fidelity balanced managed risk portfolio · pdf filesee accompanying notes which are an...

Fidelity Balanced Managed Risk Portfolio

Annual ReportJune 30, 2017

2Annual ReportportSee accompanying notes which are an integral part of the financial statements.

Equities – 36.3%Shares / Units Cost

(000s)Market Value

(000s)

Australia – 0.5%ENERGY – 0.1%Woodside Petroleum Ltd. 5,744 $ 179 $ 171MATERIALS – 0.2%Rio Tinto Ltd. 2,753 170 174REAL ESTATE – 0.2%Mirvac Group unit 100,365 214 213

TOTAL AUSTRALIA 563 558

Austria – 0.1%INDUSTRIALS – 0.1%Andritz AG 2,274 163 178

Bailiwick of Jersey – 0.1%MATERIALS – 0.1%Randgold Resources Ltd. 1,465 165 169

Belgium – 0.0%HEALTH CARE – 0.0%UCB SA 298 27 27

Bermuda – 0.2%REAL ESTATE – 0.1%Hongkong Land Holdings Ltd. 10,797 97 103UTILITIES – 0.1%Cheung Kong Infrastructure

Holdings Ltd. 15,911 173 173

TOTAL BERMUDA 270 276

Canada – 14.8%CONSUMER DISCRETIONARY – 1.9%Canadian Tire Ltd. Class A

(non‑vtg.) 2,875 424 424Cineplex, Inc. 3,782 195 200Cogeco Communications, Inc. 1,551 113 123Dollarama, Inc. 3,850 403 477EnerCare, Inc. 13,108 249 258Gildan Activewear, Inc. 4,620 164 184Restaurant Brands

International, Inc. 698 51 57Shaw Communications, Inc.

Class B 16,211 452 459Sleep Country Canada

Holdings, Inc. 2,635 83 108Uni‑Select, Inc. 2,361 75 74TOTAL CONSUMER DISCRETIONARY 2,209 2,364CONSUMER STAPLES – 1.2%Alimentation Couche‑Tard, Inc.

Class B (sub. vtg.) 7,428 458 462George Weston Ltd. 2,944 335 346Loblaw Companies Ltd. 2,827 201 204North West Co., Inc. 2,797 81 87Saputo, Inc. 10,335 472 426TOTAL CONSUMER STAPLES 1,547 1,525

Fidelity Balanced Managed Risk Portfolio

Schedule of Investments June 30, 2017Showing Percentage of Net Assets Attributable to Securityholders (Net Assets)

Shares / Units Cost

(000s)Market Value

(000s)

ENERGY – 1.7%ARC Resources Ltd. 10,343 $ 212 $ 175Enbridge, Inc. 3,229 170 167Keyera Corp. 11,868 460 484Mullen Group Ltd. 5,706 100 91Parex Resources, Inc. 8,018 128 118Parkland Fuel Corp. 10,178 294 302Pason Systems, Inc. 4,475 86 87Pembina Pipeline Corp. 10,971 473 471TransCanada Corp. 2,586 159 160TOTAL ENERGY 2,082 2,055FINANCIALS – 3.9%Brookfield Asset Management,

Inc. Class A 7,566 356 385CI Financial Corp. 17,178 473 475Genworth MI Canada, Inc. 7,750 282 277Great‑West Lifeco, Inc. 5,395 193 190IGM Financial, Inc. 7,807 312 314Intact Financial Corp. 4,703 444 461Manulife Financial Corp. 14,179 338 345Power Financial Corp. 14,365 489 478Royal Bank of Canada 3,859 362 363Sun Life Financial, Inc. 10,342 509 479The Toronto‑Dominion Bank 10,073 672 658Thomson Reuters Corp. 7,993 468 480TOTAL FINANCIALS 4,898 4,905HEALTH CARE – 0.1%Knight Therapeutics, Inc. 5,288 55 54INDUSTRIALS – 0.4%Badger Daylighting Ltd. 2,534 82 67Canadian National

Railway Co. 3,803 359 400Morneau Shephell, Inc. 1,485 29 31TOTAL INDUSTRIALS 470 498INFORMATION TECHNOLOGY – 0.8%CGI Group, Inc. Class A (sub.

vtg.) 7,234 465 479Constellation Software, Inc. 686 424 465Kinaxis, Inc. 1,267 86 102TOTAL INFORMATION TECHNOLOGY 975 1,046MATERIALS – 0.2%Intertape Polymer Group, Inc. 4,837 114 119Potash Corp. of

Saskatchewan, Inc. 1,649 39 35Stella‑Jones, Inc. 1,143 48 51Tahoe Resources, Inc. 3,071 38 34TOTAL MATERIALS 239 239REAL ESTATE – 1.7%Allied Properties (REIT) 4,943 177 192Boardwalk (REIT) 3,229 157 154Canadian (REIT) 4,089 194 188Canadian Apartment

Properties (REIT) unit 8,802 282 295Colliers International Group,

Inc. 1,184 77 87First Capital Realty, Inc. 15,342 313 303

3 Annual ReportSee accompanying notes which are an integral part of the financial statements.

Equities – continuedShares / Units Cost

(000s)Market Value

(000s)

Canada – continuedREAL ESTATE – continuedFirstService Corp. 1,264 $ 89 $ 105Granite Real Estate Investment

Trust 3,266 151 168H&R REIT/H&R Finance Trust 16,098 374 354Smart (REIT) 8,915 287 286TOTAL REAL ESTATE 2,101 2,132TELECOMMUNICATION SERVICES – 1.1%BCE, Inc. 8,205 481 479Rogers Communications, Inc.

