Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp.

Transcription

1 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Semi-Annual Management Report of Fund Performance May 31, 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 May 31, 18 Fidelity Global Concentrated Equity 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 MG 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 Global Concentrated Equity Class (Fund) invests substantially all of its assets in securities of Fidelity Global Concentrated Equity Fund (Underlying Fund). Fidelity Global Concentrated Equity Class, Series B, returned -.8% after fees and expenses, for the six-month period ended May 31, 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. Global equities, as broadly represented by the MSCI ACWI (All Country World Index) Index, returned 2.4% (in Canadian dollar terms) for the same period. Market overview: Global equities registered positive returns during the review period on higher commodity prices, encouraging economic data, and a recovery in global demand. Towards the end of the review period, markets were weighed by heightened worries of a global trade war, political uncertainty in Italy and Spain, and concerns regarding faster interest rate hikes by the U.S. Federal Reserve (Fed). The Fed increased the target federal funds rate two times during the review period against the backdrop of continued strength in the U.S. economy. U.S. markets registered strong performance, driven by positive economic data, rising crude oil prices, and robust corporate earnings. Asian markets gained amid healthy economic data releases in China, however, there were bouts of volatility towards the end of the review period, due to trade war concerns and a stronger U.S. dollar. Canadian equities gained on strengthening energy stocks and an accommodative monetary policy. European equities declined as rising political uncertainty decreased investor appetite for riskier assets. However, the U.K. markets gained on improving economic fundamentals and a weak sterling that boosted shares of exporters. Emerging markets underperformed towards the end of the review period on a rising U.S. dollar, intensifying fears of a global trade war and expectations of faster-than-anticipated interest rate hikes by the Fed. Factors affecting performance: The Fund underperformed the broad global equities index, primarily due to the Underlying Fund s holdings in the consumer discretionary sector. In this sector, exposure to Brazil-based private education company Kroton Educacional, and Australia-based G8 Education, detracted from relative returns. In addition, lower-than-benchmark exposure to, and holdings in, the information technology sector also detracted from relative performance. In the information technology sector, lack of exposure to U.S.-based technology companies Microsoft, Apple and Intel detracted from relative returns. In contrast, the Underlying Fund s investments in the financials and utilities sectors contributed to relative performance. In the financials sector, exposure to Sweden-based online savings and investment solutions provider Avanza, and U.S.-based brokerage firm TD Ameritrade, contributed to relative returns. In the utilities sector, exposure to China-based utilities company ENN Energy contributed to relative returns. Portfolio changes: During the review period, the Underlying Fund s exposure to the consumer discretionary and energy sectors increased. Among consumer discretionary companies, the portfolio manager initiated investments in several consumer durables and services firms. The portfolio manager found opportunities in high-quality businesses that were generally less economically sensitive, and where valuations were reasonable. In the energy sector, a position was started in U.S.-based oilfield services company Schlumberger, and Indian energy and petrochemicals conglomerate Reliance Industries, owing to their strong fundamentals and attractive risk and reward profiles. In contrast, exposure to the consumer staples and financials sectors declined. Among consumer staples stocks, the portfolio manager closed the exposure to Welcia Holdings, as the stock had appreciated significantly, and the portfolio manager believed the valuation appeared extended. In the financials sector, exposures to Interactive Brokers, Euronext, S&P Global and Allied Irish Bank were closed, as the portfolio manager opted to realize on profits, or invest in other opportunities with more attractive risk/reward profile. Recent Developments Portfolio manager Patrice Quirion continues to take a long-term approach to investing, focusing on companies that have sustainable quality and are growing steadily and predictably with as little cyclicality as possible. He is minimizing exposure to commodity-related firms where there are significant factors outside of management control. The portfolio manager is focusing on global leaders, multinationals and high-quality companies that can deliver good returns over the long term. He is also looking for companies that have characteristics similar to those of big leading multinationals, but are global leaders in a niche area. More recently, Mr. Quirion has been taking a closer look at U.K.-listed companies with significant international exposure; he believes many of these companies are trading at attractive valuations as the U.K. begins to see some signs of pressure on the economy. As at May 31, 18, the Underlying Fund s largest absolute exposure was to the consumer discretionary sector, followed by the industrials sector. The Fund held higher-than-benchmark exposures to the consumer discretionary and industrials sectors. In contrast, the Underlying Fund had lower-than-benchmark exposures to the information technology and energy sectors. Geographically, the U.S. accounted for the Fund s largest absolute exposure, followed by the U.K. 1

