Fidelity Canadian Growth Company Fund

Transcription

1 Fidelity Canadian Growth Company Fund Semi-Annual Management Report of Fund Performance

2 Caution Regarding Forward-looking Statements Certain portions of this report, including, but not limited to, Results of Operations and Recent Developments, may contain forward-looking statements about the Fund, including its strategy, risks, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as expects, anticipates, intends, plans, believes, estimates and similar forward-looking expressions or negative versions thereof. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. It should be stressed that the above-mentioned list of important factors is not exhaustive. You are encouraged to consider these and other factors carefully before making any investment decisions and you are urged to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance.

3 Semi-Annual Management Report of Fund Performance as at Fidelity Canadian Growth Company Fund This semi-annual management report of fund performance contains financial highlights but does not contain the complete semi-annual financial statements for the investment fund. You can get a copy of the semi-annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our website at or SEDAR at Security holders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund. Management Discussion of Fund Performance Results of Operations Fidelity Canadian Growth Company Fund (Fund), Series B, returned 7.8%, after fees and expenses, for the six-month period ended December 31,. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. Canadian equities, as represented by the S&P/TSX Composite Index, returned 1.2% for the review period. Market Overview: Canadian equities rallied largely on the strength of banking and oil and gas stocks. Higher global oil prices helped to stabilize the energy sector as a supply-demand adjustment continued in the commodity markets. Canadian markets were further supported by a rise in oil prices following the agreement of the Organization of Petroleum Exporting Countries (OPEC) to reduce crude output. Base metal commodity prices rebounded amid improving market sentiment and signs of economic stabilization in China. Canadian markets were also boosted by a surge in financial stocks. Canadian bank share prices rose largely on the basis of continued positive investor sentiment, including a spillover effect from strength in U.S. financial stocks, which rallied after the recent U.S. presidential election. Canadian insurance stocks gained following the December interest rate hike in the U.S. Factors affecting performance: The Fund s benchmark returned 1.8% for the six-month period under review. The Fund s benchmark is a combination of the S&P/TSX Capped Composite Index (7%) and the S&P 5 Index (3%). The Fund s underperformance of its benchmark was primarily attributable to the Fund s investments in certain stocks of the materials sector such as gold producers Detour Gold, Tahoe Resources and Agnico Eagle Mines. In addition, the Fund s lower-than-benchmark exposure to certain stocks in the energy sector, such as oil and gas exploration firm Suncor Energy, and having no exposure to oil and gas exploration firm Encana, hurt performance. The share prices of these energy companies increased in the second half of the review period. Among investments in other sectors, the Fund s investments in U.S.-based biopharmaceutical company Bristol-Myers Squibb detracted from relative performance. At the end of the review period, the Fund had no exposure to Bristol-Myers Squibb. In contrast, the Fund s investments in certain stocks of the information technology sector contributed to relative performance. In the information technology sector, the Fund s investments in U.S.-based semiconductor companies such as Advanced Micro Devices and NVIDIA contributed to relative performance. Among investments in other sectors, the Fund s holdings in U.S.-based investment banking and brokerage firm Goldman Sachs, and U.S.-based Bank of the Ozarks and Bank of America, contributed to relative performance. Portfolio changes: During the review period, exposure to the financials and information technology sectors increased. In the financials sector, the Fund initiated positions in U.S.-based Bank of America and JPMorgan Chase, and in U.S.-based investment banking and brokerage firms Goldman Sachs Group and Morgan Stanley. Portfolio manager Mark Schmehl views these companies as potentially benefiting from any changes to financial sector regulations in the U.S. following the recent U.S. presidential election. If interest rates begin to rise, it may benefit banks and other financial institutions such as the Fund s positions in Canadian life insurance companies Manulife Financial and Sun Life Financial, which were added to the portfolio during the period. In the information technology sector, the portfolio manager Mark Schmehl initiated positions in a number of companies with exposure to the machine intelligence space, where new integrations are creating interesting growth opportunities. Top holdings in this sector include U.S.-based chip-makers Advanced Micro Devices, NVIDIA and Micron Technology. In addition, the portfolio manager initiated an investment in software and services firm Open Text. Among other sectors, a position was initiated in Canadian National Railway as a way to gain exposure to Canadian companies that could benefit from improvements in general economic activity. In contrast, exposure to the materials sector declined. The portfolio manager sold the Fund s positions in a number of gold and silver stocks due to a less certain gold and silver price environment. Exposure to the energy sector declined as the Fund reduced its investments in a number of companies. The portfolio manager sought to realize gains after their share prices had risen. The portfolio manager s view on the sector also shifted to a more neutral stance, as he believed oil prices are expected to remain range-bound in the near term. In the consumer discretionary 1

