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-Dec-2011

  Fund Morningstar
Quartile*		 Benchmark
1 month 2.57% 1 2.56%
3 month 4.88% 1 6.09%
6 month -2.08% 4 -0.77%
1 year 2.61% 3 4.50%
2 year 7.09% 2 9.54%
3 year 17.83% 1 23.18%
5 year 4.72% 2 6.30%
7 year — — —
10 year — — —
YTD 2.61% 3 4.50%
Since Inception 5.04% — 6.55%

Calendar year performance – as at 31-Dec-2011

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

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

$8.85 – as at 03-Feb-2012

Fund inception date

06-Nov-2006

Fund benchmark

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

Fund aggregate assets (all series)

$494.3 million
as at 31-Jan-2012

Management expense ratio - Series B

1.94% – as at 30-Jun-2011

Quarterly Top Ten Holdings
CIT Group  
CIT Group 7%, 5/2/17  
International Lease Finance Corp.  
HCA HLDGS INC 7.75% 5/15/21  
NEXTEL COMM 6.875% SER E 10/13  
Ford Motor Credit  
Clearwire 12%, 12/15  
GMAC  
TXU ENERGY TERM B EXT 10/10/17  
Nextel Communications  
GMAC 8%, 11/01/31  
Energy Future Holdings 10%, 1/15/20  
CIT Group 7%, 5/04/15  
Asurion 5/24/18  
Vodafone 6.25%, 6/24/16  
Total number of holdings 523
Top 10 holdings aggregate 10.8%
Aggregate of top issuers 13.8%
Allocation to funds

Asset mix

Sector mix

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 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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