INVESTMENT OUTLOOK

Fi del i t y Per sonal I nvest i ng s mar ket and i nvest ment vi ew

The bull market that began more than ve years ago is
maturing. The latter stages of multi-year rallies can be
rewarding for investors but the risks also increase. This is
a time for an even greater focus on where the best returns
can be found and where the pitfalls might be lying in wait.
Theoutlook is for positive but probably more volatile markets.
By Tom Stevenson, Investment Director
October
2014
2
Executive summary
Please note the views in this document should not be seen as investment advice. If you are unsure about the suitability of an
investment, you should speak to an authorised nancial adviser.
Asset classes
Current
View
3 Month
Change
Equities

The backdrop remains supportive for equities and they are still the preferred
asset class even if volatility may start to rise from todays low base.
Bonds

Bonds have performed better than expected this year thanks to investors
appetite for income. That will continue to provide the bulk of total returns.
Capital growth looks unlikely.
Property

The yields available on commercial property continue to look attractive but

some investors are starting to make assumptions about rental growth that may
prove over-optimistic.
Commodities

After a dicult year for commodities, prices have fallen so far in some cases
that they are starting to interest contrarians. A rising dollar will tend to put a
cap on values, though.
Cash

As the bull market matures, the risks also rise. That means that the chance of
acorrection, especially as interest rates rise, increases. Keeping some cash
onhand to take advantage makes sense.
Equity
regions
Current
View
3 Month
Change
US

The US should continue to lead markets higher although the risks and rewards
are more nely balanced than they were as valuations have expanded and
monetary tightening approaches.
Japan

Japan has recovered the ground lost earlier in the year despite evidence that
the recent sales tax hike hit the economy hard. Reforms, the return of ination
and valuations are positives.
UK

The UK is the bright spot in Europe economically. For investors too, it looks
attractive, with valuations lagging those in the US. A weaker pound and slower
monetary tightening will help.
Europe

The mismatch between the markets re-rating and an absence of meaningful

earnings growth is a negative. But the implementation of quantitative easing
should underpin shares.
Emerging
Markets (inc.
Asia ex Japan)