4 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Management Discussion of Fund Performance continued 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 $1,8, for the period ended May 31, 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 $, for the period ended May 31, 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 Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series A May 31, Periods ended November 3, A Net assets, beginning of period C $.96 $ $ 12.8 $.96 $. Total revenue Total expenses (excluding distributions) (.) (.39) (.33) (.33) (.26) Realized gains (losses) Unrealized gains (losses) (.7) 2. (.12) Total increase (decrease) from operations C (.34) From net investment income (excluding dividends) From dividends From capital gains (.16) Return of capital Total distributions C,D (.16) Net assets, end of period C $.81 $.96 $ $ 12.8 $.96 Net asset value (s) E $ 28,16 $ 18,427 $ 4,4 $,6 $ 4,4 Securities outstanding E 1,77,7 1,6,949 3,29 441,692 42,731 Management expense ratio F,G 2.3% 2.6% 2.64% 2.67% 2.72% Management expense ratio before waivers or absorptions F,G 2.62% 2.69% 2.71% 2.72% 2.73% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $.8133 $.962 $ $ $.96 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series B May 31, Periods ended November 3, A Net assets, beginning of period C $ 16.7 $ $ $.99 $. Total revenue Total expenses (excluding distributions) (.19) (.36) (.31) (.3) (.24) Realized gains (losses) Unrealized gains (losses) (.64) 2.41 (.93) Total increase (decrease) from operations C (.27) 2.6 (.7) From net investment income (excluding dividends) From dividends From capital gains (.17) Return of capital Total distributions C,D (.17) Net assets, end of period C $.94 $ 16.7 $ $ $.99 Net asset value (s) E $ 32,712 $,41 $ 3,66 $,764 $ 3,669 Securities outstanding E 2,4,732 1,282,26 264, ,66 333,942 Management expense ratio F,G 2.3% 2.4% 2.44% 2.47% 2.49% Management expense ratio before waivers or absorptions F,G 2.43% 2.48% 2.49% 2.49% 2.% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $.938 $ $ $ $.986 3

6 Financial Highlights continued Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series F May 31, Periods ended November 3, A Net assets, beginning of period C $ $ $ $ 11. $. Total revenue Total expenses (excluding distributions) (.) (.19) (.16) (.16) (.13) Realized gains (losses) Unrealized gains (losses) (.7) 2. (.19) Total increase (decrease) from operations C (.11) From net investment income (excluding dividends) From dividends From capital gains (.36) Return of capital Total distributions C,D (.36) Net assets, end of period C $ 16.7 $ $ $ $ 11. Net asset value (s) E $ 36,434 $ 32,244 $ 2,63 $ 4,69 $ 2,837 Securities outstanding E 2,194,16 1,942, ,68 38,36 2,738 Management expense ratio F,G 1.19% 1.23% 1.22% 1.26% 1.3% Management expense ratio before waivers or absorptions F,G 1.27% 1.32% 1.29% 1.34% 1.36% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $ $ $ $ $ Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series F May 31, Periods ended November 3, A Net assets, beginning of period C $ $ 2.9 $ $ $. Total revenue Total expenses (excluding distributions) (.16) (.33) (.29) (.3) (.2) Realized gains (losses) Unrealized gains (losses) (1.14) 2.9 (.24) Total increase (decrease) from operations C (.7) From net investment income (excluding dividends) From dividends (.1) From capital gains (.61) Return of capital (.66) (1.11) (1.) (1.) (.92) Total distributions C,D (.66) (1.73) (1.) (1.) (.92) Net assets, end of period C $ 27.2 $ $ 2.9 $ $ Net asset value (s) E $ 1,466 $ 1,4 $ 643 $ 1,182 $ 619 Securities outstanding E 3,814 1,86 2,64 48,963 29,18 Management expense ratio F,G 1.19% 1.23% 1.26% 1.27% 1.3% Management expense ratio before waivers or absorptions F,G 1.26% 1.32% 1.33% 1.3% 1.37% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $ $ $ 2.87 $ $

