Fidelity Canadian Disciplined Equity Fund

Transcription

1 Fidelity Canadian Disciplined Equity Fund Semi-Annual Management Report of Fund Performance December 31,

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 Semi-Annual Management Report of Fund Performance as at December 31, Fidelity Canadian Disciplined Equity Fund This semi-annual management report of fund performance contains financial highlights but does not contain the complete semi-annual financial statements for the investment fund. You can get a copy of the semi-annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite, Toronto ON M5G 2N7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund. Management Discussion of Fund Performance Results of Operations Fidelity Canadian Disciplined Equity Fund (Fund), Series B, returned 5.4%, after fees and expenses, for the six-month period ended December 31,. The net returns of other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. Canadian equities rose during the review period, with the S&P/TSX Composite Index, broadly representative of the Canadian equity market, returning 8.3%. The Fund s benchmark, the S&P/TSX Capped Composite Index, is the same as the S&P/TSX Composite Index, except it is adjusted quarterly so that no single security has a relative weight in the index greater than %. Market Overview: Canadian markets gained on the back of strong economic activity. During the first half of the review period, Canadian equities were lifted by gains in the energy and financials sectors. Investor optimism about demand for oil coupled with concerns about supply drove oil prices higher while strong earnings results among banks benefited the financials sector. Markets continued their advance in the second half of the review period as a pick-up in global economic growth helped lift markets around the world. 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 underperformed its benchmark, attributable to certain holdings in the energy and materials sectors. In the energy sector, lowerthan-benchmark exposure to integrated oil company Cenovus Energy, as well as exposures to natural gas company Peyto Exploration & Development, and energy transportation firm Enbridge, detracted from relative performance. At the end of the review period, the Fund had no exposure to Peyto Exploration & Development. In the materials sector, exposure to gold producer Eldorado Gold, along with a lack of exposure to metals and mining company Teck Resources, detracted from relative performance. At the end of the review period, the Fund had no exposure to Eldorado Gold. Among other sectors, exposure to Restaurant Brands International, and to information services provider Thomson Reuters, detracted from relative performance. In contrast, the Fund s lower-than-benchmark exposure to the utilities sector contributed to relative performance as the sector generally underperformed the broader market. In addition, investments in the information technology sector, in particular to educational technology provider 2U, contributed to relative performance. In other sectors, exposures to metals and mining company First Quantum Minerals, integrated energy firm Suncor, apparel retailer Canada Goose, and a lack of exposure to Barrick Gold, contributed to relative performance during the review period. Portfolio Changes: During the six-month period ended December 31,, portfolio manager Mr. Andrew Marchese and the investment team kept sector weightings closely in line with those of the benchmark, with security selection driving incremental returns. While the Fund is neutrally positioned at the sector level, the Fund can deviate from the industry and company exposures of the benchmark. During the review period, the Fund s exposure to integrated oil and gas companies increased. Within this industry, the portfolio manager added exposure to Cenovus Energy, based on its improving balance sheet and to provide the portfolio with more exposure to oil. In contrast, exposure to the telecommunication services industry declined during the review period. In particular, the Fund s position in Telus was closed as the stock had performed as expected and the investment team found opportunities with greater upside potential elsewhere. Recent Developments Lead portfolio manager Mr. Andrew Marchese continues to believe the Canadian and U.S. economies are in the late phase of the economic cycle and the current market environment supports active management and stock selection. He believes equity valuations could be challenged, as growth in corporate profit margins across most industry sectors continues to face increasing headwinds. He is focused on attractively valued, high-quality investment opportunities that deliver lower cyclicality through durable earnings. Mr. Marchese remains positive on the equity markets over the long term. Macroeconomic analysis will continue to be checked against company fundamentals, with a focus on 1

