Fidelity Canadian Growth Company Fund

Transcription

1 Fidelity Canadian Growth Company Fund Annual Management Report of Fund Performance June, 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, 18 Fidelity Canadian Growth Company 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, 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 Objective and Strategies Investment Objective: Fidelity Canadian Growth Company Fund (Fund) aims to achieve long-term capital growth by investing primarily in equity securities of Canadian companies. Strategies: When buying and selling securities for the Fund, the portfolio manager examines each company s potential for success in light of its current financial condition and industry position as well as economic and market conditions. The portfolio manager considers factors such as growth potential, earnings estimates and quality of management. The Fund may invest in small, medium and large companies, but tends to focus on medium to large companies. It may invest up to approximately 49% of its assets in foreign securities, and may hold cash and 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 its overall level of risk. The Fund is suitable for long-term investors who want to gain exposure to Canadian and foreign equities and can handle the volatility of returns generally associated with equity investments. To invest in this Fund, investors should be willing to accept a medium level of risk. The suitability of the investment has not changed from what has been disclosed in the prospectus. Results of Operations Fidelity Canadian Growth Company Fund, Series B, returned 25.7%, after fees and expenses, for the one-year period ended June, 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. Canadian equities, as represented by the S&P/TSX Composite Index, returned.4% (in Canadian dollar terms) for the review period. 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: The Fund s benchmark returned 12.1% for the one-year period under review. The Fund s benchmark is a combination of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (.%). The Fund outperformed its benchmark, primarily due to the Fund s larger-than-benchmark position and specific investments in the information technology sector, where U.S.-based payment processing company Square and U.S.-based e-commerce company Etsy contributed to relative returns. Among other sectors, investments in Canadian copper mining company First Quantum Minerals and Canadian luxury apparel company Canada Goose Holdings contributed to relative performance. In contrast, exposure to certain stocks in the energy sector detracted from relative performance. In the energy sector, exposure to Canadian oil and gas companies Cenovus Energy and Raging River Exploration weighed on relative returns. Across other sectors, investments in U.S.-based semiconductor company Advanced Micro Devices and Canadian cryptocurrency mining firm HIVE Blockchain Technology detracted from relative performance. At the end of the review period, the Fund had no exposure to Advanced Micro Devices. Portfolio changes: During the review period, Fund s exposure to the energy sector increased after the portfolio manager initiated new positions in Canadian integrated oil and gas companies Suncor Energy and Cenovus Energy, as well as in Canadian oil and gas exploration and production company Canadian Natural Resources. In the portfolio manager s view, these companies could benefit from higher energy prices. In contrast, exposure to the telecommunications sector decreased: the portfolio manager closed positions in Canadian communications and media company Roger Communications and Canada-based communications company Bell Canada, having found more attractive investment opportunities elsewhere. Recent Developments Portfolio manager Mark Schmehl s investment approach remains focused on identifying positive change in company fundamentals and seeking to add value by focusing on uncovering investment opportunities where business conditions are or could be improving. He has increased exposure to Canada by placing more focus on energy stocks, which he believes could benefit 1

