Fidelity Funds. Simplified Prospectus dated January 8, 2018

Transcription

1 Simplified Prspectus dated January 8, 2018 Fidelity Funds Fixed Incme Funds U.S. Fixed Incme Funds Fidelity Investment Grade Ttal Bnd Fund Fidelity Investment Grade Ttal Bnd Currency Neutral Fund Series A, B, E1, E2, E3, E4, E5, F, O, P1, P2, P3, P4, P5 units Series A, B, E1, E2, E3, E4, E5, F, O, P1, P2, P3, P4, P5 units N securities regulatry authrity has expressed an pinin abut these units. It s an ffence t claim therwise. The Funds and the securities f the Funds ffered under this simplified prspectus are nt registered with the United States Securities and Exchange Cmmissin and they are sld in the United States nly in reliance n exemptins frm registratin.

2 What s inside Intrductin... 1 What is a mutual fund and what are the risks f investing in a mutual fund... 3 Organizatin and management f the Funds Purchases, switches and redemptins Optinal services Fees and expenses Dealer cmpensatin Dealer cmpensatin frm management fees Incme tax cnsideratins fr investrs Specific infrmatin abut each f the mutual funds described in this dcument Fidelity Investment Grade Ttal Bnd Fund Fidelity Investment Grade Ttal Bnd Currency Neutral Fund Glssary... 59

3 Intrductin This dcument is a simplified prspectus. In this dcument, we, us, ur and Fidelity refer t Fidelity Investments Canada ULC. The funds ffered under this simplified prspectus are referred t tgether as the Funds and individually as a Fund. The Funds are gruped int the categry and sub-categry set ut n the cver page f this simplified prspectus. The Funds, tgether with ther funds managed and ffered by Fidelity under separate simplified prspectuses, are referred t as the Fidelity Funds. In this dcument, we refer t financial advisrs and dealers. The financial advisr is the individual with whm yu cnsult fr investment advice and the dealer is the cmpany r partnership that emplys yur financial advisr. This simplified prspectus cntains selected imprtant infrmatin t help yu make an infrmed investment decisin abut the Funds and t understand yur rights as an investr. Smetimes we use industry r defined terms t describe smething in this dcument. We prvide a brief descriptin f sme f thse terms in the glssary at the end f this dcument. Terms that are cntained in the glssary are in italics in this dcument. This dcument is divided int tw parts. The first part explains what mutual funds are and the different risks yu face by investing in them. It als prvides general infrmatin that applies t all f the Funds. The secnd part cntains specific infrmatin abut each f the Funds. Additinal infrmatin abut each Fund is available in its annual infrmatin frm, its mst recently filed fund facts, its mst recently filed annual financial statements and any interim financial statements filed after thse annual financial statements, and its mst recently filed annual management reprt f fund perfrmance and any interim management reprt f fund perfrmance filed after that annual management reprt f fund perfrmance. These dcuments are incrprated by reference int this simplified prspectus. That means they legally frm part f this simplified prspectus just as if they were included in it. Yu can get a cpy f the Funds annual infrmatin frm, fund facts, financial statements and management reprts f fund perfrmance at n cst by calling us at , by sending us an at cs.english@fidelity.cm (fr assistance in English) r sc.francais@fidelity.cm (fr assistance in French) r by asking yur financial advisr. Yu can als find this simplified 1

4 Intrductin (cntinued) prspectus, the fund facts, the financial statements and the management reprts f fund perfrmance n ur website at These dcuments and ther infrmatin abut the Funds are als available at 2

5 What is a mutual fund and what are the risks f investing in a mutual fund? Millins f Canadians are wrking tward their financial gals by investing their mney in mutual funds. Whether it s saving fr retirement r putting aside cash fr a dwn payment n a hme, mutual funds have becme an investment f chice fr many peple. But what exactly are mutual funds, hw d they wrk and what are the risks? This sectin has the answers. What is a mutual fund? Simply put, a mutual fund is a pl f investments made n behalf f a large grup f peple. Here s hw it wrks: when yu buy a mutual fund, yu re actually putting yur mney tgether with that f many ther peple wh like the same srts f investments that yu d. A prfessinal investment expert called a prtfli manager takes that pl f cash and invests it fr the whle grup. If the investments make a prfit, yu share that prfit with everyne else in the grup. If the investments lse mney, everyne shares in the lss. Sld in units When yu invest in a mutual fund, yu re buying a piece f the mutual fund, which piece is called a unit in the case f a mutual fund rganized as a trust and a share in the case f a mutual fund ffered as a class f shares f a mutual fund crpratin, such as Fidelity Capital Structure Crp. The attributes f shares and units are generally the same. We usually nly refer t units in this simplified prspectus. Mutual fund cmpanies keep track f the size f yur piece f a mutual fund by recrding hw many units yu wn. The mre mney yu put int a mutual fund, the mre units yu get. Sme mutual funds ffer units in mre than ne series. It s pssible that each series may have different management fees r expenses. Hw d yu make mney? Yu make mney n mutual funds if yu buy yur units at ne price and sell r redeem them later at a higher price. Of curse, yu lse mney if yu redeem yur units fr less than yu paid. Yu can als make mney when the mutual fund pays yu yur share f the incme and capital gains it has earned n its investments. What d mutual funds invest in? Mutual funds invest in many f the same things as individual investrs everything frm treasury bills t shares n freign stck markets. The kind f securities a mutual fund invests in depends n the mutual fund s gal r investment bjectives. Fr example, there are mutual funds fr peple wh want t gain expsure t shrt-term fixed incme securities as well as mutual funds fr thse wh want t gain expsure t Canadian, U.S. r internatinal equity securities. The price f a unit changes every day, depending n hw well the investments f the mutual fund perfrm. When the investments rise in value, the price f a unit ges up. When the investments drp in value, the price f a unit ges dwn. Securities that trade n a public exchange are generally valued at their last sale r clsing price as reprted n that valuatin day. If there is n reprted sale and n reprted clsing price, we value the securities at their clsing bid price n that valuatin day. Hwever, if the price is nt a true reflectin f the value f the security, we use anther methd t determine the value. This practice is called fair value pricing. It may happen fr many reasns, including where the value is affected by events that ccur after a market where the security is principally traded has clsed r where there has been minimal r infrequent trading in a security. While there are thusands f different investments available, they generally fit int tw basic types: debt and equity. Sme mutual funds invest in units f ther funds, called underlying funds. Underlying funds, in turn, may invest in debt securities, equity securities r, in sme cases, securities f ther funds. Debt securities Debt securities, r fixed incme securities, are bligatins f an issuer t repay a sum f mney, usually with interest. Cmmn examples include thse issued by a cmpany r a gvernment. Debt securities are als an imprtant way fr 3

6 What is a mutual fund and what are the risks f investing in a mutual fund? (cntinued) cmpanies and gvernments t raise mney. These entities frequently sell debt securities, called bnds, and use the cash fr majr prjects, r just t meet their daily expenses. The gvernment r cmpany usually agrees t pay back the amunt f the debt security within a set amunt f time. If that perid f time is abut a year r less, the investment is ften called a mney market instrument. Examples are shrt-term bnds and gvernment treasury bills. If the length f time fr repayment is mre than abut a year, the investment is ften referred t as a fixed incme investment. Examples are crprate and gvernment bnds and mrtgages. Equity securities Equity securities are investments that give the hlder part wnership in a cmpany. When a mutual fund buys equity securities, it is buying a piece f a business. The mst familiar example is cmmn shares that trade n the stck market. Equity securities can earn mney in tw ways. The value f the shares can rise (r fall) as peple buy and sell them n stck exchanges. If a cmpany appears t be ding well in its business, mre peple may want t buy a piece f it, and the share price is likely t g up. On the ther hand, if a cmpany s business desn t seem t be ding well, investrs may decide t sell their piece f the cmpany, and the share price is likely t g dwn. Sme kinds f equity securities als pay yu a prtin f any prfit the cmpany may earn. These payments are called dividends. What advantages d mutual funds have? Yu culd make many f the same investments that prtfli managers f mutual funds make. S why buy mutual funds? There are several advantages. Prfessinal management Fr ne thing, prfessinal prtfli managers make all the decisins abut exactly which securities t invest in and when t buy r sell them. It s their full-time jb, s yu dn t have t spend the time making these investment decisins n yur wn. Prtfli managers may als prepare r have access t prprietary infrmatin and research that isn t as accessible t individual investrs. Diversificatin A secnd advantage is smething called diversificatin. Diversificatin means wning several different investments at nce. Here s why it s imprtant. The value f yur investments g up and dwn ver time; that s the nature f investing. But nt all investments are likely t g up r dwn at the same time, r t the same extent, which can help t lessen the vlatility f the mutual fund ver the lng-term. Since mutual funds typically hld many investments, they ffer a simple way t diversify yur prtfli. In additin t diversifying thrugh the number f investments, mutual funds ften have access t investments individual investrs generally cannt buy. A wider range f types f investments may increase diversificatin. Easy access t yur mney Unlike sme ther kinds f investments, mutual funds are liquid. This means that yu can redeem yur units at almst any time and get yur mney when yu need it (even thugh yu may get less than yu invested). Recrd keeping And finally, mutual funds make yur investments easier t keep track f. Mutual fund cmpanies help yu with the details by sending yu regular financial statements, fund perfrmance reprts, and tax slips. Are there any csts? There are a number f expenses invlved in buying and wning a mutual fund. First, there are csts paid directly by investrs, either when they buy r when they redeem units f a mutual fund. Then there are expenses paid by the mutual fund itself. Fr example, there are management fees, brkerage cmmissins, and perating expenses. Even thugh the mutual fund, and nt the investr, pays these csts, they reduce an investr s return. See the Fees and expenses sectin fr details abut the csts f the Funds. What investrs pay Financial advisrs wh sell mutual funds may earn cmmissins, als knwn as sales charges r lads, as cmpensatin fr the advice and service that they prvide. 4

7 There are tw kinds f sales charges. Yu may pay a percentage f the purchase price when yu buy yur mutual fund units. At Fidelity, we call this an initial sales charge. Or if yu redeem yur units within a specified number f years, yu may pay a percentage f the redemptin amunt t Fidelity at the time yu redeem. We call this a deferred sales charge. Deferred sales charges may be a gd chice if yu plan t leave yur mney in the mutual fund fr a lng time. That s because any deferred sales charge that yu wuld have t pay if yu sld yur units decreases each year, and disappears entirely after yu ve held the mutual fund units fr a specified number f years. What the mutual fund pays Fund managers make their mney by charging a management fee. Usually, it s a percentage f the net assets f the mutual fund. Managers cllect this fee directly frm the mutual fund itself, nt frm individual investrs, except fr Series O, where a negtiated management fee is charged directly t investrs. The managers use the management fee t pay expenses, like emplyee salaries, research csts, trailing cmmissins, and prmtinal expenses. See the Fees and expenses sectin fr details. There are als a number f ther expenses invlved in running a mutual fund. Fr example, a mutual fund needs t value all f its investments every valuatin day, and determine the apprpriate price t prcess the day s rders t buy and redeem units f the mutual fund. There are als transfer agency fees, brkerage cmmissins, legal fees, regulatry filing fees, auditing fees, custdy fees, taxes, and ther perating expenses that must be taken int accunt in arriving at the value f the units. Again, these csts are smetimes cllected directly frm the mutual fund. Alternatively, sme managers, including Fidelity, may pay fr sme f these expenses in exchange fr a fixed rate Administratin Fee that they cllect frm the mutual fund. When yu divide the management fee and certain perating expenses by the mutual fund s average net asset value fr the year, yu get the mutual fund s management expense rati. If a mutual fund has mre than ne series f units, each series has its wn management expense rati. There are strict regulatins t determine which expenses t include in the calculatin. Hw d I knw if mutual funds are right fr me? One f the real strengths f mutual funds is that they ffer many chices that can be matched t yur gals. They range frm the extremely cnservative t the mre risky. Yur financial advisr can help yu make the imprtant decisins abut which mutual funds suit yu best. What s yur risk tlerance? Can yu lse mney? Yes. Even befre yu talk t a financial advisr, yu can start planning yur mutual fund prtfli by deciding hw much risk yu re willing t take. This is als knwn as yur risk tlerance. Yur risk tlerance depends n many factrs, such as yur age, investment time hrizn, and yur gals. Understanding the risks invlved can help. We explain mre abut the risks f investing in this sectin and in each Fund prfile under the heading What are the risks f investing in the fund? Yur financial advisr can help yu assess the risks. Anther factr is yur gals. If yu want t keep yur mney safe and earn a little interest at the same time, a less risky mney market mutual fund may d the jb nicely. But if yu re trying t build sme real savings fr a big gal, such as retirement, a mney market fund prbably wn t earn enugh t d it. Yu need t cnsider increasing yur risk t better yur chances f earning mre mney. Time n yur side Hw much time d yu have? That s anther key cnsideratin. Say yu re saving fr a retirement that s still 30 years ff. In that case, yu may be able t affrd t take sme risk. If yu have 30 years, the ups and dwns f the stck market, fr example, aren t as much f a cncern. Sure, sme f yur riskier investments culd drp in the shrt-term, but ver the lnger term, past experience suggests that a bradly diversified prtfli f equity investments tends t rise mre ften than it falls. Of curse, hw well a mutual fund perfrmed in the past desn t tell yu hw it will perfrm in the future. 5

8 What is a mutual fund and what are the risks f investing in a mutual fund? (cntinued) On the ther hand, if yu ve nly gt a few years left until yu expect yu ll need yur mney, yu shuld cnsider reducing yur risk. In this case, there isn t enugh time left fr yur investments t recver shuld they drp in value. A gd variety wrks best Finally, yu shuld cnsider having a mix f mutual funds, sme cnservative, thers less s. That s part f diversificatin. N single mutual fund is in itself a balanced investment plan. The apprpriate mix depends n yur risk tlerance, yur gals, and hw lng yu have t reach thse gals. What are the risks f investing in a mutual fund? Everybdy wants t earn mney when they invest. But yu may lse mney t. This is knwn as risk. Unlike bank accunts r guaranteed investment certificates, mutual fund units aren t cvered by the Canada Depsit Insurance Crpratin r any ther gvernment depsit insurer. It s imprtant t remember that like all mutual funds, there s n guarantee that when yu redeem yur units f the Funds, yu ll get back the full amunt f mney yu riginally invested. On rare ccasins, a mutual fund may nt allw yu t redeem yur units. See Suspending yur right t redeem units under the heading Purchases, switches and redemptins fr mre infrmatin. Mutual funds wn different kinds f investments, depending n their investment bjectives. The value f these investments changes frm day t day because f changes in interest rates, ecnmic cnditins, and market r cmpany news, fr example. That means the value f a mutual fund s units can g up and dwn, and yu may get mre r less than yu invested when yu sell yur units. Generally speaking, the greater the risk f an investment, the greater its ptential fr return; the lwer the risk, the smaller the ptential fr return. Higher-risk investments, such as stcks and high yield securities, are likely t have changes in their prices frm day t day. And sme may have bigger changes than thers. These swings in prices are called vlatility. Investments with higher risk and higher vlatility may suffer substantial lsses ver the shrt-term. But histrically, higher-risk investments have generally ffered a greater ptential return ver the lng-term. This is ne reasn why it s imprtant t diversify yur prtfli, and make sure that the types f mutual funds yu chse suit the length f time yu expect t invest. The key is t recgnize the risk invlved in a particular investment, and then decide if it s a risk yu want t take. Yur financial advisr can help yu understand risk and build a prtfli that s right fr yu. Hw mutual funds can reduce risk While there s n dubt that mutual funds cme with risks, they can be less risky as a whle than cmparable individual investments. Mutual funds are managed by prfessinal prtfli managers. They spend hurs studying reprts abut the cmpanies they re investing in, analyzing statistics, and examining the mix f investments in the mutual fund. It s wrk that the average investr desn t have time fr, r the necessary expertise, and it can increase the chance that the mutual fund achieves its gal. Equally imprtant is the fact that mutual funds ffer diversificatin. Even mutual funds that specialize in ne type f industry r ne cuntry usually make a variety f investments within their particular sectr. Hw yu can reduce risk Mutual funds aren t meant t be a way f making a quick prfit. They re lng-term investments. If yu buy a mutual fund, yu shuld generally buy it with a view t hlding it ver a number f years. Dn t try t secnd-guess the market and figure ut the best time t get in r ut. Generally speaking, a carefully chsen grup f mutual funds bught and held ver the lng-term gives yu the best chance f meeting yur financial gals. Specific risks f investing in mutual funds Mutual funds are made up f many securities, and the prices f thse securities can g up r dwn. Here are sme f the mst cmmn risks that can cause the value f units f a mutual fund t change. T find ut which f these risks apply t each Fund, see the individual Fund prfiles. A fund that invests in an underlying fund has similar risks as an investment in that underlying fund. 6

9 Yu must feel cmfrtable with the risk that yu take. Befre yu invest, discuss it with yur financial advisr. Asset-backed securities and mrtgage-backed securities risk Asset-backed securities are debt bligatins that are backed by pls f cnsumer r business lans. Mrtgage-backed securities are debt bligatins backed by pls f mrtgages n cmmercial r residential real estate. The main risks assciated with investing in asset-backed securities and mrtgage-backed securities are: If there are changes in the market s perceptin f the issuers f these types f securities, in the creditwrthiness f the underlying brrwers, r in the assets backing the pls, then the value f the securities may be affected. The underlying lans may nt be ultimately repaid in full, in sme cases leading t hlders f asset-backed securities and mrtgage-backed securities nt receiving full repayment. If these securities are prepaid befre maturity and the prepayment is unexpected, r if it ccurs faster than predicted, the asset-backed securities r mrtgagebacked securities may pay less incme, and their value might decrease. Since issuers generally chse t prepay when interest rates fall, the mutual fund may have t reinvest this mney in securities that have lwer rates. Cmmdity risk Sme mutual funds invest indirectly in cmmdities r cmmdity sectrs, including gld, silver, ther precius metals, industrial metals, energy, and sft (r grwn) cmmdities, like wheat, livestck, cca, cttn, cffee, and sugar. There are several ways a mutual fund can btain cmmdities expsure, including by: Purchasing securities f an exchange-traded fund r ETF. Purchasing exchange-traded derivatives. Investing directly in a cmpany perating in a cmmdities sectr. ETFs that seek t replicate the perfrmance f gld, silver, r bth, r f an index that tracks such perfrmance, are referred t as Gld/Silver ETFs. Gld/Silver ETFs may be leveraged r unleveraged. Typically, a leveraged Gld/Silver ETF attempts t magnify returns by a multiple f 200%. Gld/Silver ETFs may invest directly r indirectly in gld, silver, r derivatives that have gld r silver as an underlying interest. We refer t ETFs that seek t replicate the perfrmance f ne r mre physical cmmdities ther than gld r silver, r f an index that tracks such perfrmance, as Cmmdity ETFs. Cmmdity ETFs are unleveraged. Cmmdity ETFs may invest directly r indirectly in physical cmmdities, r derivatives that have physical cmmdities as an underlying interest. Cmmdity prices can fluctuate significantly in shrt time perids. A fund expsed t cmmdities may, therefre, experience vlatility in its net asset value. Cmmdity prices can change as a result f a number f factrs, including supply and demand, speculatin, central bank and internatinal mnetary activities, plitical r ecnmic instability, changes in interest rates and currency values, new discveries, r changes in gvernment regulatins affecting cmmdities. Cncentratin risk Sme mutual funds may cncentrate their investments by: Investing in relatively few cmpanies. Investing in a particular industry r gegraphic regin. Hlding mre than 10% f their net assets in securities f a single issuer. A relatively high cncentratin f assets in, r expsure t, a particular industry, gegraphic regin, single issuer r a small number f issuers may reduce the diversificatin f a mutual fund, and may result in increased vlatility in the mutual fund s net asset value. Issuer cncentratin may als increase the illiquidity f the mutual fund s prtfli if there is a shrtage f buyers willing t purchase thse securities. 7

