Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Semi-Annual Management Report of Fund Performance May 31,

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 May 31, Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. 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, Toronto ON M5G 2N7 or by visiting our website at 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 Results of Operations Fidelity Canadian Growth Company Class (Fund) invests substantially all of its assets in securities of Fidelity Canadian Growth Company Fund (Underlying Fund). Fidelity Canadian Growth Company Class, Series B, returned 9.4%, after fees and expenses, for the six-month period ended May 31,. The net returns of the other series of this Class are similar to those of Series B, except for differences attributable to expense structures. During the review period, the broad Canadian equity market, as represented by the S&P/TSX Composite Index returned 1.4% (in Canadian dollar terms). Market overview: During the first half of the review period, Canadian equities underperformed global markets, weighed down by uncertainty over NAFTA renegotiations, imposition of tariffs on aluminium and steel exports, and high consumer debt levels. The potential collapse of NAFTA could hurt shares of auto parts, railroad and energy companies that depend on trade with the U.S. Towards the second half of the period, energy stocks gained ground, supported by higher crude oil prices. Rising interest rates and higher commodity prices boosted cyclical stocks that make up nearly 65% of Canadian equities. The Canadian economy performed slightly weaker than expectations, with GDP growing at 1.3% in the first quarter of. The Bank of Canada raised interest rates once in the past six months, prompted by healthy economic fundamentals but expressed caution on the potential negative impact of NAFTA s uncertain future having spillover effects on trade and business investments in Canada. Factors affecting performance: The Fund s benchmark returned 2.2%, in Canadian dollar terms, during the 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 (.%). The Underlying Fund s larger-than-benchmark exposure to the information technology sector contributed to relative returns. In addition, exposure to certain stocks in the materials and health care sectors also added to relative performance. In the materials sector, exposure to Canadian mining company First Quantum Minerals and Canadian manufacturer of wood-based panels Norbord contributed to relative returns. In the health care sector, exposure to U.S.-based biopharmaceutical company Loxo Oncology and U.S.-based biopharmaceutical company Sarepta Therapeutics also contributed to relative returns. In contrast, a lower-than-benchmark exposure to the industrials sector, as well as security selection in the sector, detracted from relative returns, with U.S.-based low-cost airline Spirit Airlines making the largest detraction from relative returns. Among other sectors, exposure to Canadian cryptocurrency mining firm HIVE Blockchain Technology and U.S.-based e-commerce company ebay detracted from relative performance. At the end of the review period, the Fund had no exposure to Spirit Airlines. Portfolio changes: During the review period, the portfolio manager increased the Underlying Fund s exposure to the energy sector, initiating new positions in Canadian oil and gas exploration company Canadian Natural Resources, Canadian integrated oil and gas company Suncor Energy and U.S.-based oil and gas exploration company EOG Resources; in the portfolio manager s view, these companies could benefit from higher energy prices. In contrast, exposure was reduced to the information technology and financials sectors. In the information technology sector, the portfolio manager exited investments in U.S.-based semiconductor company Advanced Micro Devices and payment processing company PayPal to lock in gains after their share prices rose significantly and downside risks increased. In the financials sector, holdings in Canadian bank Toronto-Dominion Bank and Canadian insurance and financial services provider Manulife were closed; the fundamentals of the companies were not improving as rapidly as the portfolio manager had anticipated, and he opted to find opportunities with greater upside potential elsewhere. Recent Developments Portfolio manager Mark Schmehl s investment approach remains focused on identifying positive change in company fundamentals and seeking to add value by focusing on uncovering investment opportunities where business conditions are or could be improving. He has increased exposure to Canada by placing more focus on energy stocks, which he believes could benefit from higher energy prices. He also placed greater emphasis on companies showing signs of improved growth opportunities, and that have observed and learned from decisions made by market leaders. Mr. Schmehl believes that equity markets still have a bit of a runway, although he has grown more cautious on the FANG stocks (Facebook, Amazon, Netflix and Google), owing to their outperformance. He believes markets are in a phase of digestion as market participants think through the implications of the innovations that have been developed so far. Mr. Schmehl continues to believe that the global economy is healthy, and he is positive on equity market returns over the long term. 1

