or dealer will be held by the Investment Manager or the relevant Connected Person and transferred to the Trustee for the account of the Fund.

Brokerage rates will not be in excess of customary brokerage rates. All transactions will be done with best execution.

36

F. GeNeRAL INFORMATION

MPF hotline and other assistance

If you require any assistance, please call the Fidelity Retirement Hotline: 2500 1666 or log onto our web site at: http://www.fidelity.com.hk for information and assistance on:

• Managing your retirement portfolio• Fund choices available for you• Views on the financial markets

Taxation

Under current Hong Kong tax law and practice:-

(i) profits of the Fund arising from the sale or disposal of securities, interest received by or accrued to the Fund and certain other profits of the Fund (including those under foreign exchange contracts and futures contracts) will be exempt from profits tax;

(ii) profits tax will not be payable by any Unitholder on any gains or profits made on the realisation or other disposal of Units unless the Unitholder carries on a trade, profession or business in Hong Kong, the acquisition and disposal of investment securities represents a trading venture of such Unitholder;

(iii) distributions to Unitholders out of the Fund will not be subject to the deduction of any withholding tax; and

(iv) The realisation of Units by an Unitholder may be subject to stamp duty. Such charge, if any, may be deducted before the payment of realisation moneys to the Unitholder.

Potential applicants for Units in the Fund should seek professional advice regarding their own particular tax circumstances.

Financial Year-end

The Fund's year end is 31st December in each calendar year.

Trust Deed

All Unitholders are entitled to the benefit of, are bound by, and are deemed to have notice of the provisions of the Trust Deed. Unitholders and interested applicants are advised to consult the terms of the Trust Deed. Copies of the Trust Deed and the agreement between the Trustee and the Investment Manager appointing the Investment Manager to manage the Fund may be obtained from the Investment Manager at such price as the Investment Manager may from time to time determine or may be inspected during normal working hours at the offices of the Investment Manager, free of charge. Although every effort has been taken to ensure the accuracy of the facts and matters set out in this Explanatory Memorandum, in the case of any conflict, the terms of the Trust Deed shall prevail.

37

Termination, Merger or Division of the Fund or any Sub-Fund

Unless terminated earlier as provided in the Trust Deed, the Fund will continue until the date falling 80 years after the date of the Trust Deed.

The Fund may be terminated in certain circumstances, including by either the Trustee or the Investment Manager where it becomes illegal or impracticable or inadvisable to continue the Fund, by the Investment Manager where the net asset value of the Fund falls below HKD10,000,000, or at any time with the approval of an extraordinary resolution of Unitholders (as described in the Trust Deed).

The Investment Manager also has the power under the Trust Deed to terminate any Sub-Fund at any time if the net asset value of that Sub-Fund falls below HKD1,000,000, or if it becomes illegal or impracticable or inadvisable to continue the Sub-Fund.

Unitholders will be given three months’ notice (or such other period of notice as may be required by the SFC or MPF Authority) of the merger, division or termination of a Sub-Fund or the Fund.

Income Distribution

It is the current intention of the Investment Manager that distributions of income will not be made from the Fund. Income earned will be retained and reflected in the value of Units. In the event that distributions are made, they will automatically be reinvested in the subscription of further Units of the relevant Sub-Fund except where Unitholders have requested otherwise.

Reports and Accounts

Audited financial statements for the Fund will normally be sent to Unitholders within two months, and in any event not more than four months, after the end of each financial year of the Fund. The Investment Manager will also send unaudited semi-annual reports to Unitholders made up to the last Dealing Day in such financial period, within two months after the end of the first six months in each financial year. Such reports will contain a statement of the value of each Sub-Fund and of the investments and cash comprised in each Sub-Fund as at the end of the relevant period. In addition, the annual financial statements will include the investment portfolio of the underlying fund of each Sub-Fund which is a feeder fund as at 31st December in each year.