7 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series F8 May 31, Periods ended November 3, A Net assets, beginning of period C $ $ 22.9 $ $.62 $. Total revenue Total expenses (excluding distributions) (.) (.3) (.27) (.28) (.2) Realized gains (losses) Unrealized gains (losses) (1.22) Total increase (decrease) from operations C (.) From net investment income (excluding dividends) From dividends (.1) From capital gains (.6) Return of capital (.8) (1.6) (1.6) (1.6) (1.47) Total distributions C,D (.8) (2.17) (1.6) (1.6) (1.47) Net assets, end of period C $ 24. $ $ 22.9 $ $.62 Net asset value (s) E $ 1,63 $ 633 $ 174 $ 7 $ 127 Securities outstanding E 44,142 2,42 7,69 6,871 6,16 Management expense ratio F,G 1.% 1.24% 1.27% 1.27% 1.3% Management expense ratio before waivers or absorptions F,G 1.28% 1.33% 1.33% 1.3% 1.37% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $ $ $ $ $.6194 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series T May 31, Periods ended November 3, A Net assets, beginning of period C $ 26.8 $ 24.4 $ 23.2 $.9 $. Total revenue Total expenses (excluding distributions) (.34) (.67) (.6) (.61) (.47) Realized gains (losses) Unrealized gains (losses) (1.) Total increase (decrease) from operations C (.37) From net investment income (excluding dividends) From dividends (.1) From capital gains (.2) Return of capital (.64) (1.9) (1.) (1.) (.92) Total distributions C,D (.64) (1.3) (1.) (1.) (.92) Net assets, end of period C $ 2.92 $ 26.8 $ 24.4 $ 23.2 $.9 Net asset value (s) E $ 1,141 $ 1,7 $ 237 $ 178 $ 34 Securities outstanding E 44,9 37,61 9,877 7, 1,623 Management expense ratio F,G 2.% 2.62% 2.6% 2.67% 2.67% Management expense ratio before waivers or absorptions F,G 2.6% 2.71% 2.72% 2.73% 2.7% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $ 2.9 $ $ $ 23.1 $.919

8 Financial Highlights continued Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series T8 May 31, Periods ended November 3, A Net assets, beginning of period C $ $ $ $.37 $. Total revenue Total expenses (excluding distributions) (.31) (.6) (.6) (.9) (.49) Realized gains (losses) Unrealized gains (losses) (.97) Total increase (decrease) from operations C (.32) From net investment income (excluding dividends) From dividends (.1) From capital gains (.23) Return of capital (.8) (1.6) (1.6) (1.6) (1.47) Total distributions C,D (.8) (1.84) (1.6) (1.6) (1.47) Net assets, end of period C $ $ $ $ $.37 Net asset value (s) E $,44 $ 9,692 $ 6,28 $ 7,7 $ 6, Securities outstanding E 44,469 46,9 297,238 34, ,62 Management expense ratio F,G 2.8% 2.62% 2.6% 2.68% 2.72% Management expense ratio before waivers or absorptions F,G 2.68% 2.71% 2.72% 2.73% 2.74% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $ $ $ $ $.3689 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series S May 31, Periods ended November 3, A Net assets, beginning of period C $ $ $ $.99 $. Total revenue Total expenses (excluding distributions) (.32) (.61) (.) (.6) (.4) Realized gains (losses) Unrealized gains (losses) (1.1). (1.43) Total increase (decrease) from operations C (.7).93 (.8) From net investment income (excluding dividends) From dividends (.1) From capital gains (.3) Return of capital (.64) (1.9) (1.) (1.) (.92) Total distributions C,D (.64) (1.4) (1.) (1.) (.92) Net assets, end of period C $ 26. $ $ $ $.99 Net asset value (s) E $ 33 $ 29 $ 66 $ 219 $ 24 Securities outstanding E 12,667,973 2,74 9,267 12,77 Management expense ratio F,G 2.36% 2.42% 2.4% 2.44% 2.46% Management expense ratio before waivers or absorptions F,G 2.44% 2.% 2.% 2.47% 2.47% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $ $ $ $ 23.6 $.998 6

