Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Annual Management Report of Fund Performance November,

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

3 Annual Management Report of Fund Performance as at November, Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite, Toronto ON M5G 2N7 or by visiting our website at 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 U.S. Equity Private Pool (Fund) aims to seek long-term capital appreciation. It seeks a return similar to that of Fidelity U.S. Equity Investment Trust (Underlying Fund), also managed by Fidelity, by investing substantially all of its assets in securities of the Underlying Fund. The Underlying Fund seeks long-term capital appreciation by investing primarily in U.S. large-cap equity securities. Strategies: The Underlying Fund aims to invest in sectors in approximately the same proportions as those sectors are represented in the S&P 5 Index. Members of a team of sector portfolio managers are assigned to each sector. They choose investments for their sector based on a thorough review of a number of factors, which may include each company s management, financial condition and potential for earnings growth over the long term, as well as any sustainable competitive advantage in their respective industries. The Underlying Fund s specific investments may or may not be included in the S&P 5 Index. If the investment is not classified under the Global Industry Classification Standard (GICS), the portfolio managers can decide which sector it belongs to. The portfolio managers regularly review target allocations and rebalance the allocations when necessary. The Underlying Fund may invest in small, medium and large companies. It may invest in all types of equity securities. It may also hold cash and invest in fixed-income securities. Risk The risks associated with investing in the Fund remain as discussed in the prospectus. The Fund is suitable for long-term investors who want to gain exposure to U.S. equity securities and can handle the volatility of returns associated with equity investments. Investors should also be able 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 U.S. Equity Private Pool, Series B, returned 3.8%, after fees and expenses, for the one-year period ended November,. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. U.S. equities, as represented by the S&P 5 Index, returned 9.6% in Canadian dollar terms during the review period. Market overview: The continued strength in economic data, coupled with healthy corporate earnings, supported gains in U.S. equities. A combination of corporate tax cuts announced earlier in the year contributed to strong quarterly earnings. In addition, the labour market has been strong, enforced by an additional 25, jobs in the U.S. in October, which exceeded consensus expectations. Ongoing trade tensions between the U.S. and China contributed to increased volatility in the markets. Information technology stocks gained through the year, but came under pressure toward the end of the period on concerns about increased regulatory scrutiny and weakening earnings growth outlook. The financials sector lagged due to concerns about higher funding costs and slower lending growth. Oil prices were volatile and fell sharply due to oversupply risks against the backdrop of a weakening global economic growth outlook. Factors affecting performance: The Fund underperformed its benchmark, the S&P 5 Index, primarily due to the Underlying Fund s investments in the food, beverage and tobacco industry. In this industry, an investment in meat processor and marketer Tyson Foods detracted from relative performance. Among other industries, holdings in flooring manufacturer Mohawk Industries, beauty company Coty and home fixtures and hardware manufacturer Fortune Brands Home & Security detracted from relative returns. In contrast, the Underlying Fund s exposure to certain stocks in the software and services and the capital goods industries contributed to relative returns. In the software and services industry, investments in cloud computing company Salesforce.com and computer software company Adobe contributed to relative performance. In the capital goods industry, a lower-thanbenchmark exposure to industrials conglomerate General Electric contributed to relative returns, as did an investment in aerospace company Boeing. At the end of the review period, the Underlying Fund had no exposure to General Electric. Positioning changes: During the review period, the Underlying Fund s sector exposures were kept relatively close to those of the benchmark. While the Underlying Fund is neutrally positioned at the sector level, the industry group allocations deviated from those of the benchmark as a by-product of the portfolio management team s stock selection process. During the review period, the Underlying Fund s exposures to the software and services industry and the health care equipment and services industry were increased. In the software and services industry, the portfolio manager initiated positions in computer software companies Microsoft and Oracle; he believes both companies are well managed, innovative and offer attractive earnings growth potential. In the health care equipment and services industry, the portfolio manager initiated a position in health care products and insurance services provider UnitedHealth Group, owing to its potentially attractive valuation and strong growth prospects. 1

