Fidelity Canadian Disciplined Equity Fund

Transcription

1 Fidelity Canadian Disciplined Equity Fund Annual Management Report of Fund Performance June 3, 18

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

3 Annual Management Report of Fund Performance as at June 3, 18 Fidelity Canadian Disciplined Equity Fund This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our website at or SEDAR at Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund. Management Discussion of Fund Performance Investment Objectives and Strategies Investment Objective: Fidelity Canadian Disciplined Equity Fund (Fund) aims to achieve long-term capital growth by investing primarily in equity securities of Canadian companies. Strategies: The Fund aims to invest in the same sectors and in the same proportion as the S&P/TSX Capped Composite Index. Members of a team of analysts are assigned to each of the major market sectors and industries. They select investments for their respective sectors and industries based on each company s management team, financial conditions and potential for earnings growth over the long term. The Fund may invest in small, medium and large companies. It may invest up to approximately 3% of its net assets in foreign securities and may hold cash and fixed-income securities. Risk The risks associated with investing in this Fund remain as discussed in the prospectus. Any changes to the Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for long-term investors wanting to gain Canadian equity exposure, who 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 Disciplined Equity Fund, Series B, returned 8.1% for the one-year period ended June 3, 18. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. The S&P/TSX Composite Index, broadly representative of the Canadian equity market, returned.4%. Market overview: During the first half of the review period, Canadian equities underperformed global markets, weighed down by uncertainty over NAFTA renegotiations, imposition of tariffs on aluminum and steel exports, and high consumer debt levels. The potential collapse of NAFTA could hurt shares of auto parts, railroad and energy companies that depend on trade with the U.S. In the second half of the period, energy stocks gained ground, supported by higher crude oil prices. Rising interest rates and higher commodity prices boosted cyclical stocks that make up nearly 65% of Canadian equities. The Canadian economy performed slightly weaker than expectations, with GDP growing at 1.3% in the first quarter of 18. The Bank of Canada raised interest rates three times in the one year period, prompted by healthy economic fundamentals, but expressed caution on the potential negative impact of NAFTA s uncertain future having spillover effects on trade and business investments in Canada. Factors affecting performance: During the review period, the Fund s benchmark returned.4%. The benchmark, 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 security has a relative weight in the Index greater than.%. The Fund underperformed its benchmark after fees and expenses; however, before fees and expenses, it outperformed. The Fund s holdings in the capital markets industry made the primary contribution to relative returns. In the industry, investments in financial information and analytics company S&P Global, securities exchange operator CME Group and credit rating agency Moody s Investors Service added to relative performance. In addition, exposures to luxury apparel company Canada Goose Holdings and integrated oil & gas company Suncor Energy contributed to relative returns. A lack of exposure to Bank of Nova Scotia also contributed to relative performance. In contrast, exposure to certain stocks in the metals and mining industry detracted from relative performance. In the industry, investments in mine developer Ivanhoe Mines, gold mining company Eldorado Gold and gold royalty company Franco-Nevada detracted from relative returns. In addition, an investment in GGP, a U.S. shopping centre REIT, detracted from relative returns. At the end of the review period, the Fund had no exposure to Eldorado Gold. Portfolio changes: During the one-year period ended June 3, 18, portfolio manager Andrew Marchese kept the 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 portfolio can deviate from the benchmark s industry and company exposures. During the review period, the Fund s exposure to the metals and mining and the media industries was increased. In the metals and mining industry, a position was initiated in gold royalty company Franco-Nevada, based on improving fundamentals and future potential growth prospects. In the media industry, exposure was added to telecommunications company Shaw Communications, on attractive valuations and a favourable risk/reward profile. In contrast, exposure to the hotels, restaurants and leisure industry declined after exposure to Restaurant Brands International was trimmed, the portfolio manager having found better investment opportunities elsewhere. As at June 3, 18, the Fund s largest absolute exposure was to the oil, gas and consumable fuels industry, followed by the banking industry. The Fund diverged the most from the benchmark weightings by allocating more to the capital markets industry and less to banks. 1

