Fidelity Greater Canada Class of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Annual Management Report of Fund Performance November,

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

3 Annual Management Report of Fund Performance as at November, Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite, Toronto ON M5G 2N7 or by visiting our website at 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 Greater Canada Class ( the Fund ) aims to achieve long-term capital growth and seeks a return similar to that of Fidelity Greater Canada Fund ( the Underlying Fund ), by investing substantially all of its assets in units of the Underlying Fund. The Underlying Fund, which is also managed by Fidelity, aims to achieve long-term capital growth by investing primarily in equity securities of Canadian companies, as well as in foreign equity securities. Strategies: The Underlying Fund invests in companies that the portfolio manager believes offer the potential for growth over the long term. When buying and selling securities for the Underlying Fund, the portfolio manager examines each company s potential for success in light of its current financial condition, its industry position and economic and market conditions. The portfolio manager considers factors such as growth potential, earnings estimates and quality of management. The Underlying Fund may invest in small, medium and large companies. The Underlying Fund may invest up to approximately 49% of its assets in foreign securities, may hold cash and may invest in fixed-income securities. Risk The risks associated with investing in the Fund remain as discussed in the simplified prospectus. Any changes to the Underlying Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors who want to gain Canadian and foreign equity exposure in their portfolios and who can handle the volatility of returns generally associated with equity investments. To invest in the Fund, an investor should be able to accept a medium level of risk. The suitability of the investment has not changed from what has been disclosed in the simplified prospectus. Results of Operations Fidelity Greater Canada Class Series B returned 1.3% after fees and expenses for the one-year period ended November,. The net returns of the other series of this Fund are similar to those of Series B, except for differences that can be attributed to expense structures. The broad Canadian equity market, as represented by the S&P/TSX Composite Index, returned -2.5% for the period under review. Market overview: Canadian equities declined over the review period, weighed down by escalating trade tensions between the U.S. and China, volatile oil prices, and falling commodity prices. At a sector level, energy, materials and consumer discretionary stocks lagged most, while health care and information technology stocks gained. Limited progress on NAFTA renegotiations also prompted volatility during the period; however, a new deal was reached in September that alleviated concerns about an end to free trade in North America. The Canadian economy witnessed strong growth throughout the period, although the GDP growth rate declined slightly in the third quarter of to 2.% (annualized). The review period saw Canada s unemployment rate decline to levels not seen since before the 8 financial crisis. Factors affecting performance: The Fund s benchmark returned 1.% for the one-year period under review. The Fund s blended benchmark consists of a combination of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (.%). The Fund s outperformance of its benchmark was attributable primarily to the Underlying Fund s holdings in the consumer discretionary sector. In this sector, investments in U.S.-based fast food chain Chipotle Mexican Grill, and Canada-based manufacturer of winter clothing Canada Goose Holdings, were the largest contributors. Higher-than-benchmark exposure to the information technology sector also contributed to relative performance. In contrast, the Underlying Fund s investments in the health care and real estate sectors detracted from returns. In health care, exposure to U.S.-based generic pharmaceuticals manufacturer Akorn was the largest detractor. In real estate, exposure to retail real estate investment trust (REIT) GGP, and multinational diversified real estate company Brookfield Property Partners, detracted from relative returns. At the end of the review period, the Underlying Fund had no exposure to Akorn and GGP. Portfolio changes: During the period under review, the Underlying Fund s exposures to the communication services and utilities sectors increased. In the communication services sector, portfolio manager Hugo Lavallée initiated a position in Cogeco based on its attractive valuation and future growth potential. In the utilities sector, a new allocation to electric power transmission and distribution company Hydro One was introduced, as its valuation became more attractive following stock price declines before the Ontario provincial election. In contrast, exposure to information technology was reduced in the Underlying Fund. In particular, the portfolio manager closed positions in semiconductor companies Advanced Micro Devices and NXP Semiconductors to lock in gains after their stocks rallied during the review period. 1

