1 Q&A Regarding Fidelity Extending Participation for Certain Money Market Funds in U.S. Treasury Temporary Guarantee Program April 13, 2009 Q. What is Fidelity s decision regarding continued participation in the U.S. Treasury Temporary Guarantee Program for Money Market Funds? A. Fidelity Investments and the Board of Trustees of Fidelity s money market funds have determined that Fidelity s general purpose taxable and taxexempt money market funds will continue to participate in the U.S. Treasury Department Temporary Guarantee Program for Money Market Funds for the duration of the program, which ends on September 18, 2009. Fidelity s money market funds that invest primarily in U.S. Government and Treasury securities will not participate in the program beyond April 30, 2009. Q. Which Fidelity money market funds will continue participating in the program through September 18, 2009? A. Fidelity s general purpose taxable and tax exempt money market funds will continue to participate in the program. These funds include: General Purpose Money Market Funds CMF Prime Fund Fidelity Cash Reserves Fidelity Institutional Money Market: Money Market Portfolio Fidelity Institutional Money Market: Prime Money Market Portfolio Fidelity Money Market Fund Fidelity Money Market Trust: Retirement Money Market Portfolio Select Money Market Portfolio VIP Money Market National Municipal Money Market Funds Fidelity AMT Tax Free Money Fund Fidelity Institutional Money Market: Tax Exempt Fidelity Municipal Money Market Fund
2 Fidelity Tax Free Money Market State Municipal Money Market Funds Fidelity Arizona Municipal Money Market Fund Fidelity California AMT Tax Free Money Market Fund Fidelity California Municipal Money Market Fund Fidelity Connecticut Municipal Money Market Fund Fidelity Massachusetts AMT Tax Free Money Market Fund Fidelity Massachusetts Municipal Money Market Fund Fidelity Michigan Municipal Money Market Fund Fidelity New Jersey AMT Tax Free Money Market Fund Fidelity New Jersey Municipal Money Market Fund Fidelity New York AMT Tax Free Money Market Fund Fidelity New York Municipal Money Market Fund Fidelity Ohio Municipal Money Market Fund Fidelity Pennsylvania Municipal Money Market Fund Q. Which Fidelity money market funds will no longer participate in the program after April 20, 2009? A. Fidelity s money market funds that invest primarily in U.S. Government and Treasury securities will not participate in the program beyond April 30, 2009. These funds include: Treasury Only Money Market Funds FIMM: Treasury Only U.S. Treasury Money Market Fund Treasury Money Market Funds CMF: Treasury FIMM: Treasury U.S. Government Money Market Funds Fidelity U.S. Government Reserves FIMM: Government Fidelity Government Money Market Fund FMMT: Retirement Government Money Market Portfolio Q. Why has Fidelity decided to discontinue participation in the program for certain Government and Treasury money market funds?
3 A. These money market funds invest in Government and Treasury securities, which are the highest quality securities available in the marketplace. Overall market conditions for money market investing, and for these funds in particular, have improved significantly since the Treasury program began last fall. Q. What details can you give me about the U.S. Treasury Temporary Guarantee Program for money market mutual funds? A. Under the program, the U.S. Treasury will guarantee the share price of any publicly offered eligible money market mutual fund that applies for and pays a fee to participate in the program. The coverage applies only to investments held in participating money market funds as of the close of business on September 19, 2008. Below are some additional details of the Treasury Department program: Under the program, coverage is provided to shareholders for amounts that they held in participating money market funds as of the close of business on September 19, 2008. A shareholder s holdings in a participating money market fund as of September 19, 2008, represent the maximum amount of assets eligible for reimbursement under the program. Any increase in the number of shares held in an account after the close of business on September 19, 2008, will not be guaranteed. If the number of shares held in the account fluctuates over the period, investors will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. If a shareholder closes his or her account, any future investment in the fund will not be guaranteed. The guarantee will be triggered only if a participating fund liquidates its assets as a result of its net asset value falling below $0.9950, commonly referred to as breaking the buck. The Treasury Department states that, in the event that a participating fund breaks the buck and liquidates, a guarantee payment should be made to investors through their fund within approximately 30 days, subject to possible extensions at the discretion of the Treasury.
4 Fees paid to the Treasury Department to participate in the program will depend upon each fund s net asset value (NAV) per share as of September 19, 2008. While the program protects the accounts of investors, each money market fund makes the decision to sign up for the program. Investors cannot sign up for the program individually. Eligible funds include both taxable and tax exempt money market funds. The Treasury and Internal Revenue Service issued guidance that confirmed that participation in the temporary guarantee program will not be treated as a federal guarantee that jeopardizes the tax exempt treatment of payments by tax exempt money market funds. For more information on the program, investors may access news release and FAQ documents recently issued by the Treasury Department and available on the Treasury Department s web site at www.ustreas.gov. Q. How do I know if my money market assets are included in the program? A. The U.S. Treasury Department program provides a guarantee based on the number of shares held at the close of business on September 19, 2008. Any increase in the number of shares held in an account after the close of business on September 19, 2008, will not be guaranteed. If the number of shares held in an account fluctuates over the period of the plan, investors will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. There are further examples provided on the FAQ document on the Treasury Department s web site. Q. What if I now hold more shares in my money market fund that is participating in the program than I held on September 19, 2008? What if I hold fewer shares than I did then? A. The program provides a guarantee based on the number of shares held at the close of business on September 19, 2008. In accordance with the requirements of the U.S. Treasury Department program, any increase in the number of shares held in an account after the close of business on September 19, 2008, will not be guaranteed. If the number of shares held in an account fluctuates over the period, investors will be covered for
5 either the number of shares held at the close of business on September 19, 2008, or the current amount, whichever is less. Q. What if I made a money market purchase on September 19, but the trade did not settle until after that date. Are my assets covered by the plan? A. Yes, as long as an individual was a shareholder of record in the fund as of September 19, the shares are covered. The actual settlement date of the purchase is not relevant. Q. How much does the program extension cost? A. The cost for a fund to participate in the extension of the program depends on the fund s net asset value per share as of the close of business on September 19, 2008. To participate in the program, the U.S. Treasury Department requires money market funds with a NAV per share greater than or equal to $0.9975 as of the close of business on September 19, 2008, to pay an upfront fee of 0.015 percent, or 1.5 basis points, based on the number of shares outstanding as of that date. Q. How much are Fidelity s funds that are participating in the program extension paying to do so? A. All of Fidelity s institutional and retail money market funds are paying 0.015 percent, or 1.5 basis points, to participate in the program. Q. Who is paying the fees? A. Fees paid to participate in the program will be borne by the funds and their shareholders. # # # Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
6 Before investing, consider the funds investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus containing this information. Read it carefully. Fidelity Investments Institutional Services Company, Inc., 82 Devonshire Street, Boston, MA 02109 521473.1/FDC