4 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued At the end of the review period, the Underlying Fund had its largest absolute exposure to the information technology sector, followed by the energy sector. The Underlying Fund diverged the most from the benchmark sector weightings by having more exposure to the information technology and energy sectors and lower exposure to the financials sector. In terms of country exposure, Canada represented the Underlying Fund s largest exposure, followed by the U.S. Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader collection 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 $3,78, for the period ended May 31,. 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 $443, for the period ended May 31,. 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 Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series A May 31, Periods ended November, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.55) (.98) (.85) (.86) (.74) (.58) Realized gains (losses) Unrealized gains (losses) (1.63) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (1.68) Return of capital Total distributions B,C (.1) (1.68) Net assets, end of period B $ 47. $ $ $ $ $ Net asset value (s) D $ 98,822 $ 71,855 $ 44,953 $ 24,76 $,657 $ 9,551 Securities outstanding D 2,9,946 1,664,884 1,234,61 711, , ,584 Management expense ratio E,F 2.48% 2.47% 2.47% 2.5% 2.57% 2.58% Management expense ratio before waivers or absorptions E,F 2.55% 2.57% 2.56% 2.56% 2.58% 2.58% Trading expense ratio G.24%.29%.42%.23%.36%.44% Portfolio turnover rate H.82% 2.92% 9.15% 22.4% 19.89% 12.37% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series B May 31, Periods ended November, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.52) (.92) (.8) (.8) (.69) (.54) Realized gains (losses) Unrealized gains (losses) (1.6) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (1.79) Return of capital Total distributions B,C (.1) (1.79) Net assets, end of period B $ 48.5 $ $ $ $ $ Net asset value (s) D $ 144,96 $ 1,77 $ 58,96 $ 54,5 $ 36,328 $ 26, Securities outstanding D 2,997,678 2,297,618 1,565,369 1,518,859 1,143,425 98,153 Management expense ratio E,F 2.27% 2.27% 2.27% 2.29% 2.33% 2.34% Management expense ratio before waivers or absorptions E,F 2.33% 2.34% 2.33% 2.32% 2.34% 2.34% Trading expense ratio G.24%.29%.42%.23%.36%.44% Portfolio turnover rate H.82% 2.92% 9.15% 22.4% 19.89% 12.37% Net asset value per security, end of period $ $ $ $ $ $

6 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series F May 31, Periods ended November, Net assets, beginning of period B $ $ 43.4 $ $ $.61 $.82 Total revenue Total expenses (excluding distributions) (.) (.53) (.47) (.47) (.41) (.32) Realized gains (losses) Unrealized gains (losses) (1.44) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (.47) (2.56) Return of capital Total distributions B,C (.48) (2.56) Net assets, end of period B $ $ $ 43.4 $ $ $.61 Net asset value (s) D $ 179,4 $ 129,785 $ 72,92 $ 32,688 $ 25,745 $ 4,44 Securities outstanding D 3,153,51 2,512,6 1,67, ,372 72, ,878 Management expense ratio E,F 1.14% 1.13% 1.13% 1.15% 1.19% 1.22% Management expense ratio before waivers or absorptions E,F 1.18% 1.% 1.% 1.21% 1.% 1.22% Trading expense ratio G.24%.29%.42%.23%.36%.44% Portfolio turnover rate H.82% 2.92% 9.15% 22.4% 19.89% 12.37% Net asset value per security, end of period $ $ $ $ $ $.6116 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series F5 May 31, Periods ended November, I Net assets, beginning of period B $ $.14 $. Total revenue Total expenses (excluding distributions) (.13) (.25) (.4) Realized gains (losses).52.8 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.21) Return of capital (.5) (1.) (.25) Total distributions B,C (.5) (1.21) (.25) Net assets, end of period B $ $ $.14 Net asset value (s) D $ 3,283 $ 2,412 $ 2 Securities outstanding D 133,384 5,42 15,377 Management expense ratio E,J 1.13% 1.14% 1.17% Management expense ratio before waivers or absorptions E,J 1.17% 1.% 1.22% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

7 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series F8 May 31, Periods ended November, I Net assets, beginning of period B $ 22.1 $ $. Total revenue Total expenses (excluding distributions) (.13) (.24) (.2) Realized gains (losses).38.7 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.28) Return of capital (.8) (1.6) (.4) Total distributions B,C (.8) (1.88) (.4) Net assets, end of period B $ $ 22.1 $ Net asset value (s) D $ 3,396 $ 1,589 $ 1 Securities outstanding D 145,3 72, Management expense ratio E,J 1.13% 1.13%.82% Management expense ratio before waivers or absorptions E,J 1.17% 1.% 1.23% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ 22.8 $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series T5 May 31, Periods ended November, K Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.28) (.46) Realized gains (losses).28.7 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.92) Total distributions B,C (.5) (.92) Net assets, end of period B $ $ Net asset value (s) D $ 5,943 $ 1,69 Securities outstanding D 252,43 72,771 Management expense ratio E,L 2.47% 2.5% Management expense ratio before waivers or absorptions E,L 2.54% 2.59% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $

8 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series T8 May 31, Periods ended November, K Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.27) (.45) Realized gains (losses).33.7 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.8) (1.47) Total distributions B,C (.8) (1.47) Net assets, end of period B $ 22.7 $ Net asset value (s) D $ 3,999 $ 1,378 Securities outstanding D 176,4 64,64 Management expense ratio E,L 2.49% 2.49% Management expense ratio before waivers or absorptions E,L 2.56% 2.59% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series S5 May 31, Periods ended November, K Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.25) (.42) Realized gains (losses).5.5 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.92) Total distributions B,C (.5) (.92) Net assets, end of period B $ $ Net asset value (s) D $ 1,414 $ 1,89 Securities outstanding D 59,621 49,162 Management expense ratio E,L 2.% 2.26% Management expense ratio before waivers or absorptions E,L 2.25% 2.32% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $

9 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series S8 May 31, Periods ended November, K Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.25) (.43) Realized gains (losses).35.7 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.8) (1.47) Total distributions B,C (.8) (1.47) Net assets, end of period B $ $ Net asset value (s) D $ 2,869 $ 1,138 Securities outstanding D 127,68 52,857 Management expense ratio E,L 2.32% 2.33% Management expense ratio before waivers or absorptions E,L 2.37% 2.4% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E1 May 31, Periods ended November, M Net assets, beginning of period B $ 13.8 $ $. Total revenue Total expenses (excluding distributions) (.16) (.28) (.) 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 $ 15. $ 13.8 $ Net asset value (s) D $ 49,584 $ 34,831 $ 17,439 Securities outstanding D 3,279,958 2,527,75 1,512,54 Management expense ratio E,N 2.22% 2.22% 2.23% Management expense ratio before waivers or absorptions E,N 2.27% 2.28% 2.29% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

10 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E1T5 May 31, Periods ended November, O Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.23) (.26) Realized gains (losses).38.5 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.67) Total distributions B,C (.5) (.67) Net assets, end of period B $ $ Net asset value (s) D $ 643 $ 269 Securities outstanding D 28,198 12,589 Management expense ratio E,P 2.14% 2.16% Management expense ratio before waivers or absorptions E,P 2.19% 2.22% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E2 May 31, Periods ended November, M Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.16) (.27) (.) 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 $ 19,7 $ 13,413 $ 9,221 Securities outstanding D 1,319,6 971, ,879 Management expense ratio E,N 2.17% 2.17% 2.15% Management expense ratio before waivers or absorptions E,N 2.22% 2.24% 2.21% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

11 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E2T5 May 31, Periods ended November, O Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.24) (.27) 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 (.5) (.67) Total distributions B,C (.5) (.67) Net assets, end of period B $ $ Net asset value (s) D $ 28 $ 138 Securities outstanding D 1,245 6,481 Management expense ratio E,P 2.23% 2.23% Management expense ratio before waivers or absorptions E,P 2.28% 2.29% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E3 May 31, Periods ended November, M Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.15) (.27) (.) 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 $ 5,949 $ 2,842 $ 1,789 Securities outstanding D 393,352 5, ,983 Management expense ratio E,N 2.13% 2.16% 2.17% Management expense ratio before waivers or absorptions E,N 2.18% 2.23% 2.23% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

12 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E3T5 May 31, Periods ended November, O Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.24) (.26) Realized gains (losses).58.5 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.67) Total distributions B,C (.5) (.67) Net assets, end of period B $ $ Net asset value (s) D $ 2,282 $ 2,332 Securities outstanding D,33 9,712 Management expense ratio E,P 2.17% 2.17% Management expense ratio before waivers or absorptions E,P 2.23% 2.24% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E4 May 31, Periods ended November, M Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.15) (.26) (.19) Realized gains (losses).42. Unrealized gains (losses) Total increase (decrease) from operations B 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 $ $ $ Net asset value (s) D $ 2,176 $ 2,393 $ 3 Securities outstanding D 143, ,955 8,829 Management expense ratio E,N 2.6% 2.8% 2.% Management expense ratio before waivers or absorptions E,N 2.12% 2.15% 2.18% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

