Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Annual Management Report of Fund Performance November 3, 17

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

3 Annual Management Report of Fund Performance as at November 3, 17 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our website at www. fidelity.ca or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund. Management Discussion of Fund Performance Investment Objective and Strategies Investment Objective: Fidelity Canadian Growth Company Class (the Fund) aims to achieve long-term capital growth and seeks a return similar to Fidelity Canadian Growth Company Fund (the Underlying Fund), by investing substantially all of its assets in units of the Underlying Fund. The Underlying Fund, which is also managed by Fidelity, aims to achieve long-term capital growth by investing primarily in Canadian equity securities. Strategies: When buying and selling securities for the Underlying Fund, the portfolio manager examines each company s potential for success in light of its current financial condition, its industry position and economic and market conditions. The portfolio manager considers factors like growth potential, earnings estimates and quality of management. The Underlying Fund may invest in small, medium and large companies, but tends to focus on medium to large companies. It may invest up to approximately 49% of its assets in foreign securities and may hold cash and invest in fixed-income securities. Risk The risks associated with investing in the Fund are the same as for the Underlying Fund and remain as discussed in the prospectus. Any changes to the Underlying Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors who want to gain Canadian and foreign equity exposure, can handle the volatility of returns generally associated with equity investments and are willing to accept a medium level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity Canadian Growth Company Class, Series B, returned 19.1%, after fees and expenses, for the one-year period ended November 3, 17. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. Market overview: The broad Canadian equity markets, as represented by the S&P/TSX Composite Index, returned 9.6% for the one-year period ended November 3, 17. During the first 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. However, markets registered strong returns during the second half of the review period, mainly driven by rising oil prices. During the review period, the Bank of Canada increased its target overnight rate by a quarter of a percentage point two times, to end the period at 1.%, citing stronger-than-expected economic data. Factors affecting performance: The Fund s benchmark returned 12.2% during the period under review. The Fund s blended benchmark is a combination of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (3.%). The Fund s outperformance of the benchmark was attributable primarily to the Underlying Fund s investments in information technology and a lower-than-benchmark positioning in the energy sector. In the information technology sector, the Underlying Fund s exposures to U.S.-based software and services company Square and to U.S.-based video game company Take Two Interactive contributed to relative performance. In the energy sector, the Underlying Fund s lack of exposure to Canadian oil and gas company Enbridge contributed to relative performance. Among investments in other sectors, the Underlying Fund s holdings in semiconductor company Advanced Micro Devices, software and services company Shopify and paper and forest products company West Fraser Timber also contributed to relative performance. In contrast, the Underlying Fund s investments and lower-than-benchmark positioning in the financials sector detracted from relative performance. In the sector, the Underlying Fund s lower-than-benchmark exposure to Canadian bank Toronto-Dominion Bank and an investment in Canadian insurance and financial services company Manulife Financial detracted from relative performance. Among investments in other sectors, the Underlying Fund s holdings in gold mining company Detour Gold and technology hardware and equipment company Apple detracted from relative performance. The Underlying Fund had no exposure to Detour Gold and Apple at the end of the review period. 1

4 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued Portfolio changes: During the review period, exposures to the information technology and consumer discretionary sectors were increased, while exposures to the financials and energy sectors were decreased. In the information technology sector, positions were initiated in software and services companies PayPal and Square, which would both benefit from expected increased use of their electronic payments platforms. In the consumer discretionary sector, portfolio manager Mark Schmehl initiated positions in a number of companies with exposure to the online retailing space, where increased consumer demand is creating interesting growth opportunities. Significant new holdings in the sector include online retailers Amazon and Overstock.com. Among other sectors, the Underlying Fund initiated positions in Canadian bank Toronto-Dominion Bank, which the portfolio manager believes has a relatively robust balance sheet. In the telecommunication services sector, a position was initiated in Canadian telecommunications and media company Rogers, because of improving fundamentals as the company restructures. In contrast, exposure to the financials sector declined after the Underlying Fund exited positions in a number of U.S.-based companies; the portfolio manager sought to realize gains after their share prices had risen. The manager s view on the sector also shifted to a more neutral stance as he came to believe that certain U.S. regulatory changes may have been priced into company valuations. In the energy sector, the portfolio manager closed positions in several companies, believing oil and gas prices face relatively more headwinds and have relatively less upside potential. He also reduced exposure to the materials, industrials and consumer staples sectors, with more attractive opportunities being found elsewhere. Recent Developments Portfolio manager Mark Schmehl s investment approach remains focused on identifying positive change in company fundamentals and looking to add value by focusing on uncovering investment opportunities where business conditions are or could be improving. He has increased exposure to the U.S. by placing more focus on information technology stocks that he believes could benefit from growing trends toward online payment systems. He also placed a higher emphasis on U.S. consumer discretionary companies that could benefit from growing online retail sales. In the current market environment, Mr. Schmehl sees significant potential in companies with the innovative edge to dominate their respective industries, and in some cases create new industries altogether. As at November 3, 17, the Underlying Fund had its largest absolute exposure to the information technology sector, followed by the materials and consumer discretionary sectors. The Underlying Fund diverged the most from the benchmark sector weightings by having more exposure to the information technology sector and consumer discretionary sector. In contrast, the Underlying Fund had lower-than-benchmark exposures to financials and energy companies. In terms of country exposure, allocations to Canada and the U.S. accounted for over 9.% of the Underlying Fund s assets. 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 provides investment advice with respect to the Fund s investment portfolio and arranges for the acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $4,842, for the period ended November 3, 17. 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 $56, for the period ended November 3, 17. 2

