Fidelity Global Growth Portfolio

[Pages:28]Fidelity Global Growth Portfolio

Annual Management Report of Fund Performance

June 30, 2021

Caution Regarding Forward-looking Statements

Certain portions of this report, including, but not limited to, "Results of Operations" and "Recent Developments", may contain forward-looking statements about the Fund, including its strategy, risks, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" and similar forward-looking expressions or negative versions thereof.

In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date.

Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events.

It should be stressed that the above-mentioned list of important factors is not exhaustive. You are encouraged to consider these and other factors carefully before making any investment decisions and you are urged to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance.

Annual Management Report of Fund Performance as at June 30, 2021 Fidelity Global Growth Portfolio

This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements for the investment fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling 1-800-263-4077, by writing to us at Fidelity Investments, 483 Bay St. Suite 300, Toronto ON M5G 2N7 or by visiting our website at fidelity.ca or SEDAR at . Securityholders may also contact us using one of these methods to request a copy of the investment fund's proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure relating to the investment fund.

Management Discussion of Fund Performance Investment Objective and Strategies

Investment Objectives: Fidelity Global Growth Portfolio (Fund) aims to achieve a high total investment return. The Fund is geared toward capital growth. It invests primarily in underlying funds. These underlying funds will generally invest in global equity securities and/or fixed-income securities.

Strategies: Fidelity Global Growth Portfolio uses an asset allocation strategy and invests primarily in underlying funds, including other Fidelity Funds and exchange-traded funds (ETFs).

The Fund is managed in accordance with its targeted mix of assets, which includes underlying funds that generally invest in global equity and/or fixed-income securities. The Fund may invest in underlying funds that invest in any kind of equity or fixed-income security. This includes high-yield securities and other lower-quality debt securities. The portfolio managers can determine the asset class to which a fund or security belongs based on its investment characteristics. The portfolio managers may also invest the Fund's assets in underlying funds that invest in other securities that don't fall within these classes. The portfolio managers may change the underlying funds invested in, or the percentage of the Fund's assets invested in a particular underlying fund, at any time.

The Fund's neutral mix is 85% equity securities and 15% fixed-income securities. Depending on market conditions, the portfolio managers may vary the Fund's asset mix by up to +/-15% from the neutral mix if they believe this will produce the best overall return. The Fund may also hold cash.

The Fund may also invest a portion of its assets in securities of ETFs. Underlying Fidelity Funds may invest in securities of other funds, including ETFs.

Risk

The risks associated with investing in this Fund remain as discussed in the prospectus. Any changes to the Fund over the period have not affected the overall level of risk of the Fund. The Fund is suitable for medium-to-long-term investors who want to gain exposure to both global equity and fixed income securities and the convenience of a diversified portfolio in a single product and who can handle the volatility of returns generally associated with equity investments.

Effective April 26, 2021, the Fund's risk rating has changed from "medium" to "low to medium". As part of regularly scheduled reviews, it was determined that the Fund's risk rating should be low to medium. The suitability of the Fund has not changed from what has been disclosed in the prospectus.

Results of Operations:

Fidelity Global Growth Portfolio, Series B, returned 21.0%, after fees and expenses, for the one-year period ending June 30, 2021. The net returns of the other series are similar to those of Series B, except for differences attributable to expense structures. By way of comparison, global equities, as measured by the MSCI World Index, returned 26.4% (in Canadian dollar terms) for the period under review. Global investment-grade bonds, as measured by the Bloomberg Global Aggregate Bond Index, returned -6.7% (in Canadian dollar terms) during the same period.

Market overview:

Continued support from fiscal and monetary policy intervention, in response to economic disruption caused by the COVID-19 pandemic, supported global equity markets. Many governments also announced increased spending, with some reducing corporate taxes and providing direct income support to households and businesses in an attempt to encourage production and consumption. During the second half of the review period, value-oriented and small-cap equities rallied on news of progress with the COVID-19 vaccine rollout, pointing toward economic recovery. Despite concerns about rising inflation, continued reassurance from global central banks about providing liquidity support boosted investor sentiment. European equities gained amid improving sentiment about economic reopening, combined with strong economic data and upbeat corporate earnings. Acceleration of the COVID-19 vaccine rollout and a decline in new COVID-19 cases led to a gradual lifting of restrictions across the region. Asian equities also rose, driven by optimism about a recovery in corporate earnings and rising economic activity. However, toward the end of the period, concerns about a resurgence in COVID-19 cases in some countries raised worries about more restrictions and economic slowdowns.