38

Auditor’s Maximum Liability to the Fund The Trustee has entered into an engagement letter with the Auditor. Pursuant to the terms of its engagement, the Auditor has limited its liability to the Trustee in respect of any claims arising out of or in connection with its engagement to an amount equal to three times the fees paid to it for the services or work product giving rise to the liability, except to the extent finally determined to have resulted from its wilful or intentional neglect or misconduct or fraudulent behavior. Other release and indemnity provisions are also contained in the Auditor’s engagement letter relating to consequential loss, third party claims, and fraudulent acts or omissions, misrepresentations or wilful default on the part of the Investment Manager or the Trustee in its capacity as Trustee of the Fund, their directors, employees or agents.

compulsory Realisation or Transfer of Units

The Investment Manager may require a Unitholder to transfer the Unitholder’s Units or, failing such transfer, may realise such Units in accordance with the Trust Deed if it shall come to the notice of the Investment Manager that the Unitholder holds such Units (a) in breach of the law or requirements of any country or governmental authority or (b) in circumstances (whether directly or indirectly affecting such Unitholder and whether taken alone or in conjunction with any other persons, connected or not, or any other circumstances appearing to the Investment Manager to be relevant) which, in the opinion of the Investment Manager, might result in the Investment Manager, the Trustee or the Fund breaching any law or requirement of any country or governmental authority, incurring any liability to taxation or suffering any other pecuniary disadvantage which the Investment Manager, the Trustee or the Fund might not otherwise have incurred or suffered or which might result in the Investment Manager, the Trustee or the Fund becoming subject to additional regulation in any other country.

Anti-Money Laundering Regulations

As part of the Investment Manager’s and Trustee’s responsibility for the prevention of money laundering, they may require a detailed verification of the applicant’s identity and the source of the payment.

The Investment Manager and the Trustee reserve the right to request such information as is necessary to verify the identity of an applicant and the source of payment. In the event of delay or failure by the applicant to produce any information required for verification purposes, the Investment Manager and/or the Trustee may refuse to accept the application and the subscription monies relating thereto.

39

Definition of “US Person”

“US Person” means: (a) a citizen or resident of the United States of America; (b) a partnership, corporation, limited liability company or similar entity, organised or incorporated under the laws of the United States of America, or an entity taxed as such or subject to filing a tax return as such under the United States federal income tax laws; (c) any estate or trust the executor, administrator or trustee of which is a US Person unless, in the case of trusts of which any professional fiduciary acting as trustee is a US Person, a trustee who is not a US Person has sole or shared investment discretion with respect to trust assets and no beneficiary of the trust (and no settlor if the trust is revocable) is a US Person; (d) any estate or trust the income of which from sources without the United States of America is includible in gross income for purposes of computing United States income tax payable by it; (e) any agency or branch of a foreign entity located in the United States of America; (f) any discretionary or non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary located within or outside the United States of America for the benefit or account of a US Person; (g) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated or (if an individual) resident in the United States of America, except that any discretionary account or similar account (other than an estate or trust) held for the benefit or account of a non-US Person by a dealer or other professional fiduciary organised, incorporated or (if an individual) resident in the United States of America shall not be deemed a US Person; (h) any firm, corporation or other entity, regardless of citizenship, domicile, situs or residence if, under the income tax laws of the United States of America from time to time in effect, any portion of the income thereof would be taxable to a US Person even if not distributed, other than a passive foreign investment company; (i) any partnership, corporation or other entity if (A) organised or incorporated under the laws of any foreign jurisdiction and (B) owned or formed by a US Person or Persons principally for the purpose of investing in securities not registered under the US Securities Act of 1933 (including but not limited to Units in the Fund); (j) any employee benefit plan unless such employee benefit plan is established and administered in accordance with the law of a country other than the United States of America and customary practices and documentation of such country and is maintained primarily for the benefit of persons substantially all of whom are non-resident aliens with respect to the United States of America; and (k) any other person or entity whose ownership of Units or subscription for Units in the Fund may violate any securities law of the United States of America or any state or other jurisdiction thereof. “US Person” shall not include any person or entity, notwithstanding the fact that such person or entity may come within any of the categories referred to above, as to whom the Investment Manager shall determine that ownership of Units or subscription for Units shall not violate any securities law of the United States of America or any state or other jurisdiction thereof. In this definition, “United States of America” includes its states, commonwealths, territories, possessions and the District of Columbia.