4 Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued In contrast, the Underlying Fund s exposure to the semiconductors and semiconductor equipment industry decreased, after the portfolio manager exited positions in Broadcom and Micron Technology, having found better investment opportunities in other businesses. Recent Developments Portfolio manager Chandler Willett believes the U.S. economy is relatively strong and that the likelihood of a U.S. recession is low; steady job creation and robust consumer spending continue to support the economy as it shifts into the later part of the business cycle. Mr. Willett believes the slower pace of global growth and continued speculation about interest rate tightening could moderate the transition from mid- to late cycle. On a sector basis, he is optimistic that sources of higher relative returns can be found in the information technology and health care sectors, where the dispersion of returns is greater. Specifically, he finds topics such as artificial intelligence, 5G and driverless cars interesting and believes that this is the direction the market is going. Mr. Willett and his team remain consistent in their investment process, designed to deliver a cohesive portfolio that captures the team s best thinking. At the end of the review period, the information technology sector accounted for the largest absolute exposure for the Underlying Fund. At an industry level, the Underlying Fund deviated the most from the benchmark s weighting by having more exposure to the health care equipment and services industry group and less exposure to the pharmaceuticals, biotechnology and life sciences industry group. The predominant industry benchmark GICS (Global Industry Classification Standard) was adjusted after the close of business on September 28,, in the following ways: The Telecommunication Services sector was reconstituted and renamed as the Communication Services sector. The Media industry group moved from the Consumer Discretionary sector to the newly formed Communication Services sector, where it has been renamed Media & Entertainment. Internet companies which facilitate communication (i.e., search engines and social media) and gaming software companies moved from the Information Technology sector to the Communication Services sector. Online marketplaces for consumer goods and services moved from the Information Technology sector to the Consumer Discretionary sector. In light of the above changes, there is no impact on the Fund s objective and strategy. 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 $1,494, for the period ended November,. Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges). The Fund pays an annual rate based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $161, for the period ended November,. 2

5 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the period end of the years shown. This information is derived from the Fund s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund s annual or semi-annual financial statements. Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series B Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.56) (.51) (.51) (.53) (.42) Realized gains (losses) Unrealized gains (losses) (1.41) 2.15 (4.15) Total increase (decrease) from operations B (.32) From capital gains (2.58) (1.19) Return of capital Total distributions B,C (2.58) (1.19) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 35,292 $ 41,628 $ 42,792 $ 59,26 $ 46,7 Securities outstanding D 1,368,98 1,674,914 1,766,513 2,349,125 2,189,274 Management expense ratio E 2.19% 2.19% 2.% 2.% 2.% Management expense ratio before waivers or absorptions E 2.19% 2.19% 2.% 2.% 2.% Net asset value per security, end of period $ $ $ $ $ Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series F Net assets, beginning of period B $ 25. $ $ $ $ Total revenue Total expenses (excluding distributions) (.28) (.25) (.25) (.26) (.) Realized gains (losses) Unrealized gains (losses) (1.36) 2.33 (3.9) Total increase (decrease) from operations B From capital gains (.9) (2.89) (1.5) Return of capital Total distributions B,C (.9) (2.89) (1.5) Net assets, end of period B $ $ 25. $ $ $ Net asset value (s) D $ 35,769 $ 35,188 $ 31,713 $ 37,429 $ 24,757 Securities outstanding D 1,363,234 1,399,127 1,291,374 1,474,987 1,158,84 Management expense ratio E 1.8% 1.8% 1.7% 1.8% 1.8% Management expense ratio before waivers or absorptions E 1.8% 1.8% 1.7% 1.8% 1.8% Net asset value per security, end of period $ 26. $ $ $ $

6 Financial Highlights continued Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series F5 Net assets, beginning of period B $ $ $ $ $ 28.3 Total revenue Total expenses (excluding distributions) (.36) (.34) (.36) (.39) (.33) Realized gains (losses) Unrealized gains (losses) (2.56) 3.6 (3.9) Total increase (decrease) from operations B From capital gains (.13) (4.11) (2.26) Return of capital (1.95) (1.95) (1.91) (1.44) (1.41) Total distributions B,C (2.8) (6.6) (4.17) (1.44) (1.41) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 6,842 $ 8,683 $ 4,5 $ 2,836 $ 1,726 Securities outstanding D 6, , ,582 73,756 51,631 Management expense ratio E 1.7% 1.6% 1.5% 1.5% 1.7% Management expense ratio before waivers or absorptions E 1.7% 1.6% 1.5% 1.5% 1.7% Net asset value per security, end of period $ $ $ $ $ Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series F8 Net assets, beginning of period B $ $ $ 32.4 $ $ Total revenue Total expenses (excluding distributions) (.28) (.28) (.31) (.34) (.31) Realized gains (losses) Unrealized gains (losses) (.76) 1.69 (7.44) Total increase (decrease) from operations B (1.33) From capital gains (.) (3.36) (1.87) Return of capital (2.2) (2.2) (2.2) (2.2) (1.97) Total distributions B,C (2.12) (5.38) (3.9) (2.2) (1.97) Net assets, end of period B $ $ $ $ 32.4 $ Net asset value (s) D $ 1,944 $ 1,97 $ 1,964 $ 2,825 $ 2,288 Securities outstanding D 73,87 72,576 68,51 88,176 8,37 Management expense ratio E 1.3% 1.6% 1.8% 1.7% 1.7% Management expense ratio before waivers or absorptions E 1.3% 1.6% 1.8% 1.7% 1.7% Net asset value per security, end of period $ $ $ $ $