5 Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for the period end of the years shown. This information is derived from the Fund s audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund s annual or semi-annual financial statements. Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series A Periods ended November 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.98) (.85) (.86) (.74) (.58) Realized gains (losses) Unrealized gains (losses) (1.63) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (1.68) Return of capital Total distributions B,C (.1) (1.68) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 71,855 $ 44,953 $ 24,76 $,657 $ 9,551 Securities outstanding D 1,664,884 1,234,61 711, , ,584 Management expense ratio E,F 2.47% 2.47% 2.5% 2.57% 2.58% Management expense ratio before waivers or absorptions E,F 2.57% 2.56% 2.56% 2.58% 2.58% Trading expense ratio G.29%.42%.23%.36%.44% Portfolio turnover rate H 2.92% 9.15% 22.4% 19.89% 12.37% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series B Periods ended November 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.92) (.8) (.8) (.69) (.54) Realized gains (losses) Unrealized gains (losses) (1.6) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (1.79) Return of capital Total distributions B,C (.1) (1.79) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 1,77 $ 58,96 $ 54,5 $ 36,328 $ 26,3 Securities outstanding D 2,297,618 1,565,369 1,518,859 1,143,425 98,153 Management expense ratio E,F 2.27% 2.27% 2.29% 2.33% 2.34% Management expense ratio before waivers or absorptions E,F 2.34% 2.33% 2.32% 2.34% 2.34% Trading expense ratio G.29%.42%.23%.36%.44% Portfolio turnover rate H 2.92% 9.15% 22.4% 19.89% 12.37% Net asset value per security, end of period $ $ $ $ $

6 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series F Periods ended November 3, Net assets, beginning of period B $ 43.4 $ $ $ 3.61 $.82 Total revenue Total expenses (excluding distributions) (.53) (.47) (.47) (.41) (.32) Realized gains (losses) Unrealized gains (losses) (1.44) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (.47) (2.56) Return of capital Total distributions B,C (.48) (2.56) Net assets, end of period B $ $ 43.4 $ $ $ 3.61 Net asset value (s) D $ 129,785 $ 72,92 $ 32,688 $ 25,745 $ 4,44 Securities outstanding D 2,512,6 1,67, ,372 72, ,878 Management expense ratio E,F 1.13% 1.13% 1.15% 1.19% 1.22% Management expense ratio before waivers or absorptions E,F 1.% 1.% 1.21% 1.% 1.22% Trading expense ratio G.29%.42%.23%.36%.44% Portfolio turnover rate H 2.92% 9.15% 22.4% 19.89% 12.37% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series F5 Periods ended November 3, I Net assets, beginning of period B $.14 $. Total revenue Total expenses (excluding distributions) (.25) (.4) Realized gains (losses).8 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.21) Return of capital (1.) (.25) Total distributions B,C (1.21) (.25) Net assets, end of period B $ $.14 Net asset value (s) D $ 2,412 $ 2 Securities outstanding D 5,42 15,377 Management expense ratio E,J 1.14% 1.17% Management expense ratio before waivers or absorptions E,J 1.% 1.22% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

