Fidelity Tactical High Income Fund

Fidelity Tactical High Income Fund Annual Report March 31, 2016

Fidelity Tactical High Income Fund Schedule of Investments March 31, 2016 Showing Percentage of Net Assets Attributable to Holders of Redeemable Units (Net Assets) Equities 32.6% Shares Cost Market Value Canada 1.4% CONSUMER STAPLES 1.2% Cott Corp. 157,600 $ 2,281 $ 2,845 ENERGY 0.2% Suncor Energy, Inc. 11,500 417 416 TOTAL CANADA 2,698 3,261 Ireland 0.7% HEALTH CARE 0.7% Allergan PLC 5.50% 1,320 1,810 1,576 Israel 1.0% HEALTH CARE 1.0% Teva Pharmaceutical Industries Ltd. 7% 1,950 2,451 2,239 Marshall Islands 2.1% ENERGY 2.1% Scorpio Tankers, Inc. 633,900 6,554 4,800 Netherlands 0.1% INDUSTRIALS 0.1% PostNL NV 55,700 290 295 Switzerland 0.1% FINANCIALS 0.1% Chubb Ltd. 2,044 326 316 United Kingdom 0.3% ENERGY 0.1% Ensco PLC Class A 17,320 515 233 HEALTH CARE 0.2% GlaxoSmithKline PLC 12,300 336 323 TOTAL UNITED KINGDOM 851 556 United States of America 26.9% CONSUMER DISCRETIONARY 0.5% General Motors Co. 9,100 359 371 Stage Stores, Inc. 30,100 556 315 Target Corp. 3,690 312 394 TOTAL CONSUMER DISCRETIONARY 1,227 1,080 CONSUMER STAPLES 2.4% B&G Foods, Inc. Class A 108,200 5,071 4,892 Procter & Gamble Co. 3,100 308 331 The Coca Cola Co. 5,600 275 337 TOTAL CONSUMER STAPLES 5,654 5,560 ENERGY 0.8% Chevron Corp. 3,090 378 383 Kinder Morgan, Inc. Series A 9.75% 16,500 1,033 966 The Williams Companies, Inc. 21,600 803 451 TOTAL ENERGY 2,214 1,800 FINANCIALS 5.8% Ares Capital Corp. 17,390 338 335 Shares Cost Market Value First Niagara Financial Group, Inc. 26,900 $ 320 $ 338 GMAC Capital Trust I Series 2, 8.125% 112,205 3,680 3,572 Regions Financial Corp. 28,300 343 289 State Street Corp. 4,180 354 318 Wells Fargo & Co. 7.50% 2,830 4,606 4,429 Weyerhaeuser Co. Series A, 6.375% 57,900 3,591 3,844 TOTAL FINANCIALS 13,232 13,125 HEALTH CARE 3.1% AbbVie, Inc. 3,800 289 282 Anthem, Inc. 5.25% 29,000 1,788 1,759 Johnson & Johnson 35,600 4,677 5,003 TOTAL HEALTH CARE 6,754 7,044 INDUSTRIALS 0.3% Emerson Electric Co. 5,400 344 381 United Parcel Service, Inc. Class B 2,800 358 384 TOTAL INDUSTRIALS 702 765 INFORMATION TECHNOLOGY 7.2% Apple, Inc. 50,235 7,118 7,112 Cisco Systems, Inc. 10,090 310 373 First Data Corp. Class A 21,800 300 366 IBM Corp. 23,865 4,524 4,694 Paychex, Inc. 5,660 311 397 Yahoo!, Inc. 72,600 3,149 3,471 TOTAL INFORMATION TECHNOLOGY 15,712 16,413 MATERIALS 0.7% Alcoa, Inc. Series 1, 5.375% 36,200 1,550 1,551 TELECOMMUNICATION SERVICES 2.2% AT&T, Inc. 89,000 4,037 4,528 Verizon Communications, Inc. 5,210 297 366 TOTAL TELECOMMUNICATION SERVICES 4,334 4,894 UTILITIES 3.9% CenterPoint Energy, Inc. 2.00% ZENS 68,300 5,780 5,599 Dynegy, Inc. 5.375% 37,200 2,174 2,585 Exelon Corp. 8,100 329 377 Southern Co. 5,400 309 363 TOTAL UTILITIES 8,592 8,924 TOTAL UNITED STATES OF AMERICA 59,971 61,156 TOTAL EQUITIES 74,951 74,199 See accompanying notes which are an integral part of the financial statements. Annual Reportport 2

Bonds 59.8% Principal Amount Cost Market Value Domestic Bonds 2.4% Air Canada 7.75% 4/15/21 2,750 USD $ 3,794 $ 3,518 BlackBerry Ltd. 6% 11/13/20 (Reg. S) 990 USD 1,390 1,375 Garda World Security Corp. 7.25% 11/15/21 635 USD 599 635 TOTAL DOMESTIC BONDS 5,783 5,528 Foreign Bonds 57.4% 21st Century Fox America, Inc. 7.75% 12/1/45 75 USD 124 129 ADT Corp. 6.25% 10/15/21 3,815 USD 5,078 4,980 Albertson s LLC Tranche B 3LN, term loan 5.125% 8/25/19 (a) 2,359 USD 3,159 3,060 Altice SA 7.75% 5/15/22 2,590 USD 3,300 3,310 AMAG Pharmaceuticals, Inc. 7.875% 9/1/23 1,210 USD 1,421 1,387 Antero Resources Finance Corp. 5.375% 11/1/21 950 USD 1,130 1,141 APX Group, Inc. 6.375% 12/1/19 2,825 USD 3,490 3,680 Ardagh Finance Holdings SA 8.625% 6/15/19 pay in kind (a) 1,338 USD 1,656 1,633 Argentine Republic 7% 4/17/17 2,360 USD 2,956 3,093 Argos Merger Sub, Inc. 7.125% 3/15/23 1,435 USD 1,865 1,981 Avis Budget Car Rental LLC/ Avis Budget Finance, Inc. 6.375% 4/1/24 1,810 USD 2,427 2,353 Blue Coat Systems, Inc. 8.375% 6/1/23 860 USD 1,166 1,151 Brazilian Federative Republic: 4.25% 1/7/25 2,450 USD 2,889 2,919 5% 1/27/45 1,300 USD 1,292 1,351 Charter Communications Operating LLC/Charter Communications Operating Capital Corp.: 4.464% 7/23/22 9 USD 11 12 4.908% 7/23/25 25 USD 33 34 6.484% 10/23/45 12 USD 15 17 Chesapeake Energy Corp. 6.125% 2/15/21 225 USD 262 113 Chicago Gen. Oblig. 6.314% 1/1/44 40 USD 48 47 Coinmach Service Corp. Tranche B, term loan 4.25% 11/14/19 (a) 1,332 USD 1,754 1,683 Constellation Brands, Inc. 4.25% 5/1/23 225 USD 265 299 Corestates Capital III 1.1872% 2/15/27 (a) 1,895 USD 2,220 1,981 See accompanying notes which are an integral part of the financial statements. Principal Amount Cost Market Value DCP Midstream LLC 5.35% 3/15/20 150 USD $ 187 $ 168 Dolphin Subsidiary II, Inc. 7.25% 10/15/21 225 USD 276 304 Dynegy, Inc.: 7.375% 11/1/22 2,250 USD 2,772 2,703 7.625% 11/1/24 765 USD 935 902 Ensco PLC: 5.2% 3/15/25 4 USD 5 3 5.75% 10/1/44 4 USD 5 3 Equity One, Inc. 3.75% 11/15/22 200 USD 228 261 FirstEnergy Corp. 7.375% 11/15/31 200 USD 274 320 GE Capital Commercial Mortgage Corp. sequential payer Series 2007 C1 Class A4, 5.543% 12/10/49 293 USD 348 386 Goldman Sachs Group, Inc.: 5.15% 5/22/45 50 USD 66 66 6.75% 10/1/37 150 USD 197 232 Greenwich Capital Commercial Funding Corp. Series 2006 GG7 Class A4, 5.8773% 7/10/38 (a) 46 USD 54 60 HCA Holdings, Inc.: 3.75% 3/15/19 17 USD 21 23 4.25% 10/15/19 1,245 USD 1,558 1,666 6.5% 2/15/20 35 USD 49 50 Hertz Corp. 6.25% 10/15/22 1,075 USD 1,449 1,396 Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.625% 10/15/21 2,040 USD 2,898 2,745 ILFC E Capital Trust I 4.24% 12/21/65 (a) 3,855 USD 4,719 4,055 Illinois Gen. Oblig.: Series 2003, 5.1% 6/1/33 75 USD 84 91 Series 2011, 5.877% 3/1/19 5 USD 6 7 JBS U.S.A. LLC/JBS U.S.A. Finance, Inc. 5.75% 6/15/25 2,000 USD 2,467 2,273 JC Penney Corp., Inc. 8.125% 10/1/19 2,650 USD 3,509 3,536 JLL/Delta Dutch Newco BV 7.5% 2/1/22 1,225 USD 1,609 1,583 JPMorgan Chase Capital XIII 1.5786% 9/30/34 (a) 2,415 USD 2,682 2,470 JPMorgan Mortgage Trust Series 2005 A3 Class 6A3, 2.6322% 6/25/35 (a) 247 USD 258 302 Landry s Holdings II, Inc. 10.25% 1/1/18 2,715 USD 3,458 3,508 3 Annual Report

