Fidelity Canadian Growth Company Fund

Transcription

1 Fidelity Canadian Growth Company Fund Annual Management Report of Fund Performance June 3,

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 June 3, Fidelity Canadian Growth Company Fund 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 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 Canadian Growth Company Fund (Fund) aims to achieve long-term capital growth by investing primarily in equity securities of Canadian companies. Strategies: When buying and selling securities for the 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. The Fund may invest in small, medium and large companies, but tends to focus on medium to large companies. It may invest up to approximately 49% of its assets in foreign securities, and may hold cash and fixedincome securities. Risk The risks associated with investing in this Fund remain as discussed in the prospectus. Any changes to the Fund over the period have not affected its overall level of risk. The Fund is suitable for long-term investors who want to gain exposure to Canadian and foreign equities and can handle the volatility of returns generally associated with equity investments. To invest in this Fund, 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 Canadian Growth Company Fund, Series B, returned 11.7%, after fees and expenses, for the one-year period ended June 3,. The net returns of the other series of this Fund 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 11.% (in Canadian dollar terms). Market overview: During the first half of the review period, Canadian equities rose on the strength of banking and oil and gas stocks. Canadian bank share prices rose, largely on the basis of continued positive investor sentiment, including a spillover effect from strength in U.S. financial stocks, which rallied after the recent U.S. presidential election. Oil prices rose during the first half of the period, following the agreement of the Organization of the Petroleum Exporting Countries (OPEC) to reduce crude output. However, during the second half of the review period, investors concerns about depressed oil prices, rising household debt and risks of a correction in the housing market weighed on Canadian equities. The Bank of Canada maintained its overnight rate target at.5% at its May meeting, highlighting the ongoing competitiveness challenges for exporters and subdued wage growth. Factors affecting performance: The Fund s benchmark returned 13.3% for the period under review. The Fund s specific blended benchmark is a combination of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (3.%). The Fund underperformed its benchmark after fees and expenses, but outperformed before fees and expenses, primarily due to exposure to certain stocks in the information technology sector. In the sector, investments in U.S.-based semiconductor companies, Advanced Micro Devices and Nvidia, Canada-based software and services firm, Shopify, U.S.-based software and services firm, Take-Two Interactive Software, credit card processing company, Square, and supply chain solutions provider, Kinaxis, contributed to relative returns. At the end of the review period, the Fund had no exposure to Nvidia. In addition, a lower-than-benchmark exposure to the energy sector also contributed to relative returns. In the sector, a lack of exposure to integrated oil and gas and oil and gas storage and transportation companies contributed to relative returns. Among other sectors, an investment in Canada-based integrated wood products company, West Fraser Timber, contributed to relative returns. In contrast, exposure to certain stocks in the materials and industrials sectors detracted from relative returns. In the materials sector, exposures to gold mining stocks such as Detour Gold and Tahoe Resources and to copper mining firm, First Quantum Minerals, detracted from relative returns. In the industrials sector, an investment in a Canada-based hydrovac excavation company, Badger Daylighting, detracted from relative returns. Among other sectors, having lower-than-benchmark exposures to Toronto-Dominion Bank and technology hardware firm, Apple, as well as investments in American pharmaceutical company, Bristol-Myers Squibb, and Canada-based media firm, Yellow Pages, 1