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IV

FIDELITY GLOBAL INVESTMENT FUND

Addendum to the Explanatory Memorandum dated September 2009

This Addendum forms part of, and should be read together with, the Explanatory Memorandum for Fidelity Global Investment Fund dated September 2009.

1. With effect from 18 October 2010, new classes of Units in relation to the Sub-Funds are made available.

(a) The following paragraph shall be added to page 3 of the Explanatory Memorandum as the last paragraph under section A, “General Details of the Fund”:

“Classes of Units

In respect of each Sub-Fund, there will be the following classes of Units:

Sub-Funds Class A Class B Class M

All Sub-Funds except HK$ Money Fund 3 3 N/A

HK$ Money Fund 3 3 3

• Class A and B Units are available for issue to trustees of retirement schemes registered under MPF Ordinance and to certain institutional investors, as determined by the Investment Manager.

• Class M Units are only available to fund / portfolios which are managed or advised by the Investment Manager or as agreed by the Investment Manager.

• The Investment Manager shall have the sole and absolute discretion to accept or reject an initial application for subscription in Class B Units and Class M Units. Class B and Class M in relation to each Sub-Fund may be launched at the Investment Manager’s discretion from time to time. For availability of any classes of any Sub-Funds, please contact the Investment Manager for further details.”

(b) Thefirstparagraphunderthe“Switching between Sub-Funds” section on page 23 of the Explanatory Memorandum shall be deleted in its entirety and replaced by the following:

“Unitholders will have the right (subject to any suspension or limitation of the right of Unitholders to require the realisation of Units of any relevant class as described below) to switch all or part of their Units of any class relating to any Sub-Fund (the “Original Sub-Fund”) into Units of the same class type relating to another Sub-Fund or Sub-Funds (each a “New Sub-Fund”) by giving to the Trustee notice in writing of their requirements. Switching of Units from a class in the Sub-Fund to another class in the Sub-Fund or another class in another Sub-Fund or Sub-Funds is only permissible if approved by the Investment Manager.”

(c) The following should be added as the last paragraph under the “Switching between Sub-Funds” section on page 23 of the Explanatory Memorandum:

“Unitholders of Class M of the HK$ Money Fund should note that currently no other Sub-Fund offers the same class type.”

(d) The first paragraph on page 29 of the Explanatory Memorandum shall be deleted in its entirety and replaced by the following:

“There is no double charging of fees and charges. The investment by the Sub-Funds into other Sub-Fund(s) will not result in an overall increase in fees and charges payable to the Investment Manager and/or to its Connected Persons. There is no initial charge or realisation charge applicable with respect to the investment by a Sub-Fund into another Sub-Fund.”

1

(e) The tables under the “Fees, Charges and Expenses Payable by the Sub-Funds” section on page 31-33 shall be deleted and be replaced by the following:

Fee Payable To

Sub-Funds Maximum Level

Current Level(By Class)

A B M


Investment Manager

Lifecycle Funds (except Capital Stable Fund)



Nil N/A

Capital Stable Fund 2.0% per annum of net asset value


Nil N/A

Level 1 Funds 2.0% per annum of net asset value


Nil N/A




Nil N/A

Money Market Funds (except HK$ Money Fund)



Nil N/A

HK$ Money Fund 2.0% per annum of net asset value


Nil Nil

SaveEasy Funds 2.0% per annum of net asset value

0.75% per annum and will reduce to 0.5% per annum of net asset value fiveyearspriorto reaching the beginning (i.e. 1 January) of the applicable target year for the particular SaveEasy Fund2

Nil N/A




Nil N/A

Incentive Fee3

Investment Manager


Currently Waived Currently Waived

Currently Waived

Trustee Fee Trustee HK$ Money Fund 0.5% per annum of net asset value

Up to 0.125% per annum of net asset value


Nil





N/A





N/A

All other Sub-Funds (this is an aggregate fee, including the trustee fee charged by the underlying funds)


Up to 0.125% per annum of net asset value4


N/A

Please note that the fee table above does not take into account any rebates or waivers with respect to fees that may be offered to certain investors from time to time at the full discretion of the Trustee and/or Investment Manager, as the case may be.

