Fidelity U.S. Focused Stock Fund

Transcription

1 Fidelity U.S. Focused Stock Fund Semi-Annual Management Report of Fund Performance December 31,

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 December 31, Fidelity U.S. Focused Stock Fund 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 U.S. Focused Stock Fund (Fund), Series B, returned 12.7% for the six-month period ended December 31,, after fees and expenses. The net returns of the other series of this Fund are similar to those of Series B, except for differences attributable to expense structures. U.S. equities, as represented by the S&P 5 Index, returned 7.5% (in Canadian dollar terms) for the six-month period ended December 31,. Market overview: U.S. markets registered strong performance, driven by positive economic data, strengthening corporate earnings, solid labour market conditions and the passing of the U.S. government s tax reform bill. During the first half of the review period, geopolitical tensions in the Korean peninsula as well as the implications of Hurricanes Harvey and Irma weighed on markets; however, investor sentiment remained strong and markets moved higher. During the review period, the U.S. Federal Reserve (Fed) increased the target Fed funds rate by a quarter of a percentage point against the backdrop of continued strength in the U.S. economy. Factors affecting performance: The Fund outperformed its benchmark, the S&P 5 Index, primarily due to its exposure to certain stocks in the information technology sector, where investments in U.S.-based electronic payment solutions firms PayPal and Square and in U.S.-based software and services firm Adobe Systems contributed to relative returns. In addition, exposure to certain stocks in the financials sector also contributed to relative returns. In the sector, investments in U.S.-based trading and investment solutions firm CBOE Global Markets and U.S.-based retail brokerage firm Charles Schwab contributed to relative returns. Among other sectors, construction machinery and equipment company Caterpillar contributed to relative performance. In contrast, exposure to certain stocks in the health care sector detracted from relative returns. In the sector, investments in U.S.-based medical devices firm Boston Scientific, U.S.-based biopharmaceutical firm Intercept Pharmaceuticals and U.S.-based health care insurance and benefits company Humana detracted from relative returns. At the end of the review period, the Fund had no exposure to Intercept Pharmaceuticals. Among other sectors, an investment in cigarette company Philip Morris International detracted from relative performance. Portfolio changes: During the review period, the Fund s exposures to the financials and energy sectors were increased. In the financials sector, a position was initiated in U.S.-based retail brokerage firm Charles Schwab, and exposure was increased to U.S.-based Bank of America; the portfolio manager believed these companies could benefit from further deregulation and rising interest rates. In the energy sector, positions were initiated in U.S.-based integrated oil and gas firm Chevron and U.S.-based oil and gas refining and marketing firm Phillips 66, owing to their relatively attractive valuations. In contrast, exposures to the health care and consumer discretionary sectors were decreased. In the health care sector, a position in U.S.- based biotechnology firm Amgen was exited, and exposure to U.S.-based medical devices firm Boston Scientific was reduced after more attractive opportunities were found elsewhere. In the consumer discretionary sector, exposure was reduced to Germany-based sports gear firm Adidas, and a position in U.S.-based media firm Charter Communications was exited after the portfolio manager found relatively more attractive opportunities elsewhere. Recent Developments Portfolio manager Stephen DuFour manages a concentrated portfolio by investing in companies he believes will, over time, offer growth at a reasonable price. He seeks investments trading at attractive valuations that will grow earnings materially faster than the market. Sector and industry positioning are a result of his best fundamental ideas, rather than top-down sector calls. Mr. DuFour has a positive outlook for the U.S., and he expects 218 to be a strong year for corporate earnings growth. He believes the U.S. economy continues to be supported by steady job creation, low commodity prices and low interest rates, as well as robust consumer spending. Mr. DuFour continues to look for stable, high-quality companies at attractive valuations. He believes it is becoming increasingly important to use a thorough, fundamental, bottom-up stock selection process. 1