7 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series F8 Periods ended November 3, I Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.24) (.2) Realized gains (losses).7 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.28) Return of capital (1.6) (.4) Total distributions B,C (1.88) (.4) Net assets, end of period B $ 22.1 $ Net asset value (s) D $ 1,589 $ 1 Securities outstanding D 72, Management expense ratio E,J 1.13%.82% Management expense ratio before waivers or absorptions E,J 1.% 1.23% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ 22.8 $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series T5 Periods ended November 3, 17 K Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.46) Realized gains (losses).7 Unrealized gains (losses) 3.92 Total increase (decrease) from operations B 3.53 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.92) Total distributions B,C (.92) Net assets, end of period B $ Net asset value (s) D $ 1,69 Securities outstanding D 72,771 Management expense ratio E,L 2.5% Management expense ratio before waivers or absorptions E,L 2.59% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $

8 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series T8 Periods ended November 3, 17 K Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.45) Realized gains (losses).7 Unrealized gains (losses) 4.95 Total increase (decrease) from operations B 4.57 From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.47) Total distributions B,C (1.47) Net assets, end of period B $ Net asset value (s) D $ 1,378 Securities outstanding D 64,64 Management expense ratio E,L 2.49% Management expense ratio before waivers or absorptions E,L 2.59% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series S5 Periods ended November 3, 17 K Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.42) Realized gains (losses).5 Unrealized gains (losses) 3.95 Total increase (decrease) from operations B 3.58 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.92) Total distributions B,C (.92) Net assets, end of period B $ Net asset value (s) D $ 1,89 Securities outstanding D 49,162 Management expense ratio E,L 2.26% Management expense ratio before waivers or absorptions E,L 2.32% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $

9 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series S8 Periods ended November 3, 17 K Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.43) Realized gains (losses).7 Unrealized gains (losses) 3.79 Total increase (decrease) from operations B 3.43 From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.47) Total distributions B,C (1.47) Net assets, end of period B $ Net asset value (s) D $ 1,138 Securities outstanding D 52,857 Management expense ratio E,L 2.33% Management expense ratio before waivers or absorptions E,L 2.4% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E1 Periods ended November 3, M Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.28) (.) Realized gains (losses).64.5 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 13.8 $ Net asset value (s) D $ 34,831 $ 17,439 Securities outstanding D 2,527,75 1,512,54 Management expense ratio E,N 2.22% 2.23% Management expense ratio before waivers or absorptions E,N 2.28% 2.29% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

10 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E1T5 Periods ended November 3, 17 O Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.26) Realized gains (losses).5 Unrealized gains (losses) 3.52 Total increase (decrease) from operations B 3.31 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.67) Total distributions B,C (.67) Net assets, end of period B $ Net asset value (s) D $ 269 Securities outstanding D 12,589 Management expense ratio E,P 2.16% Management expense ratio before waivers or absorptions E,P 2.22% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E2 Periods ended November 3, M Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.27) (.) Realized gains (losses).74.5 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ Net asset value (s) D $ 13,413 $ 9,221 Securities outstanding D 971, ,879 Management expense ratio E,N 2.17% 2.15% Management expense ratio before waivers or absorptions E,N 2.24% 2.21% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

11 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E2T5 Periods ended November 3, 17 O Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.27) Realized gains (losses).4 Unrealized gains (losses) 1.68 Total increase (decrease) from operations B 1.45 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.67) Total distributions B,C (.67) Net assets, end of period B $ Net asset value (s) D $ 138 Securities outstanding D 6,481 Management expense ratio E,P 2.23% Management expense ratio before waivers or absorptions E,P 2.29% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E3 Periods ended November 3, M Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.27) (.) Realized gains (losses).73.5 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ Net asset value (s) D $ 2,842 $ 1,789 Securities outstanding D 5, ,983 Management expense ratio E,N 2.16% 2.17% Management expense ratio before waivers or absorptions E,N 2.23% 2.23% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E3T5 Periods ended November 3, 17 O Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.26) Realized gains (losses).5 Unrealized gains (losses) 2.19 Total increase (decrease) from operations B 1.98 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.67) Total distributions B,C (.67) Net assets, end of period B $ Net asset value (s) D $ 2,332 Securities outstanding D 9,712 Management expense ratio E,P 2.17% Management expense ratio before waivers or absorptions E,P 2.24% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E4 Periods ended November 3, M Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.26) (.19) Realized gains (losses). Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.1) Return of capital Total distributions B,C (.1) Net assets, end of period B $ $ Net asset value (s) D $ 2,393 $ 3 Securities outstanding D 172,955 8,829 Management expense ratio E,N 2.8% 2.% Management expense ratio before waivers or absorptions E,N 2.15% 2.18% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