Global investment-grade bonds declined over the period under review. Bond yields rose in line with rising inflation expectations, a wave of new treasury debt to fund fiscal stimulus spending and a sharp boost in economic growth expectations. Starting at 0.68% in July 2020, the beginning of the review period, the ten-year U.S. Treasury yield reached a 14-month peak of 1.78% in March 2021, before declining to 1.44% at the end of June, signaling an easing of concerns about rising inflation. Eurozone government bond yields also rose. U.K. government bonds suffered as the U.K.'s economic prospects brightened with the swift rollout of COVID-19 vaccines. High-yield bonds outperformed investment-grade bonds.

Factors affecting performance:

The Fund's benchmark returned 23.7% for the period under review. The Fund's benchmark is composed of 30.0% S&P/TSX Capped Composite Index, 55.0% MSCI ACWI (All Country World Index) ex Canada Index, 10.0% Bloomberg Global Aggregate Bond Index and 5.0% FTSE Canada Universe Bond Index.

The Fund underperformed its benchmark after fees and expenses; however, before fees and expenses, it outperformed. The Fund's higher-than-benchmark exposure to emerging market equities and an out-of-benchmark exposure to global small-cap equities contributed to relative returns. In contrast, security selection in, and a lower-than-benchmark exposure to, U.S.

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Fidelity Global Growth Portfolio

Management Discussion of Fund Performance ? continued

equities detracted from relative performance. In fixed income, a lower-than-benchmark exposure to global investment-grade bonds and a lack of exposure to Canadian investment-grade bonds contributed to relative returns, while an out-of-benchmark exposure to long-term U.S. Treasury bonds and U.S. Treasury Inflation-Protected Securities (TIPS) detracted from relative returns.

Portfolio changes:

During the review period, the portfolio managers increased exposure to U.S. equities and global small-cap equities, believing that investment landscape to be relatively more attractive. In contrast, they reduced exposure to international equities, having found what they believed to be attractive investment opportunities elsewhere. With respect to fixed income, they initiated a position in convertible bonds, owing to a relatively more favourable investment landscape for the asset class, in their view, while exposure to global investment-grade bonds and long-term U.S. Treasuries was decreased.

At the end of the review period, the Fund had its highest exposure to global equities, followed by Canadian equities.

The Fund is one of a suite of six multi-asset class portfolios designed to offer investors a diversified investment option in a single product. The Fund's targeted neutral mix is 15% fixed income investments and 85% equity investments. The portfolio managers are responsible for portfolio design, construction and ongoing monitoring and management. The Fund is monitored and actively managed on a daily basis.

Derivatives disclosure:

During the period under review, the Fund entered into equity futures contracts in a manner consistent with its investment objectives and strategies. Canadian, U.S., international and emerging markets equity futures positions were used to execute investment strategies that allowed the Fund to change its exposure to Canadian, U.S., international and emerging-market equities without the need to buy into or sell out of strategic positions. In general, the futures contracts tended to be more liquid and less expensive than purchasing equity securities directly. However, security selection continued to be the primary driver of performance, and these derivatives had no material impact on performance.

Recent Developments

As the trajectory of global rates of COVID-19 infection remains uncertain, and the timeframe and speed of governmental easing of social distancing measures and travel restrictions unclear, it is not possible to predict the further impact of the COVID-19 pandemic on global capital markets.