4 Fidelity U.S. Focused Stock Fund Management Discussion of Fund Performance continued At the end of the review period, the Fund had its largest absolute exposure to the information technology sector, followed by the financials sector. The Fund diverged the most from the benchmark sector weightings by having more exposure to the information technology sector and a lower exposure to the health care sector. Related Party Transactions Manager and Portfolio Adviser The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader group 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 FMR Co., Inc., 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 $1,648, for the period ended December 31,. 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 $181, for the period ended December 31,. Brokerage Commissions The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Investments, including National Financial Services LLC, 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 $5, for the period ended December 31,. 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 U.S. Focused Stock Fund Series A December 31, Periods ended June 3, 216 Net assets, beginning of period B $ $ $ $ $ 2.98 $ Total revenue Total expenses (excluding distributions) (.52) (.96) (.91) (.82) (.66) (.49) Realized gains (losses) Unrealized gains (losses) (1.99) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 4.27 $ $ $ $ $ 2.97 Net asset value (s) D $ 31,164 $ 3,764 $ 39,295 $ 53,622 $ 52,789 $ 26,992 Securities outstanding D 774, ,185 1,235,795 1,687,439 1,98,748 1,33,698 Management expense ratio E,F 2.51% 2.55% 2.56% 2.59% 2.61% 2.59% Management expense ratio before waivers or absorptions E,F 2.58% 2.58% 2.6% 2.62% 2.61% 2.59% Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $ $ $ $ $ $ Fidelity U.S. Focused Stock Fund Series B December 31, Periods ended June 3, 216 Net assets, beginning of period B $ $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.49) (.9) (.85) (.77) (.6) (.44) Realized gains (losses) Unrealized gains (losses) (2.12) Total increase (decrease) from operations B (.6) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $ $ $ $ Net asset value (s) D $ 8,122 $,39 $ 112,172 $ 138,826 $ 128,235 $ 83,33 Securities outstanding D 2,67,91 2,724,756 3,437,338 4,268,929 4,73,42 3,947,344 Management expense ratio E,F 2.29% 2.34% 2.34% 2.36% 2.37% 2.35% Management expense ratio before waivers or absorptions E,F 2.35% 2.36% 2.37% 2.37% 2.37% 2.35% Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $ $ $ $ $ $

6 Financial Highlights continued Fidelity U.S. Focused Stock Fund Series F December 31, Periods ended June 3, 216 Net assets, beginning of period B $ $ $ 38.4 $ $ $ 2.12 Total revenue Total expenses (excluding distributions) (.32) (.6) (.57) (.49) (.36) (.28) Realized gains (losses) Unrealized gains (losses) (2.35) 4.16 (.78) 2.47 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ 5.41 $ $ $ 38.4 $ $ Net asset value (s) D $ 13,989 $ 13,23 $ 13,943 $ 18,63 $ 16,884 $ 4,917 Securities outstanding D 277,59 292, ,935 47, ,749 21,974 Management expense ratio E,F 1.16% 1.18% 1.18% 1.19% 1.21% 1.22% Management expense ratio before waivers or absorptions E,F 1.19% 1.2% 1.21% 1.2% 1.21% 1.22% Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $ 5.41 $ $ $ $ $ Fidelity U.S. Focused Stock Fund Series O December 31, Periods ended June 3, 216 Net assets, beginning of period B $ 53.6 $ $ $ $ $ Total revenue Total expenses (excluding distributions) (.5) (.13) (.12) (.) Realized gains (losses) Unrealized gains (losses) (2.45) Total increase (decrease) from operations B From net investment income (excluding dividends) (.43) (.22) (.53) (.14) From dividends (.3) (.4) From capital gains Return of capital Total distributions B,C (.46) (.26) (.53) (.14) Net assets, end of period B $ 6.64 $ 53.6 $ $ $ $ Net asset value (s) D $ 499,23 $ 516,273 $ 552,663 $ 526,568 $ 37,53 $ 1,453 Securities outstanding D 8,228,333 9,6,879 11,83,187 11,454,28 9,863,938 3,568,58 Management expense ratio % % % % % % Management expense ratio before waivers or absorptions % % % % % % Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $ $ $ $ $ $

7 Fidelity U.S. Focused Stock Fund Series T5 December 31, Periods ended June 3, 216 Net assets, beginning of period B $ $ 16.6 $ $ $ $.89 Total revenue Total expenses (excluding distributions) (.26) (.5) (.49) (.44) (.38) (.31) Realized gains (losses) Unrealized gains (losses) (.84) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.37) (.74) (.74) (.74) (.65) (.56) Total distributions B,C (.37) (.74) (.74) (.74) (.65) (.56) Net assets, end of period B $ $ $ 16.6 $ $ $ Net asset value (s) D $ 581 $ 625 $ 33 $ 344 $ 712 $ 216 Securities outstanding D 29,429 34,94 19,99 19,851 46,96 17,458 Management expense ratio E,F 2.54% 2.59% 2.59% 2.61% 2.66% 2.63% Management expense ratio before waivers or absorptions E,F 2.61% 2.62% 2.64% 2.66% 2.66% 2.63% Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $ $ $ $ $ $ Fidelity U.S. Focused Stock Fund Series T8 December 31, Periods ended June 3, 216 Net assets, beginning of period B $ 9.6 $ 9.12 $ 9.76 $ 8.77 $ 7.46 $ 6.77 Total revenue Total expenses (excluding distributions) (.14) (.27) (.27) (.26) (.23) (.18) Realized gains (losses) Unrealized gains (losses).71.3 (.55) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.32) (.65) (.65) (.65) (.65) (.65) Total distributions B,C (.32) (.65) (.65) (.65) (.65) (.65) Net assets, end of period B $.46 $ 9.6 $ 9.12 $ 9.76 $ 8.77 $ 7.45 Net asset value (s) D $ 689 $ 572 $ 622 $ 597 $ 62 $ 28 Securities outstanding D 66, 59,699 68,348 61,43 7,876 38,7 Management expense ratio E,F 2.51% 2.56% 2.56% 2.59% 2.65% 2.63% Management expense ratio before waivers or absorptions E,F 2.57% 2.59% 2.61% 2.64% 2.65% 2.63% Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $.4637 $ $ $ $ $

8 Financial Highlights continued Fidelity U.S. Focused Stock Fund Series S5 December 31, Periods ended June 3, 216 Net assets, beginning of period B $ $ 17.2 $ $ $ $ 11.6 Total revenue Total expenses (excluding distributions) (.25) (.47) (.47) (.44) (.37) (.29) Realized gains (losses) Unrealized gains (losses) (1.6) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.38) (.76) (.76) (.76) (.66) (.56) Total distributions B,C (.38) (.76) (.76) (.76) (.66) (.56) Net assets, end of period B $ 2.34 $ $ 17.2 $ $ $ Net asset value (s) D $ 429 $ 417 $ 32 $ 477 $ 439 $ 8 Securities outstanding D 21,163 22,721 18,876 26,996 28,381 8,584 Management expense ratio E,F 2.34% 2.37% 2.38% 2.41% 2.45% 2.45% Management expense ratio before waivers or absorptions E,F 2.4% 2.4% 2.41% 2.43% 2.45% 2.45% Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $ $ $ $ $ $ Fidelity U.S. Focused Stock Fund Series S8 December 31, Periods ended June 3, 216 Net assets, beginning of period B $.2 $ 9.65 $.27 $ 9.19 $ 7.78 $ 7.3 Total revenue Total expenses (excluding distributions) (.13) (.26) (.26) (.25) (.22) (.17) Realized gains (losses) Unrealized gains (losses) (.61) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.33) (.66) (.66) (.66) (.66) (.66) Total distributions B,C (.33) (.66) (.66) (.66) (.66) (.66) Net assets, end of period B $ $.2 $ 9.65 $.27 $ 9.19 $ 7.78 Net asset value (s) D $ 1,137 $ 981 $ 814 $ 873 $ 872 $ 537 Securities outstanding D 2,371 96,527 84,692 85,229 95,64 69,828 Management expense ratio E,F 2.31% 2.35% 2.34% 2.37% 2.41% 2.37% Management expense ratio before waivers or absorptions E,F 2.37% 2.37% 2.38% 2.4% 2.41% 2.37% Trading expense ratio G.6%.9%.%.%.11%.18% Portfolio turnover rate H 48.6% % % 21.66% % 245.% Net asset value per security, end of period $ $.1994 $ $.2711 $ $

9 Fidelity U.S. Focused Stock Fund Series E1 December 31, Periods ended June 3, 216 I Net assets, beginning of period B $ $.52 $. Total revenue Total expenses (excluding distributions) (.15) (.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 Return of capital Total distributions B,C Net assets, end of period B $ $ $.52 Net asset value (s) D $ 22,34 $ 19,91 $ 9,24 Securities outstanding D 1,67,195 1,65, ,95 Management expense ratio E,J 2.21% 2.25% 2.27% Management expense ratio before waivers or absorptions E,J 2.27% 2.28% 2.29% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $ $.5165 Fidelity U.S. Focused Stock Fund Series E1T5 December 31, Periods ended June 3, 216 I Net assets, beginning of period B $ $ 2.64 $ 2. Total revenue Total expenses (excluding distributions) (.29) (.56) (.21) Realized gains (losses) Unrealized gains (losses) 1.61 (.37).39 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.46) (.92) (.38) Total distributions B,C (.46) (.92) (.38) Net assets, end of period B $ 24.7 $ $ 2.64 Net asset value (s) D $ 183 $ 195 $ 5 Securities outstanding D 7,44 8, Management expense ratio E,J 2.24% 2.29% 2.32% Management expense ratio before waivers or absorptions E,J 2.31% 2.31% 2.32% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $ $

10 Financial Highlights continued Fidelity U.S. Focused Stock Fund Series E2 December 31, Periods ended June 3, 216 I Net assets, beginning of period B $ $.52 $. Total revenue Total expenses (excluding distributions) (.15) (.29) (.) Realized gains (losses) Unrealized gains (losses).9 (.35).43 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $.52 Net asset value (s) D $ 5,78 $ 4,949 $ 798 Securities outstanding D 425, ,13 75,861 Management expense ratio E,J 2.17% 2.21% 2.2% Management expense ratio before waivers or absorptions E,J 2.23% 2.23% 2.23% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $ $.5211 Fidelity U.S. Focused Stock Fund Series E2T5 December 31, Periods ended June 3, K Net assets, beginning of period B $ 2.65 $ 2. Total revenue Total expenses (excluding distributions) (.23) (.2) Realized gains (losses) Unrealized gains (losses) 2.47 Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital (.5) (.5) Total distributions B,C (.5) (.5) Net assets, end of period B $ $ 2.65 Net asset value (s) D $ 1 $ 1 Securities outstanding D Management expense ratio E,L 2.% 1.97% Management expense ratio before waivers or absorptions E,L 2.18% 1.99% Trading expense ratio G.6%.9% Portfolio turnover rate H 48.6% % Net asset value per security, end of period $ $

11 Fidelity U.S. Focused Stock Fund Series E3 December 31, Periods ended June 3, 216 I Net assets, beginning of period B $ $.53 $. Total revenue Total expenses (excluding distributions) (.14) (.25) (.9) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $.53 Net asset value (s) D $ 211 $ 142 $ 1,4 Securities outstanding D 15,674 11, ,941 Management expense ratio E,J 2.% 2.3% 2.3% Management expense ratio before waivers or absorptions E,J 2.5% 2.5% 2.5% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $ $.5275 Fidelity U.S. Focused Stock Fund Series E4 December 31, Periods ended June 3, 216 I Net assets, beginning of period B $ $.53 $. Total revenue Total expenses (excluding distributions) (.13) (.26) (.9) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operations B From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ $.53 Net asset value (s) D $ 1,464 $ 1,297 $ 389 Securities outstanding D 8,714 8,714 36,913 Management expense ratio E,J 1.92% 1.95% 1.96% Management expense ratio before waivers or absorptions E,J 1.97% 1.98% 1.99% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $ $

12 Financial Highlights continued Fidelity U.S. Focused Stock Fund Series P1 December 31, Periods ended June 3, 216 M Net assets, beginning of period B $.98 $ 9.61 $. Total revenue Total expenses (excluding distributions) (.8) (.14) (.7) Realized gains (losses) Unrealized gains (losses) (.24) Total increase (decrease) from operations B (.19) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $.98 $ 9.61 Net asset value (s) D $ 4,57 $ 3,351 $ 1,938 Securities outstanding D 367,53 35,114 21,658 Management expense ratio E,N 1.% 1.11% 1.13% Management expense ratio before waivers or absorptions E,N 1.13% 1.13% 1.13% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $.9834 $ 9.61 Fidelity U.S. Focused Stock Fund Series P2 December 31, Periods ended June 3, 216 M Net assets, beginning of period B $.99 $ 9.62 $. Total revenue Total expenses (excluding distributions) (.7) (.14) (.7) Realized gains (losses) (.3) Unrealized gains (losses).82.4 (.36) Total increase (decrease) from operations B (.39) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $.99 $ 9.62 Net asset value (s) D $ 2,551 $ 2,93 $ 394 Securities outstanding D 24,735 19,433 4,989 Management expense ratio E,N 1.2% 1.4% 1.3% Management expense ratio before waivers or absorptions E,N % % 1.4% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $.9911 $