Class B (non‑vtg.) 7,425 414 455TELUS Corp. 10,500 458 470TOTAL TELECOMMUNICATION SERVICES 1,353 1,404UTILITIES – 1.8%ATCO Ltd. Class I (non‑vtg.) 5,125 243 260Canadian Utilities Ltd. Class A

(non‑vtg.) 8,707 329 363Capital Power Corp. 9,252 227 225Emera, Inc. 9,904 455 477Fortis, Inc. 10,637 451 485Hydro One Ltd. 20,424 480 474TOTAL UTILITIES 2,185 2,284

TOTAL CANADA 18,114 18,506

Curacao – 0.1%ENERGY – 0.1%Schlumberger Ltd. 1,891 200 161

France – 0.2%CONSUMER DISCRETIONARY – 0.2%Hermes International SCA 288 172 185

Hong Kong – 0.6%CONSUMER DISCRETIONARY – 0.2%Techtronic Industries Co. Ltd. 31,829 163 190FINANCIALS – 0.1%BOC Hong Kong (Holdings)

Ltd. 29,550 167 183UTILITIES – 0.3%CLP Holdings Ltd. 12,541 170 172Power Assets Holdings Ltd. 15,273 184 175TOTAL UTILITIES 354 347

TOTAL HONG KONG 684 720

Ireland – 0.3%CONSUMER STAPLES – 0.2%Kerry Group PLC Class A 1,834 186 205HEALTH CARE – 0.1%Medtronic PLC 1,738 182 200

TOTAL IRELAND 368 405

Shares / Units Cost

(000s)Market Value

(000s)

Israel – 0.2%INFORMATION TECHNOLOGY – 0.1%Check Point Software

Technologies Ltd. 770 $ 97 $ 109TELECOMMUNICATION SERVICES – 0.1%Bezeq The Israel

Telecommunication Corp. Ltd. 76,394 179 165

TOTAL ISRAEL 276 274

Italy – 0.1%CONSUMER DISCRETIONARY – 0.1%Luxottica Group SpA 2,273 170 171

Japan – 1.9%CONSUMER STAPLES – 0.6%Asahi Group Holdings 4,118 189 201Kirin Holdings Co. Ltd. 5,309 125 140New Hampshire Foods Ltd. 5,695 210 225Tsuruha Holdings, Inc. 927 120 128TOTAL CONSUMER STAPLES 644 694HEALTH CARE – 0.1%Astellas Pharma, Inc. 10,752 193 171INDUSTRIALS – 0.1%Kamigumi Co. Ltd. 2,257 31 31Recruit Holdings Co. Ltd. 4,270 83 95TOTAL INDUSTRIALS 114 126INFORMATION TECHNOLOGY – 0.5%Nomura Research Institute Ltd. 3,956 178 202Oracle Corp. Japan 2,087 171 175Otsuka Corp. 2,613 181 210TOTAL INFORMATION TECHNOLOGY 530 587MATERIALS – 0.1%Toray Industries, Inc. 15,472 178 168REAL ESTATE – 0.2%Daito Trust Construction Co.

Ltd. 853 168 172TELECOMMUNICATION SERVICES – 0.3%KDDI Corp. 1,749 64 60Nippon Telegraph &

Telephone Corp. 3,182 184 195NTT DOCOMO, Inc. 4,952 156 152TOTAL TELECOMMUNICATION SERVICES 404 407

TOTAL JAPAN 2,231 2,325

Multi-National – 0.1%TELECOMMUNICATION SERVICES – 0.1%HKT Trust/HKT Ltd. unit 105,617 182 180

New Zealand – 0.6%HEALTH CARE – 0.1%Ryman Healthcare Group Ltd. 22,307 179 176INDUSTRIALS – 0.1%Auckland International Airport

Ltd. 24,350 155 165


Fidelity Balanced Managed Risk PortfolioSchedule of Investments – continued


(000s)Market Value

(000s)

New Zealand – continuedTELECOMMUNICATION SERVICES – 0.2%Spark New Zealand Ltd. 65,134 $ 219 $ 234UTILITIES – 0.2%Contact Energy Ltd. 39,004 180 193

TOTAL NEW ZEALAND 733 768

Norway – 0.3%CONSUMER STAPLES – 0.2%Orkla ASA 13,542 165 178ENERGY – 0.1%Statoil ASA 7,225 168 155

TOTAL NORWAY 333 333

Singapore – 0.8%FINANCIALS – 0.2%DBS Group Holdings Ltd. 2,761 55 54United Overseas Bank Ltd. 7,489 155 163TOTAL FINANCIALS 210 217INDUSTRIALS – 0.2%ComfortDelgro Corp. Ltd. 72,337 169 157Singapore Airport Terminal

Service Ltd. 33,227 156 160TOTAL INDUSTRIALS 325 317REAL ESTATE – 0.4%CapitaCommercial Trust (REIT) 141,879 207 222UOL Group Ltd. 35,267 219 254TOTAL REAL ESTATE 426 476

TOTAL SINGAPORE 961 1,010

Spain – 0.1%INDUSTRIALS – 0.0%Aena SA 125 27 32INFORMATION TECHNOLOGY – 0.1%Amadeus IT Holding SA

Class A 917 60 71

TOTAL SPAIN 87 103

Switzerland – 1.0%CONSUMER DISCRETIONARY – 0.1%Swatch Group AG (Bearer) 125 64 60CONSUMER STAPLES – 0.1%Nestle SA (Reg. S) 1,618 170 183FINANCIALS – 0.3%Chubb Ltd. 893 161 168Partners Group Holding AG 218 159 175TOTAL FINANCIALS 320 343HEALTH CARE – 0.1%Roche Holding AG

(participation certificate) 389 135 129

Shares / Units Cost

(000s)Market Value

(000s)

INDUSTRIALS – 0.3%ABB Ltd. (Reg.) 5,276 $ 164 $ 170SGS SA (Reg.) 60 171 188TOTAL INDUSTRIALS 335 358MATERIALS – 0.1%Sika AG 20 172 167

TOTAL SWITZERLAND 1,196 1,240

United Kingdom – 0.8%CONSUMER DISCRETIONARY – 0.2%Compass Group PLC 5,954 157 163Kingfisher PLC 26,564 145 135TOTAL CONSUMER DISCRETIONARY 302 298CONSUMER STAPLES – 0.2%Diageo PLC 5,273 193 202Unilever PLC 480 29 34TOTAL CONSUMER STAPLES 222 236ENERGY – 0.1%TechnipFMC PLC 2,037 77 72HEALTH CARE – 0.1%GlaxoSmithKline PLC 5,392 143 149INDUSTRIALS – 0.1%Bunzl PLC 2,092 81 81Nielsen Holdings PLC 1,983 111 99TOTAL INDUSTRIALS 192 180MATERIALS – 0.1%Rio Tinto PLC 1,766 98 97

TOTAL UNITED KINGDOM 1,034 1,032

United States of America – 13.5%CONSUMER DISCRETIONARY – 0.8%AutoZone, Inc. 193 188 143Darden Restaurants, Inc. 1,554 161 182Dollar General Corp. 1,311 123 123Foot Locker, Inc. 766 69 49McDonald’s Corp. 964 166 191Ross Stores, Inc. 1,594 139 119TJX Companies, Inc. 1,731 175 162Tractor Supply Co. 387 34 27TOTAL CONSUMER DISCRETIONARY 1,055 996CONSUMER STAPLES – 2.3%Altria Group, Inc. 1,910 180 184Colgate‑Palmolive Co. 1,782 167 171Constellation Brands, Inc.

