Fidelity Global Growth Portfolio

Transcription

1 Fidelity Global Growth Portfolio 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 Global Growth Portfolio 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 Objectives: Fidelity Global Growth Portfolio (Fund) aims to achieve high total investment return. The Fund is geared toward capital growth. It invests primarily in underlying funds. These underlying funds will generally invest in global equity securities and/or fixed-income securities. Strategies: Fidelity Global Growth Portfolio uses an asset allocation strategy and invests primarily in underlying funds, including other Fidelity Funds and exchange-traded funds (ETFs). The Fund is managed in accordance with its targeted mix of assets, which includes underlying funds that generally invest in global equity and/ or fixed-income securities. The Fund may invest in underlying funds that invest in any kind of equity or fixed-income security. This includes high-yield securities and other lower-quality debt securities. The Fund managers can decide which asset class a fund or security belongs to based on its investment characteristics. The Fund managers may also invest the Fund s assets in underlying funds that invest in other securities that don t fall within these classes. The Fund managers may change the funds invested in, or the percentage of the Fund s assets invested in a particular fund, at any time. The Fund s neutral mix is 85% equity securities and 15% fixed-income securities. Depending on market conditions, the Fund managers may vary the Fund s asset mix by up to +/-15% from the neutral mix if they believe this will produce the best overall return. The Fund may hold cash. The Fund may also invest a portion of its assets in securities of ETFs. Underlying Fidelity Funds may invest in securities of other funds, including ETFs. 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 the overall level of risk of the Fund. The Fund is suitable for long-term investors who want the convenience of a diversified portfolio in a single product. To invest in this Fund, they 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 prospectus. Results of Operations Fidelity Global Growth Portfolio, Series B, returned 9.7% for the one-year period ending June 3,, after fees and expenses. The net returns of the other series are similar to those of Series B, except for differences attributable to expense structures. By way of comparison, the MSCI World Index, broadly representative of developed world equities, returned 18.2% (in Canadian dollar terms), while global investment-grade bonds, as measured by the Bloomberg Barclays Global Aggregate Bond Index, returned -2.2% (in Canadian dollar terms) during the same period. Market overview: Global equities registered positive returns during the review period, due in larger part to the continued low-interest-rate environment around the world. European markets outperformed other regions, with strong economic data boosting investor sentiment. Markets were also supported by the election of pro-euro candidates in France and the Netherlands. U.S. markets registered strong performance, driven by positive economic data and optimism regarding the proposed policies of the new U.S. administration. Canadian markets lagged global markets, as investors were concerned about low oil prices, rising household debt, and the risk of a correction in the housing market. In Canadian fixed income, corporate bonds generally outperformed government bonds; positive economic data from both the U.S. and Canada provided a positive backdrop for relatively riskier assets. Short-dated U.S. Treasuries posted losses as yields rose after the U.S. Federal Reserve (the Fed) increased interest rates again in June by.25%, to 1.% 1.25%; it was the central bank s second rate increase in. Yields on longer-dated U.S. Treasuries fell as inflation expectations weakened during the second quarter of. In Canada, the Bank of Canada kept monetary policy unchanged but became much more hawkish towards the end of the quarter in response to strengthening economic data. Global investment-grade bonds, as represented by the Bloomberg Barclays Global Aggregate Bond Index, returned -2.2% for the one-year period ended June 3,. The Fed recently commented on a pickup of economic growth and improvement in the labour market, and stated that the 1

