From the Desk of our PMs: Ukraine crisis and positioning in Russia

From the Desk of our PMs: Ukraine crisis and positioning in Russia

These Portfolio Comments are as at 1 March

With our focus on investing in companies with strong corporate governance, many Russian companies have not met our investment criteria for some time.  We held a very conservative positioning in this region at the beginning of this crisis, and we will not hesitate to take it to zero.  As at 25 February, 2.2% of the Fund was invested in Russia (vs the Index of 2.8%) and we have since decreased our exposure.

The Fund is a broad based, well diversified actively managed portfolio exposed to a range of different companies, sectors and countries spanning all regions.

The situation in Ukraine continues to evolve. The approach to sanctions on Russia is developing rapidly and is likely to become more restrictive in the future. Any investments or divestments of securities that involve Russia will be considered carefully and only made in compliance with sanctions requirements. As a matter of policy and in line with our clients’ and counterparties’ expectations, we will continue to implement the highest applicable level of sanctions for our clients, funds and investment vehicles.

This document is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”).  Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity International.

Prior to making an investment decision, retail investors should seek advice from their financial adviser. This document is intended as general information only. Please remember past performance is not a guide to the future. Investors should also obtain and consider the Product Disclosure Statements ("PDS") for the fund(s) mentioned in this document before making any decision about whether to acquire the product. The PDS is available on www.fidelity.com.au or can be obtained by contacting Fidelity Australia on 1800 119 270. The relevant Target Market Determination (TMD) is available via www.fidelity.com.au. This document has been prepared without taking into account your objectives, financial situation or needs. You should consider such matters before acting on the information contained in this document. This document may include general commentary on market activity, industry or sector trends or other broad-based economic or political conditions which should not be construed as investment advice. Information stated herein about specific securities is subject to change. Any reference to specific securities should not be construed as a recommendation to buy, sell or hold these securities. While the information contained in this document has been prepared with reasonable care, no responsibility or liability is accepted for any errors or omissions or misstatements however caused. The document may not be reproduced or transmitted without prior written permission of Fidelity Australia. The issuer of Fidelity's funds is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009. References to ($) are in Australian dollars unless stated otherwise. Details of Fidelity Australia’s provision of financial services to retail clients are set out in our Financial Services Guide, a copy of which can be downloaded from our website.

© 2022 FIL Responsible Entity (Australia) Limited. Fidelity, Fidelity International and the Fidelity International logo and F symbol are trademarks of FIL Limited.

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