Portfolio managers Geoff Stein, David Wolf and David Tulk believe the unprecedented fiscal and monetary support and the COVID-19 vaccine rollout, coupled with pent-up savings and demand, are continuing to keep economic growth elevated. As a result, they believe that inflation risk has grown considerably. From a bottom-up perspective, the portfolio managers note that future earnings estimates point to a robust and extended recovery, in their view, and that corporate fundamentals continue to remain firm. The portfolio managers also believe equities are inflated, which reflects economic optimism; therefore, they have moderated the size of their larger-than-benchmark equity allocation. In fixed income, the portfolio managers note that government bonds are increasingly expensive, while credit spreads remain tight, as such they have been selective with their credit exposure. The portfolio managers also note that investor sentiment has balanced. Against this backdrop, the portfolio managers continue to be prudent and to maintain diversification within the Fund.

Effective February 1, 2021, David Tulk was added as co-portfolio manager of the Fund.

Related Party Transactions Manager and Portfolio Adviser

The Fund is managed by Fidelity Investments Canada ULC (Fidelity). Fidelity is part of a broader collection of companies collectively known as Fidelity Investments.

Fidelity provides or arranges for the provision of all general management and administrative services required by the Fund in its day?to?day operations, bookkeeping, record?keeping and other administrative services for the Fund.

Fidelity is the portfolio adviser to the Fund and it provides investment advisory services to the Fund. Fidelity has entered into sub-advisory agreements with a number of entities including Fidelity Management & Research Company LLC and Fidelity Management & Research (Canada) ULC, to provide investment advice with respect to all or a portion of the investments of the Fund. The sub-advisors arrange for acquisition and disposition of portfolio investments, including all necessary brokerage arrangements.

The Fund pays Fidelity a monthly management and advisory fee for their services, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity management and advisory fees of $47,611,000 for the period ended June 30, 2021.

Administration Fee

Fidelity charges the Fund a fixed administration fee in place of certain variable expenses. Fidelity, in turn, pays all of the operating expenses of the Fund, other than certain specified fund costs (e.g. the fees and expenses of the Independent Review Committee, taxes, brokerage commissions and interest charges). The Fund pays an annual rate, which is calculated on a tiered basis, based on the net asset value of each Series, calculated daily and payable monthly. The Fund paid Fidelity administration fees of $4,980,000 for the period ended June 30, 2021.

Brokerage Commissions

The Fund may place a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity, provided it determines that these affiliates' trade execution abilities and costs are comparable to those of non?affiliated, qualified brokerage firms, on an execution?only basis. Commissions paid to brokerage firms that are affiliates of Fidelity Investments were less than $500 for the period ended June 30, 2021. Fidelity receives standing instructions from the IRC in respect of policies and procedures governing best execution of transactions with affiliates, which includes brokers affiliated to Fidelity Investments, at least once per year.

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Financial Highlights

The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the period end of the years shown. This information is derived from the Fund's audited annual and/or unaudited semi-annual financial statements. Please see the front page for information about how you can obtain the Fund's annual or semi-annual financial statements.

Fidelity Global Growth Portfolio Series A

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses)

Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains

Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E,F Management expense ratio before waivers or absorptionsE,F Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

2021

$16.76

.31 (.46) 1.48 2.11 3.44

? ? (.28) ? (.28) $19.94

$381,480 19,162,646

2.52% 2.54% .09% 28.56% $19.9360

2020

$15.89

.27 (.41) .47 .77 1.10

? ? (.09) ? (.09) $16.76

$292,420 17,455,020

2.51% 2.53% .11% 23.20% $16.7606

2019

$15.54

.32 (.38) .35 .29 .58

? (.06) (.12)

? (.18) $15.89

$242,405 15,269,183

2.49% 2.51% .09% 34.62% $15.8939

2018

$14.08

.25 (.37) .32 1.38 1.58

? ? (.13) ? (.13) $15.54

$211,203 13,607,246

2.50% 2.51% .10% 37.47% $15.5373

2017

$12.92

.24 (.34) .51 .81 1.22

? ? (.06) ? (.06) $14.08

$152,086 10,807,239

2.50% 2.51% .10% 27.55% $14.0827

Fidelity Global Growth Portfolio Series B

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E,I Management expense ratio before waivers or absorptions E,I Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

