Welcome to Fidelity

Select a location so we can provide you with the appropriate information

Bienvenue chez Fidelity

Veuillez sélectionner un pays afin que nous vous communiquions l'information appropriée

Willkommen bei Fidelity

Wählen Sie Ihren Standort aus, damit wir Ihnen die für Sie passenden Informationen anzeigen können.

Benvenuti in Fidelity

Seleziona un paese in modo da consentirci di fornirti le informazioni appropriate

フィデリティのウェブサイトへようこそ

適切な情報を表示するため、現在お住まいの地域を選択してください。

Important information

I confirm that I am accessing this website for the purpose of acquiring information as, or for, an Institutional Investor (a corporate or other non-retail investor acting for their own account).

By accessing the restricted area I confirm my agreement with‚ and understanding of‚ the following terms of use and the legal provisions. If I do not agree to the terms and legal conditions‚ I must not access this website or any pages thereof. I acknowledge that access to the information contained on this website is available to "Qualified Investors" only as defined below. A private individual or legal representative or any other party without this qualification should not enter this website.

By accessing this website or any of its pages‚ I confirm that I am a qualified investor in accordance with Art 10.3 CISA.

The following are considered to be qualified investors:

  • supervised financial intermediaries such as banks, securities dealers‚ management companies and asset managers of collective investment schemes‚ as well as central banks;
  • supervised insurance companies;
  • public-law bodies and occupational pension institutions with professional treasury;
  • companies with professional treasury.

I understand the information contained in this website is not directed at, nor is it intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted. I also understand that the information contained in this site is not directed to any party that may be defined as a ‘retail investor’ by the home regulator of the country in which the website is being accessed. I understand that the information or opinions contained herein should not be construed as an offer to sell or the solicitation of an offer to buy any investment product nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful. Fidelity has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

I understand the information contained in this website is not directed at, nor is it intended for distribution to, or use by, persons in any jurisdiction in which the dissemination of such investment related information is not permitted. I also understand that the information contained in this site is not directed to any party that may be defined as a ‘retail investor’ by the home regulator of the country in which the website is being accessed. I understand that the information or opinions contained herein should not be construed as an offer to sell or the solicitation of an offer to buy any investment product nor shall any such investment products or services be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful. Fidelity has expressed its own views and opinions on this website, and these may change and there is no obligation to update them. Nothing in this website should be construed as investment, tax, legal or other advice. The information contained herein is subject to change without notice.

This website has been issued by FIL Fund Management Limited, a Bermuda company licensed to conduct investment business by the Bermuda Monetary Authority. Neither FIL Fund Management Limited, its parent company FIL Limited, nor any of their group companies or affiliates makes or gives any warranty or representation that any information contained on this website is accurate, complete, or fit for any particular purpose.

I acknowledge that neither FIL Fund Management Limited, FIL Limited, nor any of their group companies or affiliates will have any liability for any losses arising directly or indirectly from any information accessed from this website. By accepting this representation I also confirm my agreement to the website Terms and Conditions, which I have read and understood.

Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited, a company existing under the laws of Bermuda.

If the above representation is correct, please click 'I agree' below to continue to the site.

Information importante

Je confirme accéder à ce site Internet afin d’obtenir des informations en qualité d’investisseur institutionnel.

Je comprends que les informations contenues sur ce site Internet sont destinées exclusivement aux investisseurs résidant en France et ne doivent pas être diffusées à quiconque pouvant être considéré comme un investisseur particulier. Je comprends que les informations ou opinions présentées sur ce site ne constituent pas des recommandations d’achat ou de vente. Fidelity a exprimé ses propres vues et opinions sur ce site Internet, et celles-ci peuvent évoluer sans que Fidelity n’assume aucune obligation de les actualiser. Aucun élément de ce site Internet ne doit être interprété comme un avis d’investissement, fiscal ou juridique ou autre. Les informations que comporte ce site peuvent changer sans notification.