4 Fidelity Canadian Growth Company Fund Management Discussion of Fund Performance continued detracted from relative returns. At the end of the review period, the Fund had no exposure to Toronto-Dominion Bank, Bristol-Myers Squibb or Yellow Pages. Positioning changes: During the review period, the portfolio manager increased the Fund s exposure to the information technology and telecommunication services sectors. In the information technology sector, exposure was added to U.S.-based technology hardware and equipment firm, Apple, based on the quality of the company and optimism regarding its new iphone model, and U.S.-based software and services firm, Square, which is showing continued growth and improved fundamentals. The portfolio manager also increased the Fund s investments in the telecommunication services sector by initiating positions in Rogers Communication and BCE, owing to their strong balance sheets and less economically sensitive business models. In contrast, exposure to the materials and energy sectors was decreased. In the materials sector, a position was closed in Canada-based silver mining company, Wheaton Precious Metals; the stock trended higher during the review period, and the portfolio manager was seeking to reduce exposure to more economically sensitive companies. A position in Canada-based chemicals firm, Potash Corporation of Saskatchewan, was sold as the portfolio manager felt that its fundamentals were not improving as rapidly as expected. In the energy sector, the Fund sold off its investments in Canada-based oil and gas companies such as Canadian Natural Resources and Raging River Exploration, on the expectation that the lower-oil-price environment would weigh on these companies in the long term. Recent Developments Portfolio manager, Mark Schmehl, continues to be positive on equity markets, but on the margin he has reduced the risk of the portfolio, believing that the market is not compensating for excess risk. He has emphasized this by swapping out some of the gold mining exposure for a gold exchange-traded fund. In general, Mr. Schmehl is more optimistic about U.S. equities than Canadian equities. He notes that some of the investment themes he had previously invested in, such as artificial intelligence and U.S. banks, have now become overcrowded, and sentiment may be subsiding. Overall, his investment approach remains focused on identifying positive change in company fundamentals and looking to add value through opportunities where business conditions are improving. At the end of the review period, the Fund had its largest absolute exposure to the information technology sector, followed by the consumer discretionary sector. The Fund diverged the most from its benchmark sector weightings by having more exposure to the information technology sector and lower exposures to the financials and energy sectors. In terms of country exposure, Canada represented the Fund s largest exposure, followed by the U.S. Independent Review Committee Effective February 28,, Helen M. Meyer retired from the Independent Review Committee and was replaced by James E. Cook as Chair. Also effective on that date, Frances Horodelski of Toronto, Ontario, became a member of the Independent Review Committee. 2

5 Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader group of companies collectively known as Fidelity Investments. Fidelity provides or arranges for the provision of all general management and administrative services required by the Fund in its day to day operations, bookkeeping, record keeping and other administrative services for the Fund. Fidelity is the portfolio adviser to the Fund and it provides investment advisory services to the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity (Canada) Asset Management ULC, to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $3,14, for the period ended June 3,. 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 $3,95, for the period ended June 3,. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Investments, including National Financial Services LLC, provided it determines that these affiliates trade execution abilities and costs are comparable to those of non affiliated, qualified brokerage firms, on an execution only basis. Commissions paid to brokerage firms that are affiliates of Fidelity Investments were $8, for the period ended June 3,. Fidelity receives standing instructions from the IRC in respect of policies and procedures governing best execution of transactions with affiliates, which includes brokers affiliated to Fidelity Investments, at least once per year. 3

6 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the period end of the years shown. This information is derived from the Fund s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund s annual or semi-annual financial statements. Fidelity Canadian Growth Company Fund Series A Periods ended June 3, Net assets, beginning of period B $ $ 5.7 $ $ $ Total revenue Total expenses (excluding distributions) (1.45) (1.4) (1.36) (1.12) (.81) Realized gains (losses) Unrealized gains (losses) 1.5 (1.71) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (2.) (2.8) (7.3) (.47) Return of capital Total distributions B,C (2.) (2.8) (7.3) (.47) Net assets, end of period B $ 52. $ $ 5.7 $ $ Net asset value (s) D $ 299,767 $ 187,317 $ 154,546 $ 121,375 $ 71,655 Securities outstanding D 5,746,119 3,831,393 3,86,939 2,58,965 1,97,312 Management expense ratio E,F 2.47% 2.47% 2.49% 2.52% 2.52% Management expense ratio before waivers or absorptions E,F 2.52% 2.53% 2.52% 2.52% 2.52% Trading expense ratio G.29%.42%.23%.36%.44% Portfolio turnover rate H 25.98% % 211.% 23.15% % Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Growth Company Fund Series B Periods ended June 3, Net assets, beginning of period B $ $ 5.69 $ 49.2 $ 38.4 $ Total revenue Total expenses (excluding distributions) (1.36) (1.32) (1.27) (1.3) (.75) Realized gains (losses) Unrealized gains (losses) 1.96 (2.19) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (2.33) (2.93) (7.22) (.57) Return of capital Total distributions B,C (2.33) (2.93) (7.22) (.57) Net assets, end of period B $ $ $ 5.69 $ 49.2 $ Net asset value (s) D $ 1,199,92 $ 1,39,182 $ 1,92,23 $ 959,337 $ 752,974 Securities outstanding D 22,711,873 21,7,337 21,539,415 19,562,865 19,793,861 Management expense ratio E,I 2.27% 2.27% 2.28% 2.29% 2.3% Management expense ratio before waivers or absorptions E,I 2.29% 2.3% 2.29% 2.29% 2.3% Trading expense ratio G.29%.42%.23%.36%.44% Portfolio turnover rate H 25.98% % 211.% 23.15% % Net asset value per security, end of period $ $ $ $ $