The unexpected performer in 2014, emerging markets, especially Asia, have

deed the sceptics. A rising dollar is a headwind, but valuations are favourable.
Three Month Change: the direction of the arrows indicates any change in the view since the previous Investment Outlook.
For more market data including full 5 year performance gures see page 15
Important information: Please be aware that past performance is not a guide to what might happen in the future.
Thevalue of investments and the income from them can go down as well as up and investors may not get back the amount
invested. When investing in overseas markets, changes in currency exchange rates may aect the value of your investment.
Investments in small and emerging markets can be more volatile than those in other overseas markets. This information does
not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated
as a recommendation for any investment. Investors should also note that the views expressed may no longer be current
and may have already been acted upon by Fidelity. Fidelity does not give investment advice. If you are unsure about the
suitability of an investment, you should speak to an authorised nancial adviser.
3
Introduction
Welcome to the fourth issue of our quarterly Investment Outlook
report. We have emerged broadly unscathed from a summer of
geo-political uncertainty but we are entering a period in which
domestic political concerns will take on added signicance.
The recent Scottish referendum was more destabilising than
most investors had expected until a few weeks before the vote
itself. Looking ahead, we face elections in the US, Brazil and, of
course, the UK next May.
Politics will clearly be a big inuence on sentiment in the months
ahead, but so too will economics, with a host of unanswered
questions in: the Eurozone, where the battle against deation
has barely begun; the US, where life after quantitative easing is
imminent; China, where the Governments ability to control market
forces remains unproven; and at home, with the key question of
when and how far interest rates will rise still in the balance.
In light of these uncertainties, there are some adjustments to
our overall market view, summarised in the table opposite. We
remain positive on equities and concerned about the impact of
rising interest rates on bonds. Property has been a great source
of income but there is a need to be selective in a market thats
frothy in places. Commodities tend not to thrive in a strong dollar
environment but they have fallen a long way in some cases and
are starting to interest contrarians.
In terms of geography, we still like the US but worry about
valuations. Europe will be a beneciary of more central bank
stimulus even if earnings are yet to come through to justify
the regions re-rating. The UK looks interesting and emerging
markets have come back in favour this year, with a signicant
rotation back into Asia apparently underway. Japan has
steadied and still looks good value.
Please do remember that we try to take a long-term view and
encourage you to do the same with your investments. The best
protection against market uncertainty is diversication. Place
your eggs in several baskets and you wont worry too much
when things dont go exactly as you expected.
I would as usual like to thank the many experts, both within
Fidelity and outside, whose ideas have helped inform this
quarterly outlook. On the following pages, I reference some
interesting thoughts on the equity market cycle from Citi which
I found particularly helpful. I also learned a lot from my Asian
colleagues on their recent visit to London. This Outlook is not
meant to represent a house view and you should not see it as
such nor treat it as investment advice that is suitable to your
personal circumstances.
I hope that the ideas here will help you in your own thinking
about the markets and your investments. I remain convinced
that the best way for most investors to execute their investment
strategy and achieve their nancial goals is through a portfolio
of well-spread investment funds. At the end of each section in
this report, I have highlighted three representative funds and
atthe end of the Outlook you can nd the Select List in full.
Ifyou prefer to leave asset allocation and fund selection to the
experts, you may wish to look into our Pathnder range of risk-
rated multi-asset funds.
As usual, I will be presenting a live online question and answer
session at which I will take questions about the views expressed
in this Outlook. This will be available on our website as a
recording after the event at delity.co.uk/investmentoutlook.
Acknowledgements
I would like to thank the many knowledgeable and experienced people within the wider Fidelity organisation who have
helped me develop the ideas in this Investment Outlook. Although the views expressed here do not represent the shared
opinion, or house view, of Fidelitys investment team, the combined expertise of over 350 investment professionals in 13
countries is a very signicant resource on which I have been able to lean. In particular, I would like to thank Trevor Greetham,
Anna Stupnytska, James Bateman and Katie Roberts in Fidelity Solutions; Paras Anand and Richard Lewis, respectively
the Heads of European and Global Equities; Alex Treves, Head of Equities in Tokyo; Matthew Sutherland, Head of Product
Management in Hong Kong; Andy Howse and Stuart Rumble, Investment Directors in our London-based Fixed Income team;
and Neil Cable, who heads Fidelitys Real Estate investment team. Tom Stevenson, Investment Director.
4
Focus: Five years and counting
The autumn months can be dicult in nancial markets.
Morethan ve years into a bull market, it would be surprising
if investors were not even more anxious than usual at this time
of year about the prospect of a correction. So this quarter,
before getting into individual asset classes and geographies,
I want to pause to explore where we might be in the current
marketcycle.
I have been watching markets for around 25 years now. During
that time I have witnessed three major cycles and, while they
have diered from each other in key ways, they have also
shared enough features to make comparisons worthwhile. To
paraphrase Mark Twain, they have not repeated themselves but
they have rhymed.
The market strategists at Citi, whose work I rate highly, recently
analysed these three market cycles and identied four main
phases in each. They did this by tracking the performance of
shares and their close cousins high-yield bonds, which behave
in a similar way but, crucially, not at the same time.
Keeping an eye on the high yield bond market can provide
a useful guide for equity investors because the movements in
these riskier bonds, both up and down, tend to precede those
in the equity market. They can warn investors that a change in
direction for shares is on its way.
To be precise, what Citi is tracking is not the price of high-
yield bonds but the dierence between the income they oer
investors and that which an investor can earn from a safe
government bond. This gap, or spread to use the jargon, is
a good indicator of changes in sentiment because optimistic
bond investors will accept less income (a narrow spread) while
nervous investors will demand more (a wider spread).
Havent we been here before?
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1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 0214
US High Yield Spread MSCI World
Source: Citi Research, Thomson Reuters Datastream, 1.1.88 to 12.9.14.
Total returns in terms
Past performance is not a guide to future returns.
When investing in overseas markets, changes in currency
exchange rates may aect the value of an investment.
Forfull 5 year performance gures please see page 15.
5
In December 2008, at the height of the nancial crisis, the high
yield bond spread began to narrow several months before
investors had the condence to begin to move back into the
bombed-out equity market. This is typical of the start of the
market cycle when the perceived risk of holding bonds reduces
even as shares continue to suer from falling prots. The turn in
the bond market alerts stock market investors to begin looking
for opportunities to get back into the equity market.
A similar lag can occur at the other end of the cycle. Aftera
long period in which bond spreads have narrowed and share
prices have risen, the rst widening in bond spreads can serve
as a warning for equity investors. Its like the canary falling
o its perch in the coal mine. It is an early signal that the
environment for equity markets will also turn down at some
point. However, equities usually continue to perform well at this
point in the cycle because company prots are still rising.
So, where are we in this cycle? After more than ve years of
positive returns for both bonds and equities, the rst signs of
nervousness in the high yield bond market have emerged.
This phase of the market has been unusually prolonged due
to the distorting eect of quantitative easing, which has forced
investors to chase yield wherever they could nd it. But that
party is drawing to a close.
Over the summer there were some sizeable outows from
corporate bond funds. It now looks as if we might be on the
cusp of a widening in bond spreads again.
This is the period in which equities can continue to rise but in a
more volatile fashion, with more frequent setbacks than investors
have become used to. If you cast your mind back to the late 1990s,
you might recall fast-rising markets but with some unpleasant
downward lurches such as during the Asian nancial crisis.
My take on this is that the bull market which began in March
2009 is maturing but is still some way from being nished. In the
1980s, the period between the high-yield signal and the equity
market turning down lasted 16 months and saw a further 30%
rise for shares; in the 1990s, markets rose by another 50% in two
and a half years.
So this can be an exciting time to be invested in shares but it is
also a time to be careful. In the cycle that ended in 2008, the
nal phase lasted just four months and the market only rose by
another 3% after bond spreads started to widen in the summer
of 2007.
Citis analysis makes a lot of sense to me. It ts with my belief that,
as the European Central Bank picks up the stimulus baton from
the Federal Reserve, and as economic recovery helps corporate
prots rise further, equity markets could continue rising for some
time to come. Reasonable valuations and a lack of euphoria in
the markets also suggest we are still some way o the top.
But I also expect volatility to begin to rise in the months ahead
as market risks increase. I see risks on three fronts: economics,
politics and monetary policy.
The ups and downs of 2014
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Nikkei 225 FTSE 100 MSCI Europe
Shanghai SE S&P 500 MSCI Emerging Markets
Source: Thomson Reuters Datastream, 1.1.14 to 16.9.14
Past performance is not a guide to what might happen in
the future. When investing in overseas markets, changes
in currency exchange rates may aect the value of an
investment. Investing in small and emerging markets can
be more volatile than those in other overseas markets.
For full 5 year performance gures please see page 15.
On the economic front there has continued to be plenty to worry
about over the summer. In Europe, growth has stagnated, with
Italy falling into recession and the threat of deation increasing.
Elsewhere, Japan has struggled following Aprils consumption tax
hike and in China there are concerns about the property market,
with prices falling in a majority of the countrys major cities.
6
In some ways, economic risk is less of a concern (because it is
more measurable) than the second growing risk factor, politics.
I believe the next 12 months will be dominated by political
uncertainty in many countries. The recent Scottish referendum
provided an unexpected reminder that political risk can be
underestimated by markets, failing to appear on investors
radars until suddenly it is everyones major concern.
Looking ahead, I expect the mid-term elections in America
in November will re-awaken dormant concerns about the US
budget and debt ceiling. The UK election next spring is more
important than usual because it may have a direct bearing
on our future in or out of the EU. Add to these the ongoing
problems in Ukraine and the Middle East, as well as unresolved
tensions between China and Japan, and the next 12 months
have the potential to be rather more interesting geo-politically
than markets have factored in.
The third risk monetary policy is probably the best
understood but potentially the most unsettling for markets. While
we may be aware that US and UK interest rates will rise either
later this year or in 2015, we have basked in an environment of
rock bottom borrowing costs for so long now that it is uncertain
how markets will respond when the cycle actually turns.
My nal observation this quarter is about the importance of
diversication. This has always mattered but never more so than
this year when the conventional wisdom on many investment
themes has been turned on its head.
I have written several times about how a Great Rotation out of
bonds and into equities failed to materialise. As my comments here
on high yield bonds suggest, I feel we are closer to that shift than
we have been, but betting against bonds has been an expensive
mistake this year. With bonds providing a useful counter-balance to
equities in a well-diversied portfolio and interest rates staying low,
they are likely to continue to attract fund ows.
A rotation that did happen this year, and which took many
of us by surprise, was the resurgence of interest in emerging
markets, in particular those in Asia, as the returns chart on this
page illustrates. Japan has also unwound its underperformance
earlier in the year in recent months. Adopting too rigid a
position on any of these would have been costly.
So, while this quarterly outlook attempts to show our preferred
asset classes and regions, I will continue to stress that the most
sensible approach to managing your portfolio is to ensure that
you carry your eggs in a wide variety of baskets.
Sector and asset class rotation 2013 and 2014
S&P 500
MSCI Developed Equities
Japan Nikkei 225
ML Global High Yield Bonds
MSCI Asia ex Japan
MSCI Emerging Equities
German 10 y Bund
ML Global Corporate Bonds
Brent Crude Oil
UK 10 Year Gilts
CRB Commodities Index
JPM EMBI Emerging Debt
Copper
US 10 Year Treasury
GSCI Soft Commodities
Gold
Silver
2013
0% -10% 10% 20% 30% 40% -20% -30% -40%
S&P 500
MSCI Emerging Equities
MSCI Asia ex Japan
JPM EMBI Emerging Debt
MSCI Developed Equities
US 10 Year Treasury
UK 10 Year Gilts
German 10y Bund
ML Global Corporate Bonds
ML Global High Yield Bonds
Gold
CRB Commodities Index
Japan Nikkei 225
Silver
GSCI Soft Commodities
Copper
Brent Crude Oil
2014
-15% -12% -9% -6% -3% 0% 3% 6% 9%