9 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series S8 May 31, Periods ended November 3, A Net assets, beginning of period C $ $ $ $.4 $. Total revenue Total expenses (excluding distributions) (.28) (.6) (.1) (.) (.44) Realized gains (losses) Unrealized gains (losses) (.9) Total increase (decrease) from operations C (.36) From net investment income (excluding dividends) From dividends (.1) From capital gains (.27) Return of capital (.8) (1.6) (1.6) (1.6) (1.47) Total distributions C,D (.8) (1.88) (1.6) (1.6) (1.47) Net assets, end of period C $ 23. $ $ $ $.4 Net asset value (s) E $ 4,294 $ 2,969 $ 1,3 $ 1,227 $ 478 Securities outstanding E 186, ,784 7,23 4,994 23,442 Management expense ratio F,G 2.39% 2.42% 2.4% 2.48% 2.49% Management expense ratio before waivers or absorptions F,G 2.47% 2.% 2.% 2.% 2.% Trading expense ratio H.33%.26%.%.17%.12% Portfolio turnover rate I 2.79% 4.49%.76% 39.7%.87% Net asset value per security, end of period $ $ $ $ $.416 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series E1 May 31, Periods ended November 3, J Net assets, beginning of period C $ $ 11.6 $. Total revenue.2. Total expenses (excluding distributions) (.) (.29) (.21) Realized gains (losses) Unrealized gains (losses) (.6) Total increase (decrease) from operations C (.24) From net investment income (excluding dividends) From dividends From capital gains (.16) Return of capital Total distributions C,D (.16) Net assets, end of period C $ $ $ 11.6 Net asset value (s) E $ 14,611 $ 9,274 $ 1,689 Securities outstanding E 1,9,37 687,47 14,2 Management expense ratio F,K 2.2% 2.32% 2.36% Management expense ratio before waivers or absorptions F,K 2.34% 2.4% 2.4% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $

10 Financial Highlights continued Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series E1T May 31, Periods ended November 3, J Net assets, beginning of period C $ $ $. Total revenue.1.22 Total expenses (excluding distributions) (.29) (.3) (.4) Realized gains (losses) Unrealized gains (losses) (.7) Total increase (decrease) from operations C (.47) From net investment income (excluding dividends) From dividends (.1) From capital gains (.3) Return of capital (.9) (1.1) (.77) Total distributions C,D (.9) (1.32) (.77) Net assets, end of period C $ 24. $ $ Net asset value (s) E $ 438 $ 89 $ 82 Securities outstanding E 18,167 3,73 3,66 Management expense ratio F,K 2.3% 2.3% 2.3% Management expense ratio before waivers or absorptions F,K 2.39% 2.37% 2.39% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $ Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series E2 May 31, Periods ended November 3, J Net assets, beginning of period C $ 13. $ $. Total revenue.2.4 Total expenses (excluding distributions) (.) (.28) (.) Realized gains (losses) Unrealized gains (losses) (.7) Total increase (decrease) from operations C (.19) From net investment income (excluding dividends) From dividends From capital gains (.16) Return of capital Total distributions C,D (.16) Net assets, end of period C $ 13.4 $ 13. $ Net asset value (s) E $ 7, $,171 $ 1,37 Securities outstanding E 22, , ,644 Management expense ratio F,K 2.19% 2.24% 2.28% Management expense ratio before waivers or absorptions F,K 2.28% 2.32% 2.32% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $

11 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series E2T May 31, Periods ended November 3, L Net assets, beginning of period C $ 22.3 $. Total revenue.2 Total expenses (excluding distributions) (.22) (.39) Realized gains (losses).6.3 Unrealized gains (losses) (1.8) 4.9 Total increase (decrease) from operations C (.68) 4.23 From net investment income (excluding dividends) From dividends From capital gains (.28) Return of capital (.2) (.93) Total distributions C,D (.2) (1.21) Net assets, end of period C $ $ 22.3 Net asset value (s) E $ 31 $ 24 Securities outstanding E 24,914 11,161 Management expense ratio F,M 2.% 2.% Management expense ratio before waivers or absorptions F,M 2.12% 2.18% Trading expense ratio H.33%.26% Portfolio turnover rate I 2.79% 4.49% Net asset value per security, end of period $ $ 22.3 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series E3 May 31, Periods ended November 3, N Net assets, beginning of period C $ $. Total revenue Total expenses (excluding distributions) (.13) (.) Realized gains (losses).32.3 Unrealized gains (losses) (.42) 1.92 Total increase (decrease) from operations C (.23) 1.7 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions C,D Net assets, end of period C $ 11.3 $ Net asset value (s) E $ 1,7 $ 1,289 Securities outstanding E 147, ,13 Management expense ratio F,O 2.% 2.16% Management expense ratio before waivers or absorptions F,O 2.24% 2.24% Trading expense ratio H.33%.26% Portfolio turnover rate I 2.79% 4.49% Net asset value per security, end of period $ $

