Fidelity American Equity Fund

Fidelity American Equity Fund Annual Report June 30, 2017

Fidelity American Equity Fund Schedule of Investments June 30, 2017 Showing Percentage of Net Assets Attributable to Securityholders (Net Assets) Equities 85.5% Shares / Units Cost (000s) Market Value (000s) Ireland 2.0% INFORMATION TECHNOLOGY 2.0% Accenture PLC Class A 168,200 $ 27,963 $ 26,977 United States of America 83.5% CONSUMER DISCRETIONARY 21.0% AutoZone, Inc. 45,900 36,908 33,956 Charter Communications, Inc. Class A 82,400 33,674 35,995 Hanesbrands, Inc. 3,243,340 111,746 97,409 LKQ Corp. 1,359,000 45,729 58,069 Service Corp. International 802,370 29,397 34,805 Wyndham Worldwide Corp. 189,900 18,471 24,727 TOTAL CONSUMER DISCRETIONARY 275,925 284,961 CONSUMER STAPLES 3.0% CVS Health Corp. 135,350 16,118 14,122 Sysco Corp. 398,200 28,238 25,990 TOTAL CONSUMER STAPLES 44,356 40,112 FINANCIALS 10.0% Berkshire Hathaway, Inc. Class B 249,280 50,739 54,752 BlackRock, Inc. Class A 50,500 26,972 27,663 Interactive Brokers Group, Inc. 300,000 14,463 14,558 Willis Group Holdings PLC 202,700 33,108 38,236 TOTAL FINANCIALS 125,282 135,209 HEALTH CARE 23.4% Anthem, Inc. 89,800 19,103 21,908 Cardinal Health, Inc. 337,570 34,947 34,110 Charles River Laboratories International, Inc. 521,101 50,908 68,354 Cigna Corp. 164,700 24,814 35,752 Danaher Corp. 289,900 25,114 31,726 DaVita HealthCare Partners, Inc. 427,140 38,840 35,872 HCA Holdings, Inc. 374,200 37,001 42,315 Humana, Inc. 66,600 20,991 20,782 The Cooper Companies, Inc. 86,300 16,060 26,794 TOTAL HEALTH CARE 267,778 317,613 INDUSTRIALS 5.1% Dun & Bradstreet Corp. 119,810 16,236 16,803 Fortive Corp. 131,950 7,321 10,840 Generac Holdings, Inc. 207,300 9,795 9,713 Snap On, Inc. 152,140 25,921 31,173 TOTAL INDUSTRIALS 59,273 68,529 INFORMATION TECHNOLOGY 11.6% Alphabet, Inc. Class A 34,990 26,741 42,184 CDW Corp. 472,600 25,527 38,323 Global Payments, Inc. 172,200 19,014 20,169 Intel Corp. 358,100 17,104 15,668 Oracle Corp. 301,750 15,891 19,620 Total System Services, Inc. 284,500 19,496 21,491 TOTAL INFORMATION TECHNOLOGY 123,773 157,455 Shares / Units Cost (000s) Market Value (000s) UTILITIES 9.4% CMS Energy Corp. 1,307,750 $ 54,888 $ 78,435 Xcel Energy, Inc. 815,550 35,915 48,523 TOTAL UTILITIES 90,803 126,958 TOTAL UNITED STATES OF AMERICA 987,190 1,130,837 TOTAL EQUITIES 1,015,153 1,157,814 TOTAL INVESTMENT PORTFOLIO 85.5% $1,015,153 1,157,814 NET OTHER ASSETS (LIABILITIES) 14.5% 195,950 NET ASSETS 100% $ 1,353,764 Futures Contracts Purchased Expiration Date Underlying Face Amount at Value (000s) Unrealized Appreciation/ (Depreciation) (000s) Equity Index Contracts 173 CME E mini S&P 500 Index Contracts (United States) Sept. 2017 $ 27,156 $ (124) The face value of futures purchased as a percentage of Net Assets is 2.0% Presentation Notes Cost amount includes broker commissions and other trading expenses, if any. See accompanying notes which are an integral part of the financial statements. Annual Reportport 2

Investment Valuation The following is a summary of the inputs used, as of June 30, 2017 and June 30, 2016, involving the Fund s assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. Valuation Inputs at June 30, 2017: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $ 284,961 $ 284,961 $ $ Consumer Staples 40,112 40,112 Financials 135,209 135,209 Health Care 317,613 317,613 Industrials 68,529 68,529 Information Technology 184,432 184,432 Utilities 126,958 126,958 Total Investments in Securities: $1,157,814 $1,157,814 $ $ Derivative Instruments: Liabilities Futures Contracts $ (124) $ (124) $ $ Total Liabilities $ (124) $ (124) $ $ Total Derivative Instruments: $ (124) $ (124) $ $ Valuation Inputs at June 30, 2016: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $ 369,504 $ 369,504 $ $ Consumer Staples 185,846 185,846 Financials 153,401 153,401 Health Care 519,152 519,152 Industrials 126,861 126,861 Information Technology 252,896 252,896 Utilities 107,758 107,758 Total Investments in Securities: $1,715,418 $1,715,418 $ $ Derivative Instruments: Liabilities Futures Contracts $ (169) $ (169) $ $ Total Liabilities $ (169) $ (169) $ $ Total Derivative Instruments: $ (169) $ (169) $ $ See accompanying notes which are an integral part of the financial statements. 3 Annual Report

Financial Statements Statements of Financial Position Amounts in thousands of Canadian Dollars (except per security amounts) As at June 30, 2017 June 30, 2016 Current assets (Note 3) Investments at fair value through profit or loss $ 1,157,814 $ 1,715,418 Cash 207,858 136,470 Cash collateral 987 733 Receivable for investments sold 4,479 Receivable for daily variation margin for derivative instruments 10 204 Other receivables 46 13 Accrued interest and dividends receivable 847 1,583 Subscriptions receivable 1,392 2,952 1,373,433 1,857,373 Current liabilities (Note 3) Payable for investments purchased 12,948 Redemptions payable 5,375 4,356 Distributions payable (Note 5) 61 67 Management and advisory fees payable (Note 4) 931 1,029 Other payables to affiliates (Note 4) 143 168 Other payables and accrued expenses (Notes 4 and 5) 211 346 19,669 5,966 Net assets attributable to securityholders (Notes 3 and 6) $ 1,353,764 $ 1,851,407 Net assets attributable to securityholders per Series and per security (Note 6) Series A: ($159,304 and $195,446, respectively) $ 19.89 $ 19.33 Series B: ($233,705 and $304,048, respectively) $ 20.35 $ 19.73 Series F: ($200,628 and $247,625, respectively) $ 22.75 $ 21.80 Series F5: ($1,429 and $3,766, respectively) $ 26.63 $ 26.81 Series F8: ($994 and $1,046, respectively) $ 23.99 $ 25.15 Series O: ($641,394 and $1,034,118, respectively) $ 22.72 $ 21.68 Series T5: ($1,920 and $2,453, respectively) $ 25.44 $ 25.99 Series T8: ($3,395 and $4,014, respectively) $ 23.00 $ 24.46 Series S5: ($1,812 and $2,764, respectively) $ 25.70 $ 26.19 Series S8: ($2,558 and $3,435, respectively) $ 23.15 $ 24.56 Series E1: ($40,319 and $32,476, respectively) $ 10.32 $ 10.00 Series E1T5: ($885 and $148, respectively) $ 19.22 $ 19.58 Series E2: ($9,055 and $5,538, respectively) $ 10.33 $ 10.00 Series E2T5: ($167 and $-, respectively) $ 19.58 $ Series E3: ($614 and $911, respectively) $ 10.33 $ 10.00 Series E4: ($768 and $1,071, respectively) $ 10.36 $ 10.01 Series E5: ($1 and $52, respectively) $ 10.56 $ 10.20 Series P1: ($41,939 and $11,135, respectively) $ 10.17 $ 9.74 Series P1T5: ($664 and $155, respectively) $ 18.81 $ 18.93 Series P2: ($7,570 and $974, respectively) $ 10.18 $ 9.75 Series P2T5: ($229 and $-, respectively) $ 19.84 $ Series P3: ($2,896 and $230, respectively) $ 10.20 $ 9.75 Series P3T5: ($1,482 and $-, respectively) $ 19.91 $ Series P4: ($35 and $1, respectively) $ 10.21 $ 9.76 Series P5: ($1 and $1, respectively) $ 10.21 $ 9.76 See accompanying notes which are an integral part of the financial statements. Annual Reportport 4