Class A (sub. vtg.) 772 165 194Costco Wholesale Corp. 790 173 164Dr. Pepper Snapple Group,

Inc. 1,360 167 161Estee Lauder Companies, Inc.

Class A 1,646 182 205Kellogg Co. 2,091 203 188Molson Coors Brewing Co.

Class B 1,382 176 155Monster Beverage Corp. 2,096 126 135PepsiCo, Inc. 1,287 185 193



(000s)Market Value

(000s)

United States of America – continuedCONSUMER STAPLES – continuedPhilip Morris International, Inc. 1,233 $ 167 $ 188Procter & Gamble Co. 1,727 200 195Sysco Corp. 2,504 178 163The Coca‑Cola Co. 3,293 185 192The Hershey Co. 1,158 165 161The J.M. Smucker Co. 1,203 210 185Tyson Foods, Inc. Class A 449 37 36TOTAL CONSUMER STAPLES 2,866 2,870ENERGY – 0.7%Cimarex Energy Co. 215 36 26EOG Resources, Inc. 1,366 174 160EQT Corp. 2,077 165 158Halliburton Co. 2,630 163 146Noble Energy, Inc. 2,223 92 82Phillips 66 Co. 400 42 43Pioneer Natural Resources Co. 704 167 146Range Resources Corp. 3,009 111 90TOTAL ENERGY 950 851FINANCIALS – 0.7%AFLAC, Inc. 1,692 171 170Allstate Corp. 1,626 170 186Berkshire Hathaway, Inc.

Class B 253 57 56FNF Group 3,869 190 225Reinsurance Group of

America, Inc. 566 95 94The Travelers Companies, Inc. 1,026 166 168TOTAL FINANCIALS 849 899HEALTH CARE – 1.7%Anthem, Inc. 1,011 213 247Becton, Dickinson & Co. 738 175 187Danaher Corp. 1,601 176 175DaVita HealthCare Partners,

Inc. 980 87 82Henry Schein, Inc. 141 34 33Intuitive Surgical, Inc. 149 144 181Laboratory Corp. of America

Holdings 1,145 207 229MEDNAX, Inc. 1,515 134 119ResMed, Inc. 2,434 218 246Stryker Corp. 735 122 132The Cooper Companies, Inc. 543 137 169Universal Health Services, Inc.

Class B 758 117 120Zimmer Biomet Holdings, Inc. 1,170 177 195TOTAL HEALTH CARE 1,941 2,115INDUSTRIALS – 1.0%3M Co. 490 126 132Expeditors International of

Washington, Inc. 2,416 175 177Northrop Grumman Corp. 517 164 172Raytheon Co. 831 165 174Republic Services, Inc. 2,331 184 193

Shares / Units Cost

(000s)Market Value

(000s)

W.W. Grainger, Inc. 735 $ 213 $ 172Waste Management, Inc. 1,930 183 184TOTAL INDUSTRIALS 1,210 1,204INFORMATION TECHNOLOGY – 0.3%Automatic Data Processing,

Inc. 882 119 117Cisco Systems, Inc. 1,732 76 70F5 Networks, Inc. 574 102 95Jack Henry & Associates, Inc. 466 64 63TOTAL INFORMATION TECHNOLOGY 361 345INVESTMENT COMPANIES – 3.9%iShares Barclays TIPS

Bond ETF 33,209 5,023 4,885MATERIALS – 0.1%W.R. Grace & Co. 946 89 88REAL ESTATE – 0.5%AvalonBay Communities, Inc. 738 176 184Essex Property Trust, Inc. 561 174 187Public Storage 680 197 184Simon Property Group, Inc. 511 121 107TOTAL REAL ESTATE 668 662TELECOMMUNICATION SERVICES – 0.1%Verizon Communications, Inc. 2,833 183 164UTILITIES – 1.4%Alliant Energy Corp. 2,546 130 133Ameren Corp. 2,158 160 153Atmos Energy Corp. 1,667 171 179CMS Energy Corp. 3,776 218 226DTE Energy Co. 1,222 169 168Edison International 2,151 214 218NextEra Energy, Inc. 941 161 171PPL Corp. 2,468 122 124Public Service Enterprise

Group, Inc. 3,161 184 176Xcel Energy, Inc. 3,955 224 235TOTAL UTILITIES 1,753 1,783

TOTAL UNITED STATES OF AMERICA 16,948 16,862TOTAL EQUITIES 44,877 45,483

Bonds – 14.9%Principal Amount (000s)

Domestic Bonds – 7.0%Alberta Province:

3.05% 12/1/48 $ 50 50 503.3% 12/1/46 138 141 1443.45% 12/1/43 61 62 654.5% 12/1/40 28 33 35

Canadian Government:2.75% 12/1/48 304 339 3462.75% 12/1/64 96 111 1153.5% 12/1/45 351 441 4504% 6/1/41 376 497 5055% 6/1/37 299 433 440



Bonds – continuedPrincipal Amount (000s)

Cost (000s)

Market Value (000s)

Domestic Bonds – continuedCanadian Government: – continued

5.75% 6/1/29 $ 206 $ 291 $ 2915.75% 6/1/33 281 423 425

Hydro‑Quebec:5% 2/15/45 26 35 365% 2/15/50 44 61 636% 8/15/31 20 27 276% 2/15/40 26 38 396.5% 2/15/35 86 129 129

New Brunswick Province:3.1% 8/14/48 12 11 123.55% 6/3/43 28 28 303.8% 8/14/45 30 31 344.55% 3/26/37 16 19 194.65% 9/26/35 50 61 614.8% 9/26/39 29 35 374.8% 6/3/41 42 51 545.5% 1/27/34 10 12 135.65% 12/27/28 60 75 77

Newfoundland Province:3.3% 10/17/46 36 34 363.7% 10/17/48 19 20 214.5% 4/17/37 5 5 64.65% 10/17/40 43 53 535.6% 10/17/33 10 12 135.7% 10/17/35 22 30 306.15% 4/17/28 25 31 336.55% 10/17/30 41 57 57