10 What is a mutual fund and what are the risks f investing in a mutual fund? (cntinued) Credit risk Credit risk is the risk that the issuer f a fixed incme security can t pay interest r repay principal when it s due. Many fixed incme securities f cmpanies and gvernments are rated by third party surces, such as Standard & Pr s, t help describe the creditwrthiness f the issuer. Hwever, these credit ratings may nt accurately reflect the true risk f the issuer. The market value f fixed incme securities can be affected by adverse news, r a dwngrade in the security s rating. Other factrs can als affect the market value f the security, such as a change in the creditwrthiness, r perceived creditwrthiness, f the security s issuer. Fixed incme securities that have a lw credit rating, r which are unrated, are knwn as high yield securities. High yield securities typically: Offer a higher yield than securities with a high credit rating. Have a higher ptential fr lss than fixed incme securities issued by financially stable and slvent issuers. Are mre likely t g int default n interest and principal payments than securities with a higher credit rating. Are less liquid in times f market declines. Certain types f fixed incme securities, such as flating rate debt instruments, may be backed by specific assets that are pledged by the issuer in the event f a default, including nn-payment. Hwever, there is a risk that: The value f the pledged cllateral declines, r is insufficient t meet the bligatins f the brrwer t all investrs r lenders. Investrs r lenders may incur legal csts, be subject t lengthy delays, r be unable t fully recup the principal amunt and/r lst interest in the event f the issuer s default. These and ther factrs may result in lsses t mutual funds that hld these types f securities. Currency risk Currency risk, smetimes referred t as exchange rate risk, is the risk that the value f an investment held by a mutual fund is affected by changes in the value f the currency in which the investment is denminated. Mvements in exchange rates can affect the day-t-day value f a mutual fund, especially if it hlds a lt f freign investments. A mutual fund that buys and sells securities in currencies ther than the Canadian dllar can make mney when the value f the Canadian dllar decreases relative t the freign currency, and can lse mney when the value f the Canadian dllar rises cmpared with the freign currency. These gains and lsses ccur when the fund cnverts its Canadian dllars t the freign currency in rder t buy a security, and when it cnverts the freign currency back int Canadian dllars when it sells the security. If, fr example, the value f the Canadian dllar has risen, but the market value f the investment has stayed the same, the investment is wrth less in Canadian dllars when it s sld. Funds that invest in securities issued in currencies ther than the Canadian dllar may use the U.S. dllar as their primary wrking currency instead f the Canadian dllar. This means that the cash received by the mutual fund, including Canadian dllars received frm purchases by investrs and the prceeds f settled trades, is cnverted int U.S. dllars every day. In additin, U.S. dllars are cnverted back int Canadian dllars t fund redemptins. A U.S. dllar wrking currency is generally used by Funds that invest: Primarily in U.S. dllar-denminated securities, since it helps t reduce currency transactins assciated with the mutual fund s investment activities in these securities. All r a substantial prtin f their assets in securities denminated in freign currencies ther than the U.S. dllar, since the U.S. dllar is typically liquid, and may be mre efficiently traded than ther currencies. While we believe there are benefits t Funds that use the U.S. dllar as their wrking currency, there is n assurance that this strategy is effective, and it is pssible that csts incurred by these Funds fr freign exchange transactins may exceed the benefits. 8

11 Sme f the Funds may use derivatives, such as ptins, futures cntracts, frward cntracts, swaps, and custmized types f derivatives, t reduce the effect f changes in exchange rates. Cyber security risk Cyber security risk is the risk f harm, lss, and liability resulting frm a failure r breach f an rganizatin s infrmatin technlgy systems. In general, cyber security risk can result frm deliberate attacks r unintentinal events, and may arise frm external r internal surces. Cyber attacks include gaining unauthrized access t digital systems (e.g., thrugh hacking r malicius sftware cding) fr purpses f misapprpriating assets r sensitive infrmatin, crrupting data, equipment r systems, r causing peratinal disruptin. Cyber attacks may als be carried ut in a manner that des nt require gaining unauthrized access, such as causing denial-f-service attacks n websites (i.e., effrts t make netwrk services unavailable t intended users). Cyber security risk has the ability t negatively impact the Funds and the unithlders f the Funds by, amng ther things, disrupting and impacting business peratins, interfering with a Fund s ability t calculate its net asset value, impeding trading by r in the Funds, r causing vilatins f applicable privacy and ther laws. While Fidelity has established business cntinuity plans and risk management systems t address cyber security risk, there are inherent limitatins in such plans and systems, including the pssibility that certain risks have nt been identified. Furthermre, althugh Fidelity has vendr versight plicies and prcedures, a Fund cannt cntrl the cyber security plans and systems put in place by its service prviders, r any ther third party whse peratins may affect the Fund r its unithlders. The Fund and its unithlders culd be negatively impacted as a result. Derivative risk A derivative is an investment that bases its value n hw well anther kind f investment, like a stck, bnd, currency, r market index, is ding. Derivatives usually take the frm f a cntract with anther party t buy r sell an asset at a later time. Funds that invest in derivatives are in a psitin t make r lse mney based n changes in the underlying interest, such as interest rates, securities prices, r currency exchange rates. Here are sme examples f derivatives: Optins. Optins give the hlder the right t buy an asset frm, r sell an asset t, anther party fr a set price, during a set perid f time. Fluctuatins in the value f the asset during the life f the ptin impact the value f the ptin. It s called an ptin because the hlder has the ptin f exercising the right t buy r sell the asset, and the ther party is bliged t satisfy this right. The ther party generally receives a cash payment (a premium) fr agreeing t prvide the ptin. Frward cntracts. In a frward cntract, an investr agrees t buy r sell an asset, such as a security r currency, at an agreed price n a specific date in the future. Futures cntracts. Futures cntracts generally functin in a similar manner as frward cntracts, but are traded n an exchange. Swaps. With a swap agreement, tw parties agree t exchange, r swap, payments. The payments the tw parties make are based n an agreed underlying amunt, like a bnd. Each party s payments are calculated differently. Fr example, ne party s payments may be based n a flating interest rate, while the ther party s payments may be based n a fixed interest rate. Debt-like securities. With a debt-like security, the amunt f principal and/r interest an investr receives ges up r dwn depending n whether there is an increase r decrease in the value f an agreed underlying security, like a share. There are a number f risks invlved in the use f derivatives. Here are sme f the mst cmmn risks: There s n guarantee that a mutual fund is able t buy r sell a derivative at the right time t make a prfit r limit a lss. 9

12 What is a mutual fund and what are the risks f investing in a mutual fund? (cntinued) There s n guarantee that the ther party t the cntract, referred t as a cunterparty, lives up t its bligatins, which culd result in a financial lss fr the mutual fund. If the value f a derivative is tied t the value f an underlying interest, there s n guarantee that the value f the derivative at all times accurately reflects the value f the underlying interest. If the cunterparty ges bankrupt, the mutual fund culd lse any depsit that was made as part f the cntract. If the derivatives are traded n freign markets, it may be mre difficult and take lnger t cmplete the transactin. Freign derivatives can als be riskier than derivatives traded n Nrth American markets. Securities exchanges culd set daily trading limits n ptins and futures cntracts. This culd prevent a mutual fund frm cmpleting an ptins r futures transactin, making it very difficult t hedge prperly, t make a prfit, r t limit a lss. If a mutual fund is required t give a security interest in rder t enter int a derivative, there is a risk that the ther party may try t enfrce the security interest against the mutual fund s assets. Mutual funds can use derivatives t help ffset lsses that ther investments might suffer because f changes in stck prices, cmmdity prices, interest rates, r currency exchange rates. This is called hedging. While using derivatives fr hedging has its benefits, it s nt withut its wn risks. Here are sme f them: There s n guarantee that a hedging strategy always wrks. A derivative desn t always ffset a drp in the value f a security, even if it has usually wrked ut that way in the past. Hedging desn t prevent changes in the prices f the securities in a mutual fund s prtfli, r prevent lsses if the prices f the securities g dwn. Hedging can als prevent a mutual fund frm making a gain if the value f the currency, stck, r bnd ges up. Currency hedging des nt result in the impact f currency fluctuatins being eliminated altgether. A mutual fund might nt be able t find a suitable cunterparty t enable the mutual fund t hedge against an expected change in a market if mst ther peple are expecting the same change. Hedging may be cstly. Equity risk Cmpanies issue cmmn shares and ther kinds f equity securities t help pay fr their peratins and finance future grwth. Equity securities can drp in price fr many reasns. Fr example, they re affected by general ecnmic and market cnditins, interest rates, plitical develpments, and changes in the cmpanies that issue them. If investrs have cnfidence in a cmpany and believe it will grw, the price f its equity securities is likely t rise. If investr cnfidence falls, equity prices are als likely t fall. The prices f equity securities can vary widely, and mutual funds that invest in equity securities are generally mre vlatile than mutual funds that invest in fixed incme securities. Exchange-traded fund (ETF) risk A mutual fund may invest in an underlying fund whse securities are listed fr trading n an exchange. These underlying funds are called ETFs. The investments held by ETFs may include stcks, bnds, cmmdities, and ther financial instruments. Sme ETFs attempt t replicate the perfrmance f a widely-quted market index. Hwever, nt all ETFs track an index. While an investment in an ETF generally presents similar risks as an investment in an pen-ended, actively managed mutual fund that has the same investment bjectives and strategies, it als carries the fllwing additinal risks, which d nt apply t an investment in an pen-ended, actively managed mutual fund: The perfrmance f an ETF may be different frm the perfrmance f any index, cmmdity, r financial 10

13 measure that the ETF may seek t track. There are several reasns that this might ccur, including transactin csts and ther expenses that are brne by the ETF, the ETF s securities may trade at a premium r a discunt t their net asset value, r the ETF may emply cmplex strategies, such as leverage, making accurate tracking difficult. The ability f a mutual fund t realize the full value f its investment in an underlying ETF depends n the mutual fund s ability t sell the ETF s securities n a securities market. The mutual fund may receive less than the ETF s net asset value per security n such sale, as the ETF s securities may nt trade at prices that reflect their net asset value. There is n guarantee that any particular ETF is available at any time. An ETF may be newly r recently rganized, with limited r n previus perating histry, and an active trading market fr an ETF s securities may fail t develp r be maintained. In additin, an ETF may nt cntinue t meet the listing requirements f the exchange n which its securities are listed fr trading. Cmmissins may apply t the purchase r sale f an ETF s securities by a mutual fund. Freign investment risk There are sme significant reasns t cnsider investing abrad. The ecnmies f freign cuntries may grw faster than Canada s ecnmy. This can mean that investments in thse cuntries may als grw mre quickly. Freign investments give yu diversificatin, because all yur mney isn t invested in Canada. In additin t currency risk discussed abve, freign investments have ther risks, including: Nt all cuntries are as well regulated as Canada, r have the same cnsistent and reliable accunting, auditing, and financial reprting standards. Sme cuntries may have lwer standards f business practices and lax regulatin, and may be mre vulnerable t crruptin. Even in sme relatively well regulated cuntries, it can be difficult t get the infrmatin investrs need abut business peratins. Freign investments culd suffer as a result. A small number f cmpanies culd make up a large part f the freign market. If ne f these cmpanies des prly, the whle market culd drp. Smetimes freign gvernments impse taxes, take ver private businesses, r change the rights f freign investrs. They might impse currency cntrls that greatly restrict the ability t get mney ut f the cuntry, r they may devalue their currency. Rits, civil unrest r wars, r unstable gvernments in sme cuntries culd hurt investments. Freign cuntries may experience relatively high inflatin, and high interest rates. It s smetimes hard t enfrce the mutual fund s legal rights in anther cuntry. Fr fixed incme securities bught n freign markets, including sme gvernment bnds, there s a risk that the issuer desn t pay ff the debt, r that the price f the securities drps rapidly. Of curse, the amunt f risk varies frm cuntry t cuntry. Securities in develped markets generally have lwer freign investment risk because they re usually well regulated and are relatively stable. Hwever, securities f gvernments and cmpanies in the emerging r develping markets, such as Suth r Sutheast Asia and Latin America, can have significant freign investment risk. Interest rate risk Interest rates impact the cst f brrwing fr gvernments, cmpanies, and individuals, which, in turn, impacts verall ecnmic activity, and a wide range f investments. Lwer interest rates tend t stimulate ecnmic grwth, whereas high interest rates tend t d the ppsite. When interest rates rise, fixed incme securities, like treasury bills and bnds, tend t fall in price. On the ther hand, these securities tend t rise in price when interest rates fall. The cash flw frm fixed incme securities with variable rates can change as interest rates fluctuate. Lnger-term bnds and strip bnds are generally mre 11

14 What is a mutual fund and what are the risks f investing in a mutual fund? (cntinued) sensitive t changes in interest rates than ther kinds f securities. When interest rates fall, the issuers f many kinds f fixed incme securities may repay the principal befre the security matures. This is called making a prepayment. This is a risk because if a fixed incme security is paid ff sner than expected, the mutual fund may have t reinvest its mney in securities that have lwer rates. Als, if paid ff unexpectedly, r faster than predicted, the fixed incme security can ffer less incme and/r ptential fr capital gains. Changing interest rates can als indirectly impact the share prices f equity securities. When interest rates are high, it may cst a cmpany mre t fund its peratins, r t pay dwn existing debt. This can impair a cmpany s prfitability and earnings grwth ptential, which can negatively impact its share price, making the cmpany less attractive t ptential investrs. Cnversely, lwer interest rates can make financing fr a cmpany less expensive, which can ptentially increase its earnings grwth ptential. Interest rates can als impact the demand fr gds and services that a cmpany prvides by impacting verall ecnmic activity. Large transactin risk Other investment prducts, such as segregated funds ffered by insurance cmpanies and ther investment funds, may invest in a mutual fund. There is a risk that these investments may becme large, resulting in large purchases and redemptins f units f the fund. Other investrs may als purchase large amunts f a fund. Large purchases and redemptins may result in: A fund maintaining an abnrmally high cash balance. Large sales f prtfli securities, impacting market value. Increased transactin csts (e.g., cmmissins). Capital gains being realized, which may increase taxable distributins t investrs. If this shuld ccur, the returns f investrs, including ther funds, that invest in the fund may als be adversely affected. Tax lss restrictin rules, referred t as LREs, apply t a mutual fund if the fund des nt satisfy certain investment diversificatin cnditins at a time when an investr (cunted tgether with affiliates) becmes the hlder f units wrth mre than 50% f the fund. This culd happen when an investr r its affiliates acquire units, r when anther investr redeems units. Each time the LREs apply t a fund, unithlders may autmatically receive an unscheduled distributin f incme and/r capital gain. These distributins must be included in the unithlders incme fr tax purpses. Als, future distributins paid by the mutual fund may be larger than they therwise wuld have been due t the restrictin n the deductin f prir lsses. Fr mre infrmatin regarding the taxatin f distributins, see the Incme tax cnsideratins fr investrs sectin. Liquidity risk Liquidity f yur investment means hw quickly and easily yu can sell yur units fr cash. This is als true fr the securities held in a mutual fund. Mst securities held in a mutual funds are liquid, but there are sme investments that cannt be sld easily r quickly. These are cnsidered t be illiquid. Securities can be illiquid fr a number f reasns, including: Legal rules may restrict the ability t sell them. The securities might have features that make them difficult t sell. There may be shrtage f buyers. The securities might suddenly becme illiquid because f sudden changes in the market. An individual security s liquidity may simply change ver time. There are sme types f securities that may be mre illiquid when markets are vlatile, r there is a sharp market decline. These include high yield bnds, flating rate debt instruments r lans, senir secured debt bligatins, cnvertible securities, high yield cmmercial mrtgagebacked securities, and fixed incme securities issued by crpratins and gvernments in emerging cuntries. 12

15 If these types f securities becme illiquid, then there culd be fewer buyers fr the securities, the bid/ask spread might be wider, trade settlement and delivery f the securities t the mutual fund culd take lnger than nrmal, and it may be difficult t btain a price fr the securities. If a mutual fund has truble selling a security, the fund culd lse mney, and the value f an investment in the fund culd decline. Prtfli management risk All actively managed mutual funds are dependent n their prtfli management team t select investments. A pr security selectin r market allcatin may cause a mutual fund t underperfrm relative t its benchmark r ther mutual funds with similar investment bjectives. Repurchase transactins, reverse repurchase transactins and securities lending risk Smetimes mutual funds enter int what are called repurchase transactins, securities lending transactins and reverse repurchase transactins. A repurchase transactin is where a mutual fund sells a security t anther party fr cash and agrees t buy the same security back frm the same party fr cash. Securities lending is similar t a repurchase transactin, except that instead f selling the security and agreeing t buy it back later, the mutual fund lans the security and can demand the return f the security at any time. In a reverse repurchase transactin, a mutual fund buys a security at ne price frm a party and agrees t sell the same security back t the same party at a higher price later n. In each case, it is a way fr the mutual fund t earn interest n cash balances. The risk with these types f transactins is that the ther party may default under the agreement, r g bankrupt. In a reverse repurchase transactin the fund is left hlding the security, and may nt be able t sell the security at the same price it paid fr it, plus interest, if the market value fr the security has drpped in the meantime. In the case f a repurchase transactin r securities lending transactin, the fund culd incur a lss if the value f the security sld r laned has increased mre than the value f the cash and cllateral held. Fidelity reduces these risks by requiring the ther party t put up cllateral. The value f the cllateral has t be at least 102% f the market value f the security sld (fr a repurchase transactin), cash laned (fr a reverse repurchase transactin), r security laned (fr a securities lending transactin). The value f the cllateral is checked and reset daily. The Funds nly deal with parties wh appear t have the resurces and the financial strength t live up t the terms f the agreements. Repurchase transactins and securities lending transactins are limited t 50% f a Fund s assets. Cllateral held by a Fund fr laned securities and cash held fr sld securities are nt included in a Fund s assets when making this calculatin. Series risk The Funds are available in up t furteen series f units. The series available fr each Fund are set ut n the cver page f this simplified prspectus. See the sectin Specific infrmatin abut each f the mutual funds described in this dcument fr the features f each series and wh can purchase them. If a Fund can t pay the expenses f ne series using its prprtinate share f the Fund s assets, the Fund is required t pay thse expenses ut f the ther series prprtinate share f the Fund s assets. This culd lwer the investment returns f the ther series. N expenses are charged t the Funds fr any Series O units that they issue. The Funds may, withut ntice t unithlders and withut unithlder apprval, issue additinal series. Shrt selling risk A shrt sale is where a mutual fund brrws securities frm a brrwing agent (generally a custdian r dealer) and then sells the brrwed securities in the pen market. At a later date, the same number and type f securities are repurchased by the fund and returned t the brrwing agent. In the interim, the prceeds frm the first sale are depsited with the brrwing agent and the fund pays interest t the brrwing agent. If the value f the securities declines between the time that the fund brrws the securities and the time that it repurchases and returns the securities, the fund makes a prfit fr the difference (less any interest the fund must pay t the brrwing agent). 13