12 Financial Highlights continued Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series E4 May 31, Periods ended November 3, P Net assets, beginning of period C $.64 $. Total revenue.2 Total expenses (excluding distributions) (.11) (.8) Realized gains (losses).49.2 Unrealized gains (losses) (.23).7 Total increase (decrease) from operations C From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions C,D Net assets, end of period C $.6 $.64 Net asset value (s) E $ 46 $ 221 Securities outstanding E 43,162,71 Management expense ratio F,Q 2.% 2.11% Management expense ratio before waivers or absorptions F,Q 2.19% 2.% Trading expense ratio H.33%.26% Portfolio turnover rate I 2.79% 4.49% Net asset value per security, end of period $.613 $.6377 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P1 May 31, Periods ended November 3, R Net assets, beginning of period C $ 12.8 $.82 $. Total revenue Total expenses (excluding distributions) (.7) (.13) (.12) Realized gains (losses) Unrealized gains (losses) (.48) Total increase (decrease) from operations C (.13) From net investment income (excluding dividends) From dividends From capital gains (.27) Return of capital Total distributions C,D (.27) Net assets, end of period C $ 12.6 $ 12.8 $.82 Net asset value (s) E $ 22,919 $ 13,4 $ 1,883 Securities outstanding E 1,834,278 1,7, ,3 Management expense ratio F,S 1.11% 1.% 1.18% Management expense ratio before waivers or absorptions F,S 1.18% 1.24% 1.24% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ 12. $ $.8171

13 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P1T May 31, Periods ended November 3, R Net assets, beginning of period C $ $.73 $. Total revenue Total expenses (excluding distributions) (.13) (.2) (.22) Realized gains (losses) Unrealized gains (losses) (.9) Total increase (decrease) from operations C (.16) From net investment income (excluding dividends) From dividends (.1) From capital gains (.2) Return of capital (.) (.92) (.83) Total distributions C,D (.) (1.4) (.83) Net assets, end of period C $ 22.2 $ $.73 Net asset value (s) E $ 2,34 $ 1,911 $ 833 Securities outstanding E 3,949 82,13 4,179 Management expense ratio F,S 1.12% 1.% 1.18% Management expense ratio before waivers or absorptions F,S 1.% 1.23% 1.24% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $.737 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P2 May 31, Periods ended November 3, R Net assets, beginning of period C $ 12.9 $.83 $. Total revenue.2.2 Total expenses (excluding distributions) (.7) (.13) (.11) Realized gains (losses) Unrealized gains (losses) (.2) Total increase (decrease) from operations C (.11) From net investment income (excluding dividends) From dividends From capital gains (.28) Return of capital Total distributions C,D (.28) Net assets, end of period C $ 12.7 $ 12.9 $.83 Net asset value (s) E $ 11,414 $ 8,667 $ 683 Securities outstanding E 98, ,24 63,98 Management expense ratio F,S 1.3% 1.7% 1.% Management expense ratio before waivers or absorptions F,S 1.11% 1.% 1.16% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $.83 11