Source: DataStream, as at 16.9.14
Past performance is not a guide to future returns. For full 5
year performance gures please see page 15.
7
Asset classes
EQUITIES
We have preferred equities to other asset classes this year and
overall they have not disappointed. That said, other investments
have done better than expected so relatively speaking there
has been less outperformance by shares than forecast.
Lookingforward, the case for equities remains intact.
The underlying nancial environment is unchanged. We are still
working o the excesses that led to the nancial crisis and that
means that interest rates will stay low and corporate prots,
free of tight monetary policy or wage demands from workers,
should stay high. Loose monetary policy has an explicit aim of
promoting wealth by boosting the value of asset markets. This
may be socially divisive, making the rich richer, but investors
should respond to how the world is not how it should be.
Markets will continue to be underpinned by policy.
This is a good backdrop for global equity markets and the
expansion of valuation multiples from very low in 2009 to
reasonable today could well continue until they reach too high
in a couple of years time. That would be the pattern of previous
cycles such as the one in the 1990s. The economic environment
is favourable. Growth is accelerating, albeit not that fast,
ination remains subdued and central banks can therefore
staysupportive.
In that context, the search for yield will continue and equities
remain one of the best sources of reliable and growing income.
Dividend yields, everywhere but the US, remain safely above
those on government bonds. I expect volatility to increase as
the bull market matures, but it is starting from such a low base
that it is not a problem. Other supports include corporate
activity. Takeovers are good news for target companies but
when the market likes the underlying rationale for deals, as it
does now, it can also help acquirers. At the top of the cycle,
silly deals start to destroy shareholder value but we are
notthereyet.
Overall, decent growth, reasonable valuations, better animal
spirits and supportive policy are positives. This is still a recipe
for remaining fully invested and favouring equities.
There remains the question of what kinds of equities investors
should favour at this point in the cycle. In the late 1990s, cyclical
stocks tended to outperform defensives. Companies which can
demonstrate growth were revalued versus those which were
attractive on value grounds. Finally, large cap stocks did better
than small caps.
Those seem like sensible themes to pursue now. Interestingly,
small caps have notably underperformed this year. I think this
could continue.
Equities dividend yield trumps govt. bond income
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Dividend Yield Government Bond Yield
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Source: Citi Research Global Equity Strategy, Thomson Reuters
Datastream, as at 12.9.14
Past performance is not a guide to future returns.
When investing in overseas markets, changes in currency
exchange rates may aect the value of an investment.
If youre interested in global equities three funds on our
Select List you may like to look at are:
Lazard Global Equity Income
Sarasin Global Higher Dividend
Templeton Growth
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
8
BONDS
It is hard to get very excited about any part of the bond
universe government bonds or investment grade and high
yield corporate bonds. Yields are low and the extra income
oered by riskier corporate bonds compared with super-safe
government bonds barely compensates investors for the extra
risk of default.
That said, bonds have performed much better than most
observers expected at the beginning of the year because yields
have stayed lower than predicted and there is good reason to
suppose that they will stay subdued for the foreseeable future.
There is a strong appetite for income in a low interest rate
environment so, as long as interest rates remain near zero, the
returns on bonds will stay attractive to many investors.
Couple that with the diversication benets that bonds can
provide a broad-based portfolio and the risks to capital that
many have worried about for the past couple of years may well
continue to prove elusive.
One goal of this Outlook, however, is to help investors weigh up
the relative merits of dierent asset classes and geographies.
In that context, bonds look less appealing than equities. Income
may well oset any small capital loss caused by higher bond
yields, but there seems little prospect of much capital gain.
Income will be the principal driver of total returns.
The heavy outows from high yield bond funds for a short
period in the summer were a salutary reminder that sentiment
can change quickly. After years of positive ows into bonds, a
change of heart by investors could test the liquidity of a market
which is less well served by market makers than it used to be.
So, caution is the watchword. That also means not taking too
big a bet on any one part of the bond market and for me that
argues for holding bonds either within a strategic bond fund
or within a broad-based multi-asset income fund which can
oer an attractive yield without the associated volatility of the
equitymarket.
Sentiment shifts how high yield bonds fell from grace
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1,500
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3,000
3,500
4,000
4,500
Jan-14 Mar-14 May-14 Jul-14 Sep-14
Global High Yield Bond - cumulative fund ows in m
Source: Credit Suisse as at 12.9.14
Important information: Please be aware that the price of bonds
is inuenced by movements in interest rates, changes in the credit
rating of bond issuers, and other factors such as ination and
market dynamics. In general, as interest rates rise the price of a
bond will fall. The risk of default is based on the issuers ability to
make interest payments and to repay the loan at maturity. Default
risk may therefore vary between dierent government issuers as
well as between dierent corporate issuers.
If youre interested in bonds three funds on our Select List
you may like to look at are:
Fidelity Global Ination Linked Bond
JP Morgan Global High Yield
Threadneedle Global Bond
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
9
PROPERTY
Its been a good year for investing in commercial property and
it is not hard to see why. In an environment of low interest rates,
the relatively secure income that reliable tenants provide is very
attractive. The yields on prime property may have fallen but
they still look good against those on government bonds, cash
or even most equities. Economic recovery also means that the
income from property, like that from shares, can rise as rents
increase. With precious little development having taken place
in recent, credit-starved years the balance between supply and
demand of top-quality space means the balance of power has
shifted from tenants to landlords.
Whenever a market enjoys such favourable circumstances,
investors need to be aware of the dangers of believing the
good times can go on for ever. Pockets of excess are showing
up in various markets which are echoes of the over-condence
which characterised the property market in 2007. Some
investors are starting to make assumptions about rental growth
that may prove to be over-optimistic and this is probably a time
to look at markets, like industrial property, where rental income
rather than rental growth has traditionally been the main driver
of returns. Another area which looks interesting is Germany,
where much of the liquidity created by a newly-accommodative
European Central Bank is likely to end up.
An interesting feature of the European real estate market has
been a rotation back towards the perceived safety of the core.
Investing in Germanys property market, which has historically
avoided the booms and busts of, for example, the UK is attractive
to many investors from around the region who prize safety when
investing in an illiquid asset that can be tricky to exit in a hurry.
Important information: Some funds in the property sector invest
in property and land. These can be dicult to sell so you may not
be able to cash in this investment when you want to. There may be
long delays in acting on your instructions to sell your investment.
The value of property is generally a matter of a valuers opinion
rather than fact.
If youre interested in property three funds on our Select List
you may like to look at are:
Aberdeen Property Share
Fidelity Global Property
M&G Global Real Estate Securities
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
COMMODITIES
The past year has been a dicult one for commodities investors.
Almost without exception, natural resources have lost money
and they have done so with quite a bit of volatility. Also, there
has been a high degree of dispersion between the returns of
dierent commodities so being in the right part of the market has
mattered more than usually. Performance has been so poor that
some sector specialists are starting to ask whether the time has
arrived to get back into the market. The argument for investing in
commodities today has fourparts.
First, commodities are starting to provide useful diversication,
after a period in which they simply tracked equities but with
greater ups and downs. Second, the performance has been so
weak in some cases that contrarians are wondering whether
there is less downside risk than in equities, for example, which
are irting with all-time highs. Third, the demand picture looks
less negative in a couple of key regions Europe and China.
After sharp falls in price, it might only require things not to get
any worse for prices to rise again. Fourth, many of the big
mining companies have, in the past couple of years, undergone
signicant restructurings and management changes to reverse
periods of over-investment.
Finally, commodities can provide a good hedge against ination.
While this does not feel like its a big problem at the moment, the
continuing monetary stimulus in Japan and Europe could in time
trigger a return of uncontrolled price rises. There is a place for a
small commodities exposure in well-balanced portfolios, although
most investors will prefer to achieve this through a well-diversied
fund and through investment in producing companies rather than
the much more volatile commodities themselves.
The end of the super-cycle: how low is too low?
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CRB Commodities Index
Source: Thomson Reuters Datastream, as at 15.9.14
Past performance is not a guide to future returns.
For full 5 year performance gures please see page 15.