Ce site Internet est présenté par FIL Gestion, SGP agréée par l'AMF sous le n°GP03-004, 29 rue de Berri, 75008 Paris. Ni FIL Gestion, ni sa société mère FIL Limited, ni aucune des sociétés ou affiliées du groupe ne garantit ni ne fait aucune déclaration sur l’exactitude, l’exhaustivité ou l’adaptation à une finalité donnée des informations présentées sur ce site Internet.

Je reconnais que ni FIL Gestion, ni FIL Limited, ni aucune des sociétés ou affiliées du groupe n’assume une quelconque responsabilité au titre de toute perte découlant directement ou indirectement de toute information obtenue à partir de ce site Internet.

Ce site présentant des informations en langues française et anglaise, j’accepte de recevoir des informations non exclusivement rédigées en français.

Je confirme également, par l’acceptation de cette déclaration, mon accord sur les conditions et modalités du site Internet que j’ai lues et comprises.

Fidelity, Fidelity International, le logo Fidelity International ainsi que le symbole F sont des marques déposées de FIL Limited.

Si vous accepter les termes de la déclaration ci-dessus, veuillez cliquer sur « j’accepte » ci-dessous pour poursuivre votre navigation sur ce site.

Wichtige Informationen

Hiermit bestätige ich, dass ich diese Website zur Informationsbeschaffung als institutioneller Anleger (ein auf eigene Rechnung handelndes Unternehmen oder ein anderer nicht als Privatanleger geltender Investor) bzw. für einen institutionellen Anleger besuche.

Mit dem Zugriff auf den zugangsbeschränkten Bereich bestätige ich, dass ich die folgenden Nutzungsbedingungen und rechtlichen Klauseln verstanden habe und mit ihnen einverstanden bin. Andernfalls darf ich auf diese Website oder Teile davon nicht zugreifen. Mir ist bewusst, dass der Zugang zu den Informationen auf dieser Website nur für „qualifizierte Anleger“ gemäss untenstehender Definition vorgesehen ist. Eine Privatperson, ein rechtlicher Vertreter oder irgendeine andere Partei ohne diese Qualifikation sollte nicht auf diese Webseite zugreifen.

Mit dem Zugriff auf diese Website oder Teile davon bestätige ich, dass ich ein qualifizierter Investor gemäß Art 10 Absatz 3 des schweizerischen Bundesgesetzes über die kollektiven Kapitalanlagen bin.

Als qualifizierte Anlegerinnen und Anleger im Sinne dieses Gesetzes gelten:

  • beaufsichtigte Finanzintermediäre wie Banken, Effektenhändler, Fondsleitungen und Vermögensverwalter kollektiver Kapitalanlagen sowie Zentralbanken;
  • beaufsichtigte Versicherungseinrichtungen;
  • öffentlich-rechtliche Körperschaften und Vorsorgeeinrichtungen mit professioneller Tresorerie;
  • Unternehmen mit professioneller Tresorerie.

Mir ist bewusst, dass sich die Informationen auf dieser Website nicht an Personen richten bzw. für sie bestimmt sind, in deren Land die Verbreitung solcher anlagebezogenen Informationen nicht erlaubt ist. Mir ist bewusst, dass die hier zu findenden Informationen oder Meinungen nicht als Aufforderung zum Kauf oder Verkauf eines Anlageprodukts zu verstehen sind. Es sollen auch keine solchen Anlageprodukte oder Dienstleistungen Personen angeboten oder verkauft werden, in deren Land ein entsprechendes Angebot, eine Aufforderung, ein Erwerb oder Verkauf ungesetzlich wäre. Fidelity äußert auf dieser Website seine eigenen Ansichten und Meinungen, die sich jederzeit ändern können, ohne dass eine Verpflichtung zur Aktualisierung besteht. Kein Inhalt dieser Website ist als Beratung in Bezug auf Geldanlagen, Steuern, rechtliche oder sonstige Aspekte zu verstehen. Die hierin enthaltenen Informationen können sich ohne entsprechende Mitteilung jederzeit ändern.

