Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Annual Management Report of Fund Performance November 3, 17

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 Annual Management Report of Fund Performance as at November 3, 17 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the 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 www. fidelity.ca or SEDAR at Securityholders 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 Investment Objective and Strategies Investment Objective: Fidelity Global Disciplined Equity Class (Fund) aims to achieve long-term capital growth and seeks a return similar to that of Fidelity Global Disciplined Equity Fund (Underlying Fund) by investing substantially all of its assets in units of the Underlying Fund. The Underlying Fund, which is also managed by Fidelity, aims to achieve long-term capital growth by investing primarily in equity securities of companies anywhere in the world. Strategies: The Underlying Fund aims to invest broadly in all sectors and regions that are represented in its benchmark, the MSCI ACWI (All Country World Index) Index, although not necessarily in the same proportions as those regions are represented in the Index. A team of portfolio managers chooses investments based on a thorough review of each company s management, financial condition and potential for earnings growth over the long term. The portfolio managers regularly review the target allocations and rebalance them when necessary. The Underlying Fund may invest in small, medium and large companies. Risk The risks associated with investing in this Fund are the same as for the Underlying Fund and remain as discussed in the simplified prospectus. Any changes in the Underlying Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for longterm investors who want to gain global equity exposure and can handle the volatility of returns generally associated with equity investments. Investors should be willing to accept a medium level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity Global Disciplined Equity Class Series B returned 16.5% after fees and expenses for the past one-year period ended November 3, 17. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. The Fund s benchmark, the MSCI ACWI (All Country World Index) Index, returned 19.4% in Canadian dollar terms for the same period. Market overview: Global equities registered positive returns amid signs of stabilization in China and Europe, and positive U.S. economic data. Emerging markets outperformed other global equity markets, with the MSCI Emerging Markets Index returning 27.7%. A positive global economic backdrop proved supportive. European markets trended higher, as the MSCI Europe Index gained 24.7%, underpinned by positive economic data and the victory of a centrist candidate in the French presidential election. Asian equities also gained during the review period. The MSCI AC (All Country) Asia-Pacific Index returned 23.2% after optimism about global economic growth and improved corporate earnings forecasts in the region boosted sentiment. U.S. markets also registered strong performance, with the S&P 5 Index returning 17.7%, driven by positive economic data and optimism surrounding the proposed policies of the new U.S. administration. Strong returns were partially offset by the Canadian dollar s appreciation against the U.S. dollar. Canadian markets lagged global markets as investor concerns over depressed oil prices, rising household debt, and risks of a correction in the housing market weighed on Canadian equities. Factors affecting performance: The Fund underperformed its benchmark, the MSCI ACWI (All Country World Index) Index, due to the Underlying Fund s investments in certain stocks in the energy and consumer staples sectors. In the energy sector, the Underlying Fund s investments in U.S.-based oil & gas exploration and production companies Hess and Pioneer Natural Resources detracted from relative performance. In the consumer staples sector, exposure to U.S.-based grocer Kroger, and U.S.-based alcoholic beverage company Molson Coors Brewing, detracted from relative performance. Among investments in other sectors, U.S.-based marketing company Newell Brands detracted from relative performance. At the end of the review period, the Underlying Fund had no exposure to Kroger. In contrast, the Underlying Fund s exposure to certain stocks in the information technology and financials sectors contributed to relative performance. In the information technology sector, the Underlying Fund s investments in U.S.-based semiconductor and semiconductor equipment companies Micron Technology and Broadcom contributed to relative performance. In the financials sector, the Underlying Fund s 1