2021

$16.97

.29 (.43) 1.57 2.02 3.45

? ? (.33) ? (.33) $20.18

$1,893,737 93,984,191

2.28% 2.28% .09% 28.56% $20.1787

2020

$16.09

.28 (.37) .48 .70 1.09

? ? (.13) ? (.13) $16.97

$1,103,060 65,081,397

2.27% 2.28% .11% 23.20% $16.9665

2019

$15.73

.32 (.35) .35 .44 .76

? (.07) (.14)

? (.21) $16.09

$775,310 48,244,932

2.27% 2.27% .09% 34.62% $16.0896

2018

$14.25

.25 (.34) .33 1.38 1.62

? ? (.17) ? (.17) $15.73

$537,040 34,182,296

2.28% 2.28% .10% 37.47% $15.7278

2017

$13.08

.24 (.31) .53 .78 1.24

? ? (.09) ? (.09) $14.25

$305,335 21,449,054

2.28% 2.28% .10% 27.55% $14.2553

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Financial Highlights ? continued

Fidelity Global Growth Portfolio Series F

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E,F Management expense ratio before waivers or absorptions E,F Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

Fidelity Global Growth Portfolio Series F5

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E,F Management expense ratio before waivers or absorptions E,F Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

2021

$17.94

.31 (.23) 1.71 2.05 3.84

? ? (.58) ? (.58) $21.33

$506,662 23,768,652

1.16% 1.17% .09% 28.56% $21.3272

2020

$17.01

.29 (.20) .51 .79 1.39

? ? (.34) ? (.34) $17.94

$235,898 13,161,756

1.16% 1.16% .11% 23.20% $17.9372

2019

$16.64

.34 (.19) .37 .48 1.00

? (.13) (.26)

? (.39) $17.01

$143,740 8,502,025

1.15% 1.16% .09% 34.62% $17.0128

2018

$15.08

.27 (.19) .35 1.47 1.90

? ? (.36) ? (.36) $16.64

$91,334 5,468,644

1.17% 1.17% .10% 37.47% $16.6371

2017

$13.84

.24 (.17) .58 .74 1.39

? ? (.25) ? (.25) $15.08

$44,680 2,969,793

1.17% 1.17% .10% 27.55% $15.0826

2021

$19.64

.35 (.24) 1.75 2.40 4.26

? ? (.63) (.93) (1.56) $22.36

$9,654 423,489

1.14% 1.14% .09% 28.56% $22.3558

2020

$19.42

.34 (.22) .59 .71 1.42

? ? (.38) (.81) (1.19) $19.64

$6,083 310,075

1.14% 1.15% .11% 23.20% $19.6430

2019

$19.84

.41 (.22) .45 .29 .93

(.01) (.15) (.31) (.83) (1.30) $19.42

$4,645 239,257

1.14% 1.15% .09% 34.62% $19.4256

2018

$18.79

.29 (.23) .44 1.79 2.29

? ? (.44) (.85) (1.29) $19.84

$3,094 157,086

1.16% 1.16% .10% 37.47% $19.8364

2017

$18.05

.30 (.22) .69 1.19 1.96

? ? (.32) (.86) (1.18) $18.79

$1,219 64,931 1.17% 1.17% .10% 27.55%

$18.7877

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Fidelity Global Growth Portfolio Series F8

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E,F Management expense ratio before waivers or absorptions E,F Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

Fidelity Global Growth Portfolio Series O

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E Management expense ratio before waivers or absorptions E Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

2021

$12.78

.20 (.16) 1.19 1.55 2.78

? ? (.40) (1.06) (1.46) $14.06

$16,179 1,153,525

1.17% 1.17% .09% 28.56% $14.0566

2020

$13.19

.22 (.15) .39 .42 .88

? ? (.25) (1.09) (1.34) $12.78

$6,236 488,826

1.17% 1.17% .11% 23.20% $12.7843

2019

$14.03

.27 (.15) .28 .43 .83

? (.10) (.21) (1.11) (1.42) $13.19

$4,374 331,770

1.15% 1.15% .09% 34.62% $13.1937

2018

$13.80

.22 (.16) .30 1.30 1.66

? ? (.32) (1.14) (1.46) $14.03

$2,744 195,766

1.15% 1.15% .10% 37.47% $14.0304

2017

$13.75

.26 (.16) .55 .51 1.16

? ? (.24) (1.16) (1.40) $13.80

$838 60,808 1.16% 1.16% .10% 27.55%

$13.8011

2021

$19.11

.35 ?