4 Fidelity Canadian Growth Company Fund Management Discussion of Fund Performance continued from higher energy prices. He has also placed greater emphasis on companies showing signs of improved growth opportunities, and that have observed and learned from decisions made by market leaders. Mr. Schmehl believes that equity markets still have a bit of a runway, although he has grown more cautious on the FAANG stocks (Facebook, Amazon, Apple, Netflix and Google), owing to their outperformance. He believes markets are in a phase of digestion as market participants think through the implications of the innovations that have been developed so far. Mr. Schmehl continues to believe that the global economy is healthy, and he is positive on equity market returns over the long term. At the end of the review period, the Fund had its largest absolute exposure to the information technology sector, followed by the energy sector. The Fund diverged the most from the benchmark sector weightings by having more exposure to the information technology sector and less exposure to the financials sector. In terms of country exposure, Canada represented the Fund s largest exposure, followed by the U.S. 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 $44,349, for the period ended June, 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 $4,467, for the period ended June, 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 $136, for the period ended June, 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 Growth Company Fund Series A Periods ended June, Net assets, beginning of period B $ 52. $ $ 5.7 $ $ Total revenue Total expenses (excluding distributions) (1.62) (1.45) (1.4) (1.36) (1.12) Realized gains (losses) Unrealized gains (losses) (1.71) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (2.) (2.8) (7.3) (.47) Return of capital Total distributions B,C (2.) (2.8) (7.3) (.47) Net assets, end of period B $ 65.5 $ 52. $ $ 5.7 $ Net asset value (s) D $ 547,44 $ 299,767 $ 187,317 $ 154,546 $ 121,375 Securities outstanding D 8,365,257 5,746,119 3,831,393 3,86,939 2,58,965 Management expense ratio E,F 2.45% 2.47% 2.47% 2.49% 2.52% Management expense ratio before waivers or absorptions E,F 2.52% 2.52% 2.53% 2.52% 2.52% Trading expense ratio G.28%.29%.42%.23%.36% Portfolio turnover rate H 8.13% 25.98% % 211.% 2.15% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Growth Company Fund Series B Periods ended June, Net assets, beginning of period B $ $ $ 5.69 $ 49.2 $ 38.4 Total revenue Total expenses (excluding distributions) (1.51) (1.36) (1.32) (1.27) (1.3) Realized gains (losses) Unrealized gains (losses) (2.19) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.) (2.33) (2.93) (7.22) (.57) Return of capital Total distributions B,C (.) (2.33) (2.93) (7.22) (.57) Net assets, end of period B $ 66. $ $ $ 5.69 $ 49.2 Net asset value (s) D $ 1,835,886 $ 1,199,92 $ 1,39,182 $ 1,92,23 $ 959,337 Securities outstanding D 27,711,93 22,711,873 21,7,337 21,539,415 19,562,865 Management expense ratio E,I 2.25% 2.27% 2.27% 2.28% 2.29% Management expense ratio before waivers or absorptions E,I 2.28% 2.29% 2.% 2.29% 2.29% Trading expense ratio G.28%.29%.42%.23%.36% Portfolio turnover rate H 8.13% 25.98% % 211.% 2.15% Net asset value per security, end of period $ $ $ $ $

6 Financial Highlights continued Fidelity Canadian Growth Company Fund Series F Periods ended June, Net assets, beginning of period B $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.94) (.83) (.84) (.78) (.59) Realized gains (losses) Unrealized gains (losses) (.76) 2.44 (1.28) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.85) (3.27) (3.91) (8.7) (1.) Return of capital Total distributions B,C (.85) (3.27) (3.91) (8.7) (1.) Net assets, end of period B $ $ $ $ $ Net asset value (s) D $ 54,337 $ 238,533 $ 9,644 $ 48,486 $ 26,788 Securities outstanding D 7,372,472 4,84,926 2,8, , ,238 Management expense ratio E,F 1.11% 1.12% 1.13% 1.13% 1.16% Management expense ratio before waivers or absorptions E,F 1.13% 1.14% 1.15% 1.16% 1.16% Trading expense ratio G.28%.29%.42%.23%.36% Portfolio turnover rate H 8.13% 25.98% % 211.% 2.15% Net asset value per security, end of period $ $ $ $ $ Fidelity Canadian Growth Company Fund Series F5 Periods ended June, J Net assets, beginning of period B $ 19.8 $. Total revenue.23. Total expenses (excluding distributions) (.32) (.23) Realized gains (losses) Unrealized gains (losses) 2.12 (.84) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.29) (1.14) Return of capital (.94) (.8) Total distributions B,C (1.23) (1.94) Net assets, end of period B $ 23.8 $ 19.8 Net asset value (s) D $ 7,582 $ 1,6 Securities outstanding D 3,459 6,942 Management expense ratio K,L 1.% 1.% Management expense ratio before waivers or absorptions K,L 1.12% 1.13% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $

7 Fidelity Canadian Growth Company Fund Series F8 Periods ended June, J Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.) (.21) Realized gains (losses) Unrealized gains (losses) 2.84 (1.18) Total increase (decrease) from operations B 5.34 (.23) From net investment income (excluding dividends) From dividends From capital gains (.27) (1.19) Return of capital (1.49) (1.28) Total distributions B,C (1.76) (2.47) Net assets, end of period B $ $ Net asset value (s) D $ 2,899 $ 444 Securities outstanding D 129,867 23,43 Management expense ratio K,L 1.11% 1.12% Management expense ratio before waivers or absorptions K,L 1.13% 1.15% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $ Fidelity Canadian Growth Company Fund Series O Periods ended June, Net assets, beginning of period B $ $ 6.16 $ $ $ 46.5 Total revenue Total expenses (excluding distributions) (.23) (.22) (.28) (.18) Realized gains (losses) Unrealized gains (losses) (1.36) 2.65 (1.25) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends (.1) From capital gains (1.73) (4.33) (4.99) (.29) (1.96) Return of capital Total distributions B,C (1.73) (4.34) (4.99) (.29) (1.96) Net assets, end of period B $ 8.47 $ $ 6.16 $ $ Net asset value (s) D $ 1,74,89 $ 872,74 $ 254,936 $ 167,429 $ 96,729 Securities outstanding D 21,623,789 13,587,615 4,24,379 2,7,138 1,613,772 Management expense ratio E %.1%.1% % % Management expense ratio before waivers or absorptions E %.1%.1% % % Trading expense ratio G.28%.29%.42%.23%.36% Portfolio turnover rate H 8.13% 25.98% % 211.% 2.15% Net asset value per security, end of period $ $ $ $ $

8 Financial Highlights continued Fidelity Canadian Growth Company Fund Series T5 Periods ended June, M Net assets, beginning of period B $.16 $. Total revenue Total expenses (excluding distributions) (.64) (.27) Realized gains (losses) Unrealized gains (losses) 1.99 (.8) Total increase (decrease) from operations B 4.79 (.) From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.) (.5) Total distributions B,C (1.) (.5) Net assets, end of period B $ $.16 Net asset value (s) D $ 3,259 $ 643 Securities outstanding D 134,96 31,9 Management expense ratio K,N 2.48% 2.5% Management expense ratio before waivers or absorptions K,N 2.55% 2.56% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $.16 Fidelity Canadian Growth Company Fund Series T8 Periods ended June, M Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.61) (.26) Realized gains (losses) Unrealized gains (losses) 2.15 (.84) Total increase (decrease) from operations B 4.68 (.36) From net investment income (excluding dividends) From dividends From capital gains Return of capital (1.6) (.8) Total distributions B,C (1.6) (.8) Net assets, end of period B $ $ Net asset value (s) D $ 3,125 $ 652 Securities outstanding D 134,631 32,873 Management expense ratio K,N 2.44% 2.45% Management expense ratio before waivers or absorptions K,N 2.51% 2.51% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $

9 Fidelity Canadian Growth Company Fund Series S5 Periods ended June, M Net assets, beginning of period B $.18 $. Total revenue Total expenses (excluding distributions) (.6) (.24) Realized gains (losses) Unrealized gains (losses) 1.8 (.53) Total increase (decrease) from operations B 4.71 (.8) From net investment income (excluding dividends) From dividends From capital gains (.4) Return of capital (1.) (.5) Total distributions B,C (1.4) (.5) Net assets, end of period B $ $.18 Net asset value (s) D $ 2,485 $ 313 Securities outstanding D 3,851 15,516 Management expense ratio K,N 2.25% 2.26% Management expense ratio before waivers or absorptions K,N 2.29% 2.29% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $.1839 Fidelity Canadian Growth Company Fund Series S8 Periods ended June, M Net assets, beginning of period B $ $. Total revenue Total expenses (excluding distributions) (.57) (.25) Realized gains (losses) Unrealized gains (losses) 2.51 (.99) Total increase (decrease) from operations B 4.84 (.32) From net investment income (excluding dividends) From dividends From capital gains (.3) Return of capital (1.6) (.8) Total distributions B,C (1.63) (.8) Net assets, end of period B $ $ Net asset value (s) D $ 3,37 $ 1,151 Securities outstanding D 145,84 58,227 Management expense ratio K,N 2.29% 2.% Management expense ratio before waivers or absorptions K,N 2.32% 2.32% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $

10 Financial Highlights continued Fidelity Canadian Growth Company Fund Series E1 Periods ended June, O Net assets, beginning of period B $ $ 11.2 $. Total revenue Total expenses (excluding distributions) (.33) (.) (.12) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.3) (.53) Return of capital Total distributions B,C (.3) (.53) Net assets, end of period B $ $ $ 11.2 Net asset value (s) D $ 34,5 $ 173,282 $ 68,315 Securities outstanding D 23,9,544 14,757,752 6,197,599 Management expense ratio P,Q 2.% 2.21% 2.22% Management expense ratio before waivers or absorptions P,Q 2.23% 2.24% 2.25% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $ $ Fidelity Canadian Growth Company Fund Series E1T5 Periods ended June, 18 R Net assets, beginning of period B $. Total revenue.5 Total expenses (excluding distributions) (.9) Realized gains (losses).23 Unrealized gains (losses) 1. Total increase (decrease) from operations B 1.29 From net investment income (excluding dividends) From dividends From capital gains Return of capital (.25) Total distributions B,C (.25) Net assets, end of period B $ 21.8 Net asset value (s) D $ 394 Securities outstanding D 18,665 Management expense ratio S,T 2.15% Management expense ratio before waivers or absorptions S,T 2.19% Trading expense ratio G.28% Portfolio turnover rate H 8.13% Net asset value per security, end of period $

11 Fidelity Canadian Growth Company Fund Series E2 Periods ended June, O Net assets, beginning of period B $ $ 11.2 $. Total revenue Total expenses (excluding distributions) (.32) (.29) (.11) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.4) (.54) Return of capital Total distributions B,C (.4) (.54) Net assets, end of period B $ $ $ 11.2 Net asset value (s) D $ 69,46 $ 35,493 $ 11,844 Securities outstanding D 4,722,525 3,17,93 1,83,259 Management expense ratio P,Q 2.11% 2.12% 2.12% Management expense ratio before waivers or absorptions P,Q 2.14% 2.15% 2.15% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $ $ Fidelity Canadian Growth Company Fund Series E3 Periods ended June, O Net assets, beginning of period B $ $ 11.2 $. Total revenue Total expenses (excluding distributions) (.31) (.27) (.11) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.6) (.55) Return of capital Total distributions B,C (.6) (.55) Net assets, end of period B $ $ $ 11.2 Net asset value (s) D $ 12,777 $ 7,18 $ 4,556 Securities outstanding D 867, , ,38 Management expense ratio P,Q 2.1% 2.1% 2.2% Management expense ratio before waivers or absorptions P,Q 2.4% 2.4% 2.5% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $ $

12 Financial Highlights continued Fidelity Canadian Growth Company Fund Series E4 Periods ended June, O Net assets, beginning of period B $ $ 11.3 $. Total revenue Total expenses (excluding distributions) (.29) (.27) (.) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.6) (.56) Return of capital Total distributions B,C (.6) (.56) Net assets, end of period B $ $ $ 11.3 Net asset value (s) D $ 9,363 $ 5,34 $ 1,632 Securities outstanding D 633,84 453, , Management expense ratio P,Q 1.92% 1.94% 1.96% Management expense ratio before waivers or absorptions P,Q 1.96% 1.97% 1.99% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $ $ Fidelity Canadian Growth Company Fund Series E5 Periods ended June, O Net assets, beginning of period B $ $ 11.2 $. Total revenue Total expenses (excluding distributions) (.29) (.24) (.11) Realized gains (losses) Unrealized gains (losses) 2.3 (2.86).57 Total increase (decrease) from operations B 3.21 (2.8) 1.5 From net investment income (excluding dividends) From dividends From capital gains (.5) (.55) Return of capital Total distributions B,C (.5) (.55) Net assets, end of period B $ $ $ 11.2 Net asset value (s) D $ 4,15 $ 3,78 $ 34 Securities outstanding D 28, ,16,82 Management expense ratio P,Q 1.96% 2.3% 2.3% Management expense ratio before waivers or absorptions P,Q 1.99% 2.6% 2.7% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $ $

13 Fidelity Canadian Growth Company Fund Series P1 Periods ended June, U Net assets, beginning of period B $.51 $ 9.85 $. Total revenue Total expenses (excluding distributions) (.16) (.14) (.8) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.16) (.59) (.7) Return of capital Total distributions B,C (.16) (.59) (.7) Net assets, end of period B $ $.51 $ 9.85 Net asset value (s) D $ 9,29 $ 42,578 $ 8,37 Securities outstanding D 8,282,593 4,54, ,798 Management expense ratio P,V 1.6% 1.6% 1.8% Management expense ratio before waivers or absorptions P,V 1.8% 1.9% 1.9% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $.592 $ Fidelity Canadian Growth Company Fund Series P1T5 Periods ended June, W Net assets, beginning of period B $ $. Total revenue.22.5 Total expenses (excluding distributions) (.) (.4) Realized gains (losses) Unrealized gains (losses) 2.9 (.5) Total increase (decrease) from operations B 4.75 (.46) From net investment income (excluding dividends) From dividends From capital gains (.29) Return of capital (.99) (.25) Total distributions B,C (1.28) (.25) Net assets, end of period B $ $ Net asset value (s) D $ 1,611 $ 587 Securities outstanding D 69,2,219 Management expense ratio K,X 1.5% 1.6% Management expense ratio before waivers or absorptions K,X 1.6% 1.8% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Canadian Growth Company Fund Series P2 Periods ended June, U Net assets, beginning of period B $.51 $ 9.85 $. Total revenue Total expenses (excluding distributions) (.16) (.14) (.8) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.16) (.6) (.7) Return of capital Total distributions B,C (.16) (.6) (.7) Net assets, end of period B $ $.51 $ 9.85 Net asset value (s) D $ 21,679 $ 9,973 $ 1,61 Securities outstanding D 1,645, ,878 7,751 Management expense ratio P,V 1.2% 1.3% 1.4% Management expense ratio before waivers or absorptions P,V 1.3% 1.6% 1.5% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $.59 $ Fidelity Canadian Growth Company Fund Series P2T5 Periods ended June, 18 Y Net assets, beginning of period B $. Total revenue.22 Total expenses (excluding distributions) (.25) Realized gains (losses) 1.63 Unrealized gains (losses) 3.87 Total increase (decrease) from operations B 5.47 From net investment income (excluding dividends) From dividends From capital gains (.) Return of capital (.99) Total distributions B,C (1.29) Net assets, end of period B $ Net asset value (s) D $ 259 Securities outstanding D,846 Management expense ratio S,Z 1.2% Management expense ratio before waivers or absorptions S,Z 1.4% Trading expense ratio G.28% Portfolio turnover rate H 8.13% Net asset value per security, end of period $

15 Fidelity Canadian Growth Company Fund Series P3 Periods ended June, U Net assets, beginning of period B $.51 $ 9.85 $. Total revenue Total expenses (excluding distributions) (.15) (.13) (.8) Realized gains (losses) Unrealized gains (losses) 1.45 (.13).26 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.17) (.6) (.7) Return of capital Total distributions B,C (.17) (.6) (.7) Net assets, end of period B $ $.51 $ 9.85 Net asset value (s) D $ 4,315 $ 2,452 $ 119 Securities outstanding D 329, ,2 12,99 Management expense ratio P,V.97%.97%.98% Management expense ratio before waivers or absorptions P,V.98%.99%.99% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ $.591 $ Fidelity Canadian Growth Company Fund Series P4 Periods ended June, U Net assets, beginning of period B $.52 $ 9.86 $. Total revenue Total expenses (excluding distributions) (.17) (.13) (.4) Realized gains (losses) (.8) Unrealized gains (losses).53.5 (.53) Total increase (decrease) from operations B (.59) From net investment income (excluding dividends) From dividends From capital gains (.18) (.61) (.7) Return of capital Total distributions B,C (.18) (.61) (.7) Net assets, end of period B $ 13. $.52 $ 9.86 Net asset value (s) D $ 2,1 $ 48 $ 1 Securities outstanding D 166,298 4,589 8 Management expense ratio P,V.92%.91%.9% Management expense ratio before waivers or absorptions P,V.94%.94%.91% Trading expense ratio G.28%.29%.42% Portfolio turnover rate H 8.13% 25.98% % Net asset value per security, end of period $ 13.7 $.5163 $