4 Fidelity Canadian Growth Company Fund Management Discussion of Fund Performance continued sector, the portfolio manager closed positions in select retailing and consumer services companies he viewed as having less favourable upside potential. He also reduced the Fund s exposure to the health care sector with more attractive opportunities being found elsewhere. Recent Developments Portfolio manager Mark Schmehl s investment approach remains focused on identifying positive changes in company fundamentals, and looking to add value by focusing on uncovering investment opportunities where business conditions are or could be improving. In the U.S., he has recently been placing more focus on information technology stocks he believes could benefit from growing trends towards artificial intelligence applications. He also placed more emphasis on U.S. financial stocks that could benefit from potentially less regulation following the recent U.S. election results. Mr. Schmehl is generally optimistic that the recent positive market sentiment toward the U.S. could continue if policies to lower taxes and introduce fiscal stimulus are implemented and result in economic growth. Investments in the materials sector accounted for the Fund s largest exposure in Canada. This was mainly a result of investments in gold companies, which could benefit if gold prices remain stable or head higher, and paper and forestry companies, which are well positioned to benefit from an increase in demand for their products. The portfolio manager has also identified pockets of the Canadian market that he believes offer reasonable prospects for growth, including select information technology and consumer discretionary companies. As at, the Fund had its largest absolute exposure to the information technology sector, followed by the financials sector. The Fund deviated the most from benchmark sector weightings by having more exposure to the information technology sector and less exposure to the energy sector. In terms of country exposure, allocations to Canada and the U.S. accounted for more than 95.% of the Fund s assets. 2

5 Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader group of companies collectively known as Fidelity Investments. Fidelity provides or arranges for the provision of all general management and administrative services required by the Fund in its day to day operations, bookkeeping, record keeping and other administrative services for the Fund. Fidelity is the portfolio adviser to the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity (Canada) Asset Management ULC, to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $13,682, for the period ended. Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges). The Fund pays an annual rate, which is calculated on a tiered basis, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $1,397, for the period ended. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Investments, including National Financial Services LLC, provided it determines that these affiliates trade execution abilities and costs are comparable to those of non affiliated, qualified brokerage firms, on an execution only basis. Commissions paid to brokerage firms that are affiliates of Fidelity Investments were $33, for the period ended. Fidelity receives standing instructions from the IRC in respect of policies and procedures governing best execution of transactions with affiliates, which includes brokers affiliated to Fidelity Investments, at least once per year. 3

6 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the period end of the years shown. This information is derived from the Fund s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund s annual or semi-annual financial statements. Fidelity Canadian Growth Company Fund Series A Six-months ended Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.7394) (1.424) (1.363) (1.1245) (.813) (.725) Realized gains (losses) (1.483) Unrealized gains (losses) (1.778) Total increase (decrease) from operations B (1.1447) From net investment income (excluding dividends) From dividends (.31) From capital gains (2.1969) (2.7951) (7.267) (.4673) Return of capital Total distributions B,C (2.2) (2.7951) (7.267) (.4673) Net assets, end of period B $ $ $ $ $ $ Net asset value (s) D $ 228,2 $ 187,317 $ 154,546 $ 121,375 $ 71,655 $ 65,681 Securities outstanding D 4,538,749 3,831,393 3,86,939 2,58,965 1,97,312 2,244,3 Management expense ratio E,F 2.45% 2.47% 2.49% 2.52% 2.52% 2.51% Management expense ratio before waivers or absorptions E,F 2.51% 2.53% 2.52% 2.52% 2.52% 2.51% Trading expense ratio G.39%.42%.23%.36%.44%.6% Portfolio turnover rate H % % 211.2% 23.15% % 26.81% Net asset value per security, end of period $ $ $ $ $ $

7 Fidelity Canadian Growth Company Fund Series B Six-months ended Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.6987) (1.3227) (1.2743) (1.29) (.7455) (.6621) Realized gains (losses) (1.1465) Unrealized gains (losses) (2.191) Total increase (decrease) from operations B (.9644) From net investment income (excluding dividends) From dividends (.33) From capital gains (2.3311) (2.938) (7.2198) (.5733) Return of capital Total distributions B,C (2.3344) (2.938) (7.2198) (.5733) Net assets, end of period B $ $ $ $ $ $ Net asset value (s) D $ 1,85,684 $ 1,39,182 $ 1,92,23 $ 959,337 $ 752,974 $ 656,46 Securities outstanding D 21,296,576 21,7,337 21,539,415 19,562,865 19,793,861 22,2,981 Management expense ratio E,I 2.25% 2.27% 2.28% 2.29% 2.3% 2.29% Management expense ratio before waivers or absorptions E,I 2.29% 2.3% 2.29% 2.29% 2.3% 2.29% Trading expense ratio G.39%.42%.23%.36%.44%.6% Portfolio turnover rate H % % 211.2% 23.15% % 26.81% Net asset value per security, end of period $ $ $ $ $ $