7 Fidelity Canadian Growth Company Fund Series F Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.83) (.84) (.78) (.59) (.42) Realized gains (losses) Unrealized gains (losses) 1.24 (.76) 2.44 (1.28) 2.9 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (3.27) (3.91) (8.7) (1.) Return of capital Total distributions B,C (3.27) (3.91) (8.7) (1.) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 238,533 $ 9,644 $ 48,486 $ 26,788 $ 9,89 Securities outstanding D 4,84,926 2,8, , , ,76 Management expense ratio E,F 1.12% 1.13% 1.13% 1.16% 1.16% Management expense ratio before waivers or absorptions E,F 1.14% 1.15% 1.16% 1.16% 1.16% Trading expense ratio G.29%.42%.23%.36%.44% Portfolio turnover rate H 25.98% % 211.% 23.15% % Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Growth Company Fund Series F5 Periods ended June 3, J Net assets, beginning of period B $. Total revenue. Total expenses (excluding distributions) (.23) Realized gains (losses) 1.37 Unrealized gains (losses) (.84) Total increase (decrease) from operations B.5 From net investment income (excluding dividends) From dividends From capital gains (1.14) Return of capital (.8) Total distributions B,C (1.94) Net assets, end of period B $ 19.8 Net asset value (s) D $ 1,6 Securities outstanding D 6,942 Management expense ratio E,K 1.% Management expense ratio before waivers or absorptions E,K 1.13% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $

8 Financial Highlights continued Fidelity Canadian Growth Company Fund Series F8 Periods ended June 3, J Net assets, beginning of period B $. Total revenue.19 Total expenses (excluding distributions) (.21) Realized gains (losses).97 Unrealized gains (losses) (1.18) Total increase (decrease) from operations B (.23) From net investment income (excluding dividends) From dividends From capital gains (1.19) Return of capital (1.28) Total distributions B,C (2.47) Net assets, end of period B $ Net asset value (s) D $ 444 Securities outstanding D 23,43 Management expense ratio E,K 1.12% Management expense ratio before waivers or absorptions E,K 1.15% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $ Fidelity Canadian Growth Company Fund Series O Periods ended June 3, Net assets, beginning of period B $ 6.16 $ $ $ 46.5 $ Total revenue Total expenses (excluding distributions) (.22) (.28) (.18) Realized gains (losses) Unrealized gains (losses) 1.21 (1.36) 2.65 (1.25) 3.86 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (4.33) (4.99) (.29) (1.96) Return of capital Total distributions B,C (4.34) (4.99) (.29) (1.96) Net assets, end of period B $ $ 6.16 $ $ $ Net asset value (s) D $ 872,74 $ 254,936 $ 167,429 $ 96,729 $ 43,29 Securities outstanding D 13,587,615 4,24,379 2,7,138 1,613, ,31 Management expense ratio E.1%.1% % % % Management expense ratio before waivers or absorptions E.1%.1% % % % Trading expense ratio G.29%.42%.23%.36%.44% Portfolio turnover rate H 25.98% % 211.% 23.15% % Net asset value per security, end of period $ $ $ $ $