Mir ist bewusst, dass sich die Informationen auf dieser Website nicht an Personen richten bzw. für sie bestimmt sind, in deren Land die Verbreitung solcher anlagebezogenen Informationen nicht erlaubt ist. Mir ist ebenfalls bewusst, dass sich die Informationen auf dieser Website nicht an Adressaten richtet, die von der Aufsichtsbehörde in dem Land, von dem aus die Website besucht wird, möglicherweise als „Privatanleger“ klassifiziert werden. Des Weiteren ist mir bewusst, dass die hier zu findenden Informationen oder Meinungen nicht als Aufforderung zum Kauf oder Verkauf eines Anlageprodukts zu verstehen sind. Es sollen auch keine solchen Anlageprodukte oder Dienstleistungen Personen angeboten oder verkauft werden, in deren Land ein entsprechendes Angebot, eine Aufforderung, ein Erwerb oder Verkauf ungesetzlich wäre. Fidelity äußert auf dieser Website seine eigenen Ansichten und Meinungen, die sich jederzeit ändern können, ohne dass eine Verpflichtung zur Aktualisierung besteht. Kein Inhalt dieser Website ist als Beratung in Bezug auf Geldanlagen, Steuern, rechtliche oder sonstige Aspekte zu verstehen. Die hierin enthaltenen Informationen können sich ohne entsprechende Mitteilung jederzeit ändern.

Diese Website wurde von FIL Fund Management Limited eingerichtet, einem Unternehmen mit Sitz auf bzw. nach dem Recht der Bermuda-Inseln, das über eine Genehmigung der Bermuda Monetary Authority zur Ausübung von Investmenttätigkeiten verfügt. Weder FIL Fund Management Limited noch sein Mutterunternehmen FIL Limited oder irgendein anderes Konzernunternehmen oder verbundenes Unternehmen übernimmt die Gewähr dafür oder erklärt, dass die Informationen auf dieser Website zutreffend, vollständig oder für jedwede Zwecke geeignet sind.

Ich erkenne an, dass weder FIL Fund Management Limited noch FIL Limited oder ein anderes Konzernunternehmen bzw. verbundenes Unternehmen für etwaige Verluste haftet, die direkt oder indirekt aus einer auf dieser Website beschafften Information resultieren. Durch Annahme dieser Erklärung bestätige ich auch mein Einverständnis mit den Nutzungs- und Geschäftsbedingungen dieser Website, die ich gelesen und verstanden habe.

Fidelity International, das Fidelity International Logo und das F-Symbol sind Markenzeichen von FIL Limited, einem nach dem Recht der Bermuda-Inseln eingetragenen Unternehmen.

Diese Website präsentiert Informationen in englischer und deutscher Sprache. Als professioneller Anleger akzeptiere ich hiermit, Informationen in mehr als einer Sprache zu erhalten.

Wenn die obige Erklärung zutrifft, klicken Sie bitte auf „Ich stimme zu“, um auf die Website zu gelangen.

Informazioni importanti

Confermo di voler accedere a questo sito web per acquisire informazioni in veste o per conto di un Investitore istituzionale (una società o altro investitore non retail che agisce per proprio conto).

Riconosco che le informazioni contenute in questo sito web non sono dirette né sono destinate alla distribuzione o alluso da parte di soggetti in qualsiasi giurisdizione in cui la diffusione di tali informazioni relative allinvestimento non è consentita. Riconosco inoltre che le informazioni contenute in questo sito web non sono dirette a soggetti che potrebbero essere definiti "investitori retail" dall'autorità di vigilanza nazionale del paese dal quale si accede al sito stesso. Riconosco che le informazioni o le opinioni contenute in questo sito web non devono essere interpretate come un'offerta di vendita o come la sollecitazione di un'offerta di acquisto di un prodotto o un servizio di investimento, né tali prodotti o servizi di investimento possono essere offerti o venduti a soggetti di giurisdizioni nelle quali tale offerta, sollecitazione, acquisto o vendita sarebbero illegali. Questo sito web contiene giudizi e opinioni espressi da Fidelity, che sono soggetti a modifica e rispetto ai quali non sussiste alcun obbligo di aggiornamento. Nulla di quanto contenuto in questo sito web va considerato come una consulenza di investimento, fiscale, legale o di altra natura. Le informazioni qui riportate sono soggette a modifica senza preavviso.