If youre interested in commodities three funds on our Select
List you may like to look at are:
BlackRock Gold and General
First State Global Resources
Martin Currie Global Resources
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
10
Equities a regional perspective
US
We have been positive on the outlook for the US equity market
throughout the past year, despite apparently high valuations.
This has been the right approach as the S&P 500 has rewarded
the optimists by pushing through 2,000 for the rst time, a three-
fold rise since the US market bottomed out in March 2009.
As we enter the nal quarter of 2014, two potential headwinds
are emerging: the end of quantitative easing in October and
the re-appearance of political risk as the mid-term elections
take place in November. These will provide support to the
growing number of sceptics who argue that too much good
news is now baked into US share prices.
My view is that the US market will continue to lead global
equities higher but I would ease back on any overweight to
America on valuations grounds. It remains a key part of a
well-balanced equity portfolio but not to the exclusion of other
better-value markets. There is still plenty for the bulls to hold
onto. The US economy remains in good shape and the housing
market in particular is beneting from good aordability and
falling long-term interest rates, which have helped mortgage
demand pick up.
Business and consumer condence is high. Despite this, ination
and wage pressures remain pretty benign, which means that
the Federal Reserve can maintain its supportive position on
interest rates even as money printing nally comes to an end.
We could be another nine months away from the rst actual
rate hike. This said, the past year or so has seen the stock
market catch up with the earnings improvements of 2011 and
2012. At the time, investors treated these as unsustainable and
were unprepared to pay up for them. Having re-rated over the
past year or so, the pressure is now back on US companies to
keep growing earnings to justify todays valuations. That may
prove dicult with prot margins so high.
There is a plausible argument that margins are not actually as
high as they look, boosted by one-o tax schemes, for example.
But it is clear that it will be hard work to keep the earnings
momentum going.
The bottom line for me, however, is that we remain in an equity
bull market, which could have a couple of years yet to run. In
that environment, it would be odd to not also be positive on the
worlds largest equity market.
The mature end of an equity bull market typically favours
large companies in liquid markets. I think the US will get more
expensive before it starts to get cheaper again.
US not expensive (but not cheap either)
Comparing share prices with 10-year average earnings
0
10
20
30
40
50
1
9
5
4
1
9
5
9
1
9
6
4
1
9
6
9
1
9
7
4
1
9
7
9
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8
4
1
9
8
9
1
9
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4
1
9
9
9
2
0
0
4
2
0
0
9
2
0
1
4
US Shiller S&P500 Price/Earnings
Source: Thomson Reuters Datastream/Fathom Consulting, September 2014
Past performance is not a guide to future returns.
Wheninvesting in overseas markets, changes in currency
exchange rates may aect the value of your investment.
If youre interested in the US three funds on our Select List
you may like to look at are:
Fidelity Funds America
JP Morgan US Smaller Companies
Old Mutual North America
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
11
UK
Mind the gap how London has underperformed
NewYork since the crisis
S
e
p
-
0
8
M
a
r
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0
9
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S
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4
S&P 500 FTSE 100
180
160
140
120
100
80
60
Source: Thomson Reuters Datastream, 16.9.08 to 16.9.14. Total returns
in terms
Past performance is not a guide to future returns.
Wheninvesting in overseas markets, changes in currency
exchange rates may aect the value of your investment.
From an economic point of view, the UK is the bright spot in
Europe, with GDP and unemployment both moving in the right
direction. For investors, too, it looks attractive thanks to its
valuation edge over many markets, in particular the US which it
has underperformed signicantly since the nancial crisis.
This is in part due to the make-up of the UK market it had a
heavier exposure to the commodity and mining boom and less of
a weighting to the parts of the US market which have done well
such as biotech and mobile software.
That has resulted in a wide valuation gap, with the dividend yield
on UK shares much more generous on average than in America
despite similar expectations for growth.
Another factor acting in the UKs favour is the high degree of
political uncertainty, which should serve to limit policy tightening.
Any sterling weakness will also help the UKs exporters and
overseas earners (the UK market makes around 40% of its
earnings overseas).
UK shares have been seen as a play on emerging markets, which
has not always been a positive in recent years but looks more of
an advantage today. If you are more positive on the outlook for
the developing world, then the UK is a good way to achieve that
exposure via well-established franchises with good governance.


If youre interested in the UK three funds on our Select List
you may like to look at are:
AXA Framlington UK Select Opportunities
Fidelity UK Select
Liontrust Macro Equity Income
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
EUROPE
I have been pretty negative on Europe this year and this has
been justied by poor economic growth and very low ination,
verging on deation. For investors, however, Europe has been
a surprisingly rewarding place to invest, with shares continuing
the re-rating they have enjoyed since Mario Draghi promised to
do whatever it takes to support the Eurozone in the summer of
2012. They have seen valuation multiples rise despite a notable
absence of support from rising corporate earnings.
Normally, I would expect this mismatch between earnings and
valuations to be corrected either by higher prots or, failing
that, by lower share prices.
However, in recent weeks the ECB president has ridden to the
rescue again with his apparent acceptance of the need at
some point to engage in the quantitative easing that did so
much to stabilise and then inate asset prices in the US, Japan
and Britain.
As a consequence I would not be surprised to see share prices,
especially of lower-quality companies, continue to rally even if
earnings do not come through as hoped.
You may not like QE but it has not been sensible to ght central
banks when they are committed to using this kind of extreme
monetary stimulus.
QE works on several dierent levels at the same time. It keeps
real bond yields low, which drives up the value of real assets
(property) and nancial assets (equities and bonds); it increases
the collateral value of banks assets and so encourages
lending; and it encourages companies to invest by making it
cheaper to build rather than buy in the market.
Finally, it reduces the level of the exchange rate. This is crucial
for Europe, which is heavily exposed to overseas trade. In fact
it has been estimated that a 10% reduction in the value of the
Euro increases GDP by 1.2%.
Many economists are forecasting that the Euro could fall as low
as $1.20, which would give the regions companies a big boost
even if the domestic outlook remains dicult. This will help solve
the earnings mismatch.
If youre interested in Europe three funds on our Select List
you may like to look at are:
BlackRock Continental European
Henderson European Special Situations
Invesco Perpetual European Equity Income
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.