14 Financial Highlights continued Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P2T May 31, Periods ended November 3, T Net assets, beginning of period C $ $.88 $. Total revenue.3.23 Total expenses (excluding distributions) (.12) (.24) (.4) Realized gains (losses) Unrealized gains (losses) (1.4) Total increase (decrease) from operations C (.63) From net investment income (excluding dividends) From dividends (.1) From capital gains (.4) Return of capital (.) (.92) (.21) Total distributions C,D (.) (1.47) (.21) Net assets, end of period C $ $ $.88 Net asset value (s) E $ 197 $ 192 $ 72 Securities outstanding E 8,67 8,29 33,624 Management expense ratio F,U 1.% 1.8% 1.% Management expense ratio before waivers or absorptions F,U 1.12% 1.% 1.% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $.877 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P3 May 31, Periods ended November 3, R Net assets, beginning of period C $ 12.6 $.8 $. Total revenue Total expenses (excluding distributions) (.6) (.12) (.8) Realized gains (losses) Unrealized gains (losses) (.) Total increase (decrease) from operations C (.37) From net investment income (excluding dividends) From dividends From capital gains (.31) Return of capital Total distributions C,D (.31) Net assets, end of period C $ 12.8 $ 12.6 $.8 Net asset value (s) E $ 1,82 $ 422 $ 8 Securities outstanding E 147,171 33, Management expense ratio F,S.93% 1.%.87% Management expense ratio before waivers or absorptions F,S.99% 1.8% 1.6% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ 12.8 $ $

15 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P3T May 31, Periods ended November 3, T Net assets, beginning of period C $ $.88 $. Total revenue.2.1 Total expenses (excluding distributions) (.12) (.22) (.4) Realized gains (losses) Unrealized gains (losses) (.8) Total increase (decrease) from operations C (.22) From net investment income (excluding dividends) From dividends (.1) From capital gains (.) Return of capital (.) (.92) (.21) Total distributions C,D (.) (1.48) (.21) Net assets, end of period C $ 22.7 $ $.88 Net asset value (s) E $ 71 $ 91 $ 37 Securities outstanding E 2,162 4,81 1,792 Management expense ratio F,U.99% 1.1% 1.4% Management expense ratio before waivers or absorptions F,U 1.7% 1.9% 1.% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ 22.7 $ $.8799 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P4 May 31, Periods ended November 3, R Net assets, beginning of period C $ $.8 $. Total revenue.1.8 Total expenses (excluding distributions) (.6) (.11) (.8) Realized gains (losses) Unrealized gains (losses) (.63) Total increase (decrease) from operations C (.26) From net investment income (excluding dividends) From dividends From capital gains (.31) Return of capital Total distributions C,D (.31) Net assets, end of period C $ 12.6 $ $.8 Net asset value (s) E $ 39 $ 346 $ 1 Securities outstanding E 31,324 27,4 Management expense ratio F,S.93%.93%.84% Management expense ratio before waivers or absorptions F,S 1.1% 1.2% 1.6% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $

16 Financial Highlights continued Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P4T May 31, 18 V Net assets, beginning of period C $. Total revenue Total expenses (excluding distributions) (.2) Realized gains (losses).2 Unrealized gains (losses) (.28) Total increase (decrease) from operations C (.28) From net investment income (excluding dividends) From dividends From capital gains Return of capital (.17) Total distributions C,D (.17) Net assets, end of period C $ 19.6 Net asset value (s) E $ 17 Securities outstanding E 26,43 Management expense ratio F,W.93% Management expense ratio before waivers or absorptions F,W.96% Trading expense ratio H.33% Portfolio turnover rate I 2.79% Net asset value per security, end of period $ Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Series P May 31, Periods ended November 3, R Net assets, beginning of period C $ $.8 $. Total revenue.8.8 Total expenses (excluding distributions) (.) (.8) (.8) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations C From net investment income (excluding dividends) From dividends From capital gains (.31) Return of capital Total distributions C,D (.31) Net assets, end of period C $ $ $.8 Net asset value (s) E $ 2,9 $ 1 $ 1 Securities outstanding E 198,778 3 Management expense ratio F,S.86%.69%.84% Management expense ratio before waivers or absorptions F,S.92% 1.4% 1.6% Trading expense ratio H.33%.26%.% Portfolio turnover rate I 2.79% 4.49%.76% Net asset value per security, end of period $ $ $

17 Financial Highlights Footnotes A For the period December, 13 (inception date) to November 3, 14. 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 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. 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 February, 16 (commencement of sale of securities) to November 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 January 6, 17 (commencement of sale of securities) to November 3, 17. M 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. N For the period January 26, 17 (commencement of sale of securities) to November 3, 17. O 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. P For the period July 14, 17 (commencement of sale of securities) to November 3, 17. Q 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. R For the period December 4, (commencement of sale of securities) to November 3, 16. S Effective December 8,, 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. T For the period September 16, 16 (commencement of sale of securities) to November 3, 16. U 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. V For the period April, 18 (commencement of sale of securities) to May 31, 18. W 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.