16 What is a mutual fund and what are the risks f investing in a mutual fund? (cntinued) Shrt selling strategies can prvide a mutual fund with an pprtunity t manage vlatility and enhance perfrmance in declining r vlatile markets. Shrt selling securities invlves risk, because there is n assurance that securities will sufficiently decline in value during the perid f the shrt sale t ffset the interest paid by the fund, and thereby make a prfit fr the fund. Securities sld shrt may instead increase in value, resulting in a lss t the fund. The fund may als experience difficulties repurchasing and returning the brrwed securities. The brrwing agent frm whm the fund has brrwed securities may g bankrupt, and the fund may lse the cllateral it has depsited with the brrwing agent. Shrt selling by the Funds cmplies with the laws f Canadian securities regulatry authrities. Cmpliance with regulatry rules is mnitred n a daily basis. Small cmpany risk Small cmpanies can be riskier investments than larger cmpanies. Fr ne thing, they re ften newer, and may nt have a track recrd, extensive financial resurces, r a well-established market fr their securities. They generally dn t have as many shares trading in the market, s it culd be difficult fr a mutual fund t buy r sell small cmpany stck when it needs t. All f this means that their prices and liquidity can change significantly in a shrt perid f time. Specializatin risk Sme mutual funds specialize in investing in a particular industry r part f the wrld. Specializatin lets the prtfli management team fcus n specific industries r gegraphic areas, which can bst returns if the industry r gegraphic area, and the cmpanies selected, prsper. But if the industry r gegraphic area has a slump, the mutual fund may suffer, because there are relatively few ther investments t ffset the dwnturn. The mutual fund must fllw its investment bjectives and cntinue t invest in securities in the industry r gegraphic area, whether it is grwing r nt. Additinally, if a specific investment apprach used by a mutual fund, such as value r grwth, is ut f favur, the mutual fund culd suffer if it is bliged t cnfine its investments t the specific investment apprach. 14

17 Organizatin and management f the Funds The fllwing infrmatin tells yu abut wh s invlved in running the Funds. Manager Fidelity Investments Canada ULC 483 Bay Street, Suite 300 Trnt, Ontari M5G 2N7 As Manager, we are respnsible fr the day-t-day peratins f the Funds and prvide all general management and administrative services. As at Nvember 30, 2017, Fidelity managed mre than $136 (CAD) billin fr its clients. We are part f a grup f cmpanies knwn as Fidelity Investments. Fidelity Investments specializes in investment management fr individuals, either directly, thrugh financial advisrs, r thrugh grup retirement plans. We als prvide a wide variety f financial services and prducts. As at Nvember 30, 2017, the Fidelity Investments grup managed mre than $2.4 trillin (USD) thrugh mutual fund prtflis and ther institutinal accunts arund the wrld. Trustee Fidelity Investments Canada ULC Trnt, Ontari The Funds are mutual funds rganized as trusts. As trustee, we hld title t each Fund s investments in trust fr unithlders under the terms described in a declaratin f trust. Independent Review Cmmittee The IRC is the fund gvernance agency fr the Fidelity Funds, as cntemplated by NI There are currently fur members f the IRC, each f whm is independent f us and any party related t us. The IRC s mandate is t (a) cnsider and make decisins n thse cnflict f interest matters that require its apprval under NI , (b) cnsider and prvide its recmmendatins n thse cnflict f interest matters that are referred t it fr review by the Manager, and (c) perfrm any ther functin required by securities legislatin. The IRC may als apprve mergers invlving the Funds and any change f the auditr f the Funds. Unithlder apprval will nt be btained in these circumstances, but yu will be sent a written ntice at least 60 days befre the effective date f any merger r change f auditr that affects the Funds that yu wn. The IRC prepares, at least annually, a reprt fr unithlders f its activities. This reprt is available n ur website at r yu may request a cpy, at n cst, by sending us an at cs.english@fidelity.cm (fr assistance in English) r sc.francais@fidelity.cm (fr assistance in French). Additinal infrmatin abut the IRC, including the names f the members f the IRC, is available in the Funds annual infrmatin frm. Custdian State Street Trust Cmpany Canada Trnt, Ontari The custdian, r its sub-custdians, hlds the investments f the Funds and keeps them safe t ensure that they are used nly fr the benefit f investrs. The custdian is independent f Fidelity. Securities Lending Agent State Street Bank and Trust Cmpany Bstn, Massachusetts The securities lending agent acts as agent fr thse Funds that engage in securities lending. The securities lending agent is independent f Fidelity. Registrar Fidelity Investments Canada ULC Trnt, Ontari As registrar, we keep a recrd f all unithlders f the Funds, prcess rders, and issue accunt statements and tax slips t unithlders. Auditr PricewaterhuseCpers LLP Trnt, Ontari The auditr is an independent chartered prfessinal accunting firm and it audits the annual financial statements f each Fund. 15

18 Organizatin and management f the Funds (cntinued) Prtfli adviser Fidelity Investments Canada ULC Trnt, Ontari The prtfli adviser makes the investment decisins fr the applicable Fund, buys and sells all the investments in the Fund, and deals with brkers. Sub-Advisers Fidelity Investments Mney Management, Inc. Merrimack, New Hampshire (FIMM) State Street Glbal Advisrs Ltd. Mntreal, Quebec (SSgA) The prtfli adviser may engage ne r mre sub-advisers t prvide investment advice in cnnectin with securities purchased fr a Fund. There may be difficulty in enfrcing legal rights against FIMM because it is resident, and substantially all f its assets are lcated, utside f Canada. Certain f the Fidelity Funds, which we refer t as Tp Funds, may invest sme r all f their assets in underlying Fidelity Funds. Because such underlying Fidelity Funds are als managed by Fidelity, Fidelity des nt vte the units f the underlying Fidelity Funds. Instead, Fidelity may arrange fr such units t be vted by the Tp Fund investrs. If Fidelity decides t arrange fr Tp Fund investrs t vte, then Fidelity asks each Tp Fund investr fr instructins n hw t vte that investr s prprtinate share f the underlying Fidelity Fund units wned by the Tp Fund, and Fidelity then vtes n that basis. In thse circumstances, Fidelity nly vtes the prprtin f the underlying Fidelity Fund units fr which it has received instructins. SSgA prvides investment services in cnnectin with the management f passive currency hedging fr Fidelity Investment Grade Ttal Bnd Fund. 16

19 Purchases, switches and redemptins Yu ve cnsidered yur investment bjectives and risk tlerance. The next step is making yur investment. The fllwing pages tell yu hw t invest in the Funds, hw much it csts and ther imprtant details. Opening an accunt Befre yu make yur first investment in the Funds, yu need t pen an accunt. There are several different kinds f Fidelity accunts, which we tell yu abut belw. Yu can pen an accunt by cntacting yur financial advisr and cmpleting an applicatin. Yu can als invest in the Funds thrugh accunts r plans ffered by ther financial institutins. Ask yur financial advisr fr details. Hw t buy, redeem r switch units f a series f a Fund The Funds are available in up t furteen series f units, as specified n the cver page and as set ut in each Fund s prfile. The differences between the series are described in the sectin Specific infrmatin abut each f the mutual funds described in this dcument. Series A and B units f the Funds are available t all investrs. Investrs cannt make an initial direct purchase int any f Series E units. Series E units are available nly t investrs wh hld Series B units and then becme eligible t hld Series E units based n the value f their hldings in the Fidelity Funds. These units are available in multiple tiers accrding t the value f this investment. Once an investr hlds Series E units, the investr can then buy directly additinal Series E units f the applicable tier f the same Fund r any ther Fidelity Fund. Series E units are nt available t an investr enrlled in the Large Accunt Prgram unless the investr chses t permanently leave the Large Accunt Prgram in rder t hld Series E units. Series F units are nly available t investrs whse dealers have entered int apprpriate eligibility agreements with Fidelity. Investrs may buy Series F units in fee-based accunts at their dealers, where they pay fees directly t their dealers. Investrs may als buy Series F units and pay fees t their dealers by entering int advisr service fee agreements that authrize Fidelity t redeem Series F units frm their accunts that have a value equal t the amunt 17 f the fees payable by them t their dealers, plus applicable taxes, and t pay the prceeds t their dealers. Series O units f the Funds are nly available t institutinal investrs wh may be individuals r financial institutins wh have been apprved by us and have entered int series O fund purchase agreements with us. Investrs cannt make an initial direct purchase int any f the Series P units. Series P units are available nly t investrs wh hld Series F units and then becme eligible t hld Series P units based n the value f their hldings in the Fidelity Funds. These units are available in multiple tiers accrding t the value f this investment. Once an investr hlds Series P units, the investr can then buy directly additinal Series P units f the applicable tier f the same Fund r any ther Fidelity Fund. Series P units are nt available t an investr enrlled in the Large Accunt Prgram unless the investr chses t permanently leave the Large Accunt Prgram in rder t hld Series P units. See the sectin Specific infrmatin abut each f the mutual funds described in this dcument fr mre infrmatin abut the series that yu can invest in. Yu can buy, redeem r switch units f the Funds thrugh any registered dealer. When yu buy, redeem r switch units f a Fund, we have t determine what they re wrth. We d this by calculating the net asset value per unit. The net asset value per unit is the basis f all transactins invlving buying, redeeming, switching r reinvesting units. See the Incme tax cnsideratins fr investrs sectin fr further details abut the tax cnsequences f buying, redeeming r switching units. Figuring ut the net asset value per unit Here s hw we calculate the net asset value per unit fr each series f a Fund: We take the series prprtinate share f all the investments and ther assets f the Fund. We subtract the series liabilities and its prprtinate share f cmmn Fund liabilities. That gives us the net asset value fr the series.

20 Purchases, switches and redemptins (cntinued) We divide that number by the ttal number f units investrs in that series hld. That gives us the net asset value per unit. Fund are nt currently available fr purchase in U.S. dllars. We may ffer the U.S. dllar ptin in respect f additinal series f the Funds in the future. T determine what yur mutual fund investment is wrth, simply multiply the net asset value per unit fr the series f units yu wn by the number f units yu wn. We buy, switch r redeem units fr yu n any day that the Trnt Stck Exchange, r TSX, is pen fr trading. This is called a valuatin day. A valuatin day usually ends at 4 p.m. Trnt time, unless the TSX clses earlier n that day. We calculate the value f a Fund s units n each valuatin day. In rder t cmplete yur transactin, we use the first net asset value per unit that we calculate after receiving yur instructins. We aren t able t calculate the price f a series f a Fund n a valuatin day if it hlds an underlying fund and the security price f that underlying fund is nt calculated n that valuatin day. Minimum accunt size Due t the high cst f administering accunts, yu must keep at least $500 in yur accunt. If yur accunt falls belw this amunt, we may decide t redeem yur units. We give yu 30 days t bring the value f yur accunt up t $500 befre we redeem yur units. The Funds and certain series f the Funds may als be subject t minimum investment amunts. These amunts are determined frm time t time by us, in ur sle discretin. They may als be waived by us, and are subject t change withut prir ntice. The current minimum initial investment amunts are set ut n ur website at U.S. Dllar Optin The Funds are valued, and can be bught, in Canadian dllars. In additin, sme series f Fidelity Investment Grade Ttal Bnd Fund can be bught in U.S. dllars as well as Canadian dllars, as indicated in the Fund details sectin f its prfile. The Canadian dllar net asset value fr Fidelity Investment Grade Ttal Bnd Fund is cnverted t U.S. dllars at the prevailing exchange rate fr a valuatin day in rder t determine the applicable U.S. dllar net asset value. Series f Fidelity Investment Grade Ttal Bnd Currency Neutral Fr tax purpses, capital gains and lsses are calculated in Canadian dllars. As a result, if yu buy and redeem units under the U.S. dllar ptin, yu need t calculate gains r lsses based n the Canadian dllar value f yur units when they were purchased and when they were sld. In additin, althugh distributins are made in U.S. dllars, they must be reprted in Canadian dllars fr Canadian tax purpses. Cnsequently, all investment incme is reprted t yu in Canadian dllars fr incme tax purpses. Yu may want t cnsult yur tax advisr regarding this. Our U.S. dllar ptin is ffered nly as a cnvenience. It allws yu t invest in certain Funds using yur American mney. If yu buy yur units in U.S. dllars, yu receive U.S. dllars when yu redeem them r receive distributins frm the Fund. Buying yur units in U.S. dllars des nt affect the investment return f yur Fund and, in particular, des nt hedge r prtect against lsses caused by changes in the exchange rate between the Canadian and U.S. dllars. If yu wish t reduce yur expsure t currency fluctuatins, yu shuld cnsider an investment in a Fidelity currency neutral fund. Abut sales charges Yu may pay a cmmissin t invest in Series A, B, E1, E2, E3, E4 and E5 units f the Funds. This cmmissin is als called a sales charge. The cmmissin cmpensates yur financial advisr fr the advice and service he r she prvides t yu. Yu can chse t purchase yur units under a purchase ptin fr which the sales charges may be payable at the time f purchase. This is called an initial sales charge, and the amunt yu pay is negtiable with yur financial advisr. Alternatively, yu can chse t wait until yu redeem yur units and pay a percentage f their riginal cst t us at that time. This is called a deferred sales charge. Series A units are available nly under a deferred sales charge ptin. Series B, E1, E2, E3, E4 and E5 units are available nly under the initial sales charge ptin. 18

21 Yu dn t pay any sales charges if yu invest in Series F, O, P1, P2, P3, P4 r P5 units, which are nly available t certain investrs. Paying when yu buy yur units If yu buy units under the initial sales charge ptin, yu may pay a sales charge at the time yu purchase yur units. Yu and yur financial advisr need t negtiate the level f the initial sales charge. See the Fees and expenses sectin fr details. We may deduct the percentage frm the amunt yu invest and pay it t yur financial advisr s dealer. See the Dealer cmpensatin sectin fr details. Paying when yu redeem yur units If yu chse t buy units under the deferred sales charge ptin, we arrange fr a cmmissin payment t yur dealer at the time that yu buy yur units. See the Dealer cmpensatin sectin fr details. When yu redeem yur units, we deduct the sales charge, if any, as a percentage f the cst f yur units at the time yu bught them. This charge, which is paid t us, is called a deferred sales charge because yu put ff paying it. The charge gets lwer the lnger yu hld yur units. Under the deferred sales charge ptin, the charge declines t 0% after six years, under the lw lad deferred sales charge ptin, the charge declines t 0% during the third year, and under the lw lad 2 deferred sales charge ptin, the charge declines t 0% during the furth year. Yu can find the schedules fr these deferred sales charge ptins in the Fees and expenses sectin. Yu d nt pay a deferred sales charge if yu: Switch units frm ne Fund t anther Fidelity Fund (but a switch fee is pssible). Chse t receive distributins in cash. Redeem units yu received frm reinvested distributins. Switching yur deferred sales charge units If yu purchase Series A units under a deferred sales charge ptin, r if yu buy them under yur Fidelity ClearPlan Custm Fund Prtflis prgram, yu may elect t have yur units switched t Series B units, which have lwer management fees, at any time after yur deferred sales charge redemptin fee schedule expires. Fr units purchased under the deferred sales charge ptin, this means that yu can make this electin starting six years after the time f purchase. Fr lw lad deferred sales charge units, yu can make this electin starting tw years after the time f purchase, and fr lw lad 2 deferred sales charge units, yu can make this electin starting three years after the time f purchase. Alternatively, if yu purchase Series A units under a deferred sales charge ptin, r if yu buy them under yur Fidelity ClearPlan Custm Fund Prtflis prgram, yur units are autmatically switched t Series B units, which have lwer management fees, ne year after yur redemptin fee schedule expires. Fr units purchased under the deferred sales charge ptin, this means that yur units are switched seven years after the time f purchase. Fr lw lad deferred sales charge units, yur units are switched three years after the time f purchase, and fr lw lad 2 deferred sales charge units, yur units are switched fur years after the time f purchase. These autmatic switches are nt implemented if the value f the units t be switched is less than five dllars, but are implemented nce the value f the units t be switched is five dllars r mre. See the schedules fr these deferred sales charge ptins in the Fees and expenses sectin. 10% free amunt Every calendar year, yu can redeem up t 10% f the riginal cst f yur Series A units that wuld therwise be subject t the deferred sales charge at n charge. Yu can als switch these units t Series B units, which have lwer management fees and d nt have a deferred sales charge. We call this the 10% free amunt. The 10% free amunt is calculated based n the riginal cst f the units. Redemptins f yur 10% free amunt reduce yur riginal cst (unless yur 10% free amunt includes the redemptin 19

22 Purchases, switches and redemptins (cntinued) f units yu received frm reinvested distributins). Fr example, if yu invest $10,000 in year 0, in year 1 yu can redeem $1,000 (i.e., 10% f $10,000) withut paying a deferred sales charge. In year 2 (prvided yu have nt received any distributin in cash r redeemed units yu received frm reinvested distributins) yu can redeem $900 (i.e., 10% f $9,000) withut paying a deferred sales charge. Yu can use up yur 10% free amunt fr a year in ne redemptin r ne switch, r spread it ut ver several redemptins r switches, whichever yu prefer. Yu can t carry frward an unused amunt t the next year. Hwever, if yu have used sme r all f yur 10% free amunt and then receive distributins in cash that cause yu t exceed yur 10% free amunt in a year, we may reduce yur 10% free amunt by that excess amunt the fllwing year. We d nt autmatically switch the 10% free amunt f units purchased under the deferred sales charge ptin t initial sales charge units, s yu may wish t switch thse units in rder nt t lse that entitlement. Units purchased under the lw lad deferred sales charge ptin r the lw lad 2 deferred sales charge ptin are nt eligible fr the 10% free amunt. Yu use up sme f yur 10% free amunt if yu: Chse t receive distributins in cash. We reduce yur 10% free amunt by the amunt f the distributin. Redeem units yu received frm reinvested distributins. We reduce yur 10% free amunt by the value f these units at the time they are reinvested. If yu switch units f ne Fund t anther Fidelity Fund, we transfer the 10% free amunt n the riginal units yu held t the new units that yu acquire. Order f redemptins We fllw the principles listed belw t reduce yur redemptin charges fr units purchased under the deferred sales charge ptin: First, we redeem any f yur 10% free amunt that is available (this reduces the amunt f units yu receive frm reinvested distributins that are available fr redemptin). Then, we redeem the remaining units yu received frm reinvested distributins. Next, units held fr the lngest time perid are redeemed first, and units held fr the shrtest time perid are redeemed last. Receiving yur distributins in cash r redeeming reinvested distributins reduces yur 10% free amunt fr the year. Since the 10% free amunt is nt available fr the lw lad deferred sales charge ptin and the lw lad 2 deferred sales charge ptin, we first redeem the units yu received frm reinvested distributins, and then units held fr the lngest time perid are redeemed first and units held fr the shrtest time perid are redeemed last. Hw t buy Funds If we receive yur rder befre 4 p.m. Trnt time n a valuatin day (which is any day that the TSX is pen fr trading), we prcess yur rder as f that valuatin day and yu pay the net asset value per unit calculated n that valuatin day fr the units that yu buy. Otherwise, we prcess yur rder as f the next valuatin day. If the TSX clses earlier than 4 p.m. n a valuatin day, we may impse an earlier deadline fr that valuatin day. Any rder received after this earlier deadline is prcessed as f the next valuatin day. Fr mre infrmatin n hw we calculate the net asset value per unit n a valuatin day, see Figuring ut net asset value per unit earlier in this sectin. Yu have t pay fr yur units when yu buy them. We d nt accept cash, mney rders r traveller s cheques fr the purchase f units. If we dn t receive payment in full within tw business days f receiving yur rder, we redeem the units that yu bught n the next valuatin day r when we first learn that yur payment will nt be hnured. A business day is any day except, Saturday, Sunday r a Canadian hliday. If we redeem the units fr mre than yu paid, the Fund keeps the difference. If we redeem the units fr less than yu paid, we charge yur dealer fr the difference, plus any csts. Yur dealer may be entitled t recver any lss frm yu. If we receive yur payment, but the dcumentatin in respect f yur purchase fr a Fidelity registered plan is incmplete r missing instructins, we may invest yur mney in Series B units f Fidelity Canadian Mney Market 20

