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-Dec-2011

  Fund Morningstar
Quartile*		 Benchmark
1 month 1.29% 2 1.60%
3 month 1.38% 1 1.09%
6 month 2.88% 3 4.37%
1 year 4.26% 4 6.33%
2 year 4.27% 3 5.68%
3 year 5.92% 1 5.47%
5 year — — —
7 year — — —
10 year — — —
YTD 4.26% 4 6.33%
Since Inception 3.42% — 5.53%

Calendar year performance – as at 31-Dec-2011

Growth of $10,000 since inception – as at 31-Oct-2011

Fund risk measures – as at 31-Dec-2011
  Fund Benchmark
Annual Standard Deviation 2.96 2.42
Beta 1.03 —
R² 0.70 —

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 5.50 yrs

View other Fidelity funds in this category:

Fund facts

NAVPU – Series B

$10.71 – as at 03-Feb-2012

Fund inception date

18-Apr-2007

Fund benchmark

Barclays Capital Global Aggregate Bond Index

Fund aggregate assets (all series)

$324.1 million
as at 31-Jan-2012

Management expense ratio - Series B

1.57% – as at 30-Sep-2011

Quarterly Top Five Issuers
Federal Republic of Germany  
United States Treasury  
United Kingdom, Great Britain & Northern Ireland  
Government of Japan  
FNMA Guaranteed Mortgage Pass Through Certificate  
Total number of holdings 675
Aggregate of top issuers 64.4%
Allocation to funds

Asset Mix
as at 31-Dec-2011

  Current monthLast monthTwo months ago
Canadian Bonds 4.2%4.2%—
Cash & Other 1.6%3.7%13.2%
Foreign Bonds 94.2%92.1%86.8%

Country mix (%)
as at 31-Dec-2011

United States 42.5%47.6%46.3%
United Kingdom 16.8%19.5%8.2%
Germany 16.1%17.2%8.7%
Japan 9.8%9.0%14.2%
Canada 7.4%1.2%—
Netherlands 1.6%1.0%2.1%
Sweden 1.4%1.4%1.4%
France 1.0%—3.9%
Multi-National ——7.0%
Italy ——3.1%
Spain ——1.8%
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.

‡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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