Questo sito web è pubblicato da FIL Fund Management Limited (una società delle Bermuda autorizzata a svolgere attività d'investimento dalla Bermuda Monetary Authority). Né FIL Fund Management Limited, né la sua società madre FIL Limited, né alcuna delle loro società del gruppo o affiliate fornisce o rilascia alcuna garanzia o dichiarazione che le informazioni contenute in questo sito web siano accurate, complete o adatte a uno scopo particolare.

Riconosco che né FIL Fund Management Limited, né FIL Limited né alcuna delle loro società del gruppo o affiliate si assumono alcuna responsabilità per eventuali perdite derivanti direttamente o indirettamente da informazioni ottenute da questo sito web. Accettando questa dichiarazione confermo anche di aver letto, compreso e accettato i Termini e le condizioni d'uso del sito web.

Fidelity International, il logo Fidelity International e il simbolo F sono marchi di proprietà di FIL Limited, una società costituita nelle Bermuda.

Se la dichiarazione di cui sopra è corretta, cliccare "Accetto" qui sotto per continuare a visitare il sito.

重要な情報

私は、機関投資家(自己勘定取引を行う個人投資家以外の法人その他の投資家)として、あるいはかかる機関投資家のために、当ウェブサイトにアクセスし、情報を取得するものです。

私は、当ウェブサイトに掲載される情報は、かかる投資関連情報の流布が違反となる法域の人物に提供するものではなく、そういった人物によって拡散されたり利用されたりすることを意図したものでもないことを理解しています。また、当サイトに掲載される情報が、ウェブサイトにアクセスする場所の国の規制当局によって「個人投資家」と定義され得る人物に向けたものではなく、当サイトにある情報または意見は、何らかの投資商品の勧誘や募集と解釈すべきではなく、かかる投資商品またはサービスの募集、勧誘、売買が違法となる法域にいる人物に対して募集ないし販売されるものでもないことも理解しています。フィデリティは、当ウェブサイト上に自社の見解や意見を掲載していますが、これらは変わる可能性があり、そういった変更があった場合に当ウェブサイトを更新しなければならないという義務は負っていません。当ウェブサイトの内容はいずれも投資、税務、法務、その他の助言と解釈すべきではなく、ウェブサイト上の情報は通知なく変更される可能性があります。

当ウェブサイトはバミューダ籍の法人でバミューダ金融庁から投資事業免許を取得しているFILファンド・マネジメント・リミテッドが作成しています。FILファンド・マネジメント・リミテッド、その親会社であるFILリミテッド、またはそれらのグループ会社か関連会社のいずれも、当ウェブサイトに掲載される情報が正確であるとか、完全であるとか、特定の目的に適合したものである等の保証や表明は行っておらず、そういった保証や表明を提供することもありません。

FILファンド・マネジメント・リミテッド、FILリミテッド、またはそれらのグループ会社か関連会社のいずれもが、当ウェブサイトから入手した情報によって直接または間接的に発生した損失の責を負うものではないことに了承します。

フィデリティ・インターナショナル、フィデリティ・インターナショナルのロゴおよびFのシンボルはバミューダ法の下で設立された法人であるFILリミテッドの商標です。

以上をご確認いただける場合には、以下の「同意します」ボタンをクリックしてください。

How to use alternatives at the end of the cycle: five strategies detailed

by Adrian Benedict, Michael Costa, Tigran Manukyan and Adnan Siddique

Published 11 December 2017

Diversifying alpha sourcesAlternativesReal estate

As the bull market matures and as equity and bond valuations grind higher, it may be prudent for investors to start positioning their portfolios for the end of the cycle. Alternative investments have developed over the past few years and they can offer diversifying characteristics for investors that are be particularly useful around cycle turning points.