4 Fidelity Global Growth Portfolio Management Discussion of Fund Performance continued low-interest-rate policy had done its job. Central banks in Europe, Japan and around the world maintained their monetary stimulus programs, which provided some support to the bond markets. China s policy makers also became increasingly aggressive in their efforts to support the economy through fiscal policy. The demand for U.S. fixed-income assets strengthened following decreases in sovereign yields in Europe and Japan. Demand for emerging markets bonds also increased, due to attractive valuations, despite being relatively riskier than investment-grade bonds. Factors affecting performance: The Fund s benchmark returned 13.7% for the period under review. The Fund s benchmark is composed of 3.% S&P/TSX Capped Composite Index, 55.% MSCI ACWI (All Country World Index) ex Canada Index,.% Bloomberg Barclays Global Aggregate Bond Index and 5.% FTSE TMX Canada Universe Bond Index. The Fund underperformed its benchmark after fees and expenses. Exposure to certain stocks in Canadian equities detracted from relative performance. The Fund s lower-than-benchmark exposure to U.S. equities also detracted from relative performance. Meanwhile, the Fund s holdings in emerging market equities contributed to relative performance. In the fixed-income segment, the Fund s allocation to global investment-grade bonds detracted from relative performance, while holdings in Canadian investment-grade bonds contributed to relative performance. Portfolio changes: During the review period, the portfolio managers increased exposure to global and international equities, having found attractive investment opportunities. In contrast, exposure to Canadian equities was reduced, on the basis of potential economic risks; similarly, exposure to U.S. equities was reduced, on the basis of relatively expensive valuations compared with other global markets, as well as reduced growth potential. Among fixed-income positions, exposure was initiated to Canadian short-term bonds, to actively manage interest rate risk in the portfolio, while exposures to Canadian and U.S. investment-grade bond funds were reduced; the managers found better opportunities in other segments of fixed income. At the end of the review period, the Fund had no exposure to U.S. investment-grade bonds. At the end of the review period, the Fund had its highest exposure to foreign equities, followed by Canadian equities. The Fund is one of a suite of eight multi-asset class portfolios designed to offer investors a diversified investment option in a single product. The Fund s targeted neutral mix is 4% fixed-income investments and 6% equity investments. The portfolio managers are responsible for portfolio design, construction and ongoing monitoring and management. The Fund is monitored and actively managed on a daily basis. Derivatives disclosure: During the period under review, the Fund engaged in equity futures contracts in a manner consistent with its investment objectives and strategies. U.S. equity futures positions were used to execute investment strategies that allowed the Fund to effectively change its exposure to U.S. equities without the need to buy into or sell out of strategic positions. These futures positions, in aggregate, accounted for approximately 2.3% of the Fund s net assets at the end of the review period. In general, the futures contracted tended to be more liquid and less expensive than purchasing equity securities directly. However, security selection continued to be the primary driver of performance, and these derivatives had no material impact on performance. Recent Developments During the review period, portfolio managers Geoff Stein and David Wolf brought down the overall equity allocation to a neutral mix, while diversifying exposures among international equities. The portfolio managers believe inflation shocks are becoming more of a risk. They may threaten the valuation of financial assets and the traditional negative correlation between stock and bond returns. To cope with this new market development, the portfolio managers have tilted equity components away from bond proxies while shifting the overall portfolio into real assets such as inflation-linked bonds and commodities. In addition, they are actively managing fixed-income duration to reduce the portfolio s vulnerability to rising interest rates. 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 FMR Co., Inc., 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 $8,916, 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 $1,8, 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 less than $5 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 Global Growth Portfolio Series A Periods ended June 3, Net assets, beginning of period B $ $ 13.2 $ 11.6 $.45 $ 9.11 Total revenue Total expenses (excluding distributions) (.34) (.32) (.31) (.28) (.25) Realized gains (losses) Unrealized gains (losses).81 (.36) Total increase (decrease) from operations B From net investment income (excluding dividends) (.8) (.6) From dividends From capital gains (.6) (.11) (.2) (.89) Return of capital Total distributions B,C (.6) (.19) (.8) (.89) Net assets, end of period B $ 14.8 $ $ 13.2 $ 11.6 $.45 Net asset value (s) D $ 152,86 $ 137,872 $ 4,962 $ 77,269 $ 38,487 Securities outstanding D,87,239,675,7 8,69,322 6,658,375 3,681,579 Management expense ratio E,F 2.5% 2.48% 2.48% 2.5% 2.5% Management expense ratio before waivers or absorptions E,F 2.51% 2.49% 2.49% 2.5% 2.5% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $.454 Fidelity Global Growth Portfolio Series B Periods ended June 3, Net assets, beginning of period B $ 13.8 $ $ $.58 $ 9.19 Total revenue Total expenses (excluding distributions) (.31) (.29) (.28) (.26) (.23) Realized gains (losses) Unrealized gains (losses).78 (.36) Total increase (decrease) from operations B From net investment income (excluding dividends) (.9) (.7) From dividends From capital gains (.9) (.13) (.3) (.92) Return of capital Total distributions B,C (.9) (.22) (.) (.92) Net assets, end of period B $ $ 13.8 $ $ $.58 Net asset value (s) D $ 35,335 $ 228,52 $ 159,397 $ 97,512 $ 44,94 Securities outstanding D 21,449,54 17,484,798 12,113,318 8,33,36 4,244,45 Management expense ratio E,I 2.28% 2.28% 2.27% 2.28% 2.28% Management expense ratio before waivers or absorptions E,I 2.28% 2.28% 2.28% 2.28% 2.28% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $.586 4

