Fidelity Canadian Asset Allocation Fund

Transcription

1 Fidelity Canadian Asset Allocation Fund Annual Management Report of Fund Performance June 3, 217

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, 217 Fidelity Canadian Asset Allocation Fund This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite 3, Toronto ON MG 2N7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund. Management Discussion of Fund Performance Investment Objective and Strategies Investment Objective: Fidelity Canadian Asset Allocation Fund (Fund) aims to achieve high total investment return using an asset allocation approach. The Fund invests primarily in a mix of Canadian equity securities, fixed-income securities and money market instruments. Strategies: The Fund s neutral mix is 6.% Canadian equity securities, 3.% Canadian fixed-income securities and.% money market instruments. Depending on market conditions, the portfolio managers may vary the Fund s asset mix from the neutral mix if they believe this will produce the best overall return. The portfolio managers generally keep the Fund s asset mix within the following ranges: 2.% 9.% equity securities, 1.% 6.% fixed-income securities and.% 7.% money market instruments. The Fund may also hold cash and may invest in any kind of equity or fixed-income security or money market instrument. This includes high-yield securities and other lower-quality debt securities. It also includes Canadian or foreign securities. The Fund may invest a portion of its assets in securities of other funds, including ETFs managed by third parties and funds managed by Fidelity, in accordance with its investment objectives. When buying and selling securities for the equity portion of the Fund, the portfolio managers examine each company s potential for success in light of its current financial condition and industry position, as well as economic and market conditions. The portfolio managers consider factors such as growth potential, earnings estimates and quality of management. The portfolio managers use the FTSE TMX Canada Universe Bond Index as a guide to structuring the domestic investment-grade fixed-income portion of the Fund. While the portfolio managers generally manage this portion of the Fund to have overall interest rate risk similar to the Index, the Fund s specific investments may or may not be included in the Index. 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 to gain exposure to both Canadian equity and fixed-income securities, want the convenience of a diversified portfolio in a single fund and can handle the volatility of returns generally associated with equity investments. To invest in the Fund, investors should be able to accept a low to medium level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity Canadian Asset Allocation Fund, Series B, returned 3.%, after fees and expenses, for the one-year period ended June 3, 217. The net returns of the other series of the Fund are similar to those of Series B, except for differences attributable to expense structures. Canadian equities, as represented by the S&P/TSX Composite Index, returned 11.% (in Canadian dollar terms). Canadian investment-grade bonds, as represented by the FTSE TMX Canada Universe Bond Index, returned.% (in Canadian dollar terms) for the period. Market overview: Canadian equities rose on the strength of banking and oil and gas stocks. Canadian bank share prices rose, largely on the basis of continued positive investor sentiment, including a spillover effect from strength in U.S. financial stocks, which rallied after the recent U.S. presidential election. Oil prices rose during the first half of the period, following the agreement of the Organization of the Petroleum Exporting Countries (OPEC) to reduce crude output. However, during the second half of the review period, investors concerns about depressed oil prices, rising household debt and risks of a correction in the housing market weighed on Canadian equities. 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 (Fed) increased interest rates again in June by.2%, leaving the target range between 1.% and 1.2%; it was the central bank s second rate increase in 217. Yields on longer-dated U.S. Treasuries fell as inflation expectations weakened during the second quarter of 217, due to poor inflation data. In Canada, the Bank of Canada kept monetary policy unchanged and maintained its cautious tone. The Bank continued to focus on the excess capacity within the economy and uncertainties regarding the new U.S. administration s trade policies and the timing of tax reform and fiscal stimulus. Factors Affecting Performance: 1