2

(f) Footnote number (2) on page 31 of the Explanatory Memorandum shall be deleted in its entirety and replaced by the following:

“The current Investment Management Fee payable by the Lifecycle Funds, the SaveEasy Funds, the Level 1 Funds and the Global Bond HK$ Hedged Fund represents the total overall Investment Management Fee payable to the Investment Manager. The Investment Management Fee will only be charged at the Sub-Fund level (and not at its underlying invested Sub-Fund(s) level) so that there will be “no double charging” of Investment Management Fee, and therefore the investment by the Sub-Funds into other Sub-Fund(s) will not result in overall increase in fees and charges payable to the Investment Manager and/or to its Connected Persons.”

2. The Global Bond US$ Hedged Fund is terminated as of 14 September 2010.

(a) All references to the Global Bond US$ Hedged Fund shall be deleted accordingly in the Explanatory Memorandum.

(b) The second paragraph under section A “General Details of the Fund” on page 3 of the Explanatory Memorandum shall be deleted in its entirety and replaced by the following:

“The Fund is an umbrella fund and currently has 22 Sub-Funds. Units of a Sub-Fund may be issued in different classes. Each current Sub-Fund and its currency of denomination is listed below.”

(c) Under the column “Establishment Costs” on page 28 of the Explanatory Memorandum, the establishment costsfigureHKD409,833forGlobalBondUS$Hedged, theGlobalBondHK$HedgedandHongKongBond shall be changed to HKD402,708 for Global Bond HK$ Hedged and Hong Kong Bond only.

3. Due to changes to the board of directors of the Investment Manager, on page 4 of the Explanatory

Memorandum, in the second paragraph under Investment Manager, “Christopher Ryan” and “K C Lee” shall be deleted and “Kerry Ching” and “John Ford” added.

4. With effect from 18 October 2010, the FIL Investment Management (Australia) Limited will be appointed as InvestmentSub-ManagerforAsiaPacificEquityFundandAsiaPacificEquityFund(MPF).

The entire section headed “Investment Sub-Managers” on page 5 of the Explanatory Memorandum shall be deleted in its entirety and replaced by the following:

“Investment Sub-Managers

The Investment Manager has delegated the investment management functions of some of the Sub-Funds to other Investment Sub-Managers within the Fidelity Organisation as listed below.

Sub-Funds

European Equity FundGlobal Bond Fund

FIL Investments InternationalOakhill House, Hildenborough, Tonbridge, Kent, United Kingdom

Americas Equity Fund Pyramis Global Advisors, LLC.53 State Street, Boston, MA 02109, United States

Japanese Equity Fund FIL Investments (Japan) Limited20/F, Shiroyama JT Trust Tower3-1, Toranomon, 4-chome, Minato-ku, Tokyo 105-6019, Japan

AsiaPacificEquityFundAsiaPacificEquityFund(MPF)

FIL Investment Management (Australia) LimitedLevel 8, 167 Macquarie Street, Sydney NSW 2000, Australia

For Sub-Funds not listed above, the investment management continue to be exercised by the Investment Manager. The Investment Manager may, with respect to any Sub-Fund, also procure investment advice from companies within the Fidelity Organisation, while retaining the discretion to make investment decisions.”

3

5. The following additional risk factor disclosure shall be added to page 19 as the last paragraph under “Risk Factors”:

“Termination of Funds

In the event of the termination of a Sub-Fund, the assets of the Sub-Fund will be realised, the liabilities discharged and the net proceeds of realisation distributed to Unitholders in proportion to their holding of Units in that Sub-Fund, or Units of the Sub-Fund may be exchanged to Units of another sub-fund or sub-funds as decided by the Investment Manager and with the approval of the Trustee. It is possible that at the time of such realisation or distribution, certain investments held by the Sub-Fund may be worth less than the initial cost of such investments, resulting in a loss to the Unitholders. All normal operating expenses incurred up to the point of termination will be borne by the Sub-Fund. Investors will not bear any unamortised organisational expenses with regard to the Fund, a Sub-Fund or a class.”