4 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued larger-than-benchmark allocations to Switzerland-based investment management firm Partners Group, and Thailand-based banking company Kasikornbank, contributed to relative performance. Among other sectors, the Underlying Fund s investment in U.S.-based aviation company Boeing and lack of exposure to U.S.-based capital goods company General Electric both contributed to relative performance. At the end of the review period, the Underlying Fund had no exposure to Partners Group. Portfolio changes: During the review period, the portfolio manager kept sector weightings closely in line with the benchmark, with active management at the industry and security level driving incremental returns. The portfolio manager increased exposure to technology hardware and equipment companies by adding to a position in U.S.-based multinational company Apple, based on potentially strong fundamentals and growth prospects. U.S.-based manufacturing company Corning, and South Korea-based hardware manufacturing company Samsung Electronics, were also added due to their potentially strong fundamentals and growth prospects. In the media industry, the portfolio manager initiated positions in U.S.-based media conglomerate Disney, and U.K.- based advertising and public relations company WPP, as the portfolio manager believes they have attractive valuations. In contrast, the Underlying Fund s exposure to food and staples retailing companies was eliminated as the Underlying Fund sold off its holdings in U.S.-based pharmaceutical and health care company CVS Health, and Dutch grocer Koninklijke Ahold Delhaize, due to their deteriorating fundamentals. Exposure to automobiles and components companies also declined as the Underlying Fund exited its investment in U.K.-based auto parts manufacturer Delphi Automotive, and Japan-based auto, aviation and power equipment manufacturer Honda Motor Company, due to weaker growth prospects. Recent Developments Portfolio manager Chandler Willett believes there is a potential for an uptick in inflation, and policy uncertainties provide for a backdrop for increased market volatility. Mr. Willett also believes global economies are entering into a late-cycle environment and he is seeking to achieve a balance between cyclical and non-cyclical exposures in the portfolio. The Underlying Fund s sector weightings remain closely aligned with the eleven Global Industry Classification Standard (GICS) sectors of the MSCI ACWI (All Country World Index) Index, reflecting the portfolio manager s intention to add returns through stock selection, not through active sector allocation relative to the market. However, stock selection may drive higher or lower weightings, relative to the Index, at the sub-industry level. As at November 3, 17, the Underlying Fund diverged most from its benchmark s industry weightings by having more exposure to the technology hardware and equipment industry and to the media industry, and less exposure to the food and staples retailing industry and automobiles and components industry. The Underlying Fund diverged most from its benchmark s country weightings by having more exposure to the U.S. and less exposure to Japan. 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 and it provides investment advisory services to the Fund. Fidelity provides investment advice with respect to the Fund s investment portfolio and arranges for the 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 $25, for the period ended November 3, 17. 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 $36, for the period ended November 3, 17. 2

5 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 Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series A Periods ended November 3, Net assets, beginning of period B $ $ $ $ 12.8 $ 9.97 Total revenue Total expenses (excluding distributions) (.42) (.42) (.43) (.36) (.3) Realized gains (losses) Unrealized gains (losses) 1.85 (3.35) Total increase (decrease) from operations B 2.48 (.93) From net investment income (excluding dividends) From dividends From capital gains (1.77) (.) Return of capital Total distributions B,C (1.77) (.) Net assets, end of period B $ $ $ $ $ 12.8 Net asset value (s) D $ 1,368 $ 1,47 $ 2,351 $ 3,559 $ 4,375 Securities outstanding D 78,6 85,54 135, , ,891 Management expense ratio E,F,G 2.6% 2.59% 2.61% 2.67% 2.67% Management expense ratio before waivers or absorptions E,F,G 2.68% 2.66% 2.67% 2.68% 2.67% Trading expense ratio H.13%.16%.15%.26%.17% Portfolio turnover rate I 9.43% 15.91% 13.91% 9.27% 8.71% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series B Periods ended November 3, Net assets, beginning of period B $ $ $ $ 13.1 $.12 Total revenue Total expenses (excluding distributions) (.4) (.39) (.4) (.34) (.28) Realized gains (losses) Unrealized gains (losses) 1.91 (3.56) Total increase (decrease) from operations B 2.59 (.97) From net investment income (excluding dividends) From dividends From capital gains (1.85) (.15) Return of capital Total distributions B,C (1.85) (.15) Net assets, end of period B $ $ $ $ $ 13.1 Net asset value (s) D $ 7,634 $ 7,972 $ 12,55 $ 9,8 $ 8,57 Securities outstanding D 427, ,627 77, ,11 658,636 Management expense ratio E,F,G 2.38% 2.37% 2.39% 2.42% 2.43% Management expense ratio before waivers or absorptions E,F,G 2.45% 2.41% 2.42% 2.43% 2.43% Trading expense ratio H.13%.16%.15%.26%.17% Portfolio turnover rate I 9.43% 15.91% 13.91% 9.27% 8.71% Net asset value per security, end of period $ $ $ $ $