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.% 3.4% -3.4% Series B 1.8% 4.% 4.9% Series F.8%.% Series F.8%.% Series F8.8%.% Series T 2.% 73.29% 26.71% Series T8 2.% 49.42%.8% Series S 1.8% 4.% 4.9% Series S8 1.8% 4.% 4.9% Series E1 1.82% 4.79% 4.21% Series E1T 1.82% 4.79% 4.21% Series E2 1.8%.6% 44.44% Series E2T 1.8%.6% 44.44% Series E3 1.77% 6.34% 43.66% Series E4 1.72% 7.97% 42.3% Series P1.82%.% Series P1T.82%.% Series P2.8%.% Series P2T.8%.% Series P3.77%.% Series P3T.77%.% Series P4.72%.% Series P4T.72%.% Series P.67%.% 16

19 Fidelity Global Concentrated Equity 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 F (for series P) or B or S (for series E). Series F, F, B and S 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, F, B or S, 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 December 3, 13 Commencement of Operations is December 3, 13 Series B Series F Commencement of Operations is December 3, 13 Commencement of Operations is December 3, 13 Series F Series T Commencement of Operations is December 3, 13 Commencement of Operations is December 3, 13 17

20 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Past Performance continued Series T8 Series E1T Commencement of Operations is December 3, 13 Commencement of Operations is February, 16 Series S Series E Commencement of Operations is December 3, 13 Commencement of Operations is February, 16 Series S8 Series E2T Commencement of Operations is December 3, 13 Commencement of Operations is January 6, 17 Series E1 Series E Commencement of Operations is February, 16 Commencement of Operations is January 26, 17 18

21 Series E4 Series P2T Commencement of Operations is July 14, 17 Commencement of Operations is September 16, 16 Series P1 Series P Commencement of Operations is December 4, Commencement of Operations is December 4, Series P1T Series P3T Commencement of Operations is December 4, Commencement of Operations is September 16, 16 Series P2 Series P Commencement of Operations is December 4, Commencement of Operations is December 4, 19

22 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Past Performance continued Series P4T Commencement of Operations is April, 18 Series P Commencement of Operations is December 4,

23 Fidelity Global Concentrated Equity Class of the Fidelity Capital Structure Corp. Summary of Investment Portfolio as at May 31, 18 Sector Mix % of Fund s Net Assets as at /31/18 % of Fund s Net Assets as at 11/3/17 Consumer Discretionary Industrials Health Care Information Technology Financials Energy 3.. Telecommunication Services Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) (.4) (2.8) Geographic Mix % of Fund s Net Assets as at /31/18 % of Fund s Net Assets as at 11/3/17 United States of America United Kingdom Japan Germany Cayman Islands Switzerland France 4..3 Canada Bermuda Sweden Denmark 2.2. Netherlands India 1.8. Curacao 1.7. Taiwan Isle of Man Australia Bailiwick of Jersey Luxembourg Korea (South) Brazil Mexico Others (Individually Less Than 1%) Cash and Cash Equivalents Net Other Assets (Liabilities) (.4) (2.8) Top Issuers % of Fund s Net Assets 1. Cash and Cash Equivalents Vipshop Holdings Ltd Jacobs Engineering Group, Inc Avanza Bank Holding AB 2.3. Meggitt PLC ServiceMaster Global Hldgs, Inc Qualcomm, Inc Compass Group PLC Colfax Corp Julius Baer Group Ltd Gildan Activewear, Inc Brenntag AG Safran SA Allison Transmission Holdings, Inc Koninklijke Philips Electronics NV Bunzl PLC AmerisourceBergen Corp The Weir Group PLC Bridgestone Corp Publicis Groupe SA Hologic, Inc Reliance Industries Ltd Advance Auto Parts, Inc Schlumberger Ltd SCSK Corp. 1.7 Total Fund Net Assets $183,47,.9 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 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 MG 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 MG 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-GO-CS-MRFPS-718