Statements of Comprehensive Income Amounts in thousands of Canadian Dollars (except per security amounts) For the periods ended June 30, (Note 1) 2017 2016 Investment income (Note 3) Interest $ 37 $ 231 Dividends 17,832 21,327 Net gain (loss) on investments Net realized gain (loss) on investments 92,267 39,707 Change in net unrealized appreciation (depreciation) on investments (11,912) 28,955 80,355 68,662 Net gain (loss) on foreign currencies Net realized gain (loss) on foreign currency transactions 4,489 (6,874) Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies (4,844) (612) (355) (7,486) Net gain (loss) on derivatives Net realized gain (loss) on derivatives 301 (3,522) Change in net unrealized appreciation (depreciation) on derivatives 45 467 346 (3,055) Total investment income (loss) 98,215 79,679 Operating expenses (Note 4) Management and advisory fees 12,070 11,231 Administration fees 1,903 1,866 Independent Review Committee fees 1 1 Commissions and other portfolio costs 465 449 Foreign taxes withheld (Note 5) 2,506 3,257 Sales tax 1,478 1,376 Total operating expenses 18,423 18,180 Expenses waived (Note 4) (170) (218) Net operating expenses 18,253 17,962 Net increase (decrease) in net assets attributable to securityholders from operations $ 79,962 $ 61,717 Increase (decrease) in net assets attributable to securityholders from operations per Series (Note 3) Series A $ 5,821 $ 4,816 Series B $ 9,282 $ 8,049 Series F $ 9,638 $ 5,740 Series F5 $ 79 $ 161 Series F8 $ 51 $ 21 Series O $ 50,855 $ 43,065 Series T5 $ 77 $ 85 Series T8 $ 121 $ 138 Series S5 $ 84 $ 95 Series S8 $ 96 $ 83 Series E1 $ 1,374 $ (176) Series E1T5 $ 6 $ (2) Series E2 $ 237 $ (2) Series E2T5 $ (4) $ Series E3 $ 58 $ (3) Series E4 $ 56 $ (5) Series E5 $ (15) $ 1 Series P1 $ 1,655 $ (296) Series P1T5 $ 91 $ (20) Series P2 $ 339 $ (32) Series P2T5 $ 6 $ See accompanying notes which are an integral part of the financial statements. 5 Annual Report

Financial Statements continued Statements of Comprehensive Income continued Amounts in thousands of Canadian Dollars (except per security amounts) For the periods ended June 30, (Note 1) 2017 2016 Series P3 $ 10 $ (1) Series P3T5 $ 33 $ Series P4 $ 12 $ Series P5 $ $ Increase (decrease) in net assets attributable to securityholders from operations per Series per security (Notes 3 and 6) Series A $.63 $.52 Series B $.69 $.54 Series F $.97 $.66 Series F5 $.89 $ 1.03 Series F8 $ 1.17 $.55 Series O $ 1.29 $ 1.02 Series T5 $.90 $.96 Series T8 $.75 $.78 Series S5 $.90 $.84 Series S8 $.79 $.66 Series E1 $.34 $ (.06) Series E1T5 $.32 $ (.23) Series E2 $.30 $ Series E2T5 $ (2.27) $ Series E3 $.54 $ (.04) Series E4 $.80 $ (.07) Series E5 $ (2.23) $.20 Series P1 $.54 $ (.30) Series P1T5 $ 1.85 $ (.89) Series P2 $.58 $ (.29) Series P2T5 $.24 $ Series P3 $.07 $ (.10) Series P3T5 $.44 $ Series P4 $ 1.16 $ (.24) Series P5 $.45 $ (.24) See accompanying notes which are an integral part of the financial statements. Annual Reportport 6

Statements of Changes in Net Assets Attributable to Securityholders Amounts in thousands of Canadian Dollars For the period ended June 30, 2017 (Note 1) Total Series A Series B Series F Series F5 Series F8 Net assets attributable to securityholders, beginning of period $ 1,851,407 $ 195,446 $ 304,048 $ 247,625 $ 3,766 $ 1,046 Increase (decrease) in net assets attributable to securityholders from operations 79,962 5,821 9,282 9,638 79 51 Distributions to securityholders (Note 5) From net investment income (6,816) Management fee reduction (78) (7) (59) (12) Return of capital (1,176) (114) (96) (8,070) (7) (59) (12) (114) (96) Security transactions (Note 6) Proceeds from sale of securities 450,868 27,704 83,026 123,990 818 309 Reinvestment of distributions 7,278 7 58 12 31 41 Amounts paid upon redemption of securities (1,027,681) (69,667) (162,650) (180,625) (3,151) (357) (569,535) (41,956) (79,566) (56,623) (2,302) (7) Net assets attributable to securityholders, end of period $ 1,353,764 $ 159,304 $ 233,705 $ 200,628 $ 1,429 $ 994 For the period ended June 30, 2017 (Note 1) Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to securityholders, beginning of period $ 1,034,118 $ 2,453 $ 4,014 $ 2,764 $ 3,435 Increase (decrease) in net assets attributable to securityholders from operations 50,855 77 121 84 96 Distributions to securityholders (Note 5) From net investment income (6,816) Management fee reduction Return of capital (113) (348) (123) (266) (6,816) (113) (348) (123) (266) Security transactions (Note 6) Proceeds from sale of securities 88,600 537 933 542 995 Reinvestment of distributions 6,816 16 108 20 89 Amounts paid upon redemption of securities (532,179) (1,050) (1,433) (1,475) (1,791) (436,763) (497) (392) (913) (707) Net assets attributable to securityholders, end of period $ 641,394 $ 1,920 $ 3,395 $ 1,812 $ 2,558 For the period ended June 30, 2017 (Note 1) Series E1 Series E1T5 Series E2 Series E2T5 Series E3 Net assets attributable to securityholders, beginning of period $ 32,476 $ 148 $ 5,538 $ $ 911 Increase (decrease) in net assets attributable to securityholders from operations 1,374 6 237 (4) 58 Distributions to securityholders (Note 5) From net investment income Management fee reduction Return of capital (21) (2) (21) (2) Security transactions (Note 6) Proceeds from sale of securities 34,867 1,061 9,435 173 1,191 Reinvestment of distributions 7 1 Amounts paid upon redemption of securities (28,398) (316) (6,155) (1) (1,546) 6,469 752 3,280 173 (355) Net assets attributable to securityholders, end of period $ 40,319 $ 885 $ 9,055 $ 167 $ 614 See accompanying notes which are an integral part of the financial statements. 7 Annual Report