13 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E5 May 31, Periods ended November, O Net assets, beginning of period B $ 11.3 $. Total revenue Total expenses (excluding distributions) (.12) (.12) Realized gains (losses).5.2 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 $ 12.9 $ 11.3 Net asset value (s) D $ 486 $ 1,199 Securities outstanding D 4,17 4,494 Management expense ratio E,P 2.3% 1.93% Management expense ratio before waivers or absorptions E,P 2.8% 1.99% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ 12.9 $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P1 May 31, Periods ended November, Q Net assets, beginning of period B $ $.46 $. Total revenue Total expenses (excluding distributions) (.7) (.12) (.11) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.12) (.62) Return of capital Total distributions B,C (.12) (.62) Net assets, end of period B $ $ $.46 Net asset value (s) D $ 68,233 $ 46,63 $ 15,816 Securities outstanding D 5,49,182 3,751,445 1,57,74 Management expense ratio E,R 1.8% 1.9% 1.8% Management expense ratio before waivers or absorptions E,R 1.12% 1.15% 1.15% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

14 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P1T5 May 31, Periods ended November, O Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.12) (.13) Realized gains (losses).38.5 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.67) Total distributions B,C (.5) (.67) Net assets, end of period B $ 23. $ Net asset value (s) D $ 1,459 $ 663 Securities outstanding D 63,172,89 Management expense ratio E,P 1.9% 1.9% Management expense ratio before waivers or absorptions E,P 1.13% 1.16% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ 23.4 $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P2 May 31, Periods ended November, Q Net assets, beginning of period B $ $.46 $. Total revenue Total expenses (excluding distributions) (.7) (.12) (.) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.12) (.62) Return of capital Total distributions B,C (.12) (.62) Net assets, end of period B $ $ $.46 Net asset value (s) D $ 26,57 $ 17,965 $ 6,345 Securities outstanding D 1,859,251 1,444,4 66,745 Management expense ratio E,R 1.4% 1.4% 1.4% Management expense ratio before waivers or absorptions E,R 1.8% 1.11% 1.11% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

15 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P2T5 May 31, Periods ended November, S Net assets, beginning of period B $ 22.1 $. Total revenue Total expenses (excluding distributions) (.11) (.8) Realized gains (losses).55.4 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.42) Total distributions B,C (.5) (.42) Net assets, end of period B $ $ 22.1 Net asset value (s) D $ 1,48 $ 88 Securities outstanding D 44,221 39,995 Management expense ratio E,T 1.% 1.3% Management expense ratio before waivers or absorptions E,T 1.4% 1.9% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P3 May 31, Periods ended November, Q Net assets, beginning of period B $ $.46 $. Total revenue Total expenses (excluding distributions) (.6) (.11) (.) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.13) (.62) Return of capital Total distributions B,C (.13) (.62) Net assets, end of period B $ $ $.46 Net asset value (s) D $ 18,223 $ 9,16 $ 4,89 Securities outstanding D 1,334, , ,255 Management expense ratio E,R.97%.98%.98% Management expense ratio before waivers or absorptions E,R 1.% 1.5% 1.5% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

16 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P3T5 May 31, Periods ended November, U Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.11) (.4) Realized gains (losses) Unrealized gains (losses) (2.).87 Total increase (decrease) from operations B (.76).86 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.25) Total distributions B,C (.5) (.25) Net assets, end of period B $ 22.9 $ Net asset value (s) D $ 1 $ 1,244 Securities outstanding D 52 58,76 Management expense ratio E,V.99%.98% Management expense ratio before waivers or absorptions E,V 1.6% 1.4% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P4 May 31, Periods ended November, Q Net assets, beginning of period B $ 12.5 $.48 $. Total revenue Total expenses (excluding distributions) (.6) (.) (.9) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.14) (.62) Return of capital Total distributions B,C (.14) (.62) Net assets, end of period B $ $ 12.5 $.48 Net asset value (s) D $ 5,268 $ 1,148 $ 1,399 Securities outstanding D 382,549 91, ,54 Management expense ratio E,R.94%.93%.93% Management expense ratio before waivers or absorptions E,R.97% 1.% 1.% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

17 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P4T5 May 31, Periods ended November, U Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.) (.3) Realized gains (losses).36.1 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.25) Total distributions B,C (.5) (.25) Net assets, end of period B $ 22.9 $ Net asset value (s) D $ 229 $ 87 Securities outstanding D 9,991 4,68 Management expense ratio E,V.94%.94% Management expense ratio before waivers or absorptions E,V.97% 1.% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P5 May 31, Periods ended November, Q Net assets, beginning of period B $ $.48 $. Total revenue Total expenses (excluding distributions) (.6) (.) (.7) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.14) (.62) Return of capital Total distributions B,C (.14) (.62) Net assets, end of period B $ $ $.48 Net asset value (s) D $,146 $ 7,742 $ 8,795 Securities outstanding D 737,1 619, ,896 Management expense ratio E,R.85%.86%.87% Management expense ratio before waivers or absorptions E,R.89%.93%.94% Trading expense ratio G.24%.29%.42% Portfolio turnover rate H.82% 2.92% 9.15% Net asset value per security, end of period $ $ $