13 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series E5 Periods ended November 3, 17 O Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.12) Realized gains (losses).2 Unrealized gains (losses) 1.17 Total increase (decrease) from operations B 1.7 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 11.3 Net asset value (s) D $ 1,199 Securities outstanding D 4,494 Management expense ratio E,P 1.93% Management expense ratio before waivers or absorptions E,P 1.99% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P1 Periods ended November 3, Q Net assets, beginning of period B $.46 $. Total revenue Total expenses (excluding distributions) (.12) (.11) Realized gains (losses).47.3 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.12) (.62) Return of capital Total distributions B,C (.12) (.62) Net assets, end of period B $ $.46 Net asset value (s) D $ 46,63 $ 15,816 Securities outstanding D 3,751,445 1,57,74 Management expense ratio E,R 1.9% 1.8% Management expense ratio before waivers or absorptions E,R 1.15% 1.15% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P1T5 Periods ended November 3, 17 O Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.13) Realized gains (losses).5 Unrealized gains (losses).9 Total increase (decrease) from operations B.1 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.67) Total distributions B,C (.67) Net assets, end of period B $ Net asset value (s) D $ 663 Securities outstanding D 3,89 Management expense ratio E,P 1.9% Management expense ratio before waivers or absorptions E,P 1.16% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P2 Periods ended November 3, Q Net assets, beginning of period B $.46 $. Total revenue Total expenses (excluding distributions) (.12) (.) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.12) (.62) Return of capital Total distributions B,C (.12) (.62) Net assets, end of period B $ $.46 Net asset value (s) D $ 17,965 $ 6,345 Securities outstanding D 1,444,4 66,745 Management expense ratio E,R 1.4% 1.4% Management expense ratio before waivers or absorptions E,R 1.11% 1.11% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

15 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P2T5 Periods ended November 3, 17 S Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.8) Realized gains (losses).4 Unrealized gains (losses) 1.99 Total increase (decrease) from operations B 1.95 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.42) Total distributions B,C (.42) Net assets, end of period B $ 22.1 Net asset value (s) D $ 88 Securities outstanding D 39,995 Management expense ratio E,T 1.3% Management expense ratio before waivers or absorptions E,T 1.9% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P3 Periods ended November 3, Q Net assets, beginning of period B $.46 $. Total revenue Total expenses (excluding distributions) (.11) (.) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.13) (.62) Return of capital Total distributions B,C (.13) (.62) Net assets, end of period B $ $.46 Net asset value (s) D $ 9,16 $ 4,89 Securities outstanding D 735, ,255 Management expense ratio E,R.98%.98% Management expense ratio before waivers or absorptions E,R 1.5% 1.5% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

16 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P3T5 Periods ended November 3, 17 U Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.4) Realized gains (losses).3 Unrealized gains (losses).87 Total increase (decrease) from operations B.86 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.25) Total distributions B,C (.25) Net assets, end of period B $ Net asset value (s) D $ 1,244 Securities outstanding D 58,76 Management expense ratio E,V.98% Management expense ratio before waivers or absorptions E,V 1.4% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P4 Periods ended November 3, Q Net assets, beginning of period B $.48 $. Total revenue Total expenses (excluding distributions) (.) (.9) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.14) (.62) Return of capital Total distributions B,C (.14) (.62) Net assets, end of period B $ 12.5 $.48 Net asset value (s) D $ 1,148 $ 1,399 Securities outstanding D 91, ,54 Management expense ratio E,R.93%.93% Management expense ratio before waivers or absorptions E,R 1.% 1.% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

17 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P4T5 Periods ended November 3, 17 U Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.3) Realized gains (losses).1 Unrealized gains (losses) 1.54 Total increase (decrease) from operations B 1.52 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.25) Total distributions B,C (.25) Net assets, end of period B $ Net asset value (s) D $ 87 Securities outstanding D 4,68 Management expense ratio E,V.94% Management expense ratio before waivers or absorptions E,V 1.% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $ Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P5 Periods ended November 3, Q Net assets, beginning of period B $.48 $. Total revenue Total expenses (excluding distributions) (.) (.7) Realized gains (losses).71.2 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.14) (.62) Return of capital Total distributions B,C (.14) (.62) Net assets, end of period B $ $.48 Net asset value (s) D $ 7,742 $ 8,795 Securities outstanding D 619, ,896 Management expense ratio E,R.86%.87% Management expense ratio before waivers or absorptions E,R.93%.94% Trading expense ratio G.29%.42% Portfolio turnover rate H 2.92% 9.15% Net asset value per security, end of period $ $