7 Fidelity Global Growth Portfolio Series F Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ 9.64 Total revenue Total expenses (excluding distributions) (.17) (.16) (.15) (.14) (.12) Realized gains (losses) Unrealized gains (losses).74 (.17) Total increase (decrease) from operations B From net investment income (excluding dividends) (.17) (.19) From dividends From capital gains (.25) (.24) (.7) (1.12) Return of capital Total distributions B,C (.25) (.4) (.26) (1.12) Net assets, end of period B $ 15.8 $ $ $ $ Net asset value (s) D $ 44,68 $ 27,689 $ 12,864 $ 4,812 $ 1,296 Securities outstanding D 2,969,793 2,, , ,55 115,556 Management expense ratio E,F 1.17% 1.15% 1.13% 1.19% 1.18% Management expense ratio before waivers or absorptions E,F 1.17% 1.17% 1.19% 1.19% 1.18% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Growth Portfolio Series F5 Periods ended June 3, Net assets, beginning of period B $ 18.5 $ 19.8 $ $ $ 15.4 Total revenue Total expenses (excluding distributions) (.22) (.21) (.22) (.2) (.18) Realized gains (losses) Unrealized gains (losses) 1.19 (.4) Total increase (decrease) from operations B From net investment income (excluding dividends) (.22) (.26) From dividends From capital gains (.32) (.32) (.) (1.64) Return of capital (.86) (.88) (.81) (.75) (.71) Total distributions B,C (1.18) (1.42) (1.17) (2.39) (.71) Net assets, end of period B $ $ 18.5 $ 19.8 $ $ Net asset value (s) D $ 1,219 $ 1,398 $ 399 $ 132 $ 4 Securities outstanding D 64,931 77,53 2,912 7, Management expense ratio E,F 1.17% 1.17% 1.15% 1.19% 1.19% Management expense ratio before waivers or absorptions E,F 1.17% 1.19% 1.21% 1.2% 1.19% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $

8 Financial Highlights continued Fidelity Global Growth Portfolio Series F8 Periods ended June 3, Net assets, beginning of period B $ $ 15.6 $ $ $ Total revenue Total expenses (excluding distributions) (.16) (.16) (.17) (.17) (.16) Realized gains (losses) Unrealized gains (losses).51 (.6) Total increase (decrease) from operations B From net investment income (excluding dividends) (.17) (.21) From dividends From capital gains (.24) (.25) (.8) (1.33) Return of capital (1.16) (1.19) (.89) (.93) (.97) Total distributions B,C (1.4) (1.61) (1.18) (2.27) (.97) Net assets, end of period B $ 13.8 $ $ 15.6 $ $ Net asset value (s) D $ 838 $ 45 $ 347 $ 499 $ 396 Securities outstanding D 6,88 29,483 23,73 35, 28,877 Management expense ratio E,F 1.16% 1.13% 1.13% 1.19% 1.19% Management expense ratio before waivers or absorptions E,F 1.16% 1.16% 1.18% 1.19% 1.19% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Growth Portfolio Series O Periods ended June 3, Net assets, beginning of period B $ $ 14.9 $ $ 12. $.19 Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses).93 (.42) Total increase (decrease) from operations B From net investment income (excluding dividends) (.25) (.31) From dividends From capital gains (.45) (.36) (.12) (1.37) Return of capital Total distributions B,C (.45) (.61) (.43) (1.37) Net assets, end of period B $ 16. $ $ 14.9 $ $ 12. Net asset value (s) D $ 2 $ 1 $ 1 $ 1 $ 6 Securities outstanding D Management expense ratio E.1% % % % % Management expense ratio before waivers or absorptions E.1% % % % % Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ 16.6 $ $ 14.9 $ $

9 Fidelity Global Growth Portfolio Series T5 Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.43) (.43) (.43) (.41) (.38) Realized gains (losses) Unrealized gains (losses) 1.14 (.74) Total increase (decrease) from operations B 1.65 (.5) From net investment income (excluding dividends) (.) (.8) From dividends From capital gains (.8) (.15) (.3) (1.28) Return of capital (.82) (.83) (.76) (.7) (.68) Total distributions B,C (.9) (1.8) (.86) (1.98) (.68) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 1,35 $ 1,219 $ 1,44 $ 737 $ 164 Securities outstanding D 59,593 72,951 79,31 44,751,576 Management expense ratio E,F 2.48% 2.5% 2.5% 2.55% 2.52% Management expense ratio before waivers or absorptions E,F 2.48% 2.51% 2.52% 2.52% 2.52% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Growth Portfolio Series T8 Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ 11.9 Total revenue Total expenses (excluding distributions) (.33) (.34) (.34) (.33) (.3) Realized gains (losses) Unrealized gains (losses).84 (.46) Total increase (decrease) from operations B From net investment income (excluding dividends) (.8) (.6) From dividends From capital gains (.5) (.11) (.2) (1.4) Return of capital (1.9) (1.) (.84) (.87) (.93) Total distributions B,C (1.14) (1.29) (.92) (1.91) (.93) Net assets, end of period B $ 12.7 $ $ $ $ Net asset value (s) D $ 1,93 $ 1,192 $ 1,232 $ 1,611 $ 1,982 Securities outstanding D 86,125 94,44 88, , ,372 Management expense ratio E,F 2.54% 2.54% 2.53% 2.54% 2.51% Management expense ratio before waivers or absorptions E,F 2.55% 2.55% 2.55% 2.55% 2.51% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $

10 Financial Highlights continued Fidelity Global Growth Portfolio Series S5 Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.4) (.39) (.39) (.37) (.34) Realized gains (losses) Unrealized gains (losses).82 (.48) Total increase (decrease) from operations B From net investment income (excluding dividends) (.12) (.) From dividends From capital gains (.12) (.18) (.4) (1.34) Return of capital (.83) (.84) (.77) (.71) (.68) Total distributions B,C (.95) (1.14) (.91) (2.5) (.68) Net assets, end of period B $ 17.6 $ $ $ $ Net asset value (s) D $ 94 $ 734 $ 511 $ 366 $ 154 Securities outstanding D 53,497 43,434 28,565 21,97 9,846 Management expense ratio E,F 2.29% 2.25% 2.25% 2.27% 2.28% Management expense ratio before waivers or absorptions E,F 2.29% 2.26% 2.26% 2.27% 2.28% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Growth Portfolio Series S8 Periods ended June 3, Net assets, beginning of period B $ $ 14.9 $ $ $ 12.4 Total revenue Total expenses (excluding distributions) (.3) (.31) (.31) (.3) (.29) Realized gains (losses) Unrealized gains (losses).79 (.51) Total increase (decrease) from operations B From net investment income (excluding dividends) (.9) (.8) From dividends From capital gains (.8) (.13) (.3) (1.8) Return of capital (1.11) (1.12) (.85) (.88) (.94) Total distributions B,C (1.19) (1.34) (.96) (1.97) (.94) Net assets, end of period B $ $ $ 14.9 $ $ Net asset value (s) D $ 2,973 $ 2,64 $ 2,184 $ 1,41 $ 491 Securities outstanding D 231,56 22, ,7 4,933 38,194 Management expense ratio E,F 2.31% 2.3% 2.27% 2.28% 2.3% Management expense ratio before waivers or absorptions E,F 2.31% 2.3% 2.28% 2.28% 2.3% Trading expense ratio G.%.12%.15%.19%.22% Portfolio turnover rate H 27.55% 25.% 35.49% 81.55% 1.78% Net asset value per security, end of period $ $ $ $ $

