Fidelity Greater Canada Fund

Transcription

1 Annual Report June 30, 2018

2 Financial Statements Statements of Financial Position Amounts in thousands of Canadian Dollars (except per security amounts) As at June 30, 2018 June 30, 2017 Current assets (Note 3) Investments at fair value through profit or loss (Note 8) $ 182,663 $ 203,270 Cash 93 2,683 Receivable for investments sold 584 4,385 Other receivables 2 20 Accrued interest and dividends receivable Subscriptions receivable , ,146 Current liabilities (Note 3) Payable for investments purchased 50 7,771 Redemptions payable Distributions payable (Note 5) 8 13 Management and advisory fees payable (Note 4) Other payables to affiliates (Note 4) Other payables and accrued expenses (Notes 4 and 5) ,404 Net assets attributable to securityholders (Notes 3 and 6) $ 182,922 $ 202,742 Net assets attributable to securityholders per Series and per security (Note 6) Series A: ($25,776 and $34,171, respectively) $ $ Series B: ($45,360 and $53,601, respectively) $ $ Series F: ($27,599 and $29,078, respectively) $ $ Series F5: ($108 and $55, respectively) $ $ Series F8: ($12 and $62, respectively) $ $ Series O: ($58,420 and $56,357, respectively) $ $ Series T5: ($379 and $722, respectively) $ $ Series T8: ($239 and $1,059, respectively) $ $ Series S5: ($357 and $380, respectively) $ $ Series S8: ($658 and $1,261, respectively) $ $ Series E1: ($10,362 and $11,437, respectively) $ $ Series E1T5: ($123 and $150, respectively) $ $ Series E2: ($1,437 and $1,360, respectively) $ $ Series E2T5: ($952 and $667, respectively) $ $ Series E3: ($232 and $384, respectively) $ $ Series E4: ($676 and $632, respectively) $ $ Series P1: ($8,316 and $8,953, respectively) $ $ Series P1T5: ($240 and $205, respectively) $ $ Series P2: ($1,513 and $1,957, respectively) $ $ Series P3: ($1 and $251, respectively) $ $ Series P4: ($162 and $-, respectively) $ $ 2

3 Financial Statements continued Statements of Comprehensive Income Amounts in thousands of Canadian Dollars (except per security amounts) For the periods ended June 30, Investment income (Note 3) Interest $ 218 $ 364 Dividends 2,933 2,263 Security lending Net gain (loss) on investments Net realized gain (loss) on investments 6,124 16,353 Change in net unrealized appreciation (depreciation) on investments 2, ,386 16,560 Net gain (loss) on foreign currencies Net realized gain (loss) on foreign currency transactions (304) 14 Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies 5 (3) (299) 11 Total investment income (loss) 11,297 19,208 Operating expenses (Note 4) Management and advisory fees 2,079 2,396 Administration fees Independent Review Committee fees Commissions and other portfolio costs Foreign taxes withheld (Note 5) Sales tax Total operating expenses 3,234 3,662 Expenses waived (Note 4) (49) (54) Net operating expenses 3,185 3,608 Net increase (decrease) in net assets attributable to securityholders from operations $ 8,112 $ 15,600 Increase (decrease) in net assets attributable to securityholders from operations per Series (Note 3) Series A $ 827 $ 2,300 Series B $ 1,549 $ 4,268 Series F $ 1,362 $ 1,762 Series F5 $ 4 $ 5 Series F8 $ 2 $ 2 Series O $ 3,322 $ 5,485 Series T5 $ 5 $ 54 Series T8 $ (3) $ 72 Series S5 $ 14 $ 47 Series S8 $ 19 $ 81 Series E1 $ 381 $ 834 Series E1T5 $ 4 $ 30 Series E2 $ 59 $ 77 Series E2T5 $ 44 $ 2 Series E3 $ 3 $ 50 Series E4 $ 26 $ 12 Series P1 $ 408 $ 409 Series P1T5 $ 11 $ 3 Series P2 $ 69 $ 108 Series P3 $ (2) $ (1) Series P4 $ 8 $ 3

