Fidelity Global Bond Currency Neutral Fund

Investment Strategy

Fidelity Global Bond Currency Neutral Fund aims to hedge foreign currency exposure back to Canadian dollars, thus providing the benefit of global developed markets while reducing currency risk.

Currency Neutral Funds use derivatives to mitigate the Fund's exposure to changes in exchange rates between developed market currencies and the Canadian dollar. The investment approach used by the Funds, while effective in reducing exchange rate risk, will not completely eliminate the impact of currency fluctuations. The Fund's returns will differ from the local currency returns of its underlying fund.

Performance

Annual compound performance – as at 31-Jul-2010

  Fund Morningstar
Quartile*		 Benchmark
1 month 1.27% 1 0.81%
3 month 2.24% 4 2.55%
6 month 3.40% 1 3.82%
1 year 8.24% 1 7.14%
2 year 5.32% 3 7.32%
3 year 4.11% 4 6.47%
5 year — — —
7 year — — —
10 year — — —
YTD 4.67% 1 4.89%
Since Inception 3.73% — —

Calendar year performance – as at 31-Jul-2010

Growth of $10,000 since inception – as at 30-Jun-2010

Fund risk measures – as at 31-Jul-2010
  Fund Benchmark
Annual Standard Deviation 4.16 3.00
Beta 1.03 —
R² 0.55 —

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-Jul-2010
  Duration (Option Adjusted)
Fund 1.34 yrs

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Fund facts

NAVPU – Series B

$10.66 – as at 03-Sep-2010

Fund inception date

18-Apr-2007

Fund benchmark

Barclays Capital Global Aggregate Bond Index

Fund aggregate assets (all available series)

$128.8 million
as at 31-Jul-2010

Management expense ratio - Series B

1.56% – as at 31-Mar-2010

Quarterly Top Five Issuers
Government of Japan  
United States Treasury  
Republic of France  
Eksportfinans  
Federal Republic of Germany  
Total number of holdings 284
Aggregate of top issuers 32.7%
Allocation

Asset mix

Country mix

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 Fund invests its assets in units of Fidelity Global Bond Fund. Holdings information shown on this page is that of Fidelity Global Bond Fund.

 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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