6 Financial Highlights continued Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series F Periods ended November 3, Net assets, beginning of period B $ $.4 $ 17.1 $ $ Total revenue Total expenses (excluding distributions) (.24) (.24) (.24) (.21) (.17) Realized gains (losses) Unrealized gains (losses) 2.15 (4.15) Total increase (decrease) from operations B 3.15 (1.6) From net investment income (excluding dividends) From dividends From capital gains (2.36) (.41) Return of capital Total distributions B,C (2.36) (.41) Net assets, end of period B $.5 $ $.4 $ 17.1 $ Net asset value (s) D $ 1,785 $ 1,848 $ 3,643 $ 2,217 $ 1,634 Securities outstanding D 87,69 93, ,788 13, ,58 Management expense ratio E,F,G 1.26% 1.24% 1.25% 1.34% 1.34% Management expense ratio before waivers or absorptions E,F,G 1.33% 1.31% 1.33% 1.35% 1.34% Trading expense ratio H.13%.16%.15%.26%.17% Portfolio turnover rate I 9.43% 15.91% 13.91% 9.27% 8.71% Net asset value per security, end of period $.546 $ $.441 $ $ Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series F5 Periods ended November 3, J Net assets, beginning of period B $.47 $. Total revenue.26 Total expenses (excluding distributions) (.28) (.4) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (2.45) Return of capital (1.) (.25) Total distributions B,C (3.45) (.25) Net assets, end of period B $. $.47 Net asset value (s) D $ 1 $ 1 Securities outstanding D 6 51 Management expense ratio E,F,K 1.42% 1.22% Management expense ratio before waivers or absorptions E,F,K 1.42% 1.22% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $.1969 $.473 4

7 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series F8 Periods ended November 3, J Net assets, beginning of period B $.32 $. Total revenue.1 Total expenses (excluding distributions) (.23) (.4) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (2.42) Return of capital (1.6) (.4) Total distributions B,C (4.2) (.4) Net assets, end of period B $ $.32 Net asset value (s) D $ 68 $ 1 Securities outstanding D 3, Management expense ratio E,F,K 1.25% 1.22% Management expense ratio before waivers or absorptions E,F,K 1.34% 1.22% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $ $.3213 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series T5 Periods ended November 3, Net assets, beginning of period B $ $ $ 17.4 $ $ Total revenue Total expenses (excluding distributions) (.46) (.48) (.51) (.45) (.39) Realized gains (losses) Unrealized gains (losses) 2.9 (3.22) Total increase (decrease) from operations B 2.7 (.62) From net investment income (excluding dividends) From dividends From capital gains (1.9) (.11) Return of capital (.87) (.87) (.86) (.66) (.66) Total distributions B,C (2.77) (.98) (.86) (.66) (.66) Net assets, end of period B $ $ $ $ 17.4 $ Net asset value (s) D $ 244 $ $ 233 $ 215 $ 99 Securities outstanding D 13,58 11,49 11,853 12,37 6,216 Management expense ratio E,F,G 2.66% 2.65% 2.67% 2.71% 2.71% Management expense ratio before waivers or absorptions E,F,G 2.74% 2.71% 2.73% 2.71% 2.71% Trading expense ratio H.13%.16%.15%.26%.17% Portfolio turnover rate I 9.43% 15.91% 13.91% 9.27% 8.71% Net asset value per security, end of period $ $ $ $ $