Nova Scotia Province:3.45% 6/1/45 18 18 193.5% 6/2/62 43 46 474.4% 6/1/42 25 29 314.5% 6/1/37 50 61 614.7% 6/1/41 13 16 174.9% 6/1/35 28 35 365.8% 6/1/33 5 7 76.6% 12/1/31 17 23 24

Ontario Province:2.8% 6/2/48 221 211 2152.9% 12/2/46 321 305 3173.45% 6/2/45 282 297 3083.5% 6/2/43 251 266 2754.6% 6/2/39 117 144 1494.65% 6/2/41 182 228 2354.7% 6/2/37 127 157 1625.6% 6/2/35 139 188 1935.85% 3/8/33 82 112 1146.2% 6/2/31 58 79 816.5% 3/8/29 118 165 164

Province of Alberta:2.9% 9/20/29 41 42 423.5% 6/1/31 61 66 663.9% 12/1/33 43 48 48

Principal Amount (000s)

Cost (000s)

Market Value (000s)

Province of British Columbia:2.8% 6/18/48 $ 71 $ 67 $ 703.2% 6/18/44 134 138 1414.3% 6/18/42 88 106 1104.7% 6/18/37 28 34 364.95% 6/18/40 61 80 825.4% 6/18/35 21 27 295.7% 6/18/29 67 89 886.35% 6/18/31 54 76 77

Province of Quebec:3.5% 12/1/45 227 240 2513.5% 12/1/48 163 175 1824.25% 12/1/43 169 203 2095% 12/1/38 112 145 1495% 12/1/41 187 246 2545.75% 12/1/36 70 96 1006% 10/1/29 88 118 1196.25% 6/1/32 94 132 134

Saskatchewan Province:2.75% 12/2/46 47 42 443.3% 6/2/48 57 60 603.4% 2/3/42 30 31 323.75% 3/5/54 6 7 73.9% 6/2/45 35 39 414.75% 6/1/40 25 31 325% 3/5/37 17 21 225.6% 9/5/35 17 22 235.75% 3/5/29 15 20 205.8% 9/5/33 20 26 286.4% 9/5/31 16 22 23

TOTAL DOMESTIC BONDS 8,512 8,720

Foreign Bonds – 7.9%U.S. Treasury Bonds:

2.25% 8/15/46 265 USD 302 3032.5% 2/15/45 265 USD 319 3222.5% 2/15/46 279 USD 335 3372.5% 5/15/46 278 USD 334 3362.75% 8/15/42 163 USD 209 2092.75% 11/15/42 177 USD 225 2272.875% 5/15/43 257 USD 337 3362.875% 8/15/45 257 USD 333 3352.875% 11/15/46 243 USD 314 3173% 5/15/42 97 USD 129 1303% 11/15/44 307 USD 410 4113% 5/15/45 258 USD 343 3463% 11/15/45 292 USD 389 3913% 2/15/47 247 USD 335 3313% 5/15/47 144 USD 197 1933.125% 11/15/41 93 USD 127 1273.125% 2/15/42 119 USD 164 1633.125% 2/15/43 183 USD 250 2503.125% 8/15/44 287 USD 391 3933.375% 5/15/44 254 USD 364 364


Bonds – continuedPrincipal Amount (000s)

Cost (000s)

Market Value (000s)

Foreign Bonds – continuedU.S. Treasury Bonds: – continued

3.5% 2/15/39 77 USD $ 113 $ 1123.625% 8/15/43 224 USD 335 3343.625% 2/15/44 243 USD 362 3633.75% 8/15/41 125 USD 188 1903.75% 11/15/43 285 USD 437 4363.875% 8/15/40 121 USD 186 1864.25% 5/15/39 77 USD 125 1254.25% 11/15/40 104 USD 169 1704.375% 2/15/38 50 USD 85 834.375% 11/15/39 68 USD 113 1124.375% 5/15/40 137 USD 229 2274.375% 5/15/41 88 USD 146 1464.5% 2/15/36 97 USD 164 1634.5% 5/15/38 36 USD 60 604.5% 8/15/39 88 USD 151 1484.625% 2/15/40 145 USD 251 2484.75% 2/15/37 39 USD 68 674.75% 2/15/41 118 USD 210 2065% 5/15/37 41 USD 73 725.25% 11/15/28 60 USD 103 1005.25% 2/15/29 33 USD 56 565.375% 2/15/31 82 USD 147 1435.5% 8/15/28 34 USD 59 586.125% 11/15/27 50 USD 88 876.125% 8/15/29 40 USD 75 726.25% 5/15/30 51 USD 96 936.375% 8/15/27 36 USD 65 63

TOTAL FOREIGN BONDS 9,961 9,941TOTAL BONDS 18,473 18,661

Underlying Funds – 48.4%Shares / Units

(000s)

Fidelity American High Yield Currency Neutral Fund ‑ Series O 404 3,668 3,701

Fidelity Canadian Bond Fund ‑ Series O 1,061 15,262 15,301

Fidelity Canadian Real Return Bond Index Investment Trust ‑ Series O 381 3,811 3,769

Fidelity Canadian Short Term Bond Fund ‑ Series O 617 6,420 6,363

Fidelity Global Intrinsic Value Investment Trust ‑ Series O 2,299 28,576 29,279

Fidelity Global Natural Resources Fund ‑ Series O 53 2,437 2,318

TOTAL UNDERLYING FUNDS 60,174 60,731

Short-Term Investments – 1.2%Principal Amount (000s)

Cost (000s)

Market Value (000s)

Canada – 1.2%Investments in reverse repurchase

agreements in a joint trading account at 0.47%, dated 6/30/17 due 7/4/17 (Collateralized by Canadian Government Obligations) # $ 1,488 $ 1,488 $ 1,488

TOTAL INVESTMENT PORTFOLIO – 100.8% $125,012 126,363

NET OTHER ASSETS (LIABILITIES) – (0.8)% (1,015)NET ASSETS – 100% $ 125,348

Presentation Notes Cost amount includes broker commissions and other trading expenses, if any.

Principal Amount is stated in Canadian dollars unless otherwise noted.