11 Fidelity Global Growth Portfolio Series E1 Periods ended June 3, 216 J Net assets, beginning of period B $.42 $. Total revenue.19 (.8) Total expenses (excluding distributions) (.24) (.9) Realized gains (losses) Unrealized gains (losses).49.6 Total increase (decrease) from operations B 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 $ $.42 Net asset value (s) D $ 37,681 $ 16,365 Securities outstanding D 3,291,885 1,571,7 Management expense ratio E,K 2.21% 2.2% Management expense ratio before waivers or absorptions E,K 2.21% 2.2% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $ $.4168 Fidelity Global Growth Portfolio Series E1T5 Periods ended June 3, 216 J Net assets, beginning of period B $ 2.42 $ 2. Total revenue.41 (.16) Total expenses (excluding distributions) (.44) (.17) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.18) Return of capital (1.) (.42) Total distributions B,C (1.18) (.42) Net assets, end of period B $ $ 2.42 Net asset value (s) D $ 195 $ 4 Securities outstanding D 9,187 5,81 Management expense ratio E,K 2.8% 2.% Management expense ratio before waivers or absorptions E,K 2.8% 2.% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Global Growth Portfolio Series E2 Periods ended June 3, 216 J Net assets, beginning of period B $.42 $. Total revenue.25 (.8) Total expenses (excluding distributions) (.24) (.9) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.9) Return of capital Total distributions B,C (.9) Net assets, end of period B $ $.42 Net asset value (s) D $ 3,964 $ 1,316 Securities outstanding D 349,47 126,24 Management expense ratio E,K 2.15% 2.13% Management expense ratio before waivers or absorptions E,K 2.15% 2.14% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $ $.4178 Fidelity Global Growth Portfolio Series E3 Periods ended June 3, 216 J Net assets, beginning of period B $.42 $. Total revenue.2 (.8) Total expenses (excluding distributions) (.24) (.9) Realized gains (losses) Unrealized gains (losses) (.4).59 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.9) Return of capital Total distributions B,C (.9) Net assets, end of period B $ $.42 Net asset value (s) D $ 539 $ 36 Securities outstanding D 47,438 3,472 Management expense ratio E,K 2.13% 2.12% Management expense ratio before waivers or absorptions E,K 2.13% 2.12% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $ $.419