4 Fidelity Canadian Asset Allocation Fund Management Discussion of Fund Performance continued The Fund s benchmark returned 7.1% for the one-year review period. The benchmark consists of 6.% S&P/TSX Capped Composite Index, 3.% FTSE TMX Canada Universe Bond Index and.% FTSE TMX Canada 91 Day T-Bill Index. The Fund s underperformance of its benchmark was primarily attributable to investments in Canadian equities. In contrast, the Fund s exposure to emerging market equities, Canadian investment-grade bonds and U.S. high-yield bonds contributed. Among Canadian equities, exposure to the industrials sector detracted from relative performance. In the sector, lower-than-benchmark exposure to Canadian National Railway and Waste Connections detracted. At the end of the review period, the Fund had no exposure to Canadian National Railway and Waste Connections. Exposure to certain stocks in the materials sector also detracted from relative performance. In the sector, exposure to metals and mining companies such as Tahoe Resources and First Quantum Minerals detracted from relative performance. Among other sectors, the Fund s exposure to Suncor Energy and loyalty analytics firm Aimia detracted from relative performance. In contrast, investments in the information technology sector contributed to relative performance. In this sector, exposure to software and services provider Constellation Software and consumer electronics and video game company, Nintendo, contributed to relative performance. Among other sectors, a lack of exposure to Cenovus Energy and a lower-than-benchmark exposure to Goldcorp contributed to relative performance. At the end of the review period, the Fund had no exposure to Goldcorp. Portfolio Changes: During the period, portfolio managers Geoff Stein and David Wolf increased the Fund s exposure to global resource equities. The managers also reduced exposure to Canadian investment-grade bonds, in favour of Canadian money market and Canadian short-term bonds, so as to manage interest rate risk. Among Canadian equities, the portfolio managers reduced the Fund s exposure to the materials and industrials sectors; better opportunities were found elsewhere. Derivative Disclosure: During the period under review, the Fund engaged in interest rate and short equity futures contracts in a manner consistent with its investment objective and strategies. Interest rate futures were used to execute investment strategies that allowed the Fund to potentially benefit from attractive yields in certain securities, while mitigating the possible interest rate risk that would have otherwise accompanied these investments. The Fund did not have any exposure to these futures positions at the end of the review period. The Fund also engaged in short Canadian equity futures positions. This investment strategy allowed the Fund to effectively reduce exposure to Canadian equities without the need to sell out of strategic positions. These short futures positions, in aggregate, accounted for approximately 3.1% 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 or bond securities directly. However, security selection continued to be the primary driver of performance, and these derivatives had no material impact on performance. Recent Developments Portfolio managers Geoff Stein and David Wolf believe inflation shocks are becoming more of a risk and may pose a threat to the valuation of financial assets and to the traditional negative correlation between stock and bond returns. Against this backdrop, the managers have maintained modest exposure to real assets such as inflation-linked bonds. The managers also maintained exposure to higher-yielding fixed-income asset classes such as U.S. high-yield bonds, emerging markets debt and floating rate debt. The investment-grade fixed-income portfolio managers anticipate that Canadian government bond yields will remain low in the near future, given the current economic backdrop. Larger-than-benchmark allocations to corporate bonds were maintained, given those issues fundamental outlook and attractive valuations. The team aims to keep the portfolio liquid in order to be positioned to take advantage of buying opportunities. At the end of the review period, Canadian equities accounted for the highest absolute exposure in the Fund, followed by Canadian bonds. Independent Review Committee Effective February 28, 217, Helen M. Meyer retired from the Independent Review Committee and was replaced by James E. Cook as Chair. Also effective on that date, Frances Horodelski of Toronto, Ontario, became a member of the Independent Review Committee. 2

5 Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader group of companies collectively known as Fidelity Investments. Fidelity provides or arranges for the provision of all general management and administrative services required by the Fund in its day to day operations, bookkeeping, record keeping and other administrative services for the Fund. Fidelity is the portfolio adviser to the Fund and it provides investment advisory services to the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity Investments Money Management, Inc., FMR Co., Inc. and Fidelity (Canada) Asset Management ULC, to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $2,24, for the period ended June 3, 217. 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 $4,1, for the period ended June 3, 217. 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 $ for the period ended June 3, 217. Fidelity receives standing instructions from the IRC in respect of policies and procedures governing best execution of transactions with affiliates, which includes brokers affiliated to Fidelity Investments, at least once per year. 3

6 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the period end of the years shown. This information is derived from the Fund s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund s annual or semi-annual financial statements. Fidelity Canadian Asset Allocation Fund Series A Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.69) (.68) (.73) (.67) (.61) Realized gains (losses) Unrealized gains (losses) (.23) (.17) (1.8) Total increase (decrease) from operations B From net investment income (excluding dividends) (.12) (.32) (.2) (.8) From dividends (.26) (.33) (.19) (.14) From capital gains (.7) (1.18) (.29) Return of capital Total distributions B,C (.9) (1.83) (.68) (.23) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 216,3 $ 347,763 $ 14,794 $ 79,3 $ 886,784 Securities outstanding D 7,82,446 12,97,477 18,823,147 24,76,926 3,746,21 Management expense ratio E,F 2.4% 2.4% 2.48% 2.1% 2.48% Management expense ratio before waivers or absorptions E,F 2.1% 2.% 2.1% 2.1% 2.48% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Asset Allocation Fund Series B Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.64) (.61) (.66) (.61) (.6) Realized gains (losses) Unrealized gains (losses) (.41).2 (1.6) Total increase (decrease) from operations B From net investment income (excluding dividends) (.13) (.33) (.23) (.1) From dividends (.28) (.34) (.22) (.18) From capital gains (.6) (1.22) (.24) Return of capital Total distributions B,C (1.2) (1.9) (.69) (.28) Net assets, end of period B $ 27.8 $ $ $ $ Net asset value (s) D $ 2,43,187 $ 2,297,314 $ 2,682,1 $ 2,914,271 $ 3,9,37 Securities outstanding D 73,446,33 8,48,78 97,76,997 11,421,1 121,174,994 Management expense ratio E,F 2.24% 2.23% 2.26% 2.27% 2.26% Management expense ratio before waivers or absorptions E,F 2.28% 2.27% 2.27% 2.27% 2.26% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ $ $ $ $

7 Fidelity Canadian Asset Allocation Fund Series F Periods ended June 3, Net assets, beginning of period B $ $ 27.7 $ 29.4 $ $ Total revenue Total expenses (excluding distributions) (.32) (.3) (.33) (.3) (.27) Realized gains (losses) Unrealized gains (losses) (.8).24 (1.76) Total increase (decrease) from operations B From net investment income (excluding dividends) (.17) (.39) (.39) (.21) From dividends (.21) (.37) (.41) (.38) (.36) From capital gains (.8) (1.46) (.1) Return of capital Total distributions B,C (.21) (1.3) (2.26) (.78) (.7) Net assets, end of period B $ $ $ 27.7 $ 29.4 $ Net asset value (s) D $ 132,777 $ 11,42 $ 98,182 $ 7,344 $ 7,26 Securities outstanding D 4,7,769 4,77,88 3,43,423 2,424,492 2,3,488 Management expense ratio E,I 1.1% 1.9% 1.1% 1.12% 1.11% Management expense ratio before waivers or absorptions E,I 1.11% 1.11% 1.12% 1.12% 1.11% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Asset Allocation Fund Series F Periods ended June 3, J Net assets, beginning of period B $ $ 1.2 $ $ 1.6 $ 1. Total revenue Total expenses (excluding distributions) (.1) (.14) (.19) (.18) (.3) Realized gains (losses).67 (.3) Unrealized gains (losses) (.29).44 (1.4) 1.4 (1.14) Total increase (decrease) from operations B (.92) From net investment income (excluding dividends) (.9) (.22) (.23) From dividends (.11) (.2) (.23) (.22) From capital gains (.44) (.82) (.1) Return of capital (.73) (.7) (.77) (.74) (.13) Total distributions B,C (.84) (1.48) (2.) (1.2) (.13) Net assets, end of period B $ $ $ 1.2 $ $ 1. Net asset value (s) D $ 2,847 $ 2,921 $ 1,7 $ 226 $ 31 Securities outstanding D 23,66 26,326 12,36 13,481 2, Management expense ratio E,I 1.9% 1.6% 1.8% 1.14% 1.12% Management expense ratio before waivers or absorptions E,I 1.1% 1.8% 1.1% 1.14% 1.12% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ $ $ $ $ 1.81

8 Financial Highlights continued Fidelity Canadian Asset Allocation Fund Series F8 Periods ended June 3, J Net assets, beginning of period B $ $ $ $ $ 1. Total revenue Total expenses (excluding distributions) (.1) (.1) (.18) (.18) (.1) Realized gains (losses) Unrealized gains (losses) (.28).22 (.94) 1.16 Total increase (decrease) from operations B From net investment income (excluding dividends) (.9) (.21) (.23) From dividends (.9) (.18) (.22) (.22) From capital gains (.4) (.79) Return of capital (1.2) (1.11) (1.23) (1.18) (.2) Total distributions B,C (1.11) (1.77) (2.4) (1.63) (.2) Net assets, end of period B $ 12.3 $ $ $ $ Net asset value (s) D $ 2,86 $ 2,11 $ 1,284 $ 379 $ 1 Securities outstanding D 232,67 167,74 89,97 23, Management expense ratio E,I 1.11% 1.1% 1.11% 1.14%.81% Management expense ratio before waivers or absorptions E,I 1.11% 1.12% 1.14% 1.14%.81% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Asset Allocation Fund Series O Periods ended June 3, Net assets, beginning of period B $ 27.8 $ $ 29.2 $ 24.9 $ 24. Total revenue Total expenses (excluding distributions) (.2) (.3) (.3) Realized gains (losses) Unrealized gains (losses) (.4).21 (1.67) Total increase (decrease) from operations B From net investment income (excluding dividends) (.21) (.4) (.6) (.31) From dividends (.1) (.4) (.46) (.4) (.3) From capital gains (.98) (1.66) Return of capital Total distributions B,C (.1) (1.6) (2.7) (1.9) (.84) Net assets, end of period B $ $ 27.8 $ $ 29.2 $ Net asset value (s) D $ 2,7,82 $ 3,186,73 $ 3,69,611 $ 4,426,998 $ 4,467,626 Securities outstanding D 97,922, ,62, ,27,733 12,441, ,41,249 Management expense ratio E.1% % % % % Management expense ratio before waivers or absorptions E.1% % % % % Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ $ $ $ $

9 Fidelity Canadian Asset Allocation Fund Series T Periods ended June 3, Net assets, beginning of period B $ 9.22 $ 9.93 $ 1.93 $ 9.97 $ 1.1 Total revenue Total expenses (excluding distributions) (.23) (.24) (.27) (.26) (.2) Realized gains (losses) Unrealized gains (losses) (.7) (.) (.6).96.3 Total increase (decrease) from operations B From net investment income (excluding dividends) (.4) (.12) (.8) (.4) From dividends (.9) (.12) (.8) (.6) From capital gains (.2) (.44) (.11) Return of capital (.49) (.) (.2) (.4) (.) Total distributions B,C (.49) (.84) (1.21) (.81) (.6) Net assets, end of period B $ 9.3 $ 9.22 $ 9.93 $ 1.93 $ 9.97 Net asset value (s) D $ 3,14 $ 4,936 $ 7,43 $ 12,213 $ 18,762 Securities outstanding D 333,9 3, ,13 1,119,88 1,881,173 Management expense ratio E,F 2.47% 2.46% 2.48% 2.% 2.48% Management expense ratio before waivers or absorptions E,F 2.3% 2.1% 2.% 2.% 2.48% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ 9.34 $ $ $ $ Fidelity Canadian Asset Allocation Fund Series T8 Periods ended June 3, Net assets, beginning of period B $ 6.14 $ 6.84 $ 7.82 $ 7.39 $ 7.79 Total revenue Total expenses (excluding distributions) (.1) (.16) (.19) (.19) (.19) Realized gains (losses) Unrealized gains (losses) (.6) (.4) (.41).7.24 Total increase (decrease) from operations B From net investment income (excluding dividends) (.3) (.8) (.6) (.3) From dividends (.6) (.9) (.) (.4) From capital gains (.14) (.31) (.8) Return of capital (.49) (.) (.64) (.67) (.69) Total distributions B,C (.49) (.78) (1.12) (.87) (.76) Net assets, end of period B $.8 $ 6.14 $ 6.84 $ 7.82 $ 7.39 Net asset value (s) D $,983 $ 9,324 $ 14,323 $ 24,19 $ 37,449 Securities outstanding D 1,23,967 1,18,41 2,96,99 3,142,29,64,377 Management expense ratio E,F 2.44% 2.44% 2.48% 2.% 2.49% Management expense ratio before waivers or absorptions E,F 2.1% 2.% 2.1% 2.% 2.49% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $.811 $ $ $ $

10 Financial Highlights continued Fidelity Canadian Asset Allocation Fund Series S Periods ended June 3, Net assets, beginning of period B $ 9.24 $ 9.9 $ 1.9 $ 9.96 $ 1.12 Total revenue Total expenses (excluding distributions) (.21) (.22) (.2) (.24) (.23) Realized gains (losses) Unrealized gains (losses) (.14) (.) (.61) Total increase (decrease) from operations B From net investment income (excluding dividends) (.) (.12) (.9) (.4) From dividends (.1) (.13) (.9) (.7) From capital gains (.21) (.46) (.1) Return of capital (.49) (.) (.2) (.3) (.) Total distributions B,C (.49) (.86) (1.23) (.8) (.66) Net assets, end of period B $ 9.8 $ 9.24 $ 9.9 $ 1.9 $ 9.9 Net asset value (s) D $ 1,48 $ 17,789 $ 22,899 $ 22,9 $ 22,212 Securities outstanding D 1,71,186 1,926,8 2,33,97 2,16,626 2,23,1 Management expense ratio E,F 2.2% 2.24% 2.27% 2.29% 2.26% Management expense ratio before waivers or absorptions E,F 2.29% 2.28% 2.28% 2.29% 2.26% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $ 9.73 $ $ $ $ Fidelity Canadian Asset Allocation Fund Series S8 Periods ended June 3, Net assets, beginning of period B $ 6.17 $ 6.87 $ 7.8 $ 7.41 $ 7.8 Total revenue Total expenses (excluding distributions) (.14) (.1) (.17) (.18) (.18) Realized gains (losses) Unrealized gains (losses) (.1).1 (.43) Total increase (decrease) from operations B From net investment income (excluding dividends) (.3) (.9) (.7) (.3) From dividends (.7) (.9) (.6) (.6) From capital gains (.1) (.32) (.7) Return of capital (.49) (.) (.64) (.67) (.69) Total distributions B,C (.49) (.8) (1.14) (.87) (.78) Net assets, end of period B $.89 $ 6.17 $ 6.87 $ 7.8 $ 7.4 Net asset value (s) D $,447 $ 7,214 $ 67,1 $ 72,33 $ 7,738 Securities outstanding D 8,82,233 9,294,214 9,778,97 9,239,12 1,224,474 Management expense ratio E,F 2.26% 2.2% 2.27% 2.28% 2.26% Management expense ratio before waivers or absorptions E,F 2.29% 2.28% 2.29% 2.28% 2.26% Trading expense ratio G.6%.7%.8%.9%.9% Portfolio turnover rate H 2.88% 64.6% 73.81% 69.46% 63.76% Net asset value per security, end of period $.8894 $ $ $ $