4 Financial Statements continued Statements of Comprehensive Income continued Amounts in thousands of Canadian Dollars (except per security amounts) For the periods ended June 30, Increase (decrease) in net assets attributable to securityholders from operations per Series per security (Notes 3 and 6) Series A $.33 $.78 Series B $.38 $.86 Series F $.60 $.90 Series F5 $ 1.00 $ 1.14 Series F8 $.97 $ 1.17 Series O $.78 $ 1.24 Series T5 $.15 $ 1.00 Series T8 $ (.06) $.76 Series S5 $.56 $ 1.33 Series S8 $.25 $.68 Series E1 $.42 $.84 Series E1T5 $.72 $ 2.17 Series E2 $.52 $.76 Series E2T5 $.92 $.05 Series E3 $.16 $.87 Series E4 $.47 $.59 Series P1 $.47 $.66 Series P1T5 $ 1.03 $.30 Series P2 $.42 $.73 Series P3 $ (.14) $ (.37) Series P4 $.55 $ 4

5 Financial Statements continued Statements of Changes in Net Assets Attributable to Securityholders Amounts in thousands of Canadian Dollars For the period ended June 30, 2018 Total Series A Series B Series F Series F5 Series F8 Net assets attributable to securityholders, beginning of period $ 202,742 $ 34,171 $ 53,601 $ 29,078 $ 55 $ 62 Increase (decrease) in net assets attributable to securityholders from operations 8, ,549 1, Management fee reduction (24) (1) (18) (5) Return of capital (211) (4) (2) (235) (1) (18) (5) (4) (2) Proceeds from sale of securities 59,001 2,304 20,999 13, Reinvestment of distributions Amounts paid upon redemption of securities (86,819) (11,526) (30,789) (16,041) (75) (60) (27,697) (9,221) (9,772) (2,836) 53 (50) Net assets attributable to securityholders, end of period $ 182,922 $ 25,776 $ 45,360 $ 27,599 $ 108 $ 12 For the period ended June 30, 2018 Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to securityholders, beginning of period $ 56,357 $ 722 $ 1,059 $ 380 $ 1,261 Increase (decrease) in net assets attributable to securityholders from operations 3,322 5 (3) Management fee reduction Return of capital (20) (36) (17) (66) (20) (36) (17) (66) Proceeds from sale of securities 11, Reinvestment of distributions Amounts paid upon redemption of securities (12,716) (350) (879) (432) (909) (1,259) (328) (781) (20) (556) Net assets attributable to securityholders, end of period $ 58,420 $ 379 $ 239 $ 357 $ 658 For the period ended June 30, 2018 Series E1 Series E1T5 Series E2 Series E2T5 Series E3 Net assets attributable to securityholders, beginning of period $ 11,437 $ 150 $ 1,360 $ 667 $ 384 Increase (decrease) in net assets attributable to securityholders from operations Management fee reduction Return of capital (6) (49) (6) (49) Proceeds from sale of securities 3, Reinvestment of distributions 5 Amounts paid upon redemption of securities (4,466) (45) (901) (254) (1,456) (25) (155) Net assets attributable to securityholders, end of period $ 10,362 $ 123 $ 1,437 $ 952 $ 232 5

6 Financial Statements continued Statements of Changes in Net Assets Attributable to Securityholders continued For the period ended June 30, 2018 Series E4 Series P1 Series P1T5 Series P2 Series P3 Net assets attributable to securityholders, beginning of period $ 632 $ 8,953 $ 205 $ 1,957 $ 251 Increase (decrease) in net assets attributable to securityholders from operations (2) Management fee reduction Return of capital (11) (11) Proceeds from sale of securities 64 4, , Reinvestment of distributions 11 Amounts paid upon redemption of securities (46) (5,169) (2) (1,535) (623) 18 (1,045) 35 (513) (248) Net assets attributable to securityholders, end of period $ 676 $ 8,316 $ 240 $ 1,513 $ 1 For the period ended June 30, 2018 Series P4 Net assets attributable to securityholders, beginning of period $ Increase (decrease) in net assets attributable to securityholders from operations 8 Management fee reduction Return of capital Proceeds from sale of securities 155 Reinvestment of distributions Amounts paid upon redemption of securities (1) 154 Net assets attributable to securityholders, end of period $ 162 For the period ended June 30, 2017 Total Series A Series B Series F Series F5 Series F8 Net assets attributable to securityholders, beginning of period $ 183,419 $ 31,428 $ 61,583 $ 16,309 $ 2 $ 2 Increase (decrease) in net assets attributable to securityholders from operations 15,600 2,300 4,268 1, From net investment income (18) (3) (4) (2) From net realized gain (12,748) (1,819) (3,031) (1,631) (15) Management fee reduction (28) (2) (20) (6) Return of capital (292) (4) (2) (13,086) (1,824) (3,055) (1,639) (19) (2) Proceeds from sale of securities 115,502 13,573 31,373 31, Reinvestment of distributions 12,265 1,740 2,992 1, Amounts paid upon redemption of securities (110,958) (13,046) (43,560) (19,637) (221) 16,809 2,267 (9,195) 12, Net assets attributable to securityholders, end of period $ 202,742 $ 34,171 $ 53,601 $ 29,078 $ 55 $ 62 6