8 Financial Highlights continued Fidelity Canadian Growth Company Fund Series F Six-months ended Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.438) (.836) (.789) (.5873) (.4224) (.3647) Realized gains (losses) (1.3276) Unrealized gains (losses) (.7578) (1.2848) Total increase (decrease) from operations B (.87) From net investment income (excluding dividends) From dividends (.46) From capital gains (3.2672) (3.968) (8.733) (1.1999) Return of capital Total distributions B,C (3.2718) (3.968) (8.733) (1.1999) Net assets, end of period B $ $ $ $ $ $ Net asset value (s) D $ 155,999 $ 19,644 $ 48,486 $ 26,788 $ 9,89 $ 4,498 Securities outstanding D 2,781,394 2,8, , , ,76 138,517 Management expense ratio E,F 1.11% 1.13% 1.13% 1.16% 1.16% 1.15% Management expense ratio before waivers or absorptions E,F 1.14% 1.15% 1.16% 1.16% 1.16% 1.15% Trading expense ratio G.39%.42%.23%.36%.44%.6% Portfolio turnover rate H % % 211.2% 23.15% % 26.81% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Canadian Growth Company Fund Series F5 Six-months ended J Net assets, beginning of period B $ 2. Total revenue.452 Total expenses (excluding distributions) (.681) Realized gains (losses).955 Unrealized gains (losses).9299 Total increase (decrease) from operations B 1.25 From net investment income (excluding dividends) From dividends (.16) From capital gains (1.1397) Return of capital (.3285) Total distributions B,C (1.4698) Net assets, end of period B $ Net asset value (s) D $ 278 Securities outstanding D 14,334 Management expense ratio E,K 1.11% Management expense ratio before waivers or absorptions E,K 1.13% Trading expense ratio G.39% Portfolio turnover rate H % Net asset value per security, end of period $

9 Fidelity Canadian Growth Company Fund Series F8 Six-months ended J Net assets, beginning of period B $ 2. Total revenue.784 Total expenses (excluding distributions) (.392) Realized gains (losses).588 Unrealized gains (losses).8236 Total increase (decrease) from operations B.9216 From net investment income (excluding dividends) From dividends (.17) From capital gains (1.1891) Return of capital (.5253) Total distributions B,C (1.7161) Net assets, end of period B $ Net asset value (s) D $ 1 Securities outstanding D 55 Management expense ratio E,K.81% Management expense ratio before waivers or absorptions E,K.81% Trading expense ratio G.39% Portfolio turnover rate H % Net asset value per security, end of period $ Fidelity Canadian Growth Company Fund Series O Six-months ended Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.1363) (.2823) (.1825) (.4) Realized gains (losses) (1.632) Unrealized gains (losses) (1.3625) (1.2489) Total increase (decrease) from operations B (.7492) From net investment income (excluding dividends) From dividends (.6) From capital gains (4.3277) (4.9893) (1.2943) (1.9557) Return of capital Total distributions B,C (4.3337) (4.9893) (1.2943) (1.9557) Net assets, end of period B $ $ $ $ $ $ Net asset value (s) D $ 56,594 $ 254,936 $ 167,429 $ 96,729 $ 43,29 $ 34,797 Securities outstanding D 9,169,479 4,24,379 2,71,138 1,613, ,31 985,56 Management expense ratio L % % % % % % Management expense ratio before waivers or absorptions L % % % % % % Trading expense ratio G.39%.42%.23%.36%.44%.6% Portfolio turnover rate H % % 211.2% 23.15% % 26.81% Net asset value per security, end of period $ $ $ $ $ $

10 Financial Highlights continued Fidelity Canadian Growth Company Fund Series E1 Six-months ended Periods ended June 3, M Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.1495) (.1172) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.8) From capital gains (.5251) Return of capital Total distributions B,C (.5259) Net assets, end of period B $ $ Net asset value (s) D $ 129,474 $ 68,315 Securities outstanding D 11,45,53 6,197,599 Management expense ratio E,N 2.2% 2.22% Management expense ratio before waivers or absorptions E,N 2.24% 2.25% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series E2 Six-months ended Periods ended June 3, M Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.1458) (.118) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.8) From capital gains (.5369) Return of capital Total distributions B,C (.5377) Net assets, end of period B $ $ Net asset value (s) D $ 22,117 $ 11,844 Securities outstanding D 1,978,121 1,83,259 Management expense ratio E,N 2.11% 2.12% Management expense ratio before waivers or absorptions E,N 2.14% 2.15% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $

11 Fidelity Canadian Growth Company Fund Series E3 Six-months ended Periods ended June 3, M Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.139) (.19) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.8) From capital gains (.5496) Return of capital Total distributions B,C (.554) Net assets, end of period B $ $ Net asset value (s) D $ 6,25 $ 4,556 Securities outstanding D 547, ,38 Management expense ratio E,N 2.% 2.2% Management expense ratio before waivers or absorptions E,N 2.3% 2.5% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series E4 Six-months ended Periods ended June 3, M Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.132) (.127) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.8) From capital gains (.5579) Return of capital Total distributions B,C (.5587) Net assets, end of period B $ $ Net asset value (s) D $ 4,66 $ 1,632 Securities outstanding D 41, , Management expense ratio E,N 1.93% 1.96% Management expense ratio before waivers or absorptions E,N 1.96% 1.99% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Canadian Growth Company Fund Series E5 Six-months ended Periods ended June 3, M Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.1114) (.115) Realized gains (losses) (.133).5285 Unrealized gains (losses) (1.4652).5711 Total increase (decrease) from operations B (1.6376) From net investment income (excluding dividends) From dividends (.8) From capital gains (.5488) Return of capital Total distributions B,C (.5496) Net assets, end of period B $ $ Net asset value (s) D $ 49 $ 34 Securities outstanding D 36,16 3,82 Management expense ratio E,N 2.1% 2.3% Management expense ratio before waivers or absorptions E,N 2.4% 2.7% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series P1 Six-months ended Periods ended June 3, O Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.734) (.85) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.9) From capital gains (.5936) (.714) Return of capital Total distributions B,C (.5945) (.714) Net assets, end of period B $ $ Net asset value (s) D $ 22,372 $ 8,37 Securities outstanding D 2,222,38 854,798 Management expense ratio E,P 1.5% 1.8% Management expense ratio before waivers or absorptions E,P 1.8% 1.9% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $

13 Fidelity Canadian Growth Company Fund Series P2 Six-months ended Periods ended June 3, O Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.692) (.835) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.9) From capital gains (.5976) (.714) Return of capital Total distributions B,C (.5985) (.714) Net assets, end of period B $ $ Net asset value (s) D $ 6,183 $ 1,61 Securities outstanding D 613,452 17,751 Management expense ratio E,P 1.1% 1.4% Management expense ratio before waivers or absorptions E,P 1.4% 1.5% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series P3 Six-months ended Periods ended June 3, O Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.591) (.752) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.9) From capital gains (.641) (.714) Return of capital Total distributions B,C (.65) (.714) Net assets, end of period B $ $ Net asset value (s) D $ 1,6 $ 119 Securities outstanding D 15,19 12,99 Management expense ratio E,P.96%.98% Management expense ratio before waivers or absorptions E,P.99%.99% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Canadian Growth Company Fund Series P4 Six-months ended Periods ended June 3, O Net assets, beginning of period B $ $ 1. Total revenue Total expenses (excluding distributions) (.518) (.44) Realized gains (losses).524 (.846) Unrealized gains (losses) (.533) Total increase (decrease) from operations B (.5934) From net investment income (excluding dividends) From dividends (.9) From capital gains (.6117) (.714) Return of capital Total distributions B,C (.6126) (.714) Net assets, end of period B $ $ Net asset value (s) D $ 43 $ 1 Securities outstanding D 4, Management expense ratio E,P.9%.9% Management expense ratio before waivers or absorptions E,P.93%.91% Trading expense ratio G.39%.42% Portfolio turnover rate H % % Net asset value per security, end of period $ $

