Fidelity Canadian Bond Capital Yield Fund

Investment Strategy

This fund aims to provide a return similar to that of a Canadian fixed-income fund managed by Fidelity, less transaction and hedging costs.

It invests primarily in equity securities issued by Canadian corporations and enters into forward-contracts in order to hedge its exposure to the equities and provide the Fund with a return based on the performance of a Canadian fixed income mutual fund managed by Fidelity. It may also invest directly in fixed income securities issued by Canadian and foreign governments or corporations.

Performance

Performance cannot be shown until one year after the Fund's inception.

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-Mar-2012

	Duration (Option Adjusted)
Fund	6.71 yrs

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Fund facts

NAVPU – Series B

$10.20 – as at 18-May-2012

Fund inception date

28-Sep-2011

Fund benchmark

DEX Universe Bond Index

Fund aggregate assets (all series)

$797.4 million
as at 30-Apr-2012

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	530
Aggregate of top issuers	40.2%

Full holdings

Allocation to funds

Asset Mix
as at 31-Mar-2012

	Current month	Last month	Two months ago
Canadian Bonds	90.2%	90.4%	87.1%
Cash & Other	6.7%	6.4%	9.6%
Foreign Bonds	3.1%	3.2%	3.3%

Footnotes and disclosures

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.