Annual Report and Financial Statements…under AIFMD remuneration disclosure for the financial...

Annual Reportand Financial Statements

For the year ended 31 October 2019

Fidelity Investment Funds IV

Fidelity Investment Funds IV Annual Report and Financial Statements for the year ended 31 October 2019

Contents

Director’s Report* 2

Statement of Authorised Corporate Director’s responsibilities 3

Certification of the Annual Report and Financial Statements by Directors 3

Report of the Depositary 4

Independent Auditors’ report 4

Authorised Corporate Director’s Report*, including the financial highlights and financial statements

Market Performance Review 6

Accounting policies of Fidelity Investment Funds IV and its sub-funds 7

Risk management policies of Fidelity Investment Funds IV and its sub-funds 9

Fidelity Allocator World Fund 11

Fidelity Multi Asset Allocator Adventurous Fund 20

Fidelity Multi Asset Allocator Defensive Fund 29

Fidelity Multi Asset Allocator Growth Fund 39

Fidelity Multi Asset Allocator Strategic Fund 48

Fidelity Multi Asset Balanced Income Fund 58

Fidelity Multi Asset Income & Growth Fund 71

Fidelity Multi Asset Income Fund 83

Fidelity Multi Asset Open Adventurous Fund 99

Fidelity Multi Asset Open Defensive Fund 109

Fidelity Multi Asset Open Growth Fund 119

Fidelity Multi Asset Open Strategic Fund 129

Fidelity Open World Fund 140

Fidelity Select 50 Balanced Fund 150

Portfolio Statements (unaudited)* 159

Further Information* 188

*These collectively comprise the Authorised Corporate Director’s (ACD) report.

1


Director’s Report

We are pleased to present the annual report and financial statements for Fidelity Investment Funds IV (the “Company”), covering the year to 31 October 2019.

Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities but is included for the purpose of illustration only. Investors should also note that the views expressed may no longer be current and may already have been acted upon by Fidelity.

Company and Status

The Company is an open-ended investment company with variable capital incorporated in England and Wales under registered number IC000712 and authorised by the Financial Conduct Authority (FCA) on 2 October 2008.

The Company is authorised as a non-UCITS retail scheme (NURS) and is an alternative investment fund (AIF) under the AIFM Directive. It is structured as an umbrella company comprising various funds, each of which is operated as a distinct fund, with their own portfolio of investments.

The funds in which shares are currently available are:

Fidelity Allocator World Fund

Fidelity Multi Asset Allocator Adventurous Fund

Fidelity Multi Asset Allocator Defensive Fund

Fidelity Multi Asset Allocator Growth Fund

Fidelity Multi Asset Allocator Strategic Fund

Fidelity Multi Asset Balanced Income Fund

Fidelity Multi Asset Income & Growth Fund

Fidelity Multi Asset Income Fund

Fidelity Multi Asset Open Adventurous Fund

Fidelity Multi Asset Open Defensive Fund

Fidelity Multi Asset Open Growth Fund

Fidelity Multi Asset Open Strategic Fund

Fidelity Open World Fund

Fidelity Select 50 Balanced Fund

In the future additional funds or new classes of shares within the existing funds may be launched by the ACD.

Each fund has the investment powers equivalent to those of a NURS as per the Prospectus.

Shareholders are not liable for the debts of the Company. A shareholder is not liable to make any further payment to the Company after they have paid the purchase price of the shares.

The Company is governed by the requirements of the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (“OEIC Regulations”) and the FCA’s Handbook of rules and guidance, specifically the Collective Investment Schemes sourcebook (COLL). As permitted by the COLL, the Company does not hold Annual General Meetings.

The Company has segregated liability status between funds. This means that the assets of a fund belong exclusively to that fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the Company, or any other fund.

Alternative Investment Fund Managers Directive (AIFMD) (Unaudited)

In compliance with the AIFMD, Fidelity Investment Services (UK) Limited (“FISL”) has been appointed the Company’s Alternative Investment Fund Manager (“AIFM”).

The AIFM operates under the terms of Fidelity’s Global Remuneration Policy Statement. This ensures that the AIFM complies with the requirements of the FCA’s Remuneration Code (SYSC19A), the AIFM Remuneration Code (SYSC19B) and the BIPRU Remuneration Code (SYSC19C).

FISL does not employ staff directly so the total remuneration to be disclosed under AIFMD remuneration disclosure for the financial performance year to 30 June 2019 is £nil.

The total remuneration paid to code staff supporting the AIFM (FISL) is €8.88m (£7.97m).

Code staff includes the following individuals:

(a) senior management (Registered Directors);

(b) risk takers (Senior Management team);

(c) staff engaged in control functions (Risk, Compliance, Audit, HR, Finance).

The funds use leverage to increase their exposure to the stock markets in line with the investment objectives. The AIFM has set maximum levels of leverage that are reasonable. It has implemented systems to calculate and monitor compliance against these limits and has ensured that the limits have been complied with at all times.

The maximum leverage limits are 300% for the Gross Method of calculating leverage and 200% for the Commitment Method.

There have been no changes to the maximum level of leverage that the Company may employ during the year.

At 31 October 2019, actual leverage for both the Gross Method and the Commitment Method for the funds are as follows:

Fund name Gross Commitment Method Method

Fidelity Allocator World Fund 101.34% 100.54%

Fidelity Multi Asset Allocator Adventurous Fund 106.88% 101.18%

Fidelity Multi Asset Allocator Defensive Fund 126.97% 115.66%

Fidelity Multi Asset Allocator Growth Fund 113.38% 105.94%

Fidelity Multi Asset Allocator Strategic Fund 120.81% 111.51%

Fidelity Multi Asset Balanced Income Fund 137.48% 98.66%

Fidelity Multi Asset Income & Growth Fund 139.30% 99.14%

Fidelity Multi Asset Income Fund 141.37% 102.68%

Fidelity Multi Asset Open Adventurous Fund 119.95% 106.75%

Fidelity Multi Asset Open Defensive Fund 113.96% 95.36%

Fidelity Multi Asset Open Growth Fund 119.88% 104.94%

Fidelity Multi Asset Open Strategic Fund 116.53% 100.77%

Fidelity Open World Fund 113.32% 107.45%

Fidelity Select 50 Balanced Fund 100.35% 97.95%

The Gross Method is a measure of overall total financial markets exposure and provides insight into the total amount at risk from market fluctuations.

The Commitment Method is a measure (after appropriate netting and hedging) of overall total financial markets exposure and provides insight into the total amount at risk from market fluctuations (after netting and hedging).

Holdings in other sub-funds within the same Company

No sub-fund held shares in any other sub-fund in the same Company throughout the year ended 31 October 2019.

2


Objectives

The broad aim of the Company is to provide access, both indirectly through investing in other collective investment schemes and directly, to the global research resources and stock picking skills of Fidelity’s investment management teams throughout the world.

Each fund provides the opportunity to benefit from investment in professionally managed pools of securities and other financial instruments in different geographic areas and currencies.

The investment objective and a review of the investment activities of each fund during the year under review are included within the Authorised Fund Manager Reviews.

Changes to the Prospectus

For the year ended 31 October 2019 the following significant changes were made to the Prospectus and Instrument of Incorporation:

• Fidelity Multi Asset Open Adventurous Fund and Fidelity Multi Asset Open Defensive Fund launched A Accumulation Shares on 12 December 2018.

• Fidelity Multi Asset Open Adventurous Fund, Fidelity Multi Asset Open Defensive Fund, Fidelity Multi Asset Open Growth Fund, Fidelity Multi Asset Open Strategic Fund and Fidelity Open World Fund Y Accumulation Shares converted into N Accumulation Shares on 16 January 2019.

• Fidelity Multi Asset Adventurous Fund merged into Fidelity Multi Asset Open Adventurous Fund on 9 February 2019 and was terminated on 30 April 2019 therefore no financial statements have been produced in accordance with the COLL.

• Fidelity Multi Asset Growth Fund merged into Fidelity Multi Asset Open Growth Fund on 9 February 2019 and was terminated on 30 April 2019 therefore no financial statements have been produced in accordance with the COLL.

• Fidelity Multi Asset Balanced Income Fund, Fidelity Multi Asset Income Fund and Fidelity Multi Asset Income & Growth Fund launched N Accumulation Shares on 13 February 2019.

• Fidelity WealthBuilder Fund merged into Fidelity Open World Fund 23 February 2019 and was terminated on 18 November 2019 therefore no financial statements have been produced in accordance with the COLL.

• Fidelity Multi Asset Balanced Income Fund, Fidelity Multi Asset Income Fund, Fidelity Multi Asset Income & Growth Fund Y Accumulation Shares converted into N Accumulation Shares on 1 March 2019.

• Fidelity Multi Asset Balance Income Fund, Fidelity Multi Asset Income Fund, Fidelity Multi Asset Income & Growth Fund Y Income Shares converted into N Income Shares on 1 March 2019.

• Fidelity Multi Asset Defensive Fund merged into Fidelity Multi Asset Open Defensive Fund on 9 March 2019 and was terminated on 11 November 2019 therefore no financial statements have been produced in accordance with the COLL.

• Fidelity Multi Asset Strategic Fund merged into Fidelity Multi Asset Open Strategic Fund on 9 March 2019 and was terminated on 21 November 2019 therefore no financial statements have been produced in accordance with the COLL.

• Fidelity Multi Asset Open Strategic Fund A Income Shares converted Into A Accumulation Shares on 25 April 2019.

• Fidelity Multi Asset Open Strategic Fund Y Income Shares converted into N Accumulation Shares on 25 April 2019.

• Fidelity Multi Asset Open Growth Fund, Fidelity Multi Asset Open Strategic Fund, Fidelity Multi Asset Income Fund, Fidelity Multi Asset Open Defensive Fund, Fidelity Multi Asset Open Adventurous Fund, Fidelity Open World Fund, Fidelity Multi Asset Balanced Income Fund and Fidelity Multi Asset Income & Growth Fund N Accumulation shares was renamed W Accumulation Shares on 4 September 2019.

• Fidelity Multi Asset Open Growth Fund, Fidelity Multi Asset Open Strategic Fund, Fidelity Multi Asset Open Defensive Fund, Fidelity Multi Asset Open Adventurous Fund and Fidelity Open World Fund Y Accumulation shares closed on 15 October 2019.

• Fidelity Multi Asset Allocator Strategic Fund MoneyBuilder Asset Allocator Accumulation Shares converted into Y Accumulation Shares and was renamed W Accumulation Shares on 22 October 2019.

Statement of Authorised Corporate Director’s (ACD) Responsibilities in relation to the Report and Financial Statements of the Company

The Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) and Collective Investment Schemes sourcebook (COLL) require the ACD to prepare financial statements for each annual and half-yearly accounting period which give a true and fair view of the financial position of the Company and of its net revenue and net capital gains or losses on the property of the Company for the year. In preparing the financial statements the ACD is required to:

• select suitable accounting policies and then apply them consistently

• comply with the requirements of the UK Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice for UK Authorised Funds issued by The Investment Management Association (IMA) in May 2014, the COLL, the Prospectus and the Instrument of Incorporation

• follow generally accepted accounting principles and applicable accounting standards

• keep proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements

• prepare the financial statements on the going concern basis unless it is inappropriate to presume the Company will continue in operation

• take reasonable steps for the prevention and detection of fraud or other irregularities.

Certification of the Annual Report and Financial Statements by Directors of the ACD

In accordance with the requirements of the COLL as issued and amended by the Financial Conduct Authority, the report and financial statements are approved on behalf of the Directors of FIL Investment Services (UK) Limited, the ACD.

John Clougherty Anthony LanserDirector Director

FIL Investment Services (UK) Limited 5 February 2020

3


Report of the Depositary to the Shareholders of the Fidelity Investment Funds IV

The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority’s Collective Investment Schemes sourcebook, and from 22 July 2014 the Investment Funds Sourcebook, the Open-Ended Investment Companies Regulations 2001 (S1 2001/1228), as amended, the Financial Services and Markets Act 2000, as amended, (together “the Regulations”), the Company’s Instrument of Incorporation and Prospectus (together “the Scheme documents”) as detailed below.

The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of the Company and its investors.

The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record of all other assets of the Company in accordance with the Regulations.

The Depositary must ensure that:

• the Company’s cash flows are properly monitored, and that cash of the Company is booked into the cash accounts in accordance with the regulations;

• the sale, issue, repurchase, redemption and cancellation of shares are carried out in accordance with the regulations;

• the value of shares of the Company are calculated in accordance with regulations;

• any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual time limits;

• the Company’s income is applied in accordance with the regulations; and

• the instructions of the Alternative Investment Fund Manager (“the AIFM” or “the Manager”) are carried out (unless they conflict with the regulations).

The Depositary also has a duty to take reasonable care to ensure that the Company is managed in accordance with the Scheme documents and the Regulations in relation to the investment and borrowing powers applicable to the Company.

Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Company, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Company, acting through the AIFM:

(i) has carried out the issue, sale, redemption and cancellation and calculation of the price of the Company’s shares and the application of the Company’s income in accordance with the Regulations and the Scheme documents of the Company; and

(ii) has observed the investment and borrowing powers and restrictions applicable to the Company in accordance with the Regulations and Scheme documents of the Company.

J.P. Morgan Europe LimitedLondon 5 February 2020

Independent Auditors’ report to the Shareholders of Fidelity Investment Funds IV

Report on the audit of the financial statements

Opinion

In our opinion, the financial statements of Fidelity Investment Funds IV (the “Company”):

• give a true and fair view of the financial position of the Company and each of the sub-funds as at 31 October 2019 and of the net revenue/(expenses) and the net capital gains on the scheme property of the Company and each of the sub-funds for the year then ended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law), the Statement of Recommended Practice for UK Authorised Funds, the Collective Investment Schemes sourcebook and the Instrument of Incorporation.

Fidelity Investment Funds IV is an Open-Ended Investment Company (“OEIC”) with 14 sub-funds. The financial statements of the Company comprise the financial statements of each of the sub-funds. We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Balance Sheets as at 31 October 2019; the Statements of Total Return and the Statements of Change in Net Assets Attributable to Shareholders for the year then ended; the Distribution Statements; the Accounting Policies of Fidelity Investment Funds IV and its sub-funds; and the Notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

4


Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when:

• the Authorised Corporate Director’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Authorised Corporate Director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company’s or any of the sub-funds’ ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s or the sub-fund’s ability to continue as a going concern. For example, the terms of the United Kingdom’s withdrawal from the European Union are not clear, and it is difficult to evaluate all of the potential implications on the company’s trade, customers, suppliers and the wider economy.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Authorised Corporate Director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Authorised Corporate Director’s Report

In our opinion, the information given in the Authorised Corporate Director’s Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Responsibilities for the financial statements and the audit

Responsibilities of the Authorised Corporate Director for the financial statements

As explained more fully in the Statement of Authorised Corporate Director’s Responsibilities in relation to the Report and Financial Statements of the Company set out on page 3, the Authorised Corporate Director is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Authorised Corporate Director is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Authorised Corporate Director is responsible for assessing the Company’s and each of the sub-fund’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Authorised Corporate Director either intends to wind up or terminate the Company or individual sub-fund, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the Company’s shareholders as a body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook as required by paragraph 67(2) of the Open-Ended Investment Companies Regulations 2001 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

OTHER REQUIRED REPORTING

Opinion on matter required by the Collective Investment Schemes sourcebook

In our opinion, we have obtained all the information and explanations we consider necessary for the purposes of the audit.

Collective Investment Schemes sourcebook exception reporting

Under the Collective Investment Schemes sourcebook, we are also required to report to you if, in our opinion:

• proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records.

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLPChartered Accountants and Statutory Auditors London 5 February 2020

5


Performance Overview - year ended 31 October 2019

Global equities gained over the period, supported by the accommodative policy stance of major central banks and encouraging corporate results. However, global economic concerns, trade issues, uncertainty in Europe and tensions in the Middle East kept markets volatile. Notably, after raising interest rates nine times in the past four years, the US Federal Reserve changed course and implemented three rate cuts in 2019 amid concerns over slowing global growth. The European Central Bank unveiled a stimulus package in September to support growth and inflation, while the Bank of Japan indicated its readiness to introduce additional stimulus measures if needed. China also introduced measures to support its economy. Meanwhile, the UK’s exit from the European Union (EU) has been delayed until 31 January 2020, after UK politicians failed to agree on exit deals. Against this global backdrop, key equity markets generated positive performance, with Pacific ex Japan, US and Europe ex UK equities rising significantly. Emerging market equities also gained, but underperformed developed markets. Returns in sterling terms were undermined by its appreciation against the US dollar and euro, but supported by its depreciation against the yen.

Global property markets generated positive returns. In the US, low mortgage rates continued to drive demand for residential property. In the eurozone, residential equities in Germany were strong in the first half of the period, but came under pressure in the second half after the government proposed a five-year rent-freeze in Berlin. The property market in Spain remained healthy, supported by relatively low mortgage rates. UK property stocks grew at a modest pace. Within Asia, real estate stocks in Hong Kong fell in the second half, but ended the year in positive territory. Investors were concerned over weaker residential demand. The real estate market in Japan was buoyed by ultra-low interest rates and increased foreign investments ahead of the 2020 Tokyo Olympics.

Commodities declined and underperformed both equities and property stocks. Energy stocks fell early in the period, after the US gave unexpectedly generous sanction waivers to Iran’s biggest oil buyers. This, coupled with rising US oil production, led to concerns about global oversupply at a time when weak economic data raised concerns about demand. Oil prices recovered some ground later in the period, amid tightening supply and fewer concerns about the global economy. However, ongoing US-China trade tensions fanned fears that slowing economic growth could negatively impact demand for energy. Industrial metals prices were initially negatively impacted by trade-related issues, but were later supported by optimism about a US-China trade deal, a fall in inventories and supply disruptions. Gold prices advanced as investors sought safe haven assets amid weak economic data.

Fixed income markets posted positive returns over a period that was characterised by a changing monetary policy regime as investors grew increasingly concerned over the health of the global economy. Government bond yields slumped to record lows, many of them below zero, as central banks across the world adopted a cautious monetary policy stance, reflecting a combination of weak economic data, continued uncertainty over US-China trade negotiations and weak domestic inflation. Consequently, the US Fed cut interest rates thrice in 2019. The European Central Bank (ECB) also lowered its deposit rate by 0.1 percentage points to a new all-time low of -0.5% and revamped its quantitative easing programme. Consequently, the 10-year US Treasury yield dropped to its lowest level since 2016. Ten-year German bonds also touched record lows of -0.7%, as global recession worries intensified. In the UK, 10-year government bond (Gilt) yields fell below 0.5%, dipping below its previous August 2016 trough, which came after the Bank of England slashed interest rates to an all-time low following the UK’s decision to leave the EU. In Japan, 10-year bond yields slipped to the lowest level since July 2016 and entered into negative territory. The Bank of Japan decided to keep its key short-term interest rate unchanged and shifted its focus on steepening its yield curve. In credit markets, corporate bond spreads tightened amid investors’ search for yields. Emerging markets also posted positive returns over the period, with local currency bonds outperforming hard currency bonds.

Market Performance Review

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Source: Refinitiv DataStream, Total Returns, GBP, MSCI World, BofA ML Global Broad Market Index, Bloomberg Commodity Index, FTSE EPRA/NAREIT Developed, 31.10.2018 - 31.10.2019

Source: Refinitiv DataStream, Total Returns in GBP rebased to 100, MSCI World, BofA ML Global Broad Market Index, Bloomberg Commodity Index, FTSE EPRA/NAREIT Developed, 31.10.2018 - 31.10.2019

Market Review12-m to October 2019




Global property markets generated positive returns. In the US, low mortgage rates continued to drive demand for residential property. In the eurozone, residential equities in Germany were strong in the

Market Review12-m to October 2019




Global property markets generated positive returns. In the US, low mortgage rates continued to drive demand for residential property. In the eurozone, residential equities in Germany were strong in the


Accounting Policies of Fidelity Investment Funds IV and its sub-funds

Accounting policies

a) Basis of preparation - The financial statements of the sub-funds have been prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss except as outlined below. The financial statements are also prepared in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP) and the Statement of Recommended Practice (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA) in May 2014.

b) Recognition of revenue - Dividends on quoted equities are recognised when the security is quoted ex-dividend. Interest from debt securities are accounted for on an effective yield basis. Effective yield recognises any discount or premium on the purchase of an investment as revenue over its remaining life. Distributions on underlying funds are recognised when the shares/units are quoted ex-distribution. Other revenue is accounted for on an accruals basis. Underwriting commission is recognised when the issue takes place. Special dividends are treated as revenue or capital depending on the facts of each particular case.

c) Treatment of expenses:

• All expenses are accounted for on an accruals basis.

• Annual charges - In accordance with the COLL and as agreed with the Depositary, charges and expenses for the fund may be treated as capital charges, which will enhance income returns but may constrain capital growth. Where the management fees are ultimately borne by the capital of an underlying fund, the rebates are credited to capital for the purpose of calculating the distribution.

• Other expenses - All other expenses are chargeable against revenue for distribution purposes other than those relating to purchases and sales of investments which are excluded for the purpose of calculating the distribution.

• Underlying fund charges - The sub-fund may invest in other collective investment schemes, various other charges and expenses may be incurred indirectly by the fund at the level of the underlying funds. Where any fund invests in other collective investment schemes managed by independent fund managers, the ACD will seek to negotiate a high level of rebate of the underlying funds management charges, so as to minimise the effect of charging at both the fund and underlying fund levels. Where any fund invests in other collective investment schemes managed by the ACD or an associate of the ACD, to avoid a double management charge in respect of the same portfolio, the full amounts of the charges which the ACD and/or any associated company of the ACD receives for managing the investments of the underlying fund, will be credited to the fund, to the extent that such charges are attributable to investment in the underlying funds by the fund.

d) Allocation to multiple share classes – All charges and expenses which are directly attributable to the fund will be charged to the class or classes within the fund pro rata to the net asset value of the fund attributable to each class, where appropriate. Any charges and expenses not attributable to any one fund will normally be allocated by the ACD to all funds (and their classes) pro rata to the net asset values of the funds (and their classes), although the ACD has the discretion to allocate such charges and expenses in a different manner which it considers fair to shareholders generally.

e) Distribution policy - The distribution policy of the individual funds is to distribute or accumulate all available revenue after deduction of expenses properly chargeable against revenue.

f) Taxation - Provision is made for corporation tax at the current rate on the excess of taxable revenue over allowable expenses, with relief for overseas tax taken where appropriate. Deferred tax is provided using the liability method on all timing differences arising from the different treatment of items for taxation and accounting purposes. Deferred tax assets are recognised to the extent that they are considered recoverable.

g) Basis of valuation of investments - Investments in securities and underlying funds have been valued using the market price at the noon valuation point on the last business day of the accounting period. Market value is defined by the SORP as fair value which in an active market is the value of long positions at the quoted bid price and fair value of short positions is the quoted offer price. Holdings in other collective investment schemes are valued at bid price for dual priced funds and at single price for single priced funds. It is the responsibility of the Fair Value Committee (FVC) to ensure pricing sources and methodologies used to value securities are appropriate as delegated by the ACD. Where there is no price source from an active market for an investment, the FVC will assess information available from internal and external sources in order to arrive at a fair value. In seeking to value such securities, the FVC will gather valuation related information from multiple internal and external sources and may apply judgement in determining the fair value. These sources include historic trading and pricing information (including grey market trades), the views of internal security analysts, company specific news and fundamental data as well as information relating to comparable companies within related industries and sectors. The FVC policies and procedures remain under continuous review by the ACD.

Fair value adjustments may be implemented to protect the interests of the Shareholder Funds against market timing practices. Accordingly, if a fund invests in markets that are closed for business at the time the fund is valued, the ACD may, by derogation from the provisions above, allow for the securities included in a particular portfolio to be adjusted to reflect more accurately the fair value of the fund’s investments at the point of valuation.

Fair value market adjustments were applied to investments with the following effect on the fund midday prices as at 31 October 2019:

• US Market -0.30% (2018: 0.77%)

• Japan -0.78% (2018:nil)

• Hong Kong & China -0.66% (2018:nil)

h) The market value disclosed alongside each investment in the Portfolio Statement represents the fair value. Each derivative position is shown as a separate investment. The Portfolio Statement includes for each investment the percentage of the net assets. This may result in the geographical or sector allocations being different to the comparative index. The largest holdings disclosure is consistent with this basis, and therefore derivative positions may not appear in the list of largest holdings. A copy of the Fund Factsheet report disclosing the sector/industry exposure, country exposure and top holdings including derivatives exposures may be obtained upon request from the ACD alternatively, please go to http://www.fidelity.co.uk.

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Accounting Policies of Fidelity Investment Funds IV and its sub-funds

i) Derivatives - Where appropriate, certain permitted transactions such as derivatives are used. Where such transactions are used to protect or enhance revenue, the revenue and expenses derived from them are included in Revenue or Expenses in the Statement of Total Return. Where such transactions are used to protect or enhance capital, the gains or losses are included in Net capital gains/(losses) in the Statement of Total Return. Any positions on such transactions open at the year end are reflected in the Balance Sheet at their market value. All gains and losses in the value of futures contracts, interest rates swaps, credit default swaps, equity forwards, contracts for difference, equity linked notes and options are disclosed in the Statement of Total Return under Net capital gains/(losses).

For futures, equity forwards and contracts for difference, the dividend element is included in revenue along with the associated finance costs of these contracts. Ongoing premia on credit default swaps are charged or credited to revenue/expenses on an accruals basis, depending on whether protection is bought or sold. Revenue receivable/payable on interest rate swaps is included in revenue on an accruals basis. The premium received on covered call options is taken to revenue over the life of the contract provided the strike price of the option is greater than the price of the underlying security at the time of trade.

Where forward foreign exchange contracts have been entered into to hedge the underlying funds and securities against currency exchange rate movements, any subsequent hedge gain or loss is taken to capital.

j) Exchange rates - Assets and liabilities denominated in foreign currencies have been translated into sterling at the rate of exchange ruling at the noon valuation point on the last business day of the accounting period. Revenue items denominated in foreign currency are translated into sterling at exchange rates ruling at the date of the transaction. Differences on exchange are included within the Statement of Total Return.

k) Dilution levy - In certain circumstances, the value of the property of a Fund may be reduced as a result of costs incurred in dealings in the Fund’s investments, including stamp duty or stamp duty reserve tax, or through dealing in those investments at prices other than the mid-market price. In order to prevent this effect, known as “dilution”, and the consequent potential adverse effect on remaining Shareholders, the ACD has the power to charge a “dilution levy” when Shares are bought or sold.