18 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P5T5 May 31, Periods ended November, U Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.9) (.3) Realized gains (losses).51.1 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.25) Total distributions B,C (.5) (.25) Net assets, end of period B $ $ Net asset value (s) D $ 9,4 $ 7,733 Securities outstanding D 394, ,574 Management expense ratio E,V.85%.88% Management expense ratio before waivers or absorptions E,V.89%.94% Trading expense ratio G.24%.29% Portfolio turnover rate H.82% 2.92% Net asset value per security, end of period $ $

19 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, 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, 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. 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 securityholders. 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, 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. 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 % 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 September 16, (commencement of sale of securities) to November,. J Effective September,, 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 January 6, (commencement of sale of securities) to November,. L Effective January,, 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 February 5, (commencement of sale of securities) to November,. 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 April 21, (commencement of sale of securities) to November,. P Effective April 25,, 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. Q For the period December 4, 15 (commencement of sale of securities) to November,. R 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. S For the period July 14, (commencement of sale of securities) to November,. T Effective July 18,, 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. U For the period September 22, (commencement of sale of securities) to November,. V 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. 17

20 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.% 73.91% 26.9% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 95.23% 4.77% Series T8 2.% 15.5% -5.5% 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 E2T5 1.8% 55.56% 44.44% Series E % 56.34% 43.66% Series E3T % 56.34% 43.66% Series E % 57.97% 42.3% Series E % 59.7% 4.% Series P1.825%.% Series P1T5.825%.% Series P2.8%.% Series P2T5.8%.% Series P3.775%.% Series P3T5.775%.% Series P4.725%.% Series P4T5.725%.% Series P5.675%.% Series P5T5.675%.% 18

21 Fidelity Canadian Growth Company 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. For each Series in the Yearby-Year Returns table below, the most recent returns stated are for the current six month period. 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 January 6, 19

22 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Past Performance continued Series T8 Series E1T Commencement of Operations is January 6, Commencement of Operations is April 21, Series S5 Series E Commencement of Operations is January 6, Commencement of Operations is February 5, Series S8 Series E2T Commencement of Operations is January 6, Commencement of Operations is April 21, Series E1 Series E Commencement of Operations is February 5, Commencement of Operations is February 5,

23 Series E3T5 Series P1T Commencement of Operations is April 21, Commencement of Operations is April 21, Series E4 Series P Commencement of Operations is February 5, Series E5 Commencement of Operations is December 4, 15 Series P2T Commencement of Operations is April 21, Series P1 Commencement of Operations is July 14, Series P Commencement of Operations is December 4, 15 Commencement of Operations is December 4, 15 21

24 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Past Performance continued Series P3T5 Series P5T Commencement of Operations is September 22, Commencement of Operations is September 22, Series P Commencement of Operations is December 4, 15 Series P4T Commencement of Operations is September 22, Series P Commencement of Operations is December 4, 15 22

25 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Summary of Investment Portfolio as at May 31, Sector Mix % of Fund s Net Assets as at 5/31/18 % of Fund s Net Assets as at 11//17 Information Technology Energy Consumer Discretionary Materials Industrials Health Care Financials Consumer Staples Real Estate 2.1. Others (Individually Less Than 1%). 3.1 Cash and Cash Equivalents Net Other Assets (Liabilities) (2.5) (.5) Market Capitalization % of Fund s Net Assets as at 5/31/18 % of Fund s Net Assets as at 11//17 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 5/31/18 % of Fund s Net Assets as at 11//17 Canada United States of America Netherlands 1.9. Japan Bermuda 1.1. Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) (2.5) (.5) Top Issuers % of Fund s Net Assets 1. Canadian Pacific Railway Ltd Canadian Natural Resources Ltd Suncor Energy, Inc EOG Resources, Inc Cenovus Energy, Inc Etsy, Inc Microsoft Corp Cash and Cash Equivalents Agnico Eagle Mines Ltd Automatic Data Processing, Inc Shopify, Inc First Quantum Minerals Ltd Canadian National Railway Co Crescent Point Energy Corp West Fraser Timber Co. Ltd Twitter, Inc Fairfax India Holdings Corp The Walt Disney Co Mylan NV 1.9. Taylor Morrison Home Corp Canada Goose Holdings, Inc BRP, Inc Norbord, Inc United Parcel Service, Inc Raging River Exploration, Inc. 1.6 Total Fund Net Assets $666,127, 69.2 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 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 23