23 Fund (which are ffered under a separate simplified prspectus) at n sales charge. An investment in Fidelity Canadian Mney Market Fund earns yu daily interest until we receive cmplete instructins frm yu regarding which Fund(s) yu have selected, and all dcumentatin in respect f yur purchase is received in gd rder. Yur ttal investment, including any interest, is then switched int the Fund(s) yu chse under the sales charge ptin that yu selected at the unit price f the Fund(s) n the date f the switch. What else yu need t knw Here are sme ther imprtant facts abut buying the Funds: Yu receive a cnfirmatin nce we prcess yur purchase. The cnfirmatin is a recrd f yur purchase, and includes details abut the units that yu bught and any cmmissin that yu paid. If yu buy units thrugh ur pre-authrized chequing plan, yu receive a cnfirmatin fr yur first purchase. After that, yu receive regular accunt statements. Yu d nt receive a cnfirmatin when yur Series A deferred sales charge units are autmatically switched t Series B initial sales charge units. Units purchased under a deferred sales charge ptin cannt be switched fr units under a different deferred sales charge ptin. Fr example, units purchased under the lw lad deferred sales charge ptin cannt be switched fr units under the lw lad 2 deferred sales charge ptin. We dn t issue a certificate when yu buy units f the Funds. Instead, yu get regular statements shwing hw many units yu wn and their value. We may refuse any rder t buy within ne business day f receiving it. If we refuse yur rder, we return yur mney t yu. Investrs cannt make an initial direct purchase int Series E r P units f a Fund. Series E units are available nly t investrs wh hld Series B units and then becme eligible fr Series E units. Series P units are available nly t investrs wh hld Series F units and then becme eligible fr Series P units. Once an investr hlds Series E r P units, the investr can buy directly the applicable tier f Series E r P units f the same Fund r any ther Fidelity Fund. We may require investrs wh are U.S. citizens r freign investrs t redeem their units if their participatin has the ptential t cause regulatry r tax prblems. We may be required t withhld taxes n distributins and/r redemptin prceeds paid t U.S. citizens r freign investrs. Speak with yur financial advisr fr details. We dn t accept rders t buy units during a perid when we ve suspended unithlders right t redeem units. See Suspending yur right t redeem units later in this sectin. Switching t anther series f the same Fund The fllwing switches are permitted between series f the same Fund. Switching Series A units Yu can switch frm Series A units that yu bught under a deferred sales charge ptin t Series O units f the same Fund. Yu may have t pay a fee t yur dealer. Yu negtiate that fee with yur financial advisr. See the Fees and expenses sectin fr details. Yu can als switch t Series B r F units prvided that yur redemptin fee schedule has expired. See Switching yur deferred sales charge units in this sectin fr details. Yu can nly switch t Series F units if yu re eligible fr these series r t Series O units with ur apprval. Switching Series B units Yu can switch frm Series B units that yu bught under the initial sales charge ptin t F r O units f the same Fund. Yu may have t pay a fee t yur dealer. Yu 21

24 Purchases, switches and redemptins (cntinued) negtiate that fee with yur financial advisr. See the Fees and expenses sectin fr details. When we launch Series E r P units f a Fidelity Fund fr which yu are eligible. Yu can nly switch t Series F units if yu re eligible fr these series r t Series O units with ur apprval. Switching Series E and P units Prvided yur dealer enters int the apprpriate eligibility agreement with Fidelity and can supprt Series E r P units, we autmatically switch yur: Series B units t the apprpriate tier f the applicable Series E units. Series F units int the apprpriate tier f the applicable Series P units. We d these autmatic switches when yur hldings in the Funds and ther Fidelity Funds exceeds $250,000 fr an individual r $500,000 fr a Series E/P financial grup. See the Fees and expenses sectin fr details. If yu hld units f a Fund fr which the apprpriate tier f Series E r P units is nt available, yur units are switched int the tier with the lwest cmbined management and advisry and Administratin Fee that is available fr that Fund. Switches between Series E r P tiers are als autmatic, s an investr is always in the Series E r P tier with the lwest cmbined management and advisry fees and Administratin Fees that the investr is eligible fr, prvided a Fund ffers that tier. The fllwing table sets ut the investment threshlds fr each tier. Series Tier E1 r P1 $250,000 - $999,999 E2 r P2 $1,000,000 - $2,499,999 E3 r P3 $2,500,000 - $4,999,999 E4 r P4 $5,000,000 - $9,999,999 E5 r P5 $10,000,000+ Additinal Series E and P tiers may be made available frm time t time. The series currently available fr each Fund are set ut in the Fund s prfile. Autmatic switches generally take place in the fllwing circumstances: When yu purchase r redeem Fidelity Fund securities that mve yu int, amng, r ut f Series E r P tiers. When yur Series E/P financial grup is created r changes in a way that mves yu int, amng, r ut f Series E r P tiers. In additin, Fidelity autmatically switches yur units n the secnd Friday f each mnth if psitive market mvement has mved yu int r amng Series E r P tiers and yur units have nt been autmatically switched by any f the ther circumstances described abve. Yu can switch frm Series E and P units t Series B, F r O units f the same Fund. Yu may have t pay a fee t yur dealer. Yu negtiate that fee with yur financial advisr. See the Fees and expenses sectin fr details. Yu can nly switch yur Series E units t Series F units if yu re eligible fr these series r t Series O units with ur apprval. Switching Series F units Yu can switch frm Series F units t Series B r O units f the same Fund. Yu may have t pay a fee t yur dealer. Yu negtiate that fee with yur financial advisr. See the Fees and expenses sectin fr details. Yu can nly switch t Series O units with ur apprval. N fee is payable fr this switch. Switching Series O units Yu can switch frm Series O units t Series A, B r F units f the same Fund. Yu may have t pay a fee t yur dealer. Yu negtiate that fee with yur financial advisr. See the Fees and expenses sectin fr details. Yu can nly switch t Series F units if yu are eligible fr these series. N fee is payable fr this switch. What else yu need t knw Switches f units f a Fund frm ne series t anther series f the same Fund d nt result in a dispsitin fr tax purpses, unless units are redeemed t pay fees. The amunt f yur investment, less any fee that is paid by redeeming units, will be the same after the switch. Yu will, hwever, wn a different number f units because each series has a different unit price. 22

25 Switching units t anther Fidelity Fund Yu can switch units f a Fund fr units f anther Fidelity Fund, including anther Fund, by redeeming units f the Fund and using the prceeds t buy units f the ther Fidelity Fund. Yu may have t pay yur dealer a switch fee. Yu negtiate that fee with yur financial advisr. A shrt-term trading fee may als be payable. See the Fees and expenses sectin fr details. The switch is dne n the same sales charge ptin basis that the riginal units were bught under. If yu bught units f the riginal Fund under a deferred sales charge ptin, yu dn t pay a deferred sales charge when yu d the switch. If yu redeem units f the secnd Fidelity Fund later n, yu pay a deferred sales charge based n the date when yu bught units f the first Fund. See the Dealer cmpensatin sectin fr details. If yu hld Series E r P units f a Fund and switch int a Fund that des nt ffer an equivalent Series E r P tier, yur units are switched t the Series E r P tier with the lwest cmbined management and advisry fees and Administratin Fee that is available fr that Fund. If n Series E units are ffered by the Fund that yu are switching int, yu are switched t Series B units. If n Series P units are ffered by the Fund that yu are switching int, yu are switched t Series F units. If a tier f Series E r P units with lwer cmbined management and advisry fees and Administratin Fee fr which yu are eligible is launched by the Fund at a later date, yur Series E r P units will be autmatically switched t that mre apprpriate tier. Switching units f a Fund fr units f anther Fidelity Fund is a dispsitin and acquisitin fr tax purpses and may trigger a capital gain r lss. Any capital gain realized n units yu hld utside a registered plan may be subject t tax. Fr mre infrmatin abut hw capital gains are taxed, see the Incme tax cnsideratins fr investrs sectin. Hw t redeem the Funds Yu can cash in yur Fund by selling yur units back t the Fund. This is called a redemptin. Yu receive the net asset value per unit calculated n the valuatin day we receive yur rder t redeem yur units. We deduct any deferred sales charge r fees and send yu the balance. Yu must put yur rder t redeem in writing and sign it. An acceptable guarantr must guarantee yur signature if the redemptin is fr $25,000 r mre. If a crpratin, partnership, agent, fiduciary r surviving jint wner hlds the units, we may als ask fr ther dcuments. If we receive yur rder befre 4 p.m. Trnt time n a valuatin day (which is any day the TSX is pen fr trading), we prcess yur rder as f that valuatin day. Otherwise, we prcess yur rder as f the next valuatin day. If the TSX clses earlier than 4 p.m. n a valuatin day, we may impse an earlier deadline fr that valuatin day. Any rder received after this earlier deadline is prcessed as f the next valuatin day. See Figuring ut the net asset value per unit in this sectin fr mre infrmatin n hw we calculate the net asset value per unit n a valuatin day. Yu receive yur mney back in the same currency yu used t buy the Fund. We may charge yu a fee f up t $25 if yu request yur mney back by cheque. There is n fee fr electrnic depsits. We dn t prcess rders t redeem fr: A past date. A future date. A specific price. Any units that haven t been paid fr. We send yu yur mney within tw business days f receiving yur rder, as lng as yur rder is cmplete. Fr units denminated in U.S. dllars, if the settlement day is a U.S. hliday, we send yur mney n the next business day that is nt a U.S. hliday. A business day des nt include Saturdays, Sundays r Canadian hlidays. If we dn t receive yur prperly cmpleted rder within 10 business days f the sale, we buy back the units yu sld n the next valuatin day. If we buy them back fr less than yu sld them fr, the Fund keeps the difference. If we buy them back fr mre than yu sld them fr, we charge yur dealer fr the difference, plus any csts. Yur dealer may be entitled t recver any lss frm yu. 23

26 Purchases, switches and redemptins (cntinued) We may charge yu a deferred sales charge r a switch fee, alng with a shrt-term trading fee, when yu redeem r switch units. See the Fees and expenses sectin fr details. Where the hlding f units by a unithlder is, in the reasnable pinin f Fidelity, detrimental t a Fund, Fidelity is entitled t redeem the units held by the unithlder. Suspending yur right t redeem units On rare ccasins, we may temprarily suspend yur right t redeem yur Fund units and pstpne paying yur sale prceeds. We can nly d this under the fllwing circumstances: If nrmal trading is suspended n any exchange n which securities r derivatives that make up mre than half f the Fund s ttal assets by value are traded and these securities r derivatives aren t traded n any ther exchange that is a reasnable alternative fr the Fund. If we receive permissin frm the Ontari Securities Cmmissin. If the right t redeem units f an underlying fund is suspended, we autmatically suspend the redemptin f units f any Fund that is linked t that underlying fund. If we receive yur rder t redeem n a day when we ve suspended the calculatin f net asset value per unit, yu can withdraw yur rder befre the end f the suspensin perid r yu can redeem yur units based n the net asset value per unit calculated n the first valuatin day after the suspensin ends. Shrt-term trading In general, the Funds are cnsidered lng-term investments. Inapprpriate shrt-term r excessive trading can hurt a Fund s perfrmance by frcing the prtfli management team t keep mre cash in the Fund than wuld therwise be needed, r t sell investments at an inapprpriate time, and may als increase the Fund s transactin csts, affecting all investrs f that Fund. Fidelity has adpted plicies and prcedures t mnitr, detect, and deter shrt-term r excessive trading. These plicies and prcedures are designed t prtect unithlders frm ther investrs mving quickly in and ut f the Funds. A shrt-term trading fee may be charged t deter individuals frm using the Funds as shrt-term investment vehicles. See the Fees and expenses sectin fr details. Shrt-term trading fees are paid t the Fund affected, and are in additin t any sales charge r switch fee. The fee is deducted frm the amunt yu redeem r switch, r it is charged t yur accunt, and is retained by the Fund. The types f trades that the shrt-term trading fee dn t apply t include: If yu redeem r switch units purchased by reinvesting distributins. Switches t different series within the same Fund, including when yu are autmatically switched int, amng, r ut f Series E r P tiers. Units sld as part f a fund-f-fund prgram r a similar pled investment prgram. Units sld fr retirement incme fund r life incme fund payments. Units sld fr systematic transactins, such as autmatic exchanges, pre-authrized chequing plans, and systematic withdrawal prgrams. Currency exchange transactins. Units sld t pay management fees, Administratin Fees, service fees, perating expenses, r Fund Csts. Units sld as part f the Fidelity ClearPlan Custm Fund Prtflis prgram. Payments made as a result f the death f the unithlder. In additin, Fidelity may cnsider the fllwing when determining whether a shrt-term trade r excessive trade is inapprpriate r excessive: Bna fide changes in unithlder circumstances r intentins. Unanticipated financial emergencies. 24

27 While we actively take steps t mnitr, detect, and deter shrt-term r excessive trading, we cannt ensure that all such activity is cmpletely eliminated. Sizable transactins In general, sizable transactins by certain investrs can disadvantage ther investrs in a Fund. Fidelity has adpted plicies and prcedures t help minimize the ptential impact f sizable purchases and redemptins by an investr n a Fund s ther unithlders. A retail investr will be deemed t becme a sizable investr (a Sizable Investr ) under the plicies and prcedures when a purchase/switch int a Fund will cause the investr t wn: applied will nt exceed 1% f the value f the units sld/switched. Where a Fund invests substantially all f its assets in ne underlying Fidelity Fund, we calculate the freging threshlds and ntice perids using the ttal net assets f the underlying Fidelity Fund. See Large transactin risk in What is a mutual fund and what are the risks f investing in a mutual fund, Shrt-term trading fee and Fee fr sizable redemptins in Fees and expenses fr further details. Mre than $5 millin where the Fund s ttal net assets are less than $100 millin; r Mre than 5% f the Fund where the Fund s ttal net assets are equal t r greater than $100 millin. We will ntify yu nce yu becme a Sizable Investr in a Fund. If yu are a Sizable Investr, yu will be required t prvide ntice t Fidelity f sizable redemptins as fllws: Three business days ntice fr redemptins cnstituting 3% r greater, but less than 10% f the Fund s ttal net assets; and Five business days ntice fr redemptins cnstituting 10% r greater f the Fund s ttal net assets. On r after April 1, 2017, Sizable Investrs f a Fund will be subject t a 1% penalty f the value f the units that they sell/switch if they sell/switch their units f the Fund within 30 days f their mst recent purchase/switch int the Fund. Sizable investrs may be subject t a 1% penalty f the value f the units if they fail t prvide the required ntice t Fidelity prir t cmpleting a sizable redemptin. This fee ges t the Fund. If the sell/switch transactin wuld be subject t bth a sizable redemptin fee and a shrt-term trading fee, the Sizable Investr will nly be subject t the sizable redemptin fee. Fr greater certainty, the ttal penalty 25

28 Optinal services We ffer the fllwing plans t make it easier t buy and redeem the Funds. T sign up fr a plan, cntact yur financial advisr r call us fr details. Pre-authrized chequing plan Our pre-authrized chequing plan lets yu invest a small amunt at regular intervals. This can be an affrdable and effective way t build yur investments. Putting a little away at a time is a gd way t get int the habit f investing. Here are sme facts abut ur pre-authrized chequing plan: Yu can invest as little as $25 each time. Just tell us hw much yu want t invest and when. We withdraw the mney directly frm yur bank accunt and invest it in the Funds yu chse. Yu can change hw much yu invest and hw ften, r cancel the plan, whenever yu like. There are n fees fr the plan, ther than any sales charges. When yu enrl in ur pre-authrized chequing plan, yu receive a cpy f the Funds mst recently filed fund facts. Thereafter, we nly send yu the mst recently filed fund facts upn request. Yu can request that a cpy f the mst recently filed fund facts be sent t yu at the time yu enrl in ur pre-authrized chequing plan, r at any time thereafter, by calling us tll-free at , by sending us an at cs.english@fidelity.cm (fr assistance in English) r sc.francais@fidelity.cm (fr assistance in French), r by asking yur financial advisr. Yu can als find the mst recently filed fund facts at r n ur website at Systematic withdrawal prgram Our systematic withdrawal prgram lets yu withdraw a fixed amunt frm yur Funds at regular intervals. This is an easy way t receive cash, while giving the rest f yur mney the chance t grw. Here are sme facts abut ur systematic withdrawal prgram: The systematic withdrawal prgram is available fr nn-registered accunts nly. Yu can take ut as little as $50 each time, as lng as yu have at least $5,000 in yur accunt when yu start the withdrawal prgram. Yu chse when yu receive yur mney e.g., mnthly, quarterly, r every six mnths. We send yu a cheque r depsit the mney directly int yur bank accunt. We may charge yu a fee f up t $25 if yu request yur payment by cheque. There are n ther fees r charges fr the withdrawal prgram ther than any deferred sales charges r shrt-term trading fees, if applicable. Yu can cancel the withdrawal prgram by telling us in writing. It s imprtant t remember that if yur regular withdrawals are mre than what yur Fund is earning, yu ll eventually use up yur riginal investment. Systematic exchange prgram Our systematic exchange prgram lets yu mve mney frm ne Fund t anther Fund at regular intervals. Here are sme facts abut ur systematic exchange prgram: Yu have a statutry right t withdraw frm an initial purchase f the Funds under ur pre-authrized chequing plan, but yu d nt have a statutry right t withdraw frm subsequent purchases f the Funds under the preauthrized chequing plan. Hwever, yu cntinue t have all ther statutry rights under securities law, including a misrepresentatin right as described in the sectin What are yur legal rights?, whether r nt yu have requested the mst recently filed fund facts. Systematic exchanges can be prcessed fr either a fixed dllar amunt r a specific number f units. Yu chse hw ften the exchange ccurs e.g., twice a mnth, mnthly, every tw mnths, quarterly, semi-annually r annually. Yu may be charged a shrt-term trading fee r yu may have t pay yur dealer a switch fee when yu 26

29 switch units frm ne Fund t anther Fund. See the Fees and expenses sectin fr details. Systematic exchanges may trigger capital gains r capital lsses. Fidelity ClearPlan Custm Fund Prtflis Our Fidelity ClearPlan Custm Fund Prtflis ( ClearPlan ) prgram lets yu invest in any number f Fidelity Funds (ther than the Fidelity ClearPath Retirement Prtflis, which are ffered under a separate simplified prspectus) with specific target fund allcatins selected by yu. In this way, with the help f yur financial advisr, yu can create yur wn custmized prtfli f investments. We then rebalance yur hldings frm time t time, based n yur chsen frequency and deviatin, in rder t make sure that yur prtfli mix is allcated in accrdance with yur instructins. Rebalancing may trigger capital gains r lsses. Prgram ptins The ClearPlan prgram has tw types f rebalancing ptins yu can chse frm. Fixed rebalancing ptin Yu can chse which Fidelity Funds yu want t invest in, and fix the percentages t be invested in each Fidelity Fund. We then see t it that yur prtfli is rebalanced back t yur specified target allcatins, either quarterly, semi-annually, r annually. This is knwn as the fixed rebalancing ptin. This prgram can be fr an indefinite perid, and yu can change yur specified target allcatins r rebalancing frequency at any time. Custm rebalancing ptin Alternatively, yu can have a custmized prtfli f Fidelity Funds with target fund allcatins that change ver a designated perid f time. Yu specify what yur prtfli shuld cnsist f at the time yu start, bth in terms f asset mix and fund selectin, and what it shuld lk like by the time the end date is reached. Yu can als select up t five specific prtfli mixes fr different pints in time between the start and end dates. We see t it that yur prtfli is rebalanced t reflect the different prtfli mixes yu selected fr each designated pint in time. This is knwn as the custm rebalancing ptin. This prgram must be fr a perid f at least 3 years and fr n lnger than 60 years. Fund eligibility All f ur Canadian dllar-denminated Fidelity Funds (ther than the Fidelity ClearPath Retirement Prtflis, which are ffered under a separate simplified prspectus), in all series except Series O units, are eligible fr this prgram. Any Fidelity Fund where yur investment is made in U.S. dllars is nt eligible t be included in this service. Yu may als hld Fidelity Funds separate and apart frm yur ClearPlan Prtfli if yu chse. Hw t participate T participate in this prgram, yu must have a minimum f $10,000 t invest in yur ClearPlan prtfli, and yu must cmplete and sign ur applicatin frm made specifically fr this prgram. By cmpleting the applicatin, yu authrize us t mnitr yur ClearPlan prtfli, and t rebalance it at intervals selected by yu, which can be quarterly, semi-annually, r annually, s that yur ClearPlan prtfli is allcated in accrdance with yur instructins. In rder t facilitate investing in the service, we have created tw special series f Fidelity Canadian Mney Market Fund - Series C and D, which are ffered under a separate simplified prspectus. Series C units can nly be purchased under a deferred sales charge ptin and Series D units can nly be purchased under the initial sales charge ptin. When yu enrl in the prgram, yur investment is placed initially in units f ne f these tw series. The chice yu make regarding whether t purchase Series C r D units f Fidelity Canadian Mney Market Fund shuld crrespnd with yur preferred sales charge ptin fr the Fidelity Funds that will cmprise yur prtfli. Upn activatin f yur rebalancing prgram, yur Series C r D units f Fidelity Canadian Mney Market Fund are autmatically redeemed (at n charge), and the prceeds are allcated amng the varius Fidelity Funds yu have elected t include in yur rebalancing prtfli. Series C and D units f Fidelity Canadian Mney Market Fund are 27