4 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued At the end of the review period, the portfolio manager held approximately 24% of the Underlying Fund s net assets in cash and short-term bonds that the portfolio manager considers to be equivalent to cash. The portfolio manager believes that market valuations are high at the moment, and many stocks lack attractive risk/reward characteristics. The manager intends to deploy the cash as opportunities arise. As at November,, the Underlying Fund had its largest absolute exposure to the consumer staples sector, followed by the consumer discretionary sector. The Underlying Fund deviated most from its benchmark sector weightings by allocating more to the consumer staples and consumer discretionary sectors and less to the financials and industrials sectors. Recent Developments Portfolio manager Hugo Lavallée believes the business cycle is stretched and that market valuations in both Canada and the U.S. remain elevated. Mr. Lavallée has been taking a closer look at interest rate-sensitive companies; in his view, expectations of higher interest rates have created more compelling valuations for these companies. He also sees opportunities among gold royalty companies that have come under pressure due to falling gold prices during the period. Mr. Lavallée remains selective when investing in the Canadian small- to mid-cap market, evaluating investment opportunities stock by stock and waiting for a chance to actively deploy cash into investments that fit his criteria, or if segments of the market pull back. He continues to seek opportunities among securities that, in his view, have been significantly undervalued by the market but have the potential to outperform as their outlooks improve. 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 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 that facilitate communication (e.g., 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 $85, for the period ended November,. Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges). The Fund pays an annual rate, which is calculated on a tiered basis, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $2, 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 Greater Canada Class of the Fidelity Capital Structure Corp. Series A Periods ended November, Net assets, beginning of period B $ $ $ $ $ Total revenue.31 Total expenses (excluding distributions) (.4) (.39) (.37) (.37) (.33) Realized gains (losses) Unrealized gains (losses).24 (.54).84 (1.13).32 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.46) (.46) Return of capital Total distributions B,C (.46) (.46) Net assets, end of period B $ 16.8 $ $ $ $ Net asset value (s) D $ 5,151 $ 6,695 $ 7,882 $ 7,312 $ 8,951 Securities outstanding D 319,68 4,495 54,24 529,8 67,423 Management expense ratio E,F 2.55% 2.54% 2.55% 2.58% 2.63% Management expense ratio before waivers or absorptions E,F 2.6% 2.63% 2.64% 2.64% 2.64% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series B Periods ended November, Net assets, beginning of period B $ $ $ 14. $ $ Total revenue (.21) Total expenses (excluding distributions) (.37) (.36) (.33) (.35) (.31) Realized gains (losses) Unrealized gains (losses). (.47).24 (1.36).21 Total increase (decrease) from operations B (.6) 1.73 From net investment income (excluding dividends) From dividends From capital gains (.51) (.49) Return of capital Total distributions B,C (.51) (.49) Net assets, end of period B $ $ $ $ 14. $ Net asset value (s) D $,419 $ 12,9 $ 13,398 $ 25,87 $ 13,898 Securities outstanding D 634, ,64 834,173 1,779,949 1,24,543 Management expense ratio E,F 2.% 2.29% 2.29% 2.38% 2.41% Management expense ratio before waivers or absorptions E,F 2.34% 2.36% 2.35% 2.42% 2.42% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $

6 Financial Highlights continued Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series F Periods ended November, Net assets, beginning of period B $ $ $ $ 14.6 $ Total revenue (.13) Total expenses (excluding distributions) (.) (.) (.19) (.19) (.17) Realized gains (losses) Unrealized gains (losses).22 (.24).94 (1.24).45 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.) (.76) (.72) Return of capital Total distributions B,C (.) (.76) (.72) Net assets, end of period B $ $ $ $ $ 14.6 Net asset value (s) D $ 14,257 $ 12,45 $ 9,221 $,754 $ 6,282 Securities outstanding D 794, , ,812 7,825 4,46 Management expense ratio E,F 1.18% 1.17% 1.17% 1.18% 1.24% Management expense ratio before waivers or absorptions E,F 1.% 1.24% 1.24% 1.24% 1.25% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series F5 Periods ended November, Net assets, beginning of period B $ 26.4 $ $ $ 25.1 $ Total revenue (2.49) Total expenses (excluding distributions) (.) (.) (.29) (.31) (.29) Realized gains (losses) Unrealized gains (losses) (1.66) 1.32 Total increase (decrease) from operations B (1.7) 2. From net investment income (excluding dividends) From dividends (.1) From capital gains (.15) (1.17) (1.18) Return of capital (1.) (1.) (1.) (1.27) (1.) Total distributions B,C (1.45) (2.48) (2.48) (1.27) (1.) Net assets, end of period B $ $ 26.4 $ $ $ 25.1 Net asset value (s) D $ 959 $ 735 $ 71 $ 262 $ 33 Securities outstanding D 38,7 28,243 2,6,446 1,9 Management expense ratio E,F 1.19% 1.17% 1.18% 1.18% 1.21% Management expense ratio before waivers or absorptions E,F 1.21% 1.24% 1.24% 1.24% 1.22% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $

7 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series F8 Periods ended November, Net assets, beginning of period B $ $ 25. $ $ $ Total revenue (2.7) Total expenses (excluding distributions) (.27) (.28) (.28) (.29) (.31) Realized gains (losses) Unrealized gains (losses) (.86).56 Total increase (decrease) from operations B (.68) 3.33 From net investment income (excluding dividends) From dividends (.1) From capital gains (.14) (1.8) (1.11) Return of capital (1.6) (1.6) (1.6) (1.6) (1.6) Total distributions B,C (1.74) (2.69) (2.71) (1.6) (1.6) Net assets, end of period B $ $ $ 25. $ $ Net asset value (s) D $ 9 $ 1 $ 59 $ 97 $ 1 Securities outstanding D 4,852 4,663 2,34 4,96 56 Management expense ratio E,F 1.19% 1.17% 1.18% 1.16% 1.31% Management expense ratio before waivers or absorptions E,F 1.21% 1.24% 1.24% 1.22% 1.31% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series T5 Periods ended November, Net assets, beginning of period B $ $ $ 18.4 $ $ Total revenue 1.86 Total expenses (excluding distributions) (.45) (.47) (.48) (.51) (.48) Realized gains (losses) Unrealized gains (losses) (1.55).24 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.58) (.61) Return of capital (.96) (.96) (.96) (.96) (.88) Total distributions B,C (.96) (1.54) (1.57) (.96) (.88) Net assets, end of period B $ $ $ $ 18.4 $ Net asset value (s) D $ 163 $ 165 $ 142 $ 111 $ 219 Securities outstanding D 8,875 8,669 7,182 6,48 11,739 Management expense ratio E,F 2.45% 2.46% 2.54% 2.57% 2.62% Management expense ratio before waivers or absorptions E,F 2.51% 2.55% 2.63% 2.63% 2.63% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $

8 Financial Highlights continued Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series T8 Periods ended November, Net assets, beginning of period B $ 14.8 $ 15.7 $ $ 15.3 $ Total revenue.63 Total expenses (excluding distributions) (.34) (.37) (.37) (.41) (.39) Realized gains (losses) Unrealized gains (losses).13 (.5).8 (1.26). Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.44) (.47) Return of capital (1.19) (1.19) (1.19) (1.19) (1.19) Total distributions B,C (1.19) (1.63) (1.66) (1.19) (1.19) Net assets, end of period B $ 13.2 $ 14.8 $ 15.7 $ $ 15.3 Net asset value (s) D $ 1,458 $ 2,295 $ 3,385 $ 2,814 $ 5,173 Securities outstanding D 112,21 162, , ,88 344,153 Management expense ratio E,F 2.54% 2.54% 2.55% 2.58% 2.61% Management expense ratio before waivers or absorptions E,F 2.6% 2.63% 2.64% 2.64% 2.61% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series S5 Periods ended November, Net assets, beginning of period B $ $.29 $ $ 19.6 $ Total revenue (.32) Total expenses (excluding distributions) (.44) (.46) (.44) (.47) (.44) Realized gains (losses) Unrealized gains (losses).22 (.57) 1.69 (1.5).76 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.64) (.66) Return of capital (.99) (.99) (.99) (.98) (.88) Total distributions B,C (.99) (1.63) (1.65) (.98) (.88) Net assets, end of period B $ $ $.29 $ $ 19.6 Net asset value (s) D $ 199 $ 252 $ 6 $ 258 $ 186 Securities outstanding D,556 12,861 15,8 13,674 9,756 Management expense ratio E,F 2.32% 2.32% 2.33% 2.34% 2.39% Management expense ratio before waivers or absorptions E,F 2.36% 2.39% 2.39% 2.38% 2.39% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $.2931 $ $