Investment ValuationThe following is a summary of the inputs used, as of June 30, 2017, 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 $ 4,264 $ 3,966 $ 298 $ —Consumer Staples 5,891 4,906 985 —Energy 3,465 3,310 155 —Financials 6,547 6,547 — —Health Care 3,021 2,572 449 —Industrials 3,058 2,888 170 —Information Technology 2,158 2,158 — —Investment Companies 4,885 4,885 — —Materials 1,102 668 434 —Real Estate 3,758 3,758 — —Telecommunication Services 2,554 2,147 407 —Utilities 4,780 4,780 — —

Bonds 18,661 — 18,661 —Underlying Funds 60,731 60,731 — —Short‑Term Investments 1,488 — 1,488 —Total Investments in Securities: $ 126,363 $ 103,316 $ 23,047 $ —

Other Information# Additional information on each counterparty to the reverse repurchase agreement is as follows:

Reverse Repurchase Agreement / Counterparty Value (000s)

$1,488,000 due 7/04/17 at 0.47%Bank of Montreal $ 152CIBC World Markets, Inc. 178Royal Bank of Canada 355Scotia Capital, Inc. 634The Toronto‑Dominion Bank 169

$ 1,488


Financial Statements

Statements of Financial Position

Amounts in thousands of Canadian Dollars (except per security amounts)As at June 30, 2017

Current assets (Note 3)Investments at fair value through profit or loss (Note 8) $ 126,363Cash 2,200Receivable for investments sold 606Other receivables 2Distributions receivable 287Subscriptions receivable 589

130,047

Current liabilities (Note 3)Payable for investments purchased 4,300Redemptions payable 175Distributions payable (Note 5) 42Management and advisory fees payable (Note 4) 142Other payables to affiliates (Note 4) 18Other payables and accrued expenses (Notes 4 and 5) 22

4,699Net assets attributable to securityholders (Notes 3 and 6) $ 125,348

Net assets attributable to securityholders per Series and per security (Note 6)Series A: ($16,497) $ 10.32

Series B: ($39,823) $ 10.33

Series F: ($31,861) $ 10.39

Series F5: ($1,034) $ 20.20

Series F8: ($1,006) $ 19.84

Series O: ($1) $ 10.46

Series T5: ($2,698) $ 20.05

Series T8: ($670) $ 19.71

Series S5: ($1,859) $ 20.07

Series S8: ($555) $ 19.73

Series E1: ($16,888) $ 10.34

Series E1T5: ($844) $ 20.08

Series E2: ($1,051) $ 10.40

Series E3: ($746) $ 10.40

Series E4: ($1) $ 10.40

Series E5: ($1) $ 10.40

Series P1: ($7,277) $ 10.40

Series P1T5: ($1,913) $ 20.20

Series P2: ($195) $ 10.45

Series P3: ($426) $ 10.45

Series P4: ($1) $ 10.45

Series P5: ($1) $ 10.45


Financial Statements – continued

Statements of Comprehensive Income

Amounts in thousands of Canadian Dollars (except per security amounts)For the periods ended June 30, (Note 1) 2017

Investment income (Note 3)Interest $ 177Dividends 524Income distributions from underlying funds 618Capital gain distributions from underlying funds 159

Net gain (loss) on investments Net realized gain (loss) on investments 844Change in net unrealized appreciation (depreciation) on investments 1,401

2,245Net gain (loss) on foreign currencies

Net realized gain (loss) on foreign currency transactions 12Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies 4

16Total investment income (loss) 3,739

Operating expenses (Note 4)Management and advisory fees 673Administration fees 90Independent Review Committee fees –Commissions and other portfolio costs 37Foreign taxes withheld (Note 5) 29Sales tax 85

Total operating expenses 914Expenses waived (Note 4) (1)

Net operating expenses 913Net increase (decrease) in net assets attributable to securityholders from operations $ 2,826

Increase (decrease) in net assets attributable to securityholders from operations per Series (Note 3)Series A $ 360

Series B $ 880

Series F $ 861

Series F5 $ 38

Series F8 $ 6

Series O $ –

Series T5 $ 69

Series T8 $ 15

Series S5 $ 46

Series S8 $ 18

Series E1 $ 290

Series E1T5 $ 13

Series E2 $ 2

Series E3 $ 56

Series E4 $ –

Series E5 $ –

Series P1 $ 147

Series P1T5 $ 1

Series P2 $ 13

Series P3 $ 11

Series P4 $ –

Series P5 $ –


Statements of Comprehensive Income – continued

Amounts in thousands of Canadian Dollars (except per security amounts)For the periods ended June 30, (Note 1) 2017

Increase (decrease) in net assets attributable to securityholders from operations per Series per security (Notes 3 and 6)Series A $ .36

Series B $ .38

Series F $ .45

Series F5 $ 1.02

Series F8 $ .32

Series O $ .83

Series T5 $ .80

Series T8 $ .60

Series S5 $ .80

Series S8 $ .92

Series E1 $ .32

Series E1T5 $ .60

Series E2 $ .05

Series E3 $ .56

Series E4 $ .40

Series E5 $ .40

Series P1 $ .37

Series P1T5 $ .05

Series P2 $ .58

Series P3 $ .32

Series P4 $ .45

Series P5 $ .45



Statements of Changes in Net Assets Attributable to Securityholders

Amounts in thousands of Canadian DollarsFor the period ended June 30, 2017 (Note 1) Total Series A Series B Series F Series F5 Series F8Net assets attributable to securityholders, beginning of

period $ – $ – $ – $ – $ – $ –Increase (decrease) in net assets attributable to securityhold-

ers from operations 2,826 360 880 861 38 6

Distributions to securityholders (Note 5)From net investment income (282) (34) (85) (81) (2) –From net realized gain (117) (14) (35) (34) (1) –Management fee reduction (4) – (2) (1) – –Return of capital (226) – – – (25) (23)

(629) (48) (122) (116) (28) (23)

Security transactions (Note 6)Proceeds from sale of securities 164,876 18,889 58,908 41,044 3,165 1,123Reinvestment of distributions 413 43 118 110 7 –Amounts paid upon redemption of securities (42,138) (2,747) (19,961) (10,038) (2,148) (100)

123,151 16,185 39,065 31,116 1,024 1,023Net assets attributable to securityholders, end of period $ 125,348 $ 16,497 $ 39,823 $ 31,861 $ 1,034 $ 1,006

For the period ended June 30, 2017 (Note 1) Series O Series T5 Series T8 Series S5 Series S8Net assets attributable to securityholders, beginning of period $ – $ – $ – $ – $ –Increase (decrease) in net assets attributable to securityholders from operations – 69 15 46 18

Distributions to securityholders (Note 5)From net investment income – (7) (2) (2) (1)From net realized gain – (3) (1) (1) –Management fee reduction – – – (1) –Return of capital – (57) (25) (38) (20)

– (67) (28) (42) (21)