9 Fidelity Canadian Growth Company Fund Series T5 Periods ended June 3, L Net assets, beginning of period B $. Total revenue.13 Total expenses (excluding distributions) (.27) Realized gains (losses).74 Unrealized gains (losses) (.8) Total increase (decrease) from operations B (.) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) Total distributions B,C (.5) Net assets, end of period B $.16 Net asset value (s) D $ 643 Securities outstanding D 31,9 Management expense ratio E,M 2.5% Management expense ratio before waivers or absorptions E,M 2.56% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $.16 Fidelity Canadian Growth Company Fund Series T8 Periods ended June 3, L Net assets, beginning of period B $. Total revenue.12 Total expenses (excluding distributions) (.26) Realized gains (losses).62 Unrealized gains (losses) (.84) Total increase (decrease) from operations B (.36) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.8) Total distributions B,C (.8) Net assets, end of period B $ Net asset value (s) D $ 652 Securities outstanding D 32,873 Management expense ratio E,M 2.45% Management expense ratio before waivers or absorptions E,M 2.51% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $

10 Financial Highlights continued Fidelity Canadian Growth Company Fund Series S5 Periods ended June 3, L Net assets, beginning of period B $. Total revenue.12 Total expenses (excluding distributions) (.24) Realized gains (losses).57 Unrealized gains (losses) (.53) Total increase (decrease) from operations B (.8) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) Total distributions B,C (.5) Net assets, end of period B $.18 Net asset value (s) D $ 313 Securities outstanding D 15,516 Management expense ratio E,M 2.26% Management expense ratio before waivers or absorptions E,M 2.29% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $.1839 Fidelity Canadian Growth Company Fund Series S8 Periods ended June 3, L Net assets, beginning of period B $. Total revenue.12 Total expenses (excluding distributions) (.25) Realized gains (losses).8 Unrealized gains (losses) (.99) Total increase (decrease) from operations B (.32) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.8) Total distributions B,C (.8) Net assets, end of period B $ Net asset value (s) D $ 1,151 Securities outstanding D 58,227 Management expense ratio E,M 2.3% Management expense ratio before waivers or absorptions E,M 2.32% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $

11 Fidelity Canadian Growth Company Fund Series E1 Periods ended June 3, N Net assets, beginning of period B $ 11.2 $. Total revenue.14.6 Total expenses (excluding distributions) (.3) (.12) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.53) Return of capital Total distributions B,C (.53) Net assets, end of period B $ $ 11.2 Net asset value (s) D $ 173,282 $ 68,315 Securities outstanding D 14,757,752 6,197,599 Management expense ratio E,O 2.21% 2.22% Management expense ratio before waivers or absorptions E,O 2.24% 2.25% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series E2 Periods ended June 3, N Net assets, beginning of period B $ 11.2 $. Total revenue.14.6 Total expenses (excluding distributions) (.29) (.11) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.54) Return of capital Total distributions B,C (.54) Net assets, end of period B $ $ 11.2 Net asset value (s) D $ 35,493 $ 11,844 Securities outstanding D 3,17,93 1,83,259 Management expense ratio E,O 2.12% 2.12% Management expense ratio before waivers or absorptions E,O 2.15% 2.15% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Canadian Growth Company Fund Series E3 Periods ended June 3, N Net assets, beginning of period B $ 11.2 $. Total revenue.13.6 Total expenses (excluding distributions) (.27) (.11) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.55) Return of capital Total distributions B,C (.55) Net assets, end of period B $ $ 11.2 Net asset value (s) D $ 7,18 $ 4,556 Securities outstanding D 596, ,38 Management expense ratio E,O 2.1% 2.2% Management expense ratio before waivers or absorptions E,O 2.4% 2.5% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series E4 Periods ended June 3, N Net assets, beginning of period B $ 11.3 $. Total revenue.14.6 Total expenses (excluding distributions) (.27) (.) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.56) Return of capital Total distributions B,C (.56) Net assets, end of period B $ $ 11.3 Net asset value (s) D $ 5,34 $ 1,632 Securities outstanding D 453, , Management expense ratio E,O 1.94% 1.96% Management expense ratio before waivers or absorptions E,O 1.97% 1.99% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $ $

13 Fidelity Canadian Growth Company Fund Series E5 Periods ended June 3, N Net assets, beginning of period B $ 11.2 $. Total revenue.12.7 Total expenses (excluding distributions) (.24) (.11) Realized gains (losses) Unrealized gains (losses) (2.86).57 Total increase (decrease) from operations B (2.8) 1.5 From net investment income (excluding dividends) From dividends From capital gains (.55) Return of capital Total distributions B,C (.55) Net assets, end of period B $ $ 11.2 Net asset value (s) D $ 3,78 $ 34 Securities outstanding D 321,16 3,82 Management expense ratio E,O 2.3% 2.3% Management expense ratio before waivers or absorptions E,O 2.6% 2.7% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series P1 Periods ended June 3, P Net assets, beginning of period B $ 9.85 $. Total revenue.12.8 Total expenses (excluding distributions) (.14) (.8) Realized gains (losses) Unrealized gains (losses).9.51 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.59) (.7) Return of capital Total distributions B,C (.59) (.7) Net assets, end of period B $.51 $ 9.85 Net asset value (s) D $ 42,578 $ 8,37 Securities outstanding D 4,54, ,798 Management expense ratio E,Q 1.6% 1.8% Management expense ratio before waivers or absorptions E,Q 1.9% 1.9% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $.592 $

14 Financial Highlights continued Fidelity Canadian Growth Company Fund Series P1T5 Periods ended June 3, R Net assets, beginning of period B $. Total revenue.5 Total expenses (excluding distributions) (.4) Realized gains (losses).3 Unrealized gains (losses) (.5) Total increase (decrease) from operations B (.46) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.25) Total distributions B,C (.25) Net assets, end of period B $ Net asset value (s) D $ 587 Securities outstanding D 3,219 Management expense ratio E,S 1.6% Management expense ratio before waivers or absorptions E,S 1.8% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $ Fidelity Canadian Growth Company Fund Series P2 Periods ended June 3, P Net assets, beginning of period B $ 9.85 $. Total revenue.13.8 Total expenses (excluding distributions) (.14) (.8) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.6) (.7) Return of capital Total distributions B,C (.6) (.7) Net assets, end of period B $.51 $ 9.85 Net asset value (s) D $ 9,973 $ 1,61 Securities outstanding D 948,878 7,751 Management expense ratio E,Q 1.3% 1.4% Management expense ratio before waivers or absorptions E,Q 1.6% 1.5% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $.59 $

15 Fidelity Canadian Growth Company Fund Series P3 Periods ended June 3, P Net assets, beginning of period B $ 9.85 $. Total revenue.13.8 Total expenses (excluding distributions) (.13) (.8) Realized gains (losses) Unrealized gains (losses) (.13).26 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.6) (.7) Return of capital Total distributions B,C (.6) (.7) Net assets, end of period B $.51 $ 9.85 Net asset value (s) D $ 2,452 $ 119 Securities outstanding D 233,32 12,99 Management expense ratio E,Q.97%.98% Management expense ratio before waivers or absorptions E,Q.99%.99% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $.591 $ Fidelity Canadian Growth Company Fund Series P4 Periods ended June 3, P Net assets, beginning of period B $ 9.86 $. Total revenue.12.6 Total expenses (excluding distributions) (.13) (.4) Realized gains (losses).85 (.8) Unrealized gains (losses).5 (.53) Total increase (decrease) from operations B.89 (.59) From net investment income (excluding dividends) From dividends From capital gains (.61) (.7) Return of capital Total distributions B,C (.61) (.7) Net assets, end of period B $.52 $ 9.86 Net asset value (s) D $ 48 $ 1 Securities outstanding D 4,589 8 Management expense ratio E,Q.91%.9% Management expense ratio before waivers or absorptions E,Q.94%.91% Trading expense ratio G.29%.42% Portfolio turnover rate H 25.98% % Net asset value per security, end of period $.5163 $