12
JAPAN
My enthusiasm for Japan at the start of the year was given
a pretty tough stress test the market was one of the worst
performers in the rst quarter as investors eyed the upcoming
implementation of a consumption tax hike and worried that the
structural reforms element of the Abenomics programme would
be too hard to execute.
The Nikkei has now clawed back most of the lost ground and
looks in much better health. Crucially it has done that despite
evidence that the sales tax hike did actually weigh heavily on
the Japanese economy. The fall in second quarter GDP was a
lot worse than expected.
The good news is that we are starting to see signs of income
growth. There is, however, still further to go because the
downside of the push to restore a modest level of ination to
Japans stagnant economy has been a short term drop in real,
ination-adjusted wages. It would be wrong to underestimate
what a galvanising eect a return to ination could have,
changing behaviours in a country that for nearly a generation
has become resigned to no wage growth and falling prices.
Interestingly, the poor GDP numbers did not have such a
dramatic impact on the stock market. That reects a belief
that the Government and Bank of Japan are committed to the
success of Abenomics and will respond with further stimulus
if necessary, for example by scrapping the planned additional
hike in the consumption tax next year.
It also reects a growing belief that corporate sector reforms,
new governance and stewardship codes and the use of
shareholder-friendly return-on-equity benchmarks, are genuine
steps in the right direction. The impetus for change is coming
from within; in a society where peer pressure matters, that
makes success much more likely. In my view Japan has seen
the challenge from China and realised that, if it is to remain
a signicant regional force, it can only do so from a position
of economic strength. When Japan understands the need for
radical change, it has shown many times in the past that it has
the will to push it through.
The nal, and key, reason to be positive on the Japanese
market is the fact that valuations are attractive compared with
other developed markets. Japan has been o investors radars
for so long that further signs of improvement could lead to a
signicant re-rating and fund in-ows. I remain positive on this
out of favour market.
Japan GDP gyrations
-8
-6
-4
-2
0
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1
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J
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n

G
D
P

q
u
a
r
t
e
r
l
y

%

c
h
a
n
g
e
,

a
n
n
u
a
l
i
s
e
d
Source: Thomson Reuters Datastream/Fathom Consulting , September 2014
Past performance is not a guide to what might happen in
the future. When investing in overseas markets, changes
in currency exchange rates may aect the value of
aninvestment.
If youre interested in Japan three funds on our Select List
you may like to look at are:
Aberdeen Japan Growth
Old Mutual Japanese Select
Schroder Tokyo
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
13

EMERGING MARKETS (INC. ASIA PACIFIC EX-JAPAN)
The rotation from bonds to equities may not have happened
this year. One rotation that has, however, is the one back from
developed to emerging markets, and to Asia in particular. If you
look at the best performing markets of the past three months
they are almost all in the Far East. There are a few reasons for
this. First, valuations are more attractive in emerging markets
than they are in the developed world after several years of
underperformance. This is largely driven by very cheap markets
in China and Korea not all markets are such good value but
overall there is a valuation advantage.
Second, political developments have been pretty positive
in a number of countries. India and Indonesia, for example,
have both elected new, business and investor-friendly heads
of government. Investors anticipated these victories and my
fear three months ago was that it might be better to travel
than to arrive. However, momentum has remained strong and
I think these two very populous countries stand a real hope of
providing a new engine for global growth in the years ahead.
Third, reforms continue to be pushed through in China. In the
short term these have been more supportive of the Old China
stocks represented by the large state-owned companies but in
time the benet will also be felt by the New China businesses
focused on the consumption story. These will be the main driver
of market growth in the next few years. There remain valid
concerns about the Chinese property market but, on a single
digit multiple of average earnings, this is priced in.
Fourth, fears about the end of quantitative easing in the US
seem to have eased. Although the tapering of monetary
stimulus will come to an end within the next few weeks, it is
clear that Fed chair Janet Yellen is in no particular hurry to
actually raise interest rates.
The nal reason to think that emerging markets, and especially
Asian markets, can continue to perform well is the fact that
sentiment has improved only from very poor to indierent.
Positive fund ows from foreign investors are a sign that money
sees better opportunities here than in higher-priced US equities
or in European markets still dogged by deationary fears.
Fund ows by foreign investors into Asia
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-10,000
-5,000
0
5,000
10,000
15,000
U
S
$

m
i
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l
i
o
n
s
Chart shows net foreign purchases of shares in India, Indonesia, Korea,
Philippines, Taiwan, Thailand, Malaysia
Source: Fidelity, September 2014
Past performance is not a guide to what might happen in
the future. When investing in overseas markets, changes
in currency exchange rates may aect the value of an
investment. Investing in small and emerging markets can
be more volatile than those in other overseas markets.