Financial Statements continued Statements of Changes in Net Assets Attributable to Securityholders continued For the period ended June 30, 2017 (Note 1) Series E4 Series E5 Series P1 Series P1T5 Series P2 Net assets attributable to securityholders, beginning of period $ 1,071 $ 52 $ 11,135 $ 155 $ 974 Increase (decrease) in net assets attributable to securityholders from operations 56 (15) 1,655 91 339 Distributions to securityholders (Note 5) From net investment income Management fee reduction Return of capital (48) (48) Security transactions (Note 6) Proceeds from sale of securities 1,044 639 51,479 2,722 12,791 Reinvestment of distributions 28 Amounts paid upon redemption of securities (1,403) (675) (22,330) (2,284) (6,534) (359) (36) 29,149 466 6,257 Net assets attributable to securityholders, end of period $ 768 $ 1 $ 41,939 $ 664 $ 7,570 For the period ended June 30, 2017 (Note 1) Series P2T5 Series P3 Series P3T5 Series P4 Series P5 Net assets attributable to securityholders, beginning of period $ $ 230 $ $ 1 $ 1 Increase (decrease) in net assets attributable to securityholders from operations 6 10 33 12 Distributions to securityholders (Note 5) From net investment income Management fee reduction Return of capital (7) (38) (7) (38) Security transactions (Note 6) Proceeds from sale of securities 1,966 3,966 1,589 491 Reinvestment of distributions 6 38 Amounts paid upon redemption of securities (1,742) (1,310) (140) (469) 230 2,656 1,487 22 Net assets attributable to securityholders, end of period $ 229 $ 2,896 $ 1,482 $ 35 $ 1 For the period ended June 30, 2016 (Note 1) Total Series A Series B Series F Series F5 Series F8 Net assets attributable to securityholders, beginning of period $ 1,193,677 $ 144,936 $ 237,167 $ 135,286 $ 2,281 $ 708 Increase (decrease) in net assets attributable to securityholders from operations 61,717 4,816 8,049 5,740 161 21 Distributions to securityholders (Note 5) Management fee reduction (132) (10) (59) (63) Return of capital (1,163) (214) (76) (1,295) (10) (59) (63) (214) (76) Security transactions (Note 6) Proceeds from sale of securities 1,256,734 95,408 221,982 249,179 5,308 761 Reinvestment of distributions 499 10 59 62 114 32 Amounts paid upon redemption of securities (659,925) (49,714) (163,150) (142,579) (3,884) (400) 597,308 45,704 58,891 106,662 1,538 393 Net assets attributable to securityholders, end of period $ 1,851,407 $ 195,446 $ 304,048 $ 247,625 $ 3,766 $ 1,046 See accompanying notes which are an integral part of the financial statements. Annual Reportport 8

Statements of Changes in Net Assets Attributable to Securityholders continued For the period ended June 30, 2016 (Note 1) Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to securityholders, beginning of period $ 663,886 $ 1,638 $ 2,894 $ 2,458 $ 2,423 Increase (decrease) in net assets attributable to securityholders from operations 43,065 85 138 95 83 Distributions to securityholders (Note 5) Management fee reduction Return of capital (119) (343) (150) (246) (119) (343) (150) (246) Security transactions (Note 6) Proceeds from sale of securities 598,711 2,055 3,779 1,955 1,871 Reinvestment of distributions 20 76 20 100 Amounts paid upon redemption of securities (271,544) (1,226) (2,530) (1,614) (796) 327,167 849 1,325 361 1,175 Net assets attributable to securityholders, end of period $ 1,034,118 $ 2,453 $ 4,014 $ 2,764 $ 3,435 For the period ended June 30, 2016 (Note 1) Series E1 Series E1T5 Series E2 Series E2T5 Series E3 Net assets attributable to securityholders, beginning of period $ $ $ $ $ Increase (decrease) in net assets attributable to securityholders from operations (176) (2) (2) (3) Distributions to securityholders (Note 5) Management fee reduction Return of capital (3) (3) Security transactions (Note 6) Proceeds from sale of securities 43,708 374 7,721 1,995 Reinvestment of distributions 2 Amounts paid upon redemption of securities (11,056) (223) (2,181) (1,081) 32,652 153 5,540 914 Net assets attributable to securityholders, end of period $ 32,476 $ 148 $ 5,538 $ $ 911 For the period ended June 30, 2016 (Note 1) Series E4 Series E5 Series P1 Series P1T5 Series P2 Net assets attributable to securityholders, beginning of period $ $ $ $ $ Increase (decrease) in net assets attributable to securityholders from operations (5) 1 (296) (20) (32) Distributions to securityholders (Note 5) Management fee reduction Return of capital (12) (12) Security transactions (Note 6) Proceeds from sale of securities 1,324 51 16,699 1,392 2,227 Reinvestment of distributions 4 Amounts paid upon redemption of securities (248) (5,268) (1,209) (1,221) 1,076 51 11,431 187 1,006 Net assets attributable to securityholders, end of period $ 1,071 $ 52 $ 11,135 $ 155 $ 974 See accompanying notes which are an integral part of the financial statements. 9 Annual Report

Financial Statements continued Statements of Changes in Net Assets Attributable to Securityholders continued For the period ended June 30, 2016 (Note 1) Series P2T5 Series P3 Series P3T5 Series P4 Series P5 Net assets attributable to securityholders, beginning of period $ $ $ $ $ Increase (decrease) in net assets attributable to securityholders from operations (1) Distributions to securityholders (Note 5) Management fee reduction Return of capital Security transactions (Note 6) Proceeds from sale of securities 232 1 1 Reinvestment of distributions Amounts paid upon redemption of securities (1) 231 1 1 Net assets attributable to securityholders, end of period $ $ 230 $ $ 1 $ 1 See accompanying notes which are an integral part of the financial statements. Annual Reportport 10