Security transactions (Note 6)Proceeds from sale of securities 100 3,210 945 2,838 671Reinvestment of distributions – 12 8 10 2Amounts paid upon redemption of securities (99) (526) (270) (993) (115)

1 2,696 683 1,855 558Net assets attributable to securityholders, end of period $ 1 $ 2,698 $ 670 $ 1,859 $ 555

For the period ended June 30, 2017 (Note 1) Series E1 Series E1T5 Series E2 Series E3 Series E4Net assets attributable to securityholders, beginning of period $ – $ – $ – $ – $ –Increase (decrease) in net assets attributable to securityholders from operations 290 13 2 56 –

Distributions to securityholders (Note 5)From net investment income (49) (2) – – –From net realized gain (20) (1) – – –Management fee reduction – – – – –Return of capital – (15) – – –

(69) (18) – – –

Security transactions (Note 6)Proceeds from sale of securities 18,933 953 1,391 1,537 1Reinvestment of distributions 68 6 – – –Amounts paid upon redemption of securities (2,334) (110) (342) (847) –

16,667 849 1,049 690 1Net assets attributable to securityholders, end of period $ 16,888 $ 844 $ 1,051 $ 746 $ 1


Statements of Changes in Net Assets Attributable to Securityholders – continued

For the period ended June 30, 2017 (Note 1) Series E5 Series P1 Series P1T5 Series P2 Series P3Net assets attributable to securityholders, beginning of period $ – $ – $ – $ – $ –Increase (decrease) in net assets attributable to securityholders from operations – 147 1 13 11

Distributions to securityholders (Note 5)From net investment income – (17) – – –From net realized gain – (7) – – –Management fee reduction – – – – –Return of capital – – (23) – –

– (24) (23) – –

Security transactions (Note 6)Proceeds from sale of securities 1 8,099 2,029 622 415Reinvestment of distributions – 23 6 – –Amounts paid upon redemption of securities – (968) (100) (440) –

1 7,154 1,935 182 415Net assets attributable to securityholders, end of period $ 1 $ 7,277 $ 1,913 $ 195 $ 426

For the period ended June 30, 2017 (Note 1) Series P4 Series P5Net assets attributable to securityholders, beginning of period $ – $ –Increase (decrease) in net assets attributable to securityholders from operations – –

Distributions to securityholders (Note 5)From net investment income – –From net realized gain – –Management fee reduction – –Return of capital – –

– –

Security transactions (Note 6)Proceeds from sale of securities 1 1Reinvestment of distributions – –Amounts paid upon redemption of securities – –

1 1Net assets attributable to securityholders, end of period $ 1 $ 1



Statements of Cash Flows

Amounts in thousands of Canadian DollarsFor the periods ended June 30, (Note 1) 2017Cash flows from (used in) operating activities:

Purchases of investments $ (176,061)Proceeds from sale and maturity of investments 55,623Cash receipts from dividend income 326Cash receipts from interest income 88Cash receipts from other investment income 777Cash paid for operating expenses (700)

Net cash from (used in) operating activities (119,947)Cash flows from (used in) financing activities:

Distributions to securityholders net of reinvestments (174)Proceeds from sales of securities 132,388Amounts paid upon redemption of securities (10,064)

Net cash from (used in) financing activities 122,150Net change in cash 2,203Foreign exchange gain (loss) on cash (3)Cash, beginning of period –Cash, end of period $ 2,200

15 Annual Report

Notes to Financial StatementsFor the period ended June 30, 2017(Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts))

1. Formation of the Fund

Fidelity Balanced Managed Risk Portfolio (Fund) is an open–end mutual fund trust formed under the laws of Ontario and governed by a Master Declaration of Trust dated October 28, 2016 (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. The registered office of the Fund is located at 483 Bay Street, Suite 300, Toronto, Ontario, M5G 2N7.

The Fund invests primarily in a combination of other Fidelity managed equity, fixed income and money market funds (Underlying Funds).

Currently, Fidelity mutual funds are offered in the following Series: Series A, Series C, Series T5 and Series T8 securities are available to all inves-tors 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 avail-able 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 A, Series B, Series E1, Series E1T5, Series F, Series F5, Series F8, Series O, Series P1, Series P1T5, Series S5, Series S8, Series T5 and Series T8 securities on November 16, 2016 and commenced the offering of Series E2, Series E3, Series E4, Series E5, Series P2, Series P3, Series P4 and Series P5 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.

The Fund commenced operations on November 16, 2016.

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 consis-tently 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.

3. Summary of Significant Accounting Policies

Basis of Measurement – These financial statements have been prepared on the historical cost basis except for investments which are mea-sured 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 finan-cial statements. The principal financial statement components subject to significant accounting estimates and judgments include:

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 spe-cific 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

16Annual Reportport

Notes to Financial Statements – continued(Amounts in thousands of Canadian dollars/thousands of securities (except per security amounts))

in these estimates could impact the fair values of the financial instruments, and the impact could be material. The aggregate fair value of invest-ments measured by valuation techniques as at June 30, 2017, 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.

Determination of Relationship with Underlying Funds – The Fund has made significant judgments when determining the nature of its relationship with an Underlying Fund in accordance with IFRS 10 – Consolidated financial statements (IFRS 10) and IAS 28 – Investment in associates and joint ventures (IAS 28). These judgments centre upon identifying the Fund’s ability to control or significantly influence an Underlying Fund. In both determinations, the Fund looks at the relevant activities of an Underlying Fund such as voting rights, participation in policy choices and material cash flows such as subscription and redemption proceeds. The Fund has determined that it does not have the ability to control nor exercise significant influence on an Underlying Fund due to the Fund’s inability to exercise its voting rights and direct or partici-pate in the financial and operating policy decisions of an Underlying Fund.

Investment Valuation – Investments are designated at their fair value through profit or loss in accordance with IAS 39 and are carried at their fair value.

The Fund categorizes the inputs to valuation techniques used to fair value its investments 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 period. The aggregate value of investments by input level, as at June 30, 2017, 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 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.

Debt securities, including restricted debt securities, are valued based on prices received from independent pricing services or from dealers who make markets in such securities. Pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type, prepayment speed assumptions, attributes of the collateral as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy, but may be categorized as Level 3.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Independent prices obtained from a single source or broker are evaluated by management and may be categorized as Level 3 in the hierarchy.

Fidelity managed Underlying Funds are valued at their closing net asset value per security (NAVPS) each business day and are categorized as Level 1 in the hierarchy. Short-term securities for which quotations are not readily available are valued at amortized cost, which approximates fair value and are categorized as Level 2 in the hierarchy.