18 Financial Highlights continued Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Series P5T5 Periods ended November 3, 17 U Net assets, beginning of period B $. Total revenue Total expenses (excluding distributions) (.3) Realized gains (losses).1 Unrealized gains (losses) 1.33 Total increase (decrease) from operations B 1.31 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.25) Total distributions B,C (.25) Net assets, end of period B $ Net asset value (s) D $ 7,733 Securities outstanding D 363,574 Management expense ratio E,V.88% Management expense ratio before waivers or absorptions E,V.94% Trading expense ratio G.29% Portfolio turnover rate H 2.92% Net asset value per security, end of period $

19 Financial Highlights Footnotes A B C D E F G H This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 13 follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 13 follow Canadian Generally Accepted Accounting Principles (Canadian GAAP). The net assets attributable to securityholders per security presented in the financial statements may differ from the net asset value calculated for fund pricing purposes. An explanation of these differences can be found in the notes to financial statements. For reporting periods ending after January 1, 17 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, 17 may not foot due to this rounding change. Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of securities outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per security. Distributions were paid in cash or reinvested in additional securities of the Fund, or both, and excludes any applicable distributions of management fee reduction to securityholders. This information is provided as at period end of the year shown. Management expense ratio is based on total expenses (excluding distributions, commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset values during the period, including the Fund s pro-rata share of estimated expenses incurred in any underlying investment fund, if applicable. Effective November 1, 14, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period, including the Fund s pro-rata share of estimated trading costs incurred in any underlying investment fund, if applicable. The Fund s portfolio turnover rate indicates how actively the Fund s portfolio adviser manages its portfolio investments. A portfolio turnover rate of % is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher the Fund s portfolio turnover rate in a year, the greater the trading costs payable by the Fund in the year, and the greater chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high portfolio turnover rate and the performance of the Fund. The portfolio turnover rate is calculated based on the lesser of purchases or sales of securities divided by the weighted average market value of the portfolio securities, excluding short-term securities. For periods greater than six months, but less than a full fiscal year, the portfolio turnover rate is annualized. I For the period September 16, 16 (commencement of sale of securities) to November 3, 16. J Effective September, 16, 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. K For the period January 6, 17 (commencement of sale of securities) to November 3, 17. L Effective January, 17, 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 February 5, 16 (commencement of sale of securities) to November 3, 16. N Effective February 9, 16, 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 April 21, 17 (commencement of sale of securities) to November 3, 17. P Effective April 25, 17, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. Q For the period December 4, 15 (commencement of sale of securities) to November 3, 16. R Effective December 8, 15, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. S For the period July 14, 17 (commencement of sale of securities) to November 3, 17. T Effective July 18, 17, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. U For the period September 22, 17 (commencement of sale of securities) to November 3, 17. V Effective September 26, 17, 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 of the Fund. The Fund pays Fidelity a monthly management fee for its services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed % of the fees earned by Fidelity during the period. For new Funds or Series the amounts presented may not be indicative of longer term operating periods. Management Fees Dealer Compensation Investment management, administration and other Series A 2.% 63.42% 36.58% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% % % Series T8 2.% 564.1% % Series S5 1.85% 54.5% 45.95% Series S8 1.85% 54.5% 45.95% Series E % 54.79% 45.21% Series E1T % 54.79% 45.21% Series E2 1.8% 55.56% 44.44% Series E2T5 1.8% 55.56% 44.44% Series E % 56.34% 43.66% Series E3T % 56.34% 43.66% Series E % 57.97% 42.3% Series E5 1.7% 58.82% 41.18% Series P1.825%.% Series P1T5.825%.% Series P2.8%.% Series P2T5.8%.% Series P3.775%.% Series P3T5.775%.% Series P4.725%.% Series P4T5.725%.% Series P5.7%.% Series P5T5.7%.% 18

21 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. The performance data shown for the period occurring prior to the commencement of operations of a series P or E is that of the corresponding series F or F5 (for series P) or B or S5 (for series E). Series F, F5, B and S5 have higher combined management and administration fees than the applicable series P and E. Had a series P or E existed since the commencement of operations of series F, F5, B or S5, the returns of the applicable series P or E would have been higher. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. Series A Series F Series B Commencement of Operations is September 16, Series F Series F - Commencement of Operations is September 16, Series T Commencement of Operations is January 6, 17 19

