Fidelity Income Replacement™ 2035 Portfolio

Investment Strategy

Fidelity Income Replacement Portfolios™ are designed to convert retirement savings into a reliable stream of monthly cash flow payments for a defined period of time. Eleven different portfolios-each comprising ten underlying Fidelity funds-have payout horizons from ten to 30 years. They represent the next phase of lifecycle investing, combining Fidelity's proprietary asset allocation "rolldown" approach with a fully managed withdrawal strategy.

Performance

Annual compound performance – as at 31-Aug-2010

  Fund Morningstar
Quartile*		 Benchmark
1 month 0.83% — 1.16%
3 month 1.73% — 2.76%
6 month 2.02% — 3.51%
1 year 8.14% — 10.60%
2 year 0.69% — 1.99%
3 year — — —
5 year — — —
7 year — — —
10 year — — —
YTD 2.38% — 4.17%
Since Inception 0.42% — —

Calendar year performance – as at 31-Aug-2010

Growth of $10,000 since inception – as at 31-Aug-2010

Volatility meter

The volatility meter uses methodology recommended by the Fund Risk Classification Task Force of the Investment Funds Institute of Canada. The Task Force prescribes risk assessment based on historical volatility risk as measured by the standard deviation of fund performance. The Task Force also acknowledges that other types of measurable and nonmeasurable risk may exist. The Task Force reminds investors that historical performance may not be indicative of future returns and a fund’s historical volatility may not be indicative of future volatility.

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Fund facts

NAVPU – Series B

$13.14 – as at 10-Sep-2010

Fund inception date

07-Jan-2008

Fund benchmark

Blended Index**

Fund aggregate assets (all available series)

$0.4 million
as at 31-Jul-2010

Management expense ratio - Series B

2.22% – as at 31-Dec-2009

Approximate target allocation
as at 31-Jul-2010
Canadian Equity Funds 47.6%
Fidelity Dividend Fund 19.0%
Fidelity True North Fund 11.9%
Fidelity Canadian Discipline Equity Fund 11.9%
Fidelity Canadian Opportunities Fund 4.8%
High Yield Bond Funds 5.8%
Fidelity American High Yield Currency Neutral Fund 5.8%
International Equity Funds 10.2%
Fidelity Global Disciplined Equity Fund 10.2%
Investment Grade Bond Funds 27.0%
Fidelity Global Bond Currency Neutral Fund 16.2%
Fidelity Canadian Bond Fund 10.8%
Short-Term Investment Funds 9.4%
Fidelity Canadian Short Term Bond Fund 4.9%
Fidelity Canadian Money Market Fund 4.9%
Net other assets -0.4%
Footnotes and disclosures

* ©2010 Morningstar Research Inc. All rights reserved. For greater detail see www.morningstar.ca. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any changes or losses arising from any use of this information.

**The blended index for Fidelity Income Replacement 2035 Portfolio is approximately 23.9% S&P/TSX Capped Composite Index, 4.8% S&P/TSX Completion Index, 19.1% Dividend Blend index, 10.5% MSCI All Country World Index, 10.7% DEX Universe Bond Index, 16.0% Lehman Brothers Global Aggregate Bond Index - Hedged CAD, 5.7% Merrill Lynch U.S. High Yield Master II Constrained Index - Hedged CAD, 4.7% DEX Short Term Bond Index, and 4.7% DEX 91-day T-Bill.

 The indicated rates of return are the historical annual compounded total returns including changes in unit value and the reinvestment of all distributions and do not take into account sales, redemption, distribution, optional charges, or income taxes payable by any securityholder that would have reduced returns.

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