4 Fidelity Canadian Disciplined Equity Fund Management Discussion of Fund Performance continued Recent Developments Portfolio manager Andrew Marchese continues to believe that the Canadian and U.S. economies are in the late phase of the economic cycle and that the current market environment supports active management and stock selection. He observes that earnings growth remains strong. However, investor sentiment has weakened as a result of economic tightening, particularly in the U.S., as well as restrictive trade practices being put in place. 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, but is carefully monitoring the landscape for negative earnings revisions. Macroeconomic analysis will continue to be checked against company fundamentals, with a focus on adding value through strong stock picking and identifying companies with attractive growth potential, strong management and favourable risk/reward profiles. Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader collection 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 $17,351, for the period ended June 3, 18. Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges). The Fund pays an annual rate, which is calculated on a tiered basis, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $1,76, for the period ended June 3, 18. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity, 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 June 3, 18. 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 Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.99) (.96) (.88) (.93) (.79) Realized gains (losses) Unrealized gains (losses) (3.21) (.89) 3.31 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 $ $ $ $ $ Net asset value (s) D $ 58,486 $ 84,986 $ 117,396 $ 179,618 $ 237,591 Securities outstanding D 1,419,426 2,224,118 3,269,678 4,911,452 6,738,746 Management expense ratio E,F 2.44% 2.46% 2.47% 2.5% 2.53% Management expense ratio before waivers or absorptions E,F 2.51% 2.51% 2.52% 2.53% 2.53% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Disciplined Equity Fund Series B Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ 27.6 Total revenue Total expenses (excluding distributions) (.92) (.89) (.82) (.86) (.72) Realized gains (losses) Unrealized gains (losses) (2.85) (.98) 4.38 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 $ 42. $ $ $ $ Net asset value (s) D $ 65,27 $ 714,54 $ 792,878 $ 93,324 $ 98,578 Securities outstanding D 15,469,62 18,353,336 21,725,549 25,3,184 27,428,1 Management expense ratio E,I 2.24% 2.25% 2.26% 2.28% 2.29% Management expense ratio before waivers or absorptions E,I 2.28% 2.28% 2.29% 2.29% 2.29% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ $ $ $

6 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series F Periods ended June 3, Net assets, beginning of period B $ 43. $ 4.56 $ $ $ 3.29 Total revenue Total expenses (excluding distributions) (.52) (.49) (.45) (.49) (.4) Realized gains (losses) Unrealized gains (losses) (2.49) (1.) 4.29 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.56) (.51) (.27) (.7) (.26) From capital gains (.81) Return of capital Total distributions B,C (.56) (.51) (1.8) (.7) (.26) Net assets, end of period B $ $ 43. $ 4.56 $ $ Net asset value (s) D $ 87,391 $ 81, $ 61,985 $ 53,31 $ 4,69 Securities outstanding D 1,875,179 1,883,935 1,53,553 1,285,252 1,31,622 Management expense ratio E,F 1.11% 1.% 1.11% 1.13% 1.15% Management expense ratio before waivers or absorptions E,F 1.12% 1.13% 1.14% 1.15% 1.15% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ 43.4 $ $ $ Fidelity Canadian Disciplined Equity Fund Series F5 Periods ended June 3, Net assets, beginning of period B $ $ 24.7 $ $ $.65 Total revenue Total expenses (excluding distributions) (.3) (.3) (.28) (.32) (.29) Realized gains (losses) Unrealized gains (losses) (1.75) (2.17) 3.3 Total increase (decrease) from operations B (.61) 5.17 From net investment income (excluding dividends) From dividends (.3) (.29) (.16) (.4) (.12) From capital gains (.49) Return of capital (1.23) (1.25) (1.27) (1.14) (1.) Total distributions B,C (1.53) (1.54) (1.92) (1.18) (1.12) Net assets, end of period B $ 25.5 $ $ 24.7 $ $ Net asset value (s) D $ 665 $ 892 $ 77 $ 482 $ 8 Securities outstanding D 26,569 36,617 29,371 18,659 3,3 Management expense ratio E,F 1.14% 1.13% 1.13% 1.15% 1.18% Management expense ratio before waivers or absorptions E,F 1.16% 1.16% 1.16% 1.18% 1.18% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ $ $ $

7 Fidelity Canadian Disciplined Equity Fund Series F8 Periods ended June 3, Net assets, beginning of period B $ 22.4 $ $ $ $.55 Total revenue Total expenses (excluding distributions) (.27) (.27) (.26) (.31) (.28) Realized gains (losses) Unrealized gains (losses) (1.31) (.33) 4.67 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 (1.51) (1.53) (1.56) (1.59) (1.59) Total distributions B,C (1.79) (1.8) (2.18) (1.63) (1.76) Net assets, end of period B $ $ 22.4 $ $ $ Net asset value (s) D $ 758 $ 837 $ 622 $ 541 $ 347 Securities outstanding D 33,529 37,422 27,681 22,55 13,921 Management expense ratio E,F 1.12% 1.12% 1.13% 1.15% 1.18% Management expense ratio before waivers or absorptions E,F 1.14% 1.15% 1.16% 1.18% 1.18% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Disciplined Equity Fund Series O Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.4) (.3) (.2) (.3) Realized gains (losses) Unrealized gains (losses) (2.49) (1.16) 5.51 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (1.14) (1.6) (.4) (.53) (.7) From capital gains (1.23) Return of capital Total distributions B,C (1.14) (1.6) (1.63) (.53) (.7) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 1,591,476 $ 1,482,184 $ 1,36,632 $ 1,169,95 $ 1,169,128 Securities outstanding D 31,775,596 32,25,761 31,152,734 26,416,757 27,681,59 Management expense ratio % % % % % Management expense ratio before waivers or absorptions % % % % % Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ 49.9 $ $ $ $

8 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series T5 Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.39) (.4) (.38) (.42) (.38) Realized gains (losses) Unrealized gains (losses) (1.52) (.53) 1.96 Total increase (decrease) from operations B (.43) From net investment income (excluding dividends) From dividends (.5) From capital gains (.16) Return of capital (.8) (.8) (.81) (.76) (.71) Total distributions B,C (.8) (.8) (1.2) (.76) (.71) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 315 $ 356 $ 469 $ 1,177 $ 1,498 Securities outstanding D,166 23,347 31,25 76,282 91,494 Management expense ratio E,F 2.44% 2.46% 2.44% 2.48% 2.52% Management expense ratio before waivers or absorptions E,F 2.5% 2.52% 2.5% 2.51% 2.52% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Disciplined Equity Fund Series T8 Periods ended June 3, Net assets, beginning of period B $ $ $ $ 17.9 $ Total revenue Total expenses (excluding distributions) (.38) (.4) (.41) (.46) (.42) Realized gains (losses) Unrealized gains (losses) (1.56) (.47) 2.17 Total increase (decrease) from operations B (.44) From net investment income (excluding dividends) From dividends (.5) From capital gains (.16) Return of capital (1.28) (1.28) (1.29) (1.3) (1.3) Total distributions B,C (1.28) (1.28) (1.5) (1.3) (1.3) Net assets, end of period B $ $ $ $ $ 17.9 Net asset value (s) D $ 2,93 $ 7,721 $ 5,526 $,315 $ 17,977 Securities outstanding D 191,169 53, , ,861 1,5,68 Management expense ratio E,F 2.4% 2.44% 2.48% 2.51% 2.53% Management expense ratio before waivers or absorptions E,F 2.46% 2.49% 2.54% 2.54% 2.53% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ $ $ $

9 Fidelity Canadian Disciplined Equity Fund Series S5 Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.37) (.38) (.36) (.41) (.36) Realized gains (losses) Unrealized gains (losses) (1.5) (.42) 2.61 Total increase (decrease) from operations B (.41) From net investment income (excluding dividends) From dividends (.1) (.6) From capital gains (.18) Return of capital (.82) (.82) (.83) (.78) (.72) Total distributions B,C (.83) (.82) (1.6) (.78) (.72) Net assets, end of period B $ 16.7 $ $ $ $ Net asset value (s) D $ 2,327 $ 2,751 $ 3,241 $ 3,714 $ 4,118 Securities outstanding D 145,38 175,8 9, , ,69 Management expense ratio E,I 2.25% 2.28% 2.3% 2.32% 2.33% Management expense ratio before waivers or absorptions E,I 2.29% 2.31% 2.33% 2.33% 2.33% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ 16.7 $ $ $ $ Fidelity Canadian Disciplined Equity Fund Series S8 Periods ended June 3, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.36) (.37) (.37) (.42) (.38) Realized gains (losses) Unrealized gains (losses) (1.17) (.51) 2.91 Total increase (decrease) from operations B (.9) From net investment income (excluding dividends) From dividends (.2) (.6) From capital gains (.19) Return of capital (1.3) (1.3) (1.31) (1.32) (1.32) Total distributions B,C (1.32) (1.3) (1.56) (1.32) (1.32) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 17,812 $ 22,45 $ 18,668 $ 18,732 $ 18,14 Securities outstanding D 1,15,727 1,394,552 1,177,599 1,7,34 1,1,359 Management expense ratio E,I 2.23% 2.24% 2.26% 2.28% 2.28% Management expense ratio before waivers or absorptions E,I 2.26% 2.27% 2.29% 2.28% 2.28% Trading expense ratio G.5%.4%.4%.5%.9% Portfolio turnover rate H 27.69% 26.15% 36.7% 31.21% 35.87% Net asset value per security, end of period $ $ $ $ $