8 Financial Highlights continued Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series T8 Periods ended November 3, Net assets, beginning of period B $ 13.9 $ 15.6 $ $ $.95 Total revenue Total expenses (excluding distributions) (.32) (.35) (.38) (.35) (.31) Realized gains (losses) Unrealized gains (losses) 2.11 (2.52) Total increase (decrease) from operations B 2.75 (.5) From net investment income (excluding dividends) From dividends From capital gains (1.47) (.11) Return of capital (1.14) (1.14) (1.11) (.83) (.84) Total distributions B,C (2.61) (1.25) (1.11) (.83) (.84) Net assets, end of period B $ $ 13.9 $ 15.6 $ $ Net asset value (s) D $ 422 $ 112 $ 134 $ 76 $ Securities outstanding D 31,822 8,51 8,585 5,377 15,257 Management expense ratio E,F,G 2.52% 2.51% 2.48% 2.6% 2.63% Management expense ratio before waivers or absorptions E,F,G 2.6% 2.57% 2.53% 2.6% 2.63% Trading expense ratio H.13%.16%.15%.26%.17% Portfolio turnover rate I 9.43% 15.91% 13.91% 9.27% 8.71% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series S5 Periods ended November 3, Net assets, beginning of period B $ $.5 $ $ 16.1 $ 13.3 Total revenue Total expenses (excluding distributions) (.42) (.45) (.48) (.41) (.35) Realized gains (losses) Unrealized gains (losses) 2.76 (4.77) Total increase (decrease) from operations B 3.32 (1.73) From net investment income (excluding dividends) From dividends From capital gains (1.98) (.16) Return of capital (.89) (.89) (.87) (.66) (.66) Total distributions B,C (2.87) (1.4) (.87) (.66) (.66) Net assets, end of period B $ $ $.5 $ $ 16.1 Net asset value (s) D $ 91 $ 59 $ 165 $ 84 $ 97 Securities outstanding D 5,2 3,219 8,211 4,742 6,64 Management expense ratio E,F,G 2.45% 2.43% 2.44% 2.46% 2.46% Management expense ratio before waivers or absorptions E,F,G 2.53% 2.48% 2.47% 2.46% 2.46% Trading expense ratio H.13%.16%.15%.26%.17% Portfolio turnover rate I 9.43% 15.91% 13.91% 9.27% 8.71% Net asset value per security, end of period $ $ $.51 $ $

9 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series S8 Periods ended November 3, Net assets, beginning of period B $ 14.6 $ $ 14.3 $ $ 11.4 Total revenue Total expenses (excluding distributions) (.32) (.34) (.37) (.34) (.3) Realized gains (losses) Unrealized gains (losses) 1.45 (3.7) Total increase (decrease) from operations B 1.93 (.81) From net investment income (excluding dividends) From dividends From capital gains (1.51) (.13) Return of capital (1.15) (1.15) (1.12) (.84) (.85) Total distributions B,C (2.66) (1.27) (1.12) (.84) (.85) Net assets, end of period B $ $ 14.6 $ $ 14.3 $ Net asset value (s) D $ 397 $ 252 $ 384 $ 31 $ 4 Securities outstanding D 29,613 17,955 24,389 21,49 15,412 Management expense ratio E,F,G 2.44% 2.39% 2.41% 2.45% 2.47% Management expense ratio before waivers or absorptions E,F,G 2.51% 2.44% 2.44% 2.45% 2.47% Trading expense ratio H.13%.16%.15%.26%.17% Portfolio turnover rate I 9.43% 15.91% 13.91% 9.27% 8.71% Net asset value per security, end of period $ $ 14.6 $ $ $ Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series E1 Periods ended November 3, L Net assets, beginning of period B $.81 $. Total revenue.14 Total expenses (excluding distributions) (.24) (.19) Realized gains (losses).5.69 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (1.18) Return of capital Total distributions B,C (1.18) Net assets, end of period B $ $.81 Net asset value (s) D $ 2,378 $ 1,696 Securities outstanding D 211,53 156,917 Management expense ratio E,F,M 2.29% 2.3% Management expense ratio before waivers or absorptions E,F,M 2.36% 2.34% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $ $

10 Financial Highlights continued Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series E1T5 Periods ended November 3, L Net assets, beginning of period B $.74 $. Total revenue.28 Total expenses (excluding distributions) (.47) (.39) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (2.23) Return of capital (1.) (.83) Total distributions B,C (3.23) (.83) Net assets, end of period B $.55 $.74 Net asset value (s) D $ 34 $ 3 Securities outstanding D 1,644 1,468 Management expense ratio E,F,M 2.37% 2.36% Management expense ratio before waivers or absorptions E,F,M 2.44% 2.41% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $.5533 $.7439 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series E2 Periods ended November 3, L Net assets, beginning of period B $.81 $. Total revenue.6 Total expenses (excluding distributions) (.24) (.19) Realized gains (losses).5.7 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (1.18) Return of capital Total distributions B,C (1.18) Net assets, end of period B $ $.81 Net asset value (s) D $ 323 $ 5 Securities outstanding D 28,655 9,76 Management expense ratio E,F,M 2.28% 2.27% Management expense ratio before waivers or absorptions E,F,M 2.35% 2.32% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $ $

11 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series E3 Periods ended November 3, L Net assets, beginning of period B $.84 $. Total revenue.15 Total expenses (excluding distributions) (.23) (.17) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (1.21) Return of capital Total distributions B,C (1.21) Net assets, end of period B $ $.84 Net asset value (s) D $ 1 $ 1 Securities outstanding D 112 Management expense ratio E,F,M 2.13% 1.99% Management expense ratio before waivers or absorptions E,F,M 2.41% 2.39% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $ $.8382 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series E4 Periods ended November 3, 17 N Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.18) Realized gains (losses).4 Unrealized gains (losses) 1. Total increase (decrease) from operations B 1.32 From net investment income (excluding dividends) From dividends From capital gains (1.) Return of capital Total distributions B,C (1.) Net assets, end of period B $.21 Net asset value (s) D $ 18 Securities outstanding D 1,797 Management expense ratio E,F,O 2.17% Management expense ratio before waivers or absorptions E,F,O 2.24% Trading expense ratio H.13% Portfolio turnover rate I 9.43% Net asset value per security, end of period $

12 Financial Highlights continued Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series P1 Periods ended November 3, P Net assets, beginning of period B $ 9.61 $. Total revenue.14.6 Total expenses (excluding distributions) (.11) (.11) Realized gains (losses) Unrealized gains (losses) 1.12 (.97) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (1.16) (.) Return of capital Total distributions B,C (1.16) (.) Net assets, end of period B $. $ 9.61 Net asset value (s) D $ 1,182 $ 95 Securities outstanding D 118,223 98,853 Management expense ratio E,F,Q 1.17% 1.15% Management expense ratio before waivers or absorptions E,F,Q 1.25% 1.22% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $ $ Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series P2 Periods ended November 3, P Net assets, beginning of period B $ 9.61 $. Total revenue.15.6 Total expenses (excluding distributions) (.) (.) Realized gains (losses) Unrealized gains (losses) 1.6 (1.27) Total increase (decrease) from operations B 1.56 (.8) From net investment income (excluding dividends) From dividends From capital gains (1.17) (.) Return of capital Total distributions B,C (1.17) (.) Net assets, end of period B $. $ 9.61 Net asset value (s) D $ 123 $ 126 Securities outstanding D 12,322 13,111 Management expense ratio E,F,Q 1.11% 1.8% Management expense ratio before waivers or absorptions E,F,Q 1.19% 1.14% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $ $

13 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series P3 Periods ended November 3, P Net assets, beginning of period B $ 9.62 $. Total revenue Total expenses (excluding distributions) (.7) (.9) Realized gains (losses) Unrealized gains (losses) 1.7 (2.92) Total increase (decrease) from operations B 1.59 (.76) From net investment income (excluding dividends) From dividends From capital gains (1.17) (.) Return of capital Total distributions B,C (1.17) (.) Net assets, end of period B $.4 $ 9.62 Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio E,F,Q.8% 1.2% Management expense ratio before waivers or absorptions E,F,Q 1.11% 1.9% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $.357 $ Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Series P4 Periods ended November 3, R Net assets, beginning of period B $.73 $. Total revenue.14 Total expenses (excluding distributions) (.7) (.5) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (1.31) Return of capital Total distributions B,C (1.31) Net assets, end of period B $ $.73 Net asset value (s) D $ 1 $ 1 Securities outstanding D 114 Management expense ratio E,F,S.74%.97% Management expense ratio before waivers or absorptions E,F,S 1.9% 1.2% Trading expense ratio H.13%.16% Portfolio turnover rate I 9.43% 15.91% Net asset value per security, end of period $ $