11 Fidelity Canadian Asset Allocation Fund Series E1 Periods ended June 3, K Net assets, beginning of period B $ 1.67 $ 1. Total revenue Total expenses (excluding distributions) (.2) (.1) Realized gains (losses).4. Unrealized gains (losses) (.34).72 Total increase (decrease) from operations B.26.8 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 11.4 $ 1.67 Net asset value (s) D $ 16,972 $ 82,648 Securities outstanding D 1,1,89 7,729,348 Management expense ratio E,L 2.19% 2.18% Management expense ratio before waivers or absorptions E,L 2.22% 2.22% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series E1T Periods ended June 3, K Net assets, beginning of period B $ 2.86 $ 2. Total revenue.9.2 Total expenses (excluding distributions) (.48) (.2) Realized gains (losses) 1..1 Unrealized gains (losses) (.62) 1.37 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.1) (.46) Total distributions B,C (1.1) (.46) Net assets, end of period B $ 2.49 $ 2.86 Net asset value (s) D $ 2,747 $ 1,292 Securities outstanding D 133,892 62,11 Management expense ratio E,L 2.21% 2.21% Management expense ratio before waivers or absorptions E,L 2.2% 2.24% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Canadian Asset Allocation Fund Series E2 Periods ended June 3, K Net assets, beginning of period B $ 1.67 $ 1. Total revenue Total expenses (excluding distributions) (.24) (.1) Realized gains (losses).4.4 Unrealized gains (losses) (.36).71 Total increase (decrease) from operations B.2.78 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 11. $ 1.67 Net asset value (s) D $ 21,398 $ 1,36 Securities outstanding D 1,936,14 987,41 Management expense ratio E,L 2.14% 2.14% Management expense ratio before waivers or absorptions E,L 2.18% 2.18% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series E2T Periods ended June 3, K Net assets, beginning of period B $ 2.87 $ 2. Total revenue.6.24 Total expenses (excluding distributions) (.46) (.18) Realized gains (losses) Unrealized gains (losses) (1.8) 1.2 Total increase (decrease) from operations B (.29) 1.34 From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.1) (.46) Total distributions B,C (1.1) (.46) Net assets, end of period B $ 2.3 $ 2.87 Net asset value (s) D $ 71 $ 1 Securities outstanding D 3,437 1 Management expense ratio E,L 2.16% 2.1% Management expense ratio before waivers or absorptions E,L 2.2% 2.1% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $

13 Fidelity Canadian Asset Allocation Fund Series E3 Periods ended June 3, K Net assets, beginning of period B $ 1.67 $ 1. Total revenue Total expenses (excluding distributions) (.24) (.9) Realized gains (losses).61.3 Unrealized gains (losses) (.28).73 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 $ 11.6 $ 1.67 Net asset value (s) D $ 2,776 $ 64 Securities outstanding D 248,19,994 Management expense ratio E,L 2.6% 2.2% Management expense ratio before waivers or absorptions E,L 2.1% 2.% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series E3T Periods ended June 3, K Net assets, beginning of period B $ 2.87 $ 2. Total revenue.8.24 Total expenses (excluding distributions) (.43) (.18) Realized gains (losses).97.8 Unrealized gains (losses) (.34) 1.3 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.1) (.46) Total distributions B,C (1.1) (.46) Net assets, end of period B $ 2. $ 2.87 Net asset value (s) D $ 22 $ 223 Securities outstanding D 1,74 1,71 Management expense ratio E,L 1.99% 2.% Management expense ratio before waivers or absorptions E,L 2.3% 2.4% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Canadian Asset Allocation Fund Series E4 Periods ended June 3, K Net assets, beginning of period B $ 1.67 $ 1. Total revenue.31.1 Total expenses (excluding distributions) (.22) (.9) Realized gains (losses).7.7 Unrealized gains (losses) (.21).74 Total increase (decrease) from operations B.4.86 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 11.8 $ 1.67 Net asset value (s) D $ 1,186 $ 373 Securities outstanding D 17,29 34,947 Management expense ratio E,L 1.92% 1.9% Management expense ratio before waivers or absorptions E,L 1.96% 1.98% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series E4T Periods ended June 3, K Net assets, beginning of period B $ 2.88 $ 2. Total revenue.8.26 Total expenses (excluding distributions) (.41) (.18) Realized gains (losses).99.1 Unrealized gains (losses) (.36) 1.6 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.1) (.46) Total distributions B,C (1.1) (.46) Net assets, end of period B $ 2.8 $ 2.88 Net asset value (s) D $ 986 $ 1, Securities outstanding D 47,96 47,94 Management expense ratio E,L 1.91% 1.92% Management expense ratio before waivers or absorptions E,L 1.9% 1.9% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ 2.77 $