Fidelity Tactical High Income Fund Schedule of Investments continued Bonds continued Principal Amount Cost Market Value Foreign Bonds continued Laureate Education, Inc. Tranche B, term loan 5% 6/16/18 (a) 1,743 USD $ 1,895 $ 1,947 Lazard Group LLC 4.25% 11/14/20 50 USD 56 68 Liberty Media Corp. 3.5% 1/15/31 4,080 USD 2,724 2,807 Liberty Property LP 4.75% 10/1/20 105 USD 129 147 Merrill Lynch Mortgage Investors Trust Series 2004 A4 Class A3, 2.4608% 8/25/34 (a) 223 USD 243 285 MHGE Parent LLC/MHGE Parent Finance, Inc. 8.5% 8/1/19 pay in kind (a) 2,880 USD 3,623 3,722 Micron Technology, Inc. 5.5% 2/1/25 2,310 USD 2,482 2,432 Morgan Stanley: 4.875% 11/1/22 150 USD 173 212 5% 11/24/25 50 USD 70 70 Neptune Finco Corp. 10.125% 1/15/23 2,285 USD 3,125 3,175 Omega Healthcare Investors, Inc. 4.5% 4/1/27 91 USD 117 113 Petrobras International Finance Co. Ltd. 5.75% 1/20/20 90 USD 103 102 Petroleos Mexicanos: 3.5% 7/23/20 5 USD 6 6 4.5% 1/23/26 23 USD 28 28 5.5% 6/27/44 105 USD 120 113 5.625% 1/23/46 3,087 USD 3,318 3,369 PetSmart, Inc. Tranche B, term loan 4.25% 3/11/22 (a) 2,006 USD 2,744 2,593 Reynolds Group Issuer, Inc./ Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA 8.5% 5/15/18 (a) 2,685 USD 3,617 3,487 Royal Bank of Scotland Group PLC 6% 12/19/23 200 USD 245 263 Sabine Pass Liquefaction LLC 5.625% 3/1/25 2,440 USD 3,026 3,022 Sprint Communications, Inc.: 7% 3/1/20 140 USD 177 182 7% 3/1/20 (Reg. S) 60 USD 72 78 SunTrust Capital III 1.2839% 3/15/28 (a) 2,735 USD 3,024 2,708 T Mobile U.S.A., Inc. 6.5% 1/15/24 2,265 USD 3,061 3,059 Tenet Healthcare Corp. 5% 3/1/19 2,565 USD 3,345 3,294 The Williams Companies, Inc. 5.75% 6/24/44 80 USD 69 69 Time Warner Cable, Inc.: 5.875% 11/15/40 659 USD 835 886 Principal Amount Cost Market Value 6.55% 5/1/37 687 USD $ 925 $ 980 TiVo, Inc. 2% 10/1/21 1,000 USD 1,230 1,209 Tops Holding LLC/Tops Markets II Corp. 8% 6/15/22 3,045 USD 3,990 3,658 TransDigm, Inc. 6.5% 5/15/25 885 USD 1,155 1,124 Twitter, Inc. 1% 9/15/21 3,515 USD 4,002 3,823 U.S. Treasury Bonds: 2.5% 2/15/46 2,400 USD 3,080 3,040 3% 5/15/45 100 USD 123 140 3% 11/15/45 179 USD 254 251 U.S. Treasury Inflation Indexed Bonds 1.375% 2/15/44 46 USD 58 67 U.S. Treasury Inflation Indexed Notes: 0.125% 7/15/24 100 USD 116 130 0.25% 1/15/25 50 USD 62 66 U.S. Treasury Notes: 0.875% 8/15/17 1,100 USD 1,202 1,432 0.875% 10/15/17 150 USD 170 195 1% 5/15/18 1,239 USD 1,501 1,617 1.125% 1/15/19 127 USD 171 166 1.625% 6/30/20 250 USD 324 331 1.75% 12/31/20 416 USD 599 554 2% 8/15/25 150 USD 193 199 Vector Group Ltd. 7.75% 2/15/21 2,005 USD 2,703 2,734 VeriSign, Inc. 5.25% 4/1/25 1,165 USD 1,557 1,524 Verizon Communications, Inc.: 5.012% 8/21/54 84 USD 91 109 6.55% 9/15/43 131 USD 191 224 Wachovia Bank Commercial Mortgage Trust sequential payer Series 2007 C33 Class A4, 5.9535% 2/15/51 (a) 94 USD 111 125 Western Refining Logistics LP/WNRL Finance Co. 7.5% 2/15/23 2,440 USD 3,215 2,820 Williams Partners LP 3.35% 8/15/22 150 USD 163 159 TOTAL FOREIGN BONDS 132,288 130,381 TOTAL BONDS 138,071 135,909 Preferred Securities 6.6% United States of America 6.6% FINANCIALS 5.0% BAC Capital Trust XIV 4% (a)(b) 1,220 USD 1,300 1,157 Goldman Sachs Capital II 4% (a)(b) 1,547 USD 1,480 1,445 See accompanying notes which are an integral part of the financial statements. Annual Reportport 4

