Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Semi-Annual Management Report of Fund Performance 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 Semi-Annual Management Report of Fund Performance as at 18 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. This semi-annual management report of fund performance contains financial highlights but does not contain the complete semi-annual financial statements for the investment fund. You can get a copy of the semi-annual financial statements at your request, and at no cost, by calling , by writing to us at Fidelity Investments, 483 Bay St. Suite 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 Results of Operations Fidelity Insights Currency Neutral Class (Fund) invests substantially all of its assets in securities of Fidelity Insights Investment Trust (Underlying Fund). Fidelity Insights Currency Neutral Class, Series B, returned 8.%, after fees and expenses, for the six-month period ending 18, outperforming its benchmark, the S&P 5 Index Hedged CAD, broadly representative of U.S. equities, which returned 2.5% (in Canadian dollar terms) for the same period. Market overview: U.S. markets registered strong performance, driven by positive economic data, rising crude oil prices, and robust corporate earnings. However, throughout the period there were bouts of volatility as fears of a global trade war intensified. The U.S. Federal Reserve (Fed) kept interest rates unchanged at its early May meeting after a hike in March. The Fed indicated two more interest rate hikes of.25% each in 18, contingent on economic data. The final estimate of first quarter GDP came in at 2.2%, lower compared to its previous estimate of 2.3%, largely due to tepid consumer spending, and lower inventories and exports. Factors Affecting Performance During the review period, the Fund outperformed its benchmark, the S&P 5 Index Hedged CAD, primarily due to the Underlying Fund s investments in the consumer discretionary sector. The Underlying Fund s holdings in the information technology sector also contributed to relative returns. In contrast, exposure to energy and materials sector stocks detracted from relative returns. In the consumer discretionary sector, the Underlying Fund s exposures to U.S.-based online entertainment provider Netflix and e-commerce company Amazon contributed to relative performance. The Underlying Fund s higher-than-benchmark exposure to the information technology sector also contributed to relative performance. In the sector, the Underlying Fund s exposures to U.S.-based software and services provider Adobe and cloud computing company Salesforce.com contributed to relative performance. In contrast, the Fund s exposures to the energy and materials sector detracted from relative returns. In the energy sector, lower-than-benchmark exposure to U.S.-based oil and gas company ConocoPhillips detracted from relative performance. In the materials sectors, an investment in U.S.-based chemicals company DowDuPont detracted from relative performance. In other sectors, lower-than-benchmark exposures to U.S.-based technology company Apple and Intel, and a higher-than-benchmark exposure to U.S. bank Citigroup, detracted from relative performance. Portfolio Changes: During the review period, the portfolio manager made several changes to the Underlying Fund s holdings. Exposure was added to the energy sector and reduced to the information technology sector. In the energy sector, a new position was initiated in U.S.-based oil and gas producer ConocoPhillips, and exposure was increased to U.S-based petroleum and natural gas exploration company EOG Resources, on prospects of rising oil prices. In the information technology sector, positions in American semiconductor manufacturer Applied Materials were exited and exposure to Apple was reduced when these stocks reached the portfolio manager s target price. At the end of the period, the Fund had its largest sector exposures to information technology and consumer discretionary. In these sectors, the portfolio manager favoured companies that had strong business prospects, high returns on capital, capable management teams and attractive valuations. In terms of geographic exposure, the U.S. accounted for the Fund s largest absolute exposure. Derivative Disclosure: During the period under review, the Fund engaged in forward contracts, in a manner consistent with its investment objectives and strategies, to hedge as completely as possible against the effect of currency fluctuations on investment returns. The use of forward contracts in this manner does not completely eliminate the impact of currency fluctuations on returns. Hedging is done for developed market currencies like the U.S. dollar, Japanese yen, euro and British pound, most of which appreciated against the Canadian dollar during the review period. The Fund does not hedge against emerging market currencies, which can be difficult and costly to hedge and present additional risks to the Fund. Recent Developments Portfolio manager Will Danoff has found attractive investment opportunities in the information technology sector, believing that many top companies there have the potential for significant growth. He emphasizes what he considers to be franchise companies in technology: those with dominant positions, particularly in the online mobile advertising space. He believes they can continue to grow their revenues as consumers search the web more often from their smartphones. Mr. Danoff has also found attractive investment opportunities in financials; he believes if economic growth continues under a pro-business ne U.S. administration, interest rates should continue to rise. Higher rates should increase profit margins for banks, which are likely to 1