Statements of Cash Flows Amounts in thousands of Canadian Dollars For the periods ended June 30, (Note 1) 2017 2016 Cash flows from (used in) operating activities: Purchases of investments and derivatives $ (534,839) $ (972,023) Proceeds from sale and maturity of investments and derivatives 1,186,275 413,779 Cash (deposited) returned for collateral (255) 991 Cash receipts from dividend income 16,059 16,952 Cash receipts from interest income 40 282 Cash paid for operating expenses (16,003) (14,056) Net cash from (used in) operating activities 651,277 (554,075) Cash flows from (used in) financing activities: Distributions to securityholders net of reinvestments (798) (767) Proceeds from sales of securities 291,071 1,261,015 Amounts paid upon redemption of securities (865,304) (658,026) Net cash from (used in) financing activities (575,031) 602,222 Net change in cash 76,246 48,147 Foreign exchange gain (loss) on cash (4,858) (572) Cash, beginning of period 136,470 88,895 Cash, end of period $ 207,858 $ 136,470 See accompanying notes which are an integral part of the financial statements. 11 Annual Report

Notes to Financial Statements For the periods ended June 30, 2017 and 2016 (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) 1. Formation of the Fund Fidelity American Equity Fund (Fund) is an open end mutual fund trust formed under the laws of Ontario and governed by a Master Declaration of Trust dated October 8, 2002 (Inception Date), as amended thereafter from time to time. The Fund is authorized to issue an unlimited number of securities. Fidelity Investments Canada ULC (Fidelity), as manager and trustee of the Fund, is responsible for the day-to-day operations and provides all general management and administrative services. The investment advisor is responsible for the investment management of the Fund s portfolio. On December 31, 2015, the investment advisor changed from FIAM LLC (formerly Pyramis Global Advisors, LLC) to Fidelity. The registered office of the Fund is located at 483 Bay Street, Suite 300, Toronto, Ontario, M5G 2N7. Currently, Fidelity mutual funds are offered in the following Series: Series A, Series C, Series T5 and Series T8 securities are available to all investors in a deferred sales charge (DSC) option. Series A, Series T5 and Series T8 securities will be converted to lower management and advisory fee Series B, Series S5 and Series S8 securities, respectively, one year after completion of their redemption schedule. Series B, Series D, Series S5 and Series S8 securities are available to all investors in an initial sales charge (ISC) option. Series C and Series D securities are available to investors who have enrolled in the rebalancing service. Series F, Series F5 and Series F8 securities are usually only available to investors who have fee based accounts with dealers who have signed an eligibility agreement with Fidelity. Series E1, Series E1T5, Series E2, Series E2T5, Series E3, Series E3T5, Series E4, Series E4T5, Series E5 and Series E5T5 securities are available only to investors who initially hold Series B and/or Series S5 securities and then become eligible to hold certain Series E securities. Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P3T5, Series P4, Series P4T5, Series P5 and Series P5T5 securities are available only to investors who initially hold Series F and/or Series F5 securities and then become eligible to hold certain Series P securities. Series O securities are only available to selected investors who have been approved by Fidelity and have entered into a Series O Account Agreement with Fidelity. Series I, Series I5 and Series I8 securities are available to all investors who have entered into a Series I Agreement with Fidelity and are available to all investors in an initial sales charge (ISC) option. In addition, Series F5, Series F8, Series I5, Series I8, Series T5, Series T8, Series S5, Series S8, Series E1T5, Series E2T5, Series E3T5, Series E4T5, Series E5T5, Series P1T5, Series P2T5, Series P3T5, Series P4T5 and Series P5T5 securities distribute an amount comprised of net income and/or return of capital monthly, if available. The Fund commenced the offering of Series P1, Series P1T5, Series P2, Series P3, Series P4 and Series P5 securities on December 4, 2015, commenced the offering of Series E1, Series E1T5, Series E2, Series E3 and Series E4 securities on February 5, 2016, commenced the offering of Series E5 securities on May 13, 2016, commenced the offering of Series E2T5 securities on September 16, 2016, commenced the offering of Series P2T5 securities on January 6, 2017 and commenced the offering of Series P3T5 securities on January 26, 2017. The Fund meets the definition of an investment entity and its purpose is to provide investment management services to its securityholders by investing its net assets for capital growth and/or investment income and by measuring its investment performance on a fair value basis. Refer to the Financial Instruments Risk note below for the Fund s investment objective. After the close of business on February 19, 2016 (the Effective Date ), Fidelity American Opportunities Fund was merged into the Fidelity American Equity Fund on a tax-deferred basis. This means investors hold securities of Fidelity American Equity Fund instead of holding securities of Fidelity American Opportunities Fund. The value of the securities of Fidelity American Equity Fund received by investors in connection with this merger is equal to the net asset value of Fidelity American Opportunities Fund as at the Effective Date. Fidelity American Equity Fund issued 1,900 securities in exchange for $38,987 of net asset value of Fidelity American Opportunities Fund. 2. Basis of Preparation Statement of Compliance These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). The accounting policies set out below have been applied consistently unless otherwise stated. The financial statements were authorized for issue by Fidelity s board of directors on September 7, 2017. Functional and Presentation Currency These financial statements are presented in Canadian dollars, which is the Fund s functional currency. Comparative Figures - Per security comparative figures have been conformed to the current rounding presentation of two decimal places. 3. Summary of Significant Accounting Policies Basis of Measurement These financial statements have been prepared on the historical cost basis except for investments and derivatives which are measured at fair value in the Statements of Financial Position. Use of Estimates and Judgments Under IFRS, management is required to make certain estimates and judgments at the date of the financial statements. The principal financial statement components subject to significant accounting estimates and judgments include: Annual Reportport 12