7 Financial Statements continued Statements of Changes in Net Assets Attributable to Securityholders continued For the period ended June 30, 2017 Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to securityholders, beginning of period $ 55,548 $ 707 $ 958 $ 1,116 $ 310 Increase (decrease) in net assets attributable to securityholders from operations 5, From net investment income (7) From net realized gain (4,635) (43) (57) (20) (102) Management fee reduction Return of capital (38) (83) (24) (106) (4,642) (81) (140) (44) (208) Proceeds from sale of securities 8, ,968 Reinvestment of distributions 4, Amounts paid upon redemption of securities (13,643) (220) (157) (1,257) (1,086) (34) (739) 1,078 Net assets attributable to securityholders, end of period $ 56,357 $ 722 $ 1,059 $ 380 $ 1,261 For the period ended June 30, 2017 Series E1 Series E1T5 Series E2 Series E2T5 Series E3 Net assets attributable to securityholders, beginning of period $ 10,277 $ 1 $ 977 $ $ 765 Increase (decrease) in net assets attributable to securityholders from operations From net investment income (1) From net realized gain (631) (36) (59) (50) Management fee reduction Return of capital (15) (15) (632) (51) (59) (15) (50) Proceeds from sale of securities 10, , Reinvestment of distributions Amounts paid upon redemption of securities (9,708) (726) (954) (620) (381) Net assets attributable to securityholders, end of period $ 11,437 $ 150 $ 1,360 $ 667 $ 384 For the period ended June 30, 2017 Series E4 Series P1 Series P1T5 Series P2 Series P3 Net assets attributable to securityholders, beginning of period $ 1 $ 3,078 $ $ 356 $ 1 Increase (decrease) in net assets attributable to securityholders from operations (1) From net investment income (1) From net realized gain (492) (127) Management fee reduction Return of capital (5) (493) (5) (127) Proceeds from sale of securities , , Reinvestment of distributions Amounts paid upon redemption of securities (4,472) (1,626) (25) 619 5, , Net assets attributable to securityholders, end of period $ 632 $ 8,953 $ 205 $ 1,957 $ 251 7

8 Financial Statements continued Statements of Changes in Net Assets Attributable to Securityholders continued For the period ended June 30, 2017 Series P4 Net assets attributable to securityholders, beginning of period $ Increase (decrease) in net assets attributable to securityholders from operations From net investment income From net realized gain Management fee reduction Return of capital Proceeds from sale of securities Reinvestment of distributions Amounts paid upon redemption of securities Net assets attributable to securityholders, end of period $ 8

9 Financial Statements continued Statements of Cash Flows Amounts in thousands of Canadian Dollars For the periods ended June 30, Cash flows from (used in) operating activities: Purchases of investments and derivatives $ (260,102) $ (295,240) Proceeds from sale and maturity of investments and derivatives 284, ,697 Cash receipts from dividend income 2,790 2,211 Cash receipts from interest income Cash receipts from other investment income Cash paid for operating expenses (3,149) (3,523) Net cash from (used in) operating activities 24,686 (1,471) Cash flows from (used in) financing activities: Distributions to securityholders net of reinvestments (119) (820) Proceeds from sales of securities 42,579 63,013 Amounts paid upon redemption of securities (69,756) (58,022) Net cash from (used in) financing activities (27,296) 4,171 Net change in cash (2,610) 2,700 Foreign exchange gain (loss) on cash 20 (17) Cash, beginning of period 2,683 Cash, end of period $ 93 $ 2,683 9