30 Optinal services (cntinued) nly fr use with the prtfli rebalancing prgram. If yu are invested in ne r bth f these series, and have nt activated yur rebalancing prgram within 90 days, yu are autmatically switched t Series A r B units (based n yur sales charge ptin) f Fidelity Canadian Mney Market Fund. Shrt-term trading fees, discussed in the Fees and expenses sectin, are nt payable fr trades made as part f yur prtfli rebalancing prgram prtfli while yu are enrlled in the ClearPlan prgram. Yu d nt pay a switch fee when yu switch Series C r D units f Fidelity Canadian Mney Market Fund t any ther Fidelity Fund as part f yur prtfli rebalancing prgram. Here are sme ther facts abut ur ClearPlan prgram: We nly act n yur standing trade instructins, which must be given t us by yur financial advisr. Yur financial advisr can help yu with yur selectin f Fidelity Funds t make sure that they are suitable fr yu, as well as with yur chice f rebalancing ptins and frequency. Yur financial advisr, as yur agent, and nt Fidelity, is respnsible fr assessing yur cntinued suitability fr this prgram. Rebalancing ccurs at the intervals yu specify, prvided the market value f yur hldings is between tw and ten percentage pints (yu select the deviatin, which must be in increments f 0.5 percentage pints) abve r belw yur stated target allcatin at the time. Yu tell us if yu want the rebalancing dne quarterly, semi-annually, r annually. If yu redeem all f yur investments in a Fund that was part f yur target fund allcatin withut prviding us with new standing instructins thrugh yur financial advisr, then at the time f yur next scheduled rebalancing, we rebalance the remaining Fidelity Funds in yur prtfli and prprtinately reallcate yur investments amng the same Fidelity Funds in yur target fund allcatin (which wuld include the Fidelity Fund fr which yu wuld have just redeemed yur units). Yu always retain the ptin f changing yur target allcatin, rebalancing ptins, r rebalancing frequency f yur prtfli by prviding written instructins t us thrugh yur financial advisr. Yu may als request a manual rebalancing f yur prtfli utside f the scheduled autmatic rebalancing perid at any time. In sme cases, a manual rebalancing may trigger shrt-term trading fees. See the Purchases, switches and redemptins sectin fr details f ur shrt-term trading plicy. There are n separate fees fr this prgram. Any applicable Fidelity Fund charges apply. Rebalancing transactins culd trigger a capital gain r lss. All f the terms and cnditins f the prgram are n ur applicatin frms, which are available frm yur financial advisr r n ur website at Registered plans Registered plans receive special treatment under the Incme Tax Act (Canada) (the Tax Act ). A key benefit is that generally yu dn t pay tax n the mney earned in these plans until yu withdraw the mney frm the registered plans. Earnings withdrawn frm yur Tax-Free Savings Accunts are nt subject t tax. In additin, cntributins t an RRSP are deductible frm yur taxable incme, up t yur allwable limit. We ffer the fllwing Fidelity registered plans: Registered Retirement Savings Plans (RRSPs). Lcked-in Retirement Accunts (LIRAs). Lcked-in Retirement Savings Plans (LRSPs). Restricted Lcked-in Savings Plans (RLSPs). Registered Retirement Incme Funds (RRIFs). Life Incme Funds (LIFs). Lcked-in Retirement Incme Funds (LRIFs). Prescribed Retirement Incme Funds (PRIFs). Restricted Life Incme Funds (RLIFs). Tax-Free Savings Accunts (TFSAs). 28

31 Registered Educatin Savings Plans (RESPs) (with the ability t accept supplemental grants frm Saskatchewan, British Clumbia and Quebec). Yu can pen any f these plans by investing in any f the Funds. There are n annual administratin fees r fees t pen, maintain, r clse a plan. Cntact Fidelity r yur financial advisr fr mre infrmatin abut these plans. 29

32 Fees and expenses The fees and expenses yu may have t pay if yu invest in the Funds are shwn in each Fund s prfile. Yu may have t pay sme f these fees and expenses directly. The Funds pay sme f these fees and expenses, which reduce the value f yur investment. Fees and expenses payable by the Fund Management and Advisry Fees Each Fund pays annual management and advisry fees fr the management f the Fund, and fr the investment management f its prtfli. The fees are used t pay expenses, like emplyee salaries, research csts, trailing cmmissins, and prmtinal expenses. The fees are calculated as a percentage f the net assets f each series f the Fund (except Series O units), and are accrued daily and paid mnthly. The management and advisry fees are subject t harmnized sales tax and ther applicable taxes, called Sales Tax. In sme cases, Fidelity may waive its right t receive a prtin f the management and advisry fees. The annual management and advisry fees fr each series f units f a Fund, ther than Series O, is shwn in each Fund s prfile. We charge a negtiated management fee directly t investrs in Series O units f the Funds (which fee is n greater than the maximum f the Series F annual management and advisry fee), 30

33 Operating expenses All series, except Series O Fr each series f the Funds, except Series O, Fidelity pays all f the perating expenses (including fr services prvided by Fidelity and/r its affiliates), except fr certain csts described belw that we refer t as Fund Csts, in exchange fr a fixed rate administratin fee that we refer t as the Administratin Fee. The Administratin Fee is paid by the Funds in respect f these series. The Administratin Fee is subject t Sales Tax. The Fund Csts include the fllwing: The fees and expenses f the IRC, which includes cmpensatin paid t IRC members as an annual retainer, as well as per meeting attendance fees, and the reimbursement f applicable expenses f IRC members. Taxes, including incme tax and Sales Tax n fees and expenses paid by the Funds. Prtfli transactin csts, including brkerage cmmissins and ther securities transactin related expenses, including the csts f derivatives and freign exchange transactins. Interest and brrwing csts. Any new fee related t external services that was nt cmmnly charged in the Canadian mutual fund industry as f September 10, The csts f cmplying with any new regulatry requirement, including any new fee intrduced after September 10, Each series is respnsible fr its prprtinate share f cmmn Fund Csts in additin t expenses that it alne incurs. The perating expenses brne by Fidelity in exchange fr the Administratin Fee include: transfer agency; pricing and bkkeeping fees, which include prcessing purchases and sales f units f the Funds and calculating each Fund s unit price; legal, audit and custdial fees; administrative csts and trustee services relating t registered tax plans; filing fees; the csts f preparing and distributing the Funds financial reprts, simplified prspectus, fund facts, and the ther investr cmmunicatins that Fidelity is required t prepare t cmply with applicable laws; and ther expenses nt therwise included in the management and advisry fees. The Administratin Fee falls under ne f three tiers, depending n the amunt f net assets f a Fund. The three tiers are: less than $100 millin in net assets; $100 millin t $1 billin in net assets; and greater than $1 billin in net assets. As a Fund surpasses these net asset level threshlds, the Administratin Fee n each f its series is reduced by 0.01% (i.e., ne basis pint). The Administratin Fee is calculated as a fixed annual percentage, accrued daily and payable mnthly, f the net asset value f each Fund. The Administratin Fee fr each series f units f each Fund is shwn in the Fund s prfile. The Administratin Fee is charged in additin t the management and advisry fees, and is subject t Sales Tax. The Administratin Fee charged t the Funds may, in any particular perid, exceed r be lwer than the expenses Fidelity incurs in prviding such services t the Funds. Fidelity may waive a prtin f the Administratin Fee that it receives frm the Funds r frm certain series f the Funds. As a result, the Administratin Fee payable by each Fund r a series f a Fund may be lwer than the fees shwn in the Fund prfiles. Fidelity may, in its sle discretin, suspend r cease t ffer any waiver at any time withut ntice. IRC fees and expenses As f the date f this simplified prspectus, each member f the IRC receives an annual retainer f $40,000 ($60,000 fr the Chair) and a fee f $2,500 ($4,000 fr the Chair) fr each IRC meeting the member attends, plus expenses fr each meeting. These fees and expenses, plus ther expenses assciated with the IRC, such as insurance and applicable legal csts, are allcated amng all the Fidelity Funds that are subject t NI , including the Funds, in a manner cnsidered by Fidelity t be fair and reasnable. As the Funds are new, nne f the csts f the IRC have been allcated t them as f the date f this simplified prspectus. 31

34 Fees and expenses (cntinued) Series O Fidelity pays all f the perating expenses and ther csts incurred by the Funds in respect f Series O units (including fr services prvided by Fidelity and/r its affiliates), except fr the fllwing: Taxes, including, but nt limited t, incme tax. Brkerage cmmissins and ther securities transactin expenses, including the csts f derivatives and freign exchange transactins. Interest charges. Sales Tax paid by the Funds The Funds are required t pay the Sales Tax n management and advisry fees, administratin fees, and mst f the Fund Csts at a rate determined separately fr each series fr each year. The rate that ultimately applies t the fees and expenses paid during a year fr a series is determined based n the prtin f the net asset value f the series attributable t investrs resident in each prvince r territry at a certain pint in time during the prir year and the Sales Tax rate fr each f thse prvinces r territries. The rate is different frm year t year. This happens because different unithlders invest in the different series, and the unithlders wh invest in each series change frm year t year because f purchases, switches, and redemptins. Fee reductins Sme investrs in the Funds, such as large investrs, grup plans, charitable r nt-fr-prfit rganizatins, and Fidelity emplyees, may be eligible fr reduced fees. We reduce the fees we charge and the Fund makes a special distributin equal t such amunt t the investr, unless yu hld Series E r P units. We refer t this special distributin as a fee distributin. The fee distributin is paid first ut f net incme and net realized capital gains f the Fund, and then ut f the capital f the Fund. Fee distributins are autmatically reinvested in additinal units f the relevant series f the Fund, and are nt paid t investrs in cash. We may, in ur sle discretin, increase, decrease, r cease t make any fee distributin t any investr at any time. Series E and P units The Funds that ffer Series E r P units pay cmbined management and advisry fees and Administratin Fee based n a tiered structure. The tier f Series E r P units that yu may be eligible t hld is based n yur ttal investments with us, as fllws: Series Tier E1 r P1 $250,000 - $999,999 E2 r P2 $1,000,000 - $2,499,999 E3 r P3 $2,500,000 - $4,999,999 E4 r P4 $5,000,000 - $9,999,999 E5 r P5 $10,000,000+ The higher the Series E and P tier, the lwer the cmbined management and advisry fees and Administratin Fees assciated with hlding thse units. An investr nly becmes eligible t hld Series E r P units nce the investr s hldings in the Funds and ther Fidelity Funds reaches a minimum f $250,000, fr an individual, r $500,000, fr a Series E/P financial grup, prvided that the Series E/P financial grup has a primary accunt hlder wh hlds Fidelity Funds valued at a minimum f $250,000. Fidelity ffers the fllwing accunt-linking prgram t yu if yur dealer and yur financial advisr chse t participate. This prgram is ptinal fr yur dealer and yur financial advisr. If yur dealer and yur financial advisr participate in this accunt-linking prgram, yur financial advisr must cmplete an Accunt Linking Frm. This frm requires yu t advise yur financial advisr f the accunts that qualify t be part f the Series E/P financial grup. Yu are respnsible fr ensuring that yur financial advisr is aware f all f the accunts that shuld be linked r listed in the Accunt Linking Frm. Once a Series E/P financial grup is created, the primary accunt hlder can leave that Series E/P financial grup withut cnsequence t the Series E/P financial grup, as lng as the Series E/P financial grup maintains minimum ttal investments with us, as set ut belw. A Series E/P financial grup is all accunts held by the primary accunt hlder, wh must be an individual hlding a minimum f $250,000 in Fidelity Funds, and the fllwing individuals and entities that are related t that investr: 32

35 The primary accunt hlder s spuse, at the primary accunt hlder s electin, frmer spuses may remain part f the Series E/P financial grup. The primary accunt hlder s children, grandchildren and great-grandchildren, in each case, including adptive and step-children, and the spuses f these persns. Accunts in the names f cmpanies fr which ne r mre members f the Series E/P financial grup are beneficial wners f greater than 50% f the vting equity. In all cases the accunts must be held with the same financial advisr and dealer. Yu shuld let yur financial advisr knw f any such relatinship. T create a Series E/P financial grup, yur dealer must cmplete and submit an accunt linking frm and disclse the accunts that are part f the Series E/P financial grup. Once a Series E/P financial grup is created, the primary accunt hlder can leave that Series E/P financial grup withut cnsequence t the Series E/P financial grup as lng as the Series E/P financial grup maintains a minimum ttal investment with us f $250,000. Unless an individual s ttal investments with us falls belw $150,000 r a Series E/P financial grup s ttal hldings with us falls belw $250,000, we d nt switch investrs ut f: Series E units and back int Series B units. Series P units and back int Series F units. These minimums are intended t prvide investrs with flexibility in cnnectin with majr life events. We reserve the right t switch investrs and Series E/P financial grups ut f Series E r P units if, in ur view, the investr r the members f the Series E/P financial grup are misusing this flexibility t fall belw the applicable initial investment minimum. Once yu are invested in Series E r P units, the calculatin f yur ttal investments with us fr the purpses f mving yu between Series E r P tiers, and determining whether yu remain eligible fr Series E r P units, is based n the fllwing: Only redemptins decrease the amunt f ttal investments with us fr the purpses f the calculatin. Market value declines in yur r yur Series E/P financial grup s accunts d nt result in decreases f the amunt f ttal investments with us fr the purpses f the calculatin. In the case f Series F and P units, while Fidelity will, n yur instructins, redeem units f yur Funds and send the prceeds f redemptin t yur dealer in payment f advisr service fees (plus applicable taxes), these redemptins decrease the amunt f ttal investments with us fr the purpses f the calculatin. Market value increases and/r any additinal investment yu make in yur r yur Series E/P financial grup s accunts can mve yu t a higher Series E r P tier. Market value increases and any additinal investment yu make create a high water mark, and are the amunt upn which we determine yur Series E r P tier, as applicable, and the amunt frm which we deduct any redemptin, regardless f any market value declines that ccur after the high water mark is set. We may, in ur sle discretin, make changes t this prgram, including changing r eliminating Series E r P tiers, the accunt minimum fr individuals, the accunt minimum r cmpsitin rules fr Series E/P financial grups, r ceasing t ffer Series E r P units altgether. Speak with yur financial advisr fr details abut this prgram. Large Accunt Prgram We als ffer a prgram fr large investrs that we call ur Large Accunt Prgram r LAP. Under this prgram, ur decisin t reduce the typical fees depends n a number f factrs, including the size f the investment and the investr s ttal investments with us. We currently nly cnsider an investr a large investr fr purpses f cnsidering a fee reductin if the hldings with Fidelity are a minimum f $250,000 individually, r $500,000 fr a LAP financial grup. A LAP financial grup is all accunts held by related persns living at the same address, and includes accunts in the names f cmpanies fr which ne r mre members f the LAP financial grup are beneficial wners 33

36 Fees and expenses (cntinued) f greater than 50% f the vting equity. Yu can btain further details by cntacting yur financial advisr. The Large Accunt Prgram is clsed t new individuals wh are nt related t existing LAP participants. Fr existing participants in the LAP, Fidelity ffers the fee reductins set ut in the chart belw, prvided the cnditins set ut belw are met. We may, at ur discretin, ffer different tiers and larger fee reductins t investrs r LAP financial grups that invest greater than $10 millin in the Fidelity Funds. Fund Type Fidelity Investment Grade Ttal Bnd Fund and Fidelity Investment Grade Ttal Bnd Currency Neutral Fund Fee Reductins (basis pints) Tier 1 (Individual Accunts) $250k- $500k Tier 2 (Individual and LAP Financial Grups) $500k-$5M Tier 3 (Individual and LAP Financial Grups) Greater than $5M These reductins apply t each dllar invested with Fidelity that is part f the LAP. Fr example, if an investr has assets that fall within the Tier 2 categry, each dllar invested as part f the LAP receives the applicable reductin. LAP is available in respect f all the Fidelity Funds in all series. As a cnditin f participatin in the LAP, we require a reductin t the applicable trailing cmmissin that we wuld therwise pay t the dealer (except fr Series F and O units, where n trailing cmmissin is typically paid), a prtin f which wuld be received by the investr s financial advisr. The expected reductin is a minimum f 5 basis pints fr the Funds. The amunt f this trailing cmmissin reductin is payable t the investr in the same manner as the fee reductins described abve. T determine the ttal reductin payable, yu add the fee reductin frm Fidelity t the trailing cmmissin reductin frm yur dealer. Yu cannt participate in the LAP and als hld Series E r P units. Existing LAP participants may chse t permanently mve t Series E r P pricing, r yu may cntinue t participate in the LAP. We may, in ur sle discretin, make any change t this prgram, including increasing r decreasing the reductins available, changing r eliminating the tiers, r ceasing t ffer them altgether. Speak with yur financial advisr fr details abut this prgram. Underlying funds fees and expenses Where a Fund invests, directly r indirectly, in ne r mre underlying funds, the fees and expenses payable fr the management and advisry services f the underlying funds are in additin t thse payable by the Fund. Hwever, we make sure that any Fund that invests in anther Fidelity Fund r anther underlying fund des nt pay duplicate management and advisry fees r expenses n the prtin f its assets that it invests in the underlying Fidelity Fund r anther underlying fund fr the same service. In additin, any Fund that invests in anther Fidelity Fund r anther underlying fund des nt pay duplicate sales fees r redemptin fees with respect t the purchase r redemptin by it f units f its underlying fund. Unithlder ntice We give unithlders 60 days written ntice f any change t the basis f the calculatin f the fees r expenses that are charged t a Fund r its unithlders by an arm s-length party that culd result in an increase in charges, r the intrductin f a fee r expense t be charged t a Fund r its unithlders that culd result in an increase in charges. Because Series F, O, P1, P2, P3, P4 and P5 units are sld withut a sales charge, a meeting f unithlders f these series f the Funds is nt required t apprve any increase in, r intrductin f, a fee r expense charged t the Funds. Any such increase is nly made if unithlders are ntified f the increase at least 60 days befre the increase takes effect. Fees and expenses payable directly by yu Sales charges Initial sales charge ptin Series B, E1, E2, E3, E4 and E5 units are available nly under the initial sales charge ptin. Yu may have t pay an initial sales charge if yu buy units f these series f a 34