4 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued benefit further if Congress eases the regulatory environment. Globally, he currently prefers U.S.-centric companies, believing the U.S. economy should remain strong. Despite U.S. market valuations being elevated, he believes the outlook for the companies he owns is positive, and that they have the opportunity to grow meaningfully over the next two or three years. 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 provides investment advice with respect to the Fund s investment portfolio and arranges for the acquisition and disposition of portfolio investments, including all necessary brokerage arrangements. The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $2,684, for the period ended 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 $475, for the period ended 18. 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 Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series A A Net assets, beginning of period C $ $. Total revenue.4 Total expenses (excluding distributions) (.17) (.25) Realized gains (losses) (.3).15 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 66,847 $ 4,177 Securities outstanding E 4,978,451 3,228,181 Management expense ratio F,G 2.56% 2.58% Management expense ratio before waivers or absorptions F,G 2.64% 2.64% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series B A Net assets, beginning of period C $ $. Total revenue.4 Total expenses (excluding distributions) (.15) (.23) Realized gains (losses) (.7).8 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 113,412 $ 59,927 Securities outstanding E 8,345,853 4,811,335 Management expense ratio F,G 2.35% 2.37% Management expense ratio before waivers or absorptions F,G 2.42% 2.42% Net asset value per security, end of period $ $

6 Financial Highlights continued Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series F A Net assets, beginning of period C $ 12.6 $. Total revenue.4 Total expenses (excluding distributions) (.8) (.12) Realized gains (losses).9 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ 12.6 Net asset value (s) E $ 18,964 $ 114,137 Securities outstanding E 13,259,742 9,96,18 Management expense ratio F,G 1.21% 1.22% Management expense ratio before waivers or absorptions F,G 1.24% 1.24% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series F A Net assets, beginning of period C $ $. Total revenue.7 Total expenses (excluding distributions) (.15) (.23) Realized gains (losses) (.6) (.29) Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.5) (.83) Total distributions C,D (.5) (.83) Net assets, end of period C $ $ Net asset value (s) E $ 9,333 $ 3,447 Securities outstanding E 36, ,818 Management expense ratio F,G 1.% 1.21% Management expense ratio before waivers or absorptions F,G 1.23% 1.24% Net asset value per security, end of period $ $

7 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series F A Net assets, beginning of period C $ $. Total revenue.8 Total expenses (excluding distributions) (.15) (.22) Realized gains (losses).6.28 Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.8) (1.33) Total distributions C,D (.8) (1.33) Net assets, end of period C $ $ Net asset value (s) E $ 3,436 $ 2,255 Securities outstanding E 137,84 95,14 Management expense ratio F,G 1.21% 1.22% Management expense ratio before waivers or absorptions F,G 1.24% 1.25% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series T A Net assets, beginning of period C $ 24.1 $. Total revenue.6 Total expenses (excluding distributions) (.31) (.47) Realized gains (losses) (.7).16 Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.5) (.83) Total distributions C,D (.5) (.83) Net assets, end of period C $ 25.4 $ 24.1 Net asset value (s) E $ 8,63 $ 3,747 Securities outstanding E 338, ,159 Management expense ratio F,G 2.49% 2.52% Management expense ratio before waivers or absorptions F,G 2.56% 2.58% Net asset value per security, end of period $ $

8 Financial Highlights continued Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series T A Net assets, beginning of period C $ $. Total revenue.5 Total expenses (excluding distributions) (.3) (.46) Realized gains (losses) (.4) (.32) Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.8) (1.33) Total distributions C,D (.8) (1.33) Net assets, end of period C $ 24.5 $ Net asset value (s) E $ 2,723 $ 723 Securities outstanding E 111,385 3,831 Management expense ratio F,G 2.49% 2.48% Management expense ratio before waivers or absorptions F,G 2.56% 2.54% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series S A Net assets, beginning of period C $ 24.4 $. Total revenue.8 Total expenses (excluding distributions) (.29) (.45) Realized gains (losses) (.5).65 Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.5) (.83) Total distributions C,D (.5) (.83) Net assets, end of period C $ $ 24.4 Net asset value (s) E $ 1,516 $ 1,97 Securities outstanding E 59,551 45,656 Management expense ratio F,G 2.35% 2.36% Management expense ratio before waivers or absorptions F,G 2.41% 2.42% Net asset value per security, end of period $ $