9 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series S8 Periods ended November, Net assets, beginning of period B $ $ $ $ $ Total revenue (.6) Total expenses (excluding distributions) (.32) (.34) (.34) (.37) (.35) Realized gains (losses) Unrealized gains (losses).43 (.46) 1.58 (.59).77 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.49) (.52) Return of capital (1.) (1.) (1.) (1.) (1.) Total distributions B,C (1.) (1.69) (1.72) (1.) (1.) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 1,476 $ 1,158 $ 1,593 $ 848 $ 1,11 Securities outstanding D 1,483 8,48,532 57,55 66,37 Management expense ratio E,F 2.33% 2.33% 2.29% 2.31% 2.% Management expense ratio before waivers or absorptions E,F 2.37% 2.39% 2.35% 2.35% 2.31% Trading expense ratio G.24%.24%.39%.51%.66% Portfolio turnover rate H 13.9% 27.18% 16.94% 12.76% 18.89% Net asset value per security, end of period $ $ $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series E1 Periods ended November, I Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.27) (.27) (.21) Realized gains (losses) Unrealized gains (losses).24 (.37) 2.23 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.4) Return of capital Total distributions B,C (.4) Net assets, end of period B $ $ $ Net asset value (s) D $ 9,266 $ 9,9 $ 9,944 Securities outstanding D 733,61 738, ,238 Management expense ratio J,K 2.19% 2.% 2.26% Management expense ratio before waivers or absorptions J,K 2.23% 2.26% 2.32% Trading expense ratio G.24%.24%.39% Portfolio turnover rate H 13.9% 27.18% 16.94% Net asset value per security, end of period $ $ $

10 Financial Highlights continued Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series E1T5 Periods ended November, I Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.51) (.51) (.42) Realized gains (losses) Unrealized gains (losses) (.32) (.82) 4.75 Total increase (decrease) from operations B (.47) (.7) 4.57 From net investment income (excluding dividends) From dividends (.1) From capital gains (.75) Return of capital (1.14) (1.14) (.95) Total distributions B,C (1.14) (1.9) (.95) Net assets, end of period B $ $ $ Net asset value (s) D $ 11 $ 7 $ 148 Securities outstanding D 483 4,722 6,292 Management expense ratio J,K 2.32% 2.31% 2.31% Management expense ratio before waivers or absorptions J,K 2.37% 2.37% 2.37% Trading expense ratio G.24%.24%.39% Portfolio turnover rate H 13.9% 27.18% 16.94% Net asset value per security, end of period $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series E2 Periods ended November, I Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.26) (.26) (.21) Realized gains (losses) Unrealized gains (losses).29 (.43) 1.7 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.41) Return of capital Total distributions B,C (.41) Net assets, end of period B $ $ $ Net asset value (s) D $ 2,777 $ 2,449 $ 3,86 Securities outstanding D 219, ,48 251,398 Management expense ratio J,K 2.% 2.13% 2.18% Management expense ratio before waivers or absorptions J,K 2.14% 2.19% 2.24% Trading expense ratio G.24%.24%.39% Portfolio turnover rate H 13.9% 27.18% 16.94% Net asset value per security, end of period $ $ $

11 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series E2T5 Periods ended November, L Net assets, beginning of period B $.54 $. Total revenue Total expenses (excluding distributions) (.4) (.14) 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 (1.) (.42) Total distributions B,C (1.) (.42) Net assets, end of period B $ $.54 Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio M,N 1.98% 2.5% Management expense ratio before waivers or absorptions M,N 2.% 2.47% Trading expense ratio G.24%.24% Portfolio turnover rate H 13.9% 27.18% Net asset value per security, end of period $ $.5433 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series E3 Periods ended November, I Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.25) (.26) (.21) Realized gains (losses) Unrealized gains (losses).26 (1.6) 2.52 Total increase (decrease) from operations B. (.9) 2.41 From net investment income (excluding dividends) From dividends From capital gains (.41) Return of capital Total distributions B,C (.41) Net assets, end of period B $ $ $ Net asset value (s) D $ 3 $ 283 $ 879 Securities outstanding D 23,894 22,692 72,517 Management expense ratio J,K 2.3% 2.19% 2.19% Management expense ratio before waivers or absorptions J,K 2.7% 2.25% 2.25% Trading expense ratio G.24%.24%.39% Portfolio turnover rate H 13.9% 27.18% 16.94% Net asset value per security, end of period $ $ $