Preferred Securities continued Principal Amount Cost Market Value United States of America continued FINANCIALS continued JPMorgan Chase & Co.: 6.75% (a)(b) 1,200 USD $ 1,673 $ 1,729 7.9% (a)(b) 1,635 USD 2,291 2,198 USB Capital IX 3.5% (a)(b) 1,820 USD 1,801 1,767 Wells Fargo & Co. 7.98% (a)(b) 2,325 USD 3,314 3,136 11,859 11,432 INDUSTRIALS 1.6% General Electric Co. 5% (a)(b) 2,628 USD 3,746 3,551 TOTAL UNITED STATES OF AMERICA 15,605 14,983 TOTAL PREFERRED SECURITIES 15,605 14,983 Short-Term Investments 0.1% Canada 0.1% Investments in reverse repurchase agreements in a joint trading account at 0.46%, dated 3/31/16 due 4/1/16 (Collateralized by Canadian Government Obligations) # 238 238 238 TOTAL INVESTMENT PORTFOLIO 99.1% $228,865 225,329 NET OTHER ASSETS (LIABILITIES) 0.9% 1,972 NET ASSETS 100% $227,301 Currency Abbreviations USD U.S. dollar Presentation Notes Cost amount includes broker commissions and other trading expenses, if any. Principal Amount is stated in Canadian dollars unless otherwise noted. Legend (a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. (b) Security is perpetual in nature with no stated maturity date. Investment Valuation The following is a summary of the inputs used, as of March 31, 2016 and March 31, 2015, 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 March 31, 2016: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: See accompanying notes which are an integral part of the financial statements. 5 Annual Report

Fidelity Tactical High Income Fund Schedule of Investments continued Valuation Inputs at March 31, 2016: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Consumer Discretionary $ 1,080 $ 1,080 $ $ Consumer Staples 8,405 8,405 Energy 7,249 7,249 Financials 13,441 13,441 Health Care 11,182 10,859 323 Industrials 1,060 1,060 Information Technology 16,413 16,413 Materials 1,551 1,551 Telecommunication Services 4,894 4,894 Utilities 8,924 3,325 5,599 Bonds 135,909 135,909 Preferred Securities 14,983 14,983 Short-Term Investments 238 238 Total Investments in Securities: $225,329 $68,277 $157,052 $ Valuation Inputs at March 31, 2015: Description Total Level 1 Level 2 Level 3 (Amounts in thousands) Investments in Securities: Equities: Consumer Discretionary $ 15,657 $15,337 $ 320 $ Consumer Staples 2,938 2,938 Energy 7,978 7,978 Financials 13,489 12,639 850 Health Care 5,274 4,965 309 Industrials 7,508 7,508 Information Technology 20,581 20,581 Materials 1,666 1,666 Telecommunication Services 4,295 4,295 Utilities 5,317 3,002 2,315 Bonds 105,461 105,461 Preferred Securities 920 920 Short-Term Investments 1,904 1,904 Total Investments in Securities: $192,988 $80,909 $112,079 $ Other Information # Additional information on each counterparty to the reverse repurchase agreement is as follows: Reverse Repurchase Agreement / Counterparty Value $238,000 due 4/01/16 at 0.46% Bank of Montreal $ 47 Royal Bank of Canada 47 Scotia Capital, Inc. 82 The Toronto-Dominion Bank 62 $ 238 See accompanying notes which are an integral part of the financial statements. Annual Reportport 6

Financial Statements Statements of Financial Position Amounts in thousands of Canadian Dollars /thousands of units (except per unit amounts) As at March 31, 2016 March 31, 2015 Assets (Note 3) Current assets Investments at fair value through profit or loss $ 225,329 $ 192,988 Cash 1,312 4,396 Receivable for investments sold 3,194 570 Other receivables 1 Accrued interest and dividends receivable 2,331 1,525 Receivable on sale of units 394 1,094 232,561 200,573 Liabilities (Note 3) Current liabilities Payable for investments purchased 4,181 3,595 Payable on redemption of units 652 34 Distributions payable (Note 5) 131 87 Management and advisory fees payable (Note 4) 211 204 Other payables to affiliates (Note 4) 29 30 Other payables and accrued expenses (Notes 4 and 5) 56 24 5,260 3,974 Net assets attributable to holders of redeemable units (Notes 3 and 6) $ 227,301 $ 196,599 Net assets attributable to holders of redeemable units per Series and per unit (Note 6) Series A: ($37,318 / 3,420 units and $37,257 / 3,192 units, respectively) $ 10.9112 $ 11.6730 Series B: ($57,218 / 5,242 units and $66,205 / 5,669 units, respectively) $ 10.9157 $ 11.6792 Series F: ($37,349 / 3,422 units and $49,471 / 4,235 units, respectively) $ 10.9153 $ 11.6818 Series F5: ($2,181 / 103 units and $4,544 / 199 units, respectively) $ 21.1681 $ 22.8112 Series F8: ($1,015 / 51 units and $875 / 39 units, respectively) $ 20.0191 $ 22.2659 Series O: ($63,870 / 5,852 units and $26,038 / 2,229 units, respectively) $ 10.9132 $ 11.6799 Series T5: ($3,120 / 151 units and $3,135 / 139 units, respectively) $ 20.6695 $ 22.5697 Series T8: ($3,574 / 183 units and $3,639 / 165 units, respectively) $ 19.5446 $ 22.0277 Series S5: ($3,518 / 169 units and $4,281 / 189 units, respectively) $ 20.7764 $ 22.6200 See accompanying notes which are an integral part of the financial statements. 7 Annual Report

Financial Statements continued Statements of Financial Position continued Amounts in thousands of Canadian Dollars /thousands of units (except per unit amounts) As at March 31, 2016 March 31, 2015 Series S8: ($2,684 / 137 units and $1,154 / 52 units, respectively) $ 19.6428 $ 22.0743 Series E1: ($8,269 / 844 units and $- / units, respectively) $ 9.8023 $ Series E1T5: ($458 / 23 units and $- / units, respectively) $ 19.5443 $ Series E2: ($563 / 57 units and $- / units, respectively) $ 9.8020 $ Series E3: ($78 / 8 units and $- / units, respectively) $ 9.8023 $ Series E4: ($35 / 4 units and $- / units, respectively) $ 9.8020 $ Series P1: ($4,139 / 456 units and $- / units, respectively) $ 9.0691 $ Series P1T5: ($251 / 14 units and $- / units, respectively) $ 18.0233 $ Series P2: ($1,420 / 157 units and $- / units, respectively) $ 9.0756 $ Series P2T5: ($90 / 5 units and $- / units, respectively) $ 18.0319 $ Series P3: ($1 / units and $- / units, respectively) $ 9.0709 $ Series P4: ($149 / 16 units and $- / units, respectively) $ 9.0708 $ Series P5: ($1 / units and $- / units, respectively) $ 9.0709 $ See accompanying notes which are an integral part of the financial statements. Annual Reportport 8

Statements of Comprehensive Income Amounts in thousands of Canadian Dollars (except per unit amounts) For the period ended March 31, 2016 and for the period May 15, 2014 (inception date) to March 31, 2015 2016 2015 Investment income (Note 3) Interest $ 6,791 $ 1,955 Dividends 5,340 1,453 Net gain (loss) on Investments Net realized gain (loss) on investments 14,976 7,757 Change in net unrealized appreciation (depreciation) on investments (19,975) 16,645 (4,999) 24,402 Net gain (loss) on Foreign Currencies Net realized gain (loss) on foreign currency transactions 882 481 Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies (146) 38 736 519 Total investment income (loss) 7,868 28,329 Operating expenses (Note 4) Management and advisory fees 2,622 1,316 Administration fees 368 192 Independent Review Committee fees Commissions and other portfolio costs 174 81 Sales tax 362 182 Foreign taxes withheld (Note 5) 675 162 Total operating expenses 4,201 1,933 Expenses waived (Note 4) (22) (22) Net operating expenses 4,179 1,911 Net increase (decrease) in net assets attributable to holders of redeemable units from operations $ 3,689 $ 26,418 Other information: Increase (decrease) in net assets attributable to holders of redeemable units from operations per Series (Note 3) Series A $ 558 $ 4,851 Series B $ 1,029 $ 9,032 Series F $ 735 $ 6,584 Series F5 $ 5 $ 503 Series F8 $ 43 $ 91 Series O $ 1,198 $ 3,747 Series T5 $ 24 $ 401 Series T8 $ 64 $ 490 Series S5 $ 61 $ 628 Series S8 $ 25 $ 91 Series E1 $ 83 $ Series E1T5 $ 2 $ Series E2 $ 5 $ Series E3 $ $ Series E4 $ 1 $ Series P1 $ (110) $ Series P1T5 $ (11) $ Series P2 $ (18) $ Series P2T5 $ (5) $ Series P3 $ $ Series P4 $ $ See accompanying notes which are an integral part of the financial statements. 9 Annual Report