In the year to 31 October 2019 no dilution levy was paid to the Company (2018: none).

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9

Risk management policies of Fidelity Investment Funds IV and its sub-funds

Risk framework

The Board of Directors of FIL Limited, the ultimate parent company of the ACD, has established a Risk Policy, a Risk Appetite statement and a number of other risk related policies for adoption throughout the Fidelity International group of companies, including the ACD. There is a clearly defined structure operating within a corporate governance and management framework that is designed to address the related business risks, including those arising from financial instruments. Risk management policies and procedures are established by the Board and updated according to market, industry and government initiatives and regulatory developments. The Board monitors that a robust system of internal control exists to ensure compliance with rules, regulations and policies. It is the Board of Directors of the ACD that is ultimately responsible for monitoring risk but day to day management of the risk process has been delegated to other areas as appropriate.

Fidelity operates a ‘multiple lines of defence’ approach to risk management; also, the risk control processes are comprehensive, multi-layered, both quantitative and qualitative and do not rely on any one risk measure or system. The primary responsibility for financial instrument risk management rests with the portfolio manager of each fund who is overseen by the relevant Chief Investment Officer (CIO). On a regular basis each fund is formally reviewed in a meeting involving the portfolio manager, the relevant CIO, Investment Management Portfolio Analytics and others; the review covers multiple aspects of the fund’s profile including trading activity, turnover, performance, structure, style profile, the use of derivatives and other relevant subjects such as yield curve exposure and sector and credit rating positioning in the case of Fixed Income funds. In addition to this review there is a formal Investment Risk Oversight Committee (IROC), chaired by the head of the Investment Management Risk function, whose remit includes review of various risk and performance measures, liquidity and other investment risks.

Furthermore, there is a Derivative Risk Committee that focuses on all aspects of risk arising from the use of derivative instruments. The global exposure relating to derivatives held in a fund may not exceed the net value of that fund. Global exposure calculations for all funds – unless otherwise indicated - use the commitment approach as part of their risk management process, measure and limits. The funds in this umbrella OEIC are governed by non-UCITS rules. The rules and prospectus limits are monitored and reported on by an independent Investment Compliance function.

Risk factors

The main risks arising from financial instruments are market price, foreign currency, interest rate, liquidity, counterparty and credit risks. There are policies in place to ensure each of these risks are managed in an appropriate manner.

Market price risk

Market price risk arises from the uncertainty about future price movements on financial instruments held. It represents the potential loss each fund might suffer through holding market positions in the face of adverse price movements. The value of investments (including derivatives) is not fixed and may go down as well as up. This may be as a result of a specific factor affecting the value of an individual investment or may be caused by general market factors. Some of the funds may invest in securities of countries experiencing rapid economic growth. Investors should appreciate that these securities may be more volatile than securities in more developed markets with the result that there may be greater risk of price fluctuation and the suspension of redemptions in such funds compared with funds in more mature markets. This volatility may stem from political and economic factors, and be exacerbated by legal, trading liquidity, settlement, currency and other factors. Some emerging market countries may have relatively prosperous economies but may be sensitive to world commodity prices or other factors. Where derivatives are used for either efficient management of the fund or for investment purposes, market price risk will exist as for any other non-derivative investments. The volatility of option prices could be greater than for other derivatives.

Foreign currency risk

The fund’s Total Returns and Balance Sheets can be significantly affected by foreign exchange movements if the fund’s assets and revenue are denominated in currencies other than the fund’s base currency. Three principal areas where foreign currency risk could impact each fund have been identified as:

• Movements in rates affecting the value of investments

• Movements in rates affecting short term timing differences

• Movements in rates affecting the revenue received

The funds may hold forward foreign exchange contracts to hedge the fund’s base currency. The funds may be exposed to short term exchange rate movements, for example between the date when an investment is bought or sold and the date when settlement of the transaction occurs. The ACD may seek to manage exposure to currency movements by using forward and spot foreign exchange contracts. Revenue received in other currencies is converted into base currency on or near the date of receipt.

Interest rate risk

Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a fixed rate debt security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities can be more sensitive to interest rate changes. The fixed rate component of an interest rate swap will have a similar interest rate risk profile to that of a fixed rate debt security where the currency, fixed rate and maturity are the same.

Liquidity risk

The fund’s assets comprise mainly realisable securities which can be readily sold or redeemed in normal market conditions. The fund’s main liability is the redemption of any shares that investors wish to sell. In general, the ACD manages the cash to ensure it can meet its liabilities. Assets from a fund may need to be sold if insufficient cash is available to finance such redemptions. The fund’s holdings are reviewed on a regular basis, with particular emphasis on the market capitalisation of the issuer (securities issued by larger capitalised companies generally have greater liquidity) and the number of days it would take to trade out of a given security position or percentage of the fund as a whole (determined by reference to available market trading volumes). Where investments cannot be realised in time to meet any potential liability, the fund may borrow up to 10% of its value to ensure settlement.


Risk management policies of Fidelity Investment Funds IV and its sub-funds

Counterparty risk

All security transactions and derivatives are transacted with brokers and carry the risk that the counterparty to a transaction may not meet their financial obligations. All counterparties for any type of trading are assessed by an independent Credit Research and Analysis function and approved for use by any Fidelity company, including the ACD. Exposures to counterparties are monitored and reported frequently. Margin on exchange-traded derivatives mitigates counterparty risk exposure and in the case of over-the-counter derivatives, collateral is transferred to reduce counterparty risk exposure in accordance with the terms outlined in market standard (ISDA) derivative legal contracts.

Credit risk

Investments may be adversely affected if any of the institutions with which money is deposited suffers insolvency or other financial difficulties. The process outlined above under ‘Counterparty risk’ is used to review, approve and report on exposures to institutions with which money is deposited.

Credit risk also arises from the uncertainty about the payment of interest and the repayment of principal bond investments. Default risk is based on the issuer’s ability to make interest payments and to repay the loan at maturity. Due to the higher possibility of default, an investment in corporate bonds is generally less secure than an investment in government bonds. Default risk may therefore vary between different government issuers as well as between different corporate issuers. In certain cases, government bonds may have higher probability of default than specific corporate issuers. The funds may hold credit default swaps to manage their credit risk profile. Credit default swaps are transacted to take advantage of expected movements in credit spreads on either individual securities or baskets of securities.

Fair values of financial assets and financial liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the balance sheet, and their fair value. The numerical information in respect of financial instruments disclosure is provided in the financial statements for the individual funds.

10


11

Fund Manager’s Review

Investment Objective and PolicyThe fund aims to increase the value of your investment over a period of 5 years or more through global exposure to higher risk assets.

The fund will invest at least 70% into funds that use an ‘index tracking’ (also known as 'passive') investment management approach (these may include funds managed by Fidelity), with the aim of pursuing a lower cost investment approach. The fund can also invest directly into transferable securities, other collective investment schemes, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.

Through its investments, the fund aims to maintain an allocation of 100% in higher-risk assets (such as global equities, global emerging market equities, global smaller companies and global property securities). This allocation, as well as the breakdown of higher-risk assets, may change according to prevailing market conditions and the efficient management of the portfolio.

The fund is actively managed. The Investment Manager will, when selecting investments for the fund and for the purposes of monitoring risk, consider a custom blend of indices*. The Investment Manager has a limited degree of freedom relative to the blended index and may invest outside the blended index, to take advantage of investment opportunities. This means the fund’s investments and therefore performance may vary from, but is unlikely to be significantly different to, the index.

*70% MSCI World, 10% FTSE EPRA/ NAREIT, 10% MSCI Emerging Markets, 10% MSCI World small cap.

Performance and Portfolio ActivityThe fund delivered positive returns over the period. The allocation to growth assets, including global large and mid-cap stocks supported returns, benefiting from the continued support from central banks and by encouraging corporate results. Holdings in emerging market equities, small-cap equities and global real estate investment trusts (REIT) also added value. While all regional equity holdings enhanced gains, the allocation to the US was the most rewarding. The fund is managed to provide diversified and efficient exposure to global markets. It has a purely static strategic asset allocation – 100% of the portfolio is invested in higher risk growth assets. Among the underlying strategies, the holding in E-mini Russell 2000 Index futures was sold and the exposure to L&G Global Small Cap Equity Index Fund was increased.

OutlookThe fund’s asset allocation is not impacted by the market outlook. The fund is managed to provide diversified and efficient exposure to global markets and is rebalanced periodically to keep asset allocation in line with its long-term strategic asset allocation.

Chris Forgan & Nick PetersFund Managers

31 October 2019

Risk and Reward Indicator

XXX SRRI

Y Accumulation Shares 5

1 3 4 5 6 72

Lower risk Higher risk

Typically lower rewards Typically higher rewards

The risk category was calculated using historical volatility data, based upon the methods set by European Union rules. Volatility is influenced by changes in the stock market prices, currencies and interest rates which can be affected unpredictably by diverse factors including political and economic events.

• The risk category was calculated using historical performance data.

• The risk category may not be a reliable indication of the future risk profile of the fund, is not guaranteed and may change over time.

• The lowest category does not mean a "risk free" investment.

• The risk and reward profile is classified by the level of historical fluctuation of the Net Asset Values of the share class, and within this classification, categories 1-2 indicate a low level of historical fluctuations, 3-5 a medium level and 6-7 a high level.

• The value of your investment may fall as well as rise and you may get back less than you originally invested.

• The fund may invest in instruments denominated in currencies other than the fund base currency. Changes in currency exchange rates can therefore affect the value of your investment.

• Currency hedging may be used which aims to reduce the effect of such changes. However, the effects may not be completely eliminated to the degree expected.

• The use of derivatives may result in “leverage” by which we mean a level of exposure which could expose the fund to the potential of greater gains or losses than would otherwise be the case.


12

Comparative Performance Table

Y Accumulation Shares

Change in net assets (pence per share) 2019 2018 2017

Opening net asset value per share 185.03 181.62 160.94

Return before operating charges* 21.97 3.87 21.16

Operating charges (0.49) (0.46) (0.48)

Return after operating charges* 21.48 3.41 20.68

Distributions (3.04) (2.23) (1.77)

Retained distributions on accumulation shares 3.04 2.23 1.77

Closing net asset value per share 206.51 185.03 181.62

*after direct transaction costs of 0.01 0.03 0.08

Performance

Return after charges 11.6% 1.9% 12.9%

Other information

Closing net asset value (£'000) 52,587 39,813 3,843

Closing number of shares 25,464,639 21,517,392 2,116,055

Operating charges 0.25% 0.25% 0.28%

Direct transaction costs 0% 0.02% 0.05%

Prices (pence per share)

Highest share price 215.30 198.90 182.10

Lowest share price 172.60 169.80 153.80


13

Statement of Total Return

for the year ended 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 4,167 298

Revenue 5 818 501

Expenses 6 (112) (91)

Interest payable and similar charges 8 (1) -

Net revenue/(expense) before taxation 705 410

Taxation 7 (19) (11)

Net revenue/(expense) after taxation 686 399

Total return before distributions 4,853 697

Distributions 8 (686) (396)

Change in net assets attributable to shareholders from investment activities 4,167 301

Statement of Change in Net Assets Attributable to Shareholders


[BLANK] Note £'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 39,813 31,249

Movement due to sales and repurchases of shares

Amounts receivable on issue of shares 12,274 10,278

Amounts payable on cancellation of shares (4,442) (2,494)

7,832 7,784

Change in net assets attributable to shareholders from investment activities (see above) 4,167 301

Retained distribution on accumulation shares 8 775 479

Closing net assets attributable to shareholders 52,587 39,813

Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets

Investments 52,303 38,629

Current assets:

Debtors 9 94 85

Cash equivalents 1 939

Cash and bank balances 10 233 355

Total other assets 328 1,379

Total assets 52,631 40,008

Liabilities:

Investment liabilities (1) (122)

Creditors

Other creditors 11 (43) (73)

Total other liabilities (43) (73)

Total liabilities (44) (195)

Net assets attributable to shareholders 52,587 39,813


14

Notes to the Financial Statements

1 Accounting policies

The fund’s financial statements have been prepared in accordance with the Company Accounting Polices and Risk Management sections.

2 Equalisation

Equalisation applies only to shares purchased during the distribution year (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is credited to the holders of these shares as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of shares for Capital Gains Tax purposes.

3 Contingent liabilities

At the year end there are no contingent liabilities or commitments (2018: nil).

4 Net capital gains/(losses)

31/10/19 31/10/18£'000 £'000

Gains/(losses) on non-derivative securities+ 4,116 436

Gains/(losses) on derivative contracts+ 26 (191)

Gains/(losses) on forward currency contracts+ (2) 40

Other currency gains/(losses) - 1

ACD fee rebate/waiver to capital 27 12

Net capital gains/(losses) 4,167 298

+ These comprise:

Realised gains/(losses)++ 441 3,035

Unrealised gains/(losses) 3,699 (2,750)

Total 4,140 285

++ Where realised gains/(losses) include gains/losses arising in previous periods, a corresponding loss/gain is included in unrealised gains/(losses).

5 Revenue

31/10/19 31/10/18£'000 £'000

UK dividend distributions 508 293

Unfranked UK dividend distributions 143 37

Overseas dividend distributions 132 124

Interest distributions - 13

Derivative revenue - 7

Management fee rebate to income 3 -

ACD fee rebate/waiver to income 32 26

Bank interest - 1

Total revenue 818 501

6 Expenses

31/10/19 31/10/18£'000 £'000

Payable to the ACD, associates of the ACD, and agents of either of them:

Investment management fees 112 91

112 91

Total expenses* 112 91

*The ACD is responsible for payment of all charges and expenses of the fund out of its investment management fees including audit fees amounting to £10,000 (including VAT) (2018: £10,000).

7 Taxation

31/10/19 31/10/18£'000 £'000

a) Analysis of charge/(credit) for the year

UK corporation tax 8 -

Overseas taxation 19 7

Double taxation relief (8) -

Prior year adjustment - 4

Total current taxation 19 11


15


b) Factors affecting tax charge/(credit) for the year


Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 141 82Effects of:

ACD fee waiver to capital 5 2


Increase/(decrease) in unutilised management expenses (10) -

Overseas tax expensed - (1)



Revenue not included for tax purposes (128) (83)

Current tax charge/(credit) 19 11

Open ended investment companies are exempt from UK tax on capital gains.

8 Finance costs

31/10/19 31/10/18£'000 £'000

DistributionsThe distribution takes account of revenue received on the issue of shares and revenue deducted on cancellation of shares.


Final 775 479

Add: Revenue deducted on cancellation of shares 38 16

Deduct: Revenue received on issue of shares (127) (99)

Net distributions for the year 686 396

Interest/other

Derivative expense 1 -

Total finance costs 687 396

Reconciliation of Net revenue after taxation to Net distribution for the year:

Net revenue after taxation for the year, per the Statement of Total Return 686 399

Add back (revenue)/expenses transferred to capital:

Equalisation on conversions - (3)

686 396

Details of the distribution per share is set out in the Distribution Statement.

9 Debtors

31/10/19 31/10/18£'000 £'000

Amounts receivable for issue of shares 76 54

Sales awaiting settlement - 24

ACD fee rebate/waiver recoverable 6 4

UK income tax recoverable 12 3

Total debtors 94 85

10 Cash and bank balances

31/10/19 31/10/18£'000 £'000

Amounts held at futures clearing houses and brokers - 212

Cash and bank balances 233 143

Total cash and bank balances 233 355


16


11 Other creditors

31/10/19 31/10/18£'000 £'000

Amounts payable for cancellation of shares - 34

Purchases awaiting settlement 32 31

Accrued expenses 11 8

Total other creditors 43 73

12 Financial instruments exposure

Currency exposure

A portion of the financial assets of the fund are denominated in currencies other than UK Pound, which is the fund's base currency, with the effect that the Balance Sheet and total return can be affected by currency movements.The currency exposure of the fund was:

Non-monetary exposures Monetary exposures Monetary exposures Total exposureCurrency Investments^ Cash balances Debtors/(Creditors)31/10/19 £'000 £'000 £'000 £'000

Euro - 6 - 6

Japanese Yen - 4 - 4

Swedish Krona - 1 - 1

UK Pound 50,362 222 51 50,635

US Dollar 1,941 - - 1,941

Total 52,303 233 51 52,587

31/10/18 £'000 £'000 £'000 £'000

Canadian Dollar (1) - - (1)

Euro (1) 6 - 5

Japanese Yen (2) 4 - 2

UK Pound 38,170 345 12 38,527

US Dollar 1,280 - - 1,280

Total 39,446 355 12 39,813

^ includes cash equivalents where appropriate.The currency disclosure provided is based on the trading currency of the investments and foreign currency contracts. For further information on risk disclosures refer to the Risk management policies section.

Interest rate risk profile

The fund invests in equity, fixed interest funds, cash/money market funds and has bank balances and/or amounts held at futures clearing houses and brokers. At the year end, there is no significant interest rate risk on the fund.

Fair value of financial assets and financial liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value.

Market value sensitivity analysis

Currency risk

A rise or fall of 1% in non UK Pound currencies is likely to result in a 0.79% rise or fall in the fund's market value (2018: 0.81%).

Other price risk

Fluctuations in securities and underlying funds prices will directly be reflected in the fund's market value.

Futures exposure

At the year end the fund holds no derivatives that could impact it significantly (2018: same).


17


13 Portfolio transaction costs

31/10/19 Purchases Commissions TaxesAnalysis of total purchases costs

£'000 £'000 % £'000 %

Equity 3,194 1 0.04 - -

Mutual Fund 14,010 - - - -

Total 17,204 1 -

Total including transaction costs 17,205

Sales Commissions TaxesAnalysis of total sales costs

£'000 £'000 % £'000 %

Equity 1,656 1 0.05 - -

Mutual Fund 5,959 - - - -

Total 7,615 1 -


Total as a percentage of average net assets*

0.00 %

0.00 %


£'000 £'000 % £'000 %

Equity 6,716 4 0.06 - -

Mutual Fund 26,144 - - - -

Corporate actions 1 - - - -

Derivative - 2 - - -

Total 32,861 6 -



£'000 £'000 % £'000 %

Equity 9,782 5 0.05 - -

Mutual Fund 14,535 - - - -

Total 24,317 5 -


Total as a percentage of average net assets

0.03 %

0.00 %

*During the year dealing spread costs may be applicable to purchases and sales (the difference between bid and offer prices of all investments expressed as a percentage of the offer price value), which are not separately identifiable and do not form part of the analysis above. Dealing spread costs suffered by the fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment. At the Balance Sheet date the average portfolio dealing spread was 0.03% (2018: 0.03%).

14 Basis of valuation

31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000

Assets Liabilities Assets Liabilities

Level 1: Quoted prices 7,678 - 5,593 (118)

Level 2: Observable market data 44,626 (1) 33,975 (4)

Level 3: Unobservable data - - - -

52,304 (1) 39,568 (122)

15 Shares in issue reconciliation

Shares in issue as at 31/10/18 Issued shares Cancelled shares

Shares in issue as at 31/10/19

Y Accumulation Shares 21,517,392 6,242,972 (2,295,725) 25,464,639


18


16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £11,000 (2018: £8,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £506,000 (2018: £115,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £11,590,000 and £5,083,000 respectively (2018: £20,485,000 and £14,516,000).Amounts due at the year end in respect of investments purchased of £32,000 (2018: £24,000) are included within purchases awaiting settlement in Note 11.Amounts receivable at the year end in respect of investments sold of £nil (2018: £31,000) are included within sales awaiting settlement in Note 9.

17 Counterparty details of financial derivative transactions

31/10/19

BrokerCurrency Contracts CFD Futures Swaps Options

Collateral - Cash Grand Total

£'000 £'000 £'000 £'000 £'000 £'000 £'000

JP Morgan (1) - - - - - (1)

Total (1) - - - - - (1)

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH (2) - - - - - (2)

HSBC Global Markets (1) - - - - - (1)

Morgan Stanley (1) - - - - - (1)

National Australia Bank 32 - - - - - 32

UBS - - (118) - - 212 94

Total 28 - (118) - - 212 122

18 Shareholders' funds

The fund has one share class; Y Accumulation Shares. The annual management charge is as follows:Y Accumulation Shares : 0.25%The distributions per share class are given in the Distribution Statement.

19 Post balance sheet event

The net asset value in pence per share at the balance sheet date and the latest practicable date prior to the publication of this report have been recorded below. The percentage increase/(decrease) is a reflection of market fluctuation during this period.

NAV as at 31/10/19 NAV as at 03/02/20 Increase/(decrease)%

Y Accumulation Shares 206.51 213.59 3.43


19

Distribution Statement

for the year ended 31 October 2019Y Accumulation Shares - final distribution No. 7 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.

Net revenueEqualisation

(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 3.0430 - 3.0430 2.2256

Group 2 0.9809 2.0621 3.0430 2.2256

xxx xxx xxx xxx xxx


20


Investment Objective and PolicyThe fund aims to increase the value of your investment over a period of 5 years or more through a portfolio providing global exposure to both lower and higher risk assets.

The fund will invest at least 70% into funds that use ‘index tracking’ (also known as 'passive') investment management approach (these may include funds managed by Fidelity), with the aim of pursuing a lower cost investment approach. The fund can also invest directly into transferable securities, other collective investment schemes, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.

Through its investments, the fund aims to maintain an allocation of 20% in lower-risk assets (such as debt instruments including global government bonds, global corporate bonds and cash) and 80% higher-risk assets (such as global equities, global emerging market equities, global smaller companies and global property securities). This allocation, as well as the breakdown of higher-risk and lower-risk assets, may change according to prevailing market conditions and the efficient management of the portfolio.


*56% MSCI World, 8% FTSE EPRA/ NAREIT, 8% MSCI Emerging Markets, 8% MSCI World small cap, 12% Bloomberg Barclays Global Governments Total Return and 8% Bloomberg Barclays Corporate Total Return GBP Hedged.

Performance and Portfolio ActivityThe fund delivered positive returns over the period. The allocation to growth assets, including global large and mid-cap stocks, emerging market equities and global real estate investment trusts (REIT) benefited from the continued support from central banks and encouraging corporate results. The allocation to global government and corporate bonds gained against a backdrop of declining government bond yields. The fund is managed to provide diversified and efficient exposure to global markets. It has a purely static strategic asset allocation – 20% of the portfolio is invested in lower risk defensive assets and 80% in higher risk growth assets. Among the underlying strategies, positions in Lyxor FTSE Actuaries UK Gilts ETF and iShares Overseas Government Bond Index Fund were sold. A new position was purchased in HSBC Global Government Bond Index Fund. Elsewhere, the holding in E-mini Russell 2000 Index futures was sold and the exposure to L&G Global Small Cap Equity Index Fund was raised.



31 October 2019


XXX SRRI

A Accumulation Shares 5


1 3 4 5 6 72












• There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. While we seek to mitigate this, the fund may be exposed to the risk of financial loss if it invests into an instrument issued by an entity that subsequently defaults on its borrowings. Losses may also be realised if an entity that the fund is exposed to ceases to make interest payments over a period of time or indefinitely. Bond prices have an inverse relationship with interest rates such that when interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall.


21


A Accumulation Shares Y Accumulation Shares

Change in net assets (pence per share) 2019 2018 2017 2019 2018 2017

Opening net asset value per share 151.26 153.96 139.45 158.54 159.86 148.64

Return before operating charges* 17.06 (0.87) 16.30 17.96 (0.94) 11.65

Operating charges (1.90) (1.84) (1.79) (0.42) (0.39) (0.43)

Return after operating charges* 15.16 (2.70) 14.51 17.54 (1.32) 11.22

Distributions (0.63) (0.76) (3.50) (2.39) (2.28) (1.90)

Retained distributions on accumulation shares 0.63 0.76 3.50 2.39 2.28 1.90

Closing net asset value per share 166.42 151.26 153.96 176.08 158.54 159.86

*after direct transaction costs of 0.02 0.02 0.05 0.02 0.02 0.05

Performance

Return after charges 10.0% (1.8%) 10.4% 11.1% (0.8%) 7.6%

Other information

Closing net asset value (£'000) 15 15 14 73,197 50,253 5,418

Closing number of shares 9,150 10,092 8,861 41,569,614 31,697,182 3,389,136

Operating charges 1.20% 1.18% 1.20% 0.25% 0.23% 0.28%

Direct transaction costs 0.01% 0.01% 0.04% 0.01% 0.01% 0.04%


Highest share price 172.10 160.80 154.20 181.70 168.20 160.10

Lowest share price 143.20 142.30 138.50 150.30 148.40 142.50


22



[BLANK] Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 5,228 (975)

Revenue 5 1,000 766

Expenses 6 (149) (113)

Interest payable and similar charges 8 (1) (8)




Total return before distributions 6,030 (353)


Change in net assets attributable to shareholders from investment activities 5,228 (968)



[BLANK] Note £'000 £'000 £'000 £'000





16,723 9,875

Change in net assets attributable to shareholders from investment activities (see above) 5,228 (968)



Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 394 296



Total other assets 759 1,680


Liabilities:


Creditors






23




2 Equalisation





31/10/19 31/10/18£'000 £'000

Gains/(losses) on non-derivative securities+ 5,161 (305)


Gains/(losses) on forward currency contracts+ 10 (438)

Other currency gains/(losses) 1 5


Net capital gains/(losses) 5,228 (975)

+ These comprise:

Realised gains/(losses)++ 473 1,180


Total 5,197 (992)


5 Revenue

31/10/19 31/10/18£'000 £'000




Interest distributions 163 77


Management fee rebate to income 8 7


Bank interest 1 44

Total revenue 1,000 766

6 Expenses

31/10/19 31/10/18£'000 £'000



149 113



7 Taxation

31/10/19 31/10/18£'000 £'000


UK corporation tax 49 18


Double taxation relief (19) (14)

Prior year adjustment (1) 5



24






Increase/(decrease) in unutilised management expenses - (15)

Management fee rebate 6 2


Prior year adjustment (1) 5




8 Finance costs

31/10/19 31/10/18£'000 £'000

DistributionsThe distributions take account of revenue received on the issue of shares and revenue deducted on cancellation of shares.

A Accumulation Shares

Final - -


Final 993 722




Interest/other

Interest - 1


Contract for difference finance costs - 7

1 8






Revenue b/f - (1)

802 615

Details of the distributions per share are set out in the Distribution Statement.