10 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series E1 Periods ended June 3, J Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.27) (.26) (.9) Realized gains (losses) 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 $ 94,16 $ 86,965 $ 4,248 Securities outstanding D 7,52,89 7,49,511 3,694,224 Management expense ratio E,K 2.18% 2.19% 2.21% Management expense ratio before waivers or absorptions E,K 2.21% 2.22% 2.24% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $ $.896 Fidelity Canadian Disciplined Equity Fund Series E1T5 Periods ended June 3, J Net assets, beginning of period B $ $ 21.3 $. Total revenue Total expenses (excluding distributions) (.5) (.52) (.19) Realized gains (losses) Unrealized gains (losses).99 (.4) 2.12 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains Return of capital (1.13) (1.13) (.47) Total distributions B,C (1.14) (1.13) (.47) Net assets, end of period B $ $ $ 21.3 Net asset value (s) D $ 565 $ 1,18 $ 474 Securities outstanding D 25,597 47,38 22,36 Management expense ratio E,K 2.24% 2.28% 2.28% Management expense ratio before waivers or absorptions E,K 2.27% 2.31% 2.31% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $ $

11 Fidelity Canadian Disciplined Equity Fund Series E2 Periods ended June 3, J Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.26) (.25) (.9) Realized gains (losses) 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 $ 14,672 $ 11,273 $ 4,321 Securities outstanding D 1,169, ,44 396,56 Management expense ratio E,K 2.9% 2.9% 2.14% Management expense ratio before waivers or absorptions E,K 2.13% 2.12% 2.17% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $ $.8988 Fidelity Canadian Disciplined Equity Fund Series E2T5 Periods ended June 3, J Net assets, beginning of period B $ $ $. Total revenue Total expenses (excluding distributions) (.47) (.46) (.16) Realized gains (losses) 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 (1.13) (1.13) (.47) Total distributions B,C (1.18) (1.18) (.47) Net assets, end of period B $ $ $ Net asset value (s) D $ 1 $ 1 $ 1 Securities outstanding D Management expense ratio E,K 2.7% 2.12% 1.98% Management expense ratio before waivers or absorptions E,K 2.41% 2.46% 2.4% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $ $

12 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series E3 Periods ended June 3, J Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.25) (.24) (.8) Realized gains (losses) 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 $ 3,792 $ 2,52 $ 1,487 Securities outstanding D 32, , ,398 Management expense ratio E,K 2.% 1.99% 2.% Management expense ratio before waivers or absorptions E,K 2.3% 2.2% 2.3% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $ 11.6 $.915 Fidelity Canadian Disciplined Equity Fund Series E4 Periods ended June 3, J Net assets, beginning of period B $ $.91 $. Total revenue Total expenses (excluding distributions) (.24) (.23) (.8) Realized gains (losses) 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 $ 2,466 $ 3,244 $ 2,975 Securities outstanding D 196, , ,772 Management expense ratio E,K 1.92% 1.93% 1.95% Management expense ratio before waivers or absorptions E,K 1.95% 1.96% 1.98% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $ $.968

13 Fidelity Canadian Disciplined Equity Fund Series E5 Periods ended June 3, J Net assets, beginning of period B $ $.9 $. Total revenue Total expenses (excluding distributions) (.24) (.24) (.8) Realized gains (losses) 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 $ $ $.9 Net asset value (s) D $ 1 $ 1 $ 1 Securities outstanding D 1 Management expense ratio E,K 1.91% 1.9% 1.96% Management expense ratio before waivers or absorptions E,K 1.91% 1.9% 1.96% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $ $.946 Fidelity Canadian Disciplined Equity Fund Series P1 Periods ended June 3, L Net assets, beginning of period B $.86 $. $. Total revenue Total expenses (excluding distributions) (.13) (.12) (.6) Realized gains (losses) 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 $ 16,185 $ 13,423 $ 4,65 Securities outstanding D 1,379,88 1,235, ,614 Management expense ratio E,M 1.5% 1.5% 1.6% Management expense ratio before waivers or absorptions E,M 1.7% 1.7% 1.7% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $.865 $