7 Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series I Net assets, beginning of period B $ $ $ $.98 $ 17.5 Total revenue Total expenses (excluding distributions) (.56) (.55) (.57) (.59) (.47) Realized gains (losses) Unrealized gains (losses) (1.28) 2.22 (3.65) Total increase (decrease) from operations B (.) From capital gains (2.46) (1.) Return of capital Total distributions B,C (2.46) (1.) Net assets, end of period B $ $ $ $ $.98 Net asset value (s) D $ 17,112 $ 17,411 $ 18,747 $ 24,8 $ 18,821 Securities outstanding D 676,46 7, , , ,82 Management expense ratio E 2.21% 2.42% 2.5% 2.49% 2.51% Management expense ratio before waivers or absorptions E 2.21% 2.42% 2.5% 2.49% 2.51% Net asset value per security, end of period $ $ $ $ $.981 Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series I5 Net assets, beginning of period B $ $ 32. $ $ $ 26.7 Total revenue Total expenses (excluding distributions) (.68) (.74) (.8) (.86) (.69) Realized gains (losses) Unrealized gains (losses) (1.66) 3.68 (4.37) Total increase (decrease) from operations B From capital gains (3.33) (1.57) Return of capital (1.8) (1.8) (1.77) (1.37) (1.34) Total distributions B,C (1.8) (5.13) (3.34) (1.37) (1.34) Net assets, end of period B $.64 $ $ 32. $ $ Net asset value (s) D $ 1,633 $ 1,55 $ 4, $ 4,651 $ 3,835 Securities outstanding D 53,1 48, ,863 1, ,192 Management expense ratio E 2.16% 2.43% 2.5% 2.49% 2.43% Management expense ratio before waivers or absorptions E 2.16% 2.43% 2.5% 2.49% 2.43% Net asset value per security, end of period $.64 $ $ $ $

8 Financial Highlights continued Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series I8 Net assets, beginning of period B $ 24.6 $ $ $ $ Total revenue Total expenses (excluding distributions) (.53) (.57) (.64) (.7) (.59) Realized gains (losses) Unrealized gains (losses) (1.27) 2.24 (4.28) Total increase (decrease) from operations B (.28) From capital gains (2.6) (1.25) Return of capital (1.85) (1.85) (1.85) (1.85) (1.8) Total distributions B,C (1.85) (4.45) (3.9) (1.85) (1.8) Net assets, end of period B $ 23. $ 24.6 $ $ $ Net asset value (s) D $ 1,3 $ 1, $ 1,95 $ 1,58 $ 1,477 Securities outstanding D 57,162 49,885 43,116 53,155 57,4 Management expense ratio E 2.23% 2.44% 2.51% 2.51% 2.5% Management expense ratio before waivers or absorptions E 2.23% 2.44% 2.51% 2.51% 2.5% Net asset value per security, end of period $ $ $ $ $ Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series S5 Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.7) (.67) (.72) (.78) (.64) Realized gains (losses) Unrealized gains (losses) (1.57) 3.3 (3.59) Total increase (decrease) from operations B From capital gains (3.48) (1.69) Return of capital (1.83) (1.83) (1.79) (1.38) (1.35) Total distributions B,C (1.83) (5.31) (3.49) (1.38) (1.35) Net assets, end of period B $ 31.8 $ $ $ $ Net asset value (s) D $ 2,811 $ 3,395 $ 3,148 $ 2,743 $ 2,573 Securities outstanding D 9,512 7,52 95,735 75,953 8,933 Management expense ratio E 2.19% 2.18% 2.21% 2.23% 2.23% Management expense ratio before waivers or absorptions E 2.19% 2.18% 2.21% 2.23% 2.23% Net asset value per security, end of period $ $ $ $ $

9 Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Series S8 Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.51) (.52) (.58) (.63) (.53) Realized gains (losses) Unrealized gains (losses) (1.27) 1.63 (6.44) Total increase (decrease) from operations B (1.) From capital gains (2.73) (1.36) Return of capital (1.87) (1.87) (1.87) (1.87) (1.83) Total distributions B,C (1.87) (4.6) (3.23) (1.87) (1.83) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 445 $ 467 $ 365 $ 88 $ 314 Securities outstanding D 18,863 19,6 14,74 27,914 11,986 Management expense ratio E 2.% 2.% 2.22% 2.% 2.% Management expense ratio before waivers or absorptions E 2.% 2.% 2.22% 2.% 2.% Net asset value per security, end of period $ $ $ $ $