9 Debtors

31/10/19 31/10/18£'000 £'000


Management fee rebate recoverable 1 7



Sales awaiting settlement 1 -

Total debtors 394 296


25



31/10/19 31/10/18£'000 £'000




11 Other creditors

31/10/19 31/10/18£'000 £'000

Amounts payable for cancellation of shares 2 32



UK corporation tax payable 28 3

UK income tax payable - (1)



Currency exposure



UK Pound 70,675 363 179 71,217

US Dollar 1,995 - - 1,995

Total 72,670 363 179 73,212

31/10/18 £'000 £'000 £'000 £'000

Euro (1) - - (1)

UK Pound 48,726 455 14 49,195

US Dollar 1,091 - (17) 1,074

Total 49,816 455 (3) 50,268







Currency risk


Interest rate risk

A rise or fall of 1% in global interest rates is likely to result in a 0.02% fall or rise in the fund's market value (2018: 0.02%).

Other price risk


Equity derivatives

At the year end the fund holds no equity derivatives that could impact it significantly (2018: same).


26




£'000 £'000 % £'000 %

Equity 7,406 3 0.05 - -

Mutual Fund 24,758 - - - -

Total 32,164 3 -



£'000 £'000 % £'000 %

Equity 3,801 2 0.05 - -


Total 13,781 2 -



0.01 %

0.00 %


£'000 £'000 % £'000 %

Equity 11,063 6 0.05 - -

Mutual Fund 37,541 - - - -



Total 48,605 8 -



£'000 £'000 % £'000 %

Equity 2,507 1 0.03 - -

Mutual Fund 29,392 - - - -


Total 31,900 1 -



0.02 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000





72,673 (3) 50,077 (261)


Shares in issue as at 31/10/18 Issued shares Cancelled shares Conversion shares


A Accumulation Shares 10,092 5,560 (6,172) (330) 9,150

Y Accumulation Shares 31,697,182 11,610,821 (1,738,702) 313 41,569,614


27


16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £15,000 (2018: £11,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £511,000 (2018: £301,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £15,507,000 and £5,009,000 respectively (2018: £25,214,000 and £27,078,000).Amounts receivable at the year end in respect of investments sold of £1,000 (2018: nil) are included within sales awaiting settlement in Note 9.Amounts due at the year end in respect of investments purchased of £170,000 (2018: £157,000) are included within purchases awaiting settlement in Note 11.


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH (3) - - - - - (3)

JP Morgan 20 - - - - - 20

Total 17 - - - - - 17

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 31 - - - - - 31

HSBC Global Markets 6 - - - - - 6

National Australia Bank (137) - - - - - (137)

UBS - - (118) - - 212 94

Total (100) - (118) - - 212 (6)


The fund has two share classes; Y Accumulation Shares and A Accumulation Shares. The annual management charge on each share class is as follows:A Accumulation Shares : 1.20%Y Accumulation Shares : 0.25%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.




A Accumulation Shares 166.42 171.09 2.81



28


for the year ended 31 October 2019A Accumulation Shares - final distribution No. 7 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 0.6347 - 0.6347 0.7571

Group 2 - 0.6347 0.6347 0.7571

xxx xxx xxx xxx xxxY Accumulation Shares - final distribution No. 7 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 2.3893 - 2.3893 2.2766

Group 2 0.6349 1.7544 2.3893 2.2766

xxx xxx xxx xxx xxx


29



The fund will invest at least 70% into funds that use an ‘index tracking’ (also known as 'passive') investment management approach (these may include funds managed by Fidelity), with the aim of pursuing a lower cost investment approach.

The fund can also invest directly into transferable securities, other collective investment schemes, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.

Through its investments, the fund aims to maintain an allocation of 80% in lower-risk assets (such as debt instruments including global government bonds, global corporate bonds and cash) and 20% higher-risk assets (including global equities, global emerging market equities, global smaller companies and global property securities). This allocation, as well as the breakdown of higher-risk and lower-risk assets, may change according to prevailing market conditions and the efficient management of the portfolio.



Performance and Portfolio ActivityThe fund delivered positive returns over the period. The allocation to global government and corporate bonds gained against a backdrop of declining government bond yields. Global and emerging market equities, as well as global real estate investment trusts (REIT) benefited from the continued support from central banks and encouraging corporate results. The fund is managed to provide diversified and efficient exposure to global markets. It has a purely static strategic asset allocation – 80% of the portfolio is invested in lower risk defensive assets and 20% in higher risk growth assets. Among the underlying strategies, positions in Lyxor FTSE Actuaries UK Gilts ETF and iShares Overseas Government Bond Index Fund were sold. A new position was purchased in HSBC Global Government Bond Index Fund. Elsewhere, the holding in E-mini Russell 2000 Index futures was sold and the exposure to L&G Global Small Cap Equity Index Fund was raised.



31 October 2019


XXX SRRI



1 3 4 5 6 72














30








Distributions (0.45) (0.36) (0.08) (1.70) (1.54) (1.22)




Performance


Other information

Closing net asset value (£'000) 3,304 215 396 76,852 58,148 6,680

Closing number of shares 2,598,646 183,728 329,789 57,163,808 47,402,307 5,359,699







31



[BLANK] Note £'000 £'000 £'000 £'000

Income

Net capital gains/(losses) 4 5,209 (1,713)

Revenue 5 1,084 916

Expenses 6 (188) (155)

Interest payable and similar charges 8 - (2)


Taxation 7 (5) (16)




Change in net assets attributable to shareholders from investment activities 5,209 (1,708)



[BLANK] £'000 £'000 £'000 £'000





15,602 (286)

Change in net assets attributable to shareholders from investment activities (see above) 5,209 (1,708)

Retained distribution on accumulation shares 982 731


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 280 104



Total other assets 852 686


Liabilities:


Creditors






32




2 Equalisation





31/10/19 31/10/18£'000 £'000

Gains/(losses) on non-derivative securities+ 5,040 1,082


Gains/(losses) on forward currency contracts+ 151 (2,434)

Other currency gains/(losses) - (14)

Broker fee rebates - 1


Management fee rebate to capital - 1

Net capital gains/(losses) 5,209 (1,713)

+ These comprise:

Realised gains/(losses)++ 719 (663)


Total 5,199 (1,712)


5 Revenue

31/10/19 31/10/18£'000 £'000








Bank interest 1 17


6 Expenses

31/10/19 31/10/18£'000 £'000



188 155




33


7 Taxation

31/10/19 31/10/18£'000 £'000









Interest distributions (142) (130)

Overseas tax expensed (1) (2)






The fund is an interest distributing fund under Corporation Tax Act 2009 and as interest distributions are deductible when calculating the liability, the corporation tax charge will usually be reduced to nil, except where there are expenses which are not deductible.

8 Finance costs

31/10/19 31/10/18£'000 £'000



Final 12 1


Final 970 730

982 731




Interest/other

Interest - 1


- 2






Revenue b/f - (1)

891 738



34


9 Debtors

31/10/19 31/10/18£'000 £'000





Sales awaiting settlement 4 -



31/10/19 31/10/18£'000 £'000




11 Other creditors

31/10/19 31/10/18£'000 £'000






Currency exposure



UK Pound 78,917 569 193 79,679

US Dollar 477 - - 477

Total 79,394 569 193 80,156

31/10/18 £'000 £'000 £'000 £'000

Euro (1) - - (1)

UK Pound 58,384 288 25 58,697

US Dollar (333) - - (333)

Total 58,050 288 25 58,363


Interest rate risk profile of financial assets and financial liabilities

The interest rate risk profile of the fund's financial assets was:

Currency Floating rate financial assets Fixed rate financial assetsFinancial assets on which no

interest is paid Total assets31/10/19 £'000 £'000 £'000 £'000

UK Pound 37,031 - 42,735 79,766

US Dollar - - 486 486

Total 37,031 - 43,221 80,252

31/10/18 £'000 £'000 £'000 £'000

UK Pound 54,446 - 4,329 58,775

US Dollar - - 461 461

Total 54,446 - 4,790 59,236


35


The interest rate risk profile of the fund's financial liabilities was:

CurrencyFloating rate financial

liabilities Fixed rate financial liabilitiesFinancial liabilities on which

no interest is paid^ Total liabilities^31/10/19 £'000 £'000 £'000 £'000

UK Pound - - 80,243 80,243

US Dollar - - 9 9

Total - - 80,252 80,252

31/10/18 £'000 £'000 £'000 £'000

Euro - - 1 1

UK Pound - - 58,441 58,441

US Dollar - - 794 794

Total - - 59,236 59,236

^ Includes £80,156,000 in respect of the fund's liability to redeem all shares (2018: £58,363,000).The fund invests in equity, fixed interest funds, cash/money market funds and has bank balances and/or amounts held at futures clearing houses and brokers.




Currency risk


Interest rate risk


Other price risk


Equity derivatives




£'000 £'000 % £'000 %

Equity 19,154 10 0.05 - -

Mutual Fund 31,106 - - - -


Total 50,262 10 -



£'000 £'000 % £'000 %

Equity 14,540 6 0.04 - -

Mutual Fund 19,817 - - - -

Total 34,357 6 -



0.02 %

0.00 %


36



£'000 £'000 % £'000 %

Equity 39,338 20 0.05 - -

Mutual Fund 51,969 - - - -


Total 91,307 23 -



£'000 £'000 % £'000 %

Equity 25,407 11 0.04 - -

Mutual Fund 64,120 - - - -


Total 89,594 11 -



0.05 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000





79,403 (9) 58,844 (794)




A Accumulation Shares 183,728 2,555,323 (140,405) 2,598,646


16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £20,000 (2018: £13,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £163,000 (2018: £56,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £5,452,000 and £2,399,000 respectively (2018: £14,868,000 and £30,243,000).Amounts receivable at the year end in respect of investments sold of £4,000 (2018: nil) are included within sales awaiting settlement in Note 9.Amounts due at the year end in respect of investments purchased of £41,000 (2018: £10,000) are included within purchases awaiting settlement in Note 11.


37



31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH (8) - - - - - (8)

JP Morgan 92 - - - - - 92

Morgan Stanley 1 - - - - - 1

Total 85 - - - - - 85

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 159 - - - - - 159


JP Morgan (3) - - - - - (3)

Northern Trust (754) - - - - - (754)

UBS - - (37) - - 67 30

Total (570) - (37) - - 67 (540)









38



Gross revenueEqualisation

(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 0.4504 - 0.4504 0.3567

Group 2 0.2143 0.2361 0.4504 0.3567



(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 1.6974 - 1.6974 1.5396

Group 2 0.8623 0.8351 1.6974 1.5396

xxx xxx xxx xxx xxx


39




Through its investments, the fund aims to maintain an allocation of 40% in lower-risk assets (such as debt instruments including global government bonds, global corporate bonds and cash) and 60% higher-risk assets (including global equities, global emerging market equities, global smaller companies and global property securities). This allocation, as well as the breakdown of higher-risk and lower-risk assets, may change according to prevailing market conditions and the efficient management of the portfolio.

The fund is actively managed. The Investment Manager will, when selecting investments for the fund and for the purposes of monitoring risk, consider a custom blend of indices*. The Investment Manager has a limited degree of freedom relative to the blended index and may invest outside the blended index, to take advantage of investment opportunities. This means The fund’s investments and therefore performance may vary from, but is unlikely to be significantly different to, the index.


Performance and Portfolio ActivityThe fund delivered positive returns over the period. The allocation to growth assets, including global large and mid-cap stocks, emerging market equities and global real estate investment trusts (REIT) benefited from the continued support from central banks and encouraging corporate results. The allocation to global government and corporate bonds gained against a backdrop of declining government bond yields. The fund is managed to provide diversified and efficient exposure to global markets. It has a purely static strategic asset allocation – 40% of the portfolio is invested in lower risk defensive assets and 60% in higher risk growth assets. Among the underlying strategies, positions in Lyxor FTSE Actuaries UK Gilts ETF and iShares Overseas Government Bond Index Fund were sold. A new position was purchased in HSBC Global Government Bond Index Fund. Elsewhere, the holding in E-mini Russell 2000 Index futures was sold and the exposure to L&G Global Small Cap Equity Index Fund was raised.



31 October 2019


XXX SRRI



1 3 4 5 6 72














40








Distributions (0.61) (0.70) (0.40) (2.05) (1.98) (1.61)




Performance


Other information

Closing net asset value (£'000) 243 112 113 320,764 294,242 191,633

Closing number of shares 158,114 80,090 79,003 195,500,721 198,316,120 127,506,532







41



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 5,548 4,811

Expenses 6 (812) (718)


Net revenue/(expense) before taxation 4,733 4,043

Taxation 7 (408) (380)

Net revenue/(expense) after taxation 4,325 3,663

Total return before distributions 33,434 (3,745)

Distributions 8 (4,325) (3,657)




[BLANK] Note £'000 £'000 £'000 £'000





(6,463) 34,949


Retained distribution on accumulation shares 8 4,007 3,936


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,967 1,552

Cash equivalents 3 4,062

Cash and bank balances 10 3,107 2,082

Total other assets 5,077 7,696

Total assets 321,493 297,096

Liabilities:

Investment liabilities (20) (2,449)

Creditors



Total liabilities (486) (2,742)



42




2 Equalisation





31/10/19 31/10/18£'000 £'000


Gains/(losses) on derivative contracts+ 109 (1,525)


Other currency gains/(losses) 22 (11)




+ These comprise:

Realised gains/(losses)++ 8,679 1,862


Total 28,946 (7,478)


5 Revenue

31/10/19 31/10/18£'000 £'000

UK dividend distributions 2,286 2,098



Interest distributions 1,783 1,315




Bank interest 5 218

Total revenue 5,548 4,811

6 Expenses

31/10/19 31/10/18£'000 £'000



812 718




43


7 Taxation

31/10/19 31/10/18£'000 £'000















8 Finance costs

31/10/19 31/10/18£'000 £'000



Final 1 1


Final 4,006 3,935

4,007 3,936



Net distributions for the year 4,325 3,657

Interest/other

Interest - 1


Contract for difference finance costs 1 49

3 50

Total finance costs 4,328 3,707


Net revenue after taxation for the year, per the Statement of Total Return 4,325 3,663



Revenue b/f - (1)

4,325 3,657


9 Debtors

31/10/19 31/10/18£'000 £'000

Amounts receivable for issue of shares 1,852 1,390




Total debtors 1,967 1,552


44



31/10/19 31/10/18£'000 £'000


Cash and bank balances 3,107 1,275

Total cash and bank balances 3,107 2,082

11 Other creditors

31/10/19 31/10/18£'000 £'000






Currency exposure



Singapore Dollar - 4 - 4

UK Pound 310,712 3,103 1,501 315,316

US Dollar 5,687 - - 5,687

Total 316,399 3,107 1,501 321,007

31/10/18 £'000 £'000 £'000 £'000

Euro (3) - - (3)

Japanese Yen (1) - - (1)

Russian Ruble (2) - - (2)

UK Pound 288,100 2,082 1,259 291,441

US Dollar 2,919 - - 2,919

Total 291,013 2,082 1,259 294,354







Currency risk


Interest rate risk


Other price risk


Equity derivatives

At the year end the fund holds no equity derivatives (2018: same).


45




£'000 £'000 % £'000 %

Equity 49,470 23 0.05 - -

Mutual Fund 113,434 - - - -


Total 162,911 23 -



£'000 £'000 % £'000 %

Equity 46,994 28 0.06 - -

Mutual Fund 117,375 - - - -


Total 164,370 28 -



0.02 %

0.00 %


£'000 £'000 % £'000 %

Equity 84,453 42 0.05 - -

Mutual Fund 239,164 - - - -



Total 323,622 57 -



£'000 £'000 % £'000 %

Equity 28,153 9 0.03 - -

Mutual Fund 223,195 - - - -


Total 251,350 9 -



0.02 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000



Level 2: Observable market data 239,076 (20) 224,757 (1,942)


316,419 (20) 293,462 (2,449)


46





A Accumulation Shares 80,090 88,233 (10,209) 158,114


16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £70,000 (2018: £62,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.Income received from Fidelity funds of £2,286,000 (2018: £1,444,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £50,454,000 and £45,111,000 respectively (2018: £124,437,000 and £143,847,000).Amounts due at the year end in respect of investments purchased of £255,000 (2018: £91,000) are included within purchases awaiting settlement in Note 11.


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH (17) - - - - - (17)

BNP Paribas 7 - - - - - 7

CIBC (1) - - - - - (1)

JP Morgan 177 - - - - - 177

National Australia Bank (1) - - - - - (1)

Total 165 - - - - - 165

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 408 - - - - - 408


JP Morgan (5) - - - - - (5)

Morgan Stanley (3) - - - - - (3)

Northern Trust (1,899) - - - - - (1,899)

Societe Generale (1) - - - - - (1)

State Street (2) - - - - - (2)

UBS - - (507) - - 807 300

Total (1,423) - (507) - - 807 (1,123)









47




(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 0.6146 - 0.6146 0.7018

Group 2 - 0.6146 0.6146 0.7018



(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 2.0491 - 2.0491 1.9840

Group 2 0.7968 1.2523 2.0491 1.9840

xxx xxx xxx xxx xxx


48




Through its investments, the fund aims to maintain an allocation of 60% in lower-risk assets (such as debt instruments including global government bonds, global corporate bonds and cash) and 40% higher-risk assets (such as global equities, global emerging market equities, global smaller companies and global property securities). This allocation, as well as the breakdown of higher-risk and lower-risk assets, may change according to prevailing market conditions and the efficient management of the portfolio.



Performance and Portfolio ActivityThe fund delivered positive returns over the period. The allocation to global government and corporate bonds gained against a backdrop of declining government bond yields. Global and emerging market equities, as well as global real estate investment trusts (REIT) benefited from the continued support from central banks and encouraging corporate results. The fund is managed to provide diversified and efficient exposure to global markets. It has a purely static strategic asset allocation – 60% of the portfolio is invested in lower risk defensive assets and 40% in higher risk growth assets. Among the underlying strategies, positions in Lyxor FTSE Actuaries UK Gilts ETF and iShares Overseas Government Bond Index Fund were sold. A new position was purchased in HSBC Global Government Bond Index Fund. Elsewhere, the holding in E-mini Russell 2000 Index futures was sold and the exposure to L&G Global Small Cap Equity Index Fund was raised.



31 October 2019


XXX SRRI



1 3 4 5 6 72














49








Distributions (0.54) (0.61) (0.29) (1.76) (1.68) (1.35)




Performance


Other information

Closing net asset value (£'000) 1,814 465 538 151,229 118,037 37,967

Closing number of shares 1,262,518 353,048 399,263 99,807,912 85,683,457 27,175,688







50



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 2,152 1,935

Expenses 6 (342) (302)



Taxation 7 (224) (206)







[BLANK] Note £'000 £'000 £'000 £'000





21,889 4,490


Retained distribution on accumulation shares 8 1,768 1,447


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 709 230

Cash equivalents 2 1,115

Cash and bank balances 10 1,352 691


Total assets 153,690 120,419

Liabilities:

Investment liabilities (14) (1,307)

Creditors



Total liabilities (647) (1,680)



51




2 Equalisation





31/10/19 31/10/18£'000 £'000

Gains/(losses) on non-derivative securities+ 10,390 1,346



Other currency gains/(losses) 1 (13)





+ These comprise:



Total 10,612 (3,075)


5 Revenue

31/10/19 31/10/18£'000 £'000




Interest distributions 1,098 910




Bank interest 1 53


6 Expenses

31/10/19 31/10/18£'000 £'000



342 302




52


7 Taxation

31/10/19 31/10/18£'000 £'000















8 Finance costs

31/10/19 31/10/18£'000 £'000



Final 7 2


Final 1,761 1,443

MoneyBuilder Asset Allocator Accumulation Shares*

Final - 2

1,768 1,447




Interest/other

Interest - 1



1 15





Equalisation on conversions 3 (8)

1,588 1,404


*Share class closures, conversions, mergers and renames have been completed during the year. Please refer to the Changes to the Prospectus on page 3.


53


9 Debtors

31/10/19 31/10/18£'000 £'000


Sales awaiting settlement 3 134



UK corporation tax recoverable - 16




31/10/19 31/10/18£'000 £'000


Cash and bank balances 1,352 439

Total cash and bank balances 1,352 691

11 Other creditors

31/10/19 31/10/18£'000 £'000




Purchases awaiting settlement 313 -



Currency exposure


Non-monetary exposures Monetary exposures Monetary exposures Total exposure

Euro (2) - - (2)Currency Investments^ Cash balances Debtors/(Creditors)31/10/19 £'000 £'000 £'000 £'000

UK Pound 150,056 1,346 76 151,478

US Dollar 1,559 6 - 1,565

Total 151,615 1,352 76 153,043

31/10/18 £'000 £'000 £'000 £'000


UK Pound 118,087 691 (143) 118,635

US Dollar 107 - - 107

Total 118,191 691 (143) 118,739



54






UK Pound 53,910 - 98,201 152,111

US Dollar 6 - 1,573 1,579

Total 53,916 - 99,774 153,690

31/10/18 £'000 £'000 £'000 £'000

UK Pound 45,358 - 73,650 119,008

US Dollar - - 1,411 1,411

Total 45,358 - 75,061 120,419





UK Pound - - 153,676 153,676

US Dollar - - 14 14

Total - - 153,690 153,690

31/10/18 £'000 £'000 £'000 £'000

Euro - - 2 2

Japanese Yen - - 1 1

UK Pound - - 119,112 119,112

US Dollar - - 1,304 1,304

Total - - 120,419 120,419





Currency risk


Interest rate risk


Other price risk


Equity derivatives



55




£'000 £'000 % £'000 %

Equity 20,678 10 0.05 - -

Mutual Fund 54,001 - - - -


Total 74,682 10 -



£'000 £'000 % £'000 %

Equity 15,414 8 0.05 - -

Mutual Fund 36,251 - - - -

Total 51,665 8 -



0.01 %

0.00 %


£'000 £'000 % £'000 %

Equity 45,240 22 0.05 - -

Mutual Fund 112,851 - - - -



Total 158,092 28 -



£'000 £'000 % £'000 %

Equity 20,346 7 0.04 - -

Mutual Fund 123,028 - - - -


Total 143,614 7 -



0.03 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000



Level 2: Observable market data 111,293 (14) 86,912 (1,167)


151,629 (14) 119,498 (1,307)


56





A Accumulation Shares 353,048 993,271 (83,801) - 1,262,518

MoneyBuilder Asset Allocator Accumulation Shares 177,259 60,877 (36,236) (201,900) -

Y Accumulation Shares 85,683,457 21,008,071 (7,078,561) 194,945 99,807,912

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £34,000 (2018: £26,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £650,000 (2018: £412,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £16,151,000 and £7,392,000 respectively (2018: £46,259,000 and £61,934,000).Amounts receivable at the year end in respect of investments sold of £2,000 (2018: £53,000) are included within sales awaiting settlement in Note 9.Amounts due at the year end in respect of investments purchased of £130,000 (2018: nil) are included within purchases awaiting settlement in Note 9.


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH (12) - - - - - (12)


CIBC (1) - - - - - (1)

JP Morgan 132 - - - - - 132

Total 123 - - - - - 123

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 244 - - - - - 244


JP Morgan (4) - - - - - (4)

Northern Trust (1,152) - - - - - (1,152)


UBS - - (140) - - 252 112

Total (867) - (140) - - 252 (755)









57




(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 0.5413 - 0.5413 0.6066

Group 2 0.0384 0.5029 0.5413 0.6066



(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 1.7640 - 1.7640 1.6838

Group 2 0.7007 1.0633 1.7640 1.6838

xxx xxx xxx xxx xxxMoneyBuilder Asset Allocator Accumulation Shares - final distribution No.9 in pence per shares^Group 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 0.8965

Group 2 - - - 0.8965

xxx xxx xxx xxx xxx^ Share class closures, conversions, mergers and renames have been completed during the year. Please refer to the Changes to the Prospectus on page 3.


58


Investment Objective and PolicyThe fund aims to achieve an Income yield of 4-6% per annum over a typical market cycle (5-7 years). The fund also aims to increase the value of your investment over a period of 5 years or more.

Any income you may receive will vary depending on the share class of the fund into which you are invested.

The fund invests at least 70% into funds (including funds managed by Fidelity) which provide global exposure to a mixture of asset classes. The fund can also invest directly into transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes. The fund is actively managed without reference to a benchmark.

Asset allocation exposure of the fund will be actively managed subject to it remaining within the following parameters: 20-100% income assets (such as bonds and cash) and 0-60% growth assets (such as equities, infrastructure securities and property securities). The fund’s asset allocation can be adjusted within the ranges in order to preserve capital or to take advantage of market opportunities.

Performance and Portfolio ActivityThe fund generated income in line with its objective and preserved capital during periods of market volatility. Moreover, it generated positive returns over the period. Equities and investment grade bonds were the largest contributors to returns, followed by high yield bonds and emerging market debt. Non-traditional assets such as infrastructure also added value. In contrast, equity and fixed income market hedges weighed on returns, as did the allocation to a reinsurance strategy. We sold our position in Australian government bonds following their strong performance and reduced the exposure to Fidelity Funds - US High Yield. New positions were purchased in Fidelity Funds - European High Yield and Fidelity Renaissance, which invests in high-quality credits. The allocation to Fidelity Funds - Emerging Market Local Currency Debt was also increased given its attractive valuations. We continue to hedge part of the fund’s equity market beta through short futures positions. This provides some protection to the portfolio against equity market volatility.

OutlookThe late-cycle environment and performance of markets continues to send mixed signals on the direction of markets. Our focus remains on balancing income with risk, but we are also allocating tactically to take advantage of opportunities arising from volatility and market dislocations.

