Fidelity Canadian Bond Fund

Investment Strategy

Fidelity Canadian Bond Fund delivers enhanced return potential through a disciplined investment approach, which seeks to add value primarily through security selection and yield-curve strategies, rather than interest-rate anticipation.

Performance

Annual compound performance – as at 31-Dec-2011

  Fund Morningstar
Quartile*		 Benchmark
1 month 1.66% 1 1.68%
3 month 1.84% 2 2.09%
6 month 6.20% 2 7.32%
1 year 7.81% 2 9.67%
2 year 6.78% 2 8.20%
3 year 6.58% 2 7.26%
5 year 5.04% 2 6.37%
7 year 4.74% 2 6.02%
10 year 5.21% 2 6.46%
YTD 7.81% 2 9.67%
Since Inception 6.69% — 8.35%

Calendar year performance – as at 31-Dec-2011

Growth of $10,000 since inception – as at 31-Jan-2012

Fund risk measures – as at 31-Dec-2011
  Fund Benchmark
Annual Standard Deviation 3.12 3.25
Beta 0.94 —
R² 0.97 —

Risk measures are based on 3-year net returns (series B). (All returns are calculated in Canadian currency.)

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.

Portfolio characteristics – as at 31-Dec-2011
  Duration (Option Adjusted)
Fund 6.79 yrs

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Fund facts

NAVPU – Series B

$14.11 – as at 07-Feb-2012

Fund inception date

01-Feb-1988

Fund benchmark

DEX Universe Bond Index

Fund aggregate assets (all series)

$5.183 billion
as at 31-Jan-2012

Management expense ratio - Series B

1.27% – as at 30-Jun-2011

Quarterly Top Five Issuers
Government of Canada  
Province of Ontario  
Canada Housing Trust No. 1  
Province of Quebec  
Royal Bank of Canada  
Total number of holdings 534
Aggregate of top issuers 39.7%
Allocation to funds

Asset Mix
as at 31-Dec-2011

  Current monthLast monthTwo months ago
Canadian Bonds 90.2%91.3%90.9%
Cash & Other 6.6%5.3%5.5%
Foreign Bonds 3.2%3.4%3.6%

Top historical sector mix (%)
as at 31-Dec-2011

Canadian Corporate Bonds 39.2%38.9%38.8%
Canadian Federal Bonds 23.0%23.5%22.8%
Canadian Provincial Bonds 19.5%20.1%21.2%
Canadian Agency Bonds 6.1%6.3%5.1%
Canadian Municipal Bonds 2.4%2.5%2.2%
Footnotes and disclosures

* ©2011 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.

**Prior to July 1, 2006, the Fund’s benchmark was RBC CM Canadian Bond Market Index.

 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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