16 Financial Highlights continued Fidelity Canadian Growth Company Fund Series P5 Periods ended June, AA Net assets, beginning of period B $.31 $. Total revenue..6 Total expenses (excluding distributions) (.8) (.5) Realized gains (losses) (.51).38 Unrealized gains (losses) 2.84 (.9) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains (.18) Return of capital Total distributions B,C (.18) Net assets, end of period B $ $.31 Net asset value (s) D $ 4 $ 4 Securities outstanding D 294 3,9 Management expense ratio K,BB.87%.87% Management expense ratio before waivers or absorptions K,BB.88%.9% Trading expense ratio G.28%.29% Portfolio turnover rate H 8.13% 25.98% Net asset value per security, end of period $ $.62 14

17 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, (18: %, 17:.1%, 16:.1%, 15: %, 14: % ). 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 September 16, 16 (commencement of sale of securities) to June, 17. K 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, (18: -%, 17:.1% ). L Effective September, 16, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. M For the period January 6, 17 (commencement of sale of securities) to June, 17. N 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. O For the period February 5, 16 (commencement of sale of securities) to June, 16. P 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, (18: -%, 17:.1%, 16:.1%). Q 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. R For the period April, 18 (commencement of sale of securities) to June, 18. S 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. T Effective April 24, 18, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. U For the period December 4, 15 (commencement of sale of securities) to June, 16. V 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. W For the period April 21, 17 (commencement of sale of securities) to June, 17. X Effective April 25, 17, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. Y For the period July 14, 17 (commencement of sale of securities) to June, 18. Z Effective July 18, 17, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. AA For the period January 26, 17 (commencement of sale of securities) to June, 17. BB 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. 15

18 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.% 78.8% 21.92% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% % % Series T8 2.% 147.9% -47.9% 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 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 P4.725%.% Series P5.675%.% 16

19 Fidelity Canadian Growth Company 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 September 16, Series F Series F Commencement of Operations is September 16, 16 Series O

20 Fidelity Canadian Growth Company Fund Past Performance continued Series T5 Series E Commencement of Operations is January 6, 17 Commencement of Operations is February 5, 16 Series T8 Series E1T Commencement of Operations is January 6, 17 Commencement of Operations is April, 18 Series S5 Series E Commencement of Operations is January 6, 17 Series S8 Commencement of Operations is February 5, 16 Series E Commencement of Operations is January 6, 17 Commencement of Operations is February 5, 16 18

21 Series E4 Series P Commencement of Operations is February 5, 16 Series E5 Commencement of Operations is December 4, 15 Series P2T Commencement of Operations is February 5, 16 Series P1 Commencement of Operations is July 14, 17 Series P Commencement of Operations is December 4, 15 Series P1T5 Commencement of Operations is December 4, 15 Series P Commencement of Operations is April 21, 17 Commencement of Operations is December 4, 15 19