10 Schedule of Investments June 30, 2018 Showing Percentage of Net Assets Attributable to Securityholders (Net Assets) Equities 72.9% Shares / Units Cost (000s) Market Value (000s) Canada 50.5% CONSUMER DISCRETIONARY 7.0% Canada Goose Holdings, Inc. 4,876 $ 409 $ 377 Cineplex, Inc. 25, Cogeco Communications, Inc. 20,000 1,344 1,302 Cryptostar, Inc. (a) 308, D Box Technologies, Inc. Class A 3,200,000 1, Restaurant Brands International, Inc. 75,000 5,292 5,948 Shaw Communications, Inc.: Class B 97,500 2,669 2,611 Series A, 4.50% 50, TOTAL CONSUMER DISCRETIONARY 12,565 12,760 CONSUMER STAPLES 16.4% Alimentation Couche Tard, Inc. Class B (sub. vtg.) 200,000 12,256 11,422 Loblaw Companies Ltd. 166,000 10,768 11,222 Metro, Inc. Class A (sub. vtg.) 166,615 3,037 7,446 TOTAL CONSUMER STAPLES 26,061 30,090 ENERGY 6.4% Advantage Oil & Gas Ltd. 175, Peyto Exploration & Development Corp. 160,000 3,056 1,619 PHX Energy Services Corp. 450,000 1, PrairieSky Royalty Ltd. 105,000 2,711 2,725 Precision Drilling Corp. 415,000 1,564 1,805 Raging River Exploration, Inc. 6, Tourmaline Oil Corp. 45, ,057 TransCanada Corp. 15, Western Energy Services Corp. 1,750,000 3,666 1,873 TOTAL ENERGY 14,747 11,649 FINANCIALS 5.8% Adept Mind (a) 404,000 1,328 1,314 Element AI Series A (a) 133,115 2,048 1,972 Great West Lifeco, Inc. 21, Pinetree Capital Ltd. 189, Thalmic Labs, Inc. Series A (a) 93, Thomson Reuters Corp. 50,000 2,536 2,653 TMX Group Ltd. 35,000 2,312 3,016 Trisura Group Ltd TOTAL FINANCIALS 9,896 10,665 HEALTH CARE 0.4% Imagia Cybernetics, Inc. Series A3 (a) 237, Soundbite Medical Solutions, Inc. Series A, (a) 40, TOTAL HEALTH CARE INDUSTRIALS 0.9% Clearpath Robotics, Inc. Series B (a) 32,480 1, SNC Lavalin Group, Inc. 12, TOTAL INDUSTRIALS 1,688 1,683 INFORMATION TECHNOLOGY 5.1% CGI Group, Inc. Class A (sub. vtg.) 45,000 2,832 3,749 Constellation Software, Inc. 5,400 2,174 5,506 TOTAL INFORMATION TECHNOLOGY 5,006 9,255 MATERIALS 2.5% Arizona Mining, Inc. 75, Franco Nevada Corp. 25,000 2,219 2,399 Shares / Units Cost (000s) Market Value (000s) Mason Graphite, Inc. 622,800 $ 448 $ 841 Wheaton Precious Metals Corp. 30, TOTAL MATERIALS 3,895 4,573 TELECOMMUNICATION SERVICES 3.1% Rogers Communications, Inc. Class B (non vtg.) 90,000 5,331 5,620 UTILITIES 2.9% Canadian Utilities Ltd. Class A (non vtg.) 40,000 1,268 1,328 Fortis, Inc. 50,000 2,116 2,101 Hydro One Ltd. (b) 90,000 1,841 1,804 TOTAL UTILITIES 5,225 5,233 TOTAL CANADA 85,246 92,360 Israel 1.8% INFORMATION TECHNOLOGY 1.8% Allot Communications Ltd. 469,400 3,143 3,308 Sweden 0.5% INDUSTRIALS 0.5% Loomis AB (B Shares) 18, United Kingdom 3.5% CONSUMER STAPLES 3.2% British American Tobacco PLC (United Kingdom) 18,000 1,329 1,196 Fever Tree Drinks PLC 7, Imperial Tobacco Group PLC 85,000 4,161 4,162 TOTAL CONSUMER STAPLES 5,775 5,799 INFORMATION TECHNOLOGY 0.3% Foreverhold Ltd. (a) GetBusy PLC 320, TOTAL INFORMATION TECHNOLOGY TOTAL UNITED KINGDOM 6,238 6,455 United States of America 16.6% CONSUMER DISCRETIONARY 5.7% Cars.com, Inc. 47,500 1,803 1,773 Chipotle Mexican Grill, Inc. 11,750 4,485 6,663 GameStop Corp. Class A 50, The Walt Disney Co. 7, TOTAL CONSUMER DISCRETIONARY 8,073 10,359 FINANCIALS 0.5% Currency Exchange International Corp. 30, HEALTH CARE 1.1% AmerisourceBergen Corp. 11,000 1,343 1,233 DaVita HealthCare Partners, Inc. 9, TOTAL HEALTH CARE 2,073 2,055 INFORMATION TECHNOLOGY 0.5% Black Knight, Inc. 13, INVESTMENT COMPANIES 2.2% SPDR Gold Trust ETF 26,000 4,050 4,056 REAL ESTATE 5.0% General Growth Properties, Inc. 265,000 7,458 7,117 Seritage Growth Properties Series A, 7.00% 65,000 1,770 1,996 TOTAL REAL ESTATE 9,228 9,113 10