Financial Statements continued Statements of Comprehensive Income continued Amounts in thousands of Canadian Dollars (except per unit amounts) For the period ended March 31, 2016 and for the period May 15, 2014 (inception date) to March 31, 2015 2016 2015 Series P5 $ $ Increase (decrease) in net assets attributable to holders of redeemable units from operations per Series per unit (Note 3) Series A $.1563 $ 2.3105 Series B $.1688 $ 2.2111 Series F $.1970 $ 2.1736 Series F5 $.0232 $ 4.8922 Series F8 $.8066 $ 4.2672 Series O $.3520 $ 2.3755 Series T5 $.1646 $ 4.6753 Series T8 $.3424 $ 4.5382 Series S5 $.3489 $ 4.1458 Series S8 $.2554 $ 3.4638 Series E1 $.1107 $ Series E1T5 $.1863 $ Series E2 $.1176 $ Series E3 $.0933 $ Series E4 $.0088 $ Series P1 $ (.3005) $ Series P1T5 $ (.8582) $ Series P2 $ (.1988) $ Series P2T5 $ (1.3980) $ Series P3 $ (.2952) $ Series P4 $.0276 $ Series P5 $ (.2952) $ For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. See accompanying notes which are an integral part of the financial statements. Annual Reportport 10

Statements of Changes in Net Assets Attributable to Holders of Redeemable Units Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 Fund Series A Series B Series F Series F5 Series F8 Net assets attributable to holders of redeemable units, beginning of period $ 196,599 $ 37,257 $ 66,205 $ 49,471 $ 4,544 $ 875 Distributions to holders of redeemable units (Note 5) From net investment income (7,226) (1,067) (1,945) (1,638) (112) (46) From net realized gain (12,936) (2,489) (4,156) (2,299) (193) (85) Return of capital (524) (34) (46) Management fee reduction (36) (10) (25) (1) (20,722) (3,556) (6,111) (3,962) (340) (177) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 162,822 17,923 39,424 26,508 3,491 727 Reinvestment of distributions 17,923 3,151 5,478 3,089 221 101 Amounts paid upon redemption of redeemable units (133,010) (18,015) (48,807) (38,492) (5,740) (554) 47,735 3,059 (3,905) (8,895) (2,028) 274 Increase (decrease) in net assets attributable to holders of redeemable units from operations 3,689 558 1,029 735 5 43 Net increase (decrease) in net assets attributable to holders of redeemable units 30,702 61 (8,987) (12,122) (2,363) 140 Net assets attributable to holders of redeemable units, end of period $ 227,301 $ 37,318 $ 57,218 $ 37,349 $ 2,181 $ 1,015 For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to holders of redeemable units, beginning of period $ 26,038 $ 3,135 $ 3,639 $ 4,281 $ 1,154 Distributions to holders of redeemable units (Note 5) From net investment income (1,953) (80) (101) (110) (58) From net realized gain (2,725) (184) (243) (219) (119) Return of capital (66) (206) (70) (100) (4,678) (330) (550) (399) (277) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 46,818 934 1,542 1,328 2,120 Reinvestment of distributions 4,679 219 272 244 207 Amounts paid upon redemption of redeemable units (10,185) (862) (1,393) (1,997) (545) 41,312 291 421 (425) 1,782 Increase (decrease) in net assets attributable to holders of redeemable units from operations 1,198 24 64 61 25 Net increase (decrease) in net assets attributable to holders of redeemable units 37,832 (15) (65) (763) 1,530 Net assets attributable to holders of redeemable units, end of period $ 63,870 $ 3,120 $ 3,574 $ 3,518 $ 2,684 For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. See accompanying notes which are an integral part of the financial statements. 11 Annual Report

Financial Statements continued Statements of Changes in Net Assets Attributable to Holders of Redeemable Units continued Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 Series E1 Series E1T5 Series E2 Series E3 Series E4 Net assets attributable to holders of redeemable units, beginning of period $ $ $ $ $ Distributions to holders of redeemable units (Note 5) From net investment income (48) (2) (3) (10) Return of capital (1) (48) (3) (3) (10) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 9,856 459 694 78 3,223 Reinvestment of distributions 44 1 3 10 Amounts paid upon redemption of redeemable units (1,666) (1) (136) (3,189) 8,234 459 561 78 44 Increase (decrease) in net assets attributable to holders of redeemable units from operations 83 2 5 1 Net increase (decrease) in net assets attributable to holders of redeemable units 8,269 458 563 78 35 Net assets attributable to holders of redeemable units, end of period $ 8,269 $ 458 $ 563 $ 78 $ 35 For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 Series P1 Series P1T5 Series P2 Series P2T5 Series P3 Net assets attributable to holders of redeemable units, beginning of period $ $ $ $ $ Distributions to holders of redeemable units (Note 5) From net investment income (38) (2) (11) (1) From net realized gain (186) (6) (32) Return of capital (1) (224) (9) (43) (1) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 5,704 265 1,481 96 1 Reinvestment of distributions 188 6 9 Amounts paid upon redemption of redeemable units (1,419) (9) 4,473 271 1,481 96 1 Increase (decrease) in net assets attributable to holders of redeemable units from operations (110) (11) (18) (5) Net increase (decrease) in net assets attributable to holders of redeemable units 4,139 251 1,420 90 1 Net assets attributable to holders of redeemable units, end of period $ 4,139 $ 251 $ 1,420 $ 90 $ 1 For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. See accompanying notes which are an integral part of the financial statements. Annual Reportport 12

Statements of Changes in Net Assets Attributable to Holders of Redeemable Units continued Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 Series P4 Series P5 Net assets attributable to holders of redeemable units, beginning of period $ $ Distributions to holders of redeemable units (Note 5) From net investment income (1) (1) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 149 1 Reinvestment of distributions 1 150 1 Increase (decrease) in net assets attributable to holders of redeemable units from operations Net increase (decrease) in net assets attributable to holders of redeemable units 149 1 Net assets attributable to holders of redeemable units, end of period $ 149 $ 1 For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. Amounts in thousands of Canadian Dollars For the period May 15, 2014 (inception date) to March 31, 2015 Fund Series A Series B Series F Series F5 Series F8 Net assets attributable to holders of redeemable units, beginning of period $ $ $ $ $ $ Distributions to holders of redeemable units (Note 5) From net investment income (1,843) (199) (445) (603) (45) (9) From net realized gain (1,655) (289) (572) (403) (33) (6) Return of capital (414) (53) (23) Management fee reduction (25) (3) (21) (1) (3,937) (488) (1,020) (1,027) (132) (38) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 234,418 55,915 83,645 48,694 4,521 1,012 Reinvestment of distributions 3,188 430 886 869 105 12 Amounts paid upon redemption of redeemable units (63,488) (23,451) (26,338) (5,649) (453) (202) 174,118 32,894 58,193 43,914 4,173 822 Increase (decrease) in net assets attributable to holders of redeemable unitsfrom operations 26,418 4,851 9,032 6,584 503 91 Net increase (decrease) in net assets attributable to holders of redeemable units 196,599 37,257 66,205 49,471 4,544 875 Net assets attributable to holders of redeemable units, end of period $ 196,599 $ 37,257 $ 66,205 $ 49,471 $ 4,544 $ 875 For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. See accompanying notes which are an integral part of the financial statements. 13 Annual Report