Fair value measurements The Fund may invest in financial instruments that are not quoted in an active market. Where applicable, these instruments are categorized in Level 2 and Level 3 of the fair value hierarchy explained below. When current market prices or quotations are not readily available or reliable, valuation techniques will be applied in good faith and in accordance with procedures adopted by the manager. Factors used in determining fair value may include, but are not limited to, broker quotes from reputable pricing sources, market or security specific events, changes in interest rates and credit quality. Fair value models use observable data, to the extent practical; however, the manager is required from time to time to make estimates and assumptions that are based on the best information available at that particular time. Changes in these estimates could impact the fair values of the financial instruments, and the impact could be material. The aggregate fair value of investments measured by valuation techniques as at June 30, 2017 and June 30, 2016, is included at the end of the Fund s Schedule of Investments. Classification and measurement of financial instruments The Fund has made significant judgments when determining the classification and measurement of its financial instruments under IAS 39, Financial Instruments Recognition and Measurement (IAS 39). These judgments centre upon the determination that certain investments are held-for-trading and that the fair value measurement option can be applied to those that are not due to factors including performance evaluation and management of the Fund on a fair value basis. Presentation of financial instruments The Fund has made significant judgments when determining the classification of its redeemable securities as financial liabilities in accordance with IAS 32 Financial Instruments Presentation (IAS 32). These judgments centre upon the determination that the Fund s redeemable securities do not have identical features and their entitlements include a contractual obligation to distribute any net income and net realized capital gains at least annually in cash (at the request of the securityholder). Therefore, the ongoing redemption feature is not the securities only contractual obligation. Investment and Derivative Valuation Investments, excluding derivatives, are designated at their fair value through profit or loss in accordance with IAS 39 and are carried at their fair value. Derivatives are classified as held-for-trading in accordance with IAS 39 and are carried at fair value. The Fund categorizes the inputs to valuation techniques used to fair value its investments and derivatives into a disclosure hierarchy consisting of three levels as shown below: Level 1 quoted prices in active markets for identical investments Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.) Level 3 unobservable inputs (including the Fund s own assumptions based on the best information available) Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. There were no significant transfers between Level 1 and Level 2 during the periods. The aggregate value of investments by input level, as at June 30, 2017 and June 30, 2016, as well as a roll forward of Level 3 securities, where applicable, is included at the end of the Fund s Schedule of Investments. Valuation techniques used to value the Fund s investments and derivatives by major category are as follows: Equity securities, including restricted equity securities and Exchange-traded funds (ETFs) for which market quotations are readily available, are valued at the last sales price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event that the last sales price or official closing price is not readily available, or is outside the bid-ask spread, the point within the bid ask spread that is most representative of fair value based on specific facts and circumstances will be used. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted equity securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Cash Cash is comprised of cash on deposit and may include cash equivalents which are short-term debt instruments with terms to maturity of less than 90 days at acquisition which are held for the purpose of meeting short-term cash commitments. Foreign currencies are comprised of cash amounts denominated in currencies other than Canadian dollars, which are on deposit with the custodian to facilitate the settlement of foreign denominated security transactions. Cash is carried at amortized cost which approximates its fair value. The Fund did not hold any cash equivalents as at June 30, 2017 and June 30, 2016. Impairment of Financial Assets At each reporting date, the Fund assesses whether there is objective evidence that a financial asset carried at amortized cost is impaired. If such impairment exists, the Fund recognizes the difference between the amortized cost of the financial assets and the present value of the estimated future cash flows, discounted using the instrument s original effective interest rate as an impairment loss on the Statements of Comprehensive Income. Such impairment losses are reversed in subsequent periods in the Statements of Comprehensive Income if the conditions that lead to the initial recognition of the loss diminish or cease to exist. 13 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) Other Assets and Liabilities Other assets and liabilities may include amounts due to or from the custodian, affiliates or other counterparties for accrued income, investment transactions, Fund s security transactions, accrued expenses and other unsettled transactions at period end. These amounts are classified as loans and receivables or financial liabilities and are carried at amortized cost, which approximates fair value due to their short-term nature. Classification of redeemable securities issued by the Fund In accordance with IAS 32, the Fund s redeemable securities entitlements include a contractual obligation to distribute any net income and net realized capital gains at least annually in cash (at the request of the securityholder) and, therefore, the ongoing redemption feature is not the securities only contractual obligation. In addition, each series of redeemable securities are equally subordinated to each other, but have differing features as outlined in the notes below. Therefore, the Fund s redeemable securities do not meet the criteria for classification as equity and have been classified as financial liabilities on the Statements of Financial Position. The Fund s obligation for net assets attributable to securityholders is recorded at the redemption amount. As at June 30, 2017 and June 30, 2016, the Fund s net asset value per Series per security may differ by less than $0.01 from its net assets attributable to securityholders per Series per securities calculated in accordance with IFRS as a result of normal reporting period end procedures to close off the books and records. Investment Transactions, Income Recognition and Transaction Costs - Regular way purchases and sales of financial assets are recognized at their trade date. The cost of investments is determined on an average cost basis, excluding commissions and other portfolio transaction costs. Net realized gains and losses from the sale of investments (which may include proceeds received from litigation) and change in net unrealized appreciation (depreciation) on investments are calculated with reference to average cost of the related investment securities. Interest income is accrued as earned. Dividend income is recognized on the ex-dividend date except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Distributions received from investment trusts are recorded as income, capital gains or a return of capital based on the best information available. Due to the nature of these investments, actual allocations could vary from this information. Distributions from investment trusts treated as a return of capital reduce the average cost of the underlying investment trust. Transaction costs, such as brokerage commissions, incurred in the purchase and sale of investment securities by the Fund are recognized as Commissions and other portfolio costs in the Statements of Comprehensive Income. Foreign Currency Translation Securities and other assets and liabilities denominated in a foreign currency are translated into Canadian dollars at the period-end exchange rates. Purchases and sales of securities, income and expenses denominated in foreign currencies are translated into Canadian dollars at the exchange rate on the date of the respective transaction. The effects of exchange rate fluctuations on investments are included in the Net realized gain (loss) and change in net unrealized appreciation (depreciation) on investments and exchange rate fluctuations on other foreign currency transactions are included in the Net realized gain (loss) on foreign currency transactions and Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies in the Statements of Comprehensive Income. Futures Contracts The Fund may invest in futures contracts to manage its exposure to the markets. Upon entering into a futures contract, the Fund is required to deposit with the clearing broker, no later than the following business day, an amount (initial margin) equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on the settlement date. Subsequent payments (variation margin) are made or received by the Fund depending on the daily fluctuations in the value of the futures contract and are accounted for as change in net unrealized appreciation (depreciation) on derivatives in the Statements of Comprehensive Income. Upon the expiration or closing of the futures contract, realized gains or losses are recognized, and are recorded in the Statements of Comprehensive Income as Net realized gain (loss) on derivatives. The Fund pledged $987 (June 30, 2016: $733) as cash collateral, which is included in Cash collateral in the Statements of Financial Position. Futures contracts involve, to varying degrees, risk of loss in excess of the futures variation margin reflected in the Statements of Financial Position. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption Futures Contracts. This amount reflects each contract s exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract s terms. Valuation of Series Separate net assets attributable to securityholders is calculated for each Series of securities of the Fund. The net assets attributable to securityholders of a Series is computed by calculating the Series proportionate share of the assets and liabilities of the Fund common to all Series, adjusted for the assets and liabilities of the Fund attributable only to that Series. Expenses directly attributable to a Series are charged to that Series. Investment income and operating expenses are allocated proportionately to each Series based upon the relative net assets attributable to securityholders of each Series, except for items that can be specifically attributed to one or more Series. Per Security from Operations - The increase (decrease) in net assets attributable to securityholders resulting from operations per security in the Statements of Comprehensive Income represent the operational increase (decrease) for each Series of the Fund, divided by the relevant weighted average securities outstanding during the period. Refer to the Security Transactions Note for the Fund s weighted average securities outstanding. Statements of Cash Flows When preparing the Statements of Cash Flows, the Fund nets the rollover activity of its short-term investments, and includes only the net cash flow impact in Purchases of investments and derivatives or Proceeds from sale and maturity of investments Annual Reportport 14