22 Fidelity Canadian Growth Company Fund Past Performance continued 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 blended benchmark, as described below. Average Annual Total Returns Fidelity Canadian Growth Company Fund Series A 25.5% 13.2% 17.8% 9.8% n/a Fidelity Canadian Growth Company Fund Series B 25.7% 13.4% 18.%.% n/a Fidelity Canadian Growth Company Fund Series F 27.2% 14.7% 19.4% 11.3% n/a Fidelity Canadian Growth Company Fund Series F5 27.1% n/a n/a n/a.1% Fidelity Canadian Growth Company Fund Series F8 27.1% n/a n/a n/a.2% Fidelity Canadian Growth Company Fund Series O 28.5% 16.%.7% 12.5% n/a Fidelity Canadian Growth Company Fund Series T5 25.4% n/a n/a n/a 19.1% Fidelity Canadian Growth Company Fund Series T8 25.5% n/a n/a n/a 19.2% Fidelity Canadian Growth Company Fund Series S5 25.7% n/a n/a n/a 19.4% Fidelity Canadian Growth Company Fund Series S8 25.7% n/a n/a n/a 19.4% Fidelity Canadian Growth Company Fund Series E1 25.8% 13.5% 18.1%.1% n/a Fidelity Canadian Growth Company Fund Series E1T5 25.8% n/a n/a n/a 19.4% Fidelity Canadian Growth Company Fund Series E2 25.9% 13.5% 18.1%.1% n/a Fidelity Canadian Growth Company Fund Series E3 26.% 13.6% 18.2%.1% n/a Fidelity Canadian Growth Company Fund Series E4 26.1% 13.7% 18.2%.1% n/a Fidelity Canadian Growth Company Fund Series E5 26.1% 13.7% 18.2%.1% n/a Fidelity Canadian Growth Company Fund Series P1 27.2% 14.8% 19.4% 11.3% n/a Fidelity Canadian Growth Company Fund Series P1T5 27.2% n/a n/a n/a.2% Fidelity Canadian Growth Company Fund Series P2 27.2% 14.8% 19.5% 11.3% n/a Fidelity Canadian Growth Company Fund Series P2T5 27.3% n/a n/a n/a.2% Fidelity Canadian Growth Company Fund Series P3 27.3% 14.8% 19.5% 11.3% n/a Fidelity Canadian Growth Company Fund Series P4 27.4% 14.9% 19.5% 11.4% n/a Fidelity Canadian Growth Company Fund Series P5 27.5% 14.8% 19.5% 11.3% n/a Fidelity Canadian Growth Company Fund Blend Index 12.1% 9.1% 12.1% 6.2% 12.% S&P/TSX Composite Index.4% 7.% 9.2% 4.2%.1% The period used for the since inception Fidelity Canadian Growth Company Fund Blend Index and S&P/TSX Composite Index returns are based on Series F5 which has been in existence the longest compared to all Series with less than years of operations. A discussion of the performance of the Fund can be found in the Results of Operations section of this report. In the above table, we compare the Fund s annual compound returns with a broad index, the S&P/TSX Composite Index, and with a narrow index consisting of a combination of the S&P/ TSX Capped Composite Index (7.%) and the S&P 5 Index (.%). For the narrow index, the S&P/TSX Completion Index was used from March 16, 7, to September, 8, and a blend of the S&P/TSX Capped Composite Index (7.%) and the S&P 5 Index (.%) onwards. The narrow index was changed to its current blend concurrent with changes we Past 1 year Past 3 years Past 5 years Past years Since Inception

23 made to the investment strategies of this Fund which allow the portfolio manager greater flexibility to invest the Fund in larger-capitalization and non-domestic equity securities. For more information on the Fund s investment objectives and strategies, please refer to the Fund s Simplified Prospectus. The S&P/TSX Composite Index is an index of stocks that are generally considered to represent the Canadian equity market. The S&P/TSX Capped Composite Index is the same as the S&P/TSX Composite Index except that it is adjusted quarterly so that no single stock has a relative weight in the index greater than.%. The S&P 5 Index is a widely recognized index of 5 U.S. common stocks of large and mid-capitalization companies. The S&P/TSX Completion Index is a market capitalization weighted, total return index comprising of all stocks within the S&P/TSX Composite Index, excluding the members of the S&P/TSX 6 Index. It represents Small and Mid Cap within the S&P/TSX Composite Index. Each Series will have different returns because of differences in management fees and expenses. 21