37 Fund. Yu and yur financial advisr negtiate the amunt yu pay. The charge can be frm 0% t 5% f the initial cst f yur units f a Fund. We deduct the sales charge frm the amunt yu invest and pay it t yur dealer as a cmmissin. Yu pay n initial sales charge when yu buy Series F, O, P1, P2, P3, P4 r P5 units f a Fund. Deferred sales charge ptin Yu pay a deferred sales charge if yu chse t buy Series A units f a Fund under the deferred sales charge ptin and yu redeem yur units within six years f buying them. The charge is based n the riginal cst f yur units and hw lng yu held them. We deduct the charge frm the value f units yu redeem. The charge is paid t us. The table belw shws the deferred sales charge schedule: If yu redeem Series A units Yu pay a charge f during the first year yu wn them 6.0% during the secnd year yu wn them 5.5% during the third year yu wn them 5.0% during the furth year yu wn them 4.5% during the fifth year yu wn them 3.0% during the sixth year yu wn them 1.5% after six years f wning them zer Yur Series A deferred sales charge units are autmatically switched t Series B units, which have lwer management fees, seven years after the time f purchase. This switch may result in higher trailing cmmissins being paid t yur dealer. These autmatic switches are nt implemented if the value f the units t be switched is less than five dllars, but are implemented nce the value f the units t be switched is five dllars r mre. There are n charges levied when we implement the autmatic switches. Yu can als elect t switch yur deferred sales charge Series A units t lwer management fee Series B units after yur redemptin fee schedule has expired. See the Purchases, switches and redemptins sectin fr details. Every calendar year, yu can redeem up t 10% f units purchased under the deferred sales charge ptin at n charge, r yu can switch thse units t units that have lwer management fees and n deferred sales charge. See the Purchases, switches and redemptins sectin fr details. Yu can t carry frward an unused amunt t the next year. Lw lad deferred sales charge ptin Yu may chse t purchase Series A units under the lw lad deferred sales charge ptin. Under this ptin, yu pay a deferred sales charge if yu redeem yur units within tw years f buying them. The charge is based n the riginal cst f yur units and hw lng yu held them. We deduct the charge frm the value f units yu redeem. The charge is paid t us. The table belw shws the lw lad deferred sales charge schedule: If yu redeem Series A lw lad units Yu pay a charge f during the first year yu wn them 2.0% during the secnd year yu wn them 2.0% during the third year yu wn them zer Yur Series A lw lad deferred sales charge units are autmatically switched t Series B units, which have lwer management fees, three years after the time f purchase. This switch may result in higher trailing cmmissins being paid t yur dealer. These autmatic switches are nt implemented if the value f the units t be switched is less than five dllars, but are implemented nce the value f the units t be switched is five dllars r mre. There are n charges levied when we implement the autmatic switches. Yu can als elect t switch yur lw lad deferred sales charge Series A units t lwer management fee Series B units after yur redemptin fee schedule has expired. See the Purchases, switches and redemptins sectin fr details. Lw lad 2 deferred sales charge ptin Yu may chse t purchase Series A units under the lw lad 2 deferred sales charge ptin. Under this ptin, yu pay a deferred sales charge if yu redeem yur units within three years f buying them. The charge is based n the riginal cst f yur units and hw lng yu held them. We deduct the charge frm the value f units yu redeem. The charge is paid t us. The table belw shws the lw lad 2 deferred sales charge schedule: If yu redeem Series A lw lad 2 units Yu pay a charge f during the first year yu wn them 3.0% during the secnd year yu wn them 2.5% 35

38 Fees and expenses (cntinued) If yu redeem Series A lw lad 2 units Yu pay a charge f during the third year yu wn them 2.0% During the furth year yu wn them zer Yur Series A lw lad 2 deferred sales charge units are autmatically switched t Series B, units, which have lwer management fees, fur years after the time f purchase. This switch may result in higher trailing cmmissins being paid t the dealer. These autmatic switches are nt implemented if the value f the units t be switched is less than five dllars, but are implemented nce the value f the units t be switched is five dllars r mre. There are n charges levied when we implement the autmatic switches. Yu can als elect t switch yur lw lad 2 deferred sales charge Series A units t lwer management fee Series B, units after yur redemptin fee schedule has expired. See the Purchases, switches and redemptins sectin fr details. Yu pay n deferred sales charge when yu redeem Series B, E1, E2, E3, E4, E5, F, O, P1, P2, P3, P4 r P5 units f a Fund. Switch fees Yu may have t pay a fee f up t 2% f the value f yur units t yur dealer when yu switch yur units t a different series f the same Fund (where permitted), r when yu switch frm units f a Fund t units f anther Fund r Fidelity Fund. The fee is paid by redeeming yur units immediately befre the switch is made. Yu negtiate that fee with yur financial advisr. Yu d nt pay a switch fee when yu switch frm Series F, P1, P2, P3, P4 r P5 units f ne Fund t Series F, P1, P2, P3, P4 r P5 units f anther Fidelity Fund. Yu d nt pay a switch fee when we autmatically switch yur Series B units int Series E units, r when yur Series E units are switched t Series B units r a different tier f Series E units. Yu d nt pay a switch fee when we autmatically switch yur Series F units int Series P units, r when yur Series P units are switched t Series F units r a different tier f Series P units. If yu switch t units f anther Fidelity Fund within 30 days f buying them, yu may als be charged a shrt-term trading fee. In such event, yu are nt charged a deferred sales charge n a switch t anther Fidelity Fund. Yu can find mre infrmatin abut permitted switches f units in the Purchases, switches and redemptins sectin. Yu may have t pay a fee f up t 2% f the value f yur units t yur dealer when yu switch frm: Series A units f a Fund t Series O units f the same Fund. Series B units f a Fund t Series O units f the same Fund. Series E units f a Fund t Series O units f the same Fund. Series F units f a Fund t Series B units f the same Fund. Series P units f a Fund t Series B units f the same Fund. Yu negtiate that fee with yur financial advisr. Yu pay n switch fee when yu switch frm: Series B units f a Fund t Series F units f the same Fund. Series E units f a Fund t Series F units f the same Fund. Series F units f a Fund t Series O units f the same Fund. Series P units f a Fund t Series O units f the same Fund. Registered plan fees Nne. Shrt-term trading fee Fidelity mnitrs fr shrt-term trading activity. Yu are charged a shrt-term trading fee f 1% f the value f the units if yu redeem r switch units within 30 days f buying units f any series f the Funds. 36

39 We may decide t waive the fee in certain limited circumstances, fr example, the death f a unithlder. Fr this purpse, units held fr the lngest time perid are treated as being redeemed first, and units held fr the shrtest time perid are treated as being redeemed last. In additin, Fidelity mnitrs accunt trading activity t identify patterns f excessive trading. Excessive trading activity is determined by the number f redemptins r switches ut f a Fund within 30 days f a purchase r switch int a Fund. Fr this purpse, units held fr the shrtest time perid are treated as being redeemed first, and units held fr the lngest time perid are treated as being redeemed last. If yu redeem r switch units f the Funds within this perid, yu may: Receive a warning letter. Be charged a shrt-term trading fee f up t 1% f the value f the units. Have yur accunt blcked frm further purchases and switches fr a perid f time. Be required t redeem yur accunt. Further t the abve sanctins, Fidelity may, in its sle discretin, restrict, reject, r cancel any purchase r switch int a Fund, r apply additinal sanctins where we deem activity t nt be in the Funds interests. In certain circumstances, the shrt-term trading fee des nt apply. See the Purchases, switches and redemptins sectin fr details. Fee fr sizable redemptins Fidelity mnitrs fr sizable transactin activity. On r after April 1, 2017, Sizable Investrs f a Fund will be subject t a 1% penalty f the value f the units that they sell/switch if they sell/switch their units f the Fund within 30 days f their mst recent purchase/switch int the Fund. Sizable investrs may be subject t a 1% penalty f the value f the units if they fail t prvide the required ntice t Fidelity prir t cmpleting a sizable redemptin (as described in Sizable transactins in the Purchases, switches and redemptins sectin). At the time the redemptin rder is received withut ntice, Fidelity will assess the ptential impact t the Fund and determine whether the 1% penalty is applied. This fee ges t the Fund. If the redemptin r switch transactin wuld be subject t bth a sizable redemptin fee and a shrt-term trading fee, the Sizable Investr will nly be subject t the sizable redemptin fee. Fr greater certainty, the ttal penalty applied will nt exceed 1% f the value f the units redeemed r switched. See Shrt-term trading and Sizable transactins in the sectin Purchases, switches and redemptins fr details. Other Cheque fees Yu may be charged a fee f $25 plus applicable taxes fr each payment that yu request by cheque in respect f redemptins, payments under a systematic withdrawal plan r cash distributins. Insufficient funds fee Yu may be charged a fee f $25 plus applicable taxes fr each payment nt hnured by yur financial institutin. Advisr Service Fee Investrs in Series F, P1, P2, P3, P4 r P5 units may pay their advisr service fees t their dealer by authrizing Fidelity t redeem units f these series frm their accunt equal t the amunt f the fees payable by the investr t their dealer (plus applicable taxes) and t pay the prceeds t their dealer. These redemptins are made n a quarterly basis, and the redemptin prceeds fr the advisr service fees (plus applicable taxes) are frwarded n t the dealer. Where such an arrangement exists, the maximum annual advisr service fee rate that Fidelity facilitates the payment f is 1.50% (excluding applicable taxes). The advisr service fee is calculated n a daily basis based n the daily net asset value f the investr s units at the end f each business day. Investrs are eligible t have units f these series redeemed by Fidelity and the prceeds paid t their dealer, if: 37

40 Fees and expenses (cntinued) They d nt hld their units in a fee-based accunt where they pay fees directly t their dealer. Their dealer has entered int the apprpriate eligibility agreement with Fidelity. They have entered int an advisr service fee agreement with their dealer and Fidelity. The advisr service fee agreement must disclse the advisr service fee rate(s) the investr has negtiated with the dealer fr the advice prvided by the dealer t the investr with respect t purchasing and selling securities f the Fidelity Funds and/r administratin and management services with respect t the investr s securities f the Fidelity Funds. Series O management fee The Funds d nt pay any management fee in respect f Series O units. Instead, yu have t pay an annual fee t us, which is negtiable. This fee accrues daily and is paid mnthly, and des nt exceed the aggregate maximum annual rate f the management and advisry fees payable fr Series F units f the Funds. Impact f sales charges The table belw shws the fees yu wuld have t pay if yu bught units f a Fund under ur different purchase ptins. It assumes that: (1) (2) (3) Yu haven t used yur 10% free amunt under the deferred sales charge ptin (the 10% free amunt is nt available fr the lw lad deferred sales charge ptin and the lw lad 2 deferred sales charge ptin). When yu buy yur units Within 1 year Within 3 years Within 5 years Within 10 years Initial sales charge ptin (1) $50 Deferred sales charge ptin (2) $60 $50 $30 Lw lad deferred sales charge ptin (2) $20 Lw lad 2 deferred sales charge ptin (2) $30 $20 N lad ptin (3) n/a n/a n/a n/a n/a Only Series B, E1, E2, E3, E4 and E5 units are available under this ptin. Yu d nt pay any sales charges if yu buy Series F, P1, P2, P3, P4 r P5 units. Instead, yu pay yur dealer an annual fee fr investment advice and/r ther services. Series O units are als sld withut a sales charge. Only Series A units are available under the deferred sales charge ptin, the lw lad deferred sales charge ptin, and the lw lad 2 deferred sales charge ptin. We d nt ffer a n lad ptin. Yu invest $1,000 in units f the Fund fr each perid and redeem all f yur units immediately befre the end f that perid. The sales charge under the initial sales charge ptin is 5%. The deferred sales charge under the deferred sales charge ptin applies nly if yu redeem yur units within six years f buying them, the deferred sales charge under the lw lad deferred sales charge ptin applies nly if yu redeem yur units within tw years f buying them, and the deferred sales charge under the lw lad 2 deferred sales charge ptin applies nly if yu redeem yur units within three years f buying them. See the Fees and expenses sectin fr the redemptin fee schedules f the different deferred sales charge ptins. 38

41 Dealer cmpensatin Hw yur financial advisr and dealer are paid Yur financial advisr usually is the persn yu buy Fidelity Funds frm. Yur financial advisr culd be a brker, financial planner, r ther persn wh sells mutual funds. Yur dealer is the firm yur financial advisr wrks fr. Cmmissins Yur financial advisr usually receives a cmmissin when yu invest in Series A, B, E1, E2, E3, E4 r E5 units f the Funds. The cmmissin depends n hw yu invest in the Funds. Initial sales charge ptin Yu and yur financial advisr decide n the percentage sales charge yu are charged when yu buy Series B, E1, E2, E3, E4 r E5 units under the initial sales charge ptin. The percentage f the sales charge ranges frm 0% t 5%. We may deduct the sales charge frm the amunt yu invest and pay it t yur dealer as a cmmissin. See the Fees and expenses sectin fr details. Deferred sales charge ptins When yu chse the deferred sales charge ptin fr Series A units, we pay yur dealer a cmmissin f 4.9% f the amunt yu invest. Yu dn t pay a charge unless yu redeem yur units within six years f buying them. See the Fees and expenses sectin fr details. When yu chse the lw lad deferred sales charge ptin fr Series A units, we pay yur dealer a cmmissin f 1% f the amunt yu invest. Yu dn t pay a charge unless yu redeem yur units within tw years f buying them. See the Fees and expenses sectin fr details. When yu chse the lw lad 2 deferred sales charge ptin fr Series A units, we pay yur dealer a cmmissin f 2.5% f the amunt yu invest. Yu dn t pay a charge unless yu redeem yur units within three years f buying them. See the Fees and expenses sectin fr details. Switch fees Yu may have t pay a fee f up t 2% f the value f yur units t yur dealer when yu switch frm units f a Fund t a different series f the same Fund, r when yu switch frm units f a Fund t units f anther Fund r ther Fidelity Fund. Yu negtiate that fee with yur financial advisr. The charge is paid by redeeming units f the Fund yu re switching ut f. Yu dn t pay a switch fee when yu switch Series C r D units f Fidelity Canadian Mney Market Fund t any ther Fidelity Fund as part f yur ClearPlan prgram. See the Fees and expenses sectin fr details abut this fee. Als see the Purchases, switches and redemptins sectin fr mre infrmatin abut permitted switches. Trailing cmmissins We pay trailing cmmissins t yur dealer n Series A, B, E1, E2, E3, E4 r E5 units at the end f each quarter r, if the dealer qualifies t be paid electrnically, pssibly n a mre frequent basis. We expect that dealers pay a prtin f the trailing cmmissin t their financial advisrs. Trailing cmmissins are paid t all dealers, including discunt brkers. These cmmissins are a percentage f the average daily value f the abve series f units f each Fund held by the dealer s clients. The cmmissins depend n the Fund and the sales charge ptin. We may change r cancel the terms f the trailing cmmissins in ur discretin and withut advance ntice. The fllwing table shws the maximum trailing cmmissins rates: Fund Maximum annual trailing cmmissin rate Deferred sales charge ptin Series A units Lw lad deferred sales charge ptin Lw lad 2 deferred sales charge ptin Series B, E1, E2, E3, E4 and E5 units Initial sales charge ptin Fidelity Investment Grade Ttal Bnd Fund and Fidelity Investment Grade Ttal Bnd Currency Neutral Fund 0.25% 0.50% 0.25% 0.50% Marketing supprt prgrams We pay fr materials we give t dealers t help supprt their sales effrts. These materials include reprts and cmmentaries n securities, the markets, and the Fidelity 39

42 Dealer cmpensatin (cntinued) Funds. We pay fr ur wn marketing and advertising prgrams. We may share with dealers up t 50% f their csts in marketing the Fidelity Funds. This may include paying a prtin f the csts f a dealer in advertising the availability f Fidelity Funds thrugh its financial advisrs. We may als pay part f the csts f a dealer in presenting seminars t educate investrs abut the Fidelity Funds, r generally abut the benefits f investing in mutual funds. We may pay up t 10% f the csts fr dealers t hld educatinal seminars r cnferences fr their financial advisrs t prvide them with infrmatin abut, amng ther things, financial planning r mutual fund industry matters. We als arrange seminars fr financial advisrs frm time t time, where we infrm them abut new develpments in the Fidelity Funds, ur prducts and services, and mutual fund industry matters. We invite dealers t send their financial advisrs t ur seminars, but the dealers decide wh attends. The financial advisrs must pay fr their wn travel, accmmdatin, and persnal expenses if they attend ur seminars. We may als pay the registratin csts fr financial advisrs t attend educatinal cnferences r seminars rganized and presented by ther rganizatins. All f ur prgrams that benefit dealers cmply with securities laws. The Fidelity Funds d nt pay the csts f these prgrams. 40

43 Dealer cmpensatin frm management fees We paid dealers cmpensatin f apprximately 46.5% f the ttal management fees we received frm all the Fidelity Funds we managed during ur financial year ended December 31, This includes amunts we paid t dealers fr cmmissins, trailing cmmissins, marketing supprt prgrams, and intrductin fees. Incme tax cnsideratins fr investrs This infrmatin is a general summary f tax rules and is nt intended t be legal advice. Fr this discussin, we assume yu are a Canadian resident individual (ther than a trust) and that yu hld yur units directly as capital prperty r in a registered plan. Mre infrmatin is cntained in the Funds annual infrmatin frm. We have tried t make this discussin easy t understand. As a result, we cannt be technically precise, r cver all the tax cnsequences that may apply. We suggest that yu cnsult yur tax advisr fr details abut yur individual situatin. Hw the Funds aim t make mney A Fund can make mney in tw ways. First, it can earn incme. Sme examples f incme are interest paid n bnds, dividends paid n stcks, and gains n certain derivatives instruments. Secnd, a Fund can have capital gains if the value f its investments ges up. If the Fund sells an investment at a gain, the gain is realized. If the Fund cntinues t hld the investment, the gain is unrealized. Incme and capital gains can als be earned thrugh investments in underlying funds. The distributins paid by an underlying Fidelity Fund have the character f a dividend frm Canadian cmpanies, taxable capital gain, Canadian incme frm a trust, freign incme frm a trust, r return f capital. Each year, the Funds pay ut a sufficient amunt f their incme (after deducting expenses) and realized capital gains s that, generally, they dn t have t pay rdinary incme tax. This is knwn as a distributin. Typically, freign surce incme is subject t freign withhlding tax. Gains and lsses realized by a Fund frm the use f derivatives fr nn-hedging purpses is treated as rdinary incme and lsses fr tax purpses, rather than as capital gains and lsses. Gains and lsses realized by the Fund frm the use f derivatives fr hedging purpses may be treated fr tax purpses as rdinary incme and lsses r as capital gains and capital lsses, depending n the circumstances. Fidelity Investment Grade Ttal Bnd Currency Neutral Fund treats the gains and lsses realized 41