As the bull market matures and as equity & bond valuations grind higher, it may be prudent for investors to start positioning their portfolios for the end of the cycle. Alternative investments have developed over the past few years and they can offer diversifying characteristics for investors that are be particularly useful around cycle turning points.

The ‘alternatives’ asset class provides a range of opportunities with low correlation to traditional securities: real estate, catastrophe bonds, low-risk infrastructure, and other alternatives strategies can offer effective benefits for portfolios at the end of the cycle.

Alternatives have changed

Just a few years ago, poor transparency, lock ups and regulatory restrictions meant that alternatives were inaccessible to all but the most pioneering investors. But times have changed. Alternatives have become a staple of institutional investment portfolios.

According to Willis Towers Watson's Global Alternatives Surveys, the top 100 alternative asset managers combined managed over USD 4 trillion at the end of 2016, a 10% increase on 2015, and USD 640 billion more than 2014. Real estate, private equity and hedge funds dominate alternatives, comprising nearly 70% of assets under management.

In the longer term, investors are intending to boost allocations to alternatives still further, with all but one of the major alternative asset groups expected to see increased allocations (chart 1). In the shorter term, institutional investors are also seeing fund terms for investing in alternative strategies shift in their favour (chart 2).

..

One reason why alternatives are particularly sought after right now is because of the high valuations in the bond and equity markets, but for many investors it actually makes sense to allocate to alternatives on a semi-structural basis. Waiting until the end of the cycle until establishing alternatives exposure risks missing out on the advantages they offer during the rest of the cycle. For less liquid alternative asset groups, such as real estate and private equity, it may prove costly in terms of performance to enter these markets late in the cycle.

As alternatives are a heterogeneous group of strategies and asset types, it’s worth looking at the role some of these specific strategies can play in portfolios. But bear in mind that specific investments, as well as the strategy and asset type, are paramount in alternatives investing.

Real estate: quality matters

There are many options available in real estate but some are more suitable than others at this stage in the cycle.

High-quality real estate which includes commercial assets such as offices, logistics and retail property can be particularly useful when we are late in the rental growth cycle if they benefit from a long lease and sound tenants (such as the government). They provide a good income, an illiquidity premium which raises returns, and a relatively low correlation to the wider economy.

However, some parts of the real estate market have become more expensive in recent years. Yields in prime real estate have compressed significantly making it more vulnerable to a deterioration in sentiment or a cyclical downturn (chart 3). The weight of capital has driven returns in prime property to all-time lows – 100-150 basis points lower than in 2008 – while pricing is at an all-time high. A 25 to 50 basis point movement in yields will result in a 10-20% fall in capital values.

..

Other changes to the market have increased the likelihood of volatility too. Globalisation means that very large pools of capital are moving in and out of of certain markets, particularly the more liquid gateway cities making them more volatile. For example, c.80% of purchases in the City of London were made by overseas investors. This change in the blend of ownership, together with increased capital flows, introduces more volatility.

Similarly, currency has a greater bearing on real estate now than ever before. Investors in London property saw a 20% fall in the value of their asset following the depreciation of the pound post Brexit. Again, this is likely to increase capital flows in and out of the market.

In the event of a market drop, it might be uncomfortably rocky for a while, but quality real estate assets are still very much a dependable holding at end of cycle and into a downturn if investors ensure that they have strong income cash flows, and can hold onto their assets.

Catastrophe bonds

Catastrophe bonds offer excellent diversification value because natural disasters are typically uncorrelated to market movements. Recently, there have been a number of weather-related disasters in North America, which have resulted in large scale property damage. This has caused losses to insurers and owners of cat bonds.

If these losses result in a ‘reset’ of premiums to the higher levels we’ve seen in the past, it may be an opportune time to take exposure. However, there remains a large pool of capital ready to move into the cat bond market if pricing becomes particularly attractive. On that basis, we expect any re-pricing to be more modest than we would have seen in the past.