11 Schedule of Investments continued Equities continued Shares / Units Cost (000s) Market Value (000s) United States of America continued TELECOMMUNICATION SERVICES 1.1% Verizon Communications, Inc. 30,000 $ 1,909 $ 1,984 UTILITIES 0.5% PG&E Corp. 17, TOTAL UNITED STATES OF AMERICA 27,863 30,367 TOTAL EQUITIES 123, ,313 Other Information # Additional information on each counterparty to the reverse repurchase agreement is as follows: Reverse Repurchase Agreement / Counterparty Value (000 s) $21,666,000 due 7/03/18 at 1.22% Bank of Montreal $ 5,141 CIBC World Markets, Inc. 4,857 Royal Bank of Canada 5,141 Scotia Capital, Inc. 5,141 The Toronto-Dominion Bank 1,386 $ 21,666 Bonds 15.1% Principal Amount (000s) Foreign Bonds 15.1% U.S. Treasury Bills, yield at date of purchase % 10/4/18 to 12/6/18 12,357 USD 15,495 16,125 U.S. Treasury Notes: 0.75% 9/30/18 4,365 USD 5,563 5, % 10/31/18 4,452 USD 5,609 5,838 TOTAL FOREIGN BONDS 26,667 27,684 TOTAL BONDS 26,667 27,684 Short-Term Investments 11.9% Canada 11.9% Investments in reverse repurchase agreements in a joint trading account at 1.22%, dated 6/29/18 due 7/3/18 (Collateralized by Canadian Government Obligations) # 21,666 21,666 21,666 TOTAL INVESTMENT IN SECURITIES 99.9% $171, ,663 NET OTHER ASSETS (LIABILITIES) 0.1% 259 NET ASSETS 100% $ 182,922 Currency Abbreviations USD U.S. dollar Security Type Abbreviations Cost amount includes broker commissions and other trading expenses, if any. Principal Amount is stated in Canadian dollars unless otherwise noted. Legend (a) Private and/or restricted. (b) Security exempt from registration under Rule 144A of the U.S. Securities Act of These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,804,000 or 1.0% of Net Assets. 11

12 Fund Specific Notes to Financial Statements For the periods ended June 30, 2018 and 2017 (Amounts in thousands of Canadian dollars/thousands of securities unless otherwise stated) Formation of the Fund (Note 1) The inception date of Fidelity Greater Canada Fund (Fund) was January 2, 2008 and the Fund commenced offering its Series of securities for sale on the following dates: Series Commencement of Operations A January 7, 2008 B January 7, 2008 F January 7, 2008 F5 April 17, 2013 F8 April 17, 2013 O January 7, 2008 T5 January 7, 2008 T8 January 7, 2008 S5 January 7, 2008 S8 January 7, 2008 E1 February 5, 2016 Series Commencement of Operations E1T5 February 5, 2016 E2 February 5, 2016 E2T5 January 6, 2017 E3 February 5, 2016 E4 February 5, 2016 P1 December 4, 2015 P1T5 January 26, 2017 P2 December 4, 2015 P3 December 4, 2015 P4 April 20, 2018 The Fund aims to achieve long-term capital growth. It invests primarily in equity securities of Canadian companies, as well as foreign equity securities. The Fund s benchmark is a blend of 70.0% S&P/TSX Capped Composite Index and 30.0% S&P 500 Index. Investment and Derivative Valuation (Note 3) The Fund categorizes the inputs to valuation techniques used to fair value its investments and derivatives into a disclosure hierarchy consisting of three levels as shown below. In addition, transfers between Level 1 and Level 2, if applicable, are presented for the periods indicated. For any investments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, reconciliations are presented for any activity which occurred in the periods indicated below. Valuation Inputs at June 30, 2018: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities $133,313 $127,104 $ $ 6,209 Bonds 27,684 27,684 Short-Term Investments 21,666 21,666 Total Investments in Securities: $182,663 $127,104 $ 49,350 $ 6,209 Valuation Inputs at June 30, 2017: Description (Amounts in thousands) Total Level 1 Level 2 Level 3 Investments in Securities: Equities: Consumer Discretionary $ 28,853 $ 28,848 $ 5 $ Consumer Staples 31,379 31, Energy 21,159 21, Financials 19,424 15,608 3,816 Health Care 5,921 5, Industrials 2,695 1, Information Technology 45,611 44,178 1,433 Investment Companies Materials 5,669 5,669 Real Estate 11,783 11,783 Telecommunication Services 6,513 6,513 Bonds 18,362 17, Short-Term Investments 4,906 4,906 Total Investments in Securities: $203,270 $173,127 $ 24,206 $ 5,937 Transfers from Level 1 to Level 2 and from Level 2 to Level 1 were $- and $-, respectively, during the period ($- and $2,477, respectively, in the prior period). 12