44 Incme tax cnsideratins fr investrs (cntinued) n derivatives used t hedge against currency fluctuatins as capital gains and capital lsses, rather than as rdinary incme and lsses. While this psitin is cmmnly applied by the mutual fund industry, the Canada Revenue Agency, r CRA, culd challenge this treatment n the basis that these gains are incme. A reassessment f a Fund may result in additinal incme t unithlders if the Fund des nt have sufficient deductible expenses and tax credits t ffset this incme. Hw yu are taxed The tax yu pay n yur mutual fund investment depends n whether yu hld yur units in a registered plan r in a nn-registered accunt. Funds held in yur registered plan Generally, neither yu nr yur registered plan are subject t tax n distributins paid n units held in yur registered plan r n capital gains realized when thse units are redeemed r switched. This assumes the units are a qualified investment and nt a prhibited investment. Units f the Funds are expected t be a qualified investment fr registered plans. Hwever, even when units f a Fund are a qualified investment, yu may be subject t tax if a unit held in yur RRSP, RRIF and TFSA is a prhibited investment fr yur registered plan. Pursuant t legislative prpsals t amend the Tax Act released n September 8, 2017, rules in respect f prhibited investments are prpsed t apply t RESPs and RDSPs effective March 23, Under a safe harbur rule fr new mutual funds, units f the Funds will nt be a prhibited investment fr yur registered plan at any time during the first 24 mnths f the Fund s existence prvided the Fund is a registered investment r deemed t be a mutual fund trust under the Tax Act during that time and is in substantial cmpliance with NI r fllws a reasnable plicy f investment diversificatin. When the safe harbur rule des nt apply, generally, units f a Fund will nt be a prhibited investment fr yur registered plans if yu and persns with whm yu d nt deal at arm s length d nt, in ttal, directly r indirectly, wn securities representing 10% r mre f the net asset value f the Fund. Units f a Fund will als nt be a prhibited investment fr yur registered plans if they are excluded prperty under the Tax Act. Yu shuld cnsult yur tax advisr abut the special rules that apply t each type f registered plan, including whether r nt an investment in a Fund wuld be a prhibited investment fr yur registered plans. Funds held in yur nn-registered accunt Yu must cmpute and reprt all incme and capital gains in Canadian dllars. If yu hld yur units in a nnregistered accunt and receive a distributin (including a fee distributin) during a year, we send yu a tax slip fr the year. It shws yur share f the Fund s incme, capital gains, and return f capital paid t yu fr the previus year, as well as any allwable tax credits. Yu must include the taxable prtin f yur distributins, as shwn n the tax slip, as part f yur annual incme. This applies even if yur distributins are reinvested in units f the Fund. Incme may include dividends frm taxable Canadian crpratins, freign incme, and ther incme (such as interest and derivative incme). Dividends paid by Canadian cmpanies are taxed subject t the grss up and dividend tax credit. An enhanced grss-up and dividend tax credit is available fr certain eligible dividends paid by Canadian cmpanies. A Fund r an underlying fund may pay freign withhlding tax n its freign incme. Sme r all f the freign tax paid by a Fund r an underlying fund may be credited against the Canadian incme tax yu pay. Capital gains distributed by the Funds are treated as if yu realized them directly as a capital gain. Distributins f capital are nt taxable. Instead a return f capital reduces the adjusted cst base f yur units f a Fund. Generally, fees paid by yu t yur dealer in respect f Series F r P units f the Funds held utside a registered plan shuld be deductible fr incme tax purpses frm the incme earned n the Funds t the extent that the fees are reasnable, represent fees fr advice t yu regarding the purchase r sale f specific securities (including units f the Funds) by yu directly r fr services prvided t yu in respect f the administratin r management f securities (including units f the Funds) wned by yu directly, and the fees are paid by yu t a dealer whse principal business is advising thers regarding the purchase r sale f specific securities, r includes the prvisin f administratin r management services in respect f 42

45 securities. Fees paid directly by yu t Fidelity fr services prvided by Fidelity t the Funds (such as with respect t Series O units) are nt deductible. Yu shuld cnsult yur tax advisr regarding the deductibility f fees paid directly by yu in yur particular circumstances. Capital gains and lsses when yu redeem yur units Switches between series f the same Fund can be made withut triggering a capital gain r lss. Other switches require a redemptin f units and may trigger a capital gain. Switches that require a redemptin include thse that ccur under the Fidelity ClearPlan prgram r the systematic exchange prgram. Yu realize a capital gain if the amunt yu receive frm redeeming a unit is mre than the adjusted cst base f the unit, after deducting any cst f redeeming r switching the unit. Yu realize a capital lss if the amunt yu receive frm a redemptin is less than the adjusted cst base, after deducting any cst f redeeming yur units. Capital gains r capital lsses are realized n redemptins made t pay fees t yur dealer, including in cnnectin with Series F and P units. Generally, ne-half f a capital gain is included in calculating yur incme as a taxable capital gain, and nehalf f a capital lss can be deducted against taxable capital gains, subject t any applicable lss restrictin rules under the Tax Act. If yu ve bught units at varius times, yu likely paid varius prices. The adjusted cst base f a unit is the average f the adjusted cst base f all the identical units yu hld in the Fund. That includes units yu gt thrugh reinvestments f distributins. If yu ve bught and sld units in U.S. dllars, the cst and prceeds f dispsitin must be cnverted int Canadian dllars at the exchange rate n the date f purchase r redemptin, as applicable. This culd be particularly significant if yu purchase units f a Fund late in the year, r n r befre the date n which a distributin is paid. Prtfli turnver The higher a Fund s r underlying fund s prtfli turnver rate in a year, the greater the chance that yu receive a capital gains distributin. Any gains realized wuld be ffset by any lsses realized n prtfli transactins. There is nt necessarily a relatinship between a high turnver rate and the perfrmance f a Fund. Hw t calculate adjusted cst base Here s hw the ttal adjusted cst base f yur units f a series f a particular Fund is generally calculated: Start with yur initial investment, including any sales charges yu paid. Add any additinal investments, including any sales charges yu paid. Add any distributins yu reinvested, including fee distributins. Add the adjusted cst base f units received n a taxdeferred switch and the net asset value f the units received n a taxable switch. Subtract the part f any distributins, including fee distributins that was a return f capital. Subtract the adjusted cst base f any previus redemptins and switches. T calculate adjusted cst base, yu need t keep detailed recrds f the price yu paid and received fr yur investments, and als keep the tax slips we send t yu. They include distributins that are a return f capital. Fr mre infrmatin, cntact yur tax advisr. Buying units late in the year The unit price f a Fund may include incme and/r capital gains that the Fund has earned r realized, but nt yet distributed. Yu are taxable n distributins f a Fund s incme and capital gains even if that incme and capital gains is attributable t a time befre yu acquired the units. 43

46 Incme tax cnsideratins fr investrs (cntinued) Additinal cnsideratins fr investrs Yu are generally required t prvide yur financial advisr with infrmatin related t yur citizenship, tax residence, and, if applicable, yur freign tax identificatin number. If yu are identified as a U.S. citizen (including a U.S. citizen living in Canada) r a freign tax resident, details abut yu and yur investment in a Fund are generally reprted t the CRA, unless units are held in a registered plan. The CRA is expected t prvide that infrmatin t the freign tax authrity in the relevant cuntry if the cuntry has signed an exchange f financial accunt infrmatin agreement with Canada. The U.S. Internal Revenue Service issued a clarificatin t a set f existing tax rules that resulted in Canadian mutual funds (such as the Fidelity Funds) generally being classified as crpratins fr U.S. tax purpses. As a result, U.S. taxpayers (including Canadian residents wh are U.S. citizens) wh hld Canadian mutual funds generally are subject t the Passive Freign Investment Cmpany rules, knwn as PFIC, including an annual requirement t reprt each PFIC investment held directly r indirectly n a separate U.S. tax frm. If yu are a U.S. citizen, yu shuld cnsult yur tax advisr abut the U.S. tax rules that apply t yu and the advisability f making (r refraining frm making) any U.S. tax electin, such as a Qualified Electing Fund r QEF electin. Generally, the QEF mre clsely aligns the Canadian and U.S. tax treatment f an investment in Canadian mutual funds. T assist investrs wh chse t make QEF electins, Fidelity makes available PFIC annual infrmatin statements, referred t as AIS, fr the Fidelity Funds. Investrs shuld cnsult their dealer r financial advisrs abut btaining their AIS frm Fidelity. 44

47 Statement f rights Securities legislatin in sme prvinces and territries gives yu the right t withdraw frm an agreement t buy mutual funds within tw business days f receiving the simplified prspectus r fund facts, r t cancel yur purchase within 48 hurs f receiving cnfirmatin f yur rder. Securities legislatin in sme prvinces and territries als allws yu t cancel an agreement t buy mutual fund securities and get yur mney back, r t make a claim fr damages, if the simplified prspectus, annual infrmatin frm, fund facts r financial statements misrepresent any facts abut the fund. These rights must usually be exercised within certain time limits. Fr mre infrmatin, refer t the securities legislatin f yur prvince r territry r cnsult a lawyer. 45

48 Specific infrmatin abut each f the mutual funds described in this dcument Yur guide t the Funds The Funds ffered under this simplified prspectus are categrized as Fixed Incme Funds. Chsing the right nes means knwing what kinds f investments the Funds make and what kinds f risks they face. Here s what the Fund prfiles lk like and what they will tell yu. 1. Fund name 2. Fund details This is a quick verview f the Fund what kind f fund it is, when it was started, the types f units ffered, and series available under the U.S. dllar ptin, and whether it is a qualified investment fr registered plans, and the management and advisry fees and Administratin Fee fr each series. Yur dealer and financial advisr can assist yu in determining the series that yu are eligible t invest in. Abut the Series We currently ffer up t furteen series f units fr the Funds. The series ffered by a Fund are set ut in that Fund s prfile. We may ffer additinal series in the future. Thrughut this simplified prspectus, we use the term tier t refer t the separate series f Series E and P units. Series A units Series A units are available t all investrs wh purchase under a deferred sales charge ptin. The minimum initial investment fr Series A units f a Fund is $500. Series B units Series B units are available t all investrs wh purchase under the initial sales charge ptin. Series B units have lwer fees than Series A units. The minimum initial investment fr Series B units f a Fund is $500. Series E1, E2, E3, E4 and E5 units Series E units are available nly t investrs wh hld Series B units and then becme eligible t hld Series E units, r wh already hld Series E units, prvided their dealer has entered int the apprpriate eligibility agreement with Fidelity and can supprt Series E units. Series E units are nt available t an investr enrlled in the Large Accunt Prgram (described in the Fees and Expenses sectin) unless the investr chses t permanently leave the Large Accunt Prgram in rder t hld Series E units. Series E units have lwer cmbined management and advisry fees and Administratin Fees than Series B units. Each Series E tier has different management and advisry fees and Administratin Fee. T determine the Series E tier that yu are eligible t hld, see Series E and P units in the Fees and Expenses sectin. We determine whether yu are eligible fr Series E units based n the amunt yu, either individually r as part f a Series E/P financial grup, have invested with Fidelity. Yur dealer is respnsible fr determining whether yu and the entities related t yu qualify as a Series E/P financial grup. We autmatically switch any Series B units held by an investr wh qualifies fr Series E units int the Series E tier with the lwest cmbined management and advisry and Administratin Fee available t that investr, based n infrmatin prvided t us by yur dealer. See the Purchases, switches and redemptins sectin fr details. If yu re n lnger eligible t hld a particular tier f Series E units, we autmatically switch yur units int the apprpriate series f units, which might result in yu hlding Series B units. We restrict mnibus and bulk accunts frm hlding Series E units where we cannt identify wh the beneficial unithlders are in rder t determine whether each beneficial unithlder is independently eligible t hld Series E units. Series F units Series F units have lwer cmbined management and advisry fees and Administratin Fees than Series A r B units. Instead f paying sales charges, investrs in Series F units pay their dealer a fee fr the investment advice and/r administratin and management services they prvide. Investrs may buy Series F units in a fee-based accunt at their dealer, where they pay fees directly t their dealer, 46

49 prvided their dealer has entered int the apprpriate eligibility agreement with Fidelity. Investrs may als buy Series F units and pay fees t their dealer by authrizing Fidelity t redeem Series F units frm their accunt having a value equal t the amunt f the fees payable by the investr t the dealer (plus applicable taxes) and t pay the prceeds t their dealer. Investrs are eligible t have their Series F units redeemed by Fidelity, and the prceeds paid t their dealer, if: They d nt hld their Series F units in a fee-based accunt where they pay fees directly t their dealer. Their dealer has entered int the apprpriate eligibility agreement with Fidelity. They have entered int an advisr service fee agreement with their dealer and Fidelity. The advisr service fee agreement must disclse the advisr service fee rate(s) the investr has negtiated with the dealer fr the advice t be prvided by the dealer t the investr with respect t purchasing and selling securities f the Fidelity Funds and/r fr the administratin and management services with respect t the investr s securities f the Fidelity Funds. If an investr enters int an advisr service fee agreement, Fidelity facilitates the payment f the advisr service fee (plus applicable taxes) by the investr t the dealer by redeeming the investr s Series F units n a quarterly basis and frwarding the redemptin prceeds fr the advisr service fees t the dealer. See the Fees and expenses sectin fr details. We dn t pay any cmmissins r trailing cmmissins t dealers wh sell Series F units, which means we can charge lwer management and advisry fees. Yur dealer is respnsible fr deciding whether yu are eligible t buy and cntinue t hld Series F units. If yu re n lnger eligible t hld Series F units, yur dealer is respnsible fr telling us t switch yur units int Series B units f the same Fund r t redeem them. The minimum initial investment fr Series F units f a Fund is $500. Series O units Series O units f the Funds are nly available t institutinal investrs wh may be individuals r financial institutins which have been apprved by us and have entered int a Series O fund purchase agreement with us. Series O investrs are typically financial services cmpanies that make large investments in the Funds, and that use units f the Funds t facilitate ffering ther prducts t investrs r t prvide administrative services t grup plans. The criteria fr apprval as a Series O investr may include the size f the investment, the expected level f accunt activity, and the investr s ttal investments with us. N management and advisry fees are charged t the Funds with respect t the Series O units, but investrs are charged a negtiated management fee fr the prvisin f ur services t them. Cnsequently, investrs in Series O units may pay, as a percentage f their investment, a management fee that is different frm that payable by ther investrs in Series O units. We dn t pay any cmmissins r trailing cmmissins t dealers wh sell Series O units. There are n sales charges payable by investrs wh purchase Series O units. Since Series O investrs are typically financial services cmpanies, their need fr prtfli infrmatin may be different frm ther investrs. As a result, we may prvide them with prtfli disclsure mre frequently than we prvide this disclsure t ther investrs, and the infrmatin prvided may be mre detailed and/r presented in a smewhat different fashin. This infrmatin is nly prvided subject t an agreement limiting the investr s use f the infrmatin, and prhibiting the investr frm disclsing it t any ther party. Series P1, P2, P3, P4 and P5 units Series P units are available nly t investrs wh hld Series F units and then becme eligible t hld Series P units, r wh already hld Series P units, prvided their dealer has entered int the apprpriate eligibility agreement with Fidelity and can supprt Series P units. Series P units are nt available t an investr enrlled in the Large Accunt Prgram (described in the Fees and Expenses sectin) unless the investr chses t permanently leave the Large Accunt Prgram in rder t hld Series P units. 47

50 Specific infrmatin abut each f the mutual funds described in this dcument (cntinued) Series P units have lwer cmbined management and advisry fees and Administratin Fees than Series F units. Each Series P tier has different management and advisry fees and Administratin Fee. T determine the Series P tier that yu are eligible t hld, see Series E and P limits in the Fees and Expenses sectin. We determine whether yu are eligible fr Series P units based n the amunt yu, either individually r as part f a Series E/P financial grup, have invested with Fidelity. Yur dealer is respnsible fr determining whether yu and the entities related t yu qualify as a Series E/P financial grup. We autmatically switch any Series F units held by an investr wh qualifies fr Series P units int the Series P tier with the lwest cmbined management and advisry fees and Administratin Fee available t that investr, based n the infrmatin prvided t us by yur dealer. See the Purchases, switches and redemptins sectin fr details. If yu re n lnger eligible t hld a particular Series P tier, we autmatically switch yur units int the apprpriate series f units, which might result in yu hlding Series F units. If, hwever, yu are n lnger eligible t hld a particular Series P tier as a result f yur dealer determining that yu are n lnger eligible t hld Series F units, as applicable, yur dealer is respnsible fr telling us t switch yur Series P units int Series B units, as applicable, f the same Fund r t redeem them. As all eligible investrs fr Series P units will initially hld Series F units, Series P units may be held in a fee-based accunt at their dealer, where they pay fees directly t their dealer. Investrs may als pay fees t their dealer by authrizing Fidelity t redeem Series P units frm their accunt having a value equal t the amunt f the fees payable by the investr t their dealer (plus applicable taxes) and t pay the prceeds t their dealer. Investrs are eligible t have their Series P units redeemed by Fidelity, and the prceeds paid t their dealer, if: They d nt hld their Series P units in a fee-based accunt where they pay fees directly t their dealer. Their dealer has entered int the apprpriate eligibility agreement with Fidelity. They have entered int an advisr service fee agreement with their dealer and Fidelity. The advisr service fee agreement must disclse the advisr service fee rate(s) the investr has negtiated with the dealer fr the advice t be prvided by the dealer t the investr with respect t purchasing and selling securities f the Fidelity Funds and/r fr the administratin and management services with respect t the investr s securities f the Fidelity Funds. If an investr enters int an advisr service fee agreement, Fidelity facilitates the payment f the advisr service fee (plus applicable taxes) by the investr t the dealer by redeeming the investr s Series P units n a quarterly basis and frwarding the redemptin prceeds fr the advisr service fees t the dealer. See the Fees and expenses sectin fr details. We dn t pay any cmmissins r trailing cmmissins t dealers in cnnectin with Series P units, which means we can charge lwer management and advisry fees. We restrict mnibus and bulk accunts frm hlding Series P units where we cannt identify wh the beneficial unithlders are in rder t determine whether each beneficial unithlder is independently eligible t hld Series P units. Other series infrmatin Fidelity, in its sle discretin, may waive r change any f the abve minimum initial investment amunts at any time. The current minimum initial investment amunts may be btained n ur website at Fr infrmatin n buying units f the Funds, see the Purchases, switches and redemptins sectin. Series A units purchased under the deferred sales charge ptin are autmatically switched t Series B units, respectively, which have lwer management fees, as sn as pssible fllwing ne year after the cmpletin f their redemptin fee schedules. Yu can find a descriptin f the deferred sales charge ptins available and their redemptin fee schedules in the Fees and expenses sectin. These autmatic switches are nt implemented if 48

51 the value f the units t be switched is less than five dllars, but are implemented nce the value f the units t be switched is five dllars r mre. Yu can als elect t have yur Series A units that were purchased under the deferred sales charge ptin switched t the Series B units at any time after yur redemptin fee schedule expires. See the Purchases, switches and redemptins sectin fr details. Fr each series f a Fund, excluding Series O, Fidelity pays all f the perating expenses incurred by the Fund fr that series (including fr services prvided by Fidelity and/r its affiliates), except fr Fund Csts, in exchange fr the Administratin Fee that is paid by the Fund in respect f these series. Fr Series O, Fidelity pays all f the perating expenses and csts incurred by the Fund in respect f Series O (including fr services prvided by Fidelity and/r its affiliates), except fr certain csts that are paid by the Fund in respect f Series O. See the Fees and expenses sectin fr details. The differences in expenses and fees between series mean that each series f a Fund has a different net asset value per unit. 3. What des the fund invest in? This sectin tells yu the investment bjectives and strategies f the Fund. Investment bjectives Just like yu, each Fund has gals fr the mney it invests. This sectin tells yu what thse gals are. Sme Funds seek t earn incme, while thers seek t increase the value f their investments as much as pssible. Still thers seek t d bth. Each Fund has its distinct investment bjectives. Yu will find details abut the kinds f securities the Fund invests in, as well as any special investment fcus, such as a particular cuntry r industry. We can t change a Fund s investment bjectives unless we get apprval frm a majrity f unithlders wh vte at a special meeting we call. Investment strategies This sectin tells yu hw the prtfli management team tries t achieve the Fund s investment bjectives. Yu will find the prtfli management team s general apprach t investing, and hw the prtfli management team chses investments fr the Fund. Except where exemptive relief has been btained frm the securities regulatrs (as described belw), all f the Funds fllw the standard limits, restrictins, and practices set by Canadian securities regulatins. All f the Funds can hld cash and invest in fixed incme securities. They can als engage in repurchase, reverse repurchase and securities lending transactins, which are described in the sectin What is a mutual fund and what are the risks f investing in a mutual fund? Certain f the funds may engage in shrt selling in rder t manage vlatility r enhance the Fund s perfrmance in declining r vlatile markets. Fr mre infrmatin abut shrt selling, see What is a mutual fund and what are the risks f investing in a mutual fund? All f the Funds can use derivatives. Yu find ut hw a Fund uses derivatives in the Investment strategies sectin f its Fund prfile. Fr mre infrmatin abut derivatives, see What is a mutual fund and what are the risks f investing in a mutual fund? Regulatry exemptins Derivatives The Funds may use derivatives, as indicated in each Fund s prfile. Derivatives, like ptins, futures cntracts, frward cntracts, and swaps, may be used t hedge against lsses caused by changes in security prices, interest rates, r exchange rates. The Funds may als use derivatives fr nn-hedging purpses, including as a substitute fr a stck, stck market, r ther security, r where their use is cnsidered efficient frm a prtfli management perspective. When a Fund uses a derivative fr hedging purpses, it must hld assets, including anther derivative, that carry a risk that the derivative aims t ffset. When a Fund uses a derivative fr nn-hedging purpses, it must generally hld cash r ther assets that are equal t the Fund s market expsure frm the derivative. Interest rate swaps and credit default swaps are examples f the types f swaps that the Funds may use. In an interest rate swap, a right t receive a payment based n a fixed interest rate is swapped fr a right t receive a payment based n a flating interest rate. In a credit default swap, a 49