Eugene Philalithis, Chris Forgan & George EfstathopoulosFund Managers

31 October 2019


XXX SRRI

Lovewell Blake FP Income Shares 4

W Accumulation Shares 3

W Income Shares 3

1 3 4 5 6 72














59


W Income Shares W Accumulation Shares

Change in net assets (pence per share) 2019 2018 2017 2019

Opening net asset value per share* 107.61 112.18 111.35 100.00

Return before operating charges* 9.06 (0.45) 7.38 6.72

Operating charges (1.04) (1.02) (1.08) (0.98)

Return after operating charges* 8.02 (0.41) 6.30 5.74

Distributions (4.23) (4.16) (5.47) (2.42)

Retained distributions on accumulation shares - - - 2.42

Closing net asset value per share 111.40 107.61 112.18 105.74

*after direct transaction costs of - 0.01 0.02 -

Performance

Return after charges 7.5% (0.4%) 5.7% 5.7%

Other information

Closing net asset value (£'000) 62,468 39,549 4,593 3,407

Closing number of shares 56,075,467 36,753,591 4,094,891 3,221,929

Operating charges 0.94% 0.71% 0.96% 0.94%

Direct transaction costs 0% 0.01% 0.02% 0%


Highest share price 114.20 113.00 114.90 106.90

Lowest share price 104.00 107.30 107.50 99.95

Lovewell Blake FP Income Shares

Change in net assets (pence per share) 2019 2018

Opening net asset value per share* 100.03 100.00

Return before operating charges* 8.08 2.13

Operating charges (0.87) (0.85)

Return after operating charges* 7.21 2.29

Distributions (3.68) (2.26)

Retained distributions on accumulation shares - -

Closing net asset value per share 103.56 100.03

*after direct transaction costs of - 0.01

Performance

Return after charges 7.2% 1.0%

Other information

Closing net asset value (£'000) 2,057 515

Closing number of shares 1,986,160 514,710

Operating charges 0.84% 0.32%

Direct transaction costs 0% 0.01%


Highest share price 106.10 103.70

Lowest share price 96.66 99.92



60



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 2,411 1,582

Expenses 6 (375) (260)



Taxation 7 (237) (146)







[BLANK] £'000 £'000 £'000 £'000





21,335 17,580


Retained distribution on accumulation shares 78 56


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 428 208

Cash equivalents 2,323 1,535




Liabilities:


Creditors

Distribution payable (516) (415)

Other creditors 11 (292) (1,774)

Total other liabilities (808) (2,189)

Total liabilities (1,118) (2,351)



61




2 Equalisation





31/10/19 31/10/18£'000 £'000


Gains/(losses) on derivative contracts+ (3) 30


Other currency gains/(losses) 1 -

Transaction charges (13) (6)



Management fee rebate to capital 12 1


+ These comprise:

Realised gains/(losses)++ (4,952) (5)


Total 1,979 (1,344)


5 Revenue

31/10/19 31/10/18£'000 £'000




Interest distributions 1,143 760

Derivative revenue 11 1


UK dividends 2 3

UK property income distributions 12 3

Bank interest 21 2


6 Expenses

31/10/19 31/10/18£'000 £'000



Registrar fees 53 36

Service charges 26 18

355 244Payable to the Depositary, associates of the Depositary, and agents of either of them:

Depositary fees 7 4

7 4Other expenses:

Audit fee 10 10

Other operating expenses 3 2

13 12

Total expenses 375 260


62


7 Taxation

31/10/19 31/10/18£'000 £'000



Overseas taxation 2 -






ACD fee waiver to capital 2 -



Overseas taxation 2 -




8 Finance costs

31/10/19 31/10/18£'000 £'000


Y Accumulation Shares*

Final - 56

Y Income Shares

Final - 15

Interim 34 87

Gross paying Y Income Shares

Interim - 4

W Income Shares

Final 277 208

Interim 1,694 878

Gross paying N Income Shares

Interim - 169

W Accumulation Shares

Final 78 -


Final 8 3

Interim 41 4

2,132 1,424




Interest/other

Derivative expense 8 18


21 20





63





Equalisation on conversions (18) (1)

2,047 1,350



9 Debtors

31/10/19 31/10/18£'000 £'000



Accrued revenue 106 80






31/10/19 31/10/18£'000 £'000

Amounts held at futures clearing houses and brokers 201 63



11 Other creditors

31/10/19 31/10/18£'000 £'000


Purchases awaiting settlement - 917



Total other creditors 292 1,774


Currency exposure



Australian Dollar 17 - - 17

Chinese Yuan Renminbi 36 - - 36

Euro 5,538 - 7 5,545

Hong Kong Dollar 48 - - 48

Japanese Yen (254) - - (254)

Swiss Franc 37 - - 37

UK Pound 40,096 3,447 (387) 43,156

US Dollar 19,341 6 - 19,347

Total 64,859 3,453 (380) 67,932


64


31/10/18 £'000 £'000 £'000 £'000


Czech Koruna 2 - - 2

Euro 2,534 - 8 2,542

Hong Kong Dollar (2) - - (2)

Hungarian Forint 1 - - 1


Korean Won (1) - - (1)


Turkish Lira (2) - - (2)

UK Pound 28,112 2,658 (1,989) 28,781

US Dollar 13,437 4 - 13,441

Total 44,083 2,662 (1,981) 44,764






Australian Dollar - - 18 18

Swiss Franc - - 37 37

Chinese Yuan Renminbi - - 39 39

Euro 4,800 - 753 5,553

UK Pound 19,816 - 24,151 43,967

Hong Kong Dollar - - 50 50


US Dollar 15,727 - 3,647 19,374

Total 40,343 - 28,707 69,050

31/10/18 £'000 £'000 £'000 £'000


Czech Koruna - - 2 2

Euro 2,082 - 466 2,548

Hungarian Forint - - 1 1



Turkish Lira - - 9 9

UK Pound 15,307 - 15,663 30,970

US Dollar 11,387 - 2,180 13,567

Total 28,776 - 18,339 47,115


31/10/19 £'000 £'000 £'000 £'000



no interest is paid^ Total liabilities^



Euro - - 8 8

UK Pound - - 68,743 68,743



US Dollar - - 27 27

Total - - 69,050 69,050


65


31/10/18 £'000 £'000 £'000 £'000


Euro - - 6 6



Korean Won - - 1 1


UK Pound - - 46,953 46,953

US Dollar - - 126 126

Total - - 47,115 47,115





Currency risk


Interest rate risk


Other price risk


Bond futures


Equity derivatives




£'000 £'000 % £'000 %

Equity 754 - 0.04 - -

Mutual Fund 22,822 - - - -


Total 23,577 - -



£'000 £'000 % £'000 %

Equity 1,102 1 0.06 - -



Total 6,424 1 -



0.00 %

0.00 %


66



£'000 £'000 % £'000 %

Equity 3,899 1 0.04 - -

Mutual Fund 24,176 3 0.01 - -


Total 28,118 4 -



£'000 £'000 % £'000 %

Equity 1,322 - 0.04 - -

Mutual Fund 10,580 1 0.01 - -


Total 12,023 1 -



0.02 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000


Level 1: Quoted prices 9,254 (36) 4,868 (11)



65,169 (310) 44,245 (162)




Lovewell Blake FP Income Shares 514,710 1,528,509 (57,059) - 1,986,160

W Accumulation Shares - 1,635,970 (308,732) 1,894,691 3,221,929

W Income Shares 36,753,591 21,204,803 (4,822,311) 2,939,384 56,075,467

Y Accumulation Shares 1,434,844 148,820 (132,308) (1,451,356) -

Y Income Shares 2,691,684 419,031 (128,719) (2,981,996) -

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £37,000 (2018: £26,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £621,000 (2018: £26,000) are included in Note 5 and amounts receivable at the year end of £50,000 (2018: £31,000) are included within accrued revenue in Note 9.During the year, the aggregate value of purchases and sales in Fidelity funds were £9,844,000 and £5,211,000 respectively (2018: £9,168,000 and £5,683,000).Amounts due at the year end in respect of investments purchased of nil (2018: £457,000) are included within purchases awaiting settlement in Note 11.


67



31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH (241) - - - - - (241)

BNP Paribas (2) - - - - - (2)

CIBC (2) - - - - - (2)

Citibank 50 - - - - - 50

JP Morgan 928 - - - - - 928


Royal Bank of Canada 11 - - - - - 11

State Street 12 - - - - - 12

UBS - - (27) - - 201 174

Total 1,073 - (27) - - 201 1,247

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 11 - - - - - 11

Citibank 1 - - - - - 1


JP Morgan 1 - - - - - 1

Morgan Stanley (112) - - - - - (112)




UBS - - 51 - - 63 114

Total (55) - 51 - - 63 59


The fund has three share classes; W Income Shares, Lovewell Blake FP Income Shares and W Accumulation Shares. The annual management charge on each share class is as follows:W Income Shares : 0.50%W Accumulation Shares : 0.50%Lovewell Blake FP Income Shares : 0.55%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.




W Income Shares 111.40 112.80 1.26

W Accumulation Shares 105.74 107.90 2.04

Lovewell Blake FP Income Shares 103.56 104.80 1.20


68


for the year ended 31 October 2019W Income Shares - final distribution No. 73 in pence per share^Group 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.4941 - 0.4941 0.5667

Group 2 0.2098 0.2843 0.4941 0.5667

xxx xxx xxx xxx xxxW Income Shares - interim distributions in pence per share^For the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)

Amount distributed 2018/2019


Group 1

Distribution No. 62 0.2600 - 0.2600 0.2374

Distribution No. 63 0.2600 - 0.2600 0.2895

Distribution No. 64 0.3200 - 0.3200 0.2988

Distribution No. 65 0.3200 - 0.3200 0.2900

Distribution No. 66 0.3300 - 0.3300 0.3000

Distribution No. 67 0.3500 - 0.3500 0.3200

Distribution No. 68 0.3800 - 0.3800 0.3200

Distribution No. 69 0.3800 - 0.3800 0.3200

Distribution No. 70 0.3200 - 0.3200 0.3600

Distribution No. 71 0.4100 - 0.4100 0.3600

Distribution No. 72 0.4100 - 0.4100 0.5000Group 2

Distribution No. 62 - 0.2600 0.2600 0.2374

Distribution No. 63 - 0.2600 0.2600 0.2895

Distribution No. 64 - 0.3200 0.3200 0.2988

Distribution No. 65 - 0.3200 0.3200 0.2900

Distribution No. 66 - 0.3300 0.3300 0.3000

Distribution No. 67 - 0.3500 0.3500 0.3200

Distribution No. 68 - 0.3800 0.3800 0.3200

Distribution No. 69 0.0216 0.3584 0.3800 0.3200

Distribution No. 70 0.0440 0.2760 0.3200 0.3600

Distribution No. 71 - 0.4100 0.4100 0.3600

Distribution No. 72 0.0396 0.3704 0.4100 0.5000

xxx xxx xxx xxx xxxW Accumulation Shares - final distribution No. 1 in pence per share^Group 1 - See belowGroup 2 - Shares purchased from 13 February 2019 to 31 October 2019.


(Note 2)

Amount accumulated

15/12/19

Group 1 2.4196 - 2.4196

Group 2 1.4164 1.0032 2.4196

xxx xxx xxx xxx xxx


69


Lovewell Blake FP Income Shares - final distribution No. 19 in pence per shareGroup 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.4221 - 0.4221 0.5375

Group 2 0.1156 0.3065 0.4221 0.5375

xxx xxx xxx xxx xxxLovewell Blake FP Income Shares - interim distributions in pence per shareFor the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 8 0.2245 - 0.2245 -

Distribution No. 9 0.2291 - 0.2291 -

Distribution No. 10 0.2772 - 0.2772 -

Distribution No. 11 0.2786 - 0.2786 -

Distribution No. 12 0.2905 - 0.2905 -

Distribution No. 13 0.3065 - 0.3065 -

Distribution No. 14 0.3352 - 0.3352 0.2785

Distribution No. 15 0.3377 - 0.3377 0.2956

Distribution No. 16 0.2790 - 0.2790 0.3378

Distribution No. 17 0.3429 - 0.3429 0.3389


Distribution No. 8 - 0.2245 0.2245 -

Distribution No. 9 - 0.2291 0.2291 -

Distribution No. 10 - 0.2772 0.2772 -

Distribution No. 11 - 0.2786 0.2786 -

Distribution No. 12 - 0.2905 0.2905 -

Distribution No. 13 - 0.3065 0.3065 -

Distribution No. 14 - 0.3352 0.3352 0.2785

Distribution No. 15 0.0526 0.2851 0.3377 0.2956

Distribution No. 16 0.0264 0.2526 0.2790 0.3378

Distribution No. 17 0.0120 0.3309 0.3429 0.3389

Distribution No. 18 0.0295 0.3288 0.3583 0.4725

xxx xxx xxx xxx xxx


70


Y Income Shares - interim distributions in pence per share^For the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 62 0.2595 - 0.2595 0.2346

Distribution No. 63 0.2584 - 0.2584 0.2854

Distribution No. 64 0.3193 - 0.3193 0.3073


Distribution No. 62 - 0.2595 0.2595 0.2346

Distribution No. 63 - 0.2584 0.2584 0.2854

Distribution No. 64 - 0.3193 0.3193 0.3073

Distribution No. 65 - 0.3194 0.3194 0.2945

xxx xxx xxx xxx xxx^Share class closures, conversions, mergers and renames have been completed during the year. Please refer to the Changes to the Prospectus on page 3.


71


Investment Objective and PolicyThe fund aims to achieve an Income yield of 4-6% per annum over a typical market cycle (5-7 years). The fund also aims to increase the value of your investment over a period of 5 years or more which will typically be in line with inflation.

Any income you may receive will vary depending on the share class of the fund into which you are invested and is not guaranteed.


Asset allocation exposure of the fund will be actively managed subject to it remaining within the following parameters: 25-100% growth assets (such as equities, infrastructure securities and real estate securities) and 0-100% income assets (such as bonds and cash). The fund’s asset allocation can be adjusted within the ranges in order to preserve capital or to take advantage of market opportunities.

Performance and Portfolio ActivityThe fund generated income in line with its objective and preserved capital during periods of market volatility. Moreover, it generated positive returns over the period. Equities were the largest contributors to returns, followed by investment grade bonds, high yield bonds and emerging market debt. Non-traditional assets such as infrastructure also added value. In contrast, equity and fixed income market hedges weighed on returns, as did the allocation to a reinsurance strategy. We sold our position in Australian government bonds following their strong performance and reduced the exposure to Fidelity Funds - US High Yield. We bought new positions in Fidelity Funds - European High Yield given its attractive valuations, and Fidelity Renaissance, which invests in high-quality credits. We continue to hedge part of the fund’s equity market beta through short futures positions. This provides some protection to the portfolio against equity market volatility.



31 October 2019


XXX SRRI



W Income Shares 4

1 3 4 5 6 72














72


W Income Shares W Accumulation Shares





Return after operating charges* 8.58 (0.54) 5.17 -

Distributions (4.31) (4.41) (4.39) (2.31)

Retained distributions on accumulation shares - - - 2.31


*after direct transaction costs of - 0.02 0.02 -

Performance


Other information




Direct transaction costs 0% 0.01% 0.02% 0%











Retained distributions on accumulation shares - -


*after direct transaction costs of - 0.02

Performance


Other information

Closing net asset value (£'000) 9,459 2,290

Closing number of shares 9,107,428 2,294,693


Direct transaction costs 0% 0.01%






73



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 2,228 1,614

Expenses 6 (343) (256)



Taxation 7 (202) (130)







[BLANK] Note £'000 £'000 £'000 £'000





26,309 5,569




Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 422 492





Liabilities:


Creditors

Distribution payable (524) (358)






74




2 Equalisation





31/10/19 31/10/18£'000 £'000

Gains/(losses) on non-derivative securities+ 1,752 (1,105)

Gains/(losses) on derivative contracts+ 52 44



Transaction charges (12) 2



Compensation payments 11 -


+ These comprise:

Realised gains/(losses)++ (3,725) (782)

Unrealised gains/(losses) 5,778 (650)

Total 2,053 (1,432)


5 Revenue

31/10/19 31/10/18£'000 £'000







UK dividends 3 -


Bank interest 20 1


6 Expenses

31/10/19 31/10/18£'000 £'000






Depositary fees 6 4

6 4Other expenses:

Audit fee 10 10


13 12



75


7 Taxation31/10/19 31/10/18

£'000 £'000a) Analysis of charge/(credit) for the year










Management fee rebate 3 -





8 Finance costs31/10/19 31/10/18

£'000 £'000



Final - 78

Y Income Shares

Final - 9

Interim 20 66

W Income Shares

Final 242 163

Interim 1,416 1,050


Final 76 -


Final 63 13

Interim 192 10

2,009 1,389




Interest/other



14 35







Equalisation on conversions (22) -

1,911 1,377




76


9 Debtors31/10/19 31/10/18

£'000 £'000








10 Cash and bank balances31/10/19 31/10/18

£'000 £'000




11 Other creditors

31/10/19 31/10/18£'000 £'000







Currency exposure





Euro 6,231 - 2 6,233


Japanese Yen (213) 14 - (199)


UK Pound 36,721 3,295 (353) 39,663

US Dollar 19,397 5 - 19,402

Total 62,298 3,314 (351) 65,261

31/10/18 £'000 £'000 £'000 £'000



Euro 2,894 - 3 2,897




Korean Won (2) - - (2)



UK Pound 23,956 1,125 (417) 24,664

US Dollar 9,442 1 - 9,443

Total 36,289 1,126 (414) 37,001

^ includes cash equivalents where appropriate.


77


The currency disclosure provided is based on the trading currency of the investments and foreign currency contracts. For further information on risk disclosures refer to the Risk management policies section.







Euro 5,630 - 606 6,236


Japanese Yen 14 - 29 43


UK Pound 15,209 - 25,230 40,439

US Dollar 14,079 - 5,347 19,426

Total 34,932 - 31,378 66,310

31/10/18 £'000 £'000 £'000 £'000



Euro 2,606 - 300 2,906




Thai Baht - - 1 1


UK Pound 7,850 - 17,719 25,569

US Dollar 7,167 - 2,374 9,541

Total 17,623 - 20,427 38,050







Euro - - 3 3



UK Pound - - 66,037 66,037

US Dollar - - 24 24

Total - - 66,310 66,310

31/10/18 £'000 £'000 £'000 £'000

Euro - - 9 9




Korean Won - - 2 2

Thai Baht - - 1 1


UK Pound - - 37,906 37,906

US Dollar - - 98 98

Total - - 38,050 38,050





78



Currency risk


Interest rate risk


Other price risk


Bond futures


Equity derivatives

The fund can use derivatives for investment purposes. At the year end, the fund holds no derivatives that could impact it significantly (2018: same).



£'000 £'000 % £'000 %

Equity 1,205 - 0.03 - -

Mutual Fund 26,291 - - - -



Total 27,497 1 -



£'000 £'000 % £'000 %

Equity 1,150 1 0.06 - -




Total 5,138 2 -



0.00 %

0.00 %


£'000 £'000 % £'000 %

Equity 2,186 1 0.04 - -

Mutual Fund 14,106 1 0.01 - -


Total 16,333 2 -



£'000 £'000 % £'000 %

Equity 1,554 1 0.06 - -

Mutual Fund 10,566 1 0.01 - -


Total 12,233 2 -



0.01 %

0.00 %



79



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000





62,574 (276) 36,432 (143)




Lovewell Blake FP Income Shares 2,294,693 6,879,690 (66,955) - 9,107,428

W Accumulation Shares - 1,108,617 (239,243) 2,413,157 3,282,531

W Income Shares 28,006,828 17,762,982 (1,240,377) 1,678,880 46,208,313


Y Income Shares 1,629,154 122,847 (51,673) (1,700,328) -

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £35,000 (2018: £21,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5 and amounts receivable at the year end are included within the ACD fee rebate/waiver recoverable in note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £526,000 (2018: £10,000) is included in Note 5 and amounts receivable at the year end of £49,000 (2018: £34,000) are included within accrued revenue in Note 9.During the year, the aggregate value of purchases and sales in Fidelity funds were £10,735,000 and £3,945,000 respectively (2018: £4,024,000 and £4,964,000).


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH (229) - - - - - (229)


CIBC (2) - - - - - (2)

Citibank 64 - - - - - 64

HSBC Global Markets - 18 - - - - 18

JP Morgan 900 - - - - - 900


Northern Trust 1 - - - - - 1

Royal Bank of Canada (6) - - - - - (6)

State Street 10 - - - - - 10

UBS - - (16) - - 153 137

Total 1,147 18 (16) - - 153 1,302


80


31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 13 - - - - - 13

BNP Paribas (9) - - - - - (9)

Citibank 1 - - - - - 1


JP Morgan (1) - - - - - (1)

Morgan Stanley (88) - - - - - (88)




State Street 2 - - - - - 2

UBS - - 77 - - 58 135

Total (23) - 77 - - 58 112


The fund has three share classes; W Income Shares, Lovewell Blake FP Income Shares and W Accumulation Shares. The annual management charge on each share class is as follows:W Income Shares : 0.50%W Accumulation Shares : 0.50%Lovewell Blake FP Income Shares : 0.55%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.




W Income Shares 113.25 114.70 1.28




81


for the year ended 31 October 2019W Income Shares - final distribution No. 73 in pence per share^Group 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.5228 - 0.5228 0.5833

Group 2 0.1979 0.3249 0.5228 0.5833

xxx xxx xxx xxx xxxW Income Shares - interim distributions in pence per share^For the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 62 0.2800 - 0.2800 0.2900

Distribution No. 63 0.2800 - 0.2800 0.2900

Distribution No. 64 0.3200 - 0.3200 0.3100

Distribution No. 65 0.3200 - 0.3200 0.2800

Distribution No. 66 0.3300 - 0.3300 0.3100

Distribution No. 67 0.3500 - 0.3500 0.3400

Distribution No. 68 0.3700 - 0.3700 0.3400

Distribution No. 69 0.3700 - 0.3700 0.3400

Distribution No. 70 0.3300 - 0.3300 0.3800

Distribution No. 71 0.4200 - 0.4200 0.4000


Distribution No. 62 0.0521 0.2279 0.2800 0.2900

Distribution No. 63 - 0.2800 0.2800 0.2900

Distribution No. 64 - 0.3200 0.3200 0.3100

Distribution No. 65 - 0.3200 0.3200 0.2800

Distribution No. 66 - 0.3300 0.3300 0.3100

Distribution No. 67 - 0.3500 0.3500 0.3400

Distribution No. 68 - 0.3700 0.3700 0.3400

Distribution No. 69 0.0239 0.3461 0.3700 0.3400

Distribution No. 70 0.0348 0.2952 0.3300 0.3800

Distribution No. 71 - 0.4200 0.4200 0.4000

Distribution No. 72 0.0063 0.4137 0.4200 0.5500

xxx xxx xxx xxx xxxLovewell Blake FP Income Shares - final distribution No. 19 in pence per shareGroup 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.6891 - 0.6891 0.5604

Group 2 0.3950 0.2941 0.6891 0.5604

xxx xxx xxx xxx xxx


82


Lovewell Blake FP Income Shares - interim distributions in pence per shareFor the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 8 0.2423 - 0.2423 -

Distribution No. 9 0.2367 - 0.2367 -

Distribution No. 10 0.2751 - 0.2751 -

Distribution No. 11 0.2776 - 0.2776 -

Distribution No. 12 0.2477 - 0.2477 -

Distribution No. 13 0.2907 - 0.2907 -

Distribution No. 14 0.3684 - 0.3684 0.3174

Distribution No. 15 0.3288 - 0.3288 0.3162

Distribution No. 16 0.2453 - 0.2453 0.3549

Distribution No. 17 0.3491 - 0.3491 0.3766


Distribution No. 8 - 0.2423 0.2423 -

Distribution No. 9 - 0.2367 0.2367 -

Distribution No. 10 - 0.2751 0.2751 -

Distribution No. 11 - 0.2776 0.2776 -

Distribution No. 12 - 0.2477 0.2477 -

Distribution No. 13 0.0244 0.2663 0.2907 -

Distribution No. 14 - 0.3684 0.3684 0.3174

Distribution No. 15 0.1271 0.2017 0.3288 0.3162

Distribution No. 16 0.0373 0.2080 0.2453 0.3549

Distribution No. 17 - 0.3491 0.3491 0.3766

Distribution No. 18 - 0.3624 0.3624 0.5074

xxx xxx xxx xxx xxxW Accumulation Shares - final distribution No. 2 in pence per share^Group 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

15/11/19

Group 1 2.3078 - 2.3078

Group 2 0.9560 1.3518 2.3078



83


Investment Objective and PolicyThe fund aims to achieve an Income yield of 4-6% per annum over a typical market cycle (5-7 years).

Any income you may receive will vary depending on the share class of the fund into which you are invested and is not guaranteed.


Asset allocation exposure of the fund will be actively managed subject to it remaining within the following parameters: 20-100% income assets (such as bonds and cash) and 0-65% growth assets (such as equities, infrastructure securities and property securities). The fund’s asset allocation can be adjusted within the ranges in order to preserve capital or to take advantage of market opportunities.

Performance and Portfolio ActivityThe fund generated income in line with its objective and preserved capital during periods of market volatility. Moreover, it generated positive returns over the period. Investment grade bonds and equities were the largest contributors to returns, followed by high yield bonds and emerging market debt. Non-traditional assets such as infrastructure and loans also added value. In contrast, equity and fixed income market hedges weighed on returns, as did the allocation to a reinsurance strategy. We sold our position in Australian government bonds following their strong performance and reduced the exposure to Fidelity Funds - US High Yield. New positions were purchased in Fidelity Funds - European High Yield given its attractive valuations, and Fidelity Renaissance, which invests in high-quality credits. The allocation to Fidelity Funds - Emerging Market Local Currency Debt was also increased given its attractive valuations. We continue to hedge part of the fund’s equity market beta through short futures positions. This provides some protection to the portfolio against equity market volatility.



31 October 2019


XXX SRRI


A Income Shares 3

I Income Shares 3



W Income Shares 3

1 3 4 5 6 72












• Liquidity is a measure of how easily an investment can be converted into cash. Under certain market conditions assets may be more difficult to sell.