If youre interested in Emerging Markets three funds on our
Select List you may like to look at are:
JP Morgan Emerging Markets
Lazard Emerging Markets
Threadneedle Global Emerging Markets
For a full list of Select List funds in this sector please see
the fund data section at the back of this report.
14
And nally...
After a full year of writing these Investment Outlook reports,
I am more sure than ever of the need for this kind of market
overview. As I said in the introduction, this is not a house view
and it is not investment advice. What I hope it can provide is a
useful framework for your investment decisions at a time when
we are all being called on to take ever greater responsibility for
our nancial futures.
Next April we will be given unprecedented control over our
nances when far-reaching changes to the UKs pensions
landscape take eect. Until recently, most people were
able to remain in blissful ignorance about the economic
and investment environment in which their pensions were
growing. That was someone elses problem and the promise
of a regular income related to their nal salary was all that
mattered to nearly allretirees.
Today, the majority of us save into money purchase pensions
and many of us will choose to continue investing our pension
pots long after we have stopped paying into them. The advent
of income drawdown means few will be able to get away with
knowing little and caring less about investment markets.
Tom Stevenson
Investment Director, Fidelity Personal Investing
INVESTMENT VALUATION AT A GLANCE
Price-earnings
ratio 2014E
Dividend yield
2014E
Equities % %
US 17.1 1.9
Europe 15.0 3.5
UK 14.0 3.7
Japan 14.5 2.0
Asia Pac ex Japan 13.4 3.1
Emerging Market Asia 12.2 2.5
Latin America 15.0 2.9
Central East Europe,
Middle East & Africa
9.6 3.6
Redemption Yield
Bonds %
ML Global High Yield 6.2
German 10-Year Bunds 1.0
ML Global Corporates 2.7
UK 10-Year Gilts 2.5
US 10-Year Treasuries 2.6
Market data
Please be aware that past performance is not a guide to what might happen in the future. When investing in overseas
markets, changes in currency exchange rates may aect the value of your investment. Investments in small and emerging
markets can be more volatile than those in other overseas markets.
15
INVESTMENT PERFORMANCE AT A GLANCE
%
(as at 16th Sept) 3 m 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Equities
S&P 500 8.6 13.3 9.2 19.8 20.7 18.1
FTSE 100 1.5 11.9 0.2 14.5 16.2 6.2
FTSE 250 0.0 15.1 2.6 19.7 29.7 4.6
FTSE Small Cap - 0.1 4.2 3.3 13.1 35.0 6.5
NIKKEI 225 6.3 5.5 4.9 0.8 29.6 1.7
MSCI Europe - 0.3 4.6 -5.8 15.4 20.8 7.5
MSCI Asia ex Japan 6.4 20.2 -1.7 7.1 10.6 7.4
MSCI Emerging Markets 6.7 22.0 -3.6 4.0 3.6 6.3
MSCI World 3.9 10.0 3.3 14.7 20.2 12.9
Shanghai SE 16.8 -7.2 - 0.5 -15.9 10.5 0.7
MSCI Russia - 6.2 15.7 5.9 7.0 -2.4 -19.1
Bonds
US 10-Year Treasuries 0.8 9.9 10.4 5.0 -5.7 5.9
UK 10-Year Gilts 3.6 9.7 11.6 7.0 -4.0 7.0
German 10-Year Bunds 3.3 4.8 13.7 -2.3 4.3 6.3
ML Global Corporate Bonds 3.9 12.3 5.1 4.7 1.7 4.8
ML Global High Yield 3.0 24.6 3.7 13.6 9.3 6.4
JPM Emerging Markets Bond Index 4.6 21.0 5.4 12.9 -3.1 8.2
Commodities
CRB Commodities Index -3.9 12.0 17.2 -5.3 -8.0 -3.4
Crude Oil (Brent) -3.7 5.7 35.2 6.1 1.1 -2.7
Gold Spot 1.5 30.8 40.3 -5.8 -24.7 -8.0
COMEX Copper 8.7 22.4 10.2 - 6.8 -15.8 -3.4
GSCI Soft Commodities -5.8 4.0 16.5 3.4 -4.5 -8.2
Wheat -28.8 145.0 -3.6 37.6 -30.6 -36.0
Market data (continued)
Please be aware that past performance is not a guide to what might happen in the future. When investing in overseas
markets, changes in currency exchange rates may aect the value of your investment. Investments in small and emerging
markets can be more volatile than those in other overseas markets.
Source: DataStream, discrete performance from 16.9.09 to 16.9.14 in terms. Valuations: Source Citigroup Global Equity Strategist Citi Research,
MSCI, Worldscope, Factset Consensus estimates as at 16.9.14. Bond Yields: Source DataStream as at 16.9.14.
16
STANDARDISED PERFORMANCE DATA (%) OVER THE PAST FIVE YEARS
% (as at 31st Aug) 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Morningstar
Fund Rating
MIX OF ASSET CLASSES
Balanced
Architas MA Active Intermediate Inc A Inc 10.1 3.7 7.8 12.2 7.8 JJJJ
F&C MM Navigator Distribution C Acc - - - 12.2 8.7
Henderson Cautious Managed Fund I Acc 7.6 3.5 9.7 15.3 7.7 JJJJJ
Investec Cautious Managed I Acc Net GBP 6.5 10.1 5.4 13.2 2.1 JJJ
Defensive
AXA Defensive Distribution Z Inc 7.2 4.7 7.2 5.5 5.6 JJJ
Jupiter Distribution Fund I Class Acc - - - 8.5 7.2
Prudential Managed Defensive Acc P - - - - -
Flexible
CF Miton Strategic Portfolio B Acc 7.5 4.1 1.3 4.2 -1.6 J
Invesco Perpetual Managed Growth Fund Y Acc - - - - -
Investec Managed Growth I Acc Net GBP 15.4 12.8 1.6 25.7 10.8 JJJJJ
Jupiter Merlin Growth Portfolio I Class Acc 14.7 8.1
Growth
Aberdeen Multi-Asset Fund I-Acc 10.0 10.3 9.7 11.8 6.9 JJJJ
AXA Framlington Managed Balanced Z Acc 9.7 8.5 9.8 16.5 8.5 JJJJJ
Investec Diversied Growth I Inc Net GBP 12.3 9.9 6.6 12.0 7.7 JJJ
Jupiter Merlin Balanced Portfolio I Class Acc - - - 13.1 7.0
Income
Aberdeen Managed Distribution Fund I-Acc - - - - 6.7
Aviva Investors Distribution Fund SC 2 Inc 13.7 5.1 12.6 11.5 8.2 JJJJJ
Fidelity PathFinder Income 1 14.1 2.1 9.9 5.7 9.1 JJJJJ
Premier Multi-Asset Monthly Income Fund C Net Income Shares 10.3 3.8 11.5 18.2 10.9 JJJJJ
EQUITIES FUNDS
Asia Pacic excl Japan
Fidelity South East Asia Fund W-Accumulation (UK) 23.9 8.5 -3.3 8.8 10.6 JJJJ
First State Asia Pacic Leaders B Acc 21.1 12.2 7.4 8.5 16.1 JJJJJ
M&G Asian Fund I Acc 19.9 5.6 -0.8 15.3 16.5 JJJJ
Newton Asian Income Fund Inc - - - 9.8 9.1
Schroder Asian Alpha Plus Fund Z Acc - - 10.5 7.9 12.0 JJJJJ
Aberdeen Asia Pacic and Japan Fund I-Acc - - - - 8.0
Fidelity Funds Pacic Fund Y-ACC-USD 22.0 10.1 -3.7 25.9 20.3 JJJJJ
Fidelity Index Pacic ex Japan Fund P-Accumulation - - - - -
Smith & Williamson Far Eastern Income and Growth Trust B - - -1.2 16.8 10.5 JJJJJ
Emerging Markets Global Equity
Fidelity Emerging Markets W-Accumulation (UK) - 4.8 -0.2 9.4 11.9 JJJJJ
Fidelity Index Emerging Markets P Acc - - - - -
JP Morgan Emerging Markets Fund B Net Acc 21.3 2.3 -1.1 1.7 10.2 JJJJ
Lazard Emerging Markets Institutional Acc 25.3 1.7 1.8 2.8 15.0 JJJJ
Threadneedle Gbl Emerg Mkts Eq RDR Z Acc 25.6 -0.1 -2.2 7.3 13.3 JJJJ
Emerging Markets Regional Equity
Fidelity Funds Greater China Fund Y-ACC-USD 23.0 2.3 -3.4 21.1 12.9 JJJJJ
Fidelity Funds Latin America Fund Y-ACC-USD 37.0 2.4 -6.2 -6.7 11.4 JJJJ
Franklin India Fund W (acc) GBP 38.1 -5.8 -12.7 -11.4 58.8 JJJJ
Threadneedle Latin America RDR Z Acc 31.2 -0.6 -5.3 -9.2 12.5 JJJ
Fund data
THE SELECT LIST INVESTMENT IDEAS FROM OUR EXPERTS
The funds on The Select List are hand picked from the range available on our fund supermarket. For more information on how
these funds are selected visit delity.co.uk/select. The Select List is not a recommendation to buy funds. Equally, if a fund you own
already is not on The Select List we are not recommending that you sell it the list represents funds and managers that our experts
particularlyrate. Please be aware that past performance is not a guide to what might happen in the future. The value of
investments and the income from them can go down as well as up and investors may not get back the amount invested. For funds
that invest in overseas markets, the returns may increase or decrease as a result of currency uctuations. Investments in small
and emerging markets can be more volatile than other more developed markets. For funds launched less than ve years ago full
ve-year performance gures are not available. Before you invest, please ensure you have read Doing Business with Fidelity and
the Key Investor Information Document (KIID) or Fund Specic Information Document (FSI), relevant to your chosen fund(s). These
documents give you all the information you need to know about Fidelity, including details of the objective, investment policy, risks,
charges and past performance associated with the fund(s). Instructions on how to access these documents can be found at delity.
co.uk/ importantinformation. If you do not have a computer or access to the internet please call Fidelity on 0800 41 41 61 to request
a printed copy of the documents. The Full Prospectus is also available on request from Fidelity.
Please note, the performance gures shown here are based on clean share classes. Formore information about clean pricing,
please visit delity.co.uk/pricing.
17
% (as at 31st Aug) 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Morningstar
Fund Rating
Europe excl UK
BlackRock Continental European Fund Class D Acc 4.3 6.6 7.4 29.7 4.2 JJJJJ
Fidelity Index Europe ex UK Fund P-Accumulation - - - - -
Henderson European Special Sits I Acc - 11.8 6.1 32.7 4.7 JJJ
Invesco Perpetual European Equity Income Y Acc - - - - -
Jupiter European Special Situations Fund I Class Acc - - - 31.2 4.7
Threadneedle European Select RDR Z Acc 11.1 15.8 11.3 25.7 4.5 JJJJJ
Global Equity
BNY Mellon Long Term Global Equity Inc - - - 17.6 7.3
Fidelity Index World Fund P-Acc - - - - 12.3
M&G Global Growth Fund I Acc 6.7 6.0 6.3 22.3 2.8 JJJJ
Rathbone Global Opportunities Inst Acc 20.7 10.3
Templeton Growth Fund W (acc) GBP 1.1 2.1 6.2 33.2 12.6 JJJ
Global Equity Income
Aberdeen World Growth and Income Fund I-Inc 8.5 10.7 9.9 7.3 6.5 JJ
Lazard Global Equity Income Retail C Acc - - - - 14.5
Newton Global Higher Income Fund Inc - - - - 8.3
Sarasin International Equity Income P Acc 9.9 4.7 10.9 16.4 9.6 JJJ
Global Ethical
Ecclesiastical Amity International B Inc 17.2 3.0 2.1 17.4 11.9 JJJJ
F&C Stewardship International Fund Share Class 2 Acc 8.2 6.0 10.3 21.2 8.0 JJJJ
Global Real Assets
Fidelity Funds Global Real Asset Securities Fund Y-ACC-GBP - - 6.1 9.8 8.1 JJ
First State Global Listed Infrastructure Securities B Acc 12.1 9.8 10.4 13.2 16.6 JJJJJ
Sarasin AgriSar PP Acc 16.1 2.7 2.8 6.8 6.7 JJJJ
Japan
Aberdeen Japan Growth Fund I-Acc 5.1 11.6 6.3 20.1 5.5 JJJJJ
Baillie Giord Japanese Fund B Acc 0.4 11.0 2.1 37.4 5.1 JJJJJ
Fidelity Index Japan Fund P-Accumulation - - - - -
Jupiter Japan Income Fund I Class Acc - - - - 0.6
Old Mutual Japanese Equity Fund R Acc -1.0 12.0 1.2 30.8 4.4 JJJJJ
Schroder Tokyo Fund Z Acc 2.1 24.3 4.9 JJJJJ
North America
Fidelity Funds America Fund Y-ACC-USD 7.1 10.8 20.1 26.2 19.2 JJJJ
Fidelity Index US Fund P-Acc - - - - 15.7
JP Morgan US Select Fund C Net Acc 8.6 8.3 20.2 24.5 17.2 JJJJ
Old Mutual North American Equity R Acc 7.5 20.6 15.0 30.9 18.9 JJJJJ
Smith & Williamson North American Trust B - - 13.1 22.7 10.6 JJJ
North America Small/Mid Cap
BlackRock US Opportunities Fund Class D Acc 14.0 7.5 7.9 28.8 16.5 JJJJ
JP Morgan US Smaller Companies Fund C Net Acc - - - - -0.9
Single Country Europe
Baring German Growth Trust Class I GBP Acc - - - - 7.9
Fidelity Funds Germany Fund Y-ACC-Euro 7.6 7.7 6.0 36.7 5.2 JJJJJ
Fidelity Funds Italy Fund Y-ACC-Euro -9.8 -6.8 0.3 31.4 17.5 JJJJJ
UK Equity
AXA Framlington UK Select Opps Z Acc 16.8 13.6 15.2 21.0 11.6 JJJJ
CF Lindsell Train UK Equity Fund Inc 25.4 13.8 18.5 33.1 10.2 JJJJJ
Fidelity Index UK Fund P-Acc 8.2 6.6 11.6 18.4 9.2 JJJ
Fidelity UK Select Fund W-Accumulation 9.7 9.4 10.8 19.6 9.4 JJJJ
HSBC FTSE 100 Index Fund Acc C 8.0 6.2 12.0 16.2 9.7 JJJ
Jupiter UK Special Situations Fund I Class Inc - - - 24.9 11.9
Liontrust UK Growth Inc Fund I Income - - 18.5 15.1 9.2 JJJ
UK Equity Income
Artemis Income Fund Class I Acc 10.7 5.7 17.0 21.9 10.0 JJJJ
Fidelity MoneyBuilder Dividend Y-Income 11.9 10.2 16.7 18.4 11.5 JJJJ
Henderson UK Equity Income I Inc 12.7 18.0 16.0 33.9 14.8 JJJJJ
JOHCM UK Equity Income Fund Y Acc - - - - 13.1
Liontrust Macro Equity Income I Acc - - - - 15.2
UK Ethical
Ecclesiastical Amity UK B Inc 12.7 11.0 15.8 24.6 8.2 JJJJ
Kames Ethical Equity B Acc 11.2 8.0 15.2 29.3 11.4 JJJJJ
UK Small/Mid Cap Equity
HSBC FTSE 250 Index Fund Acc C 12.5 9.0 12.7 31.6 10.5 JJJ
Marlborough Special Situations Fd Acc - - - - 19.4
Old Mutual UK Smaller Companies Fund R Acc 11.8 12.0 17.3 37.1 10.4 JJJJ
Royal London UK Mid Cap Growth Fund M Acc - 13.8 19.3 34.8 13.4 JJJJ
Threadneedle UK Mid 250 Fund RDR Z Acc 5.6 12.9 16.5 30.8 11.0 JJJ
STANDARDISED PERFORMANCE DATA (%) OVER THE PAST FIVE YEARS