14 Financial Highlights continued Financial Highlights Footnotes A B C D This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 13 follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 13 follow Canadian Generally Accepted Accounting Principles (Canadian GAAP). The net assets attributable to securityholders 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. For reporting periods ending after January 1, 17 per security comparative figures (except for net asset value per security, end of period) have been conformed to the current rounding presentation of two decimal places. As a result, reporting periods ending prior to January 1, 17 may not foot due to this rounding change. 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. 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 securityholders. This information is provided as at period end of the year shown. E Included in the management expense ratio above are tax related costs (17:.3%). F G H I 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. Effective November 1, 14, 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. 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. The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its portfolio investments. A portfolio turnover rate of % 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. J For the period September 16, 16 (commencement of sale of securities) to November 3, 16. K Effective September, 16, 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 For the period February 5, 16 (commencement of sale of securities) to November 3, 16. M Effective February 9, 16, 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. N For the period January 6, 17 (commencement of sale of securities) to November 3, 17. O Effective January, 17, 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. P For the period December 4, 15 (commencement of sale of securities) to November 3, 16. Q Effective December 8, 15, 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. R For the period May 13, 16 (commencement of sale of securities) to November 3, 16. S Effective May 17, 16, 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. 12

15 Management and Advisory Fees Fidelity serves as manager of the Fund. The Fund pays Fidelity a monthly management fee for its 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 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 % 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.% 28.72% 71.28% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 22.4% 77.96% Series T8 2.% % % Series S5 1.85% 54.5% 45.95% Series S8 1.85% 54.5% 45.95% Series E % 54.79% 45.21% Series E1T % 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 P1.825%.% Series P2.8%.% Series P3.775%.% Series P4.725%.% 13

16 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. 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. The performance data shown for the period occurring prior to the commencement of operations of a series P or E is that of the corresponding series F or F5 (for series P) or B or S5 (for series E). Series F, F5, B and S5 have higher combined management and administration fees than the applicable series P and E. Had a series P or E existed since the commencement of operations of series F, F5, B or S5, the returns of the applicable series P or E would have been higher. 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. Series A Series F Series B Commencement of Operations is September 16, Series F Series F - Commencement of Operations is September 16, Series T Commencement of Operations is June 2, 8 14

17 Series T8 Series E1T Commencement of Operations is June 2, 8 Series S5 Commencement of Operations is February 5, 16 Series E Commencement of Operations is June 2, 8 Series S8 Commencement of Operations is February 5, 16 Series E Commencement of Operations is June 2, 8 Series E1 Commencement of Operations is February 5, 16 Series E Commencement of Operations is February 5, 16 Commencement of Operations is January 6, 17 15