84


A Accumulation Shares A Income Shares


Opening net asset value per share* 167.73 169.17 163.46 109.17 114.75 115.50

Return before operating charges* 15.10 0.95 8.44 9.67 0.62 6.82



Distributions (5.12) (4.72) (4.65) (4.72) (4.61) (5.67)

Retained distributions on accumulation shares 5.12 4.72 4.65 - - -


*after direct transaction costs of - 0.01 0.02 - 0.01 0.02

Performance


Other information

Closing net asset value (£'000) 18,099 14,056 17,301 3,219 3,495 3,207

Closing number of shares 10,056,769 8,380,247 10,226,921 2,866,175 3,201,703 2,794,800


Direct transaction costs 0% 0.01% 0.02% 0% 0.01% 0.02%




I Income Shares W Income Shares



Return before operating charges* 9.15 0.90 5.45 9.27 (0.24) 6.45


Return after operating charges* 8.48 0.23 4.76 8.32 (0.12) 5.48

Distributions (4.58) (4.43) (4.51) (4.52) (4.39) (5.38)

Retained distributions on accumulation shares - - - - - -


*after direct transaction costs of - 0.01 0.02 - 0.01 0.02

Performance

Return after charges 8.2% 0.2% 4.5% 8.0% (0.1%) 5.0%

Other information




Direct transaction costs 0% 0.01% 0.02% 0% 0.01% 0.02%





85


W Accumulation Shares Lovewell Blake FP Income Shares

Change in net assets (pence per share) 2019 2019 2018

Opening net asset value per share* 106.19 99.73 100.00

Return before operating charges* 0.93 8.88 1.97

Operating charges (0.93) (0.81) (0.81)

Return after operating charges* 2.80 8.07 2.21

Distributions (2.80) (4.42) (2.48)

Retained distributions on accumulation shares 2.80 - -

Closing net asset value per share 106.19 103.38 99.73

*after direct transaction costs of - - 0.01

Performance

Return after charges 2.6% 8.1% 2.2%

Other information

Closing net asset value (£'000) 120,592 1,160 79

Closing number of shares 113,536,854 1,121,906 79,383

Operating charges 0.89% 0.79% 0.31%

Direct transaction costs 0% 0% 0.01%


Highest share price 107.10 105.70 103.10

Lowest share price 99.91 96.34 99.51



86



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 36,192 30,570

Expenses 6 (5,259) (4,847)





Total return before distributions 64,771 564

Distributions 8 (33,547) (28,559)




[BLANK] £'000 £'000 £'000 £'000





6,544 217,367


Retained distribution on accumulation shares 3,696 3,325


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 5,214 10,312




Total assets 866,546 824,505

Liabilities:

Investment liabilities (3,931) (2,947)

Creditors

Distribution payable (6,553) (7,242)

Other creditors 11 (1,400) (1,118)

Total other liabilities (7,953) (8,360)




87




2 Equalisation





31/10/19 31/10/18£'000 £'000


Gains/(losses) on derivative contracts+ (1,143) 1,263

Gains/(losses) on forward currency contracts+ 3,663 (9,013)




ACD fee rebate/waiver to capital 1,271 1,490


Compensation payments 2 -


+ These comprise:

Realised gains/(losses)++ (5,219) (1,924)


Total 33,003 (26,091)


5 Revenue

31/10/19 31/10/18£'000 £'000

UK dividend distributions 7,118 5,316

Unfranked UK dividend distributions 1,572 1,461

Overseas dividend distributions 4,603 4,985

Interest distributions 18,632 15,486


ACD fee rebate/waiver to income 3,758 3,064

UK dividends - 36


Bank interest 299 57

Taxable interest - 1


6 Expenses

31/10/19 31/10/18£'000 £'000


Investment management fees 4,364 4,049



5,134 4,736Payable to the Depositary, associates of the Depositary, and agents of either of them:

Depositary fees 64 57

64 57


88


Other expenses:

Audit fee 11 11


61 54

Total expenses 5,259 4,847

7 Taxation

31/10/19 31/10/18£'000 £'000







Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). 6,090 5,040Effects of:


Interest distributions (4,027) (3,272)



Revenue not included for tax purposes (2,344) (2,068)





8 Finance costs

31/10/19 31/10/18£'000 £'000



Final 515 396

A Income Shares

Final 18 22

Interim 123 124

Gross paying A Income Shares*

Interim - 2

I Income Shares

Final 2,407 3,118

Interim 17,101 13,418


Final - 2,929

Y Income Shares

Final - 322

Interim 560 1,773

Gross paying Y Income Shares

Interim - 123

W Income Shares

Final 1,512 1,018

Interim 8,384 4,872

Gross paying N Income Shares

Interim - 834


89



Final 3,181 -


Final 6 1

Interim 25 -

33,832 28,952




Interest/other

Interest 4 1



485 525







Equalisation on conversions (818) -

33,547 28,559



9 Debtors

31/10/19 31/10/18£'000 £'000

Amounts receivable for issue of shares 1,772 337

Sales awaiting settlement 9 7,015

Accrued revenue 1,357 1,209


ACD fee rebate/waiver recoverable 1,277 1,252


UK corporation tax recoverable 37 -

Total debtors 5,214 10,312


31/10/19 31/10/18£'000 £'000

Amounts held at futures clearing houses and brokers 2,205 183



11 Other creditors

31/10/19 31/10/18£'000 £'000




UK corporation tax payable - 28

Total other creditors 1,400 1,118


90



Currency exposure





Euro 58,659 - - 58,659


Hungarian Forint - 1 - 1

Japanese Yen (3,190) - - (3,190)


UK Pound 567,220 14,022 (2,739) 578,503

US Dollar 219,600 - - 219,600

Total 843,378 14,023 (2,739) 854,662

31/10/18 £'000 £'000 £'000 £'000



Euro 38,073 - 55 38,128



Japanese Yen (161) - - (161)

Korean Won (19) - - (19)


Taiwan Dollar (3) - - (3)

Thai Baht 1 - - 1


UK Pound 536,645 10,472 1,897 549,014

US Dollar 226,049 12 - 226,061

Total 800,762 10,484 1,952 813,198









Euro 49,837 - 8,995 58,832

UK Pound 307,852 - 278,614 586,466




US Dollar 201,434 - 18,538 219,972

Total 559,124 - 307,422 866,546


91


31/10/18 £'000 £'000 £'000 £'000



Euro 31,711 - 6,576 38,287




Thai Baht - - 10 10


UK Pound 309,213 - 248,161 557,374

US Dollar 195,354 - 32,991 228,345

Total 536,278 - 288,227 824,505







Euro - - 173 173

UK Pound - - 862,625 862,625


Japanese Yen - - 3,328 3,328

US Dollar - - 372 372

Total - - 866,546 866,546

31/10/18 £'000 £'000 £'000 £'000


Euro - - 159 159




Korean Won - - 20 20

Swiss Franc - - 1 1

Taiwan Dollar - - 4 4

Thai Baht - - 9 9


UK Pound - - 821,557 821,557

US Dollar - - 2,284 2,284

Total - - 824,505 824,505





Currency risk


Interest rate risk


Other price risk


Bond futures


Equity derivatives

At the year end the fund holds no equity derivatives (2018: same).


92




£'000 £'000 % £'000 %

Equity 1,651 - - - -

Mutual Fund 267,362 - - - -



Total 269,326 5 -



£'000 £'000 % £'000 %

Equity 26,658 17 0.06 - -

Mutual Fund 232,198 2 - - -

Corporate actions 1,540 - - - -


Total 260,396 25 -



0.00 %

0.00 %


£'000 £'000 % £'000 %

Equity 30,652 12 0.04 - -

Mutual Fund 423,628 9 - 1 -



Total 455,077 26 1



£'000 £'000 % £'000 %

Equity 24,640 13 0.05 - -

Mutual Fund 233,373 16 0.01 - -



Total 259,196 34 -



0.01 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000



Level 2: Observable market data 744,246 (3,411) 737,532 (2,845)


847,309 (3,931) 803,709 (2,947)


93


15 Shares in issue reconciliationShares in issue as

at 31/10/18 Issued shares Cancelled shares Conversion sharesShares in issue as

at 31/10/19

A Accumulation Shares 8,380,247 2,798,350 (1,046,932) (74,896) 10,056,769

A Income Shares 3,201,703 120,921 (263,876) (192,573) 2,866,175

I Income Shares 477,780,556 31,769,641 (103,582,099) - 405,968,098

Lovewell Blake FP Income Shares 79,383 1,055,234 (12,711) - 1,121,906

W Accumulation Shares - 27,502,988 (3,383,545) 89,417,411 113,536,854

W Income Shares 156,414,090 54,518,544 (3,041,944) 48,681,246 256,571,936

Y Accumulation Shares 69,795,931 1,823,435 (2,354,552) (69,264,814) -

Y Income Shares 45,717,728 1,575,149 (2,512,121) (44,780,756) -

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5 and amounts receivable at the year end are included within the ACD fee rebate/waiver recoverable in note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £11,788,000 (2018: £675,000) are included in Note 5 and amounts receivable at the year end of £615,000 (2018: £572,000) are included within accrued revenue in Note 9.During the year, the aggregate value of purchases and sales in Fidelity funds were £156,604,000 and £138,499,000 respectively (2018: £222,537,000 and £151,574,000).Amounts receivable at the year end in respect of investments sold of nil (2018: £6,908,000) are included within sales awaiting settlement in Note 9.Amounts due at the year end in respect of investments purchased of £519,000 (2018: £106,000) are included within purchases awaiting settlement in Note 11.


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

Bank of America (7) - - - - - (7)

BBH (3,193) - - - - - (3,193)

CIBC (134) - - - - - (134)

Citibank 496 - - - - - 496


JP Morgan 12,065 - - - - - 12,065

National Australia Bank 3,222 - - - - - 3,222

State Street 298 - - - - - 298

UBS - - (350) - - 2,205 1,855

Total 12,745 - (350) - - 2,205 14,600

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000

Bank of America 43 - - - - - 43

BBH 31 - - - - - 31

CIBC (11) - - - - - (11)

Citibank 13 - - - - - 13


JP Morgan 37 - - - - - 37

Morgan Stanley (39) - - - - - (39)

Northern Trust (1,888) - - - - - (1,888)

Royal Bank of Canada 1,208 - - - - - 1,208


State Street 29 - - - - - 29

UBS - - 1,164 - - 183 1,347

Total (1,091) - 1,164 - - 183 256


94



The fund has six share classes; W Income Shares, I Income Shares, Lovewell Blake FP Income Shares, A Income Shares, W Accumulation Shares and A Accumulation Shares. The annual management charge on each share class is as follows:A Accumulation Shares : 1.25%A Income Shares : 1.25%I Income Shares : 0.50%W Income Shares : 0.50%W Accumulation Shares : 0.50%Lovewell Blake FP Income Shares : 0.55%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.





A Income Shares 112.30 113.70 1.25

I Income Shares 106.88 108.50 1.52

W Income Shares 108.22 109.80 1.46




95




(Note 2)

Amount accumulated

15/12/19

Amount accumulated

15/12/18

Group 1 5.1168 - 5.1168 4.7238

Group 2 2.3928 2.7240 5.1168 4.7238

xxx xxx xxx xxx xxxA Income Shares - final distribution No. 144 in pence per shareGroup 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.6116 - 0.6116 0.6805

Group 2 0.2912 0.3204 0.6116 0.6805

xxx xxx xxx xxx xxxA Income Shares - interim distributions in pence per shareFor the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 133 0.2614 - 0.2614 0.2528

Distribution No. 134 0.2607 - 0.2607 0.2736

Distribution No. 135 0.3310 - 0.3310 0.3575

Distribution No. 136 0.3404 - 0.3404 0.3529

Distribution No. 137 0.3495 - 0.3495 0.3533

Distribution No. 138 0.4150 - 0.4150 0.3780

Distribution No. 139 0.4330 - 0.4330 0.3778

Distribution No. 140 0.4113 - 0.4113 0.3566

Distribution No. 141 0.4121 - 0.4121 0.3773

Distribution No. 142 0.4761 - 0.4761 0.3981


Distribution No. 133 - 0.2614 0.2614 0.2528

Distribution No. 134 - 0.2607 0.2607 0.2736

Distribution No. 135 - 0.3310 0.3310 0.3575

Distribution No. 136 - 0.3404 0.3404 0.3529

Distribution No. 137 - 0.3495 0.3495 0.3533

Distribution No. 138 - 0.4150 0.4150 0.3780

Distribution No. 139 - 0.4330 0.4330 0.3778

Distribution No. 140 - 0.4113 0.4113 0.3566

Distribution No. 141 - 0.4121 0.4121 0.3773

Distribution No. 142 - 0.4761 0.4761 0.3981

Distribution No. 143 0.0392 0.3817 0.4209 0.4502

xxx xxx xxx xxx xxx


96


I Income Shares - final distribution No. 47 in pence per shareGroup 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.5928 - 0.5928 0.6527

Group 2 0.3974 0.1954 0.5928 0.6527

xxx xxx xxx xxx xxxI Income Shares - interim distributions in pence per shareFor the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 36 0.2525 - 0.2525 0.2440

Distribution No. 37 0.2560 - 0.2560 0.2649

Distribution No. 38 0.3200 - 0.3200 0.3419

Distribution No. 39 0.3300 - 0.3300 0.3400

Distribution No. 40 0.3400 - 0.3400 0.3400

Distribution No. 41 0.4000 - 0.4000 0.3620

Distribution No. 42 0.4200 - 0.4200 0.3642

Distribution No. 43 0.4000 - 0.4000 0.3438

Distribution No. 44 0.4000 - 0.4000 0.3634

Distribution No. 45 0.4600 - 0.4600 0.3813


Distribution No. 36 0.0281 0.2244 0.2525 0.2440

Distribution No. 37 0.0833 0.1727 0.2560 0.2649

Distribution No. 38 - 0.3200 0.3200 0.3419

Distribution No. 39 - 0.3300 0.3300 0.3400

Distribution No. 40 0.0421 0.2979 0.3400 0.3400

Distribution No. 41 0.1588 0.2412 0.4000 0.3620

Distribution No. 42 - 0.4200 0.4200 0.3642

Distribution No. 43 0.0737 0.3263 0.4000 0.3438

Distribution No. 44 0.0748 0.3252 0.4000 0.3634

Distribution No. 45 - 0.4600 0.4600 0.3813

Distribution No. 46 0.0959 0.3141 0.4100 0.4343

xxx xxx xxx xxx xxxW Income Shares - final distribution No. 73 in pence per share^Group 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.5892 - 0.5892 0.6507

Group 2 0.3120 0.2772 0.5892 0.6507

xxx xxx xxx xxx xxx


97


W Income Shares - interim distributions in pence per share^For the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 62 0.2500 - 0.2500 0.2399

Distribution No. 63 0.2500 - 0.2500 0.2600

Distribution No. 64 0.3170 - 0.3170 0.3398

Distribution No. 65 0.3261 - 0.3261 0.3357

Distribution No. 66 0.3352 - 0.3352 0.3362

Distribution No. 67 0.3983 - 0.3983 0.3600

Distribution No. 68 0.4050 - 0.4050 0.3600

Distribution No. 69 0.3929 - 0.3929 0.3400

Distribution No. 70 0.3961 - 0.3961 0.3600

Distribution No. 71 0.4580 - 0.4580 0.3800


Distribution No. 62 - 0.2500 0.2500 0.2399

Distribution No. 63 0.0056 0.2444 0.2500 0.2600

Distribution No. 64 - 0.3170 0.3170 0.3398

Distribution No. 65 - 0.3261 0.3261 0.3357

Distribution No. 66 0.0055 0.3297 0.3352 0.3362

Distribution No. 67 0.0843 0.3140 0.3983 0.3600

Distribution No. 68 - 0.4050 0.4050 0.3600

Distribution No. 69 0.0596 0.3333 0.3929 0.3400

Distribution No. 70 0.0503 0.3458 0.3961 0.3600

Distribution No. 71 - 0.4580 0.4580 0.3800

Distribution No. 72 0.0536 0.3515 0.4051 0.4300

xxx xxx xxx xxx xxxW Accumulation Shares - final distribution No. 1 in pence per share^Group 1 - Shares purchased on or before 13 February 2019.Group 2 - Shares purchased from 14 February 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 2.8022 - 2.8022 -

Group 2 1.4518 1.3504 2.8022 -

xxx xxx xxx xxx xxxLovewell Blake FP Income Shares - final distribution No. 19 in pence per shareGroup 1 - Shares purchased on or before 30 September 2019.Group 2 - Shares purchased from 1 October 2019 to 31 October 2019.


(Note 2)

Amount distributed

15/12/19

Amount distributed

15/12/18

Group 1 0.5733 - 0.5733 0.6322

Group 2 0.3604 0.2129 0.5733 0.6322

xxx xxx xxx xxx xxx


98


Lovewell Blake FP Income Shares - interim distributions in pence per shareFor the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 8 0.2445 - 0.2445 -

Distribution No. 9 0.2676 - 0.2676 -

Distribution No. 10 0.3107 - 0.3107 -

Distribution No. 11 0.3197 - 0.3197 -

Distribution No. 12 0.3293 - 0.3293 -

Distribution No. 13 0.3873 - 0.3873 0.0247

Distribution No. 14 0.3818 - 0.3818 0.3512

Distribution No. 15 0.3820 - 0.3820 0.3332

Distribution No. 16 0.3869 - 0.3869 0.3518

Distribution No. 17 0.4451 - 0.4451 0.3694


Distribution No. 8 - 0.2445 0.2445 -

Distribution No. 9 0.0728 0.1948 0.2676 -

Distribution No. 10 - 0.3107 0.3107 -

Distribution No. 11 - 0.3197 0.3197 -

Distribution No. 12 - 0.3293 0.3293 -

Distribution No. 13 - 0.3873 0.3873 0.0247

Distribution No. 14 - 0.3818 0.3818 0.3512

Distribution No. 15 - 0.3820 0.3820 0.3332

Distribution No. 16 0.0548 0.3321 0.3869 0.3518

Distribution No. 17 - 0.4451 0.4451 0.3694

Distribution No. 18 - 0.3967 0.3967 0.4215

xxx xxx xxx xxx xxxY Income Shares - interim distributions in pence per share^For the monthly distributing funds, shares purchased during the month prior to the ex-dividend date are classified as Group 2 shares.All other holdings are classified as Group 1 shares.


(Note 2)



Group 1

Distribution No. 82 0.2709 - 0.2709 0.2606

Distribution No. 83 0.2701 - 0.2701 0.2822

Distribution No. 84 0.3433 - 0.3433 0.3690


Distribution No. 82 - 0.2709 0.2709 0.2606

Distribution No. 83 - 0.2701 0.2701 0.2822

Distribution No. 84 - 0.3433 0.3433 0.3690

Distribution No. 85 - 0.3532 0.3532 0.3643



99


Investment Objective and PolicyThis fund targets an average annual return of 6.5% after the deduction of ongoing fund charges, over a typical market cycle of 5-7 years. The return target assumes the deduction of the ongoing charges figure (OCF) on the W share class. There is no guarantee that the target will be achieved by the fund.

The fund has a large exposure to higher risk investments (such as global equities, global emerging market equities, global smaller companies and global property securities) meaning that it is likely to experience short-term price fluctuations and an investor may not get back the full amount invested.

The fund provides global exposure to a diversified range of assets by investing at least 70% into funds. The fund typically invests more than 65% in sub-funds of an Irish UCITS fund (Fidelity Common Contractual Fund II) operated by Fidelity which subsequently utilise the experience and specialisms of a number of investment managers (which may include Fidelity) to manage the underlying assets. The exposure may be less than 65% depending on market conditions. The fund is actively managed without reference to a benchmark.

The fund can also invest directly into other collective investment schemes (including schemes operated by Fidelity), transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.

Asset allocation exposure of the fund will be actively managed subject to it remaining within the following parameters in all market conditions: 60-100% equity, 0-40% debt instruments (which may include high yield and emerging market debt), 0-20% cash and 0-30% alternatives (such as infrastructure securities and Real Estate Investment Trusts).

Performance and Portfolio ActivityThe fund delivered positive returns, with all asset groups contributing to performance. Within growth assets, underlying UK, US and Europe ex-UK equity holdings added value. Within hedging assets, positions in gold and global aggregate bonds supported returns. We took some profits in iShares Physical Gold ETC and Investec Global Gold Fund. While we reduced our exposure to gold, we believe that the precious metal remains an attractive investment opportunity given the global trends towards protectionism. Within diversifying assets, we bought a position in PIMCO MLP & Energy Infrastructure Fund, which gives us exposure to the energy infrastructure sector. Within Europe ex-UK, we added a long position in the EURO Stoxx Banks index.

OutlookWe retain our cautious outlook as we continue to see an ever-widening spread between fundamentals and risk asset performance. Our focus remains on protecting investors’ capital, and we believe that defensive assets remain attractive.

Bill McQuaker & Ayesha AkbarFund Managers

31 October 2019


XXX SRRI


Lovewell Blake FP Accumulation Shares 4


1 3 4 5 6 72














100


A Accumulation Shares W Accumulation Shares



Return before operating charges* 1.97 14.95 (1.17) 15.90


Return after operating charges* - 13.39 (2.89) 14.05

Distributions - - (1.01) (0.86)

Retained distributions on accumulation shares - - 1.01 0.86


*after direct transaction costs of 0.01 0.01 0.02 0.02

Performance

Return after charges 0% 10.0% (2.1%) 11.5%

Other information




Direct transaction costs 0.01% 0.01% 0.02% 0.01%




Lovewell Blake FP Accumulation Shares






Distributions - (0.43)

Retained distributions on accumulation shares - 0.43


*after direct transaction costs of 0.01 0.02

Performance


Other information




Direct transaction costs 0.01% 0.02%






101



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 723 263

Expenses 6 (2,411) (127)


Net revenue/(expense) before taxation (2,092) 129

Taxation 7 (17) (3)

Net revenue/(expense) after taxation (2,109) 126


Distributions 8 1 (126)




[BLANK] Note £'000 £'000 £'000 £'000





In specie creation of shares 232,593 -

232,417 8,205


Retained distribution on accumulation shares 8 - 150


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 947 391


Cash and bank balances 10 4,166 271



Liabilities:


Creditors

Bank overdrafts (7) -



Total liabilities (1,505) (265)



102




2 Equalisation





31/10/19 31/10/18£'000 £'000


Gains/(losses) on derivative contracts+ (1,142) 52




Management fee rebate to capital 1 -


+ These comprise:



Total 20,043 (644)


5 Revenue

31/10/19 31/10/18£'000 £'000


Unfranked UK dividend distributions 9 -






Bank interest 25 2


6 Expenses

31/10/19 31/10/18£'000 £'000


Investment management fees 2,028 89



2,316 114Payable to the Depositary, associates of the Depositary, and agents of either of them:


24 2Other expenses:

Audit fee 10 10


71 11

Total expenses 2,411 127


103


7 Taxation

31/10/19 31/10/18£'000 £'000






Net revenue/(expense) before taxation (2,092) 129

Net revenue/(expense) multiplied by the standard rate of corporation tax of 20% (2018: 20%). (418) 26Effects of:

Increase/(decrease) in unutilised management expenses 457 6

Overseas tax expensed (1) -






The fund has unrelieved excess management expenses resulting in a potential deferred tax asset of £516,000 (2018: £59,000). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these and therefore no deferred tax asset has been recognised.

8 Finance costs

31/10/19 31/10/18£'000 £'000



Final - 6


Final - 128


Final - 16

- 150

Add: Revenue deducted on cancellation of shares - 4


Net distributions for the year (1) 126

Interest/other

Short dividend payments 53 -



404 7



Net revenue after taxation for the year, per the Statement of Total Return (2,109) 126


Revenue shortfall transferred from capital 2,108 -

(1) 126

Details of the distributions per share are set out in the Distribution Statement.The W Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £128,000).The Lovewell Blake FP Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £16,000).The A Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: same).



104


9 Debtors

31/10/19 31/10/18£'000 £'000


Accrued revenue 7 -






31/10/19 31/10/18£'000 £'000


Cash and bank balances 2,638 201

Total cash and bank balances 4,166 271

11 Other creditors

31/10/19 31/10/18£'000 £'000

Amounts payable for cancellation of shares 244 -



Amounts payable on closure of derivative contract 2 -



Currency exposure



Euro 43,255 2 - 43,257

Japanese Yen 16,769 - - 16,769

UK Pound 117,954 4,164 408 122,526

US Dollar 89,875 (7) 7 89,875

Total 267,853 4,159 415 272,427

31/10/18 £'000 £'000 £'000 £'000

Euro 1,830 3 - 1,833

Indonesian Rupiah 1 - - 1

Japanese Yen 983 - - 983

Korean Won 10 34 - 44

UK Pound 11,830 234 202 12,266

US Dollar 6,947 - (44) 6,903

Total 21,601 271 158 22,030







105



Currency risk


Interest rate risk


Other price risk


Bond futures

The fund invests into futures to gain exposure to the bond markets. A 1% change in interest rates would lead to a change representing 0.70% of the fund's market value.

Equity derivatives




£'000 £'000 % £'000 %

Equity 18,885 3 0.01 - -

Mutual Fund 229,156 - - - -



Total 248,078 10 -



£'000 £'000 % £'000 %

Equity 18,570 10 0.06 - -

Mutual Fund 12,164 - - - -


Total 30,734 16 -



0.01 %

0.00 %


£'000 £'000 % £'000 %

Equity 1,874 1 0.04 - -

Mutual Fund 22,444 - - - -



Total 24,370 2 -



£'000 £'000 % £'000 %

Equity 1,860 - 0.03 - -

Mutual Fund 14,656 - - - -


Total 16,516 1 -



0.02 %

0.00 %



106



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000





268,819 (966) 21,633 (32)




A Accumulation Shares - 1,585,463 (19,040,224) 185,286,772 167,832,011

Lovewell Blake FP Accumulation Shares 3,772,372 11,950,562 (550,777) - 15,172,157

W Accumulation Shares 12,635,387 6,003,745 (3,547,765) 34,243,991 49,335,358

Y Accumulation Shares 918,799 10,448 (27,609) (901,638) -

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £265,000 (2018: £12,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5 and amounts receivable at the year end are included within the ACD fee rebate/waiver recoverable in note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £13,000 (2018: £5,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £21,381,000 and nil respectively (2018: £1,896,000 and £3,521,000).


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 101 - - - - - 101

BNP Paribas 26 - - - - - 26

HSBC Global Markets - 223 - - - 210 433

UBS - (823) 71 - - 918 166

Total 127 (600) 71 - - 1,128 726

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000


CIBC 16 - - - - - 16

Deutsche Bank - (12) - - - - (12)

HSBC Global Markets - (1) - - - - (1)

JP Morgan 4 - - - - - 4

Northern Trust (3) - - - - - (3)


UBS - - 23 - - 70 93

Total 8 (13) 23 - - 70 88


107



The fund has three share classes; Lovewell Blake FP Accumulation Shares, W Accumulation Shares and A Accumulation Shares. The annual management charge on each share class is as follows:A Accumulation Shares : 1.25%W Accumulation Shares : 0.50%Lovewell Blake FP Accumulation Shares : 0.45%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.






Lovewell Blake FP Accumulation Shares 111.32 112.20 0.79


108


for the year ended 31 October 2019Lovewell Blake FP Accumulation Shares - final distribution No. 2 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 0.4272

Group 2 - - - 0.4272



(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 1.0091

Group 2 - - - 1.0091



109


Investment Objective and PolicyThis fund targets an average annual return of 4% after the deduction of ongoing fund charges, over a typical market cycle of 5-7 years. The return target assumes the deduction of the ongoing charges figure (OCF) on the W share class. There is no guarantee that the target will be achieved by the fund.