13 Fund Specific Notes to Financial Statements continued For the periods ended June 30, 2018 and 2017 (Amounts in thousands of Canadian dollars/thousands of securities unless otherwise stated) (Amounts in thousands) Investments in Securities: Beginning Balance $ 5,937 Net Realized Gain (Loss) on Investment Securities 64 Net Unrealized Gain (Loss) on Investment Securities 45 Cost of Purchases 886 Proceeds of Sales (723) Amortization/Accretion Transfers into Level 3 Transfers out of Level 3 Ending Balance $ 6,209 The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2018 $ 35 (Amounts in thousands) Investments in Securities: Beginning Balance $ 785 Net Realized Gain (Loss) on Investment Securities 60 Net Unrealized Gain (Loss) on Investment Securities (188) Cost of Purchases 6,049 Proceeds of Sales (769) Amortization/Accretion Transfers into Level 3 Transfers out of Level 3 Ending Balance $ 5,937 The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2017 $ (113) The following tables provide information on Level 3 securities held by the Fund that were valued as at June 30, 2018 and June 30, 2017, based on unobservable inputs. These amounts exclude valuations provided by a broker Asset Type Fair Value as at June 30, 2018 (000s) Valuation Technique (s) Unobservable Input Amount or Range / Weighted Average Impact to Valuation from an Increase in Input Equities $ 6,209 Market approach Transaction price $0.50 $4,501.56/ $ Increase Asset Type $6,209 Fair Value as at June 30, 2017 (000s) Discount rate 30.0% Decrease Valuation Technique(s) Unobservable Input Amount or Range / Weighted Average Impact to Valuation from an Increase in Input Equities $ 0 Recovery value Recovery value 0.0% Increase $5,302 Market approach Transaction price $2.47 $23.09 / $6.53 Increase $5,302 Parity Price 0.18 Increase The Impact to Valuation from an Increase in Input noted above represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements. Securities Lending (Note 3) The following tables reconcile the gross amount of income generated from the Fund s securities lending transactions to what is retained by the Fund and reported under Security lending in the Statements of Comprehensive Income. Period ended Total Income Earned ($) Fund Income Earned ($) SSB Income Earned ($) Fund % of Total Income Earned SSB % of Total Income Earned June 30, June 30, The Fund s aggregate values of the securities loaned and the collateral received were as follows: Fair value of securities on loan ($) Fair value of Collateral ($) June 30, June 30,

14 Fund Specific Notes to Financial Statements continued For the periods ended June 30, 2018 and 2017 (Amounts in thousands of Canadian dollars/thousands of securities unless otherwise stated) Management and Advisory Fee (Note 4) 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 annual management fee rates for each Series were as follows: Rate (%) Series A Series B Series F.850 Series F5.850 Series F8.850 Series T Series T Series S Series S Series E Rate (%) Series E1T Series E Series E2T Series E Series E Series P1.825 Series P1T5.825 Series P2.800 Series P3.775 Series P4.725 Administration Fee (Note 4) The annual rate of the administration fee will fall under one of three tiers, depending on the net asset value of the Fund: Under $100 Million (Tier 1), $100 Million to $1 Billion (Tier 2) and Over $1 Billion (Tier 3). The administration fee of each Series is as follows: Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A Series B Series F Series F Series F Series T Series T Series S Series S Series E Tier 1 (%) Tier 2 (%) Tier 3 (%) Series E1T Series E Series E2T Series E Series E Series P Series P1T Series P Series P Series P Prior to October 28, 2016, the administration fee was as follows (some or all Series administration fees may not have changed): Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A Series B Series F Series F Series F Series T Series T Series S Series S Tier 1 (%) Tier 2 (%) Tier 3 (%) Series E Series E1T Series E Series E Series E Series P Series P Series P Commissions and Other Portfolio Costs (Note 4) The Fund paid commissions and other portfolio costs of $3 (June 30, 2017: $2) to brokerage firms that are affiliates of Fidelity. In addition, the Fund paid $69 (June 30, 2017: $91) for research. Taxation and Distributions (Note 5) The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada). As at the last taxation year-end, the Fund had no capital losses and no non-capital losses available to be carried forward. 14