15 Fidelity Canadian Asset Allocation Fund Series E Periods ended June 3, K Net assets, beginning of period B $ 1.67 $ 1. Total revenue Total expenses (excluding distributions) (.21) (.9) Realized gains (losses).1.4 Unrealized gains (losses) (.2).9 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 $ 11.8 $ 1.67 Net asset value (s) D $ 1 $ 1 Securities outstanding D 1 1 Management expense ratio E,L 1.88% 2.1% Management expense ratio before waivers or absorptions E,L 1.88% 2.1% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series ET Periods ended June 3, K Net assets, beginning of period B $ 2.87 $ 2. Total revenue.6.24 Total expenses (excluding distributions) (.4) (.18) Realized gains (losses).98.8 Unrealized gains (losses) (.39) 1.2 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.1) (.46) Total distributions B,C (1.1) (.46) Net assets, end of period B $ 2.7 $ 2.87 Net asset value (s) D $ 1 $ 1 Securities outstanding D 4 1 Management expense ratio E,L 1.88% 2.1% Management expense ratio before waivers or absorptions E,L 1.88% 2.1% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $

16 Financial Highlights continued Fidelity Canadian Asset Allocation Fund Series P1 Periods ended June 3, M Net assets, beginning of period B $ 9.87 $ 1. Total revenue Total expenses (excluding distributions) (.11) (.) Realized gains (losses).1 (.3) Unrealized gains (losses) (.3).9 Total increase (decrease) from operations B From net investment income (excluding dividends) (.6) From dividends (.8) (.13) From capital gains (.29) Return of capital Total distributions B,C (.8) (.49) Net assets, end of period B $ 1.26 $ 9.87 Net asset value (s) D $ 29,33 $ 1,979 Securities outstanding D 2,86,272 1,112,23 Management expense ratio E,N 1.6% 1.% Management expense ratio before waivers or absorptions E,N 1.6% 1.% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series P1T Periods ended June 3, M Net assets, beginning of period B $ $ 2. Total revenue..32 Total expenses (excluding distributions) (.22) (.8) Realized gains (losses) 1.9 (.12) Unrealized gains (losses) (.8) 1.94 Total increase (decrease) from operations B From net investment income (excluding dividends) (.13) From dividends (.16) (.27) From capital gains (.9) Return of capital (.98) (.8) Total distributions B,C (1.14) (1.6) Net assets, end of period B $ $ Net asset value (s) D $ 322 $ 16 Securities outstanding D 17,17 88 Management expense ratio E,N 1.7% 1.8% Management expense ratio before waivers or absorptions E,N 1.7% 1.8% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $

17 Fidelity Canadian Asset Allocation Fund Series P2 Periods ended June 3, M Net assets, beginning of period B $ 9.87 $ 1. Total revenue Total expenses (excluding distributions) (.11) (.6) Realized gains (losses).3.1 Unrealized gains (losses) (.44).66 Total increase (decrease) from operations B.27.8 From net investment income (excluding dividends) (.6) From dividends (.9) (.13) From capital gains (.29) Return of capital Total distributions B,C (.9) (.49) Net assets, end of period B $ 1.26 $ 9.87 Net asset value (s) D $ 3,238 $ 449 Securities outstanding D 31,38 4,4 Management expense ratio E,N.98%.99% Management expense ratio before waivers or absorptions E,N.99%.99% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series P3 Periods ended June 3, M Net assets, beginning of period B $ 9.88 $ 1. Total revenue Total expenses (excluding distributions) (.1) (.6) Realized gains (losses).44.6 Unrealized gains (losses) (.1) 1.2 Total increase (decrease) from operations B From net investment income (excluding dividends) (.6) From dividends (.9) (.13) From capital gains (.29) Return of capital Total distributions B,C (.9) (.49) Net assets, end of period B $ 1.26 $ 9.88 Net asset value (s) D $ 833 $ 7 Securities outstanding D 81,14 7,126 Management expense ratio E,N.98%.97% Management expense ratio before waivers or absorptions E,N.98%.97% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $

18 Financial Highlights continued Fidelity Canadian Asset Allocation Fund Series P4 Periods ended June 3, M Net assets, beginning of period B $ 9.88 $ 1. Total revenue.27.2 Total expenses (excluding distributions) (.1) (.2) Realized gains (losses).46 (.12) Unrealized gains (losses) (.8).3 Total increase (decrease) from operations B..36 From net investment income (excluding dividends) (.6) From dividends (.1) (.13) From capital gains (.29) Return of capital Total distributions B,C (.1) (.49) Net assets, end of period B $ 1.27 $ 9.88 Net asset value (s) D $ 33 $ 618 Securities outstanding D 32,626 62, Management expense ratio E,N.89%.89% Management expense ratio before waivers or absorptions E,N.9%.89% Trading expense ratio G.6%.7% Portfolio turnover rate H 2.88% 64.6% Net asset value per security, end of period $ $ Fidelity Canadian Asset Allocation Fund Series P Periods ended June 3, 217 O Net assets, beginning of period B $ 1. Total revenue.23 Total expenses (excluding distributions) (.7) Realized gains (losses).4 Unrealized gains (losses) (.3) Total increase (decrease) from operations B.31 From net investment income (excluding dividends) From dividends (.1) From capital gains Return of capital Total distributions B,C (.1) Net assets, end of period B $ 1.19 Net asset value (s) D $ 4,72 Securities outstanding D 466,221 Management expense ratio E,P.88% Management expense ratio before waivers or absorptions E,P.88% Trading expense ratio G.6% Portfolio turnover rate H 2.88% Net asset value per security, end of period $