4 Fidelity Canadian Disciplined Equity Fund Management Discussion of Fund Performance continued adding value through strong stock picking and identifying companies with attractive growth potential, strong management, and favourable risk/reward profiles. As at the end of December 31,, the Fund s largest absolute exposure was to the financials sector, followed by the energy and materials sectors. At the industry level, the Fund s largest absolute exposure was to the banking industry, followed by the diversified financials industry. The Fund deviated the most from the benchmark weightings by having more exposure to the diversified financials and real estate industries, and less exposure to the banking and insurance industries. 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 (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 $9,65, for the period ended December 31,. 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 $891, for the period ended December 31,. 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 $1, for the period ended December 31,. 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. 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 Disciplined Equity Fund Series A December 31, Periods ended June, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.5) (.96) (.88) (.93) (.79) (.67) Realized gains (losses) (.8) Unrealized gains (losses) (3.21) (.89) Total increase (decrease) from operations B (.81) From net investment income (excluding dividends) From dividends (.12) From capital gains (.36) Return of capital Total distributions B,C (.47) Net assets, end of period B $ 4.18 $ $ $ $ $ Net asset value (s) D $ 76,185 $ 84,986 $ 117,396 $ 179,618 $ 237,591 $ 258,296 Securities outstanding D 1,896,222 2,224,118 3,269,678 4,911,452 6,738,746 9,464,39 Management expense ratio E,F 2.44% 2.46% 2.47% 2.5% 2.53% 2.51% Management expense ratio before waivers or absorptions E,F 2.51% 2.51% 2.52% 2.53% 2.53% 2.51% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Canadian Disciplined Equity Fund Series B December 31, Periods ended June, Net assets, beginning of period B $ $ $ $ $ 27.6 $ Total revenue Total expenses (excluding distributions) (.47) (.89) (.82) (.86) (.72) (.61) Realized gains (losses) (.8) Unrealized gains (losses) (2.85) (.98) Total increase (decrease) from operations B (.41) From net investment income (excluding dividends) From dividends (.3) (.14) From capital gains (.42) Return of capital Total distributions B,C (.3) (.56) Net assets, end of period B $ 4.92 $ $ $ $ $ Net asset value (s) D $ 71,196 $ 714,54 $ 792,878 $ 9,324 $ 98,578 $ 881,71 Securities outstanding D 17,127,74 18,353,336 21,725,549 25,,184 27,428,1 31,921,424 Management expense ratio E,I 2.24% 2.25% 2.26% 2.28% 2.29% 2.29% Management expense ratio before waivers or absorptions E,I 2.28% 2.28% 2.29% 2.29% 2.29% 2.29% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $

6 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series F December 31, Periods ended June, Net assets, beginning of period B $ 43. $ 4.56 $ $ $.29 $ Total revenue Total expenses (excluding distributions) (.27) (.49) (.45) (.49) (.4) (.34) Realized gains (losses) (.8) Unrealized gains (losses) (2.49) (1.) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.56) (.51) (.27) (.7) (.26) (.6) From capital gains (.81) Return of capital Total distributions B,C (.56) (.51) (1.8) (.7) (.26) (.6) Net assets, end of period B $ $ 43. $ 4.56 $ $ $.25 Net asset value (s) D $ 88,531 $ 81, $ 61,985 $ 53,31 $ 4,69 $ 31,942 Securities outstanding D 1,957,447 1,883,935 1,5,553 1,285,252 1,31,622 1,54,581 Management expense ratio E,F 1.11% 1.% 1.11% 1.13% 1.15% 1.16% Management expense ratio before waivers or absorptions E,F 1.12% 1.13% 1.14% 1.15% 1.15% 1.16% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ 43.4 $ $ $ $.2885 Fidelity Canadian Disciplined Equity Fund Series F5 December 31, Periods ended June, J Net assets, beginning of period B $ $ 24.7 $ $ $.65 $. Total revenue Total expenses (excluding distributions) (.16) (.) (.28) (.32) (.29) (.6) Realized gains (losses) (.5) (.6) Unrealized gains (losses) (1.75) (2.17) Total increase (decrease) from operations B (.61) From net investment income (excluding dividends) From dividends (.) (.29) (.16) (.4) (.12) From capital gains (.49) Return of capital (.62) (1.25) (1.27) (1.14) (1.) (.17) Total distributions B,C (.92) (1.54) (1.92) (1.18) (1.12) (.17) Net assets, end of period B $ 24.9 $ $ 24.7 $ $ $.62 Net asset value (s) D $ 877 $ 892 $ 77 $ 482 $ 8 $ 1 Securities outstanding D 35,262 36,617 29,371 18,659 3,3 5 Management expense ratio E,F 1.15% 1.13% 1.13% 1.15% 1.18% 1.22% Management expense ratio before waivers or absorptions E,F 1.17% 1.16% 1.16% 1.18% 1.18% 1.22% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ 24.9 $ $ $ $ $

