Fidelity American High Yield Currency Neutral Fund

Investment Strategy

Fidelity American High Yield Currency Neutral Fund aims to hedge foreign currency exposure back to Canadian dollars, thus providing the benefit of the U.S market while reducing currency risk.

Currency Neutral Funds use derivatives to mitigate the Fund's exposure to changes in exchange rates between the U.S. dollar 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 3.14% 1 3.35%
3 month -0.12% 4 0.90%
6 month 4.59% 2 6.35%
1 year 16.95% 2 23.70%
2 year 8.43% 2 11.18%
3 year 5.83% 2 7.17%
5 year — — —
7 year — — —
10 year — — —
YTD 5.27% 3 8.00%
Since Inception 4.59% — —

Calendar year performance – as at 31-Jul-2010

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

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.

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Fund facts

NAVPU – Series B

$8.61 – as at 01-Sep-2010

Fund inception date

06-Nov-2006

Fund benchmark

Merrill Lynch U.S. High Yield Master II - Hedged CAD

Fund aggregate assets (all available series)

$426.0 million
as at 31-Jul-2010

Management expense ratio - Series B

1.88% – as at 31-Dec-2009

Quarterly Top Ten Holdings
REALOGY CORP 10.5% 4/14 Real Estate Management & Development
FORD MOTOR CRED 7% 4/15/15 Consumer Finance
Sprint Capital, 6.9%, 5/01/19 Diversified Telecom Services
NATIONAL RENAL (DSI) TM B 3/13 Health Care Providers & Services
HCA, 9.25%, 11/15/16 Health Care Providers & Services
Realogy CP, 13.5%, 2LN TM A, 10/17 Real Estate Management & Development
AVAYA INC PIK 10.125% 11/1/15 Communications Equipment
ServiceMaster PK, 10.75%, 7/15 Diversified Consumer Services
GMAC MTN, 7.5%, 12/31/13 Consumer Finance
Freescale Semiconductor, 10.125%, 3/18 Semiconductors & Semiconductor Equipment
Top 10 holdings aggregate 8.8%
Total number of holdings 464
Allocation

Asset mix

Sector 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 American High Yield Fund. Holdings information shown on this page is that of Fidelity American High Yield 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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