14 Financial Highlights continued Fidelity Canadian Disciplined Equity Fund Series P1T5 Periods ended June 3, L Net assets, beginning of period B $.4 $ $. Total revenue Total expenses (excluding distributions) (.23) (.22) (.11) Realized gains (losses) 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 (1.1) (1.2) (.6) Total distributions B,C (1.28) (1.28) (1.14) Net assets, end of period B $.58 $.4 $ Net asset value (s) D $ 638 $ 196 $ 134 Securities outstanding D 31,127 9,769 6,775 Management expense ratio E,M 1.5% 1.1% 1.1% Management expense ratio before waivers or absorptions E,M 1.6% 1.3% 1.2% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $.5812 $.356 $ Fidelity Canadian Disciplined Equity Fund Series P2 Periods ended June 3, L Net assets, beginning of period B $.86 $. $. Total revenue Total expenses (excluding distributions) (.12) (.12) (.6) Realized gains (losses) Unrealized gains (losses).42 (.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 $ 2,42 $ 1,321 $ 26 Securities outstanding D 4, ,635 25,465 Management expense ratio E,M 1.1% 1.1% 1.3% Management expense ratio before waivers or absorptions E,M 1.3% 1.4% 1.5% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 26.15% 36.7% Net asset value per security, end of period $ $.8577 $

15 Fidelity Canadian Disciplined Equity Fund Series P2T5 Periods ended June 3, N Net assets, beginning of period B $ $. Total revenue.5.25 Total expenses (excluding distributions) (.19) (.) Realized gains (losses) Unrealized gains (losses) 1.84 (.79) Total increase (decrease) from operations B 2.29 (.23) From net investment income (excluding dividends) From dividends (.27) From capital gains Return of capital (.99) (.5) Total distributions B,C (1.26) (.5) Net assets, end of period B $ $ Net asset value (s) D $ 45 $ 331 Securities outstanding D 2,272 17,141 Management expense ratio E,O.96%.95% Management expense ratio before waivers or absorptions E,O.98%.98% Trading expense ratio G.5%.4% Portfolio turnover rate H 27.69% 26.15% Net asset value per security, end of period $ $ Fidelity Canadian Disciplined Equity Fund Series P3 Periods ended June 3, L Net assets, beginning of period B $.86 $.21 $. Total revenue Total expenses (excluding distributions) (.12) (.11) (.5) Realized gains (losses) 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 $ 576 $ 35 $ 174 Securities outstanding D 49,64 28,63 17,52 Management expense ratio E,M.97%.92%.98% Management expense ratio before waivers or absorptions E,M.98%.95%.99% Trading expense ratio G.5%.4%.4% Portfolio turnover rate H 27.69% 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 Periods ended June 3, P Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.17) (.6) Realized gains (losses) Unrealized gains (losses).89 (.61) Total increase (decrease) from operations B 1.81 (.16) From net investment income (excluding dividends) From dividends (.3) From capital gains Return of capital (.99) (.5) Total distributions B,C (1.29) (.5) Net assets, end of period B $ $ Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio E,Q.8%.82% Management expense ratio before waivers or absorptions E,Q.8%.82% Trading expense ratio G.5%.4% Portfolio turnover rate H 27.69% 26.15% Net asset value per security, end of period $ $ Fidelity Canadian Disciplined Equity Fund Series P4 Periods ended June 3, P Net assets, beginning of period B $ 9.92 $. Total revenue Total expenses (excluding distributions) (.9) (.3) Realized gains (losses).3 (.7) Unrealized gains (losses).47 (.51) Total increase (decrease) from operations B.95 (.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 $.71 $ 9.92 Net asset value (s) D $ 27 $ 24 Securities outstanding D 2,56 2,468 Management expense ratio E,Q.85%.84% Management expense ratio before waivers or absorptions E,Q.86%.86% Trading expense ratio G.5%.4% Portfolio turnover rate H 27.69% 26.15% Net asset value per security, end of period $.7122 $

17 Fidelity Canadian Disciplined Equity Fund Series P5 Periods ended June 3, P Net assets, beginning of period B $ 9.92 $. Total revenue Total expenses (excluding distributions) (.9) (.4) Realized gains (losses) Unrealized gains (losses).48 (.32) Total increase (decrease) from operations B.98 (.) 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 $.72 $ 9.92 Net asset value (s) D $ 9,6 $ 6,668 Securities outstanding D 852, ,411 Management expense ratio E,Q.78%.79% Management expense ratio before waivers or absorptions E,Q.79%.81% Trading expense ratio G.5%.4% Portfolio turnover rate H 27.69% 26.15% Net asset value per security, end of period $.7148 $