12 Financial Highlights continued Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series E3T5 Periods ended November, L Net assets, beginning of period B $.53 $. Total revenue Total expenses (excluding distributions) (.43) (.16) 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 (1.) (.42) Total distributions B,C (1.) (.42) Net assets, end of period B $ $.53 Net asset value (s) D $ 487 $ 54 Securities outstanding D 24,656 24,528 Management expense ratio M,N 2.19% 2.18% Management expense ratio before waivers or absorptions M,N 2.24% 2.25% Trading expense ratio G.24%.24% Portfolio turnover rate H 13.9% 27.18% Net asset value per security, end of period $ $.5329 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series E4 Periods ended November, O Net assets, beginning of period B $.58 $. Total revenue Total expenses (excluding distributions) (.22) (.4) Realized gains (losses).16.5 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 $.73 $.58 Net asset value (s) D $ 1,618 $ 1,312 Securities outstanding D 15, ,983 Management expense ratio M,P 2.14% 2.12% Management expense ratio before waivers or absorptions M,P 2.18% 2.19% Trading expense ratio G.24%.24% Portfolio turnover rate H 13.9% 27.18% Net asset value per security, end of period $.7331 $.5794

13 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P1 Periods ended November, Q Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.13) (.13) (.12) Realized gains (losses) Unrealized gains (losses).19 (.21) 1.54 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.8) (.51) (.48) Return of capital Total distributions B,C (.8) (.51) (.48) Net assets, end of period B $ $ $ Net asset value (s) D $ 8,92 $ 8,451 $ 5,563 Securities outstanding D 742, , ,527 Management expense ratio J,R 1.13% 1.11% 1.12% Management expense ratio before waivers or absorptions J,R 1.15% 1.18% 1.18% Trading expense ratio G.24%.24%.39% Portfolio turnover rate H 13.9% 27.18% 16.94% Net asset value per security, end of period $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P1T5 Periods ended November, S Net assets, beginning of period B $ $.2 $. Total revenue Total expenses (excluding distributions) (.21) (.21) (.4) Realized gains (losses) Unrealized gains (losses)..29. Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.12) (.88) Return of capital (.96) (.96) (.24) Total distributions B,C (1.8) (1.84) (.24) Net assets, end of period B $ $ $.2 Net asset value (s) D $ 1,56 $ 981 $ 185 Securities outstanding D 56,674 5,948 9,25 Management expense ratio J,T 1.13% 1.12% 1.13% Management expense ratio before waivers or absorptions J,T 1.15% 1.18% 1.18% Trading expense ratio G.24%.24%.39% Portfolio turnover rate H 13.9% 27.18% 16.94% Net asset value per security, end of period $ $ $

14 Financial Highlights continued Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P2 Periods ended November, Q Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.12) (.12) (.11) Realized gains (losses) Unrealized gains (losses). (.46) 2.47 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.8) (.52) (.48) Return of capital Total distributions B,C (.8) (.52) (.48) Net assets, end of period B $ $ $ Net asset value (s) D $ 2,66 $ 3,643 $ 3,59 Securities outstanding D 222,496 3,634 3,316 Management expense ratio J,R 1.7% 1.6% 1.6% Management expense ratio before waivers or absorptions J,R 1.9% 1.13% 1.13% Trading expense ratio G.24%.24%.39% Portfolio turnover rate H 13.9% 27.18% 16.94% Net asset value per security, end of period $ $ $ Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P2T5 Periods ended November, U Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.13) Realized gains (losses). Unrealized gains (losses) 2.25 Total increase (decrease) from operations B 2.32 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.67) Total distributions B,C (.67) Net assets, end of period B $.48 Net asset value (s) D $ 231 Securities outstanding D 11,297 Management expense ratio V,W 1.7% Management expense ratio before waivers or absorptions V,W 1.7% Trading expense ratio G.24% Portfolio turnover rate H 13.9% Net asset value per security, end of period $

