†† As it relates to Series E and Series P performance, the performance data shown for the period occurring prior to the start date of a series P or E is that of the corresponding series F or B. Series F and B have higher combined management and administration fees than the applicable series P and E. Had a series P or E existed since the inception of series F or B, the returns of the applicable series P or E would have been higher.
The indicated rates of return (other than for each money market fund) 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 security holder that would have reduced returns.
The monthly cash flow distributions on Fidelity’s tax-smart withdrawal program (T-SWP®) are not guaranteed, will be adjusted from time to time and may include income. We will aim to keep cash flow between 7.5% and 9% of the NAV each year on T-SWP balanced funds on T8/S8/F8, as well as 4.5% and 5.5% of the NAV on T5/S5/F5 balanced funds. For equity funds, we will aim to keep cash flow between 6% to 10% of the NAV each year on T8/S8/F8, and between 4% to 6% of the NAV each year on T5/S5/F5.
A return of capital reduces an investor’s adjusted cost base. Capital gains taxes are deferred until units are sold or until their ACB goes below zero. Investors should not confuse this cash-flow distribution with a fund’s rate of return or yield. While investors T-SWP will be able to defer some personal capital gains, they must still pay tax on capital gains distributions. T-SWP will also pay a year-end distribution that must be reinvested in additional securities of the applicable fund.