10 Financial Highlights continued Financial Highlights Footnotes A B C D E F G This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, follow International Financial Reporting Standards (IFRS) and periods prior to January 1, follow Canadian Generally Accepted Accounting Principles (Canadian GAAP). The net assets attributable to securityholders per security presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. An explanation of these differences can be found in the notes to financial statements. For reporting periods ending after January 1, per security comparative figures (except for net asset value per security, end of period) have been conformed to the current rounding presentation of two decimal places. As a result, reporting periods ending prior to January 1, may not foot due to this rounding change. Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of securities outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per security. Distributions were paid in cash or reinvested in additional securities of the Fund, or both, and excludes any applicable distributions of management fee reduction to securityholders. This information is provided as at period end of the year shown. Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset values during the period, including the Fund s pro-rata share of estimated expenses incurred in any underlying investment fund, if applicable. 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. 8

11 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 B 1.8% 55.56% 44.44% Series F.8%.% Series F5.8%.% Series F8.8%.% Series I 1.8% 55.56% 44.44% Series I5 1.8% 55.56% 44.44% Series I8 1.8% 55.56% 44.44% Series S5 1.8% 55.56% 44.44% Series S8 1.8% 55.56% 44.44% 9

12 Fidelity U.S. Equity Private Pool 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. 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 B Series F Series F Commencement of Operations is October 5, Series I Commencement of Operations is October 5, - Series F5 Series I Commencement of Operations is October 5,

13 Series I8 Series S Series S Annual Compound Returns This table shows the Fund s historical annual compound total returns for the periods indicated, compared with the Fund s benchmark, the S&P 5 Index, as described below. Average Annual Total Returns Series B 3.8% 6.3% 11.9% 11.3% n/a Series F 4.9% 7.5% 13.2% n/a 13.4% Series F5 4.9% 7.5% 13.2% n/a 13.5% Series F8 5.% 7.5% 13.2% n/a 13.5% Series I 3.7% 6.1% 11.6% 11.1% n/a Series I5 3.8% 6.2% 11.7% 11.1% n/a Series I8 3.7% 6.1% 11.6% 11.% n/a Series S5 3.8% 6.3% 11.9% 11.3% n/a Series S8 3.8% 6.3% 11.9% 11.3% n/a S&P 5 Index 9.6% 12.1% 16.3% 15.1% 16.2% The period used for the since inception S&P 5 Index returns are based on Series F which has been in existence the longest compared to all Series with less than years of operations. A discussion of the performance of the Fund can be found in the Results of Operations section of this report. The S&P 5 Index is a widely recognized index of 5 U.S. common stocks of large- and mid-capitalization companies. Each Series will have different returns because of differences in management fees and expenses. Past 1 year Past 3 years Past 5 years Past years Since Inception 11

14 Fidelity U.S. Equity Private Pool of the Fidelity Capital Structure Corp. Summary of Investment Portfolio as at November, Sector Mix % of Fund s Net Assets as at 11//18 % of Fund s Net Assets as at 11//17 Information Technology Health Care Financials Consumer Discretionary Communication Services Industrials 9.1. Consumer Staples Energy Utilities Real Estate Materials Cash and Cash Equivalents Net Other Assets (Liabilities).2. Market Capitalization % of Fund s Net Assets as at 11//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. Top Issuers % of Fund s Net Assets 1. Microsoft Corp Amazon.com, Inc UnitedHealth Group, Inc Alphabet, Inc Apple, Inc Danaher Corp Becton, Dickinson & Co Visa, Inc JPMorgan Chase & Co The Boeing Co AstraZeneca PLC Adobe, Inc Fidelity U.S. Money Market Investment Trust Series O Salesforce.com, Inc Wells Fargo & Co Chevron Corp Phillips 66 Co Entergy Corp Fidelity National Information Services, Inc Pinnacle West Capital Corp The Walt Disney Co Facebook, Inc Citigroup, Inc Humana, Inc Oracle Corp Total Fund Net Assets $3,178, 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 12

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16 Fidelity Capital Structure Corp. 7 2nd Street S.W., Suite 8 Calgary, Alberta T2P 2Y3 Manager and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada Toronto, Ontario Visit us online at or call Fidelity Client Services at Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund, Fidelity U.S. Money Market Fund or Fidelity U.S. Money Market Investment Trust will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC E FICL-UEP-CS-MRFPA-219