15 Financial Highlights Footnotes A This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 213 follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 213 follow Canadian Generally Accepted Accounting Principles (Canadian GAAP). The net assets attributable to holders of redeemable securities per security presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. An explanation of these differences can be found in the notes to financial statements. B Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of securities outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per security. C Distributions were paid in cash or reinvested in additional securities of the Fund, or both, and excludes any applicable distributions of management fee reduction to unitholders. Distributions are presented based on management s best estimate of the tax character. D This information is provided as at period end of the year shown. E Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset values during the period, including the Fund s pro-rata share of estimated expenses incurred in any underlying investment fund, if applicable. F Effective November 1, 214, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. G The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period, including the Fund s pro-rata share of estimated trading costs incurred in any underlying investment fund, if applicable. H The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its portfolio investments. A portfolio turnover rate of 1% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher the Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high portfolio turnover rate and the performance of the Fund. The portfolio turnover rate is calculated based on the lesser of purchases or sales of securities divided by the weighted average market value of the portfolio securities, excluding short-term securities. For periods greater than six months, but less than a full fiscal year, the portfolio turnover rate is annualized. I Effective October 1, 215, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. J For the period September 16, (commencement of sale of securities) to. K Effective September 2,, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. L No fees are charged to the Series, but investors may be charged a negotiated management fee. M For the period February 5, (commencement of sale of securities) to June 3,. N Effective February 9,, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. O For the period December 4, 215 (commencement of sale of securities) to June 3,. P Effective December 8, 215, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. 13

16 Management and Advisory Fees Fidelity serves as manager and investment advisor of the Fund. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for the general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed 1% of the fees earned by Fidelity during the period. For new Funds or Series the amounts presented may not be indicative of longer term operating periods. Management Fees Dealer Compensation Investment management, administration and other Series A 2.% 68.34% 31.66% Series B 1.85% 54.5% 45.95% Series F.85% 1.% Series F5.85% 1.% Series F8.85% 1.% Series E % 54.79% 45.21% Series E2 1.8% 55.56% 44.44% Series E % 56.34% 43.66% Series E % 57.97% 42.3% Series E5 1.7% 58.82% 41.18% Series P1.825% 1.% Series P2.8% 1.% Series P3.775% 1.% Series P4.725% 1.% 14

17 Fidelity Canadian Growth Company Fund Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. For each Series in the Year-by-Year Returns table below, the most recent returns stated are for the current six month period. Series A Series B Series F

18 Fidelity Canadian Growth Company Fund Past Performance continued Series F Commencement of Operations is September 16, Series F Commencement of Operations is September 16, Series O

19 Series E Commencement of Operations is February 5, Series E Commencement of Operations is February 5, Series E Commencement of Operations is February 5, 17

20 Fidelity Canadian Growth Company Fund Past Performance continued Series E Commencement of Operations is February 5, Series E Commencement of Operations is February 5, Series P Commencement of Operations is December 4,

21 Series P Commencement of Operations is December 4, 215 Series P Commencement of Operations is December 4, 215 Series P Commencement of Operations is December 4,

22 Fidelity Canadian Growth Company Fund Summary of Investment Portfolio as at Sector Mix as of % of Fund s Net Assets Information Technology 31.6 Financials 29.3 Materials 15.7 Industrials 8.8 Consumer Discretionary 6.6 Energy 4.2 Consumer Staples 2.6 Health Care 1.1 Cash and Cash Equivalents.9 Net Other Assets (Liabilities) (.8) Derivative Exposure as of % of Fund s Net Assets Forward Foreign Currency Contracts. Forward Foreign Currency Contracts percentage is calculated by dividing the net unrealized gain/loss of all contracts held by total net assets. Market Capitalization as of % of Fund s Net Assets Large 66.7 Mid 23.5 Small 7.3 Market Capitalization is a measure of the size of a company. It is calculated by multiplying the current share price by the number of outstanding common shares of the company. The Fund defines small cap as less than $2 billion, mid cap as between $2 billion and $1 billion, and large cap as over $1 billion in capitalization. Geographic Mix as of % of Fund s Net Assets Canada 51.7 United States of America 46.4 Japan 1.8 Others (Individually Less Than 1%). Cash and Cash Equivalents.9 Net Other Assets (Liabilities) (.8) Top 25 Issuers % of Fund s Net Assets 1. Advanced Micro Devices, Inc Bank of America Corp Canadian National Railway Co Manulife Financial Corp JPMorgan Chase & Co Agnico Eagle Mines Ltd Goldman Sachs Group, Inc Open Text Corp Morgan Stanley KeyCorp Detour Gold Corp NVIDIA Corp Micron Technology, Inc Tahoe Resources, Inc West Fraser Timber Co. Ltd Canadian Pacific Railway Ltd Norbord, Inc Dollarama, Inc Kinaxis, Inc Applied Materials, Inc Electronic Arts, Inc Alimentation Couche-Tard, Inc Sun Life Financial, Inc Xilinx Inc Potash Corp. of Saskatchewan, Inc Total Fund Net Assets $2,224,693, The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 2

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24 Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada Toronto, Ontario Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Visit us online at or call Fidelity Client Services at Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund or Fidelity U.S. Money Market Fund will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of FMR LLC E FICL-CGC-MRFPS-217