Words and expressions defined in the Explanatory Memorandum shall have the same meanings in this Addendum. All other provisions contained in the Explanatory Memorandum, unless inconsistent with the provisions set forth in this Addendum, shall continue to apply.

September 2010

4

1

FIDELITY GLOBAL INVESTMENT FUND

Second Addendum to the Explanatory Memorandum dated September 2009 This Second Addendum forms part of, and should be read together with, the Explanatory Memorandum for Fidelity Global Investment Fund dated September 2009, as supplemented by the Addendum dated September 2010 (“First Addendum”). The following changes shall be made to the Explanatory Memorandum and shall take immediate effect unless otherwise disclosed below:-

1. The third paragraph under the preliminary section of the Explanatory Memorandum shall be deleted in its entirety and replaced by the following:-

“The Fund and the Sub-Funds have been authorised by the Securities and Futures Commission in Hong Kong (the “SFC”) and approved by the Mandatory Provident Fund Authority (the “MPF Authority”). The SFC’s authorisation and MPF Authority’s approval is not a recommendation or endorsement of the Fund and the Sub-Funds nor does it guarantee the commercial merits of the Fund and the Sub-Funds or its performance. It does not mean the Fund and the Sub-Funds are suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.”

2. The following new paragraph shall be inserted at the end of the preliminary section of the

Explanatory Memorandum:-

“Enquiries and Complaints For inquiries, out-of-court complaints and redress mechanism, please call the Fidelity Retirement Hotline on (852) 2629 2677, or alternatively, write to the Asia Pacific Business Compliance Team, address at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong. The Investment Manager will respond to any complaints and inquiries either by phone or in writing.”

3. The definition of “Investment Manager” under the section headed “Glossary” on page 1 shall be

deleted in its entirety and replaced by the following:

“Investment Manager” means FIL Investment Management (Hong Kong) Limited, with its current address at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong.

4. The address of the Investment Manager on page 4 of the Explanatory Memorandum shall be

deleted in its entirety and replaced by the following:-

“Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong.”

5. The address of the Auditor on page 6 of the Explanatory Memorandum shall be deleted in its

entirety and replaced by the following:-

“22nd Floor, Prince’s Building, Central, Hong Kong.”

6. Footnote number (1) on page 28 of the Explanatory Memorandum shall be deleted in its entirety

and replaced by the following:-

1 Establishment Costs Establishment costs for the Sub-Funds are apportioned between and borne by the Sub-Funds in proportion to their respective net asset values and will be charged over a period of five years starting at a date (the “Amortisation Date”) after the first anniversary of each particular Sub-Fund and before the fourth anniversary of such Sub-Fund, as determined by the Investment Manager. Prospective investors should note that such amortisation does not comply with International Financial Reporting Standards.

2

The date of establishment, establishment costs, apportionment and Amortisation Date with respect to the Sub-Funds is set out below:

Sub-Fund Date of

Establishment Establishment Costs Apportionment Amortisation

Date Global Bond HK$ Hedged Fund and Hong Kong Bond Fund

March 6, 2003 HKD402,708 in proportion to their respective net asset values as at December 31, 2003

March 1, 2007

World Bond Fund and Global Equity Fund

June 30, 2003 HKD125,499 in proportion to their respective net asset values as at December 31, 2003

June 1, 2007

Asia Pacific Equity Fund (MPF)

August 7, 2006 HKD42,093 N/A August 1, 2010

Fidelity SaveEasy 2020 Fund, Fidelity SaveEasy 2025 Fund, Fidelity SaveEasy 2030 Fund, Fidelity SaveEasy 2035 Fund and Fidelity SaveEasy 2040 Fund

October 27, 2008 HKD46,500 in proportion to their respective net asset values as at December 31, 2009

October 1, 2012

Save for the Sub-Funds set out above, the establishment costs of the other Sub-Funds have been amortized in full. The establishment costs of the Global Bond HK$ Hedged Fund and the Hong Kong Bond Fund (together with the Global Bond US$ Hedged Fund which has been terminated) were estimated to be HKD225,000. The actual establishment costs of the Global Bond HK$ Hedged Fund and the Hong Kong Bond Fund were HKD402,708. The actual establishment costs exceeded the estimated establishment costs primarily due to resulting legal fees being higher than expected. The establishment costs of the SaveEasy Funds were estimated to be HKD40,000. The actual establishment costs of the SaveEasy Funds were HKD46,500. The actual establishment costs exceeded the estimated establishment costs primarily due to fees paid to professional advisers being higher than expected.