Financial Statements continued Statements of Changes in Net Assets Attributable to Holders of Redeemable Units continued Amounts in thousands of Canadian Dollars For the period May 15, 2014 (inception date) to March 31, 2015 Series O Series T5 Series T8 Series S5 Series S8 Net assets attributable to holders of redeemable units, beginning of period $ $ $ $ $ Distributions to holders of redeemable units (Note 5) From net investment income (467) (16) (20) (33) (6) From net realized gain (256) (25) (28) (39) (4) Return of capital (64) (139) (102) (33) (723) (105) (187) (174) (43) Redeemable unit transactions (Note 6) Proceeds from sale of redeemable units 27,901 3,082 3,674 4,397 1,577 Reinvestment of distributions 723 44 42 67 10 Amounts paid upon redemption of redeemable units (5,610) (287) (380) (637) (481) 23,014 2,839 3,336 3,827 1,106 Increase (decrease) in net assets attributable to holders of redeemable units from operations 3,747 401 490 628 91 Net increase (decrease) in net assets attributable to holders of redeemable units 26,038 3,135 3,639 4,281 1,154 Net assets attributable to holders of redeemable units, end of period $ 26,038 $ 3,135 $ 3,639 $ 4,281 $ 1,154 For certain Series the period shown is from the commencement of sale of units to period end. See Note 1 for the commencement dates for newly offered Series. See accompanying notes which are an integral part of the financial statements. Annual Reportport 14

Statements of Cash Flows Amounts in thousands of Canadian Dollars For the period ended March 31, 2016 and for the period May 15, 2014 (inception date) to March 31, 2015 2016 2015 Cash, beginning of period $ 4,396 $ Cash flows from (used in) operating activities: Purchases of investments (538,870) (371,739) Proceeds from sale and maturity of investments 500,290 206,089 Cash receipts from dividend income 4,717 1,313 Cash receipts from interest income 5,880 1,164 Cash paid for operating expenses (3,459) (1,652) Net cash from (used in) operating activities (31,442) (164,825) Cash flows from (used in) financing activities: Distributions to holders of redeemable units net of reinvestments (2,755) (661) Proceeds from sales of units 163,520 233,323 Amounts paid upon redemption of units (132,392) (63,454) Net cash from (used in) financing activities 28,373 169,208 Net change in cash (3,069) 4,383 Foreign exchange gain (loss) on cash (15) 13 Cash, end of period $ 1,312 $ 4,396 See accompanying notes which are an integral part of the financial statements. 15 Annual Report

Notes to Financial Statements For the periods ended March 31, 2016 and 2015 (Amounts in thousands of Canadian dollars except per unit amounts) 1. Formation of the Fund Fidelity Tactical High Income Fund (Fund) is an open end mutual fund trust formed under the laws of Ontario and governed by a Master Declaration of Trust dated May 15, 2014 (Inception Date), as amended thereafter from time to time. The Fund is authorized to issue an unlimited number of units. Fidelity Investments Canada ULC (Fidelity), as manager and trustee of the Fund, is responsible for the day-to-day operations and provides all general management and administrative services. The investment advisor is responsible for the investment management of the Fund s portfolio. On December 31, 2015, the investment advisor changed from FIAM LLC (formerly Pyramis Global Advisors, LLC) to Fidelity. The registered office of the Fund is located at 483 Bay Street, Suite 300, Toronto, Ontario, M5G 2N7. The Fund offers Series A, Series B, Series F, Series F5, Series F8, Series O, Series T5, Series T8, Series S5, Series S8, Series E1, Series E1T5, Series E2, Series E3, Series E4, Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P4 and Series P5 units. The Fund commenced the offering of Series E1, Series E1T5, Series E2, Series E3 and Series E4 units on February 5, 2016. The Fund commenced the offering of Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P4 and Series P5 units on December 4, 2015. Series A, Series T5 and Series T8 units are available to all investors in a deferred sales charge (DSC) option and will be converted to lower management and advisory fee Series B, Series S5 and Series S8 units, respectively, one year after completion of their redemption schedule. Series T5 and Series T8 units have substantially all the same attributes as the Series A units with the exception that Series T5 and Series T8 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series B, Series S5 and Series S8 units are available to all investors in an initial sales charge (ISC) option. Series S5 and Series S8 units have substantially all the same attributes as the Series B units with the exception that Series S5 and Series S8 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series F, Series F5 and Series F8 units are usually only available to investors who have fee based accounts with dealers who have signed an eligibility agreement with Fidelity. Series F5 and Series F8 units have substantially all the same attributes as the Series F units with the exception that Series F5 and Series F8 units distribute an amount comprised of net income and/or return of capital monthly, if available. Series E1, Series E1T5, Series E2, Series E3 and Series E4 units are available only to investors who initially hold Series B and/or Series S5 units and then become eligible to hold Series E units. Series E1, Series E2, Series E3 and Series E4 units have lower combined management and administration fees than Series B or Series S5 units. Series E1T5 has the same attributes as the other Series E units with the exception that Series E1T5 distributes an amount comprised of net income and/or return of capital monthly, if available. Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P4 and Series P5 units are available only to investors who initially hold Series F and/or Series F5 units and then become eligible to hold certain Series P units. Series P1, Series P1T5, Series P2, Series P2T5, Series P3, Series P4 and Series P5 units have lower combined management and administration fees than Series F and Series F5 units. Series P1T5 and Series P2T5 have the same attributes as the other Series P units with the exception that Series P1T5 and Series P2T5 distribute an amount comprised of net income and/or return of capital monthly, if available. Series O units are only available to selected investors who have been approved by Fidelity and have entered into a Series O Account Agreement with Fidelity. The Fund meets the definition of an investment entity and its purpose is to provide investment management services to its unitholders 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 May 28, 2014. 2. Basis of Preparation Statement of Compliance These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB).The accounting policies set out below have been applied consistently unless otherwise stated. The financial statements were authorized for issue by Fidelity s board of directors on June 7, 2016. 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 measured at fair value in the Statements of Financial Position. Use of Estimates and Judgments Under IFRS, management is required to make certain estimates and judgments at the date of the financial statements. The principal financial statement components subject to significant accounting estimates and judgments include: 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 Annual Reportport 16