7 Fidelity Canadian Disciplined Equity Fund Series F8 December 31, Periods ended June, J Net assets, beginning of period B $ 22.4 $ $ $ $.55 $. Total revenue Total expenses (excluding distributions) (.14) (.27) (.26) (.31) (.28) (.6) Realized gains (losses) (.4) (.6) Unrealized gains (losses) (1.31) (.33) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.28) (.27) (.15) (.4) (.17) From capital gains (.46) Return of capital (.76) (1.53) (1.56) (1.59) (1.59) (.27) Total distributions B,C (1.4) (1.8) (2.18) (1.63) (1.76) (.27) Net assets, end of period B $ $ 22.4 $ $ $ $.52 Net asset value (s) D $ 817 $ 837 $ 622 $ 541 $ 347 $ 1 Securities outstanding D 36,43 37,422 27,681 22,55 13, Management expense ratio E,F 1.13% 1.12% 1.13% 1.15% 1.18% 1.22% Management expense ratio before waivers or absorptions E,F 1.14% 1.15% 1.16% 1.18% 1.18% 1.22% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $.5492 Fidelity Canadian Disciplined Equity Fund Series O December 31, Periods ended June, Net assets, beginning of period B $ $ $ $ $ $ 29.5 Total revenue Total expenses (excluding distributions) (.2) (.3) (.2) (.3) Realized gains (losses) (.9) Unrealized gains (losses) (2.49) (1.16) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (1.14) (1.6) (.4) (.53) (.7) (.42) From capital gains (1.23) Return of capital Total distributions B,C (1.14) (1.6) (1.63) (.53) (.7) (.42) Net assets, end of period B $ $ $ $ $ $ Net asset value (s) D $ 1,47,8 $ 1,482,184 $ 1,36,632 $ 1,169,95 $ 1,169,128 $ 967,97 Securities outstanding D,538,119 32,25,761 31,152,734 26,416,757 27,681,59 29,863,11 Management expense ratio % % % % % % Management expense ratio before waivers or absorptions % % % % % % Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $

8 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series T5 December 31, Periods ended June, Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.) (.4) (.38) (.42) (.38) (.33) Realized gains (losses) (.4) Unrealized gains (losses) (1.52) (.53) Total increase (decrease) from operations B (.43) From net investment income (excluding dividends) From dividends (.5) From capital gains (.16) Return of capital (.4) (.8) (.81) (.76) (.71) (.76) Total distributions B,C (.4) (.8) (1.2) (.76) (.71) (.76) Net assets, end of period B $ $ $ $ $ $ 13. Net asset value (s) D $ 342 $ 356 $ 469 $ 1,177 $ 1,498 $ 1,437 Securities outstanding D 21,854 23,347 31,25 76,282 91,494 7,915 Management expense ratio E,F 2.46% 2.46% 2.44% 2.48% 2.52% 2.5% Management expense ratio before waivers or absorptions E,F 2.52% 2.52% 2.5% 2.51% 2.52% 2.5% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Canadian Disciplined Equity Fund Series T8 December 31, Periods ended June, Net assets, beginning of period B $ $ $ $ 17.9 $ $ Total revenue Total expenses (excluding distributions) (.19) (.4) (.41) (.46) (.42) (.39) Realized gains (losses) (.2) Unrealized gains (losses) (1.56) (.47) Total increase (decrease) from operations B.7.87 (.44) From net investment income (excluding dividends) From dividends (.5) From capital gains (.16) Return of capital (.64) (1.28) (1.29) (1.) (1.) (1.39) Total distributions B,C (.64) (1.28) (1.5) (1.) (1.) (1.39) Net assets, end of period B $ $ $ $ $ 17.9 $ Net asset value (s) D $ 4,45 $ 7,721 $ 5,526 $,315 $ 17,977 $ 19,969 Securities outstanding D 287,871 53, , ,861 1,5,68 1,333,265 Management expense ratio E,F 2.39% 2.44% 2.48% 2.51% 2.53% 2.52% Management expense ratio before waivers or absorptions E,F 2.45% 2.49% 2.54% 2.54% 2.53% 2.52% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $

9 Fidelity Canadian Disciplined Equity Fund Series S5 December 31, Periods ended June, Net assets, beginning of period B $ $ $ $ $ $ 13. Total revenue Total expenses (excluding distributions) (.19) (.38) (.36) (.41) (.36) (.31) Realized gains (losses) (.3) Unrealized gains (losses) (1.5) (.42) Total increase (decrease) from operations B (.41) From net investment income (excluding dividends) From dividends (.1) (.6) From capital gains (.18) Return of capital (.41) (.82) (.83) (.78) (.72) (.77) Total distributions B,C (.42) (.82) (1.6) (.78) (.72) (.77) Net assets, end of period B $ 16.8 $ $ $ $ $ Net asset value (s) D $ 2,62 $ 2,751 $ 3,241 $ 3,714 $ 4,118 $ 3,223 Securities outstanding D 162, ,8 9, , ,69 237,455 Management expense ratio E,I 2.26% 2.28% 2.% 2.32% 2.33% 2.% Management expense ratio before waivers or absorptions E,I 2.29% 2.31% 2.33% 2.33% 2.33% 2.% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $ Fidelity Canadian Disciplined Equity Fund Series S8 December 31, Periods ended June, Net assets, beginning of period B $ $ $ $ $ $ 15.2 Total revenue Total expenses (excluding distributions) (.18) (.37) (.37) (.42) (.38) (.35) Realized gains (losses) (.3) Unrealized gains (losses) (1.17) (.51) Total increase (decrease) from operations B (.9) From net investment income (excluding dividends) From dividends (.2) (.6) From capital gains (.19) Return of capital (.65) (1.) (1.31) (1.32) (1.32) (1.41) Total distributions B,C (.67) (1.) (1.56) (1.32) (1.32) (1.41) Net assets, end of period B $ $ $ $ $ $ Net asset value (s) D $ 19,741 $ 22,45 $ 18,668 $ 18,732 $ 18,14 $ 14,185 Securities outstanding D 1,253,782 1,394,552 1,177,599 1,7,34 1,1, ,639 Management expense ratio E,I 2.23% 2.24% 2.26% 2.28% 2.28% 2.29% Management expense ratio before waivers or absorptions E,I 2.26% 2.27% 2.29% 2.28% 2.28% 2.29% Trading expense ratio G.6%.4%.4%.5%.9%.12% Portfolio turnover rate H 14.21% 26.15% 36.7% 31.21% 35.87% 48.59% Net asset value per security, end of period $ $ $ $ $ $

10 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series E1 December 31, Periods ended June, 16 K Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.14) (.26) (.9) Realized gains (losses) (.2).45.8 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.2) (.1) From capital gains Return of capital Total distributions B,C (.2) (.1) Net assets, end of period B $ $ $.9 Net asset value (s) D $ 88,687 $ 86,965 $ 4,248 Securities outstanding D 7,263,819 7,49,511 3,694,224 Management expense ratio E,L 2.18% 2.19% 2.21% Management expense ratio before waivers or absorptions E,L 2.21% 2.22% 2.24% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $ $.896 Fidelity Canadian Disciplined Equity Fund Series E1T5 December 31, Periods ended June, 16 K Net assets, beginning of period B $ $ 21. $. Total revenue Total expenses (excluding distributions) (.25) (.52) (.19) Realized gains (losses) (.2) Unrealized gains (losses).94 (.4) 2.12 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains Return of capital (.57) (1.13) (.47) Total distributions B,C (.58) (1.13) (.47) Net assets, end of period B $ $ $ 21. Net asset value (s) D $ 557 $ 1,18 $ 474 Securities outstanding D 25,227 47,38 22,36 Management expense ratio E,L 2.27% 2.28% 2.28% Management expense ratio before waivers or absorptions E,L 2.% 2.31% 2.31% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $ $

11 Fidelity Canadian Disciplined Equity Fund Series E2 December 31, Periods ended June, 16 K Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.13) (.25) (.9) Realized gains (losses) (.3).46.8 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.3) (.2) From capital gains Return of capital Total distributions B,C (.3) (.2) Net assets, end of period B $ $ $.9 Net asset value (s) D $ 12,863 $ 11,273 $ 4,321 Securities outstanding D 1,53,5 971,44 396,56 Management expense ratio E,L 2.8% 2.9% 2.14% Management expense ratio before waivers or absorptions E,L 2.11% 2.12% 2.17% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $ $.8988 Fidelity Canadian Disciplined Equity Fund Series E2T5 December 31, Periods ended June, 16 K Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.24) (.46) (.16) Realized gains (losses) (.4) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.5) (.5) From capital gains Return of capital (.56) (1.13) (.47) Total distributions B,C (.61) (1.18) (.47) Net assets, end of period B $ $ $ Net asset value (s) D $ 1 $ 1 $ 1 Securities outstanding D Management expense ratio E,L 2.9% 2.12% 1.98% Management expense ratio before waivers or absorptions E,L 2.43% 2.46% 2.4% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $ $

12 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series E3 December 31, Periods ended June, 16 K Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.13) (.24) (.8) Realized gains (losses) (.3).44.9 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.4) (.3) From capital gains Return of capital Total distributions B,C (.4) (.3) Net assets, end of period B $ $ $.9 Net asset value (s) D $ 3,143 $ 2,52 $ 1,487 Securities outstanding D 257, , ,398 Management expense ratio E,L 1.99% 1.99% 2.% Management expense ratio before waivers or absorptions E,L 2.2% 2.2% 2.3% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $ 11.6 $.915 Fidelity Canadian Disciplined Equity Fund Series E4 December 31, Periods ended June, 16 K Net assets, beginning of period B $ $.91 $. Total revenue Total expenses (excluding distributions) (.12) (.23) (.8) Realized gains (losses) (.2).45.7 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.5) (.4) From capital gains Return of capital Total distributions B,C (.5) (.4) Net assets, end of period B $ $ $.91 Net asset value (s) D $ 2,461 $ 3,244 $ 2,975 Securities outstanding D 1, , ,772 Management expense ratio E,L 1.92% 1.93% 1.95% Management expense ratio before waivers or absorptions E,L 1.95% 1.96% 1.98% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $ $.968

13 Fidelity Canadian Disciplined Equity Fund Series E5 December 31, Periods ended June, 16 K Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.11) (.24) (.8) Realized gains (losses) (.2).46.9 Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.5) (.5) From capital gains Return of capital Total distributions B,C (.5) (.5) Net assets, end of period B $ 12. $ $.9 Net asset value (s) D $ 1 $ 1 $ 1 Securities outstanding D 1 Management expense ratio E,L 1.91% 1.9% 1.96% Management expense ratio before waivers or absorptions E,L 1.91% 1.9% 1.96% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $ $.946 Fidelity Canadian Disciplined Equity Fund Series P1 December 31, Periods ended June, 16 M Net assets, beginning of period B $.86 $. $. Total revenue Total expenses (excluding distributions) (.6) (.12) (.6) Realized gains (losses) (.2) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.15) (.13) (.7) From capital gains (.) Return of capital Total distributions B,C (.15) (.13) (.27) Net assets, end of period B $ $.86 $. Net asset value (s) D $ 14,572 $ 13,423 $ 4,65 Securities outstanding D 1,282,766 1,235, ,614 Management expense ratio E,N 1.6% 1.5% 1.6% Management expense ratio before waivers or absorptions E,N 1.7% 1.7% 1.7% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $.865 $

14 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series P1T5 December 31, Periods ended June, 16 M Net assets, beginning of period B $.4 $ $. Total revenue Total expenses (excluding distributions) (.12) (.22) (.11) Realized gains (losses) (.7) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.27) (.26) (.13) From capital gains (.4) Return of capital (.51) (1.2) (.6) Total distributions B,C (.78) (1.28) (1.14) Net assets, end of period B $.45 $.4 $ Net asset value (s) D $ 764 $ 196 $ 134 Securities outstanding D 37,456 9,769 6,775 Management expense ratio E,N 1.1% 1.1% 1.1% Management expense ratio before waivers or absorptions E,N 1.3% 1.3% 1.2% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $.449 $.356 $ Fidelity Canadian Disciplined Equity Fund Series P2 December 31, Periods ended June, 16 M Net assets, beginning of period B $.86 $. $. Total revenue Total expenses (excluding distributions) (.7) (.12) (.6) Realized gains (losses) (.3) Unrealized gains (losses).62 (.19).47 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.15) (.14) (.7) From capital gains (.) Return of capital Total distributions B,C (.15) (.14) (.27) Net assets, end of period B $ $.86 $. Net asset value (s) D $ 2,66 $ 1,321 $ 26 Securities outstanding D 181, ,635 25,465 Management expense ratio E,N 1.3% 1.1% 1.3% Management expense ratio before waivers or absorptions E,N 1.5% 1.4% 1.5% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $.8577 $

