Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Annual Management Report of Fund Performance November,

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, Fidelity Global Small Cap 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, 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 Small Cap Class (Fund) aims to achieve long-term capital growth and seeks a return similar to that of Fidelity Global Small Cap Fund (Underlying Fund) by investing substantially all of its assets in securities of the Underlying Fund. The Underlying Fund, also managed by Fidelity, aims to achieve long-term capital growth by investing primarily in equity securities of small-capitalization companies located anywhere in the world. Strategies: The portfolio manager considers small-capitalization companies to be those similar in size to the companies in the MSCI ACWI (All Country World Index) Small Cap Index. The portfolio manager generally diversifies the Underlying Fund s investments across different countries and regions. When buying or selling securities for the Underlying Fund, the portfolio manager examines each company s potential for success in light of its current financial condition and industry position, as well as economic and market conditions. The portfolio manager considers factors such as growth potential, earnings estimates and quality of management. Risk The risks associated with investing in the Fund are same as for the Underlying Fund and remain as discussed in the prospectus. Any changes to the Underlying Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors who want to gain exposure to global small-capitalization companies, and who can handle the volatility of returns generally associated with equity investments in small companies. To invest in the Fund, an investor should be able to accept a medium to high level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity Global Small Cap Class Series B returned 9.3% after fees and expenses for the one-year period ended November,. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. Global equities, as measured by the MSCI World Index, returned 18.5% in Canadian dollar terms for the review 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%, and 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 centrist candidate in the French presidential election. Asian equities gained during the review period, with the MSCI AC (All Country) Asia Pacific Index returning 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 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 s benchmark, the MSCI ACWI (All Country World Index) Small Cap Index, returned 19.1%. The Fund underperformed its benchmark primarily due to the Underlying Fund s exposure to certain stocks in the health care sector. Within the health care sector, investments in U.S.-based health care service provider Envision Healthcare, and U.S.-based biopharmaceutical firm Radius Health, detracted from relative returns. Investments in certain stocks in the industrials sector also detracted. Within the industrials sector, U.S.-based specialty industrial services firm Team, and Finland-based industrial and construction equipment rental firm Cramo, detracted from relative returns. Among other sectors, U.S.-based e-commerce transaction service management solutions provider Synchronoss Technologies, and U.S.-based oil & gas exploration and production firm Carrizo Oil and Gas, detracted from relative returns. In contrast, exposure to certain stocks in the utilities sector contributed to relative performance. Within the sector, investments in Turkeybased LPG utilities firm Aygaz, and Australia-based electrical utilities firm Spark Infrastructure, contributed to relative returns. Among other sectors, investments in U.S.-based electronic gaming publisher Take-Two Interactive Software, U.S.-based diversified homebuilder 1