17 Annual Report

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.

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.

Other Assets and Liabilities – Other assets and liabilities may include amounts due to or from the custodian, affiliates or other counterpar-ties 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’ entitle-ments 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, 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 and includes coupon interest and accretion of discount and amortization of premium on debt securities using the effective interest rate. This is the rate that exactly discounts the estimated future cash receipts through the expected life of the relevant debt securities, to their net carrying amounts. 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, including Underlying Funds, are recorded as income, capital gains or a return of capital based on the best information avail-able. 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 dol-lars 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 fluctua-tions 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.

Reverse Repurchase Agreements – Uninvested cash balances may be transferred into one or more joint trading accounts where these bal-ances are invested in reverse repurchase transactions. In reverse repurchase transactions, U.S. or Canadian Government securities are purchased from a counterparty who agrees to repurchase the securities at a higher price at a specified future date. The difference in price is reported as interest income. Credit risk arises from the potential for a counterparty to default on its obligation to repurchase the security. The risk is man-aged by the use of counterparties acceptable to Fidelity and by the receipt of the securities as collateral. The value of the collateral must be at least 102% of the daily fair value of the cash invested. Any reverse repurchase agreements open at period end are included in the Schedule of Investments. The following tables summarize the securities pledged to the Fund as collateral:

18Annual Reportport


June 30, 2017 Collateral Description Interest Rate (%) Maturity Date % of Collateral

Collateral Value as a % of CAD Cash

Invested Canada Housing Trust 2.05 6/15/2018 8.5Canadian Treasury Bonds 0.75 – 4.25 6/1/2019 – 12/1/2044 81.3Canadian Treasury Bill n/a 3/8/2018 – 4/5/2018 10.2

100.0 103.8

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” or “Proceeds from sale and maturity of investments”, as applicable. Additionally, in accordance with IFRS, the Fund’s Statements of Cash Flows excludes non-cash transactions from its operating and financing activities.

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 recogni-tion 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 FMR Co., Inc., Fidelity Investments Money Management, Inc. and FIAM LLC, 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 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. To avoid duplication of fees, Series O securities of any Fidelity managed Underlying Fund are not subject to management and advisory fees. The annual management and advisory fee rates for each Series were as follows:

19 Annual Report

Annual Management and Advisory Fee Rate (%)

Series A 1.950Series B 1.800Series F 0.800Series F5 0.800Series F8 0.800Series T5 1.950Series T8 1.950Series S5 1.800Series S8 1.800Series E1 1.775Series E1T5 1.775Series E2 1.750Series E3 1.725Series E4 1.700Series E5 1.650Series P1 0.775Series P1T5 0.775Series P2 0.750Series P3 0.725Series P4 0.700Series P5 0.650

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. To avoid duplication of fees, Series O securities of any Fidelity managed Underlying Fund are not subject to the Administration fee. The admin-istration 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 0.255 0.245 0.235Series B 0.205 0.195 0.185Series F 0.200 0.190 0.180Series F5 0.200 0.190 0.180Series F8 0.200 0.190 0.180Series T5 0.255 0.245 0.235Series T8 0.255 0.245 0.235Series S5 0.205 0.195 0.185Series S8 0.205 0.195 0.185Series E1 0.155 0.145 0.135Series E1T5 0.155 0.145 0.135Series E2 0.105 0.095 0.085Series E3 0.105 0.095 0.085Series E4 0.105 0.095 0.085Series E5 0.105 0.095 0.085Series P1 0.150 0.140 0.130Series P1T5 0.150 0.140 0.130Series P2 0.100 0.090 0.080Series P3 0.100 0.090 0.080Series P4 0.100 0.090 0.080Series P5 0.100 0.090 0.080

20Annual Reportport


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 compen-sated 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 loca-tion 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 $37, of which $1 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 esti-mates are accrued in the period to which they relate and adjustments are made when actual amounts are known. Commissions reimbursed under this arrangement were $3 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 $8. 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 deter-mination 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 con-junction 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 securi-tyholder 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 securi-ties 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

21 Annual Report

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:

Securities Outstanding, Beginning of

Period Issued Reinvested RedeemedSecurities Outstanding,

End of Period

Weighted Average Securities

Period ended June 30, 2017Series A – 1,867 4 (272) 1,599 989Series B – 5,804 12 (1,962) 3,854 2,322Series F – 4,040 11 (985) 3,066 1,907Series F5 – 156 – (105) 51 37Series F8 – 56 – (5) 51 21Series O – 10 – (10) – –Series T5 – 160 1 (26) 135 86Series T8 – 48 – (14) 34 24Series S5 – 141 1 (49) 93 55Series S8 – 34 – (6) 28 19Series E1 – 1,856 7 (230) 1,633 919Series E1T5 – 47 – (5) 42 21Series E2 – 134 – (33) 101 36Series E3 – 152 – (80) 72 99Series E4 – – – – – –Series E5 – – – – – –Series P1 – 795 2 (97) 700 393Series P1T5 – 100 – (5) 95 32Series P2 – 62 – (43) 19 22Series P3 – 41 – – 41 34Series P4 – – – – – –Series P5 – – – – – –

Affiliated Ownership - As at June 30, 2017, Fidelity and its affiliates held less than 1% 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 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, price-earnings 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 while mitigating the Fund’s exposure to market volatility.

The Fund uses a balanced approach. It invests, either directly or indirectly through investments in underlying funds, primarily in a mix of equity and fixed income securities of issuers anywhere in the world. The Fund’s benchmark is a blended index made up of: 20.0% MSCI World Small Cap Index, 20.0% MSCI World ex-Canada Index, 20.0% S&P/TSX Capped Composite Index, 15.0% FTSE TMX Canada Universe Bond Index, 10.0% FTSE TMX Canada Long Term Government Index, 10.0% Bloomberg Barclays U.S. Long Term Treasury Index and 5.0% FTSE TMX Canada Short Term Bond Index.

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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 manage-ment, 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.

Credit risk arising on Canadian debt securities held directly or indirectly, as applicable, is mitigated by investing primarily in rated instruments or instruments issued by rated counterparties with credit ratings of at least “BB” or better as determined by Moody’s Investor Services, Inc. or S&P® at the date of purchase.

Refer to the Quality Diversification 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 credit risk that is relevant for the Fund.