9 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series S A Net assets, beginning of period C $ $. Total revenue.5 Total expenses (excluding distributions) (.28) (.44) Realized gains (losses) (.18) (.7) Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.8) (1.33) Total distributions C,D (.8) (1.33) Net assets, end of period C $ $ Net asset value (s) E $ 2,346 $ 71 Securities outstanding E 95,887 3,374 Management expense ratio F,G 2.35% 2.35% Management expense ratio before waivers or absorptions F,G 2.42% 2.41% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series E A Net assets, beginning of period C $ $. Total revenue.4 Total expenses (excluding distributions) (.15) (.22) Realized gains (losses) (.7).5 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 25,96 $ 13,154 Securities outstanding E 1,862,994 1,53,725 Management expense ratio F,G 2.29% 2.3% Management expense ratio before waivers or absorptions F,G 2.35% 2.35% Net asset value per security, end of period $ $

10 Financial Highlights continued Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series E1T A Net assets, beginning of period C $ 24.4 $. Total revenue.7 Total expenses (excluding distributions) (.29) (.44) Realized gains (losses) (.9).12 Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.5) (.83) Total distributions C,D (.5) (.83) Net assets, end of period C $ $ 24.4 Net asset value (s) E $ 1,38 $ 499 Securities outstanding E 4,775,794 Management expense ratio F,G 2.31% 2.32% Management expense ratio before waivers or absorptions F,G 2.38% 2.38% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series E J Net assets, beginning of period C $ $. Total revenue.4 Total expenses (excluding distributions) (.14) (.15) Realized gains (losses).2.16 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 5,139 $ 3,15 Securities outstanding E 39, ,917 Management expense ratio F,K 2.21% 2.22% Management expense ratio before waivers or absorptions F,K 2.28% 2.28% Net asset value per security, end of period $ $

11 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series E2T L Net assets, beginning of period C $ $. Total revenue.8 Total expenses (excluding distributions) (.24) (.8) Realized gains (losses).3 (.5) Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.5) (.25) Total distributions C,D (.5) (.25) Net assets, end of period C $ $ Net asset value (s) E $ 24 $ 237 Securities outstanding E,747 11,214 Management expense ratio F,M 2.% 2.25% Management expense ratio before waivers or absorptions F,M 2.27% 2.31% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series E N Net assets, beginning of period C $ $. Total revenue.3 Total expenses (excluding distributions) (.13) (.13) Realized gains (losses).11.2 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 1,18 $ 458 Securities outstanding E 94,468 39,656 Management expense ratio F,O 2.19% 2.19% Management expense ratio before waivers or absorptions F,O 2.26% 2.25% Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series E N Net assets, beginning of period C $ $. Total revenue.11 Total expenses (excluding distributions) (.12) (.13) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ 12.5 $ Net asset value (s) E $ 1 $ 257 Securities outstanding E 81 22,194 Management expense ratio F,O 2.% 2.11% Management expense ratio before waivers or absorptions F,O 2.17% 2.17% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series E N Net assets, beginning of period C $ $. Total revenue.4 Total expenses (excluding distributions) (.12) (.) Realized gains (losses).6.2 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 1 $ 1 Securities outstanding E Management expense ratio F,O 1.93% 2.7% Management expense ratio before waivers or absorptions F,O 2.27% 2.15% Net asset value per security, end of period $ $

13 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series P A Net assets, beginning of period C $ $. Total revenue.4 Total expenses (excluding distributions) (.7) (.11) Realized gains (losses) (.3).6 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ 13.7 $ Net asset value (s) E $ 56,6 $ 34,48 Securities outstanding E 4,94,947 2,739,494 Management expense ratio F,G 1.13% 1.14% Management expense ratio before waivers or absorptions F,G 1.16% 1.16% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series P1T A Net assets, beginning of period C $ $. Total revenue.6 Total expenses (excluding distributions) (.15) (.22) Realized gains (losses) (.2) (2.26) Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.5) (.83) Total distributions C,D (.5) (.83) Net assets, end of period C $ $ Net asset value (s) E $ 3,382 $ 1,353 Securities outstanding E 13,792 55,757 Management expense ratio F,G 1.15% 1.16% Management expense ratio before waivers or absorptions F,G 1.19% 1.19% Net asset value per security, end of period $ $