4 Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued CalAtlantic Group, and U.S.-based software solutions firm Callidus Software, contributed to relative returns. At the end of the review period, the Fund had no exposure to Aygaz, Spark Infrastructure, and Carrizo Oil and Gas. Positioning changes: During the review period, the Underlying Fund s exposure to the industrials and information technology sectors increased. Within the industrials sector, positions were initiated in Japan-based staffing and professional services firm Meitec, as the portfolio manager believes it exhibits strong earnings momentum and the capacity to expand on margins. Within the information technology sector, a position was initiated in U.S.-based optical technology firm Lumentum Holdings, as the portfolio manager believes it exhibits attractive fundamentals and strong growth potential. In addition, exposure was increased to certain stocks in the materials sector. In contrast, the Underlying Fund s exposure to the energy and real estate sectors decreased. Within the energy sector, the Fund exited its position in Japan-based oil & gas refining & marketing firm SAN-AI Oil. Within the real estate sector, the position in U.S.-based real estate firm Jones Lang LaSalle was sold. The portfolio manager opted to realize profits on these positions as valuations were perceived to be excessive. In addition, exposure was reduced to certain stocks in the consumer discretionary sector. In terms of regional exposures, the Underlying Fund s exposure to Europe increased during the period while exposure to Asia Pacific decreased. Regional exposures are generally a result of the portfolio manager s fundamental, bottom-up stock-selection process and are not indicative of a positive or negative view on a particular region. Recent Developments Mr. Feldman remains optimistic about the potential for small-cap stocks to provide diversification and attractive returns. He believes the valuations of small-cap securities are more attractive than those of large-cap securities. Mr. Feldman believes the global small-cap segment is inefficient and under-researched; as a result, with sufficient research resources, he believes it is possible to find attractively priced stocks in all parts of the market cycle. In addition, the portfolio manager believes that small-cap companies are more exposed to local markets and local factors, and so may be insulated to some degree from broader market forces. At the end of the review period, the Fund had its largest absolute exposure to the industrials sector, followed by the information technology sector. The Fund diverged the most from benchmark sector weightings by having more exposure to the information technology sector and less exposure to the real estate sector. 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 $46, for the period ended November,. 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 $7, for the period ended November,. 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 Small Cap Class of the Fidelity Capital Structure Corp. Series A Periods ended November, 214 Net assets, beginning of period B $ $ $ $ 13.7 $ 9.49 Total revenue Total expenses (excluding distributions) (.43) (.41) (.41) (.36) (.) Realized gains (losses) Unrealized gains (losses).66 (.7) Total increase (decrease) from operations B 1.38 (.41) From net investment income (excluding dividends) From dividends From capital gains (.3) Return of capital Total distributions B,C (.3) Net assets, end of period B $ $ $ $ $ 13.7 Net asset value (s) D $ 736 $ 643 $ 647 $ 45 $ 2 Securities outstanding D 41,239 39,2 38,178 32,346,7 Management expense ratio E,F 2.57% 2.6% 2.6% 2.63% 2.61% Management expense ratio before waivers or absorptions E,F 2.65% 2.67% 2.65% 2.64% 2.61% Trading expense ratio G.6%.5%.3%.9%.14% Portfolio turnover rate H 24.45% 24.96% 44.73% 36.71% 62.11% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series B Periods ended November, 214 Net assets, beginning of period B $ $ $ 14.3 $ $ 9.54 Total revenue Total expenses (excluding distributions) (.41) (.37) (.39) (.34) (.28) Realized gains (losses) Unrealized gains (losses).8 (2.12) Total increase (decrease) from operations B 1.61 (1.85) From net investment income (excluding dividends) From dividends From capital gains (.6) Return of capital Total distributions B,C (.6) Net assets, end of period B $ 18.5 $ $ $ 14.3 $ Net asset value (s) D $ 1,124 $ 1,5 $ 1,913 $ 1,231 $ 1,299 Securities outstanding D 62,196 66,97 111,865 87,79 98,812 Management expense ratio E,F 2.39% 2.39% 2.41% 2.43% 2.47% Management expense ratio before waivers or absorptions E,F 2.45% 2.44% 2.43% 2.44% 2.47% Trading expense ratio G.6%.5%.3%.9%.14% Portfolio turnover rate H 24.45% 24.96% 44.73% 36.71% 62.11% Net asset value per security, end of period $ $ $ 17.1 $ $

6 Financial Highlights continued Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series F Periods ended November, 214 Net assets, beginning of period B $ $ 18.1 $ 14.6 $ $ 9.7 Total revenue Total expenses (excluding distributions) (.22) (.2) (.21) (.19) (.16) Realized gains (losses) Unrealized gains (losses).8 (1.11) Total increase (decrease) from operations B 1.74 (.61) From net investment income (excluding dividends) From dividends From capital gains (.28) Return of capital Total distributions B,C (.28) Net assets, end of period B $ 19.2 $ $ 18.1 $ 14.6 $ Net asset value (s) D $ 631 $ 4 $ 66 $ 353 $ 353 Securities outstanding D 32,846 25,357 33,657 24,18 26,53 Management expense ratio E,F 1.2% 1.23% 1.23% 1.35% 1.34% Management expense ratio before waivers or absorptions E,F 1.28% 1.% 1.31% 1.36% 1.34% Trading expense ratio G.6%.5%.3%.9%.14% Portfolio turnover rate H 24.45% 24.96% 44.73% 36.71% 62.11% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series E1 Periods ended November, I Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.27) (.2) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ Net asset value (s) D $ 153 $ 6 Securities outstanding D 12,463 27,276 Management expense ratio E,J 2.29% 2.31% Management expense ratio before waivers or absorptions E,J 2.35% 2.35% Trading expense ratio G.6%.5% Portfolio turnover rate H 24.45% 24.96% Net asset value per security, end of period $ $