Please note, the performance gures shown here are based on clean share classes. Formore information about clean pricing,
please visit delity.co.uk/pricing.
18
% (as at 31st Aug) 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Morningstar
Fund Rating
FIXED INCOME FUNDS
Emerging Markets Local Currency
Investec Emerging Markets Local Currency Debt I Acc Net GBP 21.1 4.6 0.5 -5.0 -0.4 JJJ
Pictet Emerging Local Curr Debt I dy GBP - 5.0 0.2 -5.4 -1.7 JJJ
Templeton Em Markets Bond W - - - 1.5 8.0
European Corporate Bond
Fidelity Funds Euro Corporate Bond Fund Y-ACC-Euro 9.0 6.0 -0.7 12.4 2.4 JJJJ
M&G European Corporate Bond Fund I Acc 2.9 6.4 -1.2 12.8 0.7 JJJJ
European High Yield
Fidelity Funds European High Yield Fund Y-ACC-Euro 17.0 9.6 -0.3 21.8 3.9 JJJJJ
Invesco Perpetual High Yield Y Acc - - - - -
M&G European High Yield Bond I Acc - - - 19.4 2.2
Global Aggregate Bond
M&G Global Macro Bond Fund I Acc 12.6 3.6 6.0 6.2 -2.0 JJJJJ
Newton Global Dynamic Bond Fund Inc - - - - 4.1
Threadneedle Global Bond Fund RDR Z Inc 8.0 -0.1 2.6 -4.0 -0.5 JJJ
Global High Yield
Baring High Yield Bond Fund Class I GBP Hedged Inc 17.3 3.1 11.5 6.4 7.6 JJJ
Investec Monthly High Income I Acc Net GBP 15.7 0.4 10.2 6.1 6.6 J
JP Morgan Global High Yield Bond Fund C Net Acc - - - - 8.4
Global Ination Linked
Fidelity Funds Global Ination-linked Bond Fund Y-GBP (hedged) 9.3 3.2 4.5 -2.9 2.6 J
Standard Life Global Indexed Lkd Bond P1 Fund Acc - - - -3.8 6.7
Strategic Bond
Henderson Preference & Bond I Inc 21.2 0.4 11.5 5.9 10.6 JJJJJ
Jupiter Strategic Bond I Class Acc - - - 8.3 8.3
M&G Optimal Income Fund I Acc 13.4 3.5 12.8 8.1 8.5 JJJJJ
UK Aggregate
Fidelity Strategic Bond Fund Y-Income-Gross