19 Financial Highlights Footnotes A This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 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, 217 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, 217 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, (217:.1%, 216: %, 21: %, 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 1% 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, 21, 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 April 17, 213 (commencement of sale of securities) to June 3, 213. K For the period February, 216 (commencement of sale of securities) to June 3, 216. L 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. M For the period December 4, 21 (commencement of sale of securities) to June 3, 216. N Effective December 8, 21, 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 16, 216 (commencement of sale of securities) to June 3, 217. P 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. 17

20 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 1% 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.% 33.7% 66.3% Series B 1.8% 4.% 4.9% Series F.8% 1.% Series F.8% 1.% Series F8.8% 1.% Series T 2.% 48.49% 1.1% Series T8 2.% 33.61% 66.39% Series S 1.8% 4.% 4.9% Series S8 1.8% 4.% 4.9% Series E1 1.82% 4.79% 4.21% Series E1T 1.82% 4.79% 4.21% Series E2 1.8%.6% 44.44% Series E2T 1.8%.6% 44.44% Series E3 1.77% 6.34% 43.66% Series E3T 1.77% 6.34% 43.66% Series E4 1.72% 7.97% 42.3% Series E4T 1.72% 7.97% 42.3% Series E 1.7% 8.82% 41.18% Series ET 1.7% 8.82% 41.18% Series P1.82% 1.% Series P1T.82% 1.% Series P2.8% 1.% Series P3.77% 1.% Series P4.72% 1.% Series P.7% 1.% 18

21 Fidelity Canadian Asset Allocation Fund Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. Series A Series F Series B Commencement of Operations is April 17, Series F Series F Commencement of Operations is April 17, Series O

22 Fidelity Canadian Asset Allocation Fund Past Performance continued Series T Series E Series T8 Commencement of Operations is February, Series E1T Series S Commencement of Operations is February, Series E Series S Commencement of Operations is February, Series E2T Commencement of Operations is February, 216 2

23 Series E3 Series E Commencement of Operations is February, 216 Commencement of Operations is February, 216 Series E3T Series ET Commencement of Operations is February, 216 Commencement of Operations is February, 216 Series E4 Series P Commencement of Operations is February, 216 Commencement of Operations is December 4, 21 Series E4T Series P1T Commencement of Operations is February, 216 Commencement of Operations is December 4, 21 21

24 Fidelity Canadian Asset Allocation Fund Past Performance continued Series P2 Series P Commencement of Operations is December 4, 21 Commencement of Operations is December 4, 21 Series P3 Series P Commencement of Operations is December 4, 21 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 S&P/ TSX Composite Index, and the Fund s benchmark, as described below. 22