specific events. Fair value models use observable data, to the extent practical; however, the manager is required from time to time to make estimates and assumptions that are based on the best information available at that particular time. Changes in these estimates could impact the fair values of the financial instruments, and the impact could be material. The aggregate fair value of investments measured by valuation techniques as at March 31, 2016 and March 31, 2015, is included at the end of the Fund s Schedule of Investments. The Fund invests a significant portion of its assets in below investment grade securities held directly or indirectly, as applicable. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions. 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 units as financial liabilities in accordance with IAS 32 Financial Instruments Presentation (IAS 32). These judgments centre upon the determination that the Fund s redeemable units 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 unitholder). Therefore, the ongoing redemption feature is not the units only contractual obligation. 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 periods. The aggregate value of investments by input level, as at March 31, 2016 and March 31, 2015, 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 securities, 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, Exchange-traded funds (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 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 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. 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. 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. 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 March 31, 2016 and March 31, 2015. 17 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars except per unit amounts) 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 counterparties for accrued income, investment transactions, unit 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 shortterm nature. Classification of redeemable units issued by the Fund In accordance with IAS 32, the Fund s redeemable units 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 unitholder) and, therefore, the ongoing redemption feature is not the units only contractual obligation. In addition, each series of redeemable units are equally subordinated to each other, but have differing features as outlined in the notes below. Therefore, the Fund s redeemable units 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 holders of redeemable units is recorded at the redemption amount. As at March 31, 2016 and March 31, 2015, the Fund s net asset value per Series per unit may differ by less than $0.01 from its net assets attributable to holders of redeemable units per Series per unit 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. However, for presentation purposes, the Schedule of Investments includes broker commissions and other trading expenses. Income from investments is recognized on an accrual basis. 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 are recorded as income, capital gains or a return of capital based on the best information available to the manager. 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. Net realized gains and losses from the sale of investments and change in net unrealized appreciation (depreciation) on investments are calculated with reference to average cost of the related investment securities which exclude transaction costs and may include proceeds received from litigation. Transaction costs, such as brokerage commissions, incurred in the purchase and sale of securities by the Fund are recognized as Commissions and other portfolio costs in the Statements of Comprehensive Income. Foreign taxes are estimated based on the Fund s understanding of the tax rules and actual rates that exist in the foreign markets in which it invests. Investment income is recorded gross of foreign taxes withheld. Foreign Currency Translation Securities and other assets and liabilities denominated in a foreign currency are translated into Canadian dollars at the period-end exchange rates. Purchases and sales of securities, income and expenses denominated in foreign currencies are translated into Canadian dollars at the exchange rate on the date of the respective transaction. The effects of exchange rate fluctuations on investments are included in the Net realized gain (loss) and change in net unrealized appreciation (depreciation) on investments and exchange rate fluctuations on other foreign currency transactions are included in the Net realized gain (loss) on foreign currency transactions and Change in net unrealized appreciation (depreciation) on other net assets in foreign currencies in the Statements of Comprehensive Income. Reverse Repurchase Agreements Uninvested cash balances may be transferred into one or more joint trading accounts where these balances 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 managed 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: March 31, 2016 Collateral Description Interest Rate Maturity Date % of Collateral Collateral Value as a % of CAD Cash Invested Canadian Treasury Bond 0.25% 5.75% 06/01/2016 12/01/2041 100.0% 100.0% 102.1% Annual Reportport 18

March 31, 2015 Collateral Description Interest Rate Maturity Date % of Collateral Collateral Value as a % of CAD Cash Invested Canada Housing Trust 1.47% 03/15/2017 15.1% Canadian Treasury Bond 3.00% 8.00% 06/01/2027 06/01/2041 68.5% Canadian Treasury Bill n/a 05/21/2015 07/02/2015 16.4% 100.0% 102.2% March 31, 2015 Collateral Description Interest Rate Maturity Date % of Collateral Collateral Value as a % of USD Cash Invested U.S Treasury Note 0.08% 4.75% 04/15/2015 08/15/2023 86.2% U.S. Treasury Bond 3.00% 8.13% 05/15/2021 11/15/2044 13.6% U.S Treasury Bill n/a 05/07/2015 02/04/2016 0.2% 100.0% 102.1% Valuation of Series Separate net assets attributable to holders of redeemable units is calculated for each Series of units in the Fund. The net assets attributable to holders of redeemable units 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 holders of redeemable units of each Series, except for items that can be specifically attributed to one or more Series. Per Unit from Operations - The increase (decrease) in net assets attributable to holders of redeemable units resulting from operations per unit in the Statements of Comprehensive Income represent the increase (decrease) in net assets attributable to holders of redeemable units resulting from operations for each Series of the Fund, divided by the weighted average units outstanding for each Series of the Fund during the period as follows: Weighted Average Units Period ended March 31, 2016 Series A 3,573 Series B 6,092 Series F 3,729 Series F5 145 Series F8 55 Series O 3,403 Series T5 143 Series T8 186 Series S5 177 Series S8 92 Series E1 747 Series E1T5 11 Series E2 42 Series E3 7 Series E4 65 Series P1 363 Series P1T5 11 Series P2 87 Series P2T5 4 Series P3 Series P4 6 Series P5 19 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars except per unit amounts) Weighted Average Units Period ended March 31, 2015 Series A 2,099 Series B 4,087 Series F 3,028 Series F5 103 Series F8 21 Series O 1,577 Series T5 86 Series T8 108 Series S5 152 Series S8 26 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 recognition of expected credit losses. It also includes changes in respect of an entity s own credit risk in measuring liabilities elected to be measured at fair value, so that gains caused by the deterioration of an entity s own credit risk on such liabilities are no longer recognised in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1, 2018, however is available for early adoption. In addition, the entity s own credit risk changes can be early applied in isolation without otherwise changing the accounting for financial instruments. The Fund is in the process of assessing the impact of IFRS 9 and has not yet determined when it will adopt the new standard. 4. Expenses and Other Related Party Transactions Management and Advisory Fees Fidelity serves as the manager and investment advisor of the Fund. Fidelity has entered into sub-advisory agreements with Fidelity Investments Money Management, Inc. and FMR Co., Inc., affiliates of Fidelity, to provide investment advice with respect to all or a portion of the investments 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 Holders of Redeemable Units. No management and advisory fees are charged with respect to the Series O units, but investors will be charged a negotiated management fee. The annual management and advisory fee rates for each Series were as follows: Annual Reportport 20

Annual Management and Advisory Fee Rate (%) Series A 1.900 Series B 1.750 Series F 0.750 Series F5 0.750 Series F8 0.750 Series T5 1.900 Series T8 1.900 Series S5 1.750 Series S8 1.750 Series E1 1.725 Series E1T5 1.725 Series E2 1.700 Series E3 1.675 Series E4 1.650 Series P1 0.725 Series P1T5 0.725 Series P2 0.700 Series P2T5 0.700 Series P3 0.650 Series P4 0.650 Series P5 0.600 Administration Fee Fidelity charges the Fund a fixed administration fee in place of certain variable expenses and the provision of key management 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 (IRC), taxes, brokerage commissions and interest charges. The administration fee is in addition to the management and advisory fee. No administration fees are charged with respect to the Series O units. 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 0.235 Series B 0.205 0.195 0.185 Series F 0.205 0.195 0.185 Series F5 0.205 0.195 0.185 Series F8 0.205 0.195 0.185 Series T5 0.255 0.245 0.235 Series T8 0.255 0.245 0.235 Series S5 0.205 0.195 0.185 Series S8 0.205 0.195 0.185 Series E1 0.155 0.145 0.135 Series E1T5 0.155 0.145 0.135 Series E2 0.105 0.095 0.085 Series E3 0.105 0.095 0.085 Series E4 0.105 0.095 0.085 Series P1 0.155 0.145 0.135 Series P1T5 0.155 0.145 0.135 Series P2 0.105 0.095 0.085 Series P2T5 0.105 0.095 0.085 Series P3 0.105 0.095 0.085 Series P4 0.105 0.095 0.085 Series P5 0.105 0.095 0.085 Prior to October 29, 2015, the administration fee was calculated as a fixed annual percentage of the net asset value of each Series as follows: 21 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars except per unit amounts) Tier 1 (%) Tier 2 (%) Tier 3 (%) Series A 0.255 0.245 0.235 Series B 0.205 0.195 0.185 Series F 0.205 0.205 0.205 Series F5 0.205 0.205 0.205 Series F8 0.205 0.205 0.205 Series T5 0.255 0.245 0.235 Series T8 0.255 0.245 0.235 Series S5 0.205 0.195 0.185 Series S8 0.205 0.195 0.185 Independent Review Committee Fees - The IRC, as required under National Instrument 81-107, reviews conflict of interest matters referred to it by the manager and provides recommendations or approves actions, as appropriate, that are in the best interest of the funds. There are currently four members of the IRC who are independent of Fidelity and its affiliates. IRC members are compensated by way of an annual retainer fee and a per meeting attendance fee, as well as reimbursed for expenses associated with IRC duties. These costs are allocated among the individual funds proportionately by assets. No IRC fees are charged with respect to the Series O units. 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 HST liability or refund is calculated using the residency of unitholders and the value of their interests in the Fund as at specific times, rather than the physical location of the Fund. The effective GST/HST rate charged to each Series of the Fund is based on the unitholders 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. Fidelity can terminate the absorption or waiver at any time. The manager of the Fund waived a portion of its administration fee. The expenses absorbed or waived during the periods are disclosed as Expenses waived in the Statements of Comprehensive Income, if applicable. Commissions and Other Portfolio Costs - Commissions and other portfolio costs paid for security transactions during the period were $174 (March 31, 2015: $81), of which $2 (March 31, 2015: $2) were paid to brokerage firms that are affiliates of Fidelity. The Fund may execute certain portfolio trades with brokers who reimbursed a portion of their commissions to the Fund. Commissions reimbursed under this arrangement were $39 (March 31, 2015: $1) 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 $117 (March 31, 2015: $29). Amounts paid for research provided to the Fund by executing brokers are estimates made by Fidelity. Fidelity has established procedures to assist them in making a good faith determination that the Fund received a reasonable benefit considering the value of research goods and services and the amount of brokerage commissions paid. 5. Taxation and Distributions The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada). For tax purposes, the Fund has a December year end. In each tax year, the Fund declares and credits as due and payable sufficient net investment income and net realized capital gains to unitholders 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. The Fund is subject to foreign withholding taxes imposed by certain countries on investment income. Withholding taxes are accrued for in conjunction with the accrual for the related investment income and are included in Foreign taxes withheld on the Statements of Comprehensive Income and Other payables and accrued expenses on the Statements of Financial Position. Distributions are taxable in unitholders 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 units outstanding. For Series F5, Series F8, Series T5, Series T8, Series S5, Series S8, Series E1T5, Series P1T5 and Series P2T5, the Fund will make monthly distributions of an amount that will generally be comprised of a return of capital and/or net investment income, if available. 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. Annual Reportport 22