The fund has a large exposure to lower risk investments (such as debt instruments including global government bonds, global corporate bonds and cash) with the aim of mitigating the risk of capital losses, however, an investor may not get back the full amount invested.




Performance and Portfolio ActivityThe fund delivered positive returns, with all asset groups contributing to performance. Within growth assets, underlying UK equity holdings added value, while positions in the US detracted from performance. Within hedging assets, holdings in global aggregate bonds and gold supported returns. We took some profits in iShares Physical Gold ETC and Investec Global Gold Fund. While we reduced our exposure to gold, we believe that the precious metal remains an attractive investment opportunity given the global trends towards protectionism. Within diversifying assets, we bought a position in PIMCO MLP & Energy Infrastructure Fund, which gives us exposure to the energy infrastructure sector. Within the US, we added a long position in the IXM Financial Select sector index.



31 October 2019


XXX SRRI




1 3 4 5 6 72














110





Return before operating charges* 1.87 10.39 (0.71) 4.96


Return after operating charges* - 9.10 (2.10) 3.42

Distributions - - (1.49) (1.27)

Retained distributions on accumulation shares - - 1.49 1.27



Performance

Return after charges 0% 7.6% (1.7%) 2.9%

Other information















Retained distributions on accumulation shares 0.01 0.67



Performance


Other information

Closing net asset value (£'000) 787 9

Closing number of shares 723,270 8,529








111



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 294 271

Expenses 6 (402) (99)


Net revenue/(expense) before taxation (151) 168

Taxation 7 (4) (13)

Net revenue/(expense) after taxation (155) 155


Distributions 8 - (155)




[BLANK] Note £'000 £'000 £'000 £'000






47,769 2,583


Retained distribution on accumulation shares 8 - 166


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 103 46





Liabilities:


Creditors







112




2 Equalisation





31/10/19 31/10/18£'000 £'000


Gains/(losses) on derivative contracts+ (232) 79




Management fee rebate to capital 2 -


+ These comprise:

Realised gains/(losses)++ 419 353

Unrealised gains/(losses) 2,953 (739)

Total 3,372 (386)


5 Revenue

31/10/19 31/10/18£'000 £'000

UK dividend distributions - 34






Bank interest 34 3


6 Expenses

31/10/19 31/10/18£'000 £'000






Depositary fees 5 2

5 2Other expenses:

Audit fee 10 10


36 11



113


7 Taxation

31/10/19 31/10/18£'000 £'000


UK corporation tax - 13


Double taxation relief - (1)



Net revenue/(expense) before taxation (151) 168



Increase/(decrease) in unutilised management expenses 42 -


Interest distributions (12) (21)




The fund has been invested in interest bearing assets of more than 60% for the entire financial year and therefore qualifies to make a gross interest distribution on all share classes (2018: the fund made a dividend distribution on all share classes).

8 Finance costs

31/10/19 31/10/18£'000 £'000



Final - 14


Final - 152


Final - -

- 166


Deduct: Revenue received on issue of shares - (26)

Net distributions for the year - 155

Interest/other




43 4



Net revenue after taxation for the year, per the Statement of Total Return (155) 155


Revenue shortfall transferred from capital 155 -

- 155

Details of the distributions per share are set out in the Distribution Statement.The Y Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £14,000).The W Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £152,000).The A Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: same).



114


9 Debtors

31/10/19 31/10/18£'000 £'000


Accrued revenue 2 -





31/10/19 31/10/18£'000 £'000




11 Other creditors

31/10/19 31/10/18£'000 £'000






Currency exposure



Euro 4,459 1 - 4,460


UK Pound 50,772 927 (200) 51,499

US Dollar 7,687 - 2 7,689

Total 63,838 928 (198) 64,568

31/10/18 £'000 £'000 £'000 £'000

Euro 729 2 - 731



Korean Won 10 34 - 44

UK Pound 10,211 173 15 10,399

US Dollar 2,217 5 - 2,222

Total 13,353 214 15 13,582



115






Euro 2,116 - 2,357 4,473


UK Pound 27,442 - 24,358 51,800

US Dollar - - 7,902 7,902

Total 29,558 - 35,537 65,095

31/10/18 £'000 £'000 £'000 £'000

Euro 166 - 572 738

Indonesian Rupiah - - 1 1


Korean Won 34 - 10 44

UK Pound 7,825 - 2,604 10,429

US Dollar 239 - 2,022 2,261

Total 8,264 - 5,394 13,658





Euro - - 13 13

UK Pound - - 64,869 64,869

US Dollar - - 213 213

Total - - 65,095 65,095

31/10/18 £'000 £'000 £'000 £'000

Euro - - 7 7

UK Pound - - 13,612 13,612

US Dollar - - 39 39

Total - - 13,658 13,658





Currency risk


Interest rate risk


Other price risk


Bond futures

The fund invests into futures to gain exposure to the bond markets. A 1% change in interest rates would lead to a change representing 0.53% of the fund's market value.

Equity derivatives



116




£'000 £'000 % £'000 %

Equity 4,122 1 0.02 - -

Mutual Fund 40,249 - - - -



Total 44,399 2 -



£'000 £'000 % £'000 %

Equity 4,103 2 0.06 - -



Total 6,668 3 -



0.01 %

0.00 %


£'000 £'000 % £'000 %

Equity 828 - 0.05 - -

Mutual Fund 14,342 - - - -



Total 15,285 1 -



£'000 £'000 % £'000 %

Equity 446 - 0.05 - -

Mutual Fund 11,756 - - - -



Total 12,292 1 -



0.02 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000


Level 1: Quoted prices 2,342 (68) 956 (1)



64,064 (226) 13,398 (45)


117





A Accumulation Shares - 14,803,155 (1,224,993) - 13,578,162

Lovewell Blake FP Accumulation Shares 8,529 721,621 (6,880) - 723,270



16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £45,000 (2018: £8,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £8,000 (2018: £13,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £1,398,000 and nil respectively (2018: £1,284,000 and £3,690,000).


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 24 - - - - - 24

BNP Paribas 13 - - - - - 13


UBS - (158) (15) - - 404 231

Total 37 (106) (15) - - 404 320

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000


CIBC 10 - - - - - 10

Deutsche Bank - (10) (1) - - - (11)


JP Morgan 3 - - - - - 3

Northern Trust (6) - - - - - (6)


UBS - - 33 - - 59 92

Total (19) (9) 32 - - 59 63










118


for the year ended 31 October 2019Lovewell Blake FP Accumulation Shares - final distribution No. 2 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 0.0133 - 0.0133 0.6741

Group 2 0.0074 0.0059 0.0133 0.6741



(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 1.4913

Group 2 - - - 1.4913



119


Investment Objective and PolicyThis fund targets an average annual return of 5.5% after the deduction of ongoing fund charges, over a typical market cycle of 5-7 years. The return target assumes the deduction of the ongoing charges figure (OCF) on the W share class. There is no guarantee that the target will be achieved by the fund.

The fund has exposure to higher risk investments (such as global equities, global emerging market equities, global smaller companies and global property securities) meaning that there is a risk of short-term price fluctuations and an investor may not get back the full amount invested.




Performance and Portfolio ActivityThe fund delivered positive returns, with all asset groups contributing to performance. Within growth assets, underlying UK, Europe ex-UK and US equity holdings added value. Within hedging assets, positions in gold and global aggregate bonds supported returns. We took some profits in iShares Physical Gold ETC and Investec Global Gold Fund. While we reduced our exposure to gold, we believe that the precious metal remains an attractive investment opportunity given the global trends towards protectionism. Within diversifying assets, we bought a position in PIMCO MLP & Energy Infrastructure Fund, which gives us exposure to the energy infrastructure sector. Within hedging assets, we purchased a position in Assenagon Alpha Volatility Fund.



31 October 2019


XXX SRRI




1 3 4 5 6 72














120








Distributions - (0.27) (0.30) - (1.61) (1.61)

Retained distributions on accumulation shares - 0.27 0.30 - 1.61 1.61



Performance


Other information














Distributions - (0.65)

Retained distributions on accumulation shares - 0.65



Performance


Other information










121



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 2,505 2,388

Expenses 6 (5,314) (1,045)


Net revenue/(expense) before taxation (3,351) 1,299


Net revenue/(expense) after taxation (3,432) 1,280


Distributions 8 1 (1,279)




[BLANK] Note £'000 £'000 £'000 £'000






461,091 6,357


Retained distribution on accumulation shares 8 - 1,337


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 1,408 671




Total assets 631,110 126,003

Liabilities:

Investment liabilities (2,167) (287)

Creditors







122




2 Equalisation





31/10/19 31/10/18£'000 £'000

Compensation payments - 15



Gains/(losses) on forward currency contracts+ 1,356 (223)






+ These comprise:



Total 44,934 (4,430)


5 Revenue

31/10/19 31/10/18£'000 £'000



Overseas dividend distributions 1,078 624





Bank interest 70 14


6 Expenses

31/10/19 31/10/18£'000 £'000







42 15Other expenses:

Audit fee 10 10


323 17



123


7 Taxation

31/10/19 31/10/18£'000 £'000








Increase/(decrease) in unutilised management expenses 891 27

Management fee rebate 1 -







The fund has unrelieved excess management expenses resulting in a potential deferred tax asset of £1,335,000 (2018: £444,000). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these and therefore no deferred tax asset has been recognised.

8 Finance costs

31/10/19 31/10/18£'000 £'000



Final - 104


Final - 153


Final - 1,053


Final - 27

- 1,337



Net distributions for the year (1) 1,279

Interest/other


Interest - 1



542 44

Total finance costs 541 1,323


Net revenue after taxation for the year, per the Statement of Total Return (3,432) 1,280



Revenue b/f - (1)

(1) 1,279


124


Details of the distributions per share are set out in the Distribution Statement.The A Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £104,000).The Y Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £153,000).The W Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £1053,000).The Lovewell Blake FP Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £27,000).


9 Debtors

31/10/19 31/10/18£'000 £'000






Total debtors 1,408 671


31/10/19 31/10/18£'000 £'000




11 Other creditors

31/10/19 31/10/18£'000 £'000






Currency exposure



Euro 92,443 - - 92,443

Japanese Yen 26,207 - - 26,207

UK Pound 342,848 9,227 637 352,712

US Dollar 156,810 - 17 156,827

Total 618,308 9,227 654 628,189

31/10/18 £'000 £'000 £'000 £'000

Euro 12,067 - - 12,067


Japanese Yen 5,483 - - 5,483

Korean Won 95 232 - 327

UK Pound 72,587 1,362 494 74,443

US Dollar 33,212 - 1 33,213

Total 123,451 1,594 495 125,540



125





Currency risk


Interest rate risk


Other price risk


Bond futures

The fund invests into futures to gain exposure to the bond markets. A 1% change in interest rates would lead to a change representing 0.94% of the fund's market value (2018: At the year end the fund held no bond derivatives that could impact it significantly)..

Equity derivatives




£'000 £'000 % £'000 %

Equity 46,037 10 0.02 - -

Mutual Fund 456,634 - - - -



Total 502,981 22 -



£'000 £'000 % £'000 %

Equity 43,939 24 0.05 - -

Mutual Fund 45,147 - - - -


Total 89,086 32 -



0.01 %

0.00 %


£'000 £'000 % £'000 %

Equity 5,592 2 0.04 - -

Mutual Fund 132,857 - - - -



Total 139,115 9 -



£'000 £'000 % £'000 %

Equity 4,736 2 0.04 - -

Mutual Fund 121,504 1 - - -



Total 126,837 9 -



0.02 %

0.00 %


126




31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000



Level 2: Observable market data 598,944 (1,840) 116,825 (277)


620,475 (2,167) 123,738 (287)




A Accumulation Shares 38,501,048 22,670,867 (55,821,136) 511,931,517 517,282,296

Lovewell Blake FP Accumulation Shares 4,112,567 19,694,304 (1,045,351) - 22,761,520



16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £544,000 (2018: £86,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £174,000 (2018: £130,000) are included in Note 5 and amounts receivable at the year end of nil (2018: £13,000) are included within accrued revenue in Note 9.During the year, the aggregate value of purchases and sales in Fidelity funds were £28,715,000 and nil respectively (2018: £6,112,000 and £27,041,000).


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 233 - - - - - 233

BNP Paribas 71 - - - - - 71

HSBC Global Markets - 516 - - - 570 1,086

UBS - (1,841) 360 - - 1,705 224

Total 304 (1,325) 360 - - 2,275 1,614

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000


CIBC 89 - - - - - 89

Deutsche Bank - (105) - - - 90 (15)


JP Morgan 22 - - - - - 22

Northern Trust (32) - - - - - (32)


UBS - - 211 - - 325 536

Total (32) (100) 211 - - 415 494


127











128




(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 0.2706

Group 2 - - - 0.2706



(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 1.6126

Group 2 - - - 1.6126

xxx xxx xxx xxx xxxLovewell Blake FP Accumulation Shares - final distribution No. 2 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 0.6544

Group 2 - - - 0.6544



129



The fund has exposure to both higher risk investments (such as global equities, global emerging market equities, global smaller companies and global property securities) and lower risk investments (such as debt instruments including global government bonds, global corporate bonds and cash) meaning that there is a moderate risk of capital losses and an investor may not get back the full amount invested.



Asset allocation exposure of the fund will be actively managed within the following parameters: 20-60% equity, 5-80% debt instruments (which may include high yield and emerging market debt), 0-30% cash and 0-30% alternatives (such as infrastructure securities and Real Estate Investment Trusts).

Performance and Portfolio ActivityThe fund delivered positive returns, with all asset groups contributing to performance. Within growth assets, underlying UK and US equity holdings added value. Within hedging assets, positions in gold and global aggregate bonds supported returns. We took some profits in iShares Physical Gold ETC and Investec Global Gold Fund. While we reduced our exposure to gold, we believe that the precious metal remains an attractive investment opportunity given the global trends towards protectionism. Within diversifying assets, we bought a position in PIMCO MLP & Energy Infrastructure Fund, which gives us exposure to the energy infrastructure sector. Within the US, we added a long position in the IXM Financial Select sector index.



31 October 2019


XXX SRRI


I Accumulation Shares 4



1 3 4 5 6 72














130


A Accumulation Shares I Accumulation Shares





Return after operating charges* 2.08 (3.45) 8.52 -

Distributions - (0.88) (0.97) (0.04)

Retained distributions on accumulation shares - 0.88 0.97 0.04



Performance


Other information

Closing net asset value (£'000) 102,675 158 166 9,936

Closing number of shares 66,318,845 110,251 113,506 9,493,337






W Accumulation Shares Lovewell Blake FP Accumulation Shares

Change in net assets (pence per share) 2019 2018 2017 2019 2018

Opening net asset value per share* 126.56 128.71 120.45 101.11 100.00

Return before operating charges* 12.86 (0.74) 9.71 10.28 2.03

Operating charges (1.41) (1.41) (1.45) (0.90) (0.92)

Return after operating charges* 11.45 (2.15) 8.26 9.38 1.11

Distributions - (1.69) (1.66) - (0.65)

Retained distributions on accumulation shares - 1.69 1.66 - 0.65

Closing net asset value per share 138.01 126.56 128.71 110.49 101.11

*after direct transaction costs of 0.01 0.01 0.01 0.01 0.01

Performance

Return after charges 9.1% (1.7%) 6.9% 9.3% 1.1%

Other information

Closing net asset value (£'000) 574,616 74,088 69,466 11,487 3,341

Closing number of shares 416,343,970 58,539,864 53,972,148 10,395,722 3,304,205

Operating charges 1.04% 1.10% 1.16% 0.84% 0.90%

Direct transaction costs 0.01% 0.02% 0.02% 0.01% 0.02%


Highest share price 140.00 132.10 129.20 112.00 105.50

Lowest share price 124.80 123.70 117.50 99.72 99.99



131



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 2,540 2,244

Expenses 6 (3,930) (902)






Distributions 8 (19) (1,566)




[BLANK] Note £'000 £'000 £'000 £'000






541,429 15,213


Retained distribution on accumulation shares 8 4 1,118


Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 2,545 397




Total assets 701,539 116,690

Liabilities:

Investment liabilities (2,049) (349)

Creditors


Distribution payable - (111)






132




2 Equalisation





31/10/19 31/10/18£'000 £'000










+ These comprise:



Total 43,208 (3,604)


5 Revenue

31/10/19 31/10/18£'000 £'000

UK dividend distributions (6) 474

Unfranked UK dividend distributions - 1






Bank interest 122 6


6 Expenses

31/10/19 31/10/18£'000 £'000





3,631 872Payable to the Depositary, associates of the Depositary, and agents of either of them:



Audit fee 10 10


258 17

Total expenses 3,930 902


133


7 Taxation

31/10/19 31/10/18£'000 £'000


UK corporation tax - 45







ACD fee waiver to capital 7 -


Increase/(decrease) in unutilised management expenses 542 -


Overseas tax expensed (3) -





The fund has unrelieved excess management expenses resulting in a potential deferred tax asset of £542,000 (2018: -). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these and therefore no deferred tax asset has been recognised.

8 Finance costs

31/10/19 31/10/18£'000 £'000



Final - 1

A Income Shares*

Final - 52

Interim 9 222

I Accumulation Shares

Final 4 -

Y Income Shares

Final - 59

Interim 6 206


Final - 109


Final - 987


Final - 21

19 1,657



Net distributions for the year 19 1,566

Interest/other




631 39



134








19 1,566

Details of the distributions per share are set out in the Distribution Statement.The A Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £1,000).The W Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £987,000).The Lovewell Blake FP Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £21,000).


9 Debtors

31/10/19 31/10/18£'000 £'000

Amounts receivable for issue of shares 1,552 312




UK corporation tax recoverable 4 -



31/10/19 31/10/18£'000 £'000




11 Other creditors

31/10/19 31/10/18£'000 £'000







Currency exposure



Euro 81,475 - - 81,475

Japanese Yen 17,623 - - 17,623

UK Pound 471,590 10,165 1,769 483,524

US Dollar 116,092 (17) 17 116,092

Total 686,780 10,148 1,786 698,714


135


31/10/18 £'000 £'000 £'000 £'000

Euro 8,996 - - 8,996


Japanese Yen 2,495 - - 2,495

Korean Won 85 209 - 294

UK Pound 79,911 1,175 107 81,193

US Dollar 23,066 - 1 23,067

Total 114,560 1,384 108 116,052






Euro - - 81,612 81,612

Japanese Yen - - 17,623 17,623

UK Pound 72,897 - 411,385 484,282

US Dollar 15 - 118,007 118,022

Total 72,912 - 628,627 701,539

31/10/18 £'000 £'000 £'000 £'000

Euro - - 9,051 9,051

Indonesian Rupiah - - 7 7

Japanese Yen - - 2,495 2,495

Korean Won 210 - 85 295

UK Pound 11,379 - 70,102 81,481

US Dollar - - 23,361 23,361

Total 11,589 - 105,101 116,690





Euro - - 137 137

UK Pound - - 699,472 699,472

US Dollar - - 1,930 1,930

Total - - 701,539 701,539

31/10/18 £'000 £'000 £'000 £'000

Euro - - 55 55

UK Pound - - 116,342 116,342

US Dollar - - 293 293

Total - - 116,690 116,690






Currency risk


Interest rate risk



136


Other price risk


Bond futures

The fund invests into futures to gain exposure to the bond markets. A 1% change in interest rates would lead to a change representing 0.83% of the fund's market value (2018: At the year end the fund held no futures that could impact it significantly).

Equity derivatives




£'000 £'000 % £'000 %

Equity 47,902 8 0.02 - -

Mutual Fund 496,255 - - - -



Total 544,365 19 -



£'000 £'000 % £'000 %

Equity 45,979 27 0.06 - -

Mutual Fund 27,994 - - - -


Total 73,973 34 -



0.01 %

0.00 %


£'000 £'000 % £'000 %

Equity 8,663 4 0.05 - -

Mutual Fund 114,467 - - - -



Total 123,581 10 -



£'000 £'000 % £'000 %

Equity 8,633 3 0.04 - -

Mutual Fund 98,619 1 - - -



Total 108,232 9 -



0.02 %

0.00 %



137



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000



Level 2: Observable market data 664,448 (1,686) 107,600 (343)


688,829 (2,049) 114,909 (349)




A Accumulation Shares 110,251 9,969,232 (4,126,734) 60,366,096 66,318,845

A Income Shares 43,720,215 47,958,211 (10,402,371) (81,276,055) -

I Accumulation Shares - 9,493,631 (294) - 9,493,337

Lovewell Blake FP Accumulation Shares 3,304,205 7,378,359 (286,842) - 10,395,722


Y Accumulation Shares 7,793,445 2,092,673 (37,870) (9,848,248) -

Y Income Shares 46,885,772 12,096,092 (6,059,418) (52,922,446) -

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £445,000 (2018: £78,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Income received from Fidelity funds of £84,000 (2018: £167,000) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £22,719,000 and nil respectively (2018: £10,718,000 and £33,720,000).


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 258 - - - - - 258

BNP Paribas 117 - - - - - 117

HSBC Global Markets - 568 - - - 620 1,188

UBS - (1,686) 361 - - 2,334 1,009

Total 375 (1,118) 361 - - 2,954 2,443

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000


CIBC 84 - - - - - 84

Deutsche Bank - (81) - - - - (81)


JP Morgan 21 - - - - - 21

Northern Trust (50) - - - - - (50)


UBS - - 210 - - 290 500

Total (127) (78) 210 - - 290 295


138



The fund has four share classes; Lovewell Blake FP Accumulation Shares, I Accumulation Shares, W Accumulation Shares and A Accumulation Shares. The annual management charge on each share class is as follows:A Accumulation Shares : 1.25%I Accumulation Shares : 0.50%W Accumulation Shares : 0.50%Lovewell Blake FP Accumulation Shares : 0.45%The distributions per share class are given in the Distribution Statement. All classes have the same rights on winding up.





I Accumulation Shares 104.66 105.59 0.89




139




(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 0.8832

Group 2 - - - 0.8832

xxx xxx xxx xxx xxxY Income Shares - interim distribution in pence per share^Group 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased 1 November 2018 to 31 January 2019.


(Note 2)

Amount distributed

31/03/19

Amount distributed

31/03/18

Group 1 0.0138 - 0.0138 0.1957

Group 2 0.0058 0.0080 0.0138 0.1957



(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 1.6859

Group 2 - - - 1.6859

xxx xxx xxx xxx xxxLovewell Blake FP Accumulation Shares - final distribution No. 2 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 0.6464

Group 2 - - - 0.6464

xxx xxx xxx xxx xxxA Income Shares - interim distribution in pence per share^Group 1 - Distribution No.61 Shares purchased on or before 31 October 2018Group 2 - Distribution No.61 Shares purchased from 1 November 2018 to 31 January 2019


(Note 2)

Amount distributed

31/03/19

Amount distributed

31/03/18

Group 1 0.0190 - 0.0190 0.2111

Group 2 0.0061 0.0129 0.0190 0.2111

xxx xxx xxx xxx xxxI Accumulation Shares - final distribution No.1 in pence per share^Group 1 - Shares purchased on or before 15 May 2019.Group 2 - Shares purchased from 16 May 2019 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Group 1 0.0410 - 0.0410

Group 2 0.0391 0.0019 0.0410



140



The fund has a large exposure to equities meaning that it is likely to experience short-term price fluctuations in line with these markets and an investor may not get back the full amount invested.




Performance and Portfolio ActivityThe fund delivered positive returns, with all asset groups contributing to performance. Within growth assets, underlying US, Europe ex-UK and emerging market equity holdings added value. Within hedging assets, positions in gold supported returns. We took some profits in Investec Global Gold Fund and sold the holding in iShares Physical Gold ETC. While we reduced our exposure to gold, we believe that the precious metal remains an attractive investment opportunity given the global trends towards protectionism. Elsewhere, we added long positions in the IXM Financial Select sector index in the US and in the EURO Stoxx Bank index in Europe ex-UK.



31 October 2019


XXX SRRI




1 3 4 5 6 72













141





Return before operating charges* 21.45 2.21 23.25 20.28 1.90 21.26



Distributions - - - - (0.72) (0.57)

Retained distributions on accumulation shares - - - - 0.72 0.57



Performance


Other information

Closing net asset value (£'000) 113,724 14,476 15,810 1,238,215 188,168 195,604



Direct transaction costs 0.01% 0.02% 0% 0.01% 0.02% 0%














Performance


Other information

Closing net asset value (£'000) 2,072 179

Closing number of shares 1,788,795 172,506








142



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 8,351 7,979

Expenses 6 (9,870) (5,689)



Taxation 7 (530) (120)



Distributions 8 (1) (1,958)




[BLANK] Note £'000 £'000 £'000 £'000






613,808 (49,011)


Retained distribution on accumulation shares 8 1 1,874

Closing net assets attributable to shareholders 1,354,011 628,017

Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets

Investments 1,346,302 625,221

Current assets:

Debtors 9 1,330 669




Total assets 1,360,971 630,429

Liabilities:

Investment liabilities (4,938) (1,101)

Creditors


Other creditors 11 (1,988) (1,311)

Total other liabilities (2,022) (1,311)


Net assets attributable to shareholders 1,354,011 628,017


143




2 Equalisation





31/10/19 31/10/18£'000 £'000


Gains/(losses) on derivative contracts+ (1,815) 5,542

Gains/(losses) on forward currency contracts+ 3,592 12





+ These comprise:



Total 115,103 (3,169)


5 Revenue

31/10/19 31/10/18£'000 £'000

UK dividend distributions (10) 2,050

Unfranked UK dividend distributions - 7

Overseas dividend distributions 6,067 3,595

Interest distributions 77 -



ACD fee rebate/waiver to income 1,138 1,427

Bank interest 44 28


6 Expenses

31/10/19 31/10/18£'000 £'000



Registrar fees 1,136 667





Audit fee 10 10

Other operating expenses 1,528 41

1,538 51



144


7 Taxation

31/10/19 31/10/18£'000 £'000









Increase/(decrease) in unutilised management expenses 1,722 732

Overseas tax expensed - (17)



Revenue not included for tax purposes (1,220) (1,129)



The fund has unrelieved excess management expenses resulting in a potential deferred tax asset of £3,639,000 (2018: £1,917,000). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these and therefore no deferred tax asset has been recognised.