22 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Past Performance continued Series T8 Series E1T Commencement of Operations is January 6, 17 Commencement of Operations is April 21, 17 Series S5 Series E Commencement of Operations is January 6, 17 Commencement of Operations is February 5, 16 Series S8 Series E2T Commencement of Operations is January 6, 17 Commencement of Operations is April 21, 17 Series E1 Series E Commencement of Operations is February 5, 16 Commencement of Operations is February 5, 16

23 Series E3T5 Series P1T Commencement of Operations is April 21, 17 Commencement of Operations is April 21, 17 Series E4 Series P Commencement of Operations is February 5, 16 Series E5 Commencement of Operations is December 4, 15 Series P2T Commencement of Operations is April 21, 17 Series P1 Commencement of Operations is July 14, 17 Series P Commencement of Operations is December 4, 15 Commencement of Operations is December 4, 15 21

24 Fidelity Canadian Growth Company Class of the Fidelity Capital Structure Corp. Past Performance continued Series P3T5 Series P Commencement of Operations is September 22, 17 Series P4 Commencement of Operations is December 4, 15 Series P5T Commencement of Operations is December 4, 15 Commencement of Operations is September 22, 17 Series P4T Commencement of Operations is September 22, 17 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 5 years Past years Since Inception Average Annual Total Returns Fidelity Canadian Growth Company Class Series A 18.8% 13.6%.2% 8.8% n/a Fidelity Canadian Growth Company Class Series B 19.1% 13.8%.5% 9.% n/a Fidelity Canadian Growth Company Class Series F.5% 15.2% 21.9%.3% n/a Fidelity Canadian Growth Company Class Series F5.4% n/a n/a n/a 18.5% Fidelity Canadian Growth Company Class Series F8.5% n/a n/a n/a 18.6% Fidelity Canadian Growth Company Class Series E1 19.2% 13.9%.5% 9.% n/a Fidelity Canadian Growth Company Class Series E2 19.2% 13.9%.6% 9.1% n/a Fidelity Canadian Growth Company Class Series E3 19.2% 13.9%.5% 9.1% n/a Fidelity Canadian Growth Company Class Series E4 19.3% 14.%.6% 9.1% n/a Fidelity Canadian Growth Company Class Series E5 19.3% 13.9%.5% 9.1% n/a Fidelity Canadian Growth Company Class Series P1.5% 15.2% 21.9%.3% n/a Fidelity Canadian Growth Company Class Series P1T5.5% n/a n/a n/a 18.6% Fidelity Canadian Growth Company Class Series P2.6% 15.2% 21.9%.3% n/a Fidelity Canadian Growth Company Class Series P2T5.5% n/a n/a n/a 18.6% Fidelity Canadian Growth Company Class Series P3.6% 15.3% 22.%.3% n/a Fidelity Canadian Growth Company Class Series P3T5.5% n/a n/a n/a 18.6% Fidelity Canadian Growth Company Class Series P4.8% 15.4% 22.%.3% n/a Fidelity Canadian Growth Company Class Series P4T5.5% n/a n/a n/a 18.6% Fidelity Canadian Growth Company Class Series P5.7% 15.4% 22.%.3% n/a Fidelity Canadian Growth Company Class Series P5T5.5% n/a n/a n/a 18.6% Fidelity Canadian Growth Company Class Blend Index 12.2% 8.9% 12.7% 5.8% 14.5% S&P/TSX Composite Index 9.6% 6.% 8.8% 4.7% 12.3% The period used for the since inception Fidelity Canadian Growth Company Class Blend Index and S&P/TSX Composite Index returns are based on Series F5 which has been in existence the longest compared to all Series with less than years of operations. A discussion of the performance of the Fund can be found in the Results of Operations section of this report. For the blended benchmark, the S&P/TSX Completion Index was used from March 16, 7, to September 3, 8, and the blended index consisting of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (3.%) was used from October 1, 8, onwards. The blended benchmark was changed to its current blend concurrent with changes made to the investment strategies of this Fund that allow the portfolio manager greater flexibility to invest the Fund in larger-capitalization and non-domestic equity securities. For more information on the Fund s investment objectives and strategies, please refer to the Fund s Simplified Prospectus. The S&P/TSX Composite Index is an index of stocks that are generally considered to represent the Canadian equity market. The S&P/TSX Capped Composite Index is the same as the S&P/TSX Composite Index, except that it is adjusted quarterly so that no single stock has a relative weight in the Index greater than.%. The S&P 5 Index is a widely recognized index of 5 U.S. common stocks of large- and mid-capitalization companies. The S&P/TSX Completion Index is a market capitalization-weighted, total return index comprising all 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. Each Series will have different returns because of differences in management fees and expenses. 23