15 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P3 Periods ended November, X Net assets, beginning of period B $.16 $. Total revenue Total expenses (excluding distributions) (.) (.6) Realized gains (losses).15. Unrealized gains (losses) (.35).35 Total increase (decrease) from operations B (.).39 From net investment income (excluding dividends) From dividends From capital gains (.8) Return of capital Total distributions B,C (.8) Net assets, end of period B $.35 $.16 Net asset value (s) D $ 58 $ 641 Securities outstanding D 49, 62,153 Management expense ratio M,Y 1.2% 1.% Management expense ratio before waivers or absorptions M,Y 1.4% 1.7% Trading expense ratio G.24%.24% Portfolio turnover rate H 13.9% 27.18% Net asset value per security, end of period $.3473 $.1648 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P3T5 Periods ended November, Z Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.7) Realized gains (losses).9 Unrealized gains (losses) (.11) Total increase (decrease) from operations B (.9) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.42) Total distributions B,C (.42) Net assets, end of period B $ Net asset value (s) D $ 1 Securities outstanding D 51 Management expense ratio V,AA 1.1% Management expense ratio before waivers or absorptions V,AA 1.2% Trading expense ratio G.24% Portfolio turnover rate H 13.9% Net asset value per security, end of period $

16 Financial Highlights continued Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P4 Periods ended November, U Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.6) Realized gains (losses).9 Unrealized gains (losses).74 Total increase (decrease) from operations B.77 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $.58 Net asset value (s) D $ 411 Securities outstanding D 38,86 Management expense ratio V,W.96% Management expense ratio before waivers or absorptions V,W.96% Trading expense ratio G.24% Portfolio turnover rate H 13.9% Net asset value per security, end of period $.5828 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Series P4T5 Periods ended November, Z Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.7) Realized gains (losses). Unrealized gains (losses) (.) Total increase (decrease) from operations B (.17) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.42) Total distributions B,C (.42) Net assets, end of period B $ Net asset value (s) D $ 438 Securities outstanding D 22,752 Management expense ratio V,AA.96% Management expense ratio before waivers or absorptions V,AA.96% Trading expense ratio G.24% Portfolio turnover rate H 13.9% 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, 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. 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, (:.1%, : %, : %, : %, : % ). F Effective November 1,, 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 February 5, (commencement of sale of securities) to November,. J 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%, : %, : %). K 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. L For the period July 14, (commencement of sale of securities) to November,. M 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%, : % ). N 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. O For the period September 22, (commencement of sale of securities) to November,. P 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. Q For the period December 4, (commencement of sale of securities) to November,. R Effective December 8,, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. S For the period September 16, (commencement of sale of securities) to November,. T 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. U For the period April, (commencement of sale of securities) to November,. V 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% ). W Effective April 24,, 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. X For the period April 21, (commencement of sale of securities) to November,. Y 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. Z For the period July, (commencement of sale of securities) to November,. AA Effective July 24,, 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 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.% 33.61% 66.39% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 26.67% 73.33% Series T8 2.% 21.99% 78.1% 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 P1.825%.% Series P1T5.825%.% Series P2.8%.% Series P2T5.8%.% Series P3.775%.% Series P3T5.775%.% Series P4.725%.% Series P4T5.725%.% 16

19 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. The performance data shown for the period occurring prior to the commencement of operations of a series P or E is that of the corresponding series F or F5 (for series P) or B or S5 (for series E). Series F, F5, B and S5 have higher combined management and administration fees than the applicable series P and E. Had a series P or E existed since the commencement of operations of series F, F5, B or S5, the returns of the applicable series P or E would have been higher. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. Series A Series F Series B Commencement of Operations is April 17, Series F Series F - Commencement of Operations is April 17, Series T

20 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Past Performance continued Series T8 Series E1T Series S5 Commencement of Operations is February 5, Series E Series S8 - Commencement of Operations is February 5, Series E2T Series E1 - Commencement of Operations is July 14, Series E Commencement of Operations is February 5, - Commencement of Operations is February 5, 18

21 Series E3T5 Series P Commencement of Operations is July 14, Series E4 Commencement of Operations is December 4, Series P2T Commencement of Operations is September 22, Series P1 Commencement of Operations is April, Series P Commencement of Operations is December 4, Commencement of Operations is April 21, Series P1T5 Series P3T Commencement of Operations is September 16, Commencement of Operations is July, 19