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 Units 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 units of equal value, with no par value. All units in a series of the Fund rank equally with respect to distributions. A unitholder of the Fund is entitled to one vote for each one dollar in value of units owned. Fractional units are proportionately entitled to these rights. The Fund generally has no restrictions or specific capital requirements on the subscriptions and redemptions of units other than minimum subscription requirements; although, on rare occasions, Fidelity may temporarily suspend unitholders right to redeem units and postpone paying sale proceeds. The relevant movements attributable to unitholders are shown in the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units. In accordance with the objectives and the risk management policies outlined in the Financial Instruments Risk notes, the Fund endeavors to invest the subscriptions received in appropriate investments while maintaining sufficient liquidity to meet redemptions. Such liquidity is managed by investing the majority of assets in investments that can be readily disposed and via the Fund s ability to borrow up to 5% of its net asset value. Unit Transactions - Unit transactions for each Series were as follows: Units Outstanding, Beginning of Period Issued Reinvested Redeemed Units Outstanding, End of Period Period ended March 31, 2016 Series A 3,192 1,534 273 (1,579) 3,420 Series B 5,669 3,376 474 (4,277) 5,242 Series F 4,235 2,270 268 (3,351) 3,422 Series F5 199 153 10 (259) 103 Series F8 39 33 5 (26) 51 Series O 2,229 4,087 407 (871) 5,852 Series T5 139 42 10 (40) 151 Series T8 165 71 13 (66) 183 Series S5 189 60 11 (91) 169 Series S8 52 101 10 (26) 137 Series E1 1,009 4 (169) 844 Series E1T5 23 23 Series E2 71 (14) 57 Series E3 8 8 Series E4 326 1 (323) 4 Series P1 584 20 (148) 456 Series P1T5 14 14 Series P2 156 1 157 Series P2T5 5 5 Series P3 Series P4 16 16 Series P5 Period ended March 31, 2015 Series A 5,452 40 (2,300) 3,192 Series B 8,159 83 (2,573) 5,669 Series F 4,685 81 (531) 4,235 Series F5 216 5 (22) 199 Series F8 48 1 (10) 39 Series O 2,686 68 (525) 2,229 Series T5 151 2 (14) 139 Series T8 182 2 (19) 165 Series S5 216 3 (30) 189 Series S8 76 (24) 52 Affiliated Ownership - As at March 31, 2016 and March 31, 2015, Fidelity and its affiliates held approximately 28% and 13%, respectively, of the Fund. 23 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars except per unit amounts) 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. Risk, as defined by Fidelity, is the mismatch of certain risk factors, such as the market capitalization, beta, common factors such as size, priceearnings ratio, price-to-book ratio and industry exposures, between a portfolio and its benchmark. Such mismatches may result in divergence of returns relative to the benchmark. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1 indicates that the security s price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security s price will be more volatile than the market. For example, if a stock s beta is 1.2, it s theoretically 20% more volatile than the market. Fidelity s objective is to provide consistent value-added return over the benchmark. Unsystematic risk is mitigated primarily through investments in a diverse portfolio of securities across many sectors, styles or regions of the market. Fidelity s qualitative fundamental security selection is also well diversified across many analysts. Rather than relying on a single valuation process or quantitative model that implicitly assumes that past value-added returns of some sectors or styles will persist into the future, Fidelity s analysts select securities based on their own unique valuation processes. The Fund aims to provide income and capital growth. It invests primarily in a mix of income-producing securities which may be located anywhere in the world. Income-producing securities may include, but are not limited to, equity securities, common and preferred shares, convertible securities, investment grade fixed income securities, higher yielding, lower quality fixed income securities, floating rate debt instruments and asset-backed securities and mortgage-backed securities. The Fund can invest in these securities either directly or indirectly through investments in underlying funds. The Fund does not have a specific benchmark. 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 in the case of financial assets are considered, where applicable, in determining the fair value of financial assets and financial liabilities. The Fund may be exposed to indirect credit risk through its investments in any Underlying Fund. The fair value of debt securities includes consideration of the credit worthiness of the debt issuer. In addition, as part of its cash management, the Fund limits its direct exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of investments and other assets represents the maximum credit risk exposure as at March 31, 2016 and March 31, 2015. The following table summarizes the credit risk that is relevant for the Fund based on its investment objective. Quality Diversification % of Fund s Net Assets as at 3/31/16 % of Fund s Net Assets as at 3/31/15 AAA 3.7 2.8 A 3.6 0.4 BBB 7.7 3.7 BB and Below 48.9 46.7 Not Rated 2.5 0.5 Equities 32.6 43.1 Short-Term Investments and Net Other Assets 1.0 2.8 We have used ratings from Moody s Investors Service, Inc. Where Moody s ratings are not available, we have used S&P ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Collateralized reverse repurchase agreements may result in credit exposure in the event that the counterparty to the transaction is unable to fulfill 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 March 31, 2016 and March 31, 2015. Annual Reportport 24