16 Financial Highlights continued Fidelity Canadian Growth Company Fund Series P5 Periods ended June 3, T Net assets, beginning of period B $. Total revenue.6 Total expenses (excluding distributions) (.5) Realized gains (losses).38 Unrealized gains (losses) (.9) Total increase (decrease) from operations B.3 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $.31 Net asset value (s) D $ 4 Securities outstanding D 3,9 Management expense ratio E,U.87% Management expense ratio before waivers or absorptions E,U.9% Trading expense ratio G.29% Portfolio turnover rate H 25.98% Net asset value per security, end of period $

17 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 C D E F G H I 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. Distributions are presented based on management s best estimate of the tax character. 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, (:.1%, :.1%, 15: %, 14: %, 13: % ). 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. Effective October 1, 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. J For the period September 16, (commencement of sale of securities) to June 3,. K 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. L For the period January 6, (commencement of sale of securities) to June 3,. M 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. N For the period February 5, (commencement of sale of securities) to June 3,. O 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. P For the period December 4, 15 (commencement of sale of securities) to June 3,. 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 April 21, (commencement of sale of securities) to June 3,. S 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. T For the period January 26, (commencement of sale of securities) to June 3,. U Effective January 3,, 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. 15

18 Management and Advisory Fees Fidelity serves as manager and investment advisor of the Fund. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for the general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed % 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.% 85.73% 14.27% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 52.52% % 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 E2 1.8% 55.56% 44.44% Series E % 56.34% 43.66% Series E % 57.97% 42.3% Series E5 1.7% 58.82% 41.18% Series P1.825%.% Series P1T5.825%.% Series P2.8%.% Series P3.775%.% Series P4.725%.% Series P5.7%.% 16

19 Fidelity Canadian Growth Company Fund Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. Series A Series F Series B Commencement of Operations is September 16, Series F Series F - Commencement of Operations is September 16, Series O

20 Fidelity Canadian Growth Company Fund Past Performance continued Series T5 Series E Commencement of Operations is January 6, Commencement of Operations is February 5, Series T8 Series E Commencement of Operations is January 6, Commencement of Operations is February 5, Series S5 Series E Commencement of Operations is January 6, Commencement of Operations is February 5, Series S8 Series E Commencement of Operations is January 6, Commencement of Operations is February 5, 18

21 Series E5 Series P Commencement of Operations is February 5, Commencement of Operations is December 4, 15 Series P1 Series P Commencement of Operations is December 4, 15 Commencement of Operations is December 4, 15 Series P1T5 Series P Commencement of Operations is April 21, Commencement of Operations is January 26, Series P Commencement of Operations is December 4, 15 19