18 Financial Highlights continued Financial Highlights Footnotes A This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, 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. B 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. C 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. D This information is provided as at period end of the year shown. E 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. F 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. G 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. H 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 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 February 5, 16 (commencement of sale of securities) to June 3, 16. K 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. L For the period December 4, 15 (commencement of sale of securities) to June 3, 16. M 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. N For the period January 6, 17 (commencement of sale of securities) to June 3, 17. O 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. P For the period January 26, 17 (commencement of sale of securities) to June 3, 17. Q Effective January 3, 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. 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.% 35.75% 64.25% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 59.5% 4.5% Series T8 2.% 11.24% 88.76% 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% 4.3% 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. Series A Series F Series B Commencement of Operations is April 17, Series F Series F Commencement of Operations is April 17, 13 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, 16 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, 17 Series P Commencement of Operations is December 4, 15 Commencement of Operations is December 4, 15

23 Series P3T5 Series P Commencement of Operations is January 26, 17 Commencement of Operations is January 26, 17 Series P Commencement of Operations is January 26, 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, the S&P/TSX Capped Composite Index, as described below. 21

24 Fidelity Canadian Disciplined Equity Fund Past Performance continued Average Annual Total Returns Fidelity Canadian Disciplined Equity Fund - Series A 7.9% 4.5% 8.9% 3.5% n/a Fidelity Canadian Disciplined Equity Fund - Series B 8.1% 4.8% 9.1% 3.7% n/a Fidelity Canadian Disciplined Equity Fund - Series F 9.4% 6.%.4% 4.9% n/a Fidelity Canadian Disciplined Equity Fund - Series F5 9.3% 5.9%.3% n/a.7% Fidelity Canadian Disciplined Equity Fund - Series F8 9.4% 5.9%.3% n/a.8% Fidelity Canadian Disciplined Equity Fund - Series O.6% 7.1% 11.6% 6.1% n/a Fidelity Canadian Disciplined Equity Fund - Series T5 7.9% 4.6% 8.9% 3.5% n/a Fidelity Canadian Disciplined Equity Fund - Series T8 8.% 4.6% 8.9% 3.5% n/a Fidelity Canadian Disciplined Equity Fund - Series S5 8.1% 4.7% 9.1% 3.7% n/a Fidelity Canadian Disciplined Equity Fund - Series S8 8.2% 4.8% 9.1% 3.7% n/a Fidelity Canadian Disciplined Equity Fund - Series E1 8.2% 4.8% 9.2% 3.8% n/a Fidelity Canadian Disciplined Equity Fund - Series E1T5 8.1% 4.8% 9.1% 3.7% n/a Fidelity Canadian Disciplined Equity Fund - Series E2 8.3% 4.9% 9.2% 3.8% n/a Fidelity Canadian Disciplined Equity Fund - Series E2T5 8.3% 4.9% 9.2% 3.8% n/a Fidelity Canadian Disciplined Equity Fund - Series E3 8.4% 5.% 9.3% 3.8% n/a Fidelity Canadian Disciplined Equity Fund - Series E4 8.5% 5.% 9.3% 3.8% n/a Fidelity Canadian Disciplined Equity Fund - Series E5 8.5% 5.% 9.3% 3.8% n/a Fidelity Canadian Disciplined Equity Fund - Series P1 9.4% 6.%.4% 4.9% n/a Fidelity Canadian Disciplined Equity Fund - Series P1T5 9.4% 6.%.4% n/a.8% Fidelity Canadian Disciplined Equity Fund - Series P2 9.5% 6.%.4% 4.9% n/a Fidelity Canadian Disciplined Equity Fund - Series P2T5 9.5% 6.%.4% n/a.8% Fidelity Canadian Disciplined Equity Fund - Series P3 9.5% 6.1%.5% 5.% n/a Fidelity Canadian Disciplined Equity Fund - Series P3T5 9.7% 6.1%.4% n/a.8% Fidelity Canadian Disciplined Equity Fund - Series P4 9.7% 6.1%.5% 5.% n/a Fidelity Canadian Disciplined Equity Fund - Series P5 9.7% 6.1%.5% 5.% n/a S&P/TSX Capped Composite Index.4% 7.% 9.2% 4.2% 9.3% S&P/TSX Composite Index.4% 7.% 9.2% 4.2% 9.3% A discussion of the performance of the Fund can be found in the Results of Operations section of this report. 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.%. Each Series will have different returns because of differences in management fees and expenses. Past 1 year Past 3 years Past 5 years Past years Since Inception 22