18 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Past Performance continued Series P1 Series P Commencement of Operations is December 4, 15 Series P2 Commencement of Operations is December 4, 15 Series P Commencement of Operations is December 4, 15 Commencement of Operations is May 13, 16 Annual Compound Returns This table shows the Fund s historical annual compound total returns for the periods indicated, compared with the Fund s benchmark, the MSCI ACWI (All Country World Index) Index. 16 Past 1 year Past 3 years Past 5 years Past years Since Inception Average Annual Total Returns Fidelity Global Disciplined Equity Class - Series A 16.3%.2% 14.5% 4.2% n/a Fidelity Global Disciplined Equity Class - Series B 16.5%.5% 14.8% 4.4% n/a Fidelity Global Disciplined Equity Class - Series F 17.8% 11.7% 16.1% 5.6% n/a Fidelity Global Disciplined Equity Class - Series F5 17.7% n/a n/a n/a 17.9% Fidelity Global Disciplined Equity Class - Series F8 17.8% n/a n/a n/a 18.% Fidelity Global Disciplined Equity Class - Series T5 16.2%.1% 14.5% n/a 5.1% Fidelity Global Disciplined Equity Class - Series T8 16.4%.3% 14.6% n/a 5.2% Fidelity Global Disciplined Equity Class - Series S5 16.5%.4% 14.7% n/a 5.4% Fidelity Global Disciplined Equity Class - Series S8 16.5%.4% 14.7% n/a 5.4% Fidelity Global Disciplined Equity Class - Series E1 16.6%.5% 14.8% 4.5% n/a Fidelity Global Disciplined Equity Class - Series E1T5 16.5%.4% 14.8% n/a 5.4% Fidelity Global Disciplined Equity Class - Series E2 16.7%.5% 14.8% 4.5% n/a Fidelity Global Disciplined Equity Class - Series E3 16.8%.7% 14.9% 4.5% n/a Fidelity Global Disciplined Equity Class - Series E4 16.8%.5% 14.8% 4.5% n/a Fidelity Global Disciplined Equity Class - Series P1 18.% 11.8% 16.1% 5.6% n/a Fidelity Global Disciplined Equity Class - Series P2 18.% 11.8% 16.1% 5.6% n/a Fidelity Global Disciplined Equity Class - Series P3 18.4% 12.% 16.2% 5.7% n/a Fidelity Global Disciplined Equity Class - Series P4 18.5% 12.% 16.2% 5.7% n/a MSCI ACWI (All Country World Index) Index 19.4% 12.5% 16.9% 7.% 7.9%

19 The period used for the since inception MSCI ACWI (All Country World Index) Index returns are based on Series T5 which has been in existence the longest compared to all Series with less than years of operations. A discussion of Fund performance can be found in the Results of Operations section of this report. The MSCI ACWI (All Country World Index) Index is an unmanaged, free-float-adjusted market-capitalization-weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The MSCI World Index is a market-capitalization-weighted index composed of companies representative of the market structure of developed market countries in North America, Europe and the Asia/Pacific Region. Each series of the Fund will have varying returns because of differences in management fees and expenses. 17

20 Fidelity Global Disciplined Equity Class of the Fidelity Capital Structure Corp. Summary of Investment Portfolio as at November 3, 17 Sector Mix % of Fund s Net Assets as at 11/3/17 % of Fund s Net Assets as at 11/3/16 Financials Information Technology Consumer Discretionary Health Care.8.7 Industrials.4.9 Consumer Staples Energy Materials Real Estate Telecommunication Services Utilities Cash and Cash Equivalents.9 1. Net Other Assets (Liabilities).3.3 Geographic Mix % of Fund s Net Assets as at 11/3/17 % of Fund s Net Assets as at 11/3/16 United States of America United Kingdom France Germany Japan Sweden Ireland Bailiwick of Jersey China 1.4. Austria 1.3. Singapore Hong Kong Switzerland South Africa Belgium Bermuda 1.. Korea (South) 1.. Spain 1.. Others (Individually Less Than 1%) Cash and Cash Equivalents.9 1. Net Other Assets (Liabilities).3.3 Top Issuers % of Fund s Net Assets 1. Apple, Inc Alphabet, Inc Visa, Inc Eagle Materials, Inc Salesforce.com, Inc The Boeing Co Danaher Corp Citigroup, Inc Lockheed Martin Corp Amazon.com, Inc Regions Financial Corp Standard Chartered PLC Erste Group Bank AG Intel Corp Broadcom Ltd AIA Group Ltd The Walt Disney Co Hartford Financial Services Group, Inc Concho Resources, Inc Vertex Pharmaceuticals, Inc Gecina SA Lundin Petroleum AB Royal Dutch Shell PLC British American Tobacco PLC Ingersoll-Rand PLC 1.2 Total Fund Net Assets $16,73, 36.2 Where applicable, the information in the above tables includes the Fund s pro-rata share of the investment in any Fidelity Managed Underlying Fund. 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 18

21 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 19

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24 Fidelity Capital Structure Corp. 47 2nd Street S.W., Suite 8 Calgary, Alberta T2P 2Y3 Manager and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada 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, Fidelity U.S. Money Market Fund or Fidelity U.S. Money Market Investment Trust 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 Fidelity Investments Canada ULC E FICL-GDE-CS-MRFPA-218