22 Fidelity Canadian Growth Company Fund Past Performance continued 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 S&P/ TSX Composite Index, and the Fund s blended benchmark, as described below. Past 1 year Past 3 years Past 5 years Past years Since Inception Average Annual Total Returns Fidelity Canadian Growth Company Fund Series A 11.5% 11.5% 18.3% 7.7% n/a Fidelity Canadian Growth Company Fund Series B 11.7% 11.7% 18.6% 7.9% n/a Fidelity Canadian Growth Company Fund Series F 13.% 13.%.% 9.1% n/a Fidelity Canadian Growth Company Fund Series O 14.3% 14.3% 21.3%.4% n/a Fidelity Canadian Growth Company Fund Series E1 11.8% n/a n/a n/a 16.1% Fidelity Canadian Growth Company Fund Series E2 11.9% n/a n/a n/a 16.1% Fidelity Canadian Growth Company Fund Series E3 12.% n/a n/a n/a 16.2% Fidelity Canadian Growth Company Fund Series E4 12.1% n/a n/a n/a 16.3% Fidelity Canadian Growth Company Fund Series E5 12.1% n/a n/a n/a 16.3% Fidelity Canadian Growth Company Fund Series P1 13.1% n/a n/a n/a 12.2% Fidelity Canadian Growth Company Fund Series P2 13.1% n/a n/a n/a 12.3% Fidelity Canadian Growth Company Fund Series P3 13.2% n/a n/a n/a 12.3% Fidelity Canadian Growth Company Fund Series P4 13.3% n/a n/a n/a 12.4% Fidelity Canadian Growth Company Fund Blend Index 13.3% 7.2% 12.2% 4.5% 11.4% S&P/TSX Composite Index 11.% 3.1% 8.7% 3.9% 11.8% The period used for the since inception Fidelity Canadian Growth Company Fund Blend Index and S&P/TSX Composite Index returns are based on Series P1 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 Operation section of this report. In the above table, we compare the Fund s annual compound returns with a broad index, the S&P/TSX Composite Index, and with a narrow index consisting of a combination of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (3.%). For the narrow index, the S&P/ TSX Completion Index was used from March 16, 7 to September 3, 8 and a blend of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (3.%) onwards. The narrow index was changed to its current blend concurrent with changes we made to the investment strategies of this fund which allow the portfolio manager greater flexibility to invest the fund in larger capitalization and non-domestic equity securities. For more information on the fund s investment objectives and strategies, please refer to the Fund s Simplified Prospectus. The S&P/TSX Composite Index is an index of stocks that are generally considered to represent the Canadian equity market. The S&P/TSX Capped Composite Index is the same as the S&P/TSX Composite Index except that it is adjusted quarterly so that no single stock has a relative weight in the index greater than.%. The S&P 5 Index is a widely recognized index of 5 U.S. common stocks of large and mid-capitalization companies. The S&P/TSX Completion Index is a market capitalization weighted, total return index comprising of all stocks within the S&P/ TSX Composite Index, excluding the members of the S&P/TSX 6 Index. It represents Small and Mid Cap within the S&P/TSX Composite Index. Each Series will have different returns because of differences in management fees and expenses.

23 Fidelity Canadian Growth Company Fund Summary of Investment Portfolio as at June 3, Sector Mix % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 Information Technology Consumer Discretionary Materials Telecommunication Services 8.4. Industrials Financials Energy Investment Companies Consumer Staples Health Care Others (Individually Less Than 1%). 3.6 Cash and Cash Equivalents Net Other Assets (Liabilities).1. Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. Market Capitalization % of Net Assets as at 6/3/17 % of Net Assets as at 6/3/16 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 Top 25 Issuers % of Fund s Net Assets 1. Rogers Communications, Inc Canadian National Railway Co SPDR Gold Trust ETF Amazon.com, Inc Shopify, Inc Apple, Inc BCE, Inc Square, Inc Fairfax India Holdings Corp Microsoft Corp Take-Two Interactive Software, Inc Dollarama, Inc Alimentation Couche-Tard, Inc EOG Resources, Inc Gildan Activewear, Inc Mobileye NV Alphabet, Inc West Fraser Timber Co. Ltd Restaurant Brands International, Inc Kinaxis, Inc Advanced Micro Devices, Inc Agnico Eagle Mines Ltd Norbord, Inc Pioneer Natural Resources Co Spin Master Corp. 1.8 Total Fund Net Assets $2,895,65, 69.4 % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 Canada United States of America Netherlands 2.4. Japan Cayman Islands 1.5. Germany 1.5. Others (Individually Less Than 1%)..7 Cash and Cash Equivalents Net Other Assets (Liabilities).1. The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 21

24 Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada Toronto, Ontario Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Visit us online at or call Fidelity Client Services at Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund or Fidelity U.S. Money Market Fund will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC E FICL-CGC-MRFPA-917