13 Fidelity U.S. Focused Stock Fund Series P3 December 31, Periods ended June 3, 216 M Net assets, beginning of period B $ 11.2 $ 9.63 $. Total revenue Total expenses (excluding distributions) (.7) (.13) (.6) Realized gains (losses) Unrealized gains (losses) (.38) Total increase (decrease) from operations B (.37) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ $ 11.2 $ 9.63 Net asset value (s) D $ 185 $ 55 $ 1 Securities outstanding D 14,769 49,923 Management expense ratio E,N.95%.97%.87% Management expense ratio before waivers or absorptions E,N.98%.98%.87% Trading expense ratio G.6%.9%.% Portfolio turnover rate H 48.6% % % Net asset value per security, end of period $ $ $ Fidelity U.S. Focused Stock Fund Series P4 December 31, O Net assets, beginning of period B $. Total revenue.5 Total expenses (excluding distributions) (.5) Realized gains (losses).58 Unrealized gains (losses).64 Total increase (decrease) from operations B 1.22 From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributions B,C Net assets, end of period B $ Net asset value (s) D $ 51 Securities outstanding D 44,621 Management expense ratio E,P.83% Management expense ratio before waivers or absorptions E,P.86% Trading expense ratio G.6% Portfolio turnover rate H 48.6% Net asset value per security, end of period $

14 Financial Highlights continued Financial Highlights Footnotes A B C D E F G H This information is derived from the Fund s audited annual and/or unaudited interim financial statements. Periods beginning on or after January 1, follow International Financial Reporting Standards (IFRS) and periods prior to January 1, 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, 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, may not foot due to this rounding change. 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. 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. This information is provided as at period end of the year shown. 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. Effective November 1,, 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. 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. 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 For the period February 5, 216 (commencement of sale of securities) to June 3, 216. J Effective February 9, 216, 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. K For the period January 26, (commencement of sale of securities) to June 3,. L Effective January 3,, 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 December 4, (commencement of sale of securities) to June 3, 216. N 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. O For the period July 14, (commencement of sale of securities) to December 31,. P Effective July 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. 12

15 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.% 3.28% 69.72% Series B 1.85% 54.5% 45.95% Series F.85%.% Series T5 2.% 4.5% 59.95% Series T8 2.% 3.95% 69.5% 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 P1.825%.% Series P2.8%.% Series P3.775%.% Series P4.725%.% 13

16 Fidelity U.S. Focused Stock 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. For each Series in the Year-by-Year Returns table below, the most recent returns stated are for the current six month period. Series A Series O Series B Series T Series F Commencement of Operations is November 6, Series T

17 Series S5 Series E Commencement of Operations is November 6, 26 Series S8 Commencement of Operations is February 5, 216 Series E2T Series E1 Commencement of Operations is January 26, Series E Commencement of Operations is February 5, Series E1T5 Commencement of Operations is February 5, Series E Commencement of Operations is February 5, Commencement of Operations is February 5,

18 Fidelity U.S. Focused Stock Fund Past Performance continued Series P1 Series P Commencement of Operations is December 4, Commencement of Operations is July 14, Series P Commencement of Operations is December 4, Series P Commencement of Operations is December 4, 16

19 Fidelity U.S. Focused Stock Fund Summary of Investment Portfolio as at December 31, Sector Mix % of Fund s Net Assets as at 12/31/17 % of Fund s Net Assets as at 6/3/17 Information Technology Financials Health Care Consumer Discretionary Consumer Staples Industrials Energy Materials Real Estate 1.2. Cash and Cash Equivalents.5.4 Net Other Assets (Liabilities) (.1) (.2) Top Issuers % of Fund s Net Assets 1. Caterpillar, Inc S&P Global, Inc Intuit, Inc Microsoft Corp Adobe Systems, Inc PayPal Holdings, Inc Alphabet, Inc Wal-Mart Stores, Inc Square, Inc Charles Schwab Corp Bank of America Corp UnitedHealth Group, Inc Humana, Inc Chevron Corp CBOE Holdings, Inc FMC Corp Amazon.com, Inc MSCI, Inc Marriott International, Inc Philip Morris International, Inc Activision Blizzard, Inc Phillips 66 Co Facebook, Inc MasterCard, Inc Alibaba Group Holding Ltd Total Fund Net Assets $692,87, 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 17

20 Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 3 Toronto, Ontario M5G 2N7 Custodian State Street Trust Company of Canada Toronto, Ontario Portfolio Adviser Fidelity Investments Canada ULC 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-GA-MRFPS-218