13 Fidelity Global Growth Portfolio Series E4 Periods ended June 3, 216 L Net assets, beginning of period B $.22 $. Total revenue.22 (.3) Total expenses (excluding distributions) (.22) (.3) Realized gains (losses).37.3 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.9) Return of capital Total distributions B,C (.9) Net assets, end of period B $ $.22 Net asset value (s) D $ 15 $ 35 Securities outstanding D 1,331 3,472 Management expense ratio E,M 2.7% 2.6% Management expense ratio before waivers or absorptions E,M 2.7% 2.6% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $ $.2165 Fidelity Global Growth Portfolio Series P1 Periods ended June 3, 216 N Net assets, beginning of period B $ 9.68 $. Total revenue.2 (.1) Total expenses (excluding distributions) (.11) (.6) Realized gains (losses).4.19 Unrealized gains (losses) Total increase (decrease) from operations B.98.4 From net investment income (excluding dividends) (.12) From dividends From capital gains (.19) (.17) Return of capital Total distributions B,C (.19) (.28) Net assets, end of period B $.55 $ 9.68 Net asset value (s) D $ 14,899 $ 5,568 Securities outstanding D 1,411, ,144 Management expense ratio E,O 1.9% 1.9% Management expense ratio before waivers or absorptions E,O 1.% 1.9% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $.5515 $

14 Financial Highlights continued Fidelity Global Growth Portfolio Series P1T5 Periods ended June 3, P Net assets, beginning of period B $ 2. Total revenue.38 Total expenses (excluding distributions) (.17) Realized gains (losses).63 Unrealized gains (losses).53 Total increase (decrease) from operations B 1.37 From net investment income (excluding dividends) From dividends From capital gains (.37) Return of capital (.77) Total distributions B,C (1.14) Net assets, end of period B $ 2.17 Net asset value (s) D $ 876 Securities outstanding D 43,429 Management expense ratio E,Q 1.8% Management expense ratio before waivers or absorptions E,Q 1.8% Trading expense ratio G.% Portfolio turnover rate H 27.55% Net asset value per security, end of period $ Fidelity Global Growth Portfolio Series P2 Periods ended June 3, 216 N Net assets, beginning of period B $ 9.69 $. Total revenue.14 (.7) Total expenses (excluding distributions) (.11) (.5) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) (.12) From dividends From capital gains (.19) (.17) Return of capital Total distributions B,C (.19) (.28) Net assets, end of period B $.56 $ 9.69 Net asset value (s) D $ 3,172 $ 952 Securities outstanding D 3,228 98,483 Management expense ratio E,O 1.1% 1.% Management expense ratio before waivers or absorptions E,O 1.1% 1.% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $.5598 $

15 Fidelity Global Growth Portfolio Series P3 Periods ended June 3, 216 N Net assets, beginning of period B $ 9.69 $. Total revenue Total expenses (excluding distributions) (.) (.5) Realized gains (losses).4.21 Unrealized gains (losses).47 (.56) Total increase (decrease) from operations B.96 (.13) From net investment income (excluding dividends) (.12) From dividends From capital gains (.2) (.17) Return of capital Total distributions B,C (.2) (.28) Net assets, end of period B $.56 $ 9.69 Net asset value (s) D $ 516 $ 23 Securities outstanding D 48,86 23,751 Management expense ratio E,O.99%.97% Management expense ratio before waivers or absorptions E,O.99%.98% Trading expense ratio G.%.12% Portfolio turnover rate H 27.55% 25.% Net asset value per security, end of period $.5588 $

16 Financial Highlights continued 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, 213 follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 213 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%, 216: -%, 215: -%, 214: -%, 213: -%). Effective November 1, 214, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period, including the Fund s pro-rata share of estimated trading costs incurred in any underlying investment fund, if applicable. The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher the Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high portfolio turnover rate and the performance of the Fund. The portfolio turnover rate is calculated based on the lesser of purchases or sales of securities divided by the weighted average market value of the portfolio securities, excluding short-term securities. For periods greater than six months, but less than a full fiscal year, the portfolio turnover rate is annualized. Effective October 1, 215, 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 February 5, 216 (commencement of sale of securities) to June 3, 216. K Effective February 9, 216, 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 May 13, 216 (commencement of sale of securities) to June 3, 216. M Effective May 17, 216, 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 December 4, 215 (commencement of sale of securities) to June 3, 216. O Effective December 8, 215, 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 September 16, 216 (commencement of sale of securities) to June 3,. Q Effective September 2, 216, 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. 14