52 Specific infrmatin abut each f the mutual funds described in this dcument (cntinued) premium is swapped fr a right t receive a payment if an issuer f fixed incme securities fails t make a required payment, r if an event ccurs that calls int questin the creditwrthiness f the issuer. Subject t certain cnditins, Fidelity Funds that use derivatives have been granted an exemptin by the securities regulatrs t permit these Funds t use additinal assets t cver a Fidelity Fund s market expsure: When pening r maintaining a lng psitin in a debtlike security that has a cmpnent that is a lng psitin in a frward cntract, r in a standardized future r frward cntract. When entering int r maintaining a swap psitin. See each Fund s mst recently filed management reprt f fund perfrmance fr infrmatin relating t any material use f derivatives by a Fund ver the applicable reprting perid. Als, summary infrmatin n a Fund s derivatives psitins, if any, may be btained n ur website at Fr mre infrmatin abut derivative risk, see What is a mutual fund and what are the risks f investing in a mutual fund? Three-tier funds Certain Fidelity Funds have received an exemptin t allw them t invest directly r indirectly in underlying funds managed by Fidelity and these underlying funds may, in turn, hld directly r indirectly mre than 10% f their net assets in securities f ther funds that we manage. Investments in securities issued by substantial security hlders The Fidelity Funds have received regulatry apprval t invest in debt securities issued by a substantial security hlder f a Fidelity Fund. Substantial security hlders are persns r cmpanies that hld vting securities f a Fund that represent mre than 20% f the vting rights f that Fidelity Fund. Certain cnditins must be met, including the apprval f the Independent Review Cmmittee r IRC f the Fidelity Funds. Cleared swaps The Fidelity Funds that use derivatives have received an exemptin frm the cunterparty credit rating requirement, the cunterparty expsure threshld, and the custdial requirements set ut in NI in rder t permit these Fidelity Funds t clear certain swaps, such as interest rate and credit default swaps, thrugh futures cmmissin merchants that are subject t U.S. r Eurpean clearing requirements. These Fidelity Funds can als depsit cash and ther assets as margin fr such swaps prvided that certain cnditins are satisfied. 4. What are the risks f investing in the fund? This sectin sets ut a risk checklist that tells yu all f the risks f the Fund. Fr a cmplete descriptin f each risk, see What is a mutual fund and what are the risks f investing in a mutual fund? 5. Wh shuld invest in this fund? When yu re deciding n a Fund, it s imprtant t find ne that has the same investment gals that yu d. This sectin tells yu the kind f investr the Fund may be apprpriate fr, and hw the Fund culd fit in yur prtfli. It s meant as a guide nly. Yur financial advisr can help yu make the decisins abut which Funds best match yur gals. Risk classificatin methdlgy The risk ratings referred t in this sectin help yu decide, alng with yur financial advisr, whether a Fund is right fr yu. This infrmatin is nly a guide. The investment risk level indicated fr each Fund is required t be determined in accrdance with the Canadian Securities Administratrs (CSA) standardized risk classificatin methdlgy, which is based n the histrical vlatility f the Fund as measured by the 10-year annualized standard deviatin f the returns f the Fund. Standard deviatin is used t quantify the histrical dispersin f returns arund the average returns ver a recent 10-year perid. In this cntext, it can prvide an indicatin f the amunt f variability f returns that ccurred relative t the average return ver the 10-year measurement perid. The higher the standard deviatin f a Fund, the greater the range f returns it experienced in 50

53 the past. In general, the greater the range f bserved r pssible returns, the higher the risk. Fr Funds that d nt have a 10-year return histry, Fidelity calculates the investment risk level f each Fund by using the actual return histry f the Fund, and imputing the return histry f ne r mre reference indices fr the remainder f the 10-year perid. In the case where a Fund invests substantially all f its assets in ne r mre underlying funds that have existed fr at least 10 years, Fidelity uses the returns f the underlying fund(s) t cmplete a 10-year return histry f the Fund fr the purpse f estimating its 10-year standard deviatin. In the case where a Fund fllws a substantially similar investment strategy f anther Fidelity Fund that has been in existence fr at least 10 years, Fidelity uses the returns f that Fidelity Fund t cmplete a 10-year return histry f the Fund fr the purpse f estimating its 10-year standard deviatin. Fidelity assigns a risk rating categry that is at, r higher than, the applicable rating indicated by the standard deviatin ranges in the CSA s standardized risk classificatin methdlgy, as utlined in the table belw. CSA standard deviatin ranges and risk ratings Standard deviatin range Risk rating 0 t less than 6 Lw 6 t less than 11 Lw t Medium 11 t less than 16 Medium 16 t less than 20 Medium t High 20 r greater High It is imprtant t nte that ther types f risk, bth measurable and nn-measurable, may exist. It is als imprtant t nte that a Fund s histrical vlatility may nt be indicative f its future vlatility. Fidelity may exercise its discretin and assign a Fund a higher risk classificatin than indicated by the 10-year annualized standard deviatin and the prescribed ranges if we believe that the Fund may be subject t ther freseeable risks that the 10-year annualized standard deviatin des nt reflect. Reference index fr each Fund Fr Funds that d nt have 10-years f histrical returns, the fllwing indices r cmbinatins f indices were used as prxies fr Fund returns fr perids between the inceptin f the Fund and ten years prir t the inceptin f the Fund. FUND REFERENCE INDEX OR FIDELITY FUND 75% Blmberg Barclays U.S. Aggregate Bnd Index (CAD) 15% BfA Merrill Lynch U.S. Fidelity High Yield Master II Index Investment (CAD) Grade Ttal 5% J.P. Mrgan EMBI Glbal Bnd Fund Diversified Index (CAD) 5% S&P/LSTA Leveraged Lan Index (CAD) 75% Blmberg Barclays U.S. Fidelity Investment Grade Ttal Bnd Currency Neutral Fund Benchmark Definitins Aggregate Bnd Index (USD) 15% BfA Merrill Lynch U.S. High Yield Master II Index (USD) 5% J.P. Mrgan EMBI Glbal Diversified Index (USD) 5% S&P/LSTA Leveraged Lan Index (USD) The Blmberg Barclays U.S. Aggregate Bnd Index is an unmanaged, market-value-weighted index f taxable investment-grade fixed-rate debt issues, including gvernment, crprate, asset-backed, and mrtgage backed securities, with maturities f ne year r mre. The BfA Merrill Lunch U.S. High Yield Master II Index tracks the perfrmance f US dllar denminated belw investment grade crprate debt publicly issued in the US dmestic market. Qualifying securities must have a belw investment grade rating (based n an average f Mdy s, S&P and Fitch), at least 18 mnths t final maturity at the time f issuance, at least ne year remaining term t final maturity as f the rebalancing date, a fixed cupn schedule and a minimum amunt utstanding f $250 millin. The JPM EMBI ( Emerging Markets Bnd Index ) is J.P. Mrgan s index f dllar-denminated svereign bnds issued by a selectin f emerging market cuntries and is the mst widely used and cmprehensive emerging market svereign debt benchmark. The J.P. Mrgan EMBI Glbal Diversified Index limits the weights f thse index cuntries with larger debt stcks by nly including a 51

54 Specific infrmatin abut each f the mutual funds described in this dcument (cntinued) specified prtin f thse cuntries eligible current face amunts f debt utstanding. The S&P/LSTA Leveraged Lan Index is a market capitalizatin-weighted index designed t represent the perfrmance f U.S. dllar-denminated institutinal leveraged lan prtflis using current market weightings, spreads and interest payments. Yu can get details f the methdlgy that we use t identify the risk level f a Fund by calling us at , by sending us an at cs.english@fidelity.cm (fr assistance in English) r sc.francais@fidelity.cm (fr assistance in French), r by writing t us at Fidelity Investments Canada ULC, 483 Bay Street, Suite 300, Trnt, Ontari, M5G 2N7. 6. Distributin plicy This sectin tells yu when yu can expect t receive payments f net incme, capital gains, r returns f capital frm the Fund. We may pay distributins at ther times. yu dn t pay these csts directly, they reduce the Fund s return. The hypthetical example in this sectin helps yu cmpare the expenses f the Fund t the csts f investing in ther Funds. Yu can find mre infrmatin abut the csts f investing in the Funds in the Fees and expenses sectin. The example shws the expenses yu wuld pay if: Yu invested $1,000 in the Fund fr each perid shwn and paid the maximum sales charge. The Fund s return was 5% each year. Yu didn t use the 10% free amunt described under the deferred sales charge ptin. The Fund paid the same management expense rati r MER in all perids as it did in its last financial year. We have nt shwn examples f these expenses because the Funds are new and have n histrical fund expense infrmatin t disclse. Distributins n units held in Fidelity registered plans are always reinvested in additinal units f the same series f the same Fund. Except as described belw, distributins n units held in ther registered plans r in nn-registered accunts are reinvested in additinal units f the same series f the same Fund unless yu tell us in writing that yu want t receive them in cash. Yu wn t pay any sales charges n reinvested distributins r n cash distributins. Distributins paid n the redemptin f units are nt reinvested, but are instead paid t yu in cash. Cash distributins can be paid directly t yur bank accunt by way f electrnic funds transfer r by cheque. We may charge yu a fee f $25 fr each cash distributin yu request by cheque. Yu can find mre infrmatin abut distributins and adjusted cst base in the Incme tax cnsideratins fr investrs sectin. 7. Fund expenses indirectly brne by investrs Each series f a Fund is respnsible fr its wn expenses and its prprtinate share f cmmn Fund expenses that are nt included as part f the Administratin Fee. While 52

55 U.S. FIXED INCOME FUNDS Fidelity Investment Grade Ttal Bnd Fund Fund details Fund type U.S. diversified incme fund Date started Series A, B, E1, E2, E3, E4, E5, F, O, P1, P2, P3, P4, P5 January 8, 2018 Type f securities Series A, B, E1, E2, E3, E4, E5, F, O, P1, P2, P3, P4 and P5 units f a mutual fund trust Eligibility fr registered plans Management and advisry fee and administratin fee Series Expected t be a qualified investment fr registered plans Management and advisry fee Administratin fee* A 1.45% 0.230% B 1.20% 0.180% E % 0.155% E % 0.155% E % 0.130% E % 0.130% E5 1.00% 0.130% F 0.70% 0.135% P % 0.110% P % 0.110% P % 0.085% P % 0.085% P5 0.50% 0.085% *This is the Administratin Fee if the Fund has less than $100 millin in net assets. If the Fund has between $100 millin and $1 billin in net assets, the Administratin Fee n each series is reduced by 0.01%. If the Fund has ver $1 billin in net assets, there is a further 0.01% reductin. What des the fund invest in? Investment bjectives The Fund aims t prvide a steady flw f incme and the ptential fr capital gains. It invests primarily in a mix f fixed incme securities f U.S. issuers and ther issuers frm arund the wrld, with an emphasis n investment grade fixed incme securities. It can invest in these securities either directly r indirectly thrugh investments in underlying funds. We can t change the Fund s investment bjectives unless we get apprval frm a majrity f unithlders wh vte at a special meeting we call. Investment strategies T meet the Fund s bjectives, the prtfli management team: Exercises brad flexibility by investing, either directly r indirectly thrugh investments in underlying funds, in an expansive set f glbal investment grade fixed incme securities. Expects that fixed incme securities f U.S. issuers will cmprise a substantial prtin f the Fund s assets, but may invest in ther issuers frm arund the wrld. Tactically allcates the Fund s assets amng issuers in different market sectrs, industries, asset classes, and maturities, based n its view f the relative value f each sectr, industry, asset class, r maturity. May invest up t 25% f the Fund s net assets in nninvestment grade fixed incme securities. Cmbines tp-dwn perspectives and bttm-up security selectin. Perfrms a macrecnmic assessment in rder t frmulate tp-dwn views that are used t tactically adjust the cmpsitin f the prtfli ver time, such as asset class selectin, sectr rtatin, and industry selectin. Cnsiders factrs that shape the fixed incme markets, such as gvernment and central banking plicies, fiscal dynamics, demgraphic factrs, trade plicy, currency management, default cycle, inflatin, and business cycle dynamics. Uses tp-dwn perspectives t help shape the sectr allcatin, quality, yield curve psitining, and duratin f the prtfli. Cnsiders the duratin f the Fund, and has flexibility t vary the duratin in respnse t prevailing market cnditins. When buying and selling investment grade fixed incme securities, may cnsider ther factrs, such as: The security s features. Price cmpared t estimated lng-term value. 53

56 Fidelity Investment Grade Ttal Bnd Fund (cntinued) Credit quality f the issuer. Current yield. Balance sheet strength. Financial leverage. Any shrt-term trading pprtunities resulting frm market inefficiencies. When buying and selling high yield securities, examines each issuer s ptential based n factrs, such as: Financial cnditin. Industry psitin. Ecnmic and market cnditins. Earnings ptential. Quality f management. The security s features. Price cmpared t estimated lng-term value. Credit quality f the issuer. Current yield. Balance sheet strength. Financial leverage. Liquidity. Expected ability t service debt. The Fund may als: Invest in securities that dn t prduce incme, including defaulted securities and cmmn stck. Invest in cmpanies in a trubled r uncertain financial cnditin. Invest in fixed incme securities f any quality r term. Hld cash. In accrdance with the limits, restrictins and requirements under applicable law, r as permitted under the terms f exemptive relief btained frm the Canadian securities regulatrs and described in Specific infrmatin abut each f the mutual funds described in this dcument, the Fund and any underlying Fidelity Fund may: Engage in securities lending, repurchase and reverse repurchase transactins. Use derivatives fr hedging and nn-hedging purpses. Invest in securities f underlying funds that are selected in accrdance with the Fund s investment strategies. The Fund may depart frm its investment bjectives r strategies by temprarily investing all r a prtin f its assets in cash r fixed incme securities issued r guaranteed by a Canadian r U.S. gvernment, gvernment agency r cmpany. The prtfli management team may take this actin t try t prtect the Fund during a market dwnturn, r fr ther reasns. The prtfli management team may actively trade the Fund s investments. This can increase trading csts, which lwers the Fund s returns. It als increases the pssibility that yu receive capital gains distributins, which are taxable if yu hld the Fund in a nn-registered accunt. What are the risks f investing in the fund? The checklist belw shws yu the risks that apply t the Fund. The risks withut a bullet in either clumn are nt a risk fr the Fund. Yu ll find a cmplete descriptin f each risk in What is a mutual fund and what are the risks f investing in a mutual fund. Risk Checklist Main risk Additinal risk Asset-backed securities and mrtgage-backed securities Cmmdity Cncentratin Credit Currency Cyber security Derivative Equity ETF Freign investment Interest rate Large transactin Liquidity Prtfli management 54

57 Repurchase transactins Reverse repurchase transactins Securities lending Series Shrt selling Small cmpany Specializatin Main risk Wh shuld invest in this fund? Additinal risk Yu might want t cnsider the Fund if yu plan t hld yur investment fr the medium- t lng-term, want t gain expsure t fixed incme securities f U.S. issuers and ther issuers frm arund the wrld, with an emphasis n investment grade fixed incme securities, and are seeking incme frm yur investment. T invest in the Fund, yu shuld be able t accept a lw t medium level f risk. Fr mre infrmatin n hw a fund s risk level is determined, see Specific infrmatin abut each f the mutual funds described in this dcument. Distributin plicy The Fund generally distributes any net incme at the end f each mnth. Any capital gains fr the year are distributed in December f each year. The Fund may als pay distributins at ther times during the year. Distributins n units held in Fidelity registered plans are always reinvested in additinal units f the Fund. Distributins n units held in ther registered plans r in nn-registered accunts are reinvested in additinal units f the Fund unless yu tell us in writing that yu want t receive them in cash. Fr ther ptins that may be available t yu, see Specific infrmatin abut each f the mutual funds described in this dcument. Fund expenses indirectly brne by investrs This infrmatin has nt been prvided because the Fund is new, and has n histrical fund expense infrmatin. 55

58 U.S. FIXED INCOME FUNDS Fidelity Investment Grade Ttal Bnd Currency Neutral Fund Fund details Fund type U.S. diversified incme fund Date started Series A, B, E1, E2, E3, E4, E5, F, O, P1, P2, P3, P4, P5 January 8, 2018 Type f securities Series A, B, E1, E2, E3, E4, E5, F, O, P1, P2, P3, P4 and P5 units f a mutual fund trust Eligibility fr registered plans Management and advisry fee and administratin fee Series Expected t be a qualified investment fr registered plans Management and advisry fee Administratin fee* A 1.45% 0.260% B 1.20% 0.210% E % 0.185% E % 0.185% E % 0.160% E % 0.160% E5 1.00% 0.160% F 0.70% 0.165% P % 0.140% P % 0.140% P % 0.115% P % 0.115% P5 0.50% 0.115% *This is the Administratin Fee if the Fund has less than $100 millin in net assets. If the Fund has between $100 millin and $1 billin in net assets, the Administratin Fee n each series is reduced by 0.01%. If the Fund has ver $1 billin in net assets, there is a further 0.01% reductin. What des the fund invest in? Investment bjectives The Fund aims t prvide a steady flw f incme and the ptential fr capital gains. It seeks a similar return t its underlying fund, which is als managed by Fidelity, by investing substantially all f its assets in units f that fund. The underlying fund invests primarily in a mix f fixed incme securities f U.S. issuers and ther issuers frm arund the wrld, with an emphasis n investment grade fixed incme securities. The underlying fund can invest in these securities either directly r indirectly thrugh investments in ther underlying funds. Currently, the underlying fund is Fidelity Investment Grade Ttal Bnd Fund. The Fund uses derivatives t try t minimize the expsure t currency fluctuatins between develped market freign currencies and the Canadian dllar. The Fund may als hedge against ther freign currencies. We can t change the Fund s investment bjectives unless we get apprval frm a majrity f unithlders wh vte at a special meeting we call. Investment strategies The strategies described belw relate t the Fund and the underlying fund, Fidelity Investment Grade Ttal Bnd Fund. T meet the Fund s bjectives, the prtfli management team f the underlying fund: Exercises brad flexibility by investing, either directly r indirectly thrugh investments in third-tier funds, and in an expansive set f investment grade fixed incme securities. Expects that fixed incme securities f U.S. issuers will cmprise a substantial prtin f the underlying fund s assets, but may invest in ther issuers frm arund the wrld. Tactically allcates the underlying fund s assets amng issuers in different market sectrs, industries, asset classes, and maturities, based n its view f the relative value f each sectr, industry, asset class, r maturity. May invest up t 25% f the underlying fund s net assets in nn-investment grade fixed incme securities. Cmbines tp-dwn perspectives and bttm-up security selectin. Perfrms a macrecnmic assessment in rder t frmulate tp-dwn views that are used t tactically adjust the cmpsitin f the prtfli ver time, such as asset class selectin, sectr rtatin, and industry selectin. Cnsiders factrs that shape the fixed incme markets, such as gvernment and central banking plicies, fiscal dynamics, demgraphic factrs, trade plicy, currency management, default cycle, inflatin, and business 56