1.65 2.44 4.44

? ? (.87) ? (.87) $22.71

$1 56 .02% .02% .09%

28.56% $22.7127

2020

$18.13

.24 ?

.45 1.16 1.85

? ? (.58) ? (.58) $19.11

$1 54 .02% .02% .11%

23.20% $19.1135

2019

$17.75

.35 ?

.40 .33 1.08

(.01) (.20) (.40)

? (.61) $18.13

$2 105 .01% .01% .09%

34.62% $18.1339

2018

$16.10

.29 ?

.37 1.56 2.22

? ? (.59) ? (.59) $17.75

$2 101 .01% .01% .10%

37.47% $17.7482

2017

$14.78

.27 ?

.58 .93 1.78

? ? (.45) ? (.45) $16.10

$2 97 .01% .01% .10%

27.55% $16.1006

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Financial Highlights ? continued

Fidelity Global Growth Portfolio Series T5

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E,F Management expense ratio before waivers or absorptions E,F Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

Fidelity Global Growth Portfolio Series T8

Periods ended June 30, The Series' Net Assets per Security A Net assets, beginning of period B Increase (decrease) from operations: Total revenue Total expenses (excluding distributions) Realized gains (losses) Unrealized gains (losses) Total increase (decrease) from operationsB Distributions: From net investment income (excluding dividends) From dividends From capital gains Return of capital Total distributionsB,C Net assets, end of periodB Ratios and Supplemental Data Net asset value (000s) D Securities outstandingD Management expense ratio E,F Management expense ratio before waivers or absorptions E,F Trading expense ratioG Portfolio turnover rateH Net asset value per security, end of period

2021

$18.03

.28 (.48) 1.62 2.15 3.57

? ? (.30) (.89) (1.19) $20.49

$1,215 59,299 2.46% 2.47% .09% 28.56%

$20.4946

2020

$17.89

.30 (.44) .54 .32 .72

? ? (.09) (.80) (.89) $18.03

$745 41,346 2.49% 2.51% .11% 23.20%

$18.0319

2019

$18.31

.35 (.44) .41 (.14) .18

? (.07) (.14) (.81) (1.02) $17.89

$836 46,739 2.49% 2.51% .09% 34.62%

$17.8913

2018

$17.38

.32 (.45) .39 1.76 2.02

? ? (.17) (.82) (.99) $18.31

$922 50,310 2.48% 2.50% .10% 37.47%

$18.3111

2017

$16.72

.33 (.43) .61 1.14 1.65

? ? (.08) (.82) (.90) $17.38

$1,035 59,593 2.48% 2.48% .10% 27.55%

$17.3777

2021

$11.62

.19 (.30) 1.03 1.35 2.27

? ? (.19) (1.05) (1.24) $12.69

$3,464 274,871

2.47% 2.49% .09% 28.56% $12.6892

2020

$12.07

.18 (.29) .32 .21 .42

? ? (.07) (1.06) (1.13) $11.62

$2,202 190,008

2.46% 2.48% .11% 23.20% $11.6242

2019

$12.88

.26 (.30) .28 .18 .42

? (.05) (.09) (1.07) (1.21) $12.07

$2,226 184,724

2.47% 2.49% .09% 34.62% $12.0720

2018

$12.70

.25 (.32) .30 1.02 1.25

? ? (.11) (1.09) (1.20) $12.88

$2,150 168,681

2.52% 2.53% .10% 37.47% $12.8837

2017

$12.69

.21 (.33) .48 .84 1.20

? ? (.05) (1.09) (1.14) $12.70

$1,093 86,125 2.54% 2.55% .10% 27.55%

$12.7045

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