15 Fidelity Canadian Disciplined Equity Fund Series P2T5 December 31, Periods ended June, O Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.) (.) Realized gains (losses) (.2).41 Unrealized gains (losses) 1.11 (.79) Total increase (decrease) from operations B 1.24 (.23) From net investment income (excluding dividends) From dividends (.27) From capital gains Return of capital (.5) (.5) Total distributions B,C (.77) (.5) Net assets, end of period B $ $ Net asset value (s) D $ 43 $ 331 Securities outstanding D 2,215 17,141 Management expense ratio E,P.96%.95% Management expense ratio before waivers or absorptions E,P.98%.98% Trading expense ratio G.6%.4% Portfolio turnover rate H 14.21% 26.15% Net asset value per security, end of period $ $ Fidelity Canadian Disciplined Equity Fund Series P3 December 31, Periods ended June, 16 M Net assets, beginning of period B $.86 $.21 $. Total revenue Total expenses (excluding distributions) (.6) (.11) (.5) Realized gains (losses) (.7) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.16) (.15) (.7) From capital gains (.) Return of capital Total distributions B,C (.16) (.15) (.27) Net assets, end of period B $ $.86 $.21 Net asset value (s) D $ 323 $ 5 $ 174 Securities outstanding D 28,452 28,63 17,52 Management expense ratio E,N.97%.92%.98% Management expense ratio before waivers or absorptions E,N.98%.95%.99% Trading expense ratio G.6%.4%.4% Portfolio turnover rate H 14.21% 26.15% 36.7% Net asset value per security, end of period $ $.864 $.5 13

16 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series P3T5 December 31, Periods ended June, Q Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.8) (.6) Realized gains (losses) (.2).29 Unrealized gains (losses) 1. (.61) Total increase (decrease) from operations B 1.15 (.16) From net investment income (excluding dividends) From dividends (.) From capital gains Return of capital (.5) (.5) Total distributions B,C (.8) (.5) Net assets, end of period B $ 19.7 $ Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio E,R.81%.82% Management expense ratio before waivers or absorptions E,R.81%.82% Trading expense ratio G.6%.4% Portfolio turnover rate H 14.21% 26.15% Net asset value per security, end of period $ $ Fidelity Canadian Disciplined Equity Fund Series P4 December 31, Periods ended June, Q Net assets, beginning of period B $ 9.92 $. Total revenue Total expenses (excluding distributions) (.5) (.3) Realized gains (losses) (.1) (.7) Unrealized gains (losses).54 (.51) Total increase (decrease) from operations B.61 (.49) From net investment income (excluding dividends) From dividends (.16) From capital gains Return of capital Total distributions B,C (.16) Net assets, end of period B $.37 $ 9.92 Net asset value (s) D $ 26 $ 24 Securities outstanding D 2,56 2,468 Management expense ratio E,R.85%.84% Management expense ratio before waivers or absorptions E,R.86%.86% Trading expense ratio G.6%.4% Portfolio turnover rate H 14.21% 26.15% Net asset value per security, end of period $.3671 $

17 Fidelity Canadian Disciplined Equity Fund Series P5 December 31, Periods ended June, Q Net assets, beginning of period B $ 9.92 $. Total revenue Total expenses (excluding distributions) (.5) (.4) Realized gains (losses) (.2).14 Unrealized gains (losses).56 (.32) Total increase (decrease) from operations B.62 (.) From net investment income (excluding dividends) From dividends (.16) From capital gains Return of capital Total distributions B,C (.16) Net assets, end of period B $.36 $ 9.92 Net asset value (s) D $ 7,253 $ 6,668 Securities outstanding D 699, ,411 Management expense ratio E,R.79%.79% Management expense ratio before waivers or absorptions E,R.8%.81% Trading expense ratio G.6%.4% Portfolio turnover rate H 14.21% 26.15% Net asset value per security, end of period $.3652 $