Concentration Risk - Fidelity analyzes credit concentration based on the counterparty, industry and/or geographical location of the financial assets that the Fund holds. The following tables summarize the investment concentration risks that are relevant for the Fund based on its investment objective. Asset Mix % of Fund s Net Assets as at 3/31/16 % of Fund s Net Assets as at 3/31/15 Foreign Bonds 57.4 53.1 Foreign Equities 31.2 41.9 Foreign Preferred Securities 6.6 0.5 Canadian Bonds 2.4 0.5 Canadian Equities 1.4 1.2 Cash and Short-Term Investments 0.7 3.2 Net Other Assets (Liabilities) 0.3 (0.4) Sector Mix % of Fund s Net Assets as at 3/31/16 % of Fund s Net Assets as at 3/31/15 Financials 10.9 7.4 Information Technology 7.2 10.5 Health Care 5.0 2.7 Utilities 3.9 2.7 Consumer Staples 3.6 1.5 Energy 3.2 3.9 Telecommunication Services 2.2 2.2 Industrials 2.0 3.9 Others (Individually Less Than 1%) 1.2 8.8 Foreign Bonds 57.4 53.1 Canadian Bonds 2.4 0.5 Cash and Short-Term Investments 0.7 3.2 Net Other Assets (Liabilities) 0.3 (0.4) Geographic Mix % of Fund s Net Assets as at 3/31/16 % of Fund s Net Assets as at 3/31/15 United States of America 82.9 87.1 Canada 3.8 1.7 Luxembourg 2.3 3.0 Marshall Islands 2.1 1.4 Brazil 1.9 0.0 Mexico 1.6 0.0 Argentina 1.4 0.0 Israel 1.0 0.9 Others (Individually Less Than 1%) 2.0 3.1 Cash and Short-Term Investments 0.7 3.2 Net Other Assets (Liabilities) 0.3 (0.4) Fidelity regularly monitors the relative weights of individual securities, sectors, countries, and also monitors the market capitalization and trading liquidity of each holding. 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 redeemable units. Redeemable units are redeemed on demand at the unitholder s option based on the Fund s net asset value per unit (NAVPU) at the time of redemption. 25 Annual Report

Notes to Financial Statements continued (Amounts in thousands of Canadian dollars except per unit amounts) 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 Fund may, from time to time, invest in securities that are not traded in an active market and may be illiquid. Private and/or restricted securities held, if any, are identified in the Schedule of Investments as at their respective period ends. The liquidity position of the Fund is monitored on a daily basis. As at March 31, 2016 and March 31, 2015, the Fund did not have financial liabilities with maturities greater than 3 months. Other Price Risk - Other price risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk on monetary instruments), whether caused by factors specific to an individual investment, its issuer, or other factors affecting all instruments traded in a market or market segment. All securities present a risk of loss of capital. The Fund moderates this risk 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. The Fund s investments are susceptible to other price risk arising from uncertainties about future prices of the instruments. If the benchmark had increased or decreased by 5% on March 31, 2016 and March 31, 2015, with all other variables held constant, the net assets attributable to holders of redeemable units of the Fund would have increased or decreased by approximately $11,258 (March 31, 2015: $9,649). 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 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 and cash equivalents are invested in short-term investments at market interest rates. The fixed income investment strategy adheres to independent quantitative understanding of all benchmark and portfolio risk and return characteristics 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. The Fund invests directly and/or indirectly in high yield fixed income securities, which may be more or less sensitive to changes in market interest 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 following table summarizes the Fund s investments at period end categorized by the earlier of contractual interest rate reset or maturity dates. Maturity Diversification % of Fund s Net Assets as at 3/31/16 % of Fund s Net Assets as at 3/31/15 Years 0 1 0.1 1.0 1 3 8.3 4.8 3 5 11.0 11.2 Over 5 40.5 37.6 As at March 31, 2016 and March 31, 2015, had prevailing interest rates raised or lowered by 25 basis points, with all other variables remaining constant, net assets attributable to holders of redeemable units would have decreased or increased by approximately $1,278 (March 31, 2015: $1,333). Due to significant exposure to floating rate fixed income securities, changes in prevailing interest rates may affect the Fund s income. As at March 31, 2016 and March 31, 2015, had prevailing interest rates raised or lowered by 25 basis points, with all other variables remaining constant, interest income would have increased or decreased by approximately $84 (March 31, 2015: $53). In practice, the actual interest payments may differ from this sensitivity analysis and the difference could be material. 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. Annual Reportport 26

The tables below indicate the currencies to which the Fund has significant exposure as at period end, on the trading monetary, non-monetary assets and liabilities as well as the underlying principal amount of forward foreign currency contracts. Currency As at March 31, 2016 Monetary Instruments ($) Non- Monetary Instruments ($) Forward FX Contracts ($) Net Exposure ($) As a % of net assets U.S. dollar 138,518 85,302 223,820 98.5 As at March 31, 2015 U.S. dollar 110,167 78,463 188,630 95.9 The Fund is exposed to the risk that the value of financial instruments denominated in other currencies 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. The Fund considers the foreign exchange exposure relating to nonmonetary assets and liabilities to be a component of other price risk, not foreign currency risk. The Schedule of Investments identifies all bonds denominated in foreign currencies. Bonds from other countries are presumed to be denominated in Canadian dollars unless otherwise noted. As at March 31, 2016 and March 31, 2015, had the Canadian dollar strengthened or weakened by 5% in relation to all currencies, with all other variables held constant, net assets attributable to holders of redeemable units would have decreased or increased by approximately $11,222 (March 31, 2015: $9,495). In practice, the actual trading results may differ from this sensitivity analysis and the difference could be material. 27 Annual Report

Management Report and Independent Auditor s Report Management Responsibility for Financial Reporting To the Unitholders and Trustee of Fidelity Tactical High Income Fund (Fund) The accompanying financial statements have been prepared by Fidelity Investments Canada ULC (Fidelity), as manager of the Fund. Fidelity is responsible for the information and representations contained in these financial statements. The Board of Directors of Fidelity is responsible for reviewing and approving the financial statements. Fidelity maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have been prepared in accordance with International Financial Reporting Standards and include certain amounts and disclosures that are based on estimates and judgments. The significant accounting policies, which management believes are appropriate for the Fund, are described in Note 3 to the financial statements. PricewaterhouseCoopers LLP is the external auditor of the Fund. They have audited the financial statements in accordance with Canadian generally accepted auditing standards to enable them to express to the unitholders their opinion on the financial statements. Their report is set out below. Darren Farkas Vice President and Fund Treasurer Fidelity Investments Canada ULC June 7, 2016 Independent Auditor s Report To the Unitholders and Trustee of Fidelity Tactical High Income Fund (Fund) We have audited the accompanying financial statements of the Fund, which comprise the statements of financial position as at March 31, 2016 and 2015 and the statements of comprehensive income, changes in net assets attributable to holders of redeemable units and cash flows for the year ended March 31, 2016 and the period from May 15, 2014 (inception date) to March 31, 2015 and the related notes, which comprise a summary of significant accounting policies and other explanatory information. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2016 and 2015 and its financial performance and its cash flows for the year ended March 31, 2016 and the period from May 15, 2014 to March 31, 2015, in accordance with International Financial Reporting Standards. PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario June 7, 2016 Annual Reportport 28

29 Annual Report

Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Toronto, Ontario M5G 2N7 Manager, Transfer Agent and Registrar Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Toronto, Ontario M5G 2N7 Portfolio Adviser Fidelity Investments Canada ULC Toronto, Ontario Custodian State Street Trust Company of Canada Toronto, Ontario Auditor PricewaterhouseCoopers LLP Toronto, Ontario Visit us online at www.fidelity.ca or call Fidelity Client Services at 1-800-263-4077 Fidelity s mutual funds are sold by registered Investment Professionals. Each Fund has a simplified prospectus, which contains important information on the Fund, including its investment objective, purchase options, and applicable charges. Please obtain a copy of the prospectus, read it carefully, and consult your Investment Professional before investing. As with any investment, there are risks to investing in mutual funds. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investors may experience a gain or loss when they sell their units 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 FMR LLC. 62.860513E 1.9860513.101 FICL-MA-ANN-0616