14 Financial Highlights continued Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series P N Net assets, beginning of period C $ $. Total revenue.4 Total expenses (excluding distributions) (.6) (.6) Realized gains (losses) (.1) (.3) Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 17,985 $ 15,573 Securities outstanding E 1,38,282 1,339,2 Management expense ratio F,O 1.2% 1.3% Management expense ratio before waivers or absorptions F,O 1.5% 1.6% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series P2T N Net assets, beginning of period C $ $. Total revenue.7 Total expenses (excluding distributions) (.13) (.13) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations C Return of capital (.5) (.58) Total distributions C,D (.5) (.58) Net assets, end of period C $ 24.8 $ Net asset value (s) E $ 412 $ 178 Securities outstanding E 17,87 7,892 Management expense ratio F,O 1.7% 1.6% Management expense ratio before waivers or absorptions F,O 1.% 1.% Net asset value per security, end of period $ $

15 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series P N Net assets, beginning of period C $ $. Total revenue.2 Total expenses (excluding distributions) (.6) (.6) Realized gains (losses) (.9).87 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 6,37 $ 1,4 Securities outstanding E 477, ,8 Management expense ratio F,O 1.1% 1.2% Management expense ratio before waivers or absorptions F,O 1.4% 1.5% Net asset value per security, end of period $ $ Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series P N Net assets, beginning of period C $ $. Total revenue.6 Total expenses (excluding distributions) (.5) (.5) Realized gains (losses).33.9 Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 4,677 $ 7,2 Securities outstanding E 369,455 6,266 Management expense ratio F,O.89%.9% Management expense ratio before waivers or absorptions F,O.92%.93% Net asset value per security, end of period $ $

16 Financial Highlights continued Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Series P N Net assets, beginning of period C $ $. Total revenue.3 Total expenses (excluding distributions) (.5) (.6) Realized gains (losses) (.14) (.99) Unrealized gains (losses) Total increase (decrease) from operations C Net assets, end of period C $ $ Net asset value (s) E $ 11,921 $ 5,918 Securities outstanding E 941,37 58,298 Management expense ratio F,O.89%.92% Management expense ratio before waivers or absorptions F,O.93%.95% Net asset value per security, end of period $ $

17 Financial Highlights Footnotes A For the period January 3, 17 (inception date) to 17. B This information is derived from the Fund s audited annual and/or unaudited interim financial statements. 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. C 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. D 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. E This information is provided as at period end of the year shown. F 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. G 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. H 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. I 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. J For the period April 21, 17 (commencement of sale of securities) to 17. K 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. L For the period September 22, 17 (commencement of sale of securities) to 17. M Effective September 26, 17, the manager of the Fund has waived a portion of its administration fee and as of the date of the MRFP has continued to provide the Fund with such waivers. The manager may terminate the waiver at any time, at its sole discretion. It is not known when such waivers will be terminated. N For the period May, 17 (commencement of sale of securities) to 17. O Effective May 12, 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 of the Fund. The Fund pays Fidelity a monthly management fee for its services, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity uses these management fees to pay for sales and trailing commissions to registered dealers on the distribution of the Fund securities, as well as for general investment management expenses. Dealer compensation represents cash commissions paid by Fidelity to registered dealers during the period and includes upfront deferred sales charge and trailing commissions. This amount may, in certain circumstances, exceed % of the fees earned by Fidelity during the period. For new Funds or Series the amounts presented may not be indicative of longer term operating periods. Management Fees Dealer Compensation Investment management, administration and other Series A 2.% 3.61% -3.61% Series B 1.85% 54.5% 45.95% Series F.85%.% Series F5.85%.% Series F8.85%.% Series T5 2.% 88.92% 11.8% Series T8 2.% % % 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 P4.725%.% Series P5.675%.% 16

19 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Past Performance The performance information shown assumes that all distributions made by the Fund in the periods shown were reinvested in additional securities of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. The performance data shown for the period occurring prior to the commencement of operations of a series P or E is that of the corresponding series F or F5 (for series P) or B or S5 (for series E). Series F, F5, B and S5 have higher combined management and administration fees than the applicable series P and E. Had a series P or E existed since the commencement of operations of series F, F5, B or S5, the returns of the applicable series P or E would have been higher. Year-by-Year Returns The following bar chart shows the Fund s annual performance for each of the years shown, and illustrates how the Fund s performance was changed from year to year. In percentage terms, the bar chart shows how much an investment made on the first day of each financial year would have grown or decreased by the last day of each financial year. For each Series in the Yearby-Year Returns table below, the most recent returns stated are for the current six month period. Series A Series F Commencement of Operations is January 26, 17 Commencement of Operations is January 26, 17 Series B Series F Commencement of Operations is January 26, 17 Commencement of Operations is January 26, 17 Series F Series T Commencement of Operations is January 26, 17 Commencement of Operations is January 26, 17 17