and derivatives, as applicable. Additionally, in accordance with IFRS, the Fund s Statements of Cash Flows excludes non-cash transactions from its operating and financing activities. In the prior period, the Fund received in-kind consideration with a total fair value of $42 from the sale of redeemable securities. The Fund has excluded this non-cash transaction from the net cash from (used in) operating activities and net cash from (used in) financing activities during the prior period. Recent Accounting Pronouncements The final version of IFRS 9, Financial Instruments, was issued by the IASB in July 2014 and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces a model for classification and measurement, a single, forward-looking expected loss impairment model and a substantially reformed approach to hedge accounting. The new single, principle based approach for determining the classification of financial assets is driven by cash flow characteristics and the business model in which an asset is held. The new model also results in a single impairment model being applied to all financial instruments, which will require more timely recognition of expected credit losses. It also includes changes in respect of an entity s own credit risk in measuring liabilities elected to be measured at fair value, so that gains caused by the deterioration of an entity s own credit risk on such liabilities are no longer recognised in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, however is available for early adoption. In addition, the entity s own credit risk changes can be early applied in isolation without otherwise changing the accounting for financial instruments. The Fund is in the process of assessing the impact of IFRS 9 and does not plan to adopt the new standard early. 4. Expenses and Other Related Party Transactions Management and Advisory Fees - Fidelity serves as the manager and investment advisor of the Fund. Fidelity is part of a broader group of companies collectively known as Fidelity Investments. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity (Canada) Asset Management ULC, to provide investment advice with respect to all or a portion of the investments of the Fund. The subadvisors 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 and the provision of key management personnel to the Fund, based on the net asset value of each Series, calculated daily and payable monthly. Fidelity may reduce the management and advisory fee or fund expenses for certain investors by reducing the management and advisory fee it charges to the Fund or reducing the amount charged to the Fund for certain expenses and having the Fund pay out the amount of the reduction to the investors as a distribution. These distributions are disclosed as Management fee reduction in the Statements of Changes in Net Assets Attributable to Securityholders. No management and advisory fees are charged with respect to the Series O securities, but investors will be charged a negotiated management fee. The annual management and advisory fee rates for each Series were as follows: Annual Management and Advisory Fee Rate (%) Series A 2.000 Series B 1.850 Series F.850 Series F5.850 Series F8.850 Series T5 2.000 Series T8 2.000 Series S5 1.850 Series S8 1.850 Series E1 1.825 Series E1T5 1.825 Series E2 1.800 Series E2T5 1.800 Series E3 1.775 Series E4 1.725 Series E5 1.700 Series P1.825 Series P1T5.825 Series P2.800 Series P2T5.800 Series P3.775 Series P3T5.775 Series P4.725 Series P5.700 15 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable and administrative expenses, including the provision of key administrative personnel to the Fund. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs, including the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges. The administration fee is in addition to the management and advisory fee. No administration fees are charged with respect to the Series O securities. The annual rate of the administration fee will fall under one of three tiers, depending on the net asset value of the Fund: Under $100 Million (Tier 1), $100 Million to $1 Billion (Tier 2) and Over $1 Billion (Tier 3). The administration fee is calculated as a fixed annual percentage, accrued daily and payable monthly, of the net asset value of each Series as follows: Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A 0.300 0.290 0.280 Series B 0.275 0.265 0.255 Series F 0.225 0.215 0.205 Series F5 0.225 0.215 0.205 Series F8 0.225 0.215 0.205 Series T5 0.300 0.290 0.280 Series T8 0.300 0.290 0.280 Series S5 0.275 0.265 0.255 Series S8 0.275 0.265 0.255 Series E1 0.225 0.215 0.205 Series E1T5 0.225 0.215 0.205 Series E2 0.175 0.165 0.155 Series E2T5 0.175 0.165 0.155 Series E3 0.150 0.140 0.130 Series E4 0.150 0.140 0.130 Series E5 0.150 0.140 0.130 Series P1 0.175 0.165 0.155 Series P1T5 0.175 0.165 0.155 Series P2 0.125 0.115 0.105 Series P2T5 0.125 0.115 0.105 Series P3 0.100 0.090 0.080 Series P3T5 0.100 0.090 0.080 Series P4 0.100 0.090 0.080 Series P5 0.100 0.090 0.080 Prior to October 28, 2016, the administration fee was calculated as a fixed annual percentage of the net asset value of each Series as follows (some or all Series administration fees may not have changed): Annual Reportport 16

Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A 0.320 0.310 0.300 Series B 0.285 0.275 0.265 Series F 0.240 0.230 0.220 Series F5 0.240 0.230 0.220 Series F8 0.240 0.230 0.220 Series T5 0.320 0.310 0.300 Series T8 0.320 0.310 0.300 Series S5 0.285 0.275 0.265 Series S8 0.285 0.275 0.265 Series E1 0.235 0.225 0.215 Series E1T5 0.235 0.225 0.215 Series E2 0.185 0.175 0.165 Series E2T5 0.185 0.175 0.165 Series E3 0.160 0.150 0.140 Series E4 0.160 0.150 0.140 Series E5 0.160 0.150 0.140 Series P1 0.190 0.180 0.170 Series P1T5 0.190 0.180 0.170 Series P2 0.140 0.130 0.120 Series P3 0.115 0.105 0.095 Series P4 0.115 0.105 0.095 Series P5 0.115 0.105 0.095 Prior to October 29, 2015, the administration fee was calculated as a fixed annual percentage of the net asset value of each Series as follows (some or all Series administration fees may not have changed): Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A 0.339 0.329 0.319 Series B 0.289 0.279 0.269 Series F 0.243 0.243 0.243 Series F5 0.243 0.243 0.243 Series F8 0.243 0.243 0.243 Series T5 0.364 0.354 0.344 Series T8 0.364 0.354 0.344 Series S5 0.314 0.304 0.294 Series S8 0.314 0.304 0.294 Independent Review Committee Fees - The Independent Review Committee (IRC), as required under National Instrument 81-107, reviews conflict of interest matters referred to it by the manager and provides recommendations or approves actions, as appropriate, that are in the best interest of the funds. There are currently four members of the IRC who are independent of Fidelity and its affiliates. IRC members are compensated by way of an annual retainer fee and a per meeting attendance fee, as well as reimbursed for expenses associated with IRC duties. These costs are allocated among the individual funds proportionately by assets. No IRC fees are charged with respect to the Series O securities. Sales Tax - Certain provinces have harmonized their Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST). The Harmonized Sales Tax (HST) combines the GST rate of 5% with the PST rate of certain provinces. The Provincial GST/HST liability or refund is calculated using the residency of securityholders and the value of their interests in the Fund as at specific times, rather than the physical location of the Fund. The effective GST/HST rate charged to each Series of the Fund is based on the securityholders proportionate investments by province, using each province s HST rate or GST rate in the case of non-participating provinces. All amounts are included in the Statements of Comprehensive Income as Sales tax. Expenses Waived - Fidelity may absorb or waive certain expenses at its sole discretion and can terminate the absorption or waiver at any time. Fidelity waived a portion of its administration fee which is disclosed as Expenses waived in the Statements of Comprehensive Income. Commissions and Other Portfolio Costs - Commissions and other portfolio costs paid for security transactions during the period were $465 (June 30, 2016: $449), of which $23 (June 30, 2016: $-) were paid to brokerage firms that are affiliates of Fidelity Investments. The Fund may execute certain portfolio trades with brokers who reimbursed a portion of their commissions to the Fund. Reimbursement estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Commissions reimbursed under 17 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) this arrangement were $79 (June 30, 2016: $51) and are included in Commissions and other portfolio costs in the Statements of Comprehensive Income. In addition, a portion of commissions may be paid for research. The total of such payments was $124 (June 30, 2016: $206). Amounts paid for research provided to the Fund by executing brokers are estimates made by Fidelity. Fidelity has established procedures to assist them in making a good faith determination that the Fund received a reasonable benefit considering the value of research goods and services and the amount of brokerage commissions paid. 5. Taxation and Distributions The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada). For tax purposes, the Fund has a December year end. In each tax year, the Fund declares and credits as due and payable sufficient net investment income and net realized capital gains to securityholders such that the Fund will not be subject to income taxes. As a result, the Fund does not record income taxes under IAS 12 Income Taxes (IAS 12) and accordingly does not recognize the deferred tax benefit associated with tax loss carry forwards and other taxable temporary differences. Foreign withholding taxes are imposed by certain countries on investment income and are estimated based on the tax rules and actual rates that exist in the foreign markets. Investment income is recorded gross of foreign taxes withheld. Foreign withholding taxes are accrued for in conjunction with the accrual for the related investment income and are included in Foreign taxes withheld on the Statements of Comprehensive Income and Other payables and accrued expenses on the Statements of Financial Position. Distributions are taxable in securityholders hands. At the end of each tax year, the character of the distributions is determined for tax purposes. Under the terms of the Declaration of Trust, the trustee may capitalize any distribution amount without any increase in the number of securities outstanding. Distributions, if any, are declared separately for each Series. Capital losses may be carried forward indefinitely to reduce future realized capital gains. As at the last taxation year-end, the Fund had no capital losses available to be carried forward. Non capital losses may be carried forward for up to 20 tax years to reduce future taxable income, but expire in December of the year noted. As at the last taxation year-end, the Fund had no non capital losses available to be carried forward. 6. Capital Risk Management Securities issued and outstanding are considered to be the capital of the Fund. The capital of each series of the Fund is divided into an unlimited number of securities of equal value, with no par value. All securities in a series of the Fund rank equally with respect to distributions. A securityholder of the Fund is entitled to one vote for each one dollar in value of securities owned. Fractional securities are proportionately entitled to these rights. The Fund generally has no restrictions or specific capital requirements on the subscriptions and redemptions of securities other than minimum subscription requirements; although, on rare occasions, Fidelity may temporarily suspend securityholders right to redeem securities and postpone paying sale proceeds. The relevant movements attributable to securityholders are shown in the Statements of Changes in Net Assets Attributable to Securityholders. In accordance with the objectives and the risk management policies outlined in the Financial Instruments Risk notes, the Fund endeavors to invest the subscriptions received in appropriate investments while maintaining sufficient liquidity to meet redemptions. Such liquidity is managed by investing the majority of assets in investments that can be readily disposed and via the Fund s ability to borrow up to 5% of its net asset value. Security Transactions - Security transactions and weighted average securities for each Series were as follows: Annual Reportport 18

