Fidelity American High Yield Capital Yield Fund

Investment Strategy

This fund aims to provide a return similar to that of a U.S. high yield 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 U.S. high yielding mutual fund managed by Fidelity. It may also invest directly in fixed income securities issued by U.S. 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.

Allocation to funds

Asset mix

Sector mix

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Fund facts

NAVPU – Series B

$10.62 – as at 18-May-2012

Fund inception date

28-Sep-2011

Fund benchmark

BofA ML U.S. High Yield Master II Constrained Index

Fund aggregate assets (all series)

$164.9 million
as at 30-Apr-2012

Quarterly Top Ten Holdings
CIT Group  
GMAC 8%, 11/01/31  
CIT Group 7%, 5/2/17  
Ford Motor Credit  
International Lease Finance Corp.  
Energy Future Holdings 11.75%, 3/22  
GMAC  
Energy Future Holdings 10%, 1/15/20  
Energy Future Intermediate Holding Co.  
ABI Escrow 10.25%, 10/18  
Nextel Communications 6.875%, 10/13  
First Data 3/18  
Asurion 5/24/18  
Ford Motor Credit 3.875%, 1/15/15  
ILFC 8.625%, 1/15/22  
Total number of holdings 545
Top 10 holdings aggregate 11.3%
Aggregate of top issuers 17.3%
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.

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