Low-risk infrastructure

Infrastructure has typically been perceived as a lower risk, income-oriented asset class with some diversification value versus traditional assets. Infrastructure’s predictable, long-term cash flows, which are linked to inflation in various ways, are generally viewed as a relatively safe bet versus equities.

Within infrastructure, sub-sectors like social infrastructure (public private partnerships) tend to be highly insulated from the vagaries of the wider economy. However, it has become increasingly challenging for investors to source new investments in this space.

There are slightly more economically sensitive forms of infrastructure investment still offering good return prospects, as long as you’re willing to exclude large trophy assets. By considering carefully where to sit in the capital structure (senior, mezzanine or equity), it’s possible to tailor exposure to the cyclicality embedded in more economically sensitive assets while still benefiting from many of the most desirable aspects of the asset class.

Additional tier 1 (AT1) bonds

If we start seeing interest rates rise during this late cycle stage, AT1 bonds, issued by banks, could be useful. AT1s respond differently to rising rates than equities. While bank shares benefit from controlled rate rises, the effect on AT1s is more ambiguous. Given the perpetuity of AT1s, they can lose value if rates rise and their call option is not exercised by the issuer. However, a lot of AT1s were issued when credit spreads were wider than they are now, consequently many still look likely to get called and generate positive returns even if rates rise.

If rates increase by less than expected or remain compressed, AT1s can benefit, and are likely to be called (at their first call date) by the issuer who will then have to issue new AT1s at the prevailing market rate to maintain capital requirements. This new batch of AT1s could be attractively priced if credit spreads widen from where they are now.

Private equity

Private equity will tend to be highly correlated to public equities, with the downside potential often likened to holding midcap public equities with additional leverage to boot. Just because private equity has an ‘alternatives’ label, investors shouldn’t assume defensiveness. But private equity can play a part in a portfolio at the end of the cycle by making capital work harder. For example, a well considered and structured investment in a barbell of cash and private equity can provide better returns for a similar level of risk compared to richly-valued public equities.

Additionally, if the cycle is rolling over, investing with a skilled private equity manager might present a chance to deploy capital into bargain opportunities before the next recovery. Such an approach needs to be well researched given that it depends not only on timing, but also on an expert manager with strong execution capabilities.

Other alternatives strategies

There are numerous alternative strategies but some will offer more defensive characteristics than others:

Equity pairs trading can provide a defensive profile. The strategy waits for a weakness in the correlation of two normally highly correlated stocks, such as Shell and BP, before shorting the over performer and going long in the underperformer. When the securities return to their statistical norm, the position is closed. The strategy effectively means that the individual positions hedge or de-risk one another. In theory, this market neutral strategy allows traders to profit in virtually any market conditions without being exposed to the market direction.

Long bias and long/short strategies could work well in the near term, particularly where the manager has a distinctly contrarian mind set. These types of managers tend to avoid holding popular momentum-driven stocks, such as ‘FAANG’ stocks. Although momentum securities are often highly profitable towards the end of the cycle leading the market upwards, they are also likely to be the securities that push the market down the most when it turns.

Trend following is a strategy that might be counter intuitive for investors concerned about herd behaviour but it can prove particularly successful in a downturn. Trend followers use rules-based strategies and can quickly latch on to prevailing developments in equities, currencies and other markets.

During a crash, investors may underreact, manifesting itself in the form of buying the dip, being in denial of the change in the cycle, or they may simply take too long to react. Nimble, systematic trend-following programmes exploit market movements quickly and hold no emotional attachments.

However, be warned that trend following is not without risk. It is far from a guaranteed hedge and can even work against the investor in some downturns. But it can play a role in the portfolio as long as expectations and portfolio exposures are carefully managed.

Discretionary macro is a strategy that allows investment managers to go long or short, across all the major markets including equities, bonds, interest rates and currencies. The strategy tends to be overseen by a human and decisions are made based on macro-economic analysis.

The manager will typically have a very good technical understanding of financial markets. They rely on being able to predict the evolution of economic and investment cycles in advance of the average investor, or they structure trades in a way that thrives off the volatility created as problems develop, with little regard to the specific catalyst.