Securities Outstanding, Beginning of Period Issued Reinvested Redeemed Securities Outstanding, End of Period Weighted Average Securities Period ended June 30, 2017 Series A 10,111 1,398 (3,501) 8,008 9,197 Series B 15,409 4,097 3 (8,025) 11,484 13,403 Series F 11,358 5,513 1 (8,053) 8,819 9,910 Series F5 140 31 1 (118) 54 89 Series F8 42 11 2 (14) 41 43 Series O 47,708 3,958 305 (23,735) 28,236 39,334 Series T5 94 20 1 (40) 75 86 Series T8 164 38 5 (59) 148 160 Series S5 106 20 1 (56) 71 95 Series S8 140 41 4 (74) 111 123 Series E1 3,249 3,412 (2,753) 3,908 4,039 Series E1T5 8 54 (16) 46 20 Series E2 554 921 (598) 877 783 Series E2T5 9 9 2 Series E3 91 116 (148) 59 108 Series E4 107 104 (137) 74 71 Series E5 5 63 (68) 7 Series P1 1,143 5,198 (2,219) 4,122 3,048 Series P1T5 8 146 1 (120) 35 49 Series P2 100 1,288 (644) 744 584 Series P2T5 99 (87) 12 22 Series P3 24 392 (132) 284 145 Series P3T5 79 2 (7) 74 77 Series P4 50 (47) 3 10 Series P5 Period ended June 30, 2016 Series A 7,788 4,868 (2,545) 10,111 9,305 Series B 12,509 11,110 3 (8,213) 15,409 14,979 Series F 6,534 11,368 3 (6,547) 11,358 8,698 Series F5 85 192 4 (141) 140 157 Series F8 28 29 1 (16) 42 38 Series O 32,632 27,661 (12,585) 47,708 42,354 Series T5 62 76 1 (45) 94 89 Series T8 114 146 3 (99) 164 178 Series S5 93 71 1 (59) 106 112 Series S8 95 72 4 (31) 140 126 Series E1 4,357 (1,108) 3,249 2,943 Series E1T5 19 (11) 8 7 Series E2 770 (216) 554 478 Series E3 199 (108) 91 80 Series E4 132 (25) 107 66 Series E5 5 5 5 Series P1 1,681 (538) 1,143 988 Series P1T5 70 (62) 8 23 Series P2 225 (125) 100 109 Series P3 24 24 12 Series P4 Series P5 Affiliated Ownership - As at June 30, 2017, Fidelity and its affiliates held approximately 47% of the Fund. As at June 30, 2016, Fidelity and its affiliates held approximately 56% of the Fund. 7. Financial Instruments Risk The Fund s activities expose it to a variety of financial instruments risks: credit risk, liquidity risk, other price risk, interest rate risk and currency risk. Fidelity seeks to minimize potential adverse effects of these performance risks by employing professional, experienced portfolio advisors, by 19 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts)) daily monitoring of positions and market events, and by diversifying the investment portfolio within the constraints of the investment mandate. Derivative financial instruments may be used to moderate certain risk exposures. Risk, as defined by Fidelity, is the mismatch of certain risk factors, such as the market capitalization, beta, common factors such as size, priceearnings ratio, price-to-book ratio and industry exposures, between a portfolio and its benchmark. Such mismatches may result in divergence of returns relative to the benchmark. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1 indicates that the security s price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security s price will be more volatile than the market. For example, if a stock s beta is 1.2, it s theoretically 20% more volatile than the market. Fidelity s objective is to provide consistent value-added return over the benchmark. Unsystematic risk is mitigated primarily through investments in a diverse portfolio of securities across many sectors, styles or regions of the market. Fidelity s qualitative fundamental security selection is also well diversified across many analysts. Rather than relying on a single valuation process or quantitative model that implicitly assumes that past value-added returns of some sectors or styles will persist into the future, Fidelity s analysts select securities based on their own unique valuation processes. The Fund aims to achieve long-term capital growth. It invests primarily in equity securities of U.S. companies. The Fund s benchmark is the S&P 500 Index. Portfolio risk is monitored daily and reviewed monthly by an investment compliance group. In addition, there is a formal quarterly review of each fund. The investment compliance group, portfolio managers and the senior analysts attend a quarterly portfolio review. Portfolios within each strategy are reviewed relative to each other and to their benchmark. Active industry and security allocations are analyzed. Credit Risk - Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund. The Fund s own credit risk in the case of financial liabilities and a counterparty s credit risk, both indirect and direct, are considered, where applicable, in determining the fair value of financial assets and financial liabilities. In addition, as part of its cash management, the Fund limits its direct exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of investments and other assets represents the maximum credit risk exposure as at June 30, 2017 and June 30, 2016. Credit risk exposure for derivative instruments is based on the Fund s unrealized gain on the contractual obligations with the counterparty as at the reporting date. The Fund restricts its exposure to credit losses on derivative instruments by limiting its exposure to any one counterparty and by entering into transactions with counterparties who meet the minimum approved credit rating under securities regulations and other pre-set financial and non- financial criteria. Other than outlined above, there were no significant concentrations of credit risk to counterparties as at June 30, 2017 and June 30, 2016. Concentration Risk - The Fund may be exposed to risk based on the concentration levels of its financial instruments in various sectors, geographic regions, asset weightings and market capitalization, as applicable. Fidelity analyzes and monitors these concentration risks regularly. Refer to the Derivative Exposure and Sector Mix tables in the Summary of Investment Portfolio of the Fund s Annual Management Report of Fund Performance as at June 30, 2017, which summarize the investment concentration risks that are relevant for the Fund. Liquidity Risk - Liquidity risk is defined as the risk that the Fund may not be able to settle or meet its obligations on time or at a reasonable price. The Fund is exposed to daily cash redemptions of its redeemable securities. Redeemable securities are redeemed on demand at the securityholder s option based on the Fund s net asset value per security (NAVPS) at the time of redemption. The Fund may be exposed to indirect liquidity risk through its investments. In accordance with securities regulations, investment funds must maintain at least 90% of assets in liquid investments; investments that are traded in an active market and can be readily disposed of. In addition, the Fund aims to retain sufficient cash and short-term investments to maintain liquidity, and has the ability to borrow up to 5% of its net asset value from the custodian for the purpose of funding redemptions. The liquidity position is monitored on a daily basis. As at June 30, 2017 and June 30, 2016, the Fund did not have financial liabilities with maturities greater than 3 months. Other Price Risk - Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk on monetary instruments), whether caused by factors specific to an individual investment, its issuer, or other factors affecting all instruments traded in a market or market segment. All financial instruments present a risk of loss of capital. This risk is moderated through, a careful selection of securities and other financial instruments within the parameters of the investment strategy. The maximum risk resulting from financial instruments is equivalent to their fair value except for possible losses from options written and future contracts which can be unlimited. Investments and derivatives, if applicable, are susceptible to other price risk arising from uncertainties about future prices of the instruments. If the benchmark had increased or decreased by 5% on June 30, 2017 and June 30, 2016, with all other variables held constant, the net assets attributable to securityholders of the Fund would have increased or decreased by approximately $56,286 (June 30, 2016: $85,815). This change is Annual Reportport 20

estimated using the Fund s beta which is calculated based on the historical correlation between the return of the Fund as compared to the return of the benchmark. In practice, the actual trading results may differ from this sensitivity analysis and the difference could be material. Interest Rate Risk - Interest rate risk arises on interest-bearing financial instruments held directly or indirectly in the investment portfolio such as bonds. The Fund is exposed to the risk that the fair value or the future cash flows of interest-bearing financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. Any excess cash may be invested in short-term investments at market interest rates. The majority of the Fund s financial instrument exposure is non-interest bearing. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates. Currency Risk - Currency risk arises from financial instruments that are denominated in a currency other than Canadian dollar, which is the Fund s functional currency. The Fund is exposed to the risk that the value of financial instruments will fluctuate due to changes in exchange rates. Currency risk is not considered to arise from financial instruments that are non-monetary items such as equity investments, or forward foreign exchange contracts related to such non-monetary items. Foreign exchange exposure relating to non-monetary assets and liabilities is considered to be a component of other price risk, not foreign currency risk. As at June 30, 2017 and June 30, 2016, the majority of the Fund s monetary assets and liabilities are denominated in Canadian dollars. As a result, the Fund is not subject to significant amounts of risk due to fluctuations in exchange rates. 21 Annual Report

Management Report and Independent Auditor s Report Management Responsibility for Financial Reporting To the Securityholders and Trustee of Fidelity American Equity Fund (Fund) The accompanying financial statements have been prepared by Fidelity Investments Canada ULC (Fidelity), as manager of the Fund. Fidelity is responsible for the information and representations contained in these financial statements. The Board of Directors of Fidelity is responsible for reviewing and approving the financial statements. Fidelity maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have been prepared in accordance with International Financial Reporting Standards and include certain amounts and disclosures that are based on estimates and judgments. The significant accounting policies, which management believes are appropriate for the Fund, are described in Note 3 to the financial statements. PricewaterhouseCoopers LLP is the external auditor of the Fund. They have audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express to the securityholders their opinion on the financial statements. Their report is set out below. Brock Dunlop Vice President and Fund Treasurer Fidelity Investments Canada ULC September 7, 2017 Independent Auditor s Report To the Securityholders and Trustee of Fidelity American Equity Fund (Fund) We have audited the accompanying financial statements of the Fund, which comprise the statements of financial position as at June 30, 2017 and 2016 and the statements of comprehensive income, changes in net assets attributable to securityholders and cash flows for the years ended June 30, 2017 and 2016, and the related notes, which comprise a summary of significant accounting policies and other explanatory information. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at June 30, 2017 and 2016 and its financial performance and its cash flows for the years ended June 30, 2017 and 2016 in accordance with International Financial Reporting Standards. PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario September 7, 2017 Annual Reportport 22

23 Annual Report

Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Toronto, Ontario M5G 2N7 Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Custodian State Street Trust Company of Canada Toronto, Ontario Auditor PricewaterhouseCoopers LLP Toronto, Ontario Visit us online at www.fidelity.ca or call Fidelity Client Services at 1-800-263-4077 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 or Fidelity U.S. Money Market Fund 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. 62.107077E 1.788885.114 FICL-AMV-ANN-0917