25 Past 1 year Past 3 years Past years Past 1 years Since Inception Average Annual Total Returns Fidelity Canadian Asset Allocation Fund Series A 3.3% 2.3%.8% 3.2% n/a Fidelity Canadian Asset Allocation Fund Series B 3.% 2.% 6.1% 3.4% n/a Fidelity Canadian Asset Allocation Fund Series F 4.7% 3.7% 7.3% 4.6% n/a Fidelity Canadian Asset Allocation Fund Series F 4.7% 3.7% n/a n/a 7.% Fidelity Canadian Asset Allocation Fund Series F8 4.7% 3.7% n/a n/a 7.6% Fidelity Canadian Asset Allocation Fund Series O.8% 4.9% 8.%.8% n/a Fidelity Canadian Asset Allocation Fund Series T 3.2% 2.3%.8% 3.2% n/a Fidelity Canadian Asset Allocation Fund Series T8 3.3% 2.3%.8% 3.2% n/a Fidelity Canadian Asset Allocation Fund Series S 3.% 2.% 6.1% 3.4% n/a Fidelity Canadian Asset Allocation Fund Series S8 3.% 2.% 6.1% 3.4% n/a Fidelity Canadian Asset Allocation Fund Series E1 3.6% n/a n/a n/a 7.4% Fidelity Canadian Asset Allocation Fund Series E1T 3.% n/a n/a n/a 7.3% Fidelity Canadian Asset Allocation Fund Series E2 3.6% n/a n/a n/a 7.4% Fidelity Canadian Asset Allocation Fund Series E2T 3.7% n/a n/a n/a 7.% Fidelity Canadian Asset Allocation Fund Series E3 3.7% n/a n/a n/a 7.% Fidelity Canadian Asset Allocation Fund Series E3T 3.7% n/a n/a n/a 7.% Fidelity Canadian Asset Allocation Fund Series E4 3.8% n/a n/a n/a 7.6% Fidelity Canadian Asset Allocation Fund Series E4T 3.8% n/a n/a n/a 7.6% Fidelity Canadian Asset Allocation Fund Series E 3.8% n/a n/a n/a 7.6% Fidelity Canadian Asset Allocation Fund Series ET 3.8% n/a n/a n/a 7.6% Fidelity Canadian Asset Allocation Fund Series P1 4.7% n/a n/a n/a.% Fidelity Canadian Asset Allocation Fund Series P1T 4.7% n/a n/a n/a.% Fidelity Canadian Asset Allocation Fund Series P2 4.8% n/a n/a n/a.6% Fidelity Canadian Asset Allocation Fund Series P3 4.8% n/a n/a n/a.6% Fidelity Canadian Asset Allocation Fund Series P4 4.9% n/a n/a n/a.7% Fidelity Canadian Asset Allocation Fund Blend Index 7.1% 3.2% 6.8% 4.4% 6.9% S&P/TSX Composite Index 11.% 3.1% 8.7% 3.9% 9.1% The period used for the since inception Fidelity Canadian Asset Allocation Fund Blend Index and S&P/TSX Composite Index returns are based on Series F which has been in existence the longest compared to all Series with less than 1 years of operations. A discussion of the performance of the Fund can be found in the Results of Operation section of this report. In the above table, we compare the Fund s annual compound returns with a broad index, the S&P/TSX Composite Index, and with a narrow index a blended index made up of 6.% S&P/TSX Capped Composite Index, 3.% FTSE TMX Canada Universe Bond Index and.% FTSE TMX Canada 91 Day T-Bill Index. Effective October 22, 27, the ScotiaMcLeod 91-day T-Bill Index was renamed the DEX 91-Day T-Bill Index. Effective October 22, 27, the Scotia Capital Universe Bond Index was renamed the DEX Universe Bond Index. As of January 1, 214, DEX was rebranded FTSE TMX Canada as a result of a merger of fixed-income businesses between FTSE Group and TMX Group. The benchmark s methodology remains the same. The S&P/TSX Composite Index is an index of stocks that are generally considered to represent the Canadian equity market. The S&P/TSX Capped Composite Index is the same as the S&P/TSX Composite Index except that it is adjusted quarterly so that no single stock has a relative weight in the index greater than 1.%. The FTSE TMX Canada Universe Bond Index is capitalization-weighted, with more than 9 Canadian bonds, and includes the highest quality bonds with terms-to-maturity of one to thirty years, designed to reflect the Canadian bond market. The FTSE TMX Canada 91 Day T-Bill Index is a measure of the Canadian treasury bill market. Each Series will have different returns because of differences in management fees and expenses. 23

26 Fidelity Canadian Asset Allocation Fund Summary of Investment Portfolio as at June 3, 217 Asset Mix % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 Canadian Equities Canadian Bonds Foreign Equities Foreign Bonds Canadian Preferred Securities.6.6 Foreign Preferred Securities..1 Cash and Cash Equivalents Net Other Assets (Liabilities).3. Sector Mix % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 Financials Energy Materials Consumer Staples Information Technology Consumer Discretionary Telecommunication Services Investment Companies Utilities Real Estate 1.9. Others (Individually Less Than 1%) Canadian Bonds Foreign Bonds Cash and Cash Equivalents Net Other Assets (Liabilities).3. Prior period industry classifications reflect the categories in place as of the date indicated and have not been adjusted to reflect current industry classifications. Derivative Exposure Geographic Mix % of Fund s Net Assets as at 6/3/17 % of Fund s Net Assets as at 6/3/16 Canada United States of America Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities).3. 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..1 AA A BBB BB and Below Not Rated Equities Short-Term Investments and Net Other Assets 7..4 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. % 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. 24

27 Top 2 Issuers % of Fund s Net Assets 1. Cash and Cash Equivalents Fidelity Emerging Markets Equity Investment Trust Series O Royal Bank of Canada The Toronto-Dominion Bank 3.6. Suncor Energy, Inc Enbridge, Inc TransCanada Corp Fidelity Canadian Money Market Fund Series O Metro, Inc Constellation Software, Inc BCE, Inc Canadian Natural Resources Ltd Brookfield Asset Management, Inc. 1.8 % of Fund s Net Assets 14. Loblaw Companies Ltd Restaurant Brands International, Inc Fidelity Canadian Short Term Fixed Income Investment Trust Series O Bank of Nova Scotia ishares Barclays TIPS Bond ETF Canadian Government * Province of Quebec * PrairieSky Royalty Ltd Bank of Montreal TELUS Corp Agnico Eagle Mines Ltd Market Vectors Gold Miners ETF 1. * Bond Issuer Total Fund Net Assets $,49,96, 1.7 Where applicable, the information in the above tables includes the Fund s pro-rata share of the investment in any Fidelity 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 3, Toronto ON MG 2N7 or by visiting our web site at or SEDAR at 2

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