20 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Past Performance continued Series T8 Series E1T Commencement of Operations is January 26, 17 Commencement of Operations is January 26, 17 Series S5 Series E Commencement of Operations is January 26, 17 Commencement of Operations is April 21, 17 Series S8 Series E2T Commencement of Operations is January 26, 17 Commencement of Operations is September 22, 17 Series E1 Series E Commencement of Operations is January 26, 17 Commencement of Operations is May, 17 18

21 Series E4 Series P Commencement of Operations is May, 17 Commencement of Operations is May, 17 Series E5 Series P2T Commencement of Operations is May, 17 Commencement of Operations is May, 17 Series P1 Series P Commencement of Operations is January 26, 17 Commencement of Operations is May, 17 Series P1T5 Series P Commencement of Operations is January 26, 17 Commencement of Operations is May, 17 19

22 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Past Performance continued Series P Commencement of Operations is May,

23 Fidelity Insights Currency Neutral Class of the Fidelity Capital Structure Corp. Summary of Investment Portfolio as at 18 Sector Mix % of Fund s Net Assets as at 5/31/18 % of Fund s Net Assets as at 11/3/17 Information Technology Consumer Discretionary Financials Energy Health Care Industrials Materials Consumer Staples Others (Individually Less Than 1%).1 1. Canadian Bonds.1. Cash and Cash Equivalents Net Other Assets (Liabilities) (1.2) (.7) Derivative Exposure % of Fund s Net Assets as at 5/31/18 % of Fund s Net Assets as at 11/3/17 Forward Foreign Currency Contracts (1.1) (.2) Forward Foreign Currency Contracts percentage is calculated by dividing the net unrealized gain/loss of all contracts held by total net assets. Geographic Mix % of Fund s Net Assets as at 5/31/18 % of Fund s Net Assets as at 11/3/17 United States of America Canada Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) (1.2) (.7) Top Issuers % of Fund s Net Assets 1. Amazon.com, Inc Facebook, Inc Microsoft Corp Alphabet, Inc Netflix, Inc Cash and Cash Equivalents Salesforce.com, Inc Bank of America Corp Adobe Systems, Inc JPMorgan Chase & Co PayPal Holdings, Inc UnitedHealth Group, Inc Charles Schwab Corp Berkshire Hathaway, Inc Visa, Inc MasterCard, Inc Citigroup, Inc EOG Resources, Inc NVIDIA Corp ConocoPhillips Co Workday, Inc Hilton Worldwide Holdings, Inc Hess Corp Morgan Stanley McDonald s Corp. 1. Total Fund Net Assets $521,54, 58.5 Where applicable, the information in the above tables includes the Fund s pro-rata share of the investment in any Fidelity managed underlying fund. The Fund uses derivatives to try to minimize the exposure to currency fluctuations between foreign currencies in developed markets and the Canadian dollar. The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund. The most recent annual report, semi-annual report, quarterly report, fund facts document or simplified prospectus for the investment fund and/or underlying fund is available at no cost, by calling , by writing to us at Fidelity Investments Canada ULC, 483 Bay St. Suite 3, Toronto ON M5G 2N7 or by visiting our web site at or SEDAR at 21

24 Fidelity Capital Structure Corp. 47 2nd Street S.W., Suite 8 Calgary, Alberta T2P 2Y3 Manager and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada Toronto, Ontario Visit us online at or call Fidelity Client Services at Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their securities in any Fidelity Fund. Fidelity Global Funds may be more volatile than other Fidelity Funds as they concentrate investments in one sector and in fewer issuers; no single Fund is intended to be a complete diversified investment program. Past performance is no assurance or indicator of future returns. There is no assurance that either Fidelity Canadian Money Market Fund, Fidelity U.S. Money Market Fund or Fidelity U.S. Money Market Investment Trust will be able to maintain its net asset value at a constant amount. The breakdown of Fund investments is presented to illustrate the way in which a Fund may invest, and may not be representative of a Fund s current or future investments. A Fund s investments may change at any time. Fidelity Investments is a registered trademark of Fidelity Investments Canada ULC E FICL-UGN-CS-MRFPS-718