18 Financial Highlights continued Financial Highlights Footnotes A B C D E F G H I 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, per security comparative figures (except for net asset value per security, end of period) have been conformed to the current rounding presentation of two decimal places. As a result, reporting periods ending prior to January 1, may not foot due to this rounding change. Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of securities outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per security. Distributions were paid in cash or reinvested in additional securities of the Fund, or both, and excludes any applicable distributions of management fee reduction to securityholders. 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. 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. Effective October 1, 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. J For the period April 17, 13 (commencement of sale of securities) to June, 13. K For the period February 5, 16 (commencement of sale of securities) to June, 16. L 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. M For the period December 4, 15 (commencement of sale of securities) to June, 16. N 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. O For the period January 6, (commencement of sale of securities) to June,. P Effective January,, 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 January 26, (commencement of sale of securities) to June,. R Effective January,, 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. 16

19 Management and Advisory Fees Fidelity serves as manager and investment advisor of the Fund. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for the general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed % of the fees earned by Fidelity during the period. For new Funds or Series the amounts presented may not be indicative of longer term operating periods. Management Fees Dealer Compensation Investment management, administration and other Series A 2.% 34.33% 65.67% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 78.48% 21.52% Series T8 2.% 5.26% 94.74% 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 E % 57.97% 42.3% Series E % 59.7% 4.% Series P1.825%.% Series P1T5.825%.% Series P2.8%.% Series P2T5.8%.% Series P3.775%.% Series P3T5.775%.% Series P4.725%.% Series P5.675%.% 17

20 Fidelity Canadian Disciplined Equity 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. 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. For each Series in the Year-by-Year Returns table below, the most recent returns stated are for the current six month period. Series A Series F Series B Commencement of Operations is April 17, Series F Series F - Commencement of Operations is April 17, Series O

21 Series T5 Series E Series T8 Commencement of Operations is February 5, Series E1T Series S Commencement of Operations is February 5, Series E Series S Commencement of Operations is February 5, Series E2T Commencement of Operations is February 5, 16 19

22 Fidelity Canadian Disciplined Equity Fund Past Performance continued Series E3 Series P1T Commencement of Operations is February 5, 16 Series E4 Commencement of Operations is December 4, 15 Series P Commencement of Operations is February 5, 16 Series E5 Commencement of Operations is December 4, 15 Series P2T Commencement of Operations is February 5, 16 Series P1 Commencement of Operations is January 6, Series P Commencement of Operations is December 4, 15 Commencement of Operations is December 4, 15

23 Series P3T Commencement of Operations is January 26, Series P Commencement of Operations is January 26, Series P Commencement of Operations is January 26, 21

24 Fidelity Canadian Disciplined Equity Fund Summary of Investment Portfolio as at December 31, Sector Mix % of Fund s Net Assets as at 12/31/17 % of Fund s Net Assets as at 6//17 Financials Energy Materials Industrials Consumer Discretionary Real Estate Consumer Staples Information Technology Telecommunication Services Utilities Others (Individually Less Than 1%).1.2 Cash and Cash Equivalents Net Other Assets (Liabilities). 1.5 Top Issuers % of Fund s Net Assets 1. The Toronto-Dominion Bank Royal Bank of Canada Suncor Energy, Inc Canadian National Railway Co Enbridge, Inc Brookfield Asset Management, Inc TransCanada Corp Rogers Communications, Inc Canadian Natural Resources Ltd. 3.. Restaurant Brands International, Inc Sun Life Financial, Inc Alimentation Couche-Tard, Inc Cash and Cash Equivalents General Growth Properties, Inc Thomson Reuters Corp Loblaw Companies Ltd Fortis, Inc Franco-Nevada Corp Brookfield Property Partners LP 1.6. First Quantum Minerals Ltd Canadian Apartment Properties (REIT) Agnico Eagle Mines Ltd CGI Group, Inc Wheaton Precious Metals Corp EOG Resources, Inc Total Fund Net Assets $2,496,581, The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 22