Collateralized reverse repurchase agreements may result in credit exposure in the event that the counterparty to the transaction is unable to ful-fill its contractual obligations. The risk is managed by the receipt of the underlying securities as collateral and use of counterparties whose credit worthiness is considered sufficient based on Fidelity’s independent review.

Other than outlined above, there were no significant concentrations of credit risk to counterparties as at June 30, 2017.

Concentration Risk - The Fund may be exposed to risk based on the concentration levels of its financial instruments in various sectors, geo-graphic regions, asset weightings and market capitalization, as applicable. Fidelity analyzes and monitors these concentration risks regularly. Refer to the Geographic Mix, Sector Mix and Asset 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 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, 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 invest-ment, 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 uncer-tainties about future prices of the instruments.

If the benchmark had increased or decreased by 5% on June 30, 2017, with all other variables held constant, the net assets attributable to securityholders of the Fund would have increased or decreased by approximately $6,318. This change is 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.

Refer to the Maturity Diversification 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 Fund’s exposure to interest-bearing financial instruments at period end categorized by the earlier of contractual interest rate reset or maturity dates.

The fixed income investment strategy adheres to independent quantitative understanding of all benchmark and portfolio risk and return charac-teristics with an explicit understanding of all active exposures relative to the investment benchmark. Interest rate anticipation is not a significant component of the fixed income investment strategy.

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The Fund invests directly and/or indirectly in high yield fixed income securities, which may be more or less sensitive to changes in market inter-est rates, depending upon the securities’ coupon rates, terms to maturity and other factors. However, the volatility associated with these high yield securities is not a result of interest rate risk; in fact, the interest rate risk of these securities tends to be lower than the investment grade bonds, which generally pay lower coupon rates and/or offer lower yields. High yield securities typically are issued by companies that tend to be less creditworthy than investment grade bond issuers. As such, they carry greater default risk than investment grade bonds and accordingly offer higher coupon payments to compensate investors for this additional risk

The Fund’s exposure to interest-bearing financial instruments is such that a 25 basis point fluctuation in the prevailing levels of market interest rates would not subject the Fund to significant amounts of interest rate risk.

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. Management monitors the exposure on all foreign currency denominated assets and liabilities, and enters into forward foreign currency contracts to manage the Fund’s exposure to foreign exchange movements (such as the U.S. dollar, the Euro or the Yen). Generally, the use of forward contracts to hedge currency fluctuations as completely as possible will not result in the impact of cur-rency fluctuations being eliminated altogether. Furthermore, during times of extreme market stress or volatility, the Fund may not be able to pre-vent losses from exposure to foreign currencies. As at June 30, 2017, 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.

8. Investment in Structured Entities

The Fund’s investment in a Fidelity managed Underlying Fund represents an interest in a structured entity. A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements such as those agreements executed by a Fund with its manager and portfolio advisor.

An Underlying Fund is financed through the issuance of its redeemable trust securities. In addition, its purpose is to provide investment manage-ment services to its securityholders by investing its net assets for capital growth and/or investment income.

The Fund does not control nor significantly influence an Underlying Fund, as defined by IFRS 10 and IAS 28, due to the Fund’s inability to exer-cise its voting rights and direct or participate in the financial and operating policy decisions.

The maximum risk of loss in an investment in an Underlying Fund is equal to its fair value and carrying value which is outlined in the tables below and included in “Investments” on the Statements of Financial Position. There is no difference between the maximum risk of loss and the carrying amounts of the assets and liabilities of an Underlying Fund that relate to the Fund’s interests. There are additional risks associated with an investment in an Underlying Fund. Refer to the Financial Instruments Risk note for further discussion.

In the normal course of operations to fulfil its investment objective, the Fund will, from time to time, subscribe for additional securities issued by an Underlying Fund or redeem in whole or in part its investment in an Underlying Fund. However, the Fund does not have any obligation or inten-tion to provide financial support to an Underlying Fund. In addition, the Fund may receive a distribution of income and/or capital gains from an Underlying Fund as described above in the Investment Transactions, Income Recognition and Transaction Costs note.

The following tables present additional information that is relevant to the Fund’s investment in structured entities.

June 30, 2017Total Net Assets

($)Fair Value of Investment ($)

Fidelity American High Yield Currency Neutral Fund 472,675 3,701Fidelity Canadian Bond Fund 10,870,379 15,301Fidelity Canadian Real Return Bond Index Investment Trust 808,888 3,769Fidelity Canadian Short Term Bond Fund 1,031,330 6,363Fidelity Global Intrinsic Value Investment Trust 1,786,082 29,279Fidelity Global Natural Resources Fund 113,366 2,318

Underlying Fund names presented in the tables reflect names in effect as at the dates shown.

The Fund also invests in ETFs which may be considered structured entities. As of June 30, 2017, the carrying value and maximum exposure to losses of such ETF holdings included in the Statements of Financial Position is $4,885. The change in fair value of these ETF holdings is included in the Statements of Comprehensive Income in “Change in net unrealized appreciation (depreciation) on investments.” The ownership percent-age of any ETF was less than 1%.

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Management Report and Independent Auditor’s Report

Management Responsibility for Financial ReportingTo the Securityholders and Trustee of Fidelity Balanced Managed Risk Portfolio (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 gener-ally 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 ReportTo the Securityholders and Trustee of Fidelity Balanced Managed Risk Portfolio (Fund)

We have audited the accompanying financial statements of the Fund, which comprise the statement of financial position as at June 30, 2017 and the statements of comprehensive income, changes in net assets attributable to securityholders and cash flows for the period from October 28, 2016 (inception date) to June 30, 2017, 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 audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit 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 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 its finan-cial performance and its cash flows for the period from October 28, 2016 to June 30, 2017 in accordance with International Financial Reporting Standards.

PricewaterhouseCoopers LLP

Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario September 7, 2017

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27 Annual Report

Fidelity Investments Canada ULC483 Bay Street, Suite 300Toronto, Ontario M5G 2N7

Manager, Transfer Agent and RegistrarFidelity Investments Canada ULC483 Bay Street, Suite 300Toronto, Ontario M5G 2N7

Portfolio AdviserFidelity Investments Canada ULCToronto, Ontario

CustodianState Street Trust Company of CanadaToronto, Ontario

AuditorPricewaterhouseCoopers LLPToronto, Ontario

Visit us online atwww.fidelity.caor call Fidelity Client Servicesat 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.62.881654E 1.9881654.100

FICL-LB-ANN-0917

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