15 Fund Specific Notes to Financial Statements continued For the periods ended June 30, 2018 and 2017 (Amounts in thousands of Canadian dollars/thousands of securities unless otherwise stated) Security Transactions and Affiliated Ownership (Notes 3 and 6) Security Transactions - Security transactions and weighted average securities for each Series were as follows: Securities Outstanding, Beginning of Period Issued Reinvested Redeemed Securities Outstanding, End of Period Weighted Average Securities Period ended June 30, 2018 Series A 2, (986) 2,116 2,540 Series B 4,506 1,760 2 (2,591) 3,677 4,023 Series F 2,307 1,048 (1,268) 2,087 2,280 Series F5 3 7 (4) 6 4 Series F8 4 (3) 1 2 Series O 4, (947) 4,118 4,268 Series T (25) Series T (84) Series S (30) Series S (85) Series E (375) Series E1T5 7 1 (2) 6 5 Series E (75) Series E2T Series E (22) Series E (4) Series P (488) Series P1T Series P (146) Series P (59) 16 Series P Period ended June 30, 2017 Series A 2,711 1, (1,102) 2,903 2,944 Series B 5,255 2, (3,626) 4,506 4,941 Series F 1,313 2, (1,539) 2,307 1,959 Series F (11) 3 5 Series F Series O 4, (1,016) 4,217 4,429 Series T (15) Series T (14) Series S (82) Series S (95) Series E (803) Series E1T (32) 7 14 Series E (79) Series E2T Series E (53) Series E Series P (421) Series P1T Series P (153) Series P3 26 (2) 24 4 Affiliated Ownership - As at June 30, 2018, Fidelity and its affiliates held approximately 32% of the Fund. As at June 30, 2017, Fidelity and its affiliates held approximately 28% of the Fund. Financial Instrument Risk (Note 7) Credit Risk Other than outlined in Note 3 in the Notes to Financial Statements, there were no significant concentrations of credit risk to counterparties as at each reporting period end. Concentration Risk Refer to the Derivative Exposure, Geographic Mix, Sector Mix, Asset Mix and Market Capitalization tables, as applicable, in the Summary of Investment Portfolio of the Fund s Annual Management Report of Fund Performance as at June 30, 2018, which summarize the investment concentration risks that are relevant for the Fund. Other Price Risk If the benchmark had increased or decreased by 5% on June 30, 2018 and June 30, 2017, with all other variables held constant, the net assets attributable to securityholders of the Fund would have increased or decreased by approximately $7,763 (June 30, 2017: $7,826). This change is estimated using the Fund s beta which is calculated based on the 15

16 Fund Specific Notes to Financial Statements continued For the periods ended June 30, 2018 and 2017 (Amounts in thousands of Canadian dollars/thousands of securities unless otherwise stated) historical correlation between the return of the Fund as compared to the return of the benchmark. In practice, the actual trading results may differ from this sensitivity analysis and the difference could be material. Interest Rate Risk The majority of the Fund s financial instrument exposure is non-interest bearing. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates. Currency Risk As at June 30, 2018 and June 30, 2017, the majority of the Fund s monetary assets and liabilities are denominated in Canadian dollars. As a result, the Fund is not subject to significant amounts of currency risk. 16

17 Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Toronto, Ontario M5G 2N7 Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Custodian State Street Trust Company of Canada Toronto, Ontario Auditor PricewaterhouseCoopers LLP Toronto, Ontario Visit us online at or call Fidelity Client Services at Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund, Fidelity U.S. Money Market Fund or Fidelity U.S. Money Market Investment Trust will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC E FICL-GCA-ANN-0918