8 Finance costs

31/10/19 31/10/18£'000 £'000



Final - 1,021


Final - 852


Final 1 1

1 1,874


Deduct: Revenue received on issue of shares - (7)

Net distributions for the year 1 1,958

Interest/other


Interest 15 5



994 259





Revenue shortfall transferred from capital 3,044 47

1 1,958

Details of the distributions per share are set out in the Distribution Statement.The A Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: same).The Y Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £1021,000).The W Accumulation Shares have an excess of expenses over revenue for the current year and therefore there is no accumulation (2018: £852,000).



145


9 Debtors

31/10/19 31/10/18£'000 £'000




ACD fee rebate/waiver recoverable 1,138 524

UK income tax recoverable - 2



31/10/19 31/10/18£'000 £'000

Amounts held at futures clearing houses and brokers 8,197 1,115



11 Other creditors

31/10/19 31/10/18£'000 £'000

Amounts payable for cancellation of shares 1,103 837


Amounts payable on closure of derivative contract 7 1

Total other creditors 1,988 1,311


Currency exposure


Non-monetary exposures Monetary exposures Monetary exposures Total exposure31/10/19 £'000 £'000 £'000 £'000Currency Investments^ Cash balances Debtors/(Creditors)

Euro 222,210 - - 222,210

Japanese Yen 112,461 - - 112,461

UK Pound 274,511 13,333 (691) 287,118

US Dollar 732,188 (34) 33 732,222

Total 1,341,370 13,299 (658) 1,354,011

31/10/18 £'000 £'000 £'000 £'000

Euro 49,432 - - 49,432


Japanese Yen 54,149 - - 54,149

Korean Won 533 992 - 1,525

UK Pound 178,498 3,536 (648) 181,386

US Dollar 341,479 3 6 341,488

Total 624,128 4,531 (642) 628,017







146



Currency risk


Other price risk


Equity derivatives




£'000 £'000 % £'000 %

Equity 51,983 8 0.02 - -

Mutual Fund 746,801 - - - -



Total 799,765 41 -



£'000 £'000 % £'000 %

Equity 38,643 22 0.06 - -

Mutual Fund 151,980 - - - -


Total 190,623 44 -



0.01 %

0.00 %


£'000 £'000 % £'000 %

Equity 42,303 21 0.05 - -

Mutual Fund 667,260 - - - -



Total 711,610 65 -



£'000 £'000 % £'000 %

Equity 35,904 9 0.02 - -

Mutual Fund 710,330 - - - -



Total 746,236 49 -



0.02 %

0.00 %



147



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000



Level 2: Observable market data 1,279,363 (4,164) 574,829 (1,047)


1,346,308 (4,938) 625,229 (1,101)




A Accumulation Shares 8,535,025 7,740,267 (4,898,432) 49,296,475 60,673,335

Lovewell Blake FP Accumulation Shares 172,506 1,663,185 (46,896) - 1,788,795


Y Accumulation Shares 245,301,997 146,966 (4,397,851) (241,051,112) -

16 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 11.Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £824,000 (2018: £457,000) are included within accrued expenses in Note 11.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5.Amounts recoverable at the year end in respect of ACD fee rebate/waiver are included within ACD fee rebate/waiver recoverable in Note 9.Income received from Fidelity funds of £150,000 (2018: nil) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £79,916,000 and £5,179,000 respectively (2018: £142,536,000 and £178,149,000).


31/10/19



£'000 £'000 £'000 £'000 £'000 £'000 £'000

BBH 358 - - - - - 358

HSBC Global Markets - 1,114 - - - 1,110 2,224

UBS - (4,164) (542) - - 3,852 (854)

Total 358 (3,050) (542) - - 4,962 1,728

31/10/18



£'000 £'000 £'000 £'000 £'000 £'000 £'000


CIBC 459 - - - - - 459

Deutsche Bank - (475) - - - 30 (445)


JP Morgan 115 - - - - - 115



UBS - - 1,207 - - 1,085 2,292

Total 324 (404) 1,207 - - 1,115 2,242


148











149


for the year ended 31 October 2019W Accumulation Shares - final distribution No. 7 in pence per share^Group 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 - - - 0.7202

Group 2 - - - 0.7202

xxx xxx xxx xxx xxx^Share class closures, conversions, mergers and renames have been completed during the year. Please refer to the Changes to the Prospectus on page 3.Lovewell Blake FP Accumulation Shares - final distribution No. 2 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 0.0691 - 0.0691 0.2937

Group 2 0.0688 0.0003 0.0691 0.2937

xxx xxx xxx xxx xxx


150


Investment Objective and PolicyThe aim of the fund is to increase the value of your investment over a period of 5 years or more from global exposure to a diversified range of assets.

The fund invests at least 80% into a portfolio of funds from the Fidelity Select 50 list of funds (which may include funds managed by Fidelity).

The fund has exposure to a balance of both higher risk assets (like equities and non-investment grade debt instruments) and lower risk assets (such as investment grade debt instruments and cash). The Portfolio Manager will tactically alter the balance between these risk assets in accordance with the opportunities for producing returns over a typical market cycle of 5-7 years while balancing this with the aim of maintaining a moderate risk profile.

Asset allocation exposure of the fund will be actively managed subject to it remaining within the following parameters: 30-70% equity, 20-60% debt instruments (which may include investment grade and non-investment grade debt instruments (such as high yield and emerging market debt)) and alternatives and 0-20% cash. The fund is actively managed without reference to a benchmark.

The fund can also invest directly into other collective investment schemes, transferable securities, money market instruments, cash and deposits, and is also able to use derivatives for efficient portfolio management and investment purposes.

Performance and Portfolio ActivityThe fund delivered positive returns over the period, largely due to the fixed income segment. Specifically, the exposure to UK fixed income holdings contributed to performance. The allocation to commodities and UK equities also supported returns. Within equities, holdings in Schroders Tokyo Fund and Henderson Emerging Market Opportunities Fund were sold. Meanwhile, a position was purchased in Liontrust UK Growth Fund. Within the fixed income line-up, a holding was purchased in Jupiter Strategic Bond Fund.

OutlookWe believe that decelerating global growth could stabilise at subdued but near-trend levels going into next year. Consequently, caution is warranted in the current economic environment.

Ayesha Akbar & Sarah Jane CawthrayFund Managers

31 October 2019


XXX SRRI

PI Accumulation Shares 4

1 3 4 5 6 72














151


PI Accumulation Shares


Opening net asset value per share 99.34 100.00

Return before operating charges** 9.55 0.61


Return after operating charges* 8.25 (0.66)




*after direct transaction costs of - -

Performance

Return after charges 8.3% (0.7%)

Other information




Direct transaction costs 0% 0%




*The fund launched on 21 February 2018.


152



[BLANK] Note £'000 £'000 £'000 £'000

Income


Revenue 5 1,080 305

Expenses 6 (461) (131)










[BLANK] Note £'000 £'000 £'000 £'000

Opening net assets attributable to shareholders 46,115 -



Amounts payable on cancellation of shares (1,916) (321)

34,918 47,041




Balance Sheet

as at 31 October 201931/10/19 31/10/18

[BLANK] Note £'000 £'000 £'000 £'000

Assets


Current assets:

Debtors 9 255 876


Total other assets 374 990


Liabilities:Creditors






153




2 Equalisation





31/10/19 31/10/18£'000 £'000


Other currency gains/(losses) (5) 3




Gains/(losses) on forward currency contracts+ 54 -


+ These comprise:

Realised gains/(losses)++ 765 61


Total 4,559 (1,205)


5 Revenue

31/10/19 31/10/18£'000 £'000







Bank interest 1 -


6 Expenses

31/10/19 31/10/18£'000 £'000






Depositary fees 8 2

8 2Other expenses:

Audit fee 10 10


14 11



154


7 Taxation

31/10/19 31/10/18£'000 £'000















8 Finance costs

31/10/19 31/10/18£'000 £'000

DistributionsThe distribution takes account of revenue received on the issue of shares and revenue deducted on cancellation of shares.

PI Accumulation Shares

Final 661 291




Interest/other

Interest 1 1


Details of the distribution per share is set out in the Distribution Statement.

9 Debtors

31/10/19 31/10/18£'000 £'000








10 Other creditors

31/10/19 31/10/18£'000 £'000






155



Currency exposure



Euro 2,077 - - 2,077

UK Pound 82,293 119 76 82,488

US Dollar 1,707 - - 1,707

Total 86,077 119 76 86,272

31/10/18 £'000 £'000 £'000 £'000

UK Pound 44,385 114 248 44,747

US Dollar 1,368 - - 1,368

Total 45,753 114 248 46,115






Euro - - 2,077 2,077

UK Pound 3,520 - 79,147 82,667

US Dollar - - 1,707 1,707

Total 3,520 - 82,931 86,451

31/10/18 £'000 £'000 £'000 £'000

UK Pound 21,561 - 23,814 45,375

US Dollar 1,368 - - 1,368

Total 22,929 - 23,814 46,743





UK Pound - - 86,451 86,451

Total - - 86,451 86,451

31/10/18 £'000 £'000 £'000 £'000

UK Pound - - 46,743 46,743

Total - - 46,743 46,743

^ Includes £86,272,000 in respect of the fund's liability to redeem all shares (2018: £46,115,000).


The only interest bearing financial instruments in the fund are its bank balances and/or amounts held at futures clearing houses and brokers.




Currency risk


Interest rate risk


Other price risk



156




£'000 £'000 % £'000 %

Equity 103 - 0.06 - -

Mutual Fund 64,211 - - - -


Total 64,391 - -



£'000 £'000 % £'000 %

Equity 693 - 0.05 - -

Mutual Fund 27,844 - - - -


Total 28,577 - -



0.00 %

0.00 %


£'000 £'000 % £'000 %

Equity 663 1 0.08 - -

Mutual Fund 49,160 - - - -

Total 49,823 1 -



£'000 £'000 % £'000 %


Total 2,865 - -



0.00 %

0.00 %



31/10/19 31/10/19 31/10/18 31/10/18£'000 £'000 £'000 £'000


Level 1: Quoted prices - - 677 -

Level 2: Observable market data 86,077 - 45,076 -


86,077 - 45,753 -




PI Accumulation Shares 46,420,063 35,584,210 (1,820,552) 80,183,721


157


15 Related parties

The ACD, FIL Investment Services (UK) Limited, is regarded as a related party under FRS 102 because it provides key management personnel services to the authorised fund.The ACD acts as principal on all transactions of shares in the fund. The aggregate monies received through issues and paid through cancellations are disclosed in the Statement of Change in Net Assets Attributable to Shareholders, and the amounts due to, and from, the ACD in respect of share transactions at the year end are disclosed in Notes 9 and 10.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to capital are included in note 4.Amounts rebated from the ACD in respect of the ACD fee rebate/waiver to income are included in note 5 and amounts receivable at the year end are included within the ACD fee rebate/waiver recoverable in note 9.The fund invests in other Fidelity funds, all transactions in respect of which are transacted with FIL Investment Services (UK) Limited.Amounts due at the year end in respect of investments purchased of nil (2018: £184,000) are included within purchases awaiting settlement in Note 10.Income received from Fidelity funds of £94,000 (2018: nil) is included in Note 5.During the year, the aggregate value of purchases and sales in Fidelity funds were £14,050,000 and £5,141,000 respectively (2018: £12,412,000 and £1,159,000).Amounts paid to the ACD in respect of services provided are disclosed in Note 6. Amounts due at the year end of £47,000 (2018: £24,000) are included within accrued expenses in Note 10.


31/10/19

BrokerCurrency Contracts CFD Futures Swaps Options Grand Total

£'000 £'000 £'000 £'000 £'000 £'000

Bank of America 1 - - - - 1

BNP Paribas 10 - - - - 10

Total 11 - - - - 11


The fund has one share class; PI Accumulation Shares. The annual management charge is as follows:PI Accumulation Shares : 0.50%The distributions per share class are given in the Distribution Statement.




PI Accumulation Shares 107.59 109.40 1.68


158


for the year ended 31 October 2019PI Accumulation Shares - final distribution No. 2 in pence per shareGroup 1 - Shares purchased on or before 31 October 2018.Group 2 - Shares purchased from 1 November 2018 to 31 October 2019.


(Note 2)

Amount accumulated

31/12/19

Amount accumulated

31/12/18

Group 1 0.8249 - 0.8249 0.6272

Group 2 0.5580 0.2669 0.8249 0.6272

xxx xxx xxx xxx xxx

Portfolio Statement


159

as at 31 October 2019

Percentage Holdings/ Market value/ of total Holdings Unrealised gain/(loss) net assets Equivalent Portfolio of investments £’000 %

Global Equities - (58.63%)

670,993 Fidelity Index World Fund F Acc 16,316 31.03

302,172 Fidelity Index US Fund F Acc 9,223 17.54

170,625 Fidelity Index Europe ex UK Fund F Acc 2,605 4.95

74,181 Fidelity Index Japan Fund F Acc 1,270 2.42

61,357 Fidelity Index UK Fund F Acc 842 1.60

39,738 Fidelity Index Pacific ex Japan Fund F Acc 665 1.26

30,921 58.80

Financials - (14.05%)

112,852 iShares Core MSCI World UCITS 5,199 9.89

356,210 iShares MSCI World Small Cap UCITS ETF 1,425 2.71

24,274 iShares Developed Markets Property Yield UCITS ETF 536 1.02

5,076 iShares MSCI Canada UCITS ETF (USD) 517 0.98

7,677 14.60

Global Emerging Equities - (9.82%)

338,392 Fidelity Index Emerging Markets F Acc 5,295 10.07

5,295 10.07

Global REITS - (9.64%)

1,898,370 iShares Global Property Securities Equity Index Fund (UK) 4,588 8.72

4,588 8.72

Global Smaller Companies - (4.80%)

3,555,886 L&G Global Small Cap Equity Index Fund 3,818 7.26

3,818 7.26

Cash Funds/Money Market Funds - (2.36%)

0 Fidelity Institutional Liquidity Fund - Sterling C Acc 2 0.00

2 0.00

Global Government Bonds - (0.00%)

807 iShares Overseas Government Bond Index Fund L Acc 1 0.00

100 HSBC Global Funds ICAV - Global Government Bond Index Fund 1 0.00

2 0.00

Global Corporate Bonds - (0.00%)

708 iShares Overseas Corporate Bond Index Fund L Acc 1 0.00

1 0.00

Portfolio Statement


160



Forward Foreign Exchange Contracts - (0.07%)

875,000 Bought HKD sold USD @ 0.127533 for settlement 26/11/2019 0 0.00

57,000 Bought JPY sold USD @ 0.009220 for settlement 26/11/2019 0 0.00

21,664,000 Bought KRW sold USD @ 0.000849 for settlement 26/11/2019 0 0.00

271,000 Bought MXN sold USD @ 0.051855 for settlement 26/11/2019 0 0.00

7,914,000 Bought RUB sold USD @ 0.015537 for settlement 26/11/2019 0 0.00

17,592 Bought USD sold TWD @ 30.469226 for settlement 26/11/2019 0 0.00

220,532 Bought USD sold EUR @ 0.897827 for settlement 26/11/2019 0 0.00

200,970 Bought USD sold GBP @ 0.776235 for settlement 26/11/2019 (1) 0.00

(1) 0.00

Portfolio of investments 52,303 99.45

Cash and other net assets/(liabilities) 284 0.55

Net assets 52,587 100.00

The figures in brackets represent the sector distributions at 31 October 2018. Where securities are reclassified in the current period comparative percentages have been restated.The percentage of net assets disclosed above is subject to rounding.Unless otherwise stated, all holdings are on an official stock exchange listing or are permitted collective investment schemes.Where the holdings/holdings equivalent value is reported to be nil this is due to a fractional share position.

Portfolio Statement


161








55,194 Fidelity Index UK Fund F Acc 757 1.03


35,261 48.16



682,119 iShares Global Government Bond UCITS ETF GBP Hedged 3,617 4.94

454,663 iShares Global Corporate Bond UCITS ETF GBP Hedged 2,388 3.26




1,095 iShares Core Corporate Bond UCITS ETF 166 0.23

13,811 18.86



5,895 8.05


470,673 HSBC Global Funds ICAV - Global Government Bond Index Fund 5,131 7.01

5,131 7.01



5,088 6.95



4,321 5.90


1,937,216 iShares Overseas Corporate Bond Index Fund L Acc 3,144 4.29

3,144 4.29

Forward Foreign Exchange Contracts - ((0.20)%)

(3,930,512) Bought GBP sold USD @ 1.288270 for settlement 26/11/2019 20 0.03

1,022,000 Bought HKD sold USD @ 0.127533 for settlement 26/11/2019 0 0.00



34,039 Bought USD sold JPY @ 108.459870 for settlement 26/11/2019 0 0.00

167,089 Bought USD sold GBP @ 0.772043 for settlement 26/11/2019 0 0.00

1,221,839 Bought USD sold EUR @ 0.897827 for settlement 26/11/2019 (3) 0.00

17 0.02

Portfolio Statement


162





2 0.00



Net assets 73,212 100.00


Portfolio Statement


163




2,959,207 iShares Global Government Bond UCITS ETF GBP Hedged 15,692 19.58

2,000,943 iShares Global Corporate Bond UCITS ETF GBP Hedged 10,511 13.11

4,878 iShares Core Corporate Bond UCITS ETF 739 0.92

98,136 iShares MSCI World Small Cap UCITS ETF 393 0.49


27,720 34.58


2,074,070 HSBC Global Funds ICAV - Global Government Bond Index Fund 22,612 28.21

22,612 28.21



13,847 17.28



11,165 13.93



1,612 2.01



1,190 1.48


479,825 iShares Global Property Securities Equity Index Fund (UK) 1,160 1.45

1,160 1.45



339,225 Bought USD sold GBP @ 0.769402 for settlement 26/11/2019 1 0.00

539,831 Bought USD sold CAD @ 1.317081 for settlement 26/11/2019 0 0.00

175,931 Bought USD sold JPY @ 108.459870 for settlement 26/11/2019 (1) 0.00

4,569,921 Bought USD sold EUR @ 0.897827 for settlement 26/11/2019 (8) (0.01)

85 0.11



3 0.00



Net assets 80,156 100.00


Portfolio Statement


164




3,940,685 Fidelity Index World Fund F Acc 95,824 29.85




89,074 Fidelity Index UK Fund F Acc 1,222 0.38


116,938 36.43





1,197,157 iShares MSCI World Small Cap UCITS ETF 4,790 1.49

109,209 iShares Developed Markets Property Yield UCITS ETF 2,414 0.75

9,789 iShares Core Corporate Bond UCITS ETF 1,483 0.46


77,344 24.09



44,892 13.98



27,477 8.56


1,232,628 Fidelity Index Emerging Markets F Acc 19,286 6.01

19,286 6.01



16,117 5.02



14,177 4.42



(899,540) Bought GBP sold USD @ 1.283224 for settlement 26/11/2019 7 0.00





1,483,078 Bought USD sold GBP @ 0.772043 for settlement 26/11/2019 (1) 0.00

118,223 Bought USD sold AUD @ 1.463340 for settlement 26/11/2019 (1) 0.00



165 0.05

Portfolio Statement


165





3 0.00


Cash and other net assets/(liabilities) 4,608 1.44

Net assets 321,007 100.00


Portfolio Statement


166




1,754,066 Fidelity Index World Fund F Acc 42,654 27.87

42,654 27.87





7,059 iShares Core Corporate Bond UCITS ETF 1,069 0.70


40,336 26.36



32,601 21.30



19,961 13.04



6,160 4.03



5,202 3.40



4,576 2.99



(479,926) Bought GBP sold USD @ 1.283224 for settlement 26/11/2019 4 0.00




823,789 Bought USD sold GBP @ 0.772043 for settlement 26/11/2019 (1) 0.00



123 0.08



2 0.00



Net assets 153,043 100.00


Portfolio Statement


167



High Yield - (23.66%)

453,012 Fidelity Funds - Global Hybrids Bond Fund Y USD 3,799 5.59

603,143 Fidelity Funds - Asian High Yield Fund A MDist USD 3,725 5.48

171,559 Fidelity Funds - US High Yield Fund A MDist USD 1,506 2.22

14,169 M&G European Loan Fund 1,260 1.85

107,682 Fidelity Funds - European High Yield Fund A MDist EUR 1,055 1.55

36,576 PIMCO Funds Capital Securities Fund 467 0.69

443,663 NB Global Floating Rate Income Fund 396 0.58

271,883 Starwood European Real Estate Finance 269 0.40

396,785 Fair Oaks Income 225 0.33

199,686 TwentyFour Income Fund 214 0.32

330,826 Blackstone/GSO Loan Financing 213 0.31

196,476 CVC Credit Partners European Opportunities 198 0.29

28,545 Neuberger Berman CLO Income USD I5 Dis Fund 197 0.29

1,182 Fidelity Funds - Institutional European High Yield Fund I Acc EUR 189 0.28

52,619 Alcentra European Floating Rate Income Fund 51 0.08

13,764 20.26


3,350,673 Fidelity Global Enhanced Income Fund W MDist 4,168 6.14

2,462,837 Fidelity Global Dividend Fund W MDist 3,381 4.98

965,240 Fidelity Funds - Global Financial Services Fund W Acc GBP 1,740 2.56

185,088 Fidelity Funds - Asia Pacific Dividend Fund A MIncome(G) USD 1,616 2.38

982,841 BlackRock Continental European Income Fund 1,455 2.14

778,393 Invesco European Equity Income Fund 1,012 1.49

13,372 19.68

Investment Grade Bonds - (15.71%)

9,206,071 Fidelity MoneyBuilder Income Fund A Inc 3,476 5.12

1,117,969 Fidelity Institutional UK Aggregate Bond Fund Acc Gross 2,564 3.77

1,471,377 Fidelity Extra Income Fund Y Inc 1,911 2.81

64,452 Fidelity Enhanced Reserve Fund I Qnc USD 510 0.75

8,461 12.46

Emerging Debt - (7.72%)

519,850 Fidelity Funds - Emerging Market Local Currency Debt Fund A MDist EUR 3,556 5.23

249,340 Fidelity Funds - Emerging Market Debt Fund A MDist USD 2,217 3.26

88,700 Finisterre Unconstrained Emerging Markets Fund 954 1.40

106,881 Fidelity Funds - China RMB Bond Fund QDist USD 798 1.17

7,525 11.08

Global Bonds - (7.07%)

2,342,430 Fidelity Renaissance F Inc GBP 2,450 3.61

169,294 Fidelity Funds - US Dollar Bond Fund A MDist USD 1,590 2.34

98,455 Fidelity Funds - Asian Bond Fund Y Acc USD 1,156 1.70

446,065 PFS Twentyfour Monument Bond 460 0.68

5,656 8.33

UK Equities - (6.72%)

4,675,846 Fidelity Enhanced Income Fund W 4,140 6.09

697,565 JO Hambro UK Equity Income Fund 890 1.31

5,030 7.40

Portfolio Statement


168




395,910 Fidelity Global Quality Income UCITS ETF 1,883 2.77

513,300 HICL Infrastructure 883 1.30

18,787 Invesco Morningstar US Energy 652 0.96

91,443 Fidelity Europe Quality Income UCITS ETF 438 0.64

191,580 Real Estate Credit Investments 320 0.47

30,562 Xtrackers Harvest Csi300 UCITS 257 0.38

5,390 DBX Trust II Harvest China UCITS ETF 87 0.13

189,781 Catco Reinsurance Opportunities Fund C 44 0.06

4,564 6.72


229 Fidelity Institutional Liquidity Fund - Sterling C Acc 2,323 3.42

2,323 3.42

Infrastructure - (6.18%)

517,930 International Public Partnerships 820 1.21

360,549 Greencoat UK Wind 529 0.78

378,035 Sequoia Economic Infrastructure Income Fund 431 0.63

121,151 3i Infrastructure Fund 347 0.51

113,225 SQN Asset Finance Income Fund 91 0.13

2,218 3.27



(5,097,800) Bought GBP sold EUR @ 1.103558 for settlement 11/12/2019 228 0.34

(8,146,800) Bought GBP sold HKD @ 9.599846 for settlement 11/12/2019 48 0.07

(644,600) Bought GBP sold CHF @ 1.195790 for settlement 11/12/2019 34 0.05


(4,789,900) Bought GBP sold CNY @ 8.778100 for settlement 11/12/2019 22 0.03

(698,200) Bought GBP sold AUD @ 1.799007 for settlement 11/12/2019 17 0.03


(290,000) Bought GBP sold EUR @ 1.110988 for settlement 11/12/2019 11 0.02

(24,077,000) Bought GBP sold JPY @ 131.541804 for settlement 11/12/2019 11 0.02



(492,000) Bought GBP sold HKD @ 9.681115 for settlement 11/12/2019 2 0.00




19,861,000 Bought JPY sold GBP @ 0.007123 for settlement 11/12/2019 0 0.00

42,000 Bought AUD sold GBP @ 0.552320 for settlement 11/12/2019 (1) 0.00

679,000 Bought EUR sold GBP @ 0.864855 for settlement 11/12/2019 (2) 0.00

488,000 Bought HKD sold GBP @ 0.102152 for settlement 11/12/2019 (2) 0.00

949,000 Bought CNY sold GBP @ 0.112370 for settlement 11/12/2019 (3) 0.00

24,188,000 Bought JPY sold GBP @ 0.007378 for settlement 11/12/2019 (6) (0.01)



1,073 1.58

Real Estate - (1.07%)

166,133 GCP Student Living 291 0.43

166,040 Tritax Eurobox (GB) 151 0.22

442 0.65

Portfolio Statement


169



Industrials - (0.69%)

129,524 Doric Nimrod Air Three 108 0.16

93,408 Amedeo Air Four Plus 72 0.11

38,882 Doric Nimrod Air Two Preferred 66 0.10

246 0.36

Utilities - (0.15%)

130,998 Greencoat Renewables (GB) 136 0.20

48,000 US Solar Fund 36 0.05

172 0.25

Miscellaneous - (0.13%)

61,408 UK Mortgages 40 0.06

40 0.06

Futures - (0.11%)

(100,000) EURO-BUND Commodity Future 06/12/2019 4 0.01

(30) FTSE 100 Index Future 20/12/2019 3 0.00

(200,000) Euro-BTP Commodity Future 06/12/2019 1 0.00

(4) FTSE 250 Y2 Index Future 20/12/2019 0 0.00

(100) E-Mini S&P 500 Index Future 20/12/2019 (2) 0.00

500,000 Long Gilt Commodity Future 27/12/2019 (4) (0.01)

(90) EURO STOXX 50 Commodity Future 20/12/2019 (5) (0.01)