7 Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series E2 Periods ended November, I Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.25) (.19) Realized gains (losses) Unrealized gains (losses)..88 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ Net asset value (s) D $ 16 $ 2 Securities outstanding D 1,322 1,82 Management expense ratio E,J 2.11% 2.15% Management expense ratio before waivers or absorptions E,J 2.18% 2.19% Trading expense ratio G.6%.5% Portfolio turnover rate H 24.45% 24.96% Net asset value per security, end of period $ $ Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series E3 Periods ended November, I Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.25) (.17) Realized gains (losses).7.46 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio E,J 2.16% 1.93% Management expense ratio before waivers or absorptions E,J 2.38% 2.32% Trading expense ratio G.6%.5% Portfolio turnover rate H 24.45% 24.96% Net asset value per security, end of period $ 12.3 $

8 Financial Highlights continued Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series E4 Periods ended November, I Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.24) (.17) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio E,J 2.4% 1.93% Management expense ratio before waivers or absorptions E,J 2.29% 2.32% Trading expense ratio G.6%.5% Portfolio turnover rate H 24.45% 24.96% Net asset value per security, end of period $ $ Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series P1 Periods ended November, K Net assets, beginning of period B $ 9.61 $. Total revenue Total expenses (excluding distributions) (.11) (.) Realized gains (losses) Unrealized gains (losses).33 (1.84) Total increase (decrease) from operations B.81 (1.68) From net investment income (excluding dividends) From dividends From capital gains (.15) Return of capital Total distributions B,C (.15) Net assets, end of period B $.63 $ 9.61 Net asset value (s) D $ 22 $ 2 Securities outstanding D 2,66 2,66 Management expense ratio E,L 1.14% 1.17% Management expense ratio before waivers or absorptions E,L 1.22% 1.24% Trading expense ratio G.6%.5% Portfolio turnover rate H 24.45% 24.96% Net asset value per security, end of period $.6341 $

9 Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series P2 Periods ended November, K Net assets, beginning of period B $ 9.63 $. Total revenue Total expenses (excluding distributions) (.11) (.) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.15) Return of capital Total distributions B,C (.15) Net assets, end of period B $.67 $ 9.63 Net asset value (s) D $ 22 $ 154 Securities outstanding D 18,957 15,994 Management expense ratio E,L 1.6% 1.8% Management expense ratio before waivers or absorptions E,L 1.14% 1.14% Trading expense ratio G.6%.5% Portfolio turnover rate H 24.45% 24.96% Net asset value per security, end of period $.6663 $ Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series P3 Periods ended November, K Net assets, beginning of period B $ 9.63 $. Total revenue Total expenses (excluding distributions) (.) (.9) Realized gains (losses) Unrealized gains (losses).43 (.29) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.15) Return of capital Total distributions B,C (.15) Net assets, end of period B $.67 $ 9.63 Net asset value (s) D $ 1 $ Securities outstanding D,341,341 Management expense ratio E,L 1.2% 1.4% Management expense ratio before waivers or absorptions E,L 1.% 1.% Trading expense ratio G.6%.5% Portfolio turnover rate H 24.45% 24.96% Net asset value per security, end of period $.676 $

10 Financial Highlights continued Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Series P4 Periods ended November, M Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.1) Realized gains (losses).3 Unrealized gains (losses).85 Total increase (decrease) from operations B.87 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $.87 Net asset value (s) D $ 1 Securities outstanding D Management expense ratio E,N.8% Management expense ratio before waivers or absorptions E,N 1.18% Trading expense ratio G.6% Portfolio turnover rate H 24.45% Net asset value per security, end of period $

11 Financial Highlights Footnotes A B C D E F G H This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 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, 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, 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. 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, 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. 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. I For the period February 5, (commencement of sale of securities) to November,. J 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. K For the period December 4, (commencement of sale of securities) to November,. L Effective December 8,, 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. M For the period September 22, (commencement of sale of securities) to November,. N Effective September 26,, 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. 9

12 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.% 74.6% 25.% Series B 1.85% 54.5% 45.95% Series F.85%.% 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 P1.825%.% Series P2.8%.% Series P3.775%.% Series P4.725%.%

13 Fidelity Global Small Cap 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 E Commencement of Operations is April 4, Series B Commencement of Operations is February 5, Series E Commencement of Operations is April 4, Series F Commencement of Operations is February 5, Series E Commencement of Operations is April 4, Commencement of Operations is February 5, 11