7. With effect from 1 October 2011, the tables under the “Fees, Charges and Expenses Payable

by the Sub-Funds” section on pages 31-33 and as amended by the First Addendum shall be deleted and be replaced by the following:

Current Level

(By Class) Fee Payable To Sub-Funds Maximum

Level A B M

Lifecycle Funds (except Capital Stable Fund)



Nil N/A

Capital Stable Fund



Nil N/A

Level 1 Funds 2.0% per annum of net asset value


Nil N/A


Investment Manager




Nil N/A

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Current Level (By Class)

Fee Payable To Sub-Funds Maximum Level

A B M Money Market Funds (except HK$ Money Fund)



Nil N/A



Nil Nil

SaveEasy Funds 2.0% per annum of net asset value

0.75% per annum and will reduce to 0.5% per annum of net asset value five years prior to reaching the beginning (i.e. 1 January) of the applicable target year for the particular SaveEasy Fund2

Nil N/A




Nil N/A

Incentive Fee3

Investment Manager


Currently Waived

Currently Waived

Currently Waived




Nil





N/A





N/A

Trustee Fee Trustee

All other Sub-Funds (this is an aggregate fee, including the trustee fee charged by the underlying funds)




N/A

Please note that the fee table above does not take into account any rebates or waivers with respect to fees that may be offered to certain investors from time to time at the full discretion of the Trustee and/or Investment Manager, as the case may be.

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8. With effect from 1 October 2011, footnote number (4) on page 33 of the Explanatory

Memorandum shall be deleted in its entirety and replaced by the following:

“The current trustee fee payable by the Lifecycle Funds, the SaveEasy Funds and the Level 1 Funds is inclusive of the trustee fees of 0.08% per annum charged on the Money Market Funds and up to 0.10% per annum charged on the Market Investment Funds and the Global Bond Currency Hedged Funds in which the relevant Lifecycle Fund, SaveEasy Fund or Level 1 Fund invests. The maximum total trustee fee payable to the Trustee at both levels is 0.5% per annum of the net asset value of the relevant Lifecycle Fund, SaveEasy Fund or Level 1 Fund. With respect to the Asia Pacific Equity Fund (MPF) within the Level 1 Funds, the current trustee fee is inclusive of the trustee fee of up to 0.10% per annum charged on its underlying fund, the Asia Pacific Equity Fund. With respect to the Global Bond Currency Hedged Funds, the current trustee fee is inclusive of the trustee fee of up to 0.10% per annum charged on its underlying fund, the Global Bond Fund.”

9. The last sentence under the section headed “Trust Deed” on page 36 shall be deleted and be

replaced by the following:

“Unitholders and intending applicants are advised to consult the Trust Deed for further details.”

10. The paragraph under the section headed “Reports and Accounts” on page 37 shall be deleted and be replaced by the following: “Audited financial statements for the Fund will normally be sent to Unitholders within two months, and in any event not more than four months, after the end of each financial year of the Fund. The Investment Manager will also send unaudited semi-annual reports to Unitholders within two months after the end of the first six months in each financial year. Such reports will contain a statement of the value of each Sub-Fund and of the investments and cash comprised in each Sub-Fund as at the end of the relevant period. In addition, the annual financial statements will include the investment portfolio of the underlying fund of each Sub-Fund which is a feeder fund as at 31st December in each year. The audited financial statements and unaudited semi-annual reports will be available in English only.”

Words and expressions defined in the Explanatory Memorandum shall have the same meanings in this Second Addendum. All other provisions contained in the Explanatory Memorandum, unless inconsistent with the provisions set forth in this Second Addendum, shall continue to apply.

June 2011

FIDELITY GLOBAL INVESTMENT FUND

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