17 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.% 58.88% 41.12% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 33.32% 66.68% Series T8 2.% 36.4% 63.96% 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 E % 56.34% 43.66% Series E % 57.97% 42.3% Series P1.825%.% Series P1T5.825%.% Series P2.8%.% Series P3.775%.% 15

18 Fidelity Global Growth Portfolio 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 Series F Series F Series O

19 Series T5 Series E Series T8 Commencement of Operations is February 5, Series E1T Series S5 - Commencement of Operations is February 5, Series E Series S Commencement of Operations is February 5, Series E Commencement of Operations is February 5,

20 Fidelity Global Growth Portfolio Past Performance continued Series E4 Series P Commencement of Operations is May 13, 216 Commencement of Operations is December 4, 215 Series P1 Series P Commencement of Operations is December 4, 215 Commencement of Operations is December 4, 215 Series P1T Commencement of Operations is September 16, 216 Annual Compound Returns This table shows the Fund s historical annual compound total returns for the periods indicated, compared with a broad-based index, the MSCI World Index, and with the Fund s benchmark, as described below. 18

21 Past 1 year Past 3 years Past 5 years Past years Since Inception Average Annual Total Returns Fidelity Global Growth Portfolio Series A 9.5% 7.6% 11.4% 5.% n/a Fidelity Global Growth Portfolio Series B 9.7% 7.8% 11.6% 5.2% n/a Fidelity Global Growth Portfolio Series F 11.% 9.% 12.9% 6.4% n/a Fidelity Global Growth Portfolio Series F5 11.% 9.% 12.9% 6.3% n/a Fidelity Global Growth Portfolio Series F8 11.% 9.% 12.9% 6.3% n/a Fidelity Global Growth Portfolio Series O 12.2%.3% 14.2% 7.6% n/a Fidelity Global Growth Portfolio Series T5 9.5% 7.6% 11.4% 5.% n/a Fidelity Global Growth Portfolio Series T8 9.4% 7.5% 11.3% 5.% n/a Fidelity Global Growth Portfolio Series S5 9.7% 7.8% 11.6% 5.2% n/a Fidelity Global Growth Portfolio Series S8 9.7% 7.8% 11.6% 5.2% n/a Fidelity Global Growth Portfolio Series E1 9.8% n/a n/a n/a.1% Fidelity Global Growth Portfolio Series E1T5.% n/a n/a n/a.2% Fidelity Global Growth Portfolio Series E2 9.9% n/a n/a n/a.1% Fidelity Global Growth Portfolio Series E3 9.9% n/a n/a n/a.2% Fidelity Global Growth Portfolio Series E4.% n/a n/a n/a.8% Fidelity Global Growth Portfolio Series P1 11.% n/a n/a n/a 6.6% Fidelity Global Growth Portfolio Series P2 11.2% n/a n/a n/a 6.7% Fidelity Global Growth Portfolio Series P3 11.2% n/a n/a n/a 6.7% Fidelity Global Growth Portfolio Blend Benchmark 13.7% 8.6% 12.6% 6.% 9.% MSCI World Index 18.2% 12.4% 16.9% 6.1% 8.5% The period used for the since inception Fidelity Global Growth Portfolio Blend Benchmark and MSCI World 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, MSCI World Index, and with a narrow index, a blended index made up of approximately 3.% S&P/TSX Capped Composite Index, 55.% MSCI ACWI (All Country World Index) ex Canada Index,.% Bloomberg Barclays Global Aggregate Bond Index and 5.% FTSE TMX Canada Universe Bond Index. Prior to October 1, 213, the benchmark was 12.5% S&P/TSX Capped Composite Index, 12.5% S&P/TSX Completion Index, 12.5% S&P 5 Index,.% Russell 2 Index,.5% Barclays Global Aggregate Bond Index Hedged CAD, 5.% The BofA Merrill Lynch US High Yield Constrained Index CAD Hedged, 7.5% MSCI Europe Index, 5.% MSCI AC (All Country) Far East ex Japan Index, 4.%MSCI World High Dividend Yield Index, 5.% MSCI Emerging Markets Index, 5.% Tokyo Stock Price Index (TOPIX) and.5% FTSE EPRA/NAREIT Developed Index. The MSCI World Index is a market capitalization-weighted index composed of companies representative of the market structure of developed market countries in North America, Europe and the Asia-Pacific region. 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/ TSX Completion Index is a market capitalization-weighted, total return index comprising all the stocks within the S&P/TSX Composite Index, excluding the members of the S&P/TSX 6 Index. It represents small and mid caps within the S&P/TSX Composite Index. The S&P 5 Index is a widely recognized index of 5 U.S. common stocks of large- and mid-capitalization companies. The Russell 2 Index is an index of 2, smallcapitalization U.S. stocks. The Russell 2 Index measures the performance of the 2, smallest companies in the Russell 3 Index, which represents approximately 8.% of the total market capitalization of the Russell 3 Index. The Bloomberg Barclays Global Aggregate Bond Index covers the most liquid portion of the global investment-grade fixed-rate bond market, including government, credit and collateralized securities. On November 3, 28, the Lehman Brothers Global Aggregate Bond Index was renamed the Barclays Global Aggregate Bond Index. On August 24, 216, Bloomberg purchased the Barclays family of benchmark indexes. As part of this transaction, all Barclays benchmark indexes have been co-branded as the Bloomberg Barclays indexes for an initial period of five years. The BofA Merrill Lynch US High Yield Constrained Index is a market value-weighted index of U.S. currency high-yield bonds issued by U.S. and non-u.s. issuers, including deferred interest bonds and payment-in-kind securities. Issues included in the Index have maturities of one year or more and have a credit rating lower than BBB-/Baa3, but are not in default. The Index imposes a fixed limit on the maximum concentration of any individual issuer to 2.%. Effective September 25, 29, the Merrill Lynch indexes were rebranded The BankofAmerica Merrill Lynch indexes. The MSCI Europe Index is an index of over 5 stocks traded in 15 European markets. The MSCI AC (All Country) Far East ex Japan Index is an index of over 38 stocks traded in nine Asian markets, excluding Japan. The MSCI World High Dividend Yield Index aims to objectively reflect the high dividend yield opportunity set within 19