14 Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Past Performance continued Series E4 Series P Commencement of Operations is February 5, Series P1 Commencement of Operations is December 4, Series P Commencement of Operations is December 4, Commencement of Operations is September 22, Series P Commencement of Operations is December 4, Annual Compound Returns This table shows the Fund s historical annual compound total returns for the periods indicated, compared with a broad-based index, the MSCI World Index, and the Fund s benchmark, the MSCI ACWI (All Country World Index) Small Cap Index, as described below. 12

15 Past 1 year Past 3 years Past 5 years Since Inception Average Annual Total Returns Fidelity Global Small Cap Class Series A 9.1% 8.7% 13.5% 9.1% Fidelity Global Small Cap Class Series B 9.3% 8.9% 13.7% 9.3% Fidelity Global Small Cap Class Series F.6%.2% 15.%.6% Fidelity Global Small Cap Class Series E1 9.4% 8.9% 13.7% 9.4% Fidelity Global Small Cap Class Series E2 9.6% 9.1% 13.8% 9.4% Fidelity Global Small Cap Class Series E3 9.5% 9.1% 13.8% 9.4% Fidelity Global Small Cap Class Series E4 9.7% 9.2% 13.9% 9.5% Fidelity Global Small Cap Class Series P1.7%.2% 15.%.6% Fidelity Global Small Cap Class Series P2.8%.3% 15.1%.6% Fidelity Global Small Cap Class Series P3.8%.3% 15.1%.6% Fidelity Global Small Cap Class Series P4.7%.2% 15.%.6% MSCI ACWI (All Country World Index) Small Cap Index 19.1% 15.% 18.7% 13.4% MSCI World Index 18.5% 12.7% 17.7% 13.7% The period used for the since inception MSCI ACWI (All Country World Index) Small Cap Index and MSCI World Index returns are based on Series A which has been in existence the longest compared to all Series with less than years of operations. A discussion of the performance of the fund can be found in the Results of Operations section of this report. The MSCI ACWI (All Country World Index) Small Cap 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 small-capitalization 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 will have different returns because of differences in management fees and expenses. 13

16 Fidelity Global Small Cap Class of the Fidelity Capital Structure Corp. Summary of Investment Portfolio as at November, Sector Mix % of Fund s Net Assets as at 11//17 % of Fund s Net Assets as at 11//16 Industrials Information Technology Consumer Discretionary Financials Materials Health Care Real Estate Energy Consumer Staples Utilities Others (Individually Less Than 1%) Cash and Cash Equivalents.7. Net Other Assets (Liabilities) (.3).8 Market Capitalization % of Fund s Net Assets as at 11//17 % of Fund s Net Assets as at 11//16 Large Mid Small 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 $ billion, and large cap as over $ billion in capitalization. Geographic Mix % of Fund s Net Assets as at 11//17 % of Fund s Net Assets as at 11//16 United States of America Japan United Kingdom Canada Ireland Israel Taiwan France Spain Finland Netherlands Germany Korea (South) Australia Cayman Islands Italy China 1..7 Hong Kong Norway 1..6 Others (Individually Less Than 1%) Cash and Cash Equivalents.7. Net Other Assets (Liabilities) (.3).8 14

17 Top Issuers % of Fund s Net Assets 1. United Drug PLC Frutarom Inds Ltd Cavium, Inc Obic Co. Ltd Lundin Mining Corp BBA Aviation PLC BankUnited, Inc Miura Co. Ltd Cramo Oyj 1.2. Take-Two Interactive Software, Inc ITT, Inc CalAtlantic Group, Inc EMCOR Group, Inc. 1.1 % of Fund s Net Assets 14. Brunswick Corp Centennial Resource Development, Inc Piedmont Office Realty Trust, Inc Rexford Industrial Realty, Inc Shenzhen Expressway Co The Scotts Miracle-Gro Co CVB Financial Corp Internet Initiative Japan, Inc Monolithic Power Systems, Inc SpareBank 1 SR-Bank ASA Callidus Software, Inc Deluxe Corp..9 Total Fund Net Assets $2,997, 29. 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 available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 15

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20 Fidelity Capital Structure Corp. 7 2nd Street S.W., Suite 82 Calgary, Alberta T2P 2Y3 Manager and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 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-GSC-CS-MRFPA-218