14.7 1.8 10.9 3.9 9.5 JJJ

Henderson Sterling Bond Fund I Acc 25.9 3.7 11.3 3.4 8.9 JJJ
UK Corporate
Baillie Giord Corporate Bond Fund B Acc 23.0 9.1 12.2 6.0 12.0 JJJJJ
BlackRock Corporate Bond Tracker Fund Class D Acc - - 11.5 2.7 8.1 JJJ
Henderson Strategic Bond I Inc 16.0 0.4 11.6 5.9 10.2 JJJJJ
M&G Strategic Corporate Bond Fund I Acc 14.1 2.3 12.3 3.0 9.2 JJJJ
UK Government Bond
Allianz Gilt Yield Fund C Inc 8.3 3.3 11.5 -4.8 5.4 JJJJ
Henderson Institutional UK Gilt I Inc 7.1 3.6 11.9 -4.9 4.8 JJJJ
HSBC UK Gilt Index Fund Acc C - 3.1 10.8 -5.0 6.0 JJJ
Royal London UK Government Bond Fund M Inc - - - -4.5 5.4
UK Ination Linked
Henderson Index-Linked Bond I Inc 9.1 10.6 12.8 2.2 9.3 JJJJ
Legal&General AS Indx Link Glt Inx M Acc 9.7 8.6 10.4 2.0 9.4 JJJJ
M&G Index-Linked Bond Fund I Acc - - - 1.8 9.4
PROPERTY FUNDS
Property Listed
Aberdeen Property Share Fund I-Acc - - - - 15.8
Fidelity Global Property Fund W-Accumulation (UK) 20.0 6.8 15.4 7.0 12.8 JJJJJ
M&G Global Real Estate Securities Fund I Acc 22.6 8.8 14.9 3.0 11.2 JJJJ
Property Physical
HSBC Open Global Property Acc C 13.7 3.5 6.2 8.2 12.0 JJJ
Ignis UK Property Fund - - - 3.6 -
COMMODITIES FUNDS
Commodities General
First State Global Resources B Acc 25.6 17.7 -23.0 -6.9 8.5 JJJJ
Martin Currie Global Resources B GBP - - - - 5.5
Commodities Precious Metals
BlackRock Gold & General Fund Class D Inc 38.5 20.8 -26.0 -28.0 -8.5 JJJJ
Investec Global Gold Fund 44.3 18.7 -24.3 -27.7 -9.0 JJJJ
STANDARDISED PERFORMANCE DATA (%) OVER THE PAST FIVE YEARS

The investment policy of Fidelity Strategic Bond Fund means it can be more than 35% invested in government and public securities. These can be issued or guaranteed by other
countries and governments. For a full list please refer to the funds prospectus.
Source: Morningstar from 31.8.09 to 31.8.14. Basis: bid to bid with income reinvested net of UK basic-rate tax. Excludes initial charge. For the latest yields please call
0800414161 or visit delity.co.uk. Copyright 2014 Morningstar, Inc. All Rights Reserved.
Please note, the performance gures shown here are based on clean share classes. Formore information about clean pricing,
please visit delity.co.uk/pricing.
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Fidelity Worldwide Investment logo and F symbol are trademarks of FIL
Limited. UKD1409/33402/PSSO599/0315
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Source: Fidelity as at 30.6.14
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