22 Fidelity Global Growth Portfolio Past Performance continued select MSCI Equity indexes. The MSCI Emerging Markets Index is a diversified index that is designed to measure equity market performance in the global emerging markets. The Tokyo Stock Price Index (TOPIX) is an index of over 1,4 stocks traded in the Japanese market. The FTSE EPRA/NAREIT Developed Index series is designed to reflect the stock performance of companies engaged in specific aspects of the North American, European and Asian real estate markets. According to a survey conducted by ABN AMRO, the Index is used by 75.% of global real estate investors and managers. Each Series will have different returns because of differences in management fees and expenses. 2

23 Fidelity Global Growth Portfolio Summary of Investment Portfolio as at June 3, Asset Mix % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 Foreign Equities Canadian Equities Foreign Bonds Exchange Traded Funds Canadian Bonds Foreign Preferred Securities.6.5 Cash and Cash Equivalents Net Other Assets (Liabilities) Derivative Exposure % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 Futures Contracts Futures Contracts percentage is calculated by dividing the sum of the underlying face amount at value by total net assets. Geographic Mix % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 United States of America Canada Japan United Kingdom Germany Cayman Islands Switzerland Netherlands India Sweden Korea (South) South Africa Australia 1..9 Mexico Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) Maturity Diversification Years % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/ Over Quality Diversification % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 AAA AA.6.5 A BBB BB and Below Not Rated 1..5 Equities Short-Term Investments and Net Other Assets We have used ratings from Moody s Investors Service, Inc. Where Moody s ratings are not available, we have used S&P ratings. All ratings are as of the date indicated and do not reflect subsequent changes. 21