22 Fidelity Greater Canada Class of the Fidelity Capital Structure Corp. Past Performance continued Series P4 Series P4T Commencement of Operations is April, Commencement of Operations is July, Annual Compound Returns This table shows the Fund s historical annual compound total returns for the periods indicated with a broad-based index, the S&P/TSX Composite Index, and the Fund s benchmark, as described below. Average Annual Total Returns Series A 1.% 7.4% 7.9% 9.8% n/a Series B 1.3% 7.7% 8.2%.% n/a Series F 2.4% 8.9% 9.4% 11.2% n/a Series F5 2.4% 8.9% 9.5% n/a 11.2% Series F8 2.4% 8.9% 9.5% n/a 11.2% Series T5 1.1% 7.5% 8.% 9.7% n/a Series T8 1.% 7.4% 7.9% 9.7% n/a Series S5 1.3% 7.7% 8.2%.% n/a Series S8 1.3% 7.7% 8.2%.% n/a Series E1 1.4% 7.8% 8.2%.% n/a Series E1T5 1.2% 7.7% 8.2%.% n/a Series E2 1.5% 7.8% 8.3%.1% n/a Series E2T5 1.6% 7.8% 8.3%.1% n/a Series E3 1.6% 7.9% 8.3%.1% n/a Series E3T5 1.5% 7.8% 8.3%.% n/a Series E4 1.5% 7.8% 8.2%.% n/a Series P1 2.5% 9.% 9.5% 11.2% n/a Series P1T5 2.5% 8.9% 9.5% n/a 11.3% Series P2 2.6% 9.% 9.5% 11.3% n/a Series P2T5 2.5% 8.9% 9.5% n/a 11.3% Series P3 2.6% 9.% 9.5% 11.3% n/a Series P3T5 2.5% 8.9% 9.5% n/a 11.3% Series P4 2.6% 9.% 9.5% 11.2% n/a Series P4T5 2.5% 8.9% 9.5% n/a 11.3% Fidelity Greater Canada Class Blend Index 1.% 8.7% 8.8%.4%.8% S&P/TSX Composite Index (2.5)% 7.2% 5.6% 8.2% 7.5% A discussion of Fund performance can be found in the Results of Operations section of this report. The Fund s blended benchmark is a combination of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (.%). A combination of the S&P/TSX Capped Composite Index (7.%) and the MSCI World Index (.%) was used for the period from the Fund s inception to November, 8, and a combination of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (.%) has been used from December 1, 8 onwards. The narrow index was changed to its current blend to better reflect the investment focus of the Past 1 year Past 3 years Past 5 years Past years Since Inception

23 Fund, which tends to bias non-domestic equity investments toward U.S. issuers. For more information on the Fund s investment objective and strategies, please refer to the Fund s Simplified Prospectus. Each series of the Fund will have varying returns because of differences in management fees and expenses. 21

24 Fidelity Greater Canada Class 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 Consumer Staples Consumer Discretionary Information Technology Communication Services Financials Energy Utilities 3.8. Real Estate Materials Investment Companies Industrials Health Care Foreign Bonds Cash and Cash Equivalents Net Other Assets (Liabilities).3 (.7) 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. Geographic Mix % of Fund s Net Assets as at 11//18 % of Fund s Net Assets as at 11//17 Canada United States of America United Kingdom Israel Bermuda 1.1. Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities).3 (.7) Top Issuers % of Fund s Net Assets 1. Fidelity Canadian Money Market Investment Trust Series O U.S. Treasury Obligations * U.S. Treasury Bills * Alimentation Couche-Tard, Inc Metro, Inc Chipotle Mexican Grill, Inc Loblaw Companies Ltd Constellation Software, Inc Restaurant Brands International, Inc Frontdoor, Inc SPDR Gold Trust ETF Dollarama, Inc Cogeco Communications, Inc CGI Group, Inc PrairieSky Royalty Ltd Brookfield Property Partners LP Shaw Communications, Inc Allot Communications Ltd Imperial Tobacco Group PLC 1.6. MicroStrategy, Inc Fortis, Inc Rogers Communications, Inc Element AI George Weston Ltd Papa John s International, Inc. 1. * Bond Issuer Total Fund Net Assets $62,819, 74.2 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 22

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28 Fidelity Capital Structure Corp. 47 2nd Street S.W., Suite 8 Calgary, Alberta T2P 2Y3 Manager and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 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-GCA-CS-MRFPA-219