(400) E-Mini S&P Technology Select Sector Index Future 20/12/2019 (7) (0.01)

1,200,000 US 10 Year Treasury Note (CBT) Commodity Future 19/12/2019 (17) (0.03)

(27) (0.04)



Net assets 67,932 100.00


Portfolio Statement


170






335,711 Fidelity Funds - Asia Pacific Dividend Fund A M Income(G) USD 2,931 4.49

1,136,869 Fidelity Funds - Global Financial Services Fund W Acc GBP 2,050 3.14

1,090,987 BlackRock Continental European Income Fund 1,615 2.47

681,148 Invesco European Equity Income Fund 886 1.36

15,628 23.95


440,022 Fidelity Funds - Global Hybrids Bond Fund Y USD 3,689 5.65

570,811 Fidelity Funds - Asian High Yield Fund A MDist USD 3,524 5.40



95,963 Fidelity Funds - US High Yield Fund A MDist USD 842 1.29


39,313 PIMCO Funds Capital Securities Fund 502 0.77

343,714 Starwood European Real Estate Finance 340 0.52

370,045 NB Global Floating Rate Income Fund 330 0.51

208,366 TwentyFour Income Fund 223 0.34

1,243 Fidelity Funds - Institutional European High Yield Fund I Acc EUR 199 0.30

182,727 CVC Credit Partners European Opportunities 184 0.28

108,713 Fair Oaks Income 62 0.10

93,755 Blackstone/GSO Loan Financing 60 0.09

41,392 Alcentra European Floating Rate Income Fund 40 0.06

13,285 20.36


551,946 Fidelity Funds - Emerging Market Local Currency Debt Fund A MDist EUR 3,776 5.79

291,083 Fidelity Funds - Emerging Market Debt Fund A MDist USD 2,588 3.97

115,219 Finisterre Unconstrained Emerging Markets Fund 1,240 1.90

51,410 Fidelity Funds - China RMB Bond Fund QDist USD 384 0.59

7,988 12.24



620,699 Fidelity Institutional UK Aggregate Bond Fund Acc Gross 1,423 2.18

126,523 Fidelity Enhanced Reserve Fund I Qnc USD 1,001 1.53

504,174 Fidelity Extra Income Fund Y Inc 655 1.00

5,475 8.39


460,218 Fidelity Global Quality Income UCITS ETF 2,189 3.35

446,664 HICL Infrastructure 768 1.18

20,981 Invesco Morningstar US Energy 728 1.12

67,817 Xtrackers Harvest Csi300 UCITS 571 0.87

118,002 Fidelity Europe Quality Income UCITS ETF 565 0.87

181,505 Real Estate Credit Investments 303 0.46

5,301 DBX Trust II Harvest China UCITS ETF 86 0.13

211,616 Catco Reinsurance Opportunities Fund C 49 0.08

5,259 8.06



681,563 JO Hambro UK Equity Income Fund 870 1.33

4,922 7.54

Portfolio Statement


171





97,621 Fidelity Funds - US Dollar Bond Fund A MDist USD 917 1.41

47,540 Fidelity Funds - Asian Bond Fund Y Acc USD 558 0.86

273,393 PFS Twentyfour Monument Bond 282 0.43

3,697 5.66


449,150 International Public Partnerships 711 1.09

345,583 Greencoat UK Wind 507 0.78

140,518 3i Infrastructure Fund 403 0.62

349,286 Sequoia Economic Infrastructure Income Fund 398 0.61

111,264 SQN Asset Finance Income Fund 89 0.14

2,108 3.23



1,877 2.88







(1,107,000) Bought GBP sold AUD @ 1.799007 for settlement 11/12/2019 27 0.04




(724,000) Bought GBP sold HKD @ 9.767605 for settlement 11/12/2019 3 0.00

(481,000) Bought GBP sold CNY @ 8.895571 for settlement 11/12/2019 2 0.00





17,353,000 Bought JPY sold GBP @ 0.007100 for settlement 11/12/2019 1 0.00

210,000 Bought CNY sold GBP @ 0.109951 for settlement 11/12/2019 0 0.00

460,000 Bought CNY sold GBP @ 0.112370 for settlement 11/12/2019 (1) 0.00


704,000 Bought EUR sold GBP @ 0.864855 for settlement 11/12/2019 (2) 0.00

669,000 Bought HKD sold GBP @ 0.102152 for settlement 11/12/2019 (3) 0.00



1,147 1.76


245,900 GCP Student Living 430 0.66

158,984 Tritax Eurobox (GB) 145 0.22

575 0.88

Utilities - (0.17%)

117,999 Greencoat Renewables (GB) 123 0.19

48,000 US Solar Fund 36 0.06

159 0.24

Portfolio Statement


172




110,377 Amedeo Air Four Plus 85 0.13


151 0.23


38,779 UK Mortgages 25 0.04

25 0.04

Contracts for Difference - (0.00%)

608,376 MSCI Japan Financials Index (CFD) 18 0.03

18 0.03

Futures - (0.21%)


(100,000) EURO-BUND Commodity Future 06/12/2019 4 0.01


(100,000) Euro-BTP Commodity Future 06/12/2019 0 0.00

300,000 Long Gilt Commodity Future 27/12/2019 (2) 0.00

(600) E-Mini S&P Technology Select Sector Index Future 20/12/2019 (11) (0.02)

900,000 US 10 Year Treasury Note (CBT) Commodity Future 19/12/2019 (13) (0.02)

(16) (0.02)



Net assets 65,261 100.00


Portfolio Statement


173





28,959,284 Fidelity Institutional UK Aggregate Bond Fund Acc Gross 66,404 7.77

31,664,241 Fidelity Extra Income Fund Y Inc 41,132 4.81

41,432 Fidelity Enhanced Reserve Fund I Qnc USD 328 0.04

196,115 22.95


8,719,757 Fidelity Funds - Asian High Yield Fund A MDist USD 53,840 6.30

4,962,849 Fidelity Funds - Global Hybrids Bond Fund Y USD 41,613 4.87

3,115,303 Fidelity Funds - US High Yield Fund A MDist USD 27,338 3.20



679,118 PIMCO Funds Capital Securities Fund 8,679 1.02

5,697,278 NB Global Floating Rate Income Fund 5,082 0.59

28,448 Fidelity Funds - Institutional European High Yield Fund I Acc EUR 4,559 0.53

3,688,639 TwentyFour Income Fund 3,947 0.46

2,692,039 CVC Credit Partners European Opportunities 2,719 0.32

2,096,458 Starwood European Real Estate Finance 2,071 0.24

1,747,390 Alcentra European Floating Rate Income Fund 1,698 0.20

2,412,211 Blackstone/GSO Loan Financing 1,556 0.18

2,125,356 Fair Oaks Income 1,205 0.14


178,615 20.90




10,115,184 Fidelity Funds - Global Financial Services Fund W Acc GBP 18,239 2.13

9,040,355 BlackRock Continental European Income Fund 13,380 1.57

7,798,117 Invesco European Equity Income Fund 10,138 1.19

139,510 16.32


5,333,882 Fidelity Funds - Emerging Market Local Currency Debt Fund A MDist EUR 36,491 4.27

3,046,805 Fidelity Funds - Emerging Market Debt Fund A MDist USD 27,089 3.17

1,303,747 Fidelity Funds - China RMB Bond Fund QDist USD 9,738 1.14

638,889 Finisterre Unconstrained Emerging Markets Fund 6,874 0.80

80,192 9.38



2,254,702 Fidelity Funds - US Dollar Bond Fund A MDist USD 21,178 2.48

1,565,338 Fidelity Funds - Asian Bond Fund Y Acc USD 18,386 2.15

4,085,887 PFS Twentyfour Monument Bond 4,213 0.49

78,805 9.22



3,269,455 JO Hambro UK Equity Income Fund 4,172 0.49

53,909 6.31

Portfolio Statement


174




4,519,301 Fidelity Global Quality Income UCITS ETF 21,494 2.51

7,529,450 HICL Infrastructure 12,951 1.52

2,873,181 Real Estate Credit Investments 4,798 0.56

94,891 Invesco Morningstar US Energy 3,294 0.39

108,380 DBX Trust II Harvest China UCITS ETF 1,750 0.20

3,648,323 Catco Reinsurance Opportunities Fund C 845 0.10

45,132 5.28


5,913,770 International Public Partnerships 9,367 1.10

7,397,510 Sequoia Economic Infrastructure Income Fund 8,433 0.99

5,480,706 Greencoat UK Wind 8,035 0.94

1,514,952 3i Infrastructure Fund 4,340 0.51

30,175 3.53


1,893 Fidelity Institutional Liquidity Fund - Sterling C Acc 19,220 2.25

19,220 2.25


(261,393,600) Bought GBP sold USD @ 1.224220 for settlement 11/12/2019 12,065 1.41

(59,398,200) Bought GBP sold EUR @ 1.103558 for settlement 11/12/2019 2,657 0.31

(8,421,500) Bought GBP sold CHF @ 1.195790 for settlement 11/12/2019 450 0.05





(2,819,100) Bought GBP sold AUD @ 1.799007 for settlement 11/12/2019 68 0.01



(1,166,395,000) Bought GBP sold JPY @ 139.829050 for settlement 11/12/2019 12 0.00



245,865,000 Bought JPY sold GBP @ 0.007147 for settlement 11/12/2019 (2) 0.00

1,867,000 Bought HKD sold GBP @ 0.102298 for settlement 11/12/2019 (7) 0.00


318,499,000 Bought JPY sold GBP @ 0.007209 for settlement 11/12/2019 (22) 0.00

10,558,000 Bought CNY sold GBP @ 0.112370 for settlement 11/12/2019 (33) 0.00

10,461,000 Bought EUR sold GBP @ 0.864855 for settlement 11/12/2019 (36) 0.00


5,313,093,900 Bought JPY sold GBP @ 0.007746 for settlement 11/12/2019 (3,214) (0.38)

12,745 1.49


1,677,376 Amedeo Air Four Plus 1,292 0.15

1,406,848 Doric Nimrod Air Three 1,168 0.14


3,406 0.40

Utilities - (0.23%)

2,074,892 Greencoat Renewables (GB) 2,160 0.25

768,000 US Solar Fund 581 0.07

2,741 0.32

Portfolio Statement


175




2,520,705 Tritax Eurobox (GB) 2,299 0.27

2,299 0.27


1,327,226 UK Mortgages 864 0.10

864 0.10

Futures - (0.14%)

(2,400,000) EURO-BUND Commodity Future 06/12/2019 91 0.01


(6,700,000) Euro-BTP Commodity Future 06/12/2019 19 0.00


(5,700) E-Mini S&P Consumer Staples Index Future 20/12/2019 (34) 0.00

(2,300) E-Mini S&P 500 Index Future 20/12/2019 (53) (0.01)

8,700,000 Long Gilt Commodity Future 27/12/2019 (66) (0.01)

(1,430) EURO STOXX 50 Commodity Future 20/12/2019 (86) (0.01)

(7,300) E-Mini S&P Technology Select Sector Index Future 20/12/2019 (135) (0.02)


(350) (0.04)



Net assets 854,662 100.00


Portfolio Statement


176




55,303,729 FCCF II - Fidelity UK Equity Fund I Acc GBP 56,283 20.66

56,283 20.66

North American Equities - (14.68%)

5,285,515 FCCF II - Fidelity North America Equity Fund I Acc USD 44,418 16.30

44,418 16.30

European Equities - (11.04%)

4,417,447 FCCF II - Fidelity Europe ex-UK Equity Fund I Acc EUR 39,154 14.37

39,154 14.37

Global Aggregate Bonds - (0.00%)

2,559,062 FCCF II - Fidelity Global Aggregate Bond Fund I Acc GBP 27,200 9.98

27,200 9.98

Pacific ex Japan Equities - (6.90%)

3,084,759 Fidelity Asia Pacific ex-Japan Equity Fund I Acc USD 23,541 8.64

23,541 8.64

Japan Equities - (4.44%)

2,404,113 FCCF II - Fidelity Japan Equity Fund I Acc JPY 16,740 6.14

16,740 6.14

Emerging Market Equities - (4.99%)

2,016,711 FCCF II - Fidelity Global Emerging Markets Fund I Acc USD 16,509 6.06

16,509 6.06

Gold - (3.95%)

7,435,910 Investec Global Gold Fund I Acc 11,772 4.32

11,772 4.32



0 Fidelity Institutional Liquidity Fund - USD C Acc 2 0.00

8,620 3.16


805,503 FCCF II - Fidelity Global Sub-IG Fixed Income Fund I Acc GBP 8,606 3.16

8,606 3.16


173,634 iShares Physical Gold ETC 3,951 1.45

15,914 SPDR S&P US Dividend Aristocrats UCITS ETF 710 0.26

4,661 1.71

Volatility - (0.00%)

4,171 Assenagon Alpha Volatility (I) INC-EUR 3,831 1.41

3,831 1.41

Macro Absolute Return - (2.36%)

2,641,428 Majedie Tortoise Fund Z GBP 2,409 0.88

2,409 0.88

Energy Infrastructure - (0.00%)

323,836 Pimco GIS MLP & Energy Infrastructure Fund 2,264 0.83

2,264 0.83

Warrants - (0.00%)

27,780 BBG Energy Trust Sub Index (Warrants) 2,042 0.75

2,042 0.75

Portfolio Statement


177



Property - (0.94%)

40 Fidelity International Eurozone Select Real Estate Fund 205 0.08

205 0.08




127 0.05

Futures - (0.10%)



16,700 NIKKEI 225 Mini Commodity Future 12/12/2019 29 0.01

214 FTSE 250 Y2 Index Future 20/12/2019 17 0.01

25,800 Euro STOXX Bank Future 20/12/2019 (54) (0.02)


71 0.03

Contracts for Difference - ((0.06)%)

15,024 IXM Finance Select Sector Index (CFD) 217 0.08

4,412 AMEX Energy Select Index (CFD) 6 0.00

(3,314) PHLX Semi Conductor Index (CFD) (823) (0.30)

(600) (0.22)



Net assets 272,427 100.00


Portfolio Statement


178





21,944 33.99




9,848 15.25



7,409 11.47


514,594 FCCF II - Fidelity Global Sub-IG Fixed Income Fund I Acc GBP 5,498 8.52

5,498 8.52

Alternatives - (0.00%)

2,644,849 FCCF II - Fidelity Alternative Listed Equity Fund I Acc GBP 2,643 4.09

2,643 4.09


304,794 FCCF II - Fidelity North America Equity Fund I Acc USD 2,562 3.97

2,562 3.97


261,724 FCCF II - Fidelity Europe ex-UK Equity Fund I Acc EUR 2,320 3.59

2,320 3.59

Gold - (3.55%)


1,891 2.93



5,502 SPDR S&P US Dividend Aristocrats UCITS ETF 245 0.38

104,432 Highbridge Multi Strategy Fund 0 0.00

1,740 2.69


226,982 Fidelity Asia Pacific ex-Japan Equity Fund I Acc USD 1,732 2.68

1,732 2.68


189,243 FCCF II - Fidelity Global Emerging Markets Fund I Acc USD 1,549 2.40

1,549 2.40



1,162 1.80


131,190 FCCF II - Fidelity Japan Equity Fund I Acc JPY 914 1.41

914 1.41

Multi-Strategy - (1.85%)

901 Helium Fund - Helium Performance E EUR 791 1.23

28,103 Henderson Alternative Strategies Trust 74 0.11

865 1.34


95,650 Pimco GIS MLP & Energy Infrastructure Fund 669 1.04

669 1.04

Portfolio Statement


179




580,551 Majedie Tortoise Fund Z GBP 530 0.82

530 0.82

Warrants - (0.00%)

6,569 BBG Energy Trust Sub Index (Warrants) 483 0.75

483 0.75

Property - (1.21%)

32 Fidelity International Eurozone Select Real Estate Fund 163 0.25

163 0.25




37 0.06

Futures - (0.24%)





(550) E-Mini S&P 500 Index Future 20/12/2019 (13) (0.02)




(15) (0.02)




(599) PHLX Semi Conductor Index (CFD) (158) (0.24)

(106) (0.16)



Net assets 64,568 100.00


Portfolio Statement


180





141,629 22.55



84,695 13.48



81,109 12.91



73,849 11.76



36,315 5.78




33,797 5.38


2,916,764 FCCF II - Fidelity Global Sub-IG Fixed Income Fund I Acc GBP 31,164 4.96

31,164 4.96



30,917 4.92



26,139 4.16

Gold - (3.48%)


21,467 3.42



81,238 SPDR S&P US Dividend Aristocrats UCITS ETF 3,622 0.58


15,690 2.50



12,454 1.98


9,582 Assenagon Alpha Volatility (I) Inc EUR 8,802 1.40

8,802 1.40


993,712 Pimco GIS MLP & Energy Infrastructure Fund 6,946 1.11

6,946 1.11



6,407 1.02

Portfolio Statement


181



Warrants - (0.00%)


4,678 0.74

Property - (1.90%)

462 Fidelity International Eurozone Select Real Estate Fund 2,368 0.38

2,368 0.38



543 0.09

Futures - (0.17%)

(18,200,000) US 10 Year Treasury Note (CBT) Commodity Future 19/12/2019 260 0.04


(1,200) FTSE 100 Index Future 20/12/2019 104 0.02





360 0.06




304 0.05




(7,369) PHLX Semi Conductor Index (CFD) (1,841) (0.29)

(1,325) (0.21)



Net assets 628,189 100.00


Portfolio Statement


182





171,142 24.49



114,549 16.39



62,837 8.99




62,748 8.98



52,579 7.53


4,780,483 FCCF II - Fidelity Global Sub-IG Fixed Income Fund I Acc GBP 51,077 7.31

51,077 7.31



27,229 3.90



25,572 3.66

Gold - (3.53%)


24,376 3.49



19,354 2.77



122,800 SPDR S&P US Dividend Aristocrats UCITS ETF 5,476 0.78


18,148 2.60



17,547 2.51


10,483 Assenagon Alpha Volatility (I) Inc EUR 9,629 1.38

9,629 1.38



8,938 1.28


7,974 Helium Fund - Helium Performance E EUR 7,001 1.00


7,413 1.06

Portfolio Statement


183




1,009,646 Pimco GIS MLP & Energy Infrastructure Fund 7,057 1.01

7,057 1.01

Warrants - (0.00%)


5,171 0.74

Property - (1.55%)

350 Fidelity International Eurozone Select Real Estate Fund 1,796 0.26

1,796 0.26




375 0.05

Futures - (0.18%)


(2,500) FTSE 100 Index Future 20/12/2019 216 0.03

(11,100,000) US 10 Year Treasury Note (CBT) Commodity Future 19/12/2019 158 0.02





361 0.05





(1,118) (0.16)



Net assets 698,714 100.00


Portfolio Statement


184





14,632,571 Old Mutual North American Equity Fund U2 34,372 2.54

506,846 37.43



222,388 16.42



132,796 9.81



130,205 9.62



115,176 8.51



112,313 8.29


1,499,459 SPDR S&P US Dividend Aristocrats UCITS ETF 66,861 4.94

66,861 4.94

Gold - (4.45%)


58,013 4.28



358 0.03




6 0.00

Futures - (0.22%)


1,070 FTSE 250 Y2 Index Future 20/12/2019 84 0.01

(6,850) E-Mini S&P 500 Index Future 20/12/2019 (158) (0.01)



(542) (0.04)

Portfolio Statement


185




75,170 IXM Finance Select Sector Index (CFD) 1,084 0.08



(3,050) (0.23)

Portfolio of investments 1,341,370 99.06


Net assets 1,354,011 100.00


Portfolio Statement


186



Global Fixed Income - (11.37%)

499,402 Colchester Global Bond Fund GBP Hedged Acc 6,015 6.97

3,867,331 Jupiter Strageic Bond Fund I Acc 4,258 4.94

6,787,065 Standard Life Global Index Linked Bond Fund S-Acc 4,232 4.91

239,648 Fidelity Funds - Emerging Market Local Currency Debt Fund Y-Acc-USD 1,707 1.98

308,674 JPM Global High Yield Bond Fund C-Acc 415 0.48

16,627 19.27

UK Fixed Income - (20.25%)

5,365,987 Fidelity Strategic Bond Fund Y-Acc 6,874 7.97

5,464,030 M&G Corporate Bond Fund I-Acc GBP 4,304 4.99

248,540 Fidelity MoneyBuilder Income Fund Y-Acc 3,452 4.00

14,630 16.96


92,229 Fidelity Special Situations Fund - W Acc 3,400 3.94

1,677,763 Majedie UK Equity Fund 2,984 3.46

591,394 Liontrust UK Growth Fund I 2,616 3.03

9,000 10.43


1,207,435 Fidelity Global Dividend Fund W-Acc (UK) 2,921 3.39

60,009 Fidelity Global Special Situations Fund A-Acc 2,534 2.94

975,972 Rathbone Global Opportunities Fund Acc 2,438 2.83

227,605 Invesco Global Equity Income Fund 821 0.95

8,714 10.10

Europe ex UK Equities - (10.37%)

1,232,850 FP CRUX European Special Situations Fund 3,533 4.10

1,330,442 Invesco European Equity Income Fund 2,620 3.04

487,761 JO Hambro European Select Values Fund 2,526 2.93

8,679 10.06


1,435,852 Invesco Global Targeted Returns Fund 3,389 3.93

13,737 BlackRock Style Advantage Fund I2 GBP Hedged 1,275 1.48

413 Serviced Platform SICAV ADG Systematic Macro UCITS 43 0.05

4,707 5.46


1,862,826 Old Mutual SE Ii-Asia Pacific Fund 3,344 3.88

1,228,359 Maple-Brown Abbott Asia Pacific 1,094 1.27

4,438 5.14


347,476 JPMorgan Fund ICVC - US Select 1,749 2.03

519,477 JPMorgan Fund ICVC - US Equity Income Fund 1,572 1.82

261,608 Old Mutual North American Equity Fund U2 615 0.71

3,936 4.56

Commodities - (2.97%)


3,053 3.54


172,722 Baillie Gifford Japanese Fund B Acc 2,971 3.44

2,971 3.44

Portfolio Statement


187




2,032,845 FP Foresight UK Infrast Fund 2,577 2.99

2,577 2.99

Property - (2.99%)

884,337 iShares Global Property Securities Equity Index Fund (UK) 2,137 2.48

2,137 2.48



2,065 2.39


1,686,945 Fidelity Cash Fund Y Acc 1,709 1.98

1,709 1.98


580,813 Artemis Global Emerging Markets Fund I Acc GBP 823 0.95

823 0.95







11 0.01



Net assets 86,272 100.00



188

Further Information

Fidelity Investment Funds IV Registered Office

Oakhill House 130 Tonbridge Road Hildenborough Tonbridge Kent TN11 9DZ United Kingdom www.fidelity.co.uk Authorised and regulated in the UK by the Financial Conduct Authority.

Authorised Corporate Director (ACD), AIFM, General Distributor, Administrator and Registrar

FIL Investment Services (UK) Limited Oakhill House 130 Tonbridge Road Hildenborough Tonbridge Kent TN11 9DZ United Kingdom Authorised and regulated in the UK by the Financial Conduct Authority. Registered in England and Wales No 2016555.

Depositary

J.P. Morgan Europe Limited Registered Office: 25 Bank Street London E14 5JP United Kingdom

Head Office: Chaseside Bournemouth Dorset BH7 7DA United Kingdom Authorised and regulated in the UK by the Financial Conduct Authority.

Independent Auditors

PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT United Kingdom


Further Information

• All Fidelity employees are subject to a Code of Ethics which, among other things, sets out procedures for personal account dealings in securities. These procedures, which are rigorously monitored, are designed to ensure that there is no conflict between personal account dealing by Fidelity staff and the interests of Fidelity’s customers. The two basics of the Code of Ethics require that deals have to be pre-authorised before an individual may undertake them, and they must afterwards be reported to the Compliance Department. Individuals are required to use specified brokers which enables this process to be checked on a continual basis. In addition, there are specific provisions to ensure that any investment idea is first acted upon by the funds Fidelity manages, and that fund managers may not deal within a defined period either side of a fund (for which they are responsible) dealing in that stock.

• The Report and Financial Statements of the Company and the Instrument of Incorporation may be inspected free of charge between 9.00 a.m. and 5.00 p.m. on every business day at the offices of the Authorised Corporate Director (ACD) at Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ, United Kingdom.

Shareholders may obtain copies of the above documents free of charge from the same address or alternatively from our website www.fidelity.co.uk. It is possible to receive information about the full holdings of the funds in which you invest. This is available on request, and may, at our discretion, be subject to you entering into an agreement with us to keep the information confidential. If you wish to receive full holdings information in accordance with the policy, please put your request in writing to: Data Policy Fund Holdings, Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ quoting your name, address and account number or client reference number.

• The Authorised Fund Manager (AFM) is required to conduct a detailed assessment of whether its funds provide value to investors and publish an annual statement summarising the outcome of the review. The AFM will publish the outcome of the review in a separate document available during the third quarter of 2020.

FIL Limited and its respective subsidiaries form the global investment management organisation that is commonly referred to as Fidelity International. Fidelity International only gives information on products and services and, with the exception of retirement advice, does not provide investment advice based on individual circumstances.

Any service, security, investment, fund or product outlined may not be available to or suitable for you and may not be available in your jurisdiction. It is your responsibility to ensure that any service, security, investment, fund or product outlined is available in your jurisdiction before any approach is made regarding that service, security, investment, fund or product. This document may not be reproduced or circulated without prior permission and must not be passed to private investors.

Past performance is not a reliable indicator of future results. The value of investments may go down as well as up and an investor may not get back the original amount invested. Unless otherwise stated all products are provided by Fidelity International, and all views expressed are those of Fidelity International.

In certain countries, and for certain types of investments, transaction costs are higher, and liquidity is lower than elsewhere. There may also be limited opportunities to find alternative ways of managing cash flows especially where the focus of investment is on small and medium sized firms. For funds specialising in such countries and investment types, transactions, particularly those large in size, are likely to have a greater impact on the costs of running a fund than similar transactions in larger funds. Prospective investors should bear this in mind in selecting funds.

Issued by FIL Investment Services (UK) Limited (FCA registered number 121939) a firm authorised and regulated by the Financial Conduct Authority.

FIL Investment Services (UK) Limited is a member of the Fidelity International group of companies and is registered in England and Wales under the company number 2016555. The registered office of the company is Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ, United Kingdom. FIL Investment Management Limited VAT group identification number is 395 3090 35.

189

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