Conclusion

The current landscape of high valuations is challenging investors to reassess their investments and adopt a range of alternative approaches. Investors need to turn over more stones and diversify portfolio positioning to generate adequate future returns.

Although high valuations in bonds and equities have spurred a shift towards alternatives as this cycle matures, the increase in alternatives investments isn’t just a cyclical fad. It’s part of a longer term trend playing out in the market.

Alternative asset strategies are increasingly accessible, and investors are recognising the benefits of a wider tool kit. Alternatives can help their portfolios deliver better risk-adjusted returns in a broad range of market environments and can provide valuable portfolio flexibility as those market conditions continue to change.

So What?

The increase in alternatives investments isn’t just a cyclical fad - it’s part of a longer term trend playing out in the market.

Alternative asset strategies are increasingly accessible, and investors are recognising the benefits of a wider tool kit. Alternatives can help their portfolios deliver better risk-adjusted returns in a broad range of market environments and can provide valuable portfolio flexibility as those market conditions continue to change.

What question should we tackle next?

Email your suggestion toeditorial@fil.com

This document is for Investment Professionals only and should not be relied on by private investors. This document is provided for information purposes only and is intended only for the person or entity to which it is sent. It must not be reproduced or circulated to any other party without prior permission of Fidelity. This document does not constitute a distribution, an offer or solicitation to engage the investment management services of Fidelity, or an offer to buy or sell or the solicitation of any offer to buy or sell any securities in any jurisdiction or country where such distribution or offer is not authorised or would be contrary to local laws or regulations. Fidelity makes no representations that the contents are appropriate for use in all locations or that the transactions or services discussed are available or appropriate for sale or use in all jurisdictions or countries or by all investors or counterparties. This communication is not directed at, and must not be acted on by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required. Fidelity is not authorised to manage or distribute investment funds or products in, or to provide investment management or advisory services to persons resident in, mainland China. All persons and entities accessing the information do so on their own initiative and are responsible for compliance with applicable local laws and regulations and should consult their professional advisers. Reference in this document to specific securities should not be interpreted as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. The research and analysis used in this documentation is gathered by Fidelity for its use as an investment manager and may have already been acted upon for its own purposes. This material was created by Fidelity International. Past performance is not a reliable indicator of future results. This document may contain materials from third-parties which are supplied by companies that are not affiliated with any Fidelity entity (Third-Party Content). Fidelity has not been involved in the preparation, adoption or editing of such third-party materials and does not explicitly or implicitly endorse or approve such content. Fidelity International refers to the group of companies which form the global investment management organization that provides products and services in designated jurisdictions outside of North America Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. Fidelity only offers information on products and services and does not provide investment advice based on individual circumstances. Issued in Europe: Issued by FIL Investments International (FCA registered number 122170) a firm authorised and regulated by the Financial Conduct Authority, FIL (Luxembourg) S.A., authorised and supervised by the CSSF (Commission de Surveillance du Secteur Financier) and FIL Investment Switzerland AG, authorised and supervised by the Swiss Financial Market Supervisory Authority FINMA. For German wholesale clients issued by FIL Investment Services GmbH, Kastanienhöhe 1, 61476 Kronberg im Taunus. For German institutional clients issued by FIL Investments International – Niederlassung Frankfurt on behalf of FIL Pension Management, Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ. In Hong Kong, this document is issued by FIL Investment Management (Hong Kong) Limited and it has not been reviewed by the Securities and Future Commission. FIL Investment Management (Singapore) Limited (Co. Reg. No: 199006300E) is the legal representative of Fidelity International in Singapore. FIL Asset Management (Korea) Limited is the legal representative of Fidelity International in Korea. In Taiwan, Independently operated by FIL Securities (Taiwan ) Limited, 11F, 68 Zhongxiao East Road., Section 5, Xinyi Dist., Taipei City, Taiwan 